Research and reports
The first Polish report on the theft of video content was prepared by PwC in Spring 2014 and commissioned by Sygnał Association. The report titled “Analysis of the impact of video content piracy upon the economy in Poland” served as a starting point for developing stronger actions to reduce the scale of IPR infringements.
The report reveals the actual scale of media piracy, its cause and impact upon Polish economy and legal business as well as describes the systems of financing online crime. The report underlines the social consequences of video piracy and at the same time social indifference to this issue despite the high awareness of its existence. Previous researches conducted on the same subject in 2006 and 2010 also indicated an inconclusive interpretation of piracy.
The year 2024 could be a breakthrough in the standardization of intellectual property protection mechanisms in Europe. Increasing awareness of the value of copyright translates into the implementation of increasingly sophisticated mechanisms for responding to illegal distribution of content online. The European Commission’s recommendations, as well as an ongoing study of their application throughout 2024, are a step toward more effective solutions, including regulatory ones. The Sygnal Association has made an attempt to capture the key issues examined by the European Commission, resulting in a report with conclusions.
The study showed the scale of piracy in terms of multiple infringements of the same content. Between September 2022 and August 2023, more than 6.1 million cases of illegal distribution of audiovisual content, mainly in the form of VOD, were registered for the content sample studied. This means that, on average, each material was distributed illegally more than 3,600 times a year, or 10 times a day.
The mechanisms for reporting violations are not fully effective. About a third of the reports (34%) are so-called “illusory reports,” as content – despite being removed – reappears in places from which it has already been taken down. In the case of violations of distribution rights for live events, as many as 94% of reports yielded no result.
In the case of live streaming, only 5% of reports directed to piracy sites were dealt with within the first 30 minutes of their transmission, which poses a significant challenge to effectively combat the illegal distribution of audiovisual content in real time. This shows how much work needs to be done in Poland to bring the reality in line with the live blocking mechanisms being implemented in Europe, i.e. blocking access to illegal transmissions in an immediate manner of no more than 30 minutes.
Download here: https://sygnal.org.pl/wp-content/uploads/2024/02/2024_EFFECTIVENESS-OF-REPORTING-PIRACY.pdf
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.
Download here: https://sygnal.org.pl/wp-content/uploads/2023/11/2023_report_theft_of_video_content_on_the_internet_deloitte_eng.pdf
44% of Internet users have a negative or strongly negative attitude towards video piracy, with 29% viewing piracy as dangerous and unethical. However, the most common association with piracy remains free services (42%). According to respondents, the most negative consequences of using pirate services are infection with malware (48%) and losses for creators (47%). This is based on research conducted for the SYGNAŁ Association on the Ariadna panel from April 2-5, 2021, involving a nationwide sample of 1,074 Internet users aged 18 and older.
Previous analyses regarding both the economic dimension of audiovisual content theft and the social aspects related to using illegal sources were conducted over five years ago. This year’s study allowed for the assessment of qualitative changes in Internet users' attitudes that have occurred over the past decade.
Download here: https://sygnal.org.pl/wp-content/uploads/2021/05/raport_postawy_internautow_2021.pdf
Losses to the Polish economy due to online piracy amounted to more than PLN 3 billion in 2016, and the State Treasury lost PLN 836 million. The estimated revenue of piracy sites providing online access to movies, series, music, press or books could have amounted to as much as PLN 745 million in 2016. This is a sum for which one could build more than two Copernicus Science Centers or buy 33 million books. The total value of processing content from illegal sources on the Internet could amount to about PLN 30.4 billion in 2017-2024.
These alarming figures come from the report " Piractwo w internecie - straty dla kultury i gospodarki” [Internet Piracy - Losses to Culture and the Economy]. Analysis of the impact of online piracy on the Polish economy in selected cultural markets," prepared by the Deloitte consulting firm on behalf of the Kreatywna Polska Association. The report was produced with the substantive participation of the Sygnal Association.
It shows that one in two Polish Internet users aged 15-75, or about 12 million people, use illegal sources. That's almost as many people as bought tickets to Polish productions shown in cinemas in 2016, or as many people as would manage to fill the hall of the National Opera in Warsaw more than 6,500 times.
