Rs 22,400 crore scandal revealed, how film piracy scam is devastating the Indian entertainment industry

India.com

21-05-2025

Piracy has been a global issue faced by almost every film industry across the globe. Surprisingly, India is the world leader for online video piracy with approximately 90.3 million users. Second on the list is Indonesia with 47.5 million and the Philippines with 31.1 million users. A report by Media Partners Asia, studied by Economic Times and EY, backed the study.
The Indian film industry has been the victim of online video piracy. Days before a film gets a theatrical release, the film has already been available on multiple pirated sites. Films like Raid 2, Sikandar, Jaat, and many such films fell prey to piracy and were reportedly released a day before the release date.
A senior Maharashtra police officer, during a conversation with ET, highlighted the growing concerns of Indian films being leaked on multiple sites ahead of it's premiere. 'There is a growing trend of movies, especially Hindi and Tamil films, being leaked on the day before the release. In such cases, the role of an insider is suspected,' said the police officer.
Trade analyst Girish Wankhede emphasised the key points where leaking films is likely to be an insider's job. 'Piracy before the day of release of a film implies that it is an insider job… post-production studios, content delivery agencies, and nefarious elements in exhibition companies,' highlighted Girish.
A report by EY-IAMAI Internet and Mobile Association of India (IAMAI) found that a majority of 51 per cent of Indian users consume pirated content. The source was likely to be illegal streaming platforms, mobile apps, social media, torrents, and many more. Most importantly, application like Telegram allows users to download large files, contributing to many pirating of content.
Adding further, Subhash Chandra, chairman Emeritus of Zee and Essel Group, highlighted that 'Pirated content has been one of the quietest sources.' 'Terror networks don't survive on ideology alone. They survive on money, and pirated contents is one of their quietest sources,' said Zee
In a shocking turn of events, a report of 2023 revealed that pirated content alone caused a huge loss of Rs 13,700 crore for theatres and Rs 8,700 crore for OTT platforms running in India. The report further revealed that pirated content has severely affected mid to small budget films. On the other hand, big-budget films manage to cut a deal with multiple streaming platforms despite the content leak.
Many producers assert that their films become a target when there's a buzz during the pre-release of a film. Looking forward to the likelihood of becoming the next target, many turn to online piracy. Although online piracy inflicts a financial drain, it increases public viewership.
To tackle online piracy, industry experts are pushing forward for a 'multi-layered' technology, pushing piracy to the far end.
Trade expert Girish highlighted that companies are building and practicing dividing films into three encrypted parts, which can only be accessed by a password verification. However, this technology is currently under development, but it is likely to prove effective against online piracy.
A company, BLOCK X Technologies, is collaborating with production houses to filter out pirated content with the advancement of Artificial Intelligence. This is likely to help eliminate pirated content with the help of AI bots. This technology is proposed for long-term use in the industry.