Despite the proliferation of streaming platforms and the wide range of services they provide, such as SVOD (Subscription Video on Demand), VOD (Video on Demand), AVOD (Advertising-based Video on Demand), and TVOD (Transaction Video on Demand), the problem of piracy remains unresolved.

A study conducted by the Global Innovation Policy Center of the U.S. Chamber of Commerce reveals that over 80 percent of piracy can be attributed to streaming. Illegal streaming is facilitated by piracy devices and applications, which have surpassed BitTorrent and other download-based technologies in enabling unauthorized live TV and video-on-demand (VOD) content to be accessed over the internet.

The number of streaming platforms is on the rise, as evidenced by Nielsen’s data stating that streaming usage has increased by 21% between May 2021 and May 2022.

However, the issue of piracy cannot be overlooked. MUSO’s data indicates that digital piracy in the film and television industry will continue to grow in 2023.

Several factors contribute to this trend, including the increased volume of content available after the pandemic, the growing exclusivity of releases on legal subscription platforms, and global economic pressures leading to inflation.

Towards a decline in the attractiveness of streaming platforms

Furthermore, a study conducted by the Global Innovation Policy Center of the U.S. Chamber of Commerce, which utilized macroeconomic modeling of digital piracy, reveals that online piracy worldwide costs the U.S. economy an estimated $29.2 billion in lost revenue annually.

Initially, OTT (Over the Top) platforms garnered significant consumer interest by offering lower-priced subscriptions compared to cable TV, simplifying the choices for users and reducing piracy concerns.

However, the subsequent growth and price hikes of these platforms have contributed to a resurgence of piracy.

Presently, the pricing models of certain streaming platforms have made them less affordable for many consumers. Subscribers now have to pay a substantial amount to access a diverse and extensive content library.

Take Netflix, for instance, where the premium subscription in France can cost up to 17.99 euros per month. To counteract the price increases, Netflix intends to incorporate advertisements that are expected to lower subscription costs.

Nonetheless, it remains uncertain whether this change (ads) and other measures, such as cracking down on account sharing, will guarantee customer satisfaction. These factors could potentially lead to subscription cancellations and a subsequent increase in piracy.

What measures should be taken to deal with piracy?

The effectiveness of punitive measures, such as censoring pirate sites, legal actions, and imposing fines of up to 1500 euros, appears to be limited in combating piracy.

A potential solution to address piracy lies in reorienting the business model of OTT platforms to prioritize the consumer. This involves reviewing and adjusting their offerings, including pricing and content selection. By providing users with high-quality and exclusive content at affordable prices, platforms can effectively deter piracy.

In today’s landscape, it is more important than ever to comprehend consumer expectations and prioritize customer satisfaction while delivering a distinctive user experience.