From leaks to locks: Ensuring piracy-free OTT content to maximise advertising ROI

The digital revolution has undeniably transformed how audiences consume entertainment, with over-the-top (OTT) platforms emerging as a dominant force. Yet, alongside this growth comes a shadow—the persistent and pervasive threat of piracy. India, a booming hub for digital content, is especially vulnerable.

With piracy accounting for a staggering INR 22,400 crores (Source: EY India) in economic losses in 2023, it has become a formidable adversary to the media and entertainment industry. For the advertising, marketing, and creative sectors, this poses unique challenges, as the financial drain caused by piracy undermines investments in original content and creative campaigns.

A threat to creative stakeholders

Piracy isn’t merely an economic issue; it is a multi-dimensional threat that undermines creative integrity, hampers industry growth, and impacts government revenues. For marketers and advertisers, the implications are profound.

Pirated content often bypasses legitimate advertising channels, resulting in missed opportunities to engage with audiences and reduced campaign RoI. The Robb Report (October 2024) released by the Internet and Mobile Association of India (IAMAI) and EY reveals that potential GST losses from piracy in 2023 alone were estimated at INR 4,300 crores, a significant blow to economic resources that could have funded broader creative initiatives.

Streaming has emerged as the largest source of pirated content, contributing to 63% of the problem. Mobile apps, torrent platforms, and even social media contribute to the remaining share. Factors such as high subscription costs, fragmented content availability across platforms, and user reluctance to pay for entertainment exacerbate this issue.

Notably, 70% of consumers admitted they preferred not to purchase OTT subscriptions, and 64% expressed willingness to endure ad interruptions if provided free authorised content. For creative professionals, this highlights a pressing need to rethink distribution and engagement strategies to counteract the allure of pirated platforms.

Insufficiency of traditional measures

The rapid proliferation of illegal streaming services and easier access to pirated content through advanced technologies have rendered traditional anti-piracy measures ineffective. Outdated content protection methods, such as basic encryption or geo-blocking, can no longer keep pace with determined pirates who exploit vulnerabilities in systems and user behaviours.

Moreover, the fragmented approach—where each OTT platform implements its own isolated measures—lacks the comprehensive capability to address a problem of this magnitude. For advertising agencies and marketing professionals, this disjointed effort limits the ability to leverage digital ecosystems effectively. When unauthorised platforms dominate consumer attention, it creates a disconnect between content, brand messaging, and audience interaction.

Protecting digital rights

Digital rights management (DRM) solutions emerge as the linchpin in the battle against OTT piracy. For the creative industries, DRM is more than just a technical safeguard; it’s a business enabler that secures revenue streams while enhancing audience trust.

DRM protects digital content through encryption, access control, and robust licensing mechanisms. By integrating DRM, content creators and distributors can ensure that their intellectual property remains secure while offering legitimate viewers a seamless experience. For brand advertisers, this means reclaiming lost opportunities by ensuring that campaigns reach their intended audiences on legitimate platforms.

DRM employs advanced encryption protocols to safeguard content from production to delivery, making intercepted files unreadable without authorised decryption keys. It incorporates dynamic watermarking, embedding invisible yet traceable identifiers into the content.

This allows for the identification of content leaks and ensures accountability—an essential feature for high-value creative projects. Adaptive licensing within DRM systems offers fine-grained control over how content is accessed—whether through pay-per-view, subscriptions, or ad-supported models—aligning with the expectations of marketers and consumers alike.

Lastly, DRM restricts content playback to authorized devices, curbing unauthorised distribution and playback. For advertisers and marketers, this secure environment enables the development of innovative ad formats and partnerships, driving greater impact and engagement.

Collaboration and innovation

While DRM is a powerful weapon, combating piracy requires a concerted effort from all stakeholders. Government bodies, industry players, and consumers must unite to address the root causes of piracy and establish a resilient ecosystem. Stronger enforcement of anti-piracy laws is imperative.

With 62% of pirated content (Source: The Rob Report) consumers agreeing that stricter enforcement is necessary, governments must invest in advanced monitoring systems and collaborate with platforms to curb illegal activities. For marketing and advertising sectors, these partnerships can pave the way for shared standards and better accountability across digital platforms.

OTT platforms, on the other hand, must shed their siloed approach and work collectively to implement standardised DRM protocols. Partnerships with cybersecurity firms and watermarking solution providers can further enhance protection mechanisms.

Exploring innovative business models, such as ad-supported free content, can attract price-sensitive consumers who would otherwise turn to pirated sources. These models, combined with targeted advertising strategies, create opportunities for brands to engage users in a meaningful way while supporting content creators.

Furthermore, educational campaigns highlighting the negative impact of piracy on creativity, employment, and the economy can help shift consumer attitudes. Empowering viewers with affordable and flexible content options, alongside accessible authorised channels, bridges the gap between demand and supply while reinforcing trust in legitimate platforms.

Future of the creative economy

The Indian entertainment industry is poised for exponential growth, with filmed entertainment expected to reach INR 14,600 crores by 2026. However, this trajectory is contingent on mitigating the piracy menace.

For the advertising, marketing, and creative sectors, this is not just a challenge but an opportunity to lead the charge in transforming the digital content landscape. DRM solutions provide a robust foundation for protecting content, but their true potential lies in integration within a larger, collaborative anti-piracy strategy.

The battle against piracy is as much about technology as it is about mindset. By aligning consumer needs with innovative protection methods and fostering a culture of compliance, the industry can transform piracy from an insurmountable challenge into a manageable obstacle.

For advertisers and marketers, this means reclaiming lost ground and building stronger connections between brands and audiences. The stakes are high, but so is the potential to shape a thriving, piracy-proof future for digital entertainment—one that empowers creators, safeguards investments, and drives lasting impact for all stakeholders in the creative economy.

— Siddhant Jain, co-founder and CEO, VdoCipher