Home Economy Potential PHL losses to online video piracy estimated at $1B by 2027

Potential PHL losses to online video piracy estimated at $1B by 2027

THE Intellectual Property Office of the Philippines (IPOPHL) said the Philippines could sustain $1 billion in revenue leakage by 2027 if online video piracy is unaddressed.

IPOPHL Director General Rowel S. Barba told reporters in Taguig City Monday that the Philippines lost $781 million in revenue in 2022 due to online video piracy, citing a report by Media Partners Asia issued in March.

“As long as the internet is here, (piracy) will not stop. Piracy will be there and the most affected will be our creatives,” Mr. Barba said.

“It really needs collaboration, which should be global. There should be a global effort since piracy is a trans-border crime,” he added.

The Media Partners Asia report estimated that the Philippines generated $419 million in online video industry revenue for 2022, consisting of consumer subscriptions (57%) and net brand advertising (43%).

“Online video piracy is pervasive, growing to 20 million users in 2022 with revenue leakage of $781 million… If online piracy is not brought under control, the illegal industrial activity could claim 31 million users by 2027 with annual leakage of $1 billion,” the report said.

“The growth and monetization of online video lags due to piracy. Easy access to pirated online video content inhibits the development of the premium video sector, including subscription video on demand (SVOD) and premium advertising-based video on demand (AVOD),” it added.

Mr. Barba said online video products being pirated include Filipino movies and television shows.

He added that the revenue lost to online video piracy deprives the government of taxes.

Mr. Barba added that the proposed Internet Transactions Act would also help in addressing piracy by instilling trust among consumers.

The proposed Internet Transactions Act, filed as Senate Bill No. 1846, is awaiting second reading in the Senate. The bill is sponsored by Senator Mark A. Villar.

“Definitely, the law will help because, at least, it will provide trust in the system. We want consumers to have trust in the system. If the trust is not there, the sector will not flourish,” Mr. Barba said. Revin Mikhael D. Ochave