The profitability nature of the illegal practice
Internet users choose pirate portals because of the ease and speed of access, the wide range of offerings, the low cost (or lack thereof). The scale of piracy is also due to inadequate copyright protection in our country despite the obligation to bring our laws in line with EU standards. Deloitte experts pointed out the profitability and simplicity of illegal content trading on the Internet. Owners of illegal sites monetize their activities without incurring the costs of purchasing content, taking advantage of legal loopholes.
"Piracy has become a well-organized ecosystem, which, due to the lack of adequate protective legal mechanisms, negatively affects not only the legal market, but also the national economy and consumers' pockets. This area, which is often out of control, is also increasingly a source of problems related to, for example, data security or malware," says Teresa Wierzbowska, CEO of the Sygnał Association, which is a member of the Kreatywna Polska [Creative Poland Association].
Most users use both legal sites and those offering illegal access to content. By paying pirate sites a few or a dozen zlotys a month, Poles feed them with a sum of about PLN 900 million a year, which means that their estimated revenues amounted to about PLN 745 million (after deducting transaction fees and taxes).
Outlook
"There is no indication that the situation is going to change dramatically in the coming years. Assuming that appropriate legislative changes are not made, the projected total value of pirated content consumption from illegal sources on the Internet in 2017-2024 will be about PLN 30.4 billion. Such an amount would make it possible to cover about 70 percent of the value of the public sector deficit for 2015 at one time, or to build about 730 kilometers of highways, which is roughly the distance between Rzeszów and Berlin," says Julia Patorska, economist, Senior Manager in Deloitte's Consulting Department. The average growth rate of piracy between 2017 and 2024 will be 3.3 percent, which will be significantly higher than the average GDP growth rate over the period.
Surprisingly, a large proportion of Internet users are unaware that they are using illegal sources. As many as 57 percent of those surveyed say they download content only from legal sources, but these assurances are not consistent with the actual data on the content they obtain. Indeed, the survey results indicate that only 49 percent of Internet users obtain content exclusively from legal sources. Nearly a third of respondents believe that paid services offer only legal content. In addition, 28 percent of respondents are unable to evaluate this statement. Thus, more than half of the surveyed population does not realize that by making a payment for the content they watch, they may be supporting illegal services.
A separate issue that affects the spread of Internet piracy in Poland is the low effectiveness of domestic laws, compared at least with EU legislation. "This is due to incomplete or even faulty implementation of some of the solutions arising from the EU InfoSoc Directive and the E-commerce Directive. This state of affairs forces copyright holders to look for means of protection in legal solutions that are already present in national law, but are not adapted to functioning in the Internet reality, and thus are far from effective," says Aleksandra Dolak, Legal Counsel, Managing Associate at Deloitte Legal. It is therefore necessary to carry out legislative changes aimed at adapting Polish law to the requirements arising from EU law, in addition to providing copyright holders with access to tools and legal solutions to protect their interests.
"The scale of illegal sites is huge, with new ones being created all the time. But after years of experience, we can also talk about achievements in the fight against piracy. We are enriching the offer of legally available content, we are bringing about the closure of sites, our educational activities are bearing fruit." - Teresa Wierzbowska, President of the Sygnał Association, commented.
A separate issue that affects the spread of Internet piracy in Poland is the low effectiveness of domestic laws, compared at least with EU legislation. "This is due to incomplete or even faulty implementation of some of the solutions arising from the EU InfoSoc Directive and the E-commerce Directive. This state of affairs forces copyright holders to look for means of protection in legal solutions that are already present in national law, but are not adapted to functioning in the Internet reality, and thus are far from effective," says Aleksandra Dolak, Legal Counsel, Managing Associate at Deloitte Legal. It is therefore necessary to carry out legislative changes aimed at adapting Polish law to the requirements arising from EU law, in addition to providing copyright holders with access to tools and legal solutions to protect their interests.
