Piracy drains Rs 224 bn from entertainment industry in 2023: EY report

India's entertainment industry is facing a growing piracy threat. According to "The Rob Report" by EY and the Internet and Mobile Association of India (IAMAI), piracy drained a staggering Rs 224 billion from the industry in 2023, severely impacting the sector's revenue.

Pirated movie content in theatres accounted for Rs 137 billion, while OTT platforms suffered Rs 87 billion. Piracy ranks as the fourth-largest revenue loss segment in India's Media and Entertainment industry, posing a significant challenge for content creators and distributors.

Streaming services have become the largest source of pirated content, accounting for 63% of the total, while mobile apps (16%) and platforms like social media and torrents (21%) also contribute to the problem. The rise of digital platforms has made pirated content more accessible, further exacerbating the issue.

High subscription fees, unavailability of desired content, and the complexity of managing multiple streaming services are key reasons for the surge in piracy. Despite a 150% increase in subscription revenue since the COVID-19 pandemic, 51% of media consumers still access pirated content. Moreover, 62% of consumers believe stricter enforcement of anti-piracy laws is necessary.

Industry leaders, including Rohit Jain, Chairman of the Digital Entertainment Committee at IAMAI, emphasize the need for collective action from both the private sector and government to combat piracy. Jain highlighted the potential threat to the filmed entertainment industry, which is expected to reach Rs 146 billion by 2026, and urged for stronger regulations and enforcement.

64% of pirated content consumers would switch to authorized channels if they were free but included ads. This underscores the Indian preference for free content, with 84% unwilling to buy movie tickets and 70% uninterested in OTT subscriptions.

Piracy is more prevalent in Tier II cities, where limited access to authorized content, income disparity, and a lack of theatres make pirated content more attractive. The 19-to-34-year age group dominates piracy consumption, with 76% of viewers falling in this demographic.

Mukul Shrivastava, Partner and Forensic M&E Leader at EY, stressed the need for stronger industry collaboration, regulatory enforcement, and technological innovation to combat piracy. Piracy also has economic consequences, with potential GST losses of up to Rs 43 billion. The industry is calling for large-scale awareness campaigns, innovative pricing models, and content bundling to address the issue and safeguard the future of India’s Media and Entertainment sector.