Streaming Pirates Are Hollywood's New Villains

Illegal subscription services that steal films or TV shows bring in $2 billion a year in ads and subscriber fees (non-paywalled link). From a report: Ever since taking on Netflix at its own game, old Hollywood has struggled to turn a profit in streaming, with the likes of Disney+, Peacock and Paramount+ losing billions of dollars each year, sparking concerns on Wall Street that the services will never be as profitable as cable once was. But the age of streaming has been a boon for some unintended winners: pirates that use software to rip a film or television show in seconds from legitimate online video platforms and host the titles on their own, illegitimate services, which rake in about $2 billion annually from ads and subscriptions.

With no video production costs, illicit streaming sites such as myflixer and projectfreetv have achieved profit margins approaching 90%, according to the Motion Picture Association, a trade group representing Hollywood studios that's working to crack down on the thousands of illegal platforms that have cropped up in recent years. Initially the rise of legitimate online businesses such as Netflix actually helped curb digital piracy, which had largely been based on file uploads. 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.

In the US, which counts almost 130 subscription piracy sites, the MPA estimates that the top three combined have about 2 million users paying $5 to $10 per month for films, TV shows and live sports. Analysts say the user number could soar as the cost of subscriptions from legitimate companies such as Walt Disney approach $20 per month as they seek to bolster the finances of their streaming platforms. 'Some of these pirate websites have gotten more daily visits than some of the top 10 legitimate sites,' says Karyn Temple, the MPA's general counsel. 'That really shows how prolific they are.'

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