Man holds laptop computer as cyber code is projected on him in this illustration picture.
Credit: Reuters file photo
Bengaluru: The Indian entertainment industry incurred an estimated loss of Rs 22,400 crore in 2023 due to piracy, reveals a report by EY and the Internet and Mobile Association of India (IAMAI), released on Wednesday.
This estimated loss includes Rs 13,700 crore generated from pirated content from movie theatres and Rs 8,700 crore from over-the-top (OTT) platforms’ content. The potential GST losses are estimated to be up to Rs 4,300 crore.
Managing multiple subscriptions, unavailability of desired content online and steep subscription fees emerged as the top three reasons for viewers to indulge in pirated content.
"Despite a 150 per cent rise in subscription revenue since the pandemic, 51% media consumers in India access content from pirated sources. Streaming emerged as the largest source of pirated content at 63%, followed by mobile apps at 16 per cent, other avenues such as social media and Torrent contributed 21 per cent," the report said.
"Around 40 per cent of pirated content is sought out in Hindi, closely followed by English content at 31 per cent. On an average, Indians spend nine hours weekly, consuming pirated content out of which 38 per cent of the time is spent watching OTT content and 22 per cent is spent watching films," the report added.
According to the report, the market size of the filmed entertainment segment of the entertainment industry is expected to grow to Rs 14,600 crore by 2026, while digital video subscription is estimated to reach Rs 10,300 crore by 2026. The former was Rs 12,000 crore and the latter Rs 7,300 crore in 2023.
"This potential (Rs 14,600 crore value) 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,” said Rohit Jain, Chairman of the Digital Entertainment Committee at IAMAI.
Piracy is more prevalent in tier II cities compared to tier I cities. Limited means of watching authorised content, easy access to pirated content, a lack of awareness about the perils of piracy, income disparity and inaccessible theatres are some of the reasons for this contrast.
Calling for the implementation of stricter enforcement mechanisms by both the government as well as private organisations in order to tackle the menace of piracy, the report stated that an immediate regulatory overhaul and judicious enforcement action at a global scale will go a long way in taming this evil.