Netflix, Amazon, Hulu are paying a steep price to battle pirates

[Len]

Streaming services such as Netflix, Amazon, and Hulu are winning the battle against pirates who aim to steal their content though losses on the rise, according to a recent research report. Meanwhile, new features on social media such as YouTube Live are attracting hacked broadcasts of popular cable networks such as Nickelodeon and CNN.

According to U.K.-based Digital Television Research, revenue lost to theft of TV shows and moves is expected to hit $51.6 billion in 2022, nearly double its 2016 level of $26.7 billion. The news, however, isn't all bad since legitimate revenue from so-called Over-The-Top (OTT) services overtook piracy revenue in 2013 and the gap between the two measures is widening. Digital Television's report covers 138 countries and excludes Pay TV and sports.

“Piracy will never be eradicated," said Simon Murray, Digital Television's Principal Analyst, in a press release. "However, it is not all bad news. Piracy growth rates will decelerate as more effective government action is taken and as the benefits of legal choices become more apparent."

Though TV piracy is a worldwide problem, it is the most prevalent in the U.S. According to Digital Television, losses will reach $11.6 billion in 2022, up 30 percent from 2016. China's crackdown on piracy appears to be yielding some improvements though its 2022 losses are expected to climb $5.5 billion to $9.8 billion during the same time period. The most populous country's gap between legitimate and pirated revenue will improve from a deficit of $1.2 billion in 2016 to a surplus of $2.4 billion in 2022, according to Digital Television.

Piracy in India and Brazil, however, is getting worse. According to Digital Television, India will see $3.1 billion in 2022 loses, the third worst on a global basis, from eighth in the 2016 rankings ($700 million losses). Brazil will add $1.1 billion in losses over the same period, hitting $2.58 billion in 2022.

Given the streaming media sector's explosive growth, the industry isn't making too much of a fuss about the widespread practice of users who borrow one another's passwords though it's technically piracy. A Reuters/Ipsos poll conducted in July found that 21 percent of streaming viewers aged 18 to 24 said they had accessed OTT services using credentials from someone from outside their household. The survey found that 12 percent of adults did the same thing.