BENGALURU: The Indian entertainment industry has faced a profound challenge, as highlighted by the staggering loss of Rs22,400 crore due to piracy in 2023, as reported in “The Rob Report” by Ernst & Young (EY) and the Internet and Mobile Association of India (IAMAI).
The alarming statistic underscores the urgent need for enhanced regulations and coordinated efforts among stakeholders in order to combat the rampant issue of piracy.
Piracy, defined as the unauthorised reproduction and distribution of copyrighted materials, constitutes a significant form of intellectual property theft, adversely affecting the original creators and the broader economy.
Presently, it has been reported that 51 per cent of media consumers in India resort to pirated content, with streaming services representing a notable 63 per cent of this activity. The financial ramifications are multifaceted: not only does piracy erode revenues, but it also results in potential Goods and Services Tax (GST) losses estimated at approximately Rs4,300 crore, demanding a closer examination of the factors driving this phenomenon.
The report delineates various reasons that compel consumers to engage in piracy, including the high costs of subscriptions, limited access to desired content, and the inconvenience associated with managing multiple streaming platforms.
These issues are particularly pronounced among younger audiences aged 19 to 34, with a notable preference among women for over-the-top (OTT) content and men for classic films.
Robust regulations
Intriguingly, 64 per cent of individuals accessing pirated materials indicated a willingness to transition to legitimate channels if offered free access, despite interruptions from advertisements. This highlights the necessity for content providers to re-evaluate their pricing models and to enhance accessibility to deter piracy.
Mukul Shrivastava, a partner at EY’s Forensic and Integrity Services, emphasises the inadequacy of existing piracy deterrents, advocating for robust regulations and collaborative industry efforts. Leveraging technology to curb the creation and distribution of pirated content is paramount.
By enabling original creators to protect their intellectual property, the industry can foster an environment where creativity thrives and financial losses are mitigated.
Moreover, the disparity in piracy prevalence between Tier II and Tier I cities reveals a complex landscape. Factors such as limited access to legitimate viewing options and a lack of awareness regarding the implications of piracy compound the issue.
In Tier II cities, the ease of access to pirated content often outweighs the motivation to pay for authorised films, reflecting a broader trend of unwillingness to invest in entertainment experiences.