Fight against piracy
The reduction of Internet piracy can be influenced by support for initiatives based on the follow the money approach (a form of fighting copyright infringers on the Internet involving the obstruction or elimination of their sources of revenue). "As the example of the UK, Portugal and other European Union countries shows, the development of an agreement between digital content market participants is not only possible, but also brings tangible results. Therefore, it is desirable to continue national discussions on the follow the money approach and, in particular, dialogue with advertisers and payment intermediaries to initiate self-regulatory actions aimed at adopting codes of good practice and creating a national database of websites through which massive copyright infringement is taking place," says Julia Patorska. It is also necessary to educate the Internet community about the harms of Internet piracy.
Source: Kreatywna Polska
Download here: https://sygnal.org.pl/wp-content/uploads/2019/05/5b4e71d76d4f251d0c16978310226b77.pdf
In April 2014, PwC published the report "Analysis of the impact of video content piracy upon the economy in Poland." This is the first such comprehensive and documented report on online video content theft.
Key findings:
- The value of GDP lost due to Internet video content piracy is estimated at about PLN 700 million per year, or 0.04% of Poland's total GDP, of which between PLN 170 and 250 million is lost directly to the State Treasury.
- One in five Poles regularly use websites offering illegal access to video content - this represents nearly 30% of all Internet users and as many as 94% of those seeking video content on the Internet.
- Nearly half of Internet users pay for access to video content from illegal sources, the average declared expenditure is about PLN 14 per month. Most of the pirate sites are simultaneously funded by advertisers.
- Over the course of a year, 400-500 million movie plays, 650-750 million series episodes and 150-180 million sports broadcasts are played through illegal sources.
- The most common stated reasons for using illegal sites are rich content (32%) and free access (26%). However, these declarations are often unrelated to the material situation of Internet users, and may be an attempt to rationalize behavior rather than a real reason for using illegal content.
- Poles are aware that downloading and distributing pirated content is illegal (77% of indications).
- Effective protection of intellectual property and countering illegal practices is hampered mainly by legal loopholes, far-reaching exclusions of liability for some entities, imprecise legal definitions, registration of sites and placement of servers outside Poland.
- The fight against the illegal circulation of video content requires action on many levels. It is necessary to take informative measures and promote legal sources, tighten the regulatory system and criminalize violations. It is crucial to level the negative impact of piracy on the economy, to introduce solutions that will make it more difficult for them to benefit financially from illegal content circulation.
The Report was prepared by PwC on behalf of the Sygnał Association. Work on the Report took place between October 2013 and January 2014.
Download here: https://sygnal.org.pl/wp-content/uploads/2019/05/Analiza_wplywu_piractwa_na_polska_gospodarke_raport_wersja_do_druku.pdf
In May 2010, GfK Polonia conducted research commissioned by SYGNAŁ. The study shows that:
- As many as 76% of Poles agree that illegal use of television is simply theft.
- 65% of Poles would not react knowing that someone is illegally receiving a television signal, believing it is that person's private matter.
- Only 4% of Poles think that stealing a television signal is a crime that should be reported to the police.
- One in three Poles would lose respect for a neighbor who uses cable or satellite television in this way.
- 12% would personally address such a person. The same percentage believes that in such a situation, the paid television provider should be informed. The research was conducted by GfK Polonia on a representative group of respondents (May 2010).
- According to the research, 68% of Poles believe that using cable television or digital platforms without payment and the provider's knowledge is wrong. At the same time, 46% think that piracy is simply a sign of cleverness.
- More than half of the respondents agree that using paid television without the provider's knowledge is outright theft, yet 53% claim they would not lose respect for a neighbor who accessed television in this way. Two-thirds of respondents admit they would be ashamed to use pirated methods for receiving television.
- Half of those surveyed are aware that signal theft harms other subscribers, but one in three believes that this practice should not be harshly punished.
The research was conducted by GfK Polonia on a representative sample of respondents (July 2006).
- Television piracy is a common phenomenon, according to 45% of subscribers surveyed in June by cable and satellite operators associated with the Sygnał Association.
- The results of the survey indicate that there is low tolerance among subscribers to cable and satellite TV for signal theft. According to 82% of respondents, stealing a television signal is unacceptable, and 71% of those surveyed are aware that signal theft affects subscription fees. The same percentage believes that signal thieves should be punished (either by taking legal action or imposing financial penalties).