The audiovisual market loses nearly PLN 3 billion annually due to video content theft. 7.3 million Polish internet users access sites offering illegal access to audiovisual content.
Despite the fact that the number of internet users resorting to pirate sources has decreased by 900,000 over the past six years, the phenomenon generates increasing losses for the market, which can reach nearly 3 billion PLN annually. Additionally, the losses to the state treasury amount to as much as 1.86 billion PLN. The partial reduction in piracy in Poland is the result of systematic and costly actions by the audiovisual industry. However, the available tools and legal solutions are not fully effective. It is necessary to adapt the law to European standards and a level of protection that will realistically reduce the losses due to online content theft.
Over the last six years, the number of internet users accessing video content online has increased by 7.7 million, while those accessing pirate sites has decreased by 900,000. The partial reduction in illegal services is the result of extensive systematic actions by the audiovisual market, both in combating piracy and enhancing the attractiveness of legal offers.
Despite the reduction in the number of users accessing illegally offered content, their activity has significantly increased. According to the Deloitte report “Video Content Theft on the Internet 2023,” in 2022, the number of visits to pirate sites offering movies and series increased by about 36%, and those with illegal streaming of TV channels by 8.8% compared to 2016. As a result, the level of market and Polish economy losses due to piracy continues to deepen. The report’s authors estimate that the value of pirate content consumption in Poland amounts to approximately PLN 7.36 billion annually, of which up to PLN 3 billion can be recovered.
“The annual consumption of illegally offered content estimated at PLN 7.36 billion PLN is an amount that would allow for the payment of an annual subscription to a VOD service for all internet users in Poland watching video content. Analysing this data, it is easier to imagine the enormous losses that internet piracy brings to the Polish economy and the entire entertainment industry. It is also worth noting that users of illegal sources are willing to pay about PLN 30 for access to platforms offering live broadcasts and 27 PLN for VOD services. Meanwhile, legal sources offer similar subscription costs,” says Teresa Wierzbowska, President of the Board of the Sygnal Association.
The practice of illegally distributing audiovisual content, including television, has changed, and entities offering illegally stolen content are looking for new methods of distribution and monetization. Besides streaming, which is the dominant method of illegal content distribution in Poland, significant losses, amounting to PLN 110 million annually, are also generated by unlicensed IPTV. The challenge in content protection also includes distribution through social media and sharing access to legal VOD platforms. Every seventh respondent uses accounts shared by family or friends.
More than half of Polish internet users believe that using pirate services negatively impacts the number and quality of audiovisual productions. Awareness of the risks associated with using pirate services, such as malware installation, data theft, or financial fraud, is also growing. Although respondents are aware of these risks, four out of ten still visit illegal platforms, and about 5% of this group pay for access to such sites. The average monthly number of visits from Poland to pirate sites is nearly 130 million, and internet users’ spending on this type of content amounts to as much as PLN 322 million annually.
The data from the Deloitte report captured the limits of the market’s capabilities in combating content theft. The report’s authors indicate that without systematic solutions and the involvement of public entities in the fight against intellectual property theft, following the example of other European countries, it will not be possible to reduce the level of losses for the Polish economy, and the solutions currently used by the market may be insufficient. To better protect intellectual property, it is necessary to implement mechanisms such as blocking websites and illegal live streams.
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