Streaming was supposed to kill off online piracy. Instead, the problem is skyrocketing (2024)

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By Nell Geraets

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Streaming services like Netflix have been credited for reducing rates of online piracy, by improving access to large libraries of movies and TV shows, but a cost of living crunch, combined with password sharing crackdowns, rising prices and the re-introduction of ads have combined to contribute to a new surge in copyright infringement.

In 2021, 30 per cent of Australians infringed copyright through the way they consumed content online, according to federal government data. By 2023, the most recent year data is available for, that figure increased to 41 per cent.

Australians pirate a range of content, including movies, TV shows, video games, music and sports broadcasts. Chair of Creative Content Australia Chris Chard says cost of living pressures are causing more people to justify downloading content on torrents or watching illegal streams.

Streaming was supposed to kill off online piracy. Instead, the problem is skyrocketing (1)

Alongside increases in rent, food prices and energy bills, streaming services are also getting more expensive. Netflix’s standard subscription has increased by $10 over nine years, now costing $18.99 per month. Other services have introduced slightly smaller hikes, including Binge, Stan* and Disney+. Netflix and Amazon Prime Video have also introduced ads to their basic plans, encouraging ad-haters to pay an extra fee for uninterrupted viewing.

“These platforms have also become much stricter about password sharing,” says Catherine Bond, a UNSW associate professor in copyright history. “If you’re not living at the main address, your access will be cut off. With cost of living increasing, you may not want to pick up another subscription for the last few episodes of a TV show.”

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Lemar, who didn’t want to provide his last name as he was discussing breaking the law, said he unlawfully downloaded movies and TV shows once a week on top of paying for Netflix and Disney+. “The combined price of having a subscription to all the platforms needed to see everything I want to watch is the main reason I torrent content.”

Recently, Lemar pirated The Fall Guy and Furiosa: A Mad Max Saga, both big-budget films, that haven’t hit streaming platforms yet. He notes the cost of cinema tickets, which has risen on average by 24 per cent over the past 10 years (in 2023, it was $16.96). “If they had more cinema deals during the weekend instead of weekdays, I think torrenting would reduce.”

It may not just be a matter of cost, however. According to Chard, those who are in a higher income bracket are more likely to consume online content unlawfully. Hollywood star Sydney Sweeney recently shared a photo to social media of her seemingly watching an illegal stream of Law & Order.

For Maya, who also spoke on the condition of partial anonymity, it’s a matter of convenience over cost. “Streaming [services] are great for browsing, but if you know what you want to watch, it’s easier to just quickly download it. Who has time to search for The Bear on every platform before you find it?”

In 2015, Netflix, Foxtel and Stan were the only services in Australia, with their libraries boasting an array of hugely popular titles. Now, however, there’s Binge, BritBox, Amazon Prime, Apple TV+, Disney+, and Paramount+, all of which have secured their own specific niche. This fragmentation has triggered fatigue among some consumers, Bond says.

Streaming was supposed to kill off online piracy. Instead, the problem is skyrocketing (2)

“We’re seeing more casual pirates who may have been able to satisfy their entertainment needs with a few subscriptions over the last few years, but now the market is really diluted. So, they turn back to online websites to access content they want to watch but which doesn’t necessarily justify another subscription.”

It may also simply come down to habit. According to a 2022 study by Creative Content Australia, about 42 per cent of Australians began pirating content over the COVID-19 lockdowns, when cinemas were shuttered, and have continued to do so.

The steady rise of online piracy in Australia mimics trends seen overseas, including the US where usage of pirate sites has soared since 2020 to over 140 billion visits, up from about 105 billion before the pandemic.

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Many of those who pirate content likely consider it a “victimless crime”, says Palace Cinemas chief executive Benjamin Zeccola. “These individuals often see themselves as upstanding citizens. Yet, paradoxically, they sustain offshore criminal enterprises that undercut local jobs and economic stability.”

Executive director of the Cinema Association Australasia Cameron Mitchell echoes this, noting that as long as illegal content remains accessible online, online piracy will persist. “Research confirms that some subscribers to legal platforms believe their legal subscriptions entitle them to access all content, including illegal content, which is obviously not the case.”

Notably, the steady rise in online piracy hasn’t coincided with a drop in legal streaming subscriptions. According to a Netflix spokesperson, the platform’s subscriptions have grown year-on-year, with the number of its ad-supported plan’s global monthly active users increasing from 5 million to 40 million within a year. Disney+ and Binge/Foxtel were contacted for comment.

