New research from BeStreamWise, the cross-industry consumer campaign against illegal streaming, has revealed that illegal streaming is costing the UK economy at least £1.35 billion in lost revenue every year.

According to the “The Price of Piracy” report commissioned by the campaign and carried out by WPI Economics, this figure is the equivalent of 10,400 fewer jobs, including more than 4,000 in broadcasting and media production.

The findings are significant for two reasons. Firstly, they strengthen the evidence available to FACT and our partner organisations working to tackle content theft by providing a clearer picture of the financial damage done by illegal streaming in the UK.

Secondly, the research highlights the impact on the people who make the films, television programmes and sports coverage that audiences value. Lost revenue can reduce investment in new productions, with implications for the businesses and people behind Britain’s highly valued sports programming as well as our best-loved cinema and TV shows.

Risky business

The report also highlights how widespread illegal streaming is in the UK. In a survey of 2,501 consumers, almost one in three UK adults surveyed reported accessing content through methods the research classified as illegal streaming in the preceding three months. The report extrapolates this to approximately 16.8 million adults across the UK.

“The high level of illegal streaming highlights a common misconception that it isn’t really a crime, and the people doing it aren’t breaking the law,” says Nick Sumner, Investigations Manager at FACT.

“Nothing could be further from the truth. Illegal streaming can involve offences under fraud and copyright legislation, and people who do so risk criminal prosecution. What’s more, illegal streaming depends on a chain of people who promote, sell and provide access to unauthorised content. These new figures expose the impact of this chain both on everyday livelihoods – particularly in the UK’s prized creative economy – and on individual users.

“It’s not just about suppliers,” Nick continues. “Anyone who purchases access to so-called ‘loaded’ Firesticks or similar illegal subscriptions can face criminal prosecution in the UK. I don’t think consumers are always aware of the risk they’re running by buying illegal content.”

Community cost

There are wider implications to illegal streaming, too. The new insights from WPI Economics estimate that the Exchequer loses £366 million a year in tax revenues. The report compares that with the cost of more than 9,000 qualified NHS nurses or 140 million free school meals.

The impact does not stop there. According to the research, three in five active illegal streamers access live sports. Broadcast revenues help support professional competitions, community investment and emerging young players in the sports industry. Reduced income can limit the funding available for those activities.

An even larger proportion of active illegal streamers, almost nine in 10, access unauthorised film and TV content. Lost revenue can reduce investment in new programmes and productions, affecting opportunities throughout the creative industries. The report highlights how the effects of piracy extend to production crews, independent businesses and others whose livelihoods depend on the sector.

Then there’s the added risk of malware and fraud faced by people accessing pirated content. UK law enforcement has warned about links between illegal streaming and organised crime. The report estimates that UK consumers spend £1.2 billion a year accessing films, TV and sport illegally, helping to fund organised crime.

Using illegal streaming services can also expose users to malicious software capable of infecting their devices, stealing sensitive information such as financial details, and enabling identity theft.

Push for government action

BeStreamWise is calling for coordinated government and industry action on content piracy to help protect creative industry jobs and consumers at risk from scams.

The initiative brings together partners across broadcasting, film and sport, including FACT. It is proposing measures to make illegally streamed content harder to access and increase awareness of the risks associated with piracy.

Matt Hibbert, Group Director Anti-Piracy at Sky, says: “Illegal streaming isn’t a victimless crime. It takes money out of the creative economy that would otherwise support investment in British television, film and sport, while exposing consumers to fraud, scams and identity theft.

“This report shows the scale of what is being lost to piracy and why Government and industry need to work together to protect British creativity, jobs and consumers.”

The campaign’s proposals include government support for consumer awareness initiatives and closer cooperation between platforms, connectivity providers and content services to reduce the availability of illegal streams.

“This new data from WPI Economics shows just how serious illegal streaming is,” says FACT’s Nick Sumner. “Nearly a third of UK adults use pirated content, with a direct impact on the economy and local communities, not to mention job loss and exposure to fraud. That’s why, as a BeStreamWise partner, we fully endorse the drive for a crackdown led by Westminster.”

For more information, visit BeStreamWise or find out about FACT’s IP Protection services.