Paid subscriptions are the lifeblood of streaming platforms, fueling everything including the acquisition of premium content and production of original content, investment in the technology needed to ensure smooth and secure delivery. However, Piracy undermines and reduces the companies’ ability to acquire content, and revenue and recoup investments.
There are many effects of piracy on streaming services. Today, revenue loss is one major problem that all online entertainment businesses are struggling with. Streaming services like Netflix, Disney+, and Showmax rely heavily on paid subscriptions, but piracy siphons off a significant portion of their audience, with users opting for illegal platforms that provide free access to copyrighted content. This leads to a reduction in legitimate subscribers, cutting into companies’ potential earnings. According to GO-Globe, a market leader in Corporate Web Applications, it notes that more than 141 billion visits globally were made to piracy websites in 2023-2024.
“Piracy leads to increased costs for businesses because they will have to invest for them to protect their content,” notes Owas Ray Mwape, Filmmaker and Actor. In most cases, streaming companies are forced to invest heavily in anti-piracy technologies and efforts to protect their intellectual property. The problem with this is that these expenses meant to safeguard their content, eat into their profit margins.
The other challenge created by piracy is content devaluation. Piracy devalues exclusive content. Platforms invest millions in producing original shows and films, banking on the fact that they can attract and retain subscribers. However, content becomes readily available on pirate sites and loses its exclusivity, weakening the value proposition for paying customers. “Piracy affects the competitive advantage of online streaming businesses, making it harder to justify premium prices and attract new subscribers,” said Chibwe Katembe, a stand-up Comedian and Actor.
As piracy continues to bite into profits, online companies may struggle to justify spending large sums on content creation. The streaming wars, characterized by fierce competition among platforms to acquire or produce high-quality content, will depend on a continuous stream of investment.
Piracy undercuts the return on these investments, potentially leading to scaled-back budgets, which in turn impacts the variety and quality of offerings available to subscribers.
Mwiche Chikungu, Assistant Director, of Performing and Literary Arts at National Arts Council National Arts Council (NAC) believes piracy has affected streaming companies’ brands and damaged trust and Integrity. “Piracy has affected the reputations of companies because the prevalence of pirated content has led to inconsistent user experiences, diminishing the overall value of content creation in the public eye,” says Mwiche.
Streaming companies such as MultiChoice, with its Showmax platform, continue to emphasize the need for heightened public awareness of the dangers of piracy, including the loss it creates for the industry and the jobs it threatens.
Today, initiatives like Partners Against Piracy (PAP), continue to educate consumers and tackle piracy through coordinated efforts with governments and regulators. PAP has taken initiatives as a means of mitigating the effects of piracy. However, without much involvement by other players especially in the creative space to fight piracy, the negative impact on online streaming companies might persist.
