THE PRICE OF PIRACY STUDY: ILLEGAL STREAMING COSTS THE UK BROADCASTING INDUSTRY £1.35 BILLION A YEAR, WITH LOSSES ALSO AFFECTING FILM PRODUCTION AND SPORT

Illegal streaming of films, TV programmes and live sports costs the UK broadcasting industry an estimated £1.35 billion in lost revenue every year, according to a new study. But the consequences extend far beyond broadcasters. Economic modelling suggests that these revenue losses are equivalent to more than 10,000 jobs and £366 million in lost tax revenue. The money lost to piracy could otherwise help fund new films, television series, production studios and sports development.

The economic impact of digital piracy is examined in the UK study The Price of Piracy: Hidden Costs of Illegal Streaming to the UK Economy. Its authors emphasise that illegal streaming does more than deprive broadcasters and broadcasting rights holders of revenue. It also reduces the funds potentially available for producing new content, developing the audiovisual industry and supporting sport. As a result, the economic consequences of piracy can affect a wide range of other sectors.

Film, Television and Sport Are Major Contributors to the UK Economy

The potential scale of these effects becomes clear when considering the economic importance of both industries. In 2024, UK film and television production generated £23.5 billion in gross value added (GVA), while the sports industry contributed £20.6 billion. Film and television production employed approximately 250,000 people, with a further 560,000 working in sport. Together, these industries supported more than 800,000 jobs.

The importance of the UK film and television industry is also reflected in production investment. In 2025, spending on film and high-end television (HETV) production reached £6.8 billion. Inward investment productions accounted for 85% of total expenditure, approximately £5.8 billion. The UK therefore remains a major international hub for audiovisual production, whose continued growth also depends on access to investment funding.

Piracy Costs UK Broadcasters £1.35 Billion in Lost Revenue Every Year

According to economic estimates by WPI Economics, the UK broadcasting industry loses approximately £1.35 billion annually due to illegal streaming. Of this amount, £700 million is attributed to the illegal streaming of live sports, while a further £653 million relates to films and television programmes. The estimated direct revenue losses are therefore substantial in both categories.

The study's authors point out that these figures represent estimated lost revenue for the broadcasting industry rather than a comprehensive assessment of all the economic consequences of piracy. The loss of this revenue also affects other economic activities, meaning that the overall impact on income across the wider economy could be even greater.

Piracy Affects the Entire Audiovisual Industry, Not Just Broadcasters

Revenue generated through the legal distribution of films, television programmes and live sports does not simply cover broadcasters' operating costs. A proportion is reinvested in new content production through film and television commissions, the acquisition of broadcasting rights and partnerships with production companies.

When revenues decline, the resources available for future investment may also decrease. According to the study's authors, piracy therefore undermines the growth potential of the wider UK creative industries.

The consequences are not limited to major film studios, television companies or high-profile actors and directors. Audiovisual production employs a diverse workforce, from production crews and set designers to technical specialists and employees in supporting services.

The study warns that lower revenues can lead to reduced production activity and fewer employment opportunities. The authors argue that the suggestion that piracy only harms wealthy creators or large media corporations overlooks a significant proportion of its economic consequences.

Economic Losses Are Equivalent to More Than 10,000 Jobs

According to WPI Economics, annual revenue losses caused by piracy are equivalent to approximately 10,400 jobs across the UK economy.

Of these, 4,200 jobs are associated with broadcasting and media production, while a further 6,200 are linked to other sectors. These include the music industry, such as recording studios and music publishers, as well as advertising, publishing and retail.

These figures do not represent a verified number of employees who have actually been made redundant. Instead, they are modelled estimates of the impact of lost revenue on employment.

The calculations draw on UK statistical data and employment multipliers, among other sources, to estimate how changes in economic activity in one sector affect employment elsewhere in the economy.

According to the analysis, the effects of piracy therefore extend beyond broadcasting and content production, influencing employment throughout the wider economy.

Illegal Streaming Costs the UK Treasury £366 Million in Tax Revenue Annually

Reduced economic activity also affects public finances. The study estimates that illegal streaming costs the UK Treasury approximately £366 million in lost tax revenue every year.

To illustrate the scale of this figure, the authors compare it with the cost of funding various public services.

The £366 million could, for example, be equivalent to:

• 651,000 hospital bed-days in the UK's public healthcare system.
• Funding for 9,400 qualified nurses.
• Funding for 10,100 Police Community Support Officers (PCSOs).
• 43 million hours of childcare.
• 140 million free school meals.

These comparisons are illustrative rather than proposed government spending plans. Nevertheless, they demonstrate how the economic impact of piracy can extend well beyond the media market, potentially affecting the resources available to fund essential public services.

Illegal Sports Streaming Could Also Affect Funding for Youth and Women's Sport

Sports broadcasting rights revenue plays a particularly important role in financing the sports industry.

Television rights are a major source of income for professional competitions, but the money generated through their sale is also redistributed through leagues and sporting organisations to support other activities.

These funds help develop young talent, support women's sport and finance grassroots participation.

According to the study, declining broadcasting rights revenue could therefore have consequences extending beyond the financial challenges faced by organisers of elite sporting competitions.

Investment in sport is also a priority for the UK Government.

The report highlights a government commitment of £500 million to hosting major sporting events in the UK, alongside a further £400 million for new or upgraded community sports facilities.

The authors suggest that revenue recovered through reducing piracy could complement these investments, including through broadcasting rights income and additional support for women's and youth sport.

Billions in Lost Revenue Also Represent Missed Investment Opportunities

One of the study's most notable findings is its examination of what an additional £1.35 billion could mean for the UK audiovisual industry if the lost revenue could be recovered and reinvested.

The authors also highlight the need to expand production capacity.

According to a 2022 estimate by Knight Frank cited in the report, the UK was projected to face a shortage of approximately 557,000 square metres of film and television studio space. Additional investment could help address this shortfall.

WPI Economics therefore developed several alternative investment scenarios demonstrating how £1.35 billion could potentially be used.

The first scenario involves constructing five new studio complexes, each containing ten sound stages. Together, these facilities would provide approximately 186,000 square metres of additional studio space.

The second scenario focuses on film production. According to the authors' calculations, the same amount could finance eight major studio films and eight independent films.