The report indicates that the piracy economy emerged as the fourth largest in the media and entertainment sector.
The Indian entertainment industry has suffered a huge loss of Rs 22,400 crore in 2023. The loss is due to piracy concerns, according to a report released on October 23.
According to “The Rob Report” by EY and the Internet and Mobile Association of India (IAMAI), 51 percent of media consumers in India access content from pirated sources, with streaming services being the most significant contributor at 63 percent.”
51% Consumers Consume Pirated Content
As per the report, 51% of consumers consume content on pirated platforms. The effect of piracy on the OTT platforms led to a loss of around 8,700 crores while theatres faced a loss of around Rs 13,700 crores.
The Piracy Economy Became Fourth Largest in the Media and Entertainment Sector
The report indicates that the piracy economy emerged as the fourth largest in the media and entertainment sector, generating approximately Rs. 22,400 crores.
The report mentioned the need for more stringent regulations and collaborative efforts to effectively reduce the piracy risks.
Digital Entertainment to Reach Rs 14,600 Crore By 2026: Rohit Jain
Rohit Jain, Chairman of IAMAI’s Digital Entertainment Committee, said: “The rapid growth of digital entertainment in India is undeniable, with filmed entertainment expected to reach Rs 14,600 crore by 2026.
Adding to it, Rohit Jain said, “However, this potential is severely threatened by rampant piracy. All stakeholders must unite in combating this issue.”
The report states that around 63% out of the people surveyed stated that they would watch authorised channels if interrupted by ads, provided it was available free of charge.
A representative of a leading entertainment OTT platform states “The absence of maturity and control over piracy makes it hard for the industry to sustain.”
It also mentioned, “One of the key components of an effective enforcement program is consequences. Something can be illegal but if there are no (immediate/ real) consequences imposed by law, via civil litigations and penalties, then it is hard to expect compliance.”
Piracy is most common in the age group 19-34, with women more inclined towards OTT shows, and men watching older films. 41% of pirated content is in Hindi, followed by 31% in English.
Piracy is more common in Tier II cities as there's less access to licensed content and people there are less aware of the effects of piracy.