The ₹224 billion leak: How piracy drains India’s film industry

While music piracy has been largely curtailed due to free, ad-supported streaming, video piracy remains rampant, costing the industry a staggering ₹224 billion annually, as per a report released by EY and the Internet and Mobile Association of India (IAMAI).

Of this, ₹137 billion in losses stem from pirated movie theatre content, while ₹87 billion is attributed to illegally accessed OTT content. Streaming remains the primary source of pirated content, accounting for 63% of the total, followed by mobile apps at 16%, with social media and torrent platforms contributing another 21%.

How music beat piracy while OTT struggles

Entertainment industry experts say video piracy persists because filmmakers, TV producers, and streaming platforms are yet to establish a pricing model that works across income groups. Additionally, the fragmented availability of films and shows across multiple platforms makes legitimate access inconvenient, pushing audiences toward piracy.

The report highlights several key factors pushing this trend, including the widespread availability of high-speed internet, the ease of distributing pirated content online, the difficulty of managing multiple subscriptions, and the steep costs of premium streaming services. 

Meanwhile, although the music industry is relatively small in comparison, piracy still results in annual losses of approximately ₹1,000 crore.

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“When comparing revenue losses, film and OTT piracy tend to cause more financial damage than music piracy today. Since music is now largely streamed legally, the industry has found ways to monetise content effectively through ad-supported and subscription models,” said Vinod Bhanushali, founder and managing director of Bhanushali Studios.

“Film and OTT content, however, require a direct purchase or subscription, and piracy diverts this revenue. A leaked film can severely dent its theatrical earnings, whereas music piracy today has a lesser impact due to widespread legal alternatives,” he added.

Earlier, music piracy was rampant through unauthorised websites or through physical means—downloading onto mobile devices and SD cards, which were widely available at small shops. 

However, with the advent of platforms like YouTube, Spotify, and JioSaavn, legal access to music has become much easier and more convenient. YouTube, being an audiovisual platform, provides free access with ads, while music streaming services offer ad-supported listening alongside premium subscriptions. 

With data now being affordable, people prefer streaming over illegal downloads. The ease of use, curated playlists, and AI-driven recommendations have further strengthened the shift towards legitimate music consumption. 

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In contrast, film piracy continues to be a major issue, primarily because it directly impacts box office collections. The moment a film is released, pirated versions appear on various illegal websites or platforms like Telegram. This immediate availability of free content discourages people from going to theatres, leading to significant revenue losses.

The price barrier

“The cost per month for audio platforms doesn’t hurt because everything is available on one platform. In case of film or OTT, one has to pay separately for Netflix, Prime Video, Hotstar and so on and there are no real bouquets and this isn’t possible for everyone,” filmmaker Siddharth P Malhotra said.

The issue should gradually get resolved as video streaming is made more affordable and there are a significant number of paid subscribers in the ecosystem, producer and director Hemal A. Thakkar pointed out.

“For India’s entertainment ecosystem to improve, it is imperative for the government and private players to take a unified stand against piracy. Policies need to evolve as swiftly as the piracy landscape,” said Mukul Shrivastava, partner and forensic media and entertainment leader, EY Forensic and Integrity Services.

“Stricter enforcement mechanisms must be set in place by both the government as well as private organisations. Large-scale awareness programs, watermarking premium content, innovations around pricing and bundling, forging international alliances all need to be done simultaneously to curb India’s growing piracy menace,” he added.

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