The Rob Report, released by EY and the Internet and Mobile Association of India (IAMAI), reveals that India’s piracy economy reached INR 224 billion in 2023. This figure places piracy as the fourth-largest segment in terms of revenue generated within India’s Media and Entertainment industry.
According to a recent survey, 62% of those who consume pirated content believe that stronger enforcement is the key to addressing the issue as piracy has long plagued the Indian entertainment industry.
Notably, out of India’s INR 224 billion piracy economy, INR 137 billion stemmed from illegal movie theatre content and INR 87 billion from pirated OTT platform content according to the report. Additionally, the government is estimated to have lost up to INR 43 billion in potential GST revenue due to piracy.
A recent report indicates that 51% of media consumers in India still turn to pirated sources for content despite experiencing a 150% increase in subscription revenue since the pandemic. Streaming services have become the primary avenue for piracy, accounting for 63% of illegal content access, while mobile apps contribute 16%. Additionally, other platforms, including social media and torrents, are responsible for the remaining 21% of pirated content consumption.
Rohit Jain, Chairman of the Digital Entertainment Committee at IAMAI, said, “The rapid growth of digital entertainment in India is undeniable, with filmed entertainment expected to reach INR 146 billion by 2026. However, this potential is severely threatened by rampant piracy. It is imperative for all stakeholders, government bodies, industry players, and consumers to unite in combating this issue. Only through collective action can we ensure a thriving future for our creative industries.”
According to the Indian viewers managing multiple subscriptions, the unavailability of desired content, and high subscription fees are the top three reasons for turning to pirated content. However, 64% of those who consume pirated media acknowledged they would prefer authorized channels even with ad interruptions if offered at no cost.
Additionally, 84% of these consumers expressed reluctance to purchase movie tickets, highlighting a prevalent desire for high-quality free content. Furthermore, 70% of pirated content consumers indicated they have no interest in subscribing to OTT services.
The EY-IAMAI reports that people aged between 19 and 34 years contribute to 76% of pirated content. Within this demographic, women tend to favor OTT shows, while men gravitate towards older pirated films and classic titles. The report also notes that piracy is more widespread in Tier II cities than in Tier I cities.
Mukul Shrivastava, Partner and Forensic M&E Leader, EY Forensic and Integrity Services, said, “The Media and Entertainment industry has been losing a significant portion of its revenue to piracy over the years. Several measures taken to combat this issue remain insufficient and fragmented and have not had a meaningful impact. “It is crucial that different segments of the industry collaborate to mitigate piracy risk and push for stronger regulations and enforcement. Simultaneously, leveraging technology to combat the creation and distribution of pirated content will also be critical. This will ensure that original creators are able to protect their intellectual property and monetise what is rightfully theirs.”