Illegal streaming is estimated to be costing the UK economy around £1.35 billion every year, with new research suggesting almost one in three British adults have recently accessed pirated content.
The figures come from The Price of Piracy, a new report produced by WPI Economics and commissioned by anti-piracy initiative BeStreamWise.
The research estimates that around 16.8 million UK adults have used illegal streaming services during the previous three months.
That represents close to one in three adults and highlights the enormous scale of unauthorised access to television, films and live sport across the country.
The economic impact is estimated at approximately £1.35 billion in lost revenue each year.
Live sport accounts for around £700 million of the estimated losses, while illegal streaming of television programmes and films is estimated to account for another £653 million.
The report says the consequences extend considerably further than broadcasters and subscription services losing customers.
Researchers estimate the reduction in economic activity is equivalent to around 10,400 fewer jobs across Britain.
Around 4,200 of those jobs are estimated to be within broadcasting and media production, with another 6,200 across connected sectors including advertising, publishing, retail and the wider creative economy.
The Exchequer is also estimated to lose approximately £366 million in tax revenue every year because of illegal streaming.
According to the research, that amount of money would be sufficient to fund thousands of public-sector jobs or millions of school meals and childcare hours.
The findings challenge the perception that internet piracy is predominantly an issue involving people attempting to watch live football without paying for an official subscription.
Film and television piracy represents a substantial proportion of illegal streaming activity, with nearly 90% of people identified as active pirates accessing non-sport content.
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The report has been supported by organisations across the broadcasting and entertainment industries, including Sky, the BBC, Premier League and Formula 1.
BeStreamWise is calling for greater cooperation between government, broadcasters, rights holders and technology companies to make illegal streaming services harder for consumers to find and access.
The organisation also wants greater public awareness of the wider risks associated with using unauthorised streaming services.
Previous BeStreamWise research has highlighted the risk of malware, scams, identity theft and financial fraud when consumers visit illegal streaming websites or install unofficial applications and devices.
Unlike legitimate streaming platforms, illegal IPTV services and modified devices can be operated by individuals or networks without the consumer protections normally associated with regulated businesses.
Authorities and rights holders have increasingly targeted people supplying illegal streaming services rather than concentrating enforcement action on individual viewers.
Police and anti-piracy organisations have conducted a number of operations against IPTV suppliers in recent years, including seizures of computer servers and prosecutions involving businesses selling unauthorised access to premium television and sports channels.
Sir John Whittingdale MP, chair of the All-Party Parliamentary Group for Intellectual Property, said the findings demonstrated that piracy represented a significant threat to Britain’s creative industries and called for action to protect investment and employment.
Sky’s Group Director of Anti-Piracy Matt Hibbert said revenue lost through piracy would otherwise help support investment in British television, film and sport.
The latest figures underline how illegal streaming has developed from a relatively niche form of internet piracy into a major commercial issue affecting broadcasters, sports organisations, taxpayers and consumers across the UK.
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Sources
Advanced Television – Report: Illegal Streaming a £1.3bn Economy Blocker
Financial Times – Illegal Streaming Costs UK £1.4bn a Year, Broadcasters and Sports Bodies Warn
