Digital piracy is on the rise and isn't expected to slow down any time soon, according to a report from piracy-focused research firm MUSOthat was published inVarietyin early February.
In 2022, pirating films increased by about 39%, compared with 2021, while visits to piracy websites to watch TV shows rose by about 9%, the report said. Piracy is also expected to continue to rise throughout 2023.
"This trend continues to be a major issue for the industry, significantly impacting the revenues and livelihoods of all involved -- particularly smaller, independent creators -- and damaging the wider economy," the report said.
In 2019, theUS Chamber of Commerce's Global Innovation Policy Centerreported that piracy costs the US film and TV industry between $29 billion and $71 billion, annually.
MUSO attributes the rise in piracy to a few factors, including economic pressures. In 2022, many streaming platforms, likeNetflix andDisney Plus, increased their prices. Netflix also announced that it would startcracking down on password sharing after it reported losingnearly 1 million subscribersin the second quarter.
A 2019 study by the New Zealand-based Vocus Group NZ found that making content cheaper and easier to access helps stop piracy, not new laws and regulations.
"These two options were by far ahead of other options, at 57 and 48 percent respectively," Taryn Hamilton, consumer general manager at Vocus Group NZ, said. "Punitive measures, such as prosecution for pirates and censorship of pirate sites, were only thought likely to be effective by 33 and 22 percent of people, respectively."
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As a seasoned expert in the field of digital piracy and its impact on the entertainment industry, my extensive knowledge is underscored by a profound understanding of the complex dynamics surrounding this issue. I have closely followed reports and research findings, staying abreast of the latest developments to provide insights into the challenges faced by content creators, streaming platforms, and the broader economy.
The report from MUSO, a piracy-focused research firm, published in Variety in early February, is a significant piece of evidence showcasing the alarming rise in digital piracy. The firm's findings, indicating a 39% increase in pirated films and a 9% rise in visits to piracy websites for TV shows in 2022 compared to the previous year, emphasize the growing threat posed by piracy to the entertainment industry. Moreover, the report's projection that piracy is expected to continue its upward trajectory in 2023 underscores the urgency of addressing this issue.
To further establish the gravity of the situation, the US Chamber of Commerce's Global Innovation Policy Center reported in 2019 that piracy costs the US film and TV industry between $29 billion and $71 billion annually. This evidence demonstrates the substantial economic impact of piracy, affecting not only major players but also smaller, independent creators who face significant challenges in sustaining their livelihoods.
MUSO attributes the surge in piracy to various factors, including economic pressures. The report highlights the impact of price hikes on streaming platforms such as Netflix and Disney Plus in 2022. Notably, Netflix's decision to crack down on password sharing following a substantial loss of subscribers further indicates the complex interplay between economic factors and piracy trends.
Drawing on additional evidence, a 2019 study by the Vocus Group NZ supports the idea that making content more affordable and accessible is an effective strategy to combat piracy. The study found that 57% of respondents believed making content cheaper, and 48% thought making it easier to access were the most effective measures. In contrast, punitive measures like prosecution for pirates and censorship of pirate sites were considered effective by only 33% and 22% of respondents, respectively.
In conclusion, the rise in digital piracy poses a significant and ongoing threat to the entertainment industry. Addressing this issue requires a nuanced understanding of the economic, regulatory, and consumer behavior factors at play. As an expert in this field, I am committed to providing comprehensive insights to inform discussions and strategies aimed at mitigating the impact of digital piracy on the industry.
