Sony Pixel Power calrec Sony

FOCUS ON PIRACY: INSIDE THE MIND OF A PIRATE - PART 2: HOW THE PIRATE ECOSYSTEM WORKS

15/05/2023

If you've read the first part in this blog series, you'll be aware that NAGRA recently interviewed a pirate to gain first-hand insight into the motivations, methods and results of pirate activity. If you missed part one, where I explored a pirate's human motivation, you can catch-up here.

The Hidden Foe in Plain Sight

Today's video streaming landscape is heavily fragmented. Multiple services all offer specific content and if you're after a particular genre of content, no matter how niche, there's a service for you. However, this increased competition among service providers is not the end of the story. Hard pressed consumers are also sourcing their favorite content from pirate services - meaning legitimate services are competing with their pirate foes.

In the smartcard era, faced with complex hardware-based cryptography, piracy was technically complex although, as the pirate points out, the overheads were low. A simple script did the job and when a vendor countermeasure was deployed, the same script needed updating. Fast forward to the IPTV/ streaming era and the situation is different.

Pirates are now software experts and have larger overheads, estimated to be about 30% of their revenue'. Equally, we learn that they have their own, hard to come by datacenters that can handle the illegal traffic being routed through them. At a technical level, the pirate industry has a cast of contributors that rivals those of the premium content they seek. Originally it was a technical exercise to just access the content. The pirate told us, I thought I can write website code, I can modify that script, I'm going to have my own website.' This has subsequently expanded with the average pirate network relying on business, marketing and technical professionals through which to create highly realistic services that lure consumers in with a promise of low prices and infinite levels of content.

If You Can't Stand the Heat...

Today's pirate enterprises can be vast in size. Often starting as a simple website that has 1,000 subscribers, they can scale to become major organizations. They grow through syndicating services (for a percentage of revenue) to resellers who in turn sell to more subscribers. This means a single pirate enterprise can quickly support tens of thousands of subscribers. When this is scaled further, some of the largest pirate organizations support millions of subscribers through the same approach. However, the pirate is quick to point out that with scale comes pressure - both financial and legal. Put another way, the larger your pirate enterprise gets, the more it costs to run and the more attention it receives from anti-piracy organizations who represent an industry intent on stopping this illegal activity. Success, the pirate tells us, depends on the level of heat you can bear. He mentions that large pirate IPTV organizations with full marketing organizations simply imploded as they couldn't handle the external industry pressure. That's good news for the industry as it shows deterrent and investigative techniques deliver results. But what about the smaller providers that may be operating under the radar?

The Barber Shop Guy

If subscribers don't engage with pirate services online, they're just as likely, we learnt, to purchase services at local outlets such as their local barbershop or corner store. Pirates build distribution networks which rely on effective marketing and the re-sellers often have scant knowledge of what's technically going on under the hood. This is deliberate as if the marketing end of the operation gets shut down, the technical operations can re-launch elsewhere. This means that your average barbershop or corner store can be selling multiple pirate services and can quickly adapt if they need to. One example is the KboxServ operation in Switzerland that sold boxes for $160 through retail stores and was successfully shut down through a Canal+ and NAGRA operation.

Pirate Business Models

In the main, pirates make money from selling too-good-to-be-true offers for illicit gain. Within the pirate economy however, there are a multitude of business models driven by a pirate's motivation. Some are experts in a particular group of channels and undertake to always keep them on-air'. Some focus on re-selling to others and take a percentage of the re-sellers' revenues. Others front the pirate service with highly functional websites that may even include subscriber support options. Then there are those who blend broader cybercrime with piracy. Here, as part of the subscriber's service enablement they will also deploy hidden malware onto devices which mine identity and financial information that's then traded on the dark web. We also asked if, given all the different approaches, pirates competed. They do and we were surprised to learn that this also includes pirating pirate content which in the streaming era is a lot more commonplace than it was in the smartcard era; largely due to how accessible content is. Each of these approaches demonstrates the scale of the pirate ecosystem intent on damaging our industry. In other words, the services that are advertised on the internet are the tip of the pirate iceberg.

Intelligence-Led Investigations

In looking at the motivations and ecosystem of a pirate, it's clear that the deterrent offered by the industry today does deliver results. Solutions such as forensic watermarking and anti-piracy intelligence help to heap the pressure onto pirate organizations who, as the pirate explained, may simply implode under the pressure. However, for those that don't, different approaches are required.

NAGRA Anti-Piracy services are designed to generate intelligence on pirate operations, explore the
LINK: https://dtv.nagra.com/focus-piracy-inside-mind-pirate-part-2-how-pirat...
See more stories from nagra

Most recent headlines

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 2026

January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026 Throughout the week, Dolby brings to life the latest innovatio...

02/05/2026

Dalet Flex LTS Delivers Smarter Search, Faster Editing, and an AI-Ready Foundation for Modern Media

Dalet, a leading technology and service provider for media-rich organizations, t...

