62% of consumers who access pirated content believe that stricter enforcement is necessary to address the issue, The Rob Report by EY and IAMAI revealed. It further revealed that the piracy economy in India reached Rs 224 billion in 2023, placing it fourth in comparison to the revenue generated by the country’s media and entertainment sector. Pirated content from movie theatres accounted for Rs 137 billion, while content from OTT platforms contributed Rs 87 billion. The report also estimates potential GST losses of up to Rs 43 billion due to piracy.
Despite a 150% rise in subscription revenues post-pandemic, the report found that 51% of media consumers in India still access content from pirated sources. Streaming is the largest source of piracy at 63%, followed by mobile apps at 16%, with other methods such as social media and torrent sites contributing 21%. The primary reasons for engaging in piracy include managing multiple subscriptions, lack of access to desired content, and high subscription fees.
The report also highlights consumer behaviour, noting that 64% of those who access pirated content would switch to authorised channels if they were available for free, despite ads. Additionally, 84% of these consumers said they avoid buying movie tickets, and 70% expressed an unwillingness to subscribe to OTT platforms. The study shows that piracy is particularly prevalent among 19-to-34-year-olds, with women primarily pirating OTT shows and men seeking out older films and classics. Hindi content leads in popularity, accounting for 40% of pirated material, followed by English content at 31%.
Piracy is more widespread in Tier II cities, where access to authorised content is more limited, and income disparities, inaccessible theatres, and a lack of awareness contribute to the problem. In contrast, users in Tier I cities generally turn to piracy to watch older films. The report calls for unified action between the government and private players to curb piracy through stricter enforcement, large-scale awareness programs, innovations in pricing, and international partnerships. Without swift regulatory updates and stronger enforcement, India’s piracy problem is set to continue impacting the entertainment industry.