Crushing the $318 billion digital piracy threat

This article is part of our Opinions section.

Global piracy is no longer a shadowy threat lurking on the fringes of the digital world – it’s a multi-billion-dollar behemoth that directly threatens the very foundation of the sports industry. The global cost of digital piracy is forecasted to skyrocket to a staggering $318 billion by 2027, and for live sports, the consequences are already catastrophic. With an annual loss of $28 billion, the sports industry is haemorrhaging revenue that could otherwise be reinvested into developing new content, supporting athletes and creating jobs.

This is more than just an industry issue; it’s a battle for survival. Sports fans who choose pirate services over legitimate ones are diverting billions of dollars from leagues, teams and broadcasters. These illicit platforms are thriving, posing as legitimate businesses, luring audiences with high-quality streams at cut-rate prices. The very real cost is not just in revenue – it’s in the quality of content that fans love, the jobs lost, and the security risks that come with these pirate sites.

Hitting pirates where it hurts: payment disruption

Pirates have honed their business models, generating revenue through subscriptions and ads. To stop them, we need to hit their wallets – hard. Recent studies reveal that even reputable financial institutions like Visa, Mastercard and PayPal are being used to fund these illegal operations, lending them a dangerous veneer of legitimacy. In 2021, 17.3% of pirate sites processed payments through PayPal, while Mastercard and Visa followed closely behind.

The solution is simple: disrupt their payment streams. By blocking these payment gateways and forcing pirates to rely on fringe or unreliable methods, we can cut off their revenue lifeblood. Investing in payment disruption technologies offers a clear and significant return on investment. This isn’t just about protecting existing revenue – it’s about safeguarding the future of sports broadcasting. Broadcasters spend millions securing exclusive rights to live sports, and by ensuring that only paying customers can access this content, the industry can maintain its value and negotiate better deals in the future.

End-to-end payment disruption solutions have already proven effective, helping sports rights holders ensure their content remains exclusive while choking off illegal revenue streams. But we must push harder. Now is the time to invest in technologies like forensic watermarking and machine learning that can monitor and detect payment irregularities in real-time.

Real-time international enforcement cooperation: strength in numbers

While disrupting payment systems is crucial, piracy is a global issue that requires a coordinated international response. Pirates operate across borders, meaning that national efforts alone are insufficient. The key to dismantling piracy lies in cross-border partnerships that unite rights holders, broadcasters, technology companies and law enforcement agencies.

International cooperation has already proven to be highly effective. In recent years, collaborative efforts between industry stakeholders and local enforcement agencies have dismantled significant piracy networks, shutting down illegal IPTV services and preventing billions in losses.

But enforcement must go beyond website takedowns. Technology plays a critical role in making these efforts sustainable. Watermarking and fingerprinting technologies enable rights holders to trace pirated streams back to their source, while machine learning allows for real-time detection of suspicious activity. These tools, combined with international cooperation, form a powerful defence against piracy.

Yet, enforcement is not just about stopping pirates, it’s about setting a precedent. The more aggressively we pursue piracy, the clearer the message becomes: there is no safe harbour for those who exploit creative content. Collaborative efforts must continue to evolve, strengthening the industry’s defences while creating a fairer digital environment for all stakeholders.

The time to act is now

Piracy is not waiting for us to catch up. With the growing sophistication of illegal platforms, we need to take decisive action today. Broadcasters, payment providers, technology companies and governments must unite to disrupt pirate revenue streams and enforce the law on a global scale.

We can no longer afford to underestimate the threat. Payment disruption, technological innovation, and international cooperation must be the pillars of our anti-piracy strategy. The future of live sports – and the industry that powers it – depends on our ability to act swiftly and decisively.

Let’s make piracy a thing of the past and ensure that the next generation of fans enjoys live sports in a secure, fair and sustainable environment.

It’s time to act. Piracy won’t wait, and neither can we.