India’s Piracy Economy Soars to ₹224 Billion: Call for Stricter Enforcement

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. (Image: Freepik)

A recent report reveals that India’s piracy economy has reached a staggering ₹224 billion in 2023, making it the fourth-largest sector compared to the country’s media and entertainment industry. The study, conducted by EY and the Internet and Mobile Association of India (IAMAI), highlights a pressing issue: 62% of consumers who access pirated content believe stricter enforcement is essential to combat piracy.

Breakdown of Piracy Revenue

The report indicates that a significant portion of this piracy economy stems from illegal sources. Pirated content from movie theaters accounts for ₹137 billion, while over-the-top (OTT) platforms contribute ₹87 billion. Furthermore, the report estimates that the government could lose up to ₹43 billion in Goods and Services Tax (GST) revenue due to these activities.

Despite a post-pandemic surge of 150% in subscription revenues, 51% of media consumers in India still rely on pirated sources. Streaming is the largest contributor to piracy, accounting for 63% of cases, followed by mobile apps at 16% and other methods like social media and torrent sites at 21%.

Consumer Behavior Insights

The report reveals intriguing consumer behavior patterns. Notably, 64% of those who engage in piracy would switch to legitimate channels if they were offered for free, even with advertisements. Additionally, 84% of these consumers avoid purchasing movie tickets, and 70% show reluctance to subscribe to OTT platforms.

Demographics also play a role in piracy trends. The study finds that piracy is most prevalent among individuals aged 19 to 34, with women primarily pirating OTT shows while men tend to seek out older films and classics. Hindi content remains the most popular, constituting 40% of pirated material, followed by English content at 31%.

Regional Disparities

The report highlights that piracy is more rampant in Tier II cities, where access to authorized content is limited. Factors such as income disparities, inadequate access to theaters, and a lack of awareness contribute to the issue. In contrast, users in Tier I cities often resort to piracy to watch older films.

A Call for Action

To tackle this growing problem, the report urges coordinated efforts between the government and private sectors. It advocates for stricter enforcement measures, large-scale awareness campaigns, innovative pricing strategies, and international collaborations. Without timely regulatory updates and stronger enforcement, the impact of piracy on India’s entertainment industry is likely to persist, undermining both creators and consumers alike.