.jpg)
Despite spending hefty amounts on anti-piracy measures and stepping up their efforts from time to time, streaming services in India continue to bleed up to 25 per cent of their annual revenue, according to industry leaders, with their premium content getting leaked on various platforms illegally within an hour of launch.
All over-the-top players, both global and local, have been suffering from piracy as digital platforms where illegal content surfaces are often reluctant to take action against users who upload or share pirated content, experts told e4m.
Aloke Majumdar, Vice President, Technology at Hoichoi, a leading Bengali OTT platform, told e4m, “We are constantly upgrading our security measures with the help of our technology partners to ensure that OTT content is accessed only by legitimate users, yet some of our premium content still surfaces on Telegram and WhatsApp channels, denting our revenue considerably.”
Sharing the sentiments was Anuja Trivedi, Chief Marketing Office, Shemaroo: “Pirated versions of our films and web series on our OTT platform (ShemarooMe) often gets distributed illegally across file sharing platforms such as Telegram causing significant revenue losses. These platforms should take action against users involved in the illegal distribution of content.”
Dilip Chandra - Senior Vice President of Product, Analytics and New Initiatives - Aha OTT, a South India based streaming platform, too admits that piracy is the biggest menace for the OTT industry.
“It's a complex process, and because there are multiple partners involved, identifying and ensuring the entire pipeline is secure becomes tedious. That also gives the pirates an opportunity to find loopholes in this and thereby I would say things become a lot trickier.”
Rs 8,700 Cr Annual Loss
In 2023, India's entertainment industry faced a loss of Rs 22,400 crore due to piracy, with Rs 13,700 crore from movie theatres and Rs 8,700 crore from OTT platforms, revealed a report by EY and IAMAI.
The report also revealed that 51% of consumers accessed pirated content, which essentially means half of the revenue going to drains.
Content safety cost up to Rs 5 cr
Most streaming platforms partner with two or more cyber security agencies to wrap their content under several layers of security. This often costs them Rs 30 lakh to Rs 5 crore, depending upon their content slate. These agencies use proprietary tools and networks to track down pirated content.
OTT players also spend a lot of energy and resources mitigating damage after content is pirated. Their teams study patterns such as the unusual number of requests that hit their servers. They reach out to people and platforms who host pirated content requesting them to take it down.
While most of the time, such content is taken down, large mobile communication platforms like Telegram and Popcorn Time which do not fall within Indian jurisdiction remain immune to our requests citing freedom of expression, OTT players allege.
“The cornerstone of security for OTT platforms is digital rights management (DRM), as their primary concern is curbing piracy of premium video content. DRM systems manage access to encrypted content by implementing a series of permissions and security checks every time a user logs in. However, deploying DRM solutions comes with challenges due to their integration with multiple systems within the OTT ecosystem,” Chandra explains.
Chandra noted further, “These complexities are heightened by the fact that some DRM components are not developed in-house but rely on third-party providers. To address these issues, OTT platforms often opt for multi-DRM SaaS solutions, which help prevent content leakage, manage device fragmentation, and enforce subscription policies, such as limits on the number of devices per subscription.”
To further enhance security, most OTT platforms pair multi-DRM solutions with forensic watermarking and anti-capture technologies. While anti-capture tools prevent unauthorized copying of premium content, forensic watermarking enables content owners to trace illegal copies and take legal action. Together, these technologies create a robust defense against piracy.
Aggressive approach needed
The government has been supportive, providing mechanisms like "John Doe orders" that help players engage ISPs and telcos to remove pirated content. Besides, Cybercrime cells also play a crucial role, industry players shared.
"With the rise of social media and file sharing platforms, pirated content spreads rapidly. We collaborate with multiple anti-piracy agencies who prevent distribution of our content illegally online and offline efficiently. Over and above, our active collaboration with law enforcement and regulatory bodies enable us to address this menace at an industry level,” says Chandra.
While there are awareness campaigns, a more aggressive approach is needed since piracy affects not just OTT but the entire entertainment industry, industry experts say.
.jpg)
