Author: Jhanvi Anam
In IGAP’s earlier primer, we mapped the scale of digital piracy in India based on the latest reports and examined the country’s enforcement mechanisms. Findings from these reports showed the persistence and adaptability of piracy networks, despite India’s reasonably strong legal framework. This was, in part, due to the scale, speed, and technological sophistication of modern piracy. The analysis found India’s law-enforcement based approach largely reactive, and called for more proactive steps. This included stronger inter-ministerial coordination, improved detection, and co-regulation to address enforcement gaps.
Supply-side anti-piracy enforcement can be effective in turning users of illegal piracy channels toward paid legal consumption. However, research suggests that the availability and affordability of legal content is equally important. This indicates that legal-enforcement alone is not a comprehensive solution. Addressing the persistent demand for pirated content requires an understanding of user motivations, economic constraints, and the perceived value of legitimate services.
Reasons for Consumer Demand for Piracy
The way audiences consume media has changed dramatically in recent years. Viewers who once relied on movie theatres and DVDs can now access a library of audio-visual content through digital platforms such as YouTube, Netflix, Amazon Prime Video, and Disney+ Hotstar. EY and IAMAI’s Rob Report found that a majority of surveyed viewers had accessed pirated content at least once. The reasons provided by users were interesting and surprisingly practical.
- Managing Multiple Subscriptions: With over 50 OTT platforms operating in India, video-on-demand (VoD) content is spread across a variety of digital platforms. As a result, consumers are compelled to manage multiple subscriptions to access their favourite movies and shows. Not only can this increase the financial burden on subscribers, but it also contributes towards ‘subscription-fatigue’. This may push some viewers toward free or pirated alternatives that offer a broader content library without adding additional costs.
- Demand for content that is unavailable in India: The Rob Report further highlighted that, a second factor for piracy was unavailability of desired content through mechanisms like geo-blocking. This uses IP addresses of users to determine their location and may also be deployed to block access to certain content and enforce territorial limitations. Platforms like MUBI have also pointed out that when global streaming services do not acquire rights to foreign or independent films, audiences are often left with no legal way to access them. In such cases, piracy becomes the only available option for viewers interested in niche or international cinema. Therefore, unavailability of licensed content could limit where a film or show is legally available. The rights to licensed content are often sold by copyright holders under licensing agreements that specify the location of distribution. As a result, content that is available in one region may be blocked or unavailable in another, even on the same streaming service due to expensive licensing or other territorial restrictions.
- Demand for free or cheaper subscription: India is one of the cheapest streaming markets in the world. On average, a monthly subscription costs about USD 3, which is much lower than the Asia-Pacific average of USD 8. However, price-sensitivity remains an important factor. Data from March, 2025 suggests that, for a large share of Indian consumers, even small recurring payments could compete with other essential expenses, especially in lower-income segments. This creates a challenge for platforms implementing Subscription-based VoD business models in the country.
- Ad-ridden content: As mentioned above, viewers are continually seeking cost-saving alternatives. Consequently, ‘freemium’ Advertising VoD platforms often form attractive alternatives to paid Subscription-based VoD platforms, and comprise the majority of domestic viewership. However, repetitive or poor advertising experiences also encourage the turn to piracy for a smoother, ad-free experience.
- Lack of awareness about the legal status of platforms: Piracy operators sometimes go to great lengths to mimic legitimate services, with some users being duped into thinking these websites and apps are legitimate. This problem is compounded by gaps in legal content availability, as discussed above. When users cannot find certain films, older catalogues, or international content on major streaming platforms, they are easily drawn to unlicensed sources that promise instant access. In such cases, users may not always be making a conscious choice to indulge in piracy. They may be simply following the path of least resistance.
The Way Forward
The Impact Report highlighted that India’s digital video market is divided along economic lines, reflecting a tiered digital reality. Platform adoption and viewing preferences differ sharply across income groups. Higher-income households continued to drive the growth of subscription-based VoD, while lower-income users were found to bypass traditional television altogether and shift directly to mobile-first, ad-supported platforms. Advertising-based VoD content thrives in markets where disposable income is limited or where paying for multiple subscriptions feels like an added burden.
However, the outlook for India’s SVoD market and piracy mitigation is not entirely bleak. The purchasing power of households appears to be rising. The United Nations’ Department of Economic and Social Affairs 2025 Report has observed that India remains one of the fastest-growing large economies, supported by resilient consumption and government spending, with forecasted GDP growth of 6.3 per cent in 2025. Notably, India is on track to reach a GDP of ₹4,26,45,000 crore (USD 5 trillion) by 2027, overtaking Germany by 2028. By 2030, it is projected to emerge as the world’s third-largest economy in nominal terms with a GDP of US$7.3 trillion. This may result in a per capita GDP approaching USD 5000. This may offer the sector some relief from cost pressures and suggests a more stable consumer base with disposable income for digital subscriptions in the near future.
Further, EY’S Shape the Future Report estimated the Media and Entertainment sector to grow at a CAGR of 7% to reach INR 3.07 trillion (US$36.1 billion) by 2027. The relationship between economic development and piracy rates has been a matter of academic study. Researchers have observed that the first determinant of access to media markets is income, and that countries often grow themselves out of high piracy levels, as the number of high-income consumers increases. Correspondingly, formal markets are able to crowd out informal ones. This insight connects directly to India’s evolving streaming ecosystem, where rising incomes could gradually reduce dependence on pirated content towards legitimate and premium digital services.
Finally, the impact of new and disruptive consumption trends should also be accounted for. The Impact Report noted that demand was shifting toward original, regional, and mobile-first content, as audiences move beyond traditional film and television formats. Recently, Arun Srinivas, Managing Director and Head of Meta India, observed that younger audiences were processing content nearly three times faster than previous generations, driven by short-form media such as micro-dramas and AI-generated creatives. This rapid evolution of new content formats may challenge existing business models and legal enforcement mechanisms alike. It compels the industry to adopt more adaptive, audience-centric approaches to address piracy approaches that account not only for enforcement, but also for the way digital consumption itself is changing.
