Piracy costs Indian entertainment industry ₹22,400 crore in 2023: Report

The report also stated that piracy is prevalent among younger audiences aged 19 to 34, with women favouring OTT shows and men leaning towards classic films.

The Indian entertainment industry faced a massive financial setback in 2023, with piracy causing losses to the tune of ₹22,400 crore, a report has revealed.

Piracy takes a toll
According to The Rob Report by EY and the Internet and Mobile Association of India (IAMAI), a staggering ₹22,400 crore loss plagued the Indian entertainment industry in 2023, primarily due to piracy.

The findings underscore the need for a unified approach and stringent measures to curb piracy with robust regulations and industry-wide cooperation. The report also stated that 51 percent of media consumers in India access content from pirated sources, with streaming services being the most significant contributor at 63 percent.

“The size of India’s piracy economy was ₹22,400 crore in 2023, ranking fourth against the segment-wise revenue generated by India’s Media and Entertainment industry. Of this, ₹13,700 crore was generated from pirated content from movie theatres while ₹8,700 crore was generated from OTT platforms’ content. The potential GST losses of up to ₹4,300 crore were estimated to have been incurred,” the report read.

Action required
As per Rohit Jain, Chairman of IAMAI’s Digital Entertainment Committee, collective action is needed at the moment.

“The rapid growth of digital entertainment in India is undeniable, with filmed entertainment expected to reach ₹14,600 crore 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,” he said.

The reasons mentioned by viewers include high subscription fees, the unavailability of desired content, and the hassle of managing multiple subscriptions.

The report also stated that piracy is prevalent among younger audiences aged 19 to 34, with women favouring OTT shows and men leaning towards classic films.

According to the report, 64 percent of those who access pirated content expressed willingness to switch to authorised channels if offered for free, despite advertisement interruptions, and around 70 percent of pirated content consumers claimed that they did not wish to purchase any OTT subscriptions.

The report also revealed that piracy is more prevalent in Tier II cities compared to Tier I cities. Hindustan Times