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Despite the availability of more legal streaming options than ever before, piracy of TV shows and movies is on the rise. The increased fragmentation of the streaming landscape, coupled with high costs, is pushing people towards illegal options. According to data from piracy tracking firm Muso, Netflix content is now good for 16% of all piracy traffic.
As the first major legal internet subscription streaming service, Netflix has ushered in a streaming revolution.
The company started competing with piracy early on, presenting itself as a superior alternative. In the early years, the strategy paid off.
Millions of subscribers have abandoned the occasional consumption of pirated content on unlicensed platforms in favor of a convenient and reasonably priced legal alternative. Piracy never went away, but illegally downloading Netflix content seemed silly.
Continuous wars
In the years since, the legal streaming landscape has become more crowded. Inspired by the success of Netflix, new streaming portals such as Amazon, Disney+, HBO Max, Hulu, Paramount+ and Peacock have begun to compete for a share of the lucrative streaming market.
The media often refer to this competition as the “streaming wars”, but the real threat may not come from legal streaming services, but from illegal pirate sites.
The suggestion that “subscription fatigue” might motivate people to start pirating again is not new. We’ve highlighted this issue in the past and it’s been confirmed by research, but now it’s reaching a point where it’s hard for Hollywood to ignore.
Hacking tracking firm MUSO also acknowledges the problem. As well as doing anti-piracy work for major copyright holders, the UK company also helps major players such as Amazon, Lionsgate and Sony understand the latest piracy trends.
Hacking seduces again
In an op-ed, MUSO CEO Andy Chatterley points out that the increased fragmentation of the streaming ecosystem, coupled with higher prices, is starting to make piracy more attractive again. And without the possibility of paying for everything, people are looking for alternatives.
“[F]Faced with an increasingly fractured streaming landscape, the consumer is doing the math and realizing that accessing all the shows they want to watch is not a justifiable expense when their grocery bill has doubled and whether he bikes to work or carpools to save money. fuel,” Chatterley says.
“And in the absence of a one-stop-shop like Spotify is for music lovers, and now that piracy sites have evolved into sophisticated, easy-to-use experiences, people who have never hacked before find it more appealing than before. Everything you could ever want to watch, all in one place, just a few clicks away, and all for free. What’s not to like?
Netflix piracy thrives
Chatterley notes that copyright owners should be aware of this potential change in user behavior, which is supported by data. Earlier this year, Netflix reported that its subscriber numbers had plummeted for the first time in history and piracy continued to grow.
According to data from MUSO, Netflix content was good for an 11.4% U.S. piracy market share in June. Globally, that number is even higher, with Netflix content accounting for 16% of global piracy demand.
“Now imagine if they could convert those pirate consumers into paying customers,” Chatterley comments.
MUSO’s messaging is partly out of self-interest, as the company offers hacking information as a commercial service. This is serious business for Muso. Last week, the company announced that it had secured a $3.9 million investment from Puma Private Equity.
A single streaming solution?
That said, the fact that a company working with multiple Hollywood actors is willing to point out the dangers of too many subscriptions is something. Especially when this company started out as a fairly traditional anti-piracy organization about a decade ago.
Instead of pointing fingers at pirates, Chatterley focuses more on the shortcomings of the TV and movie industry. Piracy can be reduced by offering a single solution at a fair price, but somehow that seems like a pipe dream.
“By offering a service that is both comprehensive and value-for-money, you make hacking much less attractive,” he writes.
“But with content providers investing billions in their platforms and determined to keep their shows exclusive, it seems fanciful. And so the decline in subscribers looks set to continue, with piracy sites continuing to welcome them with open arms,” Chatterley concludes.
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