01/05/2026

NBCUniversal's Peacock to Be First Streamer to Integrate Dolby's Full Suite of Premium Picture and Sound Innovations

January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...

04/04/2026

Don't Be Lame: Arizona Men's Basketball Social Team Aims To Catch the Attention of Wildcats Fans

The University of Arizona's Men's Basketball team has only loss twice th...

04/04/2026

HDR Makes Its Men's Final Four Debut as CBS Sports and TNT Sports Collaborate on New Camera Tools and an IP-Powered Compound

1080p HDR arrives, a new generation of storytelling tools takes center stage, an...

04/04/2026

Fab Five Reunion Drives TNT and CBS's Experimental Final Four Altcast Built on REMI Workflow

Michigan legends bring a new voice to the broadcast as TNT Sports and CBS Sports...

04/04/2026

Flock Audio's latest Patch App DX update

Faster, cleaner and more intuitive than ever The control software for Flock Audio's digitally controlled patchbay systems has just been treated to an up...

04/04/2026

Sinclair to FCC: Broadcast Sports Drives Investment in Local News

Share Copy link Facebook X Linkedin Bluesky Email...

04/04/2026

Study: Worldwide Telecom Capex to Decline in 2026,

Share Copy link Facebook X Linkedin Bluesky Email...

04/04/2026

Ateme Delivers Full End-to-End Streaming Platform to Moldtelecom

Share Copy link Facebook X Linkedin Bluesky Email...

04/04/2026

FCC Plans Spending, Regulatory Fee Revenue Reductions in FY 2027

Share Copy link Facebook X Linkedin Bluesky Email...

04/04/2026

DHD Introduces AI-Based Audio Noise Reduction to XD3 IP Core

DHD Introduces AI-Based Audio Noise Reduction to XD3 IP Core Brie Clayton April 3, 2026 0 Comments The accompanying image shows the rear panel of the ...

04/04/2026

Macnica Redefines ST 2110 Flexibility with Two Speeds on One Card

Macnica Redefines ST 2110 Flexibility with Two Speeds on One Card Brie Clayton April 3, 2026 0 Comments New for NAB Show 2026, MEP100 SmartNIC now sup...

04/04/2026

Unified Media Workflows for Story-Centric Production

Unified Media Workflows for Story-Centric Production Brie Clayton April 3, 2026 0 Comments Framelight X unifies field capture, editing and publishing ...

03/04/2026

TNT Sports and CBS Sports To Reunite Michigan's Iconic Fab Five' for Special NCAA Men's Final Four Altcast on truTV and HBO Max

Michigan's Fab Five will reunite for an alternate presentation of the Mich...

03/04/2026

NAB 2026: Avid To Showcase Content Core and AI Workflow Innovations

Avid will exhibit at NAB Show 2026 (April 18-22, Booth N2226, Las Vegas Convention Center), demonstrating its Content Core platform and new AI-driven workflow c...

03/04/2026

MRMC Appoints Nick Barthee as Chief Operating Officer

Mark Roberts Motion Control (MRMC) has announced the appointment of Nick Barthee as Chief Operating Officer. The announcement follows MRMC's transition fro...

03/04/2026

Elite Media Technologies Selects Interra Systems' BATON for File-Based QC

Interra Systems has announced that Elite Media Technologies has selected its BATON file-based QC solution for media workflows. Elite Media Technologies speciali...

03/04/2026

Moldtelecom Deploys Ateme Technologies Across Full Streaming Workflow

Ateme has announced that Moldtelecom has deployed Ateme technologies across its streaming workflow, covering encoding, delivery, operations, and analytics. Mol...

03/04/2026

NAB 2026: Grass Valley To Demonstrate Framelight X Content Management

Grass Valley will demonstrate Framelight X, its content management platform, at NAB Show 2026. The platform connects capture, ingest, editing, and publishing in...

03/04/2026

NAB 2026: Encompass Digital Media and Techex Launch Cloud-Based Master Control Service for Live Events

Encompass Digital Media and Techex have announced a cloud-native Master Control ...

03/04/2026

Peacock Debuts Its New Vertical-Video Experience for Live NBA Games on Monday

Live Vertical Video automatically track the action on the court via AI technology and delivers a fully optimized, 9 16 live feed for viewers...

03/04/2026

Illinois Creative Team Captures Men's Final Four Run With Trust, Timing, and a Few Water Guns

As the Illini make their first trip to college basketball's biggest stage si...

03/04/2026

Hook 'Em: University of Texas Athletics Produces Digital Content for a First-Person Experience

After last summer's Softball National Championship victory and last week'...

03/04/2026

Don't Be Lame: Arizona Men's Basketball Social Team Aims To Catch the Attention of Wildcat Fans

The University of Arizona's Men's Basketball team has only loss twice th...

03/04/2026

During Packed Weekend, Van Wagner Covers In-Venue Shows for Championships Across Indianapolis

Eight games across four tournaments will be played in three venues; accommodatio...

03/04/2026

Ottawa Senators and Bell Media Extend Regional Broadcast Rights Agreement

The Ottawa Senators and Bell Media have announced a long-term rights extension for regional Ottawa Senators games on TSN and RDS. TSN Radio 1200 remains the exc...

03/04/2026

ESPN's Women's Final Four Playbook: Bigger Compound, Bigger Trucks, Biggest Production Yet

Massive production in Phoenix is run out of Game Creek Video Flagship mobile uni...

03/04/2026

Electro-Harmonix release EHX Classics Bundle

Iconic guitar pedals now available in plug-in form Guitar effects experts Electro-Harmonix have teamed up with MixWave to turn a collection of their most pr...

03/04/2026

FAC launch Bandit 2

New multi-band AUv3 plug-in announced Fred Anton Corvest (FAC) offer an extensive range of AUv3 plug-ins and iOS/iPadOS Apps, and their multiband effects pr...

03/04/2026

Pulsar-23: 1984 from SOMA Laboratory

Just 84 units to be released in the US Experimental synthesizer and sound-machine extraordinaires SOMA Laboratory have revealed an upcoming special-edition ...

03/04/2026

Iconic Instruments release Model 350 Tube Preamp

Emulates the input section of an Ampex 350 One of the latest arrivals to the Iconic Instruments range delivers a new tube preamp plug-in inspired by the cir...

03/04/2026

TelevisaUnivision and Nielsen Agree to New Media Intelligence Deal Covering Streaming, National and Local TV, and Radio

New York April 2, 2026 TelevisaUnivision, the world's leading Spanish-la...

03/04/2026

2026 NAB Show Exhibitor Insight: Techex

Share Copy link Facebook X Linkedin Bluesky Email...

03/04/2026

TelevisaUnivision Signs New Nielsen Media Intelligence Deal

Share Copy link Facebook X Linkedin Bluesky Email...

03/04/2026

The WNET Group, JIB Launch NHK World-Japan in New York

Share Copy link Facebook X Linkedin Bluesky Email...

03/04/2026

NAB Leadership Foundation Welcomes New Board Members

Share Copy link Facebook X Linkedin Bluesky Email...

03/04/2026

EverPass Media Expands Distribution Deal with Netflix

Share Copy link Facebook X Linkedin Bluesky Email...

03/04/2026

Versant Acquires AI-Data Platform StockStory

Share Copy link Facebook X Linkedin Bluesky Email...

03/04/2026

CVP Grows European Footprint with Strategic Expansion in...

CVP, one of Europe's leading suppliers of professional video and broadcast solutions, today announces the launch of its new German operation and the formati...

03/04/2026

MRMC Announces Appointment of Chief Operating Officer

Mark Roberts Motion Control (MRMC) today announces the appointment of Nick Barthee as Chief Operating Officer, strengthening its leadership as the company conti...

03/04/2026

Net Insight Introduces Programmable Trust Boundaries for...

Net Insight introduces programmable Trust Boundaries that make live media interconnection predictable as traffic moves between facilities, networks and cloud en...

03/04/2026

Winning in the new media economy: Avid showcases AI-powered, connected intelligence to unlock media value at NAB Show 2026

Winning in the new media economy: Avid showcases AI-powered, connected intellige...

03/04/2026

NUGEN Audio CEO Dr. Paul Tapper to Lead Presentation About Dialog Intelligibility and Loudness at NAB 2026

NUGEN Audio CEO Dr. Paul Tapper to Lead Presentation About Dialog Intelligibilit...

03/04/2026

NAB Show 2026: PlayBox Neo Highlights Workflow, Security, and IP Advances

NAB Show 2026: PlayBox Neo Highlights Workflow, Security, and IP Advances Brie Clayton April 2, 2026 0 Comments PlayBox Neo will showcase the latest i...

03/04/2026

For Taku Hirano, Everything Is Connected

For Taku Hirano, Everything Is Connected From touring and composition to teaching and instrument design, the in-demand percussionist sees it all as one body o...

03/04/2026

Berklee Honors Humberto Ramirez with Master of Latin Music Award

Berklee Honors Humberto Ramirez with Master of Latin Music Award The alumnus and acclaimed trumpeter is honored for his influence as a performer, composer, an...

03/04/2026

VIZ Media Lands Rumiko Takahashi's MAO, Sets April 4 Premiere on Hulu in the U.S. and Disney+ in Select International Markets

VIZ Media Lands Rumiko Takahashi's MAO, Sets April 4 Premiere on Hulu in the...

03/04/2026

Competition Heats Up with Intrigue and Spices: Netflix Unveils Trailer for New Drama Made with Love'

Back to All News Competition Heats Up with Intrigue and Spices: Netflix Unveils...