Streaming Piracy to Total $52 Billion in Losses by 2022

Worldwide revenue lost to online TV and movie piracy grew from $6.7 billion in 2010 to $31.8 billion this year, and will increase to $51.6 billion in 2022, forecasts London-based Digital TV Research. Those figures don’t include online sports piracy.

Revenues from legitimate streaming sources overtook piracy losses in 2013, and since then the gap has been widening. Legitimate revenue totaled $6.1 billion in 2010, grew to $46.5 billion this year, and should hit $83.4 billion in 2022.

While the amount lost to piracy is increasing, Digital TV Research sees its growth rate declining thanks to government enforcement efforts and consumers getting easy and affordable legal streaming options.

While North America is currently the largest region for online piracy, Asia Pacific will take the lead in 2018. By 2022, that region’s piracy losses will double to almost $20 billion. The top five countries for piracy loss are the U.S., China, Brazil, the U.K., and South Korea. The U.S. will stay in the top spot in 2022, Digital TV Research forecasts, while India—currently in the eighth spot with $700 million in losses—will climb to number 3 in 2022 with $3.1 billion in losses. China’s efforts to reduce piracy will help legitimate revenues overtake losses by 2022.

This data comes from Digital TV Research’s October 2017 piracy report, which sells for £1200.00.

Piracy has become big business

Piracy has become big business, according to Rory O’Connor, VP services Irdeto.

Big packages comprising as many as 174 channels retail for $16.400 per month or $194 a year. And there is an amazing growth in piracy: more than 20 new sites a month, which represents a 40% site increase per year.

Research carried out on behalf of Irdeto also shows that with 25.2% baseball is globally the post pirated watched sport, followed by football with 23.3%, 13% mixed sports and 120.5% tennis. Piracy of Formula 1 racing is on the rise.

The global research by Irdeto also shows big difference of perception between various nations. While 9 out of 10 Brits condemn piracy, the reverse is true for Russians. However, one in five people in Great Britain use a Kodi box to watch pirated content.

O’Connor noted that succes against pirates can be achieved when working together with law enforcement en the courts “We reached a milestone yesterday, when a judge ordered ISPs such as BT, who now have to block Kodi device streams during football matches.”

The challenges for the right holders are enormous, as “you can’t fight with free, but you can make it easier,” according to O’Connor, citing the bundled offers that Dutch operator Ziggo is selling.

Piracy could cost content owners $2.3TN

The global economic value of counterfeiting and video piracy could reach $2.3 trillion (€2.15tn) by 2022, new research has shown. The report from Frontier Economics – dubbed Economic Impacts of Counterfeiting and Piracy – also provides estimates on the wider social and economic impact on displaced economic activity, investment, public fiscal losses and criminal enforcement, and concludes that these costs could reach an additional estimated $1.9 trillion by 2022.

Taken together, the negative impacts of counterfeiting and piracy are projected to drain $4.2 trillion from the global economy and put 5.4 million legitimate jobs at risk by 2022.

The underpinnings of the pirate economy are myriad. Typically, consumer pay-TV choice comes down to content, value and convenience when selecting a service. Pirates exploit those three needs by offering services and devices that rival their legal counterparts, but, without the costs of legally acquiring the rights and content, pirates are able to take valuable market share in the process with lower prices.

So perhaps it’s no wonder that content security specialist Irdeto recently found that there are more than 2.7 million advertisements on e-commerce websites, including Amazon, eBay and Alibaba for illicit streaming devices, indicating that content theft by pirates has become a fully-fledged business and a formidable competitor to established pay-TV operators.

According to Irdeto, it’s a true cross-channel effort, with advertisements found on social networks, including Facebook, Twitter and other prominent social media platforms. Pirates are becoming more business savvy and expanding their product marketing of illicit streaming devices. Citing data from SimilarWeb, the Irdeto report shows that the growth in global traffic resulted in more than 16.5 million visits per month to the top 100 pirate IPTV supplier websites. The US and UK led all countries with more than 3.7 million and one million site visits per month, respectively.

The report also shows that a typical pirate supplier offers an average of 174 channels, with some pirate suppliers offering more than 1,000 channels. This content comes in at an average subscription cost of $194.40 per year or a staggeringly low $16.20 per month – much lower than the average US cable cost of $103.10 per month. In some cases, despite the illegal nature of the offering, these low costs and the compelling content provided sway consumers to choose a pirate device over legal cable, satellite or OTT services.

The good guys are cracking down: Europol in late November, for instance, went after a host of online piracy and counterfeit sites, taking more than 4,500 domain names offline. Law enforcement authorities from 27 countries, anti-counterfeiting associations and brand owner representatives participated in this huge action, which was co-ordinated and facilitated by Europol’s Intellectual Property Crime Coordinated Coalition (IPC³), the US National Intellectual Property Rights Coordination Center and Interpol.

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