The Indian Entertainment Industry Piracy Loss 2023 has been estimated at a staggering ₹22,400 crore, as reported in “The Rob Report” by EY and the Internet and Mobile Association of India (IAMAI). This alarming figure reveals the scale of piracy affecting India’s media and entertainment sectors, with more than half of media consumers, approximately 51%, accessing pirated content in 2023. Streaming services took the hardest hit, accounting for 63% of pirated viewership. These findings underscore the urgent need for anti-piracy initiatives, stronger regulations, and robust technology-driven solutions to curb the growing issue.
EY-IAMAI Report
Significant Financial Impact
The report ranks India’s piracy economy as the fourth largest in the global entertainment sector by segment-wise revenue losses. In 2023, movie theatres suffered a massive ₹13,700 crore loss, while OTT platforms accounted for ₹8,700 crore. This financial drain highlights the pressing need for strategic solutions to protect the industry’s revenue streams.
GST Losses
Beyond the entertainment sector, piracy also impacts the economy at large, resulting in potential GST losses estimated at ₹4,300 crore. These lost tax revenues further underscore piracy’s extensive effect on India’s financial ecosystem.
Why Piracy Persists
Piracy in India is often driven by high subscription fees, limited access to the desired content, and the need to juggle multiple streaming subscriptions. This issue is particularly prevalent among younger audiences aged 19 to 34. Key reasons cited include:
Affordability: Subscription costs for multiple platforms can add up, prompting users to seek free, unauthorized sources.
Content Access: Many consumers struggle to find the content they want on authorized platforms, pushing them toward pirated alternatives.
The report notes that 64% of consumers who accessed pirated content would consider switching to legal sources if ad-supported free content became available. This indicates an opportunity for OTT services to adopt ad-supported models that could attract price-sensitive audiences.
Content Consumption Trends and Preferences
In terms of audience preferences, the report notes:
Male vs. Female Content Preferences: Men predominantly prefer classic films, while women are more inclined toward OTT series.
Regional Disparities: Tier II cities have higher piracy rates than Tier I cities. Income gaps, limited access to authorized content, and lower awareness about piracy consequences contribute to this trend.
Tier I consumers generally seek older films through illegal means, while Tier II audiences lean towards new releases. This trend highlights the need for region-specific solutions to tackle piracy.
Industry’s Call to Action
Rohit Jain, Chairman of IAMAI’s Digital Entertainment Committee, emphasized the urgent need to address piracy to protect the industry’s growth potential. He called for collaboration among stakeholders, including government agencies, content creators, and consumers, to combat this pervasive issue. Mukul Shrivastava, Partner and Forensic M&E Leader at EY, echoed Jain’s concerns, advocating for stronger regulations and enhanced use of technology to detect and prevent piracy.
Technological Solutions and Regulatory Measures
Shrivastava pointed out that technology plays a vital role in addressing piracy. Digital watermarking, AI-driven content tracking, and machine learning models could help identify and prevent pirated content from spreading. The report calls for a comprehensive strategy that includes:
Stricter laws: Enforcing stringent anti-piracy laws to deter unauthorized content sharing.
Consumer Education: Raising awareness about the consequences of piracy and promoting legal content consumption.
Technology-Driven Solutions: Leveraging AI and machine learning to monitor, detect, and eliminate pirated content.
Conclusion: Addressing Piracy in the Indian Entertainment Industry
The Indian Entertainment Industry Piracy Loss 2023 report reveals an urgent need for industry-wide action. With piracy threatening the revenue and growth potential of digital entertainment in India, stakeholders must take decisive steps to safeguard intellectual property. From implementing stricter regulations to developing consumer-friendly pricing models, India’s media industry stands at a crucial juncture. Effective collaboration and innovative technology solutions will be key to reducing piracy rates, fostering growth, and supporting the legal consumption of content.
By prioritizing a multi-pronged approach, India can curb piracy’s damaging impact, ensuring the industry’s growth and protecting creators’ rights.
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“Indian Entertainment Industry Piracy Loss 2023 – Financial Impact on OTT and Movie Theatres”
Indian Entertainment Industry Suffers ₹22,400 Crore Loss Due to Piracy in 2023: EY-IAMAI Report
The Indian entertainment industry faced a massive ₹22,400 crore loss in 2023 due to widespread piracy, as outlined in “The Rob Report” by EY and the Internet and Mobile Association of India (IAMAI). According to the report, 51% of media consumers in the country accessed pirated content, with streaming services accounting for the highest share at 63%. The findings underline the urgent need for anti-piracy initiatives and regulatory measures to curb the growing problem.
Key Highlights:
- Significant Financial Impact: The report ranked India’s piracy economy as the fourth largest when compared to the segment-wise revenue of the media and entertainment industry. Losses were most pronounced in movie theatres, which contributed ₹13,700 crore, while OTT platforms accounted for ₹8,700 crore in damages.
- GST Losses: The piracy problem also translated into potential GST losses of up to ₹4,300 crore, affecting the overall economy.
- Reasons for Piracy: High subscription fees, limited access to desired content, and the challenge of managing multiple streaming subscriptions were the top reasons consumers resorted to pirated sources. This trend was more common among younger audiences aged 19 to 34.
- Audience Behavior: The report found a stark contrast in content preferences, with men favoring classic films and women inclined towards OTT shows. Interestingly, 64% of those who accessed pirated content expressed a willingness to switch to legal platforms if free content with ads was made available, indicating the need for content providers to reconsider their pricing and distribution strategies.
Piracy More Prevalent in Tier II Cities
The study revealed that piracy was more widespread in Tier II cities compared to Tier I cities. Factors contributing to this disparity include income differences, a lack of authorized content access, and lower awareness about the consequences of piracy. Tier I city users mostly sought older films through illegal sources, whereas Tier II consumers gravitated towards newly released films.
Industry’s Call to Action
Rohit Jain, Chairman of IAMAI’s Digital Entertainment Committee, emphasized that the rapid growth of digital entertainment in India is at risk due to rampant piracy. He called for collaborative efforts among stakeholders—including government bodies, industry players, and consumers—to curb the threat. Mukul Shrivastava, Partner and Forensic M&E Leader at EY, echoed this sentiment, advocating for stronger regulations and the use of technology to combat piracy effectively.
Technological Solutions and Regulatory Measures
Shrivastava highlighted that leveraging technology is crucial to detecting and preventing the distribution of pirated content. This approach would help protect intellectual property and ensure creators can monetize their work. The report calls for a multi-pronged strategy that includes stricter laws, consumer education, and technological innovation to reduce piracy rates.
Conclusion
The alarming figures from the EY-IAMAI report underscore the need for immediate action against piracy in India. With potential growth in the digital entertainment space threatened, stakeholders must unite to protect intellectual property and support the legal consumption of content.