The world of premium video services, particularly live sports, is facing an "industrial scale theft" due to the lack of action by big tech firms. This article delves into the details of this issue, its implications for broadcasters and users alike, and the role played by major tech companies.
Sports broadcasting has evolved into a massive industry with media rights worldwide surpassing $60bn (£44bn) last year. However, escalating costs have led to higher prices for fans who often subscribe to multiple services to watch their favorite teams play. To circumvent these costs, some resort to illegal streams. According to research conducted by Enders Analysis, there are frequently multiple streams for individual events like high-profile football games. Each of these football streams can attract tens of thousands of viewers. Sky and DAZN executives have warned that piracy is triggering a financial crisis in the broadcast industry.
Illegal streaming isn't just causing financial losses; it's also putting users at risk. Fans watching matches via illegal streams often provide personal information such as credit card details and email addresses which exposes them to malware attacks and phishing scams.
Tech giants under scrutiny
Enders Analysis' report criticizes Amazon, Google, Meta (Facebook's parent company), and Microsoft for their inertia towards this growing problem. While Meta was singled out as a source for adverts promoting illegal streams, Amazon Fire Stick was labeled as "a piracy enabler".
The Amazon Fire Stick plugs into TVs providing viewers with numerous options from legitimate services like BBC iPlayer or Netflix but is also being used extensively for accessing illegal sports streams. In 2021 alone two men from Liverpool were penalized - one jailed while another received a suspended sentence - after modifying Fire Sticks enabling people to illegally stream Premier League football matches which they advertised on Facebook and WhatsApp.
Sky data reveals that 59% of UK residents who admitted to watching pirated material in the past year used an Amazon Fire product. The report estimates that the Fire Stick enables "billions of dollars in piracy".
Role of depreciating tech
The report also highlights the role played by depreciating Digital Rights Management (DRM) systems, particularly those from Google and Microsoft. These technologies facilitate high-quality streaming of premium content to devices.
However, due to a lack of maintenance by these tech giants, DRM systems like Microsoft's PlayReady and Google's Widevine are now compromised across various security levels. This has given piracy an upper hand enabling theft of high-quality content. Researchers Gareth Sutcliffe and Ollie Meir argue for a complete overhaul of technology architecture, licensing, and support model as they believe that the DRM solutions provided by Google and Microsoft are in steep decline after over twenty years since their launch.
The industrial-scale piracy problem is not just causing financial losses for broadcasters but also putting users at risk while undermining trust in big tech firms. It is crucial for these companies to take proactive measures against this issue before it spirals out of control.
