India's entertainment industry lost ₹22,400cr to piracy last year: Report
India's entertainment industry lost a whopping ₹22,400 crore to piracy in 2023, according to a report by EY and the Internet and Mobile Association of India (IAMAI). The study found that more than half of the country's media consumers turn to pirated content. Streaming services are the biggest source of such unauthorized content, accounting for a staggering 63% of this illegal practice.
Piracy economy's breakdown and GST losses
The report further breaks down the piracy economy, stating that ₹13,700 crore was generated from pirated content from movie theaters, while ₹8,700 crore came from OTT platforms' content. This illegal activity also led to potential GST losses of up to ₹4,300 crore. The findings underscore the significant financial impact of piracy on India's entertainment industry, and its contribution to tax revenue loss.
Call for collective action against piracy
Rohit Jain, Chairperson of IAMAI's Digital Entertainment Committee, has emphasized the need to come together against piracy. He noted that India's digital entertainment sector is expected to touch ₹14,600 crore by 2026, but this opportunity is heavily jeopardized by rampant piracy. Jain requested government bodies, industry players, and consumers to join hands in fighting this menace.
High subscription fees drive consumers to piracy
The report also explores why consumers prefer pirated content. High subscription fees, unavailability of the desired content, and the hassle of managing multiple subscriptions are listed as key reasons. Piracy is particularly rampant among the younger audience (19-34 years), with women preferring OTT shows and men classic films.
Willingness to switch and the need for revised strategies
Interestingly, 64% of those accessing pirated content were willing to switch to authorized channels if offered for free, even with ad interruptions. This finding shows a need for content providers to rethink their pricing models and accessibility strategies. Also, around 70% of pirated content consumers claimed that they didn't want to purchase any OTT subscriptions.
Existing anti-piracy measures deemed insufficient
Mukul Shrivastava, the Partner and Forensic M&E Leader at EY Forensic and Integrity Services, slammed current measures against piracy as insufficient. He called for stricter regulations and industry-wide collaboration to truly combat piracy risks. "Leveraging technology to combat the creation and distribution of pirated content will also be critical," Shrivastava said, stressing the importance of innovative solutions in this war.
Piracy more prevalent in Tier 2 cities
The report also highlighted a geographic disparity in piracy, with the practice being more rampant in Tier 2 cities than Tier 1 cities. Limited means of watching authorized content, simple access to pirated content, lack of awareness about the dangers of piracy, income disparity and inaccessible theaters were cited as reasons for this contrast.
