Increasingly, people are canceling their expensive cable subscriptions, opting to use cheaper Internet TV instead.
While there are plenty of legal options available, there's also a broad offer of easy-to-use set-top boxes, sites, and apps that are specifically configured to deliver pirated content.
There are some free alternatives, but high-quality pirate IPTV services are often sold through a monthly or yearly subscription. This has created an industry that's worth a lot of money. According to a new report from the EU Intellectual Property Office (EUIPO), nearly €1 billion in Europe alone.
This is the result of an in-depth study of the IPTV ecosystem published by the EUIPO this week. The research reveals the prevalence of IPTV piracy, who the main players are, how they operate, and what business models are used.
EUIPO looked at hundreds of allegedly illegal IPTV services and combined this with data from the Eurostat household survey data. Based on these figures, it estimates that pirate IPTV services generated €941.7 million annual unlawful revenue in the EU during 2018.
The research further finds that IPTV piracy is a problem across all EU member states. On average, 3.1% of the EU population access these unauthorized services. This translates to a customer base of 13.7 million users.
However, the scale of the problem varies from country to country. The Netherlands and Sweden have the highest percentage of pirate IPTV users, with 8.9% and 8.5% respectively. In Romania and Bulgaria, it's far less common with 0.7% and 1.3% respectively.
The average subscriber pays a little over five euros per month for a subscription, with rates varying across Europe. Most revenue is generated in the UK, France, and Germany. Together these three countries deliver more than half of the total income, €532 million.
These statistics show that IPTV piracy is a major problem. EUIPO acknowledges this and provides a detailed overview of various actors in the ecosystem, as well as the legal remedies and enforcement options that are available.
EUIPO's definition of IPTV appears to be quite broad, as cyberlockers and the BitTorrent-powered Popcorn Time are mentioned as well. In general, however, most traditional IPTV services rely on direct streaming feeds and playlists.
Regarding enforcement, EUIPO points out that EU law provides the means to go after developers, operators, and vendors of infringing services. Through civil and criminal actions against the alleged offenders, for example, or website blocking injunctions.
In addition, facilitators could technically face legal problems as well. This includes blogs and YouTube channels that show people how to configure pirate devices, for example.
"Depending on the level of involvement in the provision of illegal services, the facilitator can be co-liable for IPR infringement and can be prosecuted for aiding and abetting," EUIPO notes.
Whether individual IPTV users can be easily targeted remains an open question. According to EUIPO, requiring operators of illegal IPTV services to disclose information on their users could be incompatible with EU data protection law.
The study is the most elaborate research into the illegal IPTV market to date. While it doesn't arrive at any concrete recommendations, EUIPO's Executive Director, Christian Archambeau, believes that understanding the ecosystem will help to raise awareness.
"This is a market area in which infringing business models change quickly as they adapt to new technology and business opportunities. This research clarifies the technology used, the complex supply chains and legal issues.
"It also casts much-needed light on a hidden area of an everyday activity, which is being exploited by organized crime, and should help raise awareness among EU citizens," Archambeau adds.
In addition to the IPTV study, EUIPO also released new data on the use of pirated content in EU countries. This reveals that there was a 15% decrease from 2017 to 2018. Music piracy, in particular, dropped very fast, 32% on average across the EU
If US-based anti-piracy groups needed a recognizable local icon to rival the flamboyance of Kim Dotcom, last week they appeared to get one.
Omar Carrasquillo – better known by his YouTube name OMI IN A HELLCAT – is the founder of 'pirate' IPTV service Gears Reloaded. Unlike his counterparts behind similar platforms, however, OMI never hid the fact that he was running one of the most recognizable brands in the business.
OMI's wealth, which included a huge house, the most blingy of jewelry, and a supercar collection to die for, was paraded all over his YouTube channel for everyone to see. But last week it came to an abrupt end. Gears Reloaded unexpectedly closed down and hours later OMI claimed he'd been raided by the FBI and IRS, allegedly for copyright infringement and tax offenses.
When compared to any of OMI's previous videos, his demeanor made it clear that something catastrophic had happened. Nevertheless, in the absence of any confirmation by the FBI, some people complained that the whole thing was an elaborate fake designed to generate clicks.
Today, following a TV report from Fox 29, any notion that the raid existed only in OMI's imagination has been dispelled. In the segment, a Fox 29 reporter is seen knocking on OMI's front door, a home that was previously owned by former Philadelphia Phillies shortstop, Jimmy Rollins.
While the TV crew appears to have received no answer, the channel did manage to speak with some of OMI's neighbors who confirmed what the YouTuber had been saying all along.
"[The FBI] had like bullet-proof vests on and they had guns drawn and they were very slowly approaching the house next door," said neighbor Liz Ware.
In respect of OMI's supercar collection, which some doubters claimed were either still sitting outside or had even been moved by OMI for effect, another neighbor who saw the whole thing recalled what happened.
"They loaded them off one by one through the course of about four or five hours," said witness John Ware, who appears to be OMI's next-door neighbor. "They took all the cars. Probably thirty of them."
Other than OMI's claims, that the case against him revolves around Gears Reloaded and tax issues, there is still no official confirmation of the allegations against him.
Last week the FBI refused to confirm or deny any operation and after prompting by Fox 29 yesterday, still declined to comment. It's believed, however, that OMI is yet to be charged.
Interestingly, in a video posted to YouTube a few hours ago by OMI himself, which shows part of the Fox 29 report, the YouTuber said that just a few weeks ago his people asked the IRS "if they were after him" and he was told they were not. However, he's certainly not happy with the way his accounts were prepared by his tax advisor.
"Back in September when I prepared my taxes, it just didn't look right. I'm a 100% sure of this, I have 100% proof. I'm not just saying it, it just didn't look right. My CPA [Certified Public Accountant] …she had access to all my bank accounts. She was only filing the 1099 [forms] that I received and shit didn't look right," OMI says.
"I [said] 'i'm making more money than what you're filing'. Thank God I didn't sign them because that would've been hiding money, that would've been way worse, way worse. We contacted the IRS to see if they were after me, the IRS sent back a letter to my CPA and said no, they weren't after me."
OMI says that if he hadn't been raided last week, there would be a payment plan in place by now, with around $2 million paid upfront in taxes and the rest paid in installments. Clearly, however, time had already run out and according to OMI, the assessment that streaming is something that won't be acted on probably doesn't stand anymore.
"To all the other streaming services out there, this is proof that this is not considered a great area," he adds.
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