
By: Jack Dorsey
The arrival of internet streaming revolutionized consumers’ access to their favorite shows, movies, and music. It also significantly impacted physical media, media rentals, and traditional cable subscriptions. In response, traditional broadcasters and nontraditional media companies like Amazon entered the streaming space. Each offered affordable and typically ad-free experiences that made access to a consumer’s preferred content affordable, accessible, and convenient. Whether it was movies, TV shows, music, or live sports there was something out there for most people. These streaming services also reversed the trend of internet piracy.
In the early 2000’s, internet piracy was facilitated by websites like Napster and Limewire, which enabled internet users to conveniently download free music illegally, causing a sharp decline in music sales. Music sales peaked at over $25 billion in 1999 but were then halved over the next fourteen years due to piracy. However, the emergence of streaming services like Spotify and Apple Music helped stabilize this decline. Between 2022 and 2023, recorded music revenue rose 10.2% year over year, bringing the industry total to $28 billion dollars, with streaming subscriptions now exceeding 500 million globally. Despite this, music piracy remains a problem as traffic to music piracy websites increased by 13% in 2023.
While the TV and movie industries have experienced less dramatic shifts in revenue, streaming options also had an initially positive impact combating online piracy. A report released by the European Intellectual Property Office indicated that between 2017 and March of 2021, the European Union and its member states saw an overall decrease in internet piracy across the board. However, that trend reversed in 2022, primarily driven by illegal streaming and download of TV shows which rose 14% between 2017 and 2022. While there is not a clear explanation of this trend, theories span from the Covid-19 pandemic (studios debuting new shows and movies straight to their respective platforms, enabling easy upload to the wider internet), to inflation, and to the number of subscriptions required to access relevant content.
Online sentiment seems to indicate that people’s willingness to pirate content is driven in part by an increasingly crowded and expensive streaming space that has begun to deliver a lower quality product and user experience. For example, many people find themselves needing multiple subscriptions to keep up with the content they want to see. A Dr. Who fan living in the United States would need several subscriptions to watch the entirety of the series. Similarly, a fan of the NFL who wants to watch every game would need six different subscriptions to do so. Moreover, platforms like Disney+, Netflix, and Paramount + have all incrementally increased their subscription prices in recent years and introduced cheaper subscription tiers with advertisements.
As the tide of piracy continues to erode the revenue of the entertainment industry, some businesses have pursued legal action against internet service providers (ISPs). In February of 2024, fifty music labels sued the ISP Cox Communications in one of the largest ever intellectual property lawsuits. The labels argue that Cox should be held liable for online piracy committed by its customers, and they claim that by continuing to provide service to repeat infringers, Cox enabled and profited from the illegal downloading of music. The 4th Circuit Court of Appeals agreed that Cox had aided in the infringement by not addressing piracy by its customers, but ordered a new trial to reassess the damages awarded. In response, Cox has petitioned the Supreme Court, arguing that the case is part of a broader trend of lawsuits targeting ISPs. Cox claims that without intervention, such legal actions could threaten internet access for all users. While the outcome remains uncertain, if piracy continues to harm media companies’ profits then legal pressure on ISPs is likely to grow, leading to more lawsuits in the future.