“An increase in piracy is worrying, but it doesn’t mean it’s out of control,” Chard says. “We need more support from the government. Other markets like the UK are making it a specific focus for the police, having a dedicated intellectual property crime unit to deal with this kind of IP crime. That would be a huge step in the right direction. We just need to make sure we don’t lose the battle.”

*Stan is owned by Nine, which also owns this masthead.

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Streaming was supposed to kill off online piracy. Instead, the problem is skyrocketing (2024)

FAQs

Did streaming kill piracy? ›

Streaming services like Netflix have been credited for reducing rates of online piracy, by improving access to large libraries of movies and TV shows, but a cost of living crunch, combined with password sharing crackdowns, rising prices and the re-introduction of ads have combined to contribute to a new surge in ...

What is the problem of online piracy? ›

It deprives creators and distributors of revenue, discouraging investment in new content and innovation. This financial impact can lead to job losses and negatively affect the economy. For consumers, piracy behavior poses risks to their digital security and can lead to legal issues.

Is streaming considered piracy? ›

Downloading unlicensed content is always illegal

While streaming doesn't violate U.S. copyright law, downloading very explicitly does.

Why is piracy increasing? ›

The reason for the increase in piracy visits is down to technology, says Andy Chatterley, founder and CEO of MUSO. “In the past 10 years, and specifically in the past five years, we've just had a proliferation of these platforms,” he says.

Is piracy still a problem? ›

Ocean piracy is rising across the world

There were 120 incidents of maritime piracy and armed robbery against ships reported in 2023, compared to 115 in 2022, according to the annual Piracy and Armed Robbery Report of the ICC International Maritime Bureau (IMB).

How does steam stop piracy? ›

Steam allows the use of third-party DRM systems to protect games against online piracy. One notable example is Denuvo, an Austrian anti-tamper system known for its sophisticated protection technologies, especially in the realm of code obfuscation.

Why piracy is so bad? ›

Pirated content often comes with its own set of problems that can affect the user experience and security: Poor Quality: Pirated files often have inferior quality, with issues in audio, video, or both. Malware Risks: Pirated content is a common vehicle for malware, exposing users' devices to viruses and cyber threats.

Can online piracy be stopped? ›

Digital Rights Management (DRM) is widely recognized as one of the most effective methods for preventing digital piracy. It restricts a pirate's ability to copy or redistribute media by requiring a specific decryption key to view the video file.

What is the main cause of piracy? ›

Corruption, insufficient maritime security measures, and political instability foster conditions ripe for piracy.

What causes stream piracy? ›

Stream piracy is common in folded rock terrains. Piracy occurs due to the migration of divides. Headward erosion allows one stream to capture the drainage network of another stream and behead parts of others.

Can you go to jail for illegal streaming? ›

Beyond financial penalties, illegal live streaming carries the risk of criminal prosecution, which can result in incarceration. Internet directories of county jails have been used to find out if someone might be incarcerated in these desperately difficult times.

What is illegal streaming called? ›

Online piracy or software piracy is the practice of downloading and distributing copyrighted works digitally without permission, such as music or software. The principle behind piracy has predated the creation of the Internet.

Why is online piracy a problem? ›

It negatively affects the creative industries, including film, TV, publishing, music and gaming. Online piracy has an economic impact, as it affects government revenue streams and puts you – the consumer – at risk of financial loss.

What killed piracy? ›

The era of piracy in the Caribbean began in the 1500s and phased out in the 1830s after the navies of the nations of Western Europe and North America with colonies in the Caribbean began hunting and prosecuting pirates.

What is the biggest impact of piracy? ›

Although most discourse regarding piracy focuses on the producers, we have found that piracy is also harmful to media consumers. By reducing creative incentives, piracy negatively impacts the quality of films and, by extension, negatively impacts the viewer experience.

Does music streaming reduce piracy? ›

A report by IFPI found that music piracy declined by 22% globally between 2018 and 2019, as more people switched to legal streaming services1. Spotify found that its service alone helped reduce music piracy by up 20% in some markets such as Spain and Norway2.

How did piracy ended? ›

How did the Golden Age of Piracy end? The Golden Age of Piracy experienced a slow decline from 1726 onward. Colonial ports got bigger and developed better governments; pirates were offered pardons for their actions; and privateering was made illegal. All of these factors contributed to the decline of piracy.

How much do streaming services lose to piracy? ›

But now piracy involving illegal streaming services as well as file-sharing costs the US economy about $30 billion in lost revenue a year and some 250,000 jobs, estimates the US Chamber of Commerce's Global Innovation Policy Center. The global impact is about $71 billion annually.

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