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...

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 ...

01/04/2026

DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION

January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION Douyin Users Can Now Create And Share Videos With Stun...

10/01/2026

ESPN Reports Near-Record Viewing for Start of NBA Season

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

09/01/2026

Rock-It Sports' Deron Brown & Laura Rowlands on Launching a New Brand, Supplying Logistical Needs for Events in 2026

Rock-It Sports' Deron Brown & Laura Rowlands on Launching a New Brand, Suppl...

09/01/2026

Warner Bros. Discovery's Chris Brown on the Broadcaster's First French Open, Advancing Remote Workflows at Techwood Facility

Warner Bros. Discovery's Chris Brown on the Broadcaster's First French O...

09/01/2026

NFL Playoffs 2026: CBS Sports Travels to Jacksonville With Packed Arsenal of Production Capabilities

NFL Playoffs 2026: CBS Sports Travels to Jacksonville With Packed Arsenal of Pro...

09/01/2026

NFL Playoffs 2026: NBC Sports Is Set To Roll Out New Scorebar, Insert Graphics This Weekend

NFL Playoffs 2026: NBC Sports Is Set To Roll Out New Scorebar, Insert Graphics T...

09/01/2026

NFL Playoffs 2026: Prime Video Production Team Caps Historic Season With Iconic Bears-Packers Primetime Matchup in Chicago

NFL Playoffs 2026: Prime Video Production Team Caps Historic Season With Iconic ...

09/01/2026

NFL Playoffs 2026: FOX Sports Kicks Off Postseason Slate With Two-Game Wild Card Coverage

NFL Playoffs 2026: FOX Sports Kicks Off Postseason Slate With Two-Game Wild Card...

09/01/2026

NFL Playoffs 2026: ESPN's Run Brings Monday Night Football' Flagship Operation Into January

NFL Playoffs 2026: ESPN's Run Brings Monday Night Football' Flagship Op...

09/01/2026

Carr: FCC Looking for Ways to Empower' Local Broadcasters

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

09/01/2026

Panasonic to Introduce Projection, LED and Workflow Offerings at ISE 2026

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

09/01/2026

SMPTE Announces 2026 Leadership

SMPTE , the home of media professionals, technologists, and engineers, today introduced the board officers and regional governors who will serve terms beginning...

09/01/2026

Globecast Appoints Chris Pulis as Group Chief Technology...

Globecast, the leading provider of broadcast, media and entertainment managed services, today announced the appointment of Chris Pulis as Group Chief Technology...

09/01/2026

Hollywood Professional Association Announces Updates to B...

The Hollywood Professional Association (HPA) today announced several updates to its board of directors. As part of HPA s annual governance cycle, new leadership...

09/01/2026

SDVI APPOINTS SIMON ELDRIDGE AS CHIEF OPERATING OFFICER

SDVI, the leading platform provider for cloud-native media supply chains, today announced that Simon Eldridge has been appointed chief operating officer. In thi...

09/01/2026

Cobalt Digital Returns to ISE with Comprehensive Lineup o...

Cobalt Digital, the leading designer and manufacturer of award-winning ST 2110 and SDI signal processing products, and a founding partner in the openGear initi...

09/01/2026

iWedia Strengthens Leadership in ATSC 3-0 with Market-Pro...

iWedia, a global leader in connected TV software solutions, announces that its market-proven ATSC 3.0 software stack is powering the broadcast functionality of ...

09/01/2026

Amino and Xibo Partner to Deliver Next Generation 4K Digi...

Amino, a global leader in enterprise video and digital signage technology, today announced a strategic partnership with Xibo, a leading global digital signage s...

09/01/2026

FIFA Strikes Content Deal with TikTok for 2026 World Cup

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

09/01/2026

HPA Elects New Officers, Board Members for 2026

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

09/01/2026

NFL's 2025-26 Regular Season Is Second-Most-Watched Ever

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

09/01/2026

FCC Sets Tentative Agenda for Jan. 29 Open Meeting

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

09/01/2026

Carr: FCC Looking for Ways to 'Empower' Local Broadcasters

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

09/01/2026

RT delivers another record year in 2025, bringing Ireland together with national moments

RT Player has 157 million streams, up 10% year-on-year An increase on 2024, RT...

09/01/2026

2FM announces line-up of Rising Artists for 2026

RT 2FM has today announced the highly anticipated list of 2FM Rising Artists for 2026, kicking off 2FM Rising week for the eighth year on The Tracy Clifford Sh...

09/01/2026

RT to Host the 2026 RTS Ireland Awards

RT to Host the 2026 RTS Ireland Awards Thursday, 16 April 2026 | Dublin Royal Convention Centre The RTS Ireland Television Awards 2026 | Gradaim RTS 2026 | R...

09/01/2026

NVIDIA Unveils Multi-Agent Intelligent Warehouse and Catalog Enrichment AI Blueprints to Power the Retail Pipeline

Every that was easy shopping moment is made possible by teams working to hit s...

08/01/2026

How disinformation is shaping Sudan's conflict: a new report

An evidence-based analysis on disinformation and information manipulation in Sudan's ongoing conflict is published today. (January 8th 2026). Thomson Found...

08/01/2026

At CFP Semifinals, ESPN Again Flexes Its Operational Muscle With 20+ MegaCast Viewing Options

At CFP Semifinals, ESPN Again Flexes Its Operational Muscle With 20+ MegaCast Vi...

08/01/2026

SVG Students To Watch: Sophie Fowler, University of Oregon

SVG Students To Watch: Sophie Fowler, University of OregonThe Portland product has honed her skills as a producer, director, and TD at Quack VideoBy Brandon Cos...

08/01/2026

Follow the Money, Episode 3: Inside the Sports-Media Biz With Sam McCleery and Ken Aagaard

Follow the Money, Episode 3: Inside the Sports-Media Biz With Sam McCleery and K...

08/01/2026

SVG New Sponsor Spotlight: Qualstar's Jeff Sengpiehl on the Enduring Power and Value of LTO Tape for Video Archiving

SVG New Sponsor Spotlight: Qualstar's Jeff Sengpiehl on the Enduring Power a...

08/01/2026

Legendary February: Production Leaders at NBC Sports Pull Back the Curtain on Olympics, Super Bowl, NBA All-Star Plans

Legendary February: Production Leaders at NBC Sports Pull Back the Curtain on Ol...

08/01/2026

One Year In: How Creators Are Growing Their Shows and Connecting With Audiences Through the Spotify Partner Program

In 2025 we launched the Spotify Partner Program to give creators more ways to tu...

08/01/2026

Spotify Toasts to the Future of Podcasting With Creators at Our New Sycamore Studios

On Wednesday in Los Angeles, Spotify welcomed creators and press to a brunch cel...

08/01/2026

Hollywood Professional Association (HPA) Announces Updates to Board of Directors

The Hollywood Professional Association (HPA) today announced several updates to its Board of Directors. As part of HPA's annual governance cycle, new leader...

08/01/2026

Chyron Releases Virtual Placement 8.0

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

08/01/2026

SMPTE Names Board Officers, Governors for 2026

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

08/01/2026

FCC to Vote on Proposals Expanding Unlicensed Use of 6 GHz Band

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

08/01/2026

RTVE selects Alfalite Neopix for its first broadcast depl...

Spain's national public broadcaster, RTVE, has upgraded one of its main television production facilities in Madrid with the installation of two Alfalite NEO...

08/01/2026

Richard E. Wiley to Step Down as Media Institute's Chairman

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

08/01/2026

Cineverse Acquires Giant Worldwide

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

08/01/2026

Maxon Introduces Cinebench 2026

Maxon's new release of Cinebench features performance enhancements and adds support for the latest Nvidia and AMD GPUs as well as Apple Silicon. Maxon is t...

08/01/2026

Zixi Accelerates Global Growth with Appointment of Heathe...

Zixi, the industry leader in IP-based video transport and orchestration, today announced the appointment of Heather Mellish as Vice President, Global Sales. In...

08/01/2026

Pebble future-proofs playout at Canal Sur

Pebble, the leading automation, content management and integrated channel specialist, has provided a complete update of its installation at Canal Sur in Spain. ...

08/01/2026

Panasonics success in US market with Flagship Z95B OLED T...

iWedia, a global leader in software solutions for connected TV devices, proudly announces the success of its collaboration with Panasonic on the Z95B OLED TV, o...

08/01/2026

Secuoya Chile Invests in Ikegami UHK-X600 and UHL-X40 Cam...

Secuoya Chile, a leading provider of television content creation and supporting services, has invested in Ikegami UHK-X600 and UHL-X40 broadcast cameras as the ...