Tag Archives: global piracy

Reports Reveal Global Piracy Fueled By U.S. Advertising Income

Piracy sites around the world continue to profit from U.S. advertisers of all sizes, according to new reports released this month by Incopro (report link) and the Digital Citizens Alliance (DCA – report link).

The former reveals that 88 percent of all income from content theft in the European Union (EU) is based on advertising revenue, while the latter from DCA confirms that global piracy sites still make more than $200 million every year from the ads they display to users.

 

Incopro studied the top 250 piracy sites used in the EU to come up with their headline figure. With almost 9 out of 10 of those sites relying on advertising as their primary source of income, it’s clear that ad money is the main reason for site owners to engage in content theft. In-demand music, movies and games yield more search traffic, which in turn yields more page views and clicks that translate to advertising income.

The DCA report provides more detail about what’s going on under the surface of the advertising ecosystem to allow this to happen.

Good Money Still Gone Bad follows up on the organization’s 2014 report, which valued the revenue from ads to piracy sites at $227 million. The new figure is slightly reduced, yet still in excess of $200 million and failing to show the substantial decrease that actions against global piracy should have yielded.

Global piracy ad funding infographic

 

With regular raids against such sites around the world and major action against leading players like The Pirate Bay, we should expect to see fewer piracy sites for advertising funds to flow into. Although larger sites made up a smaller percentage of the overall sample in this year’s report – and 40 percent of those from the previous study were no longer present – the overall revenue from content theft remained remarkably durable.

A large part of this comes from new sites entering the fray, particularly video platforms engaged in live-streaming. This occurs in real-time and can be very hard to track and shut down in the moment, which is obviously when broadcasting a live event is most profitable to pirates. The recent Mayweather-Pacquiao fight provided a troubling example of this, particularly on new (and ostensibly legitimate) platforms like Meerkat and Twitter’s Periscope. With the incentive to make money from ads and new, poorly regulated platforms through which to do it, it’s clear to see that initiatives against global piracy will need to cast a wider net in the coming years.

Taken together, these two reports provide a clear view of the ad-funded piracy problem. Incopro has shown that advertising is the key incentive for pirates to run their sites, while the Digital Citizens Alliance reveals the types of sites that are springing up and the big U.S. brands that are indirectly funding it.

Cutting off this supply of “bad money” and returning it to the pot for legitimate content sites will be a crucial part of the next moves to tackle global piracy. We can continue to play whack-a-mole with content takedowns and site raids, which is satisfying in the moment but ultimately a short-lived victory as other sites pop up to replace them. Remove the financial incentive, however, and we’ll see how many sites are willing to take the risk of running a site based on stolen content.

Geo-dodging Thrusts VPNs Into the Global Piracy Debate

Earlier this year we looked at the growing trend of geo-dodging, a process whereby a user in one country can use a server in another country to access content with geographical release restrictions.

The act uses virtual private network (VPN) providers to bypass the online footprint that would otherwise flag their general location and raise the access limitations requested by rights holders.

 

Up to now, geo-dodging has been a secondary concern in the fight against piracy. Now, though, we see cases in New Zealand of television companies threatening to sue VPN services, bringing the trend to the front of technology and intellectual property headlines. Four of New Zealand’s most prominent media companies, SKY, TVNZ, Lightbox and MediaWorks, have joined together to deliver warning letters to VPNs and the internet service providers (ISPs) who enable their user activity.

While geo-dodging has frustrated companies like Netflix, which is known around the world but not available in all major markets, the greater focus has been on fighting direct piracy activity, such as unlicensed file-sharing, torrents and pre-release leaks.

Users getting around geographical content restrictions fell further down the list for two reasons: 1) the technology to accomplish geo-dodging was either not widely available to, or understood by, a majority of users, and 2) often it involves a paying subscriber in one country, so at least there is a sense that content is paid for, even if it isn’t authorized.

In other cases, such as US residents accessing the BBC’s UK-based iPlayer service, the issue is further blurred by the fact that the state broadcaster does not directly charge for its platform, though British tax payers do fund the organization as a whole. At its most basic, though, viewers are accessing content that wasn’t intended for their market, wrenching control from rights holders, and therein lies the problem.

As VPN apps become more common, so geo-dodging on legitimate content platform becomes more of an issue for anyone hoping to license their content to others.

As this practice grows into the public consciousness, it comes back to the very simple concept that content creators and rights holders have the right to choose where and when that content appears. The fundamentals of the licensing system – the market place through which creators can set a value for their content and allow others to use it based on demand, or simply artistic vision –  require that restrictions are respected by broadcasters, intermediaries, and viewers alike.

Though broadcasters and legitimate intermediaries tend to respect those restrictions and, indeed, pay a premium when they want to remove them, piracy facilitators and viewers . VPNs will have to decide which side of the fence they’re on, and how long they can play the privacy card before the weight of intellectual property law gives them a more serious problem to deal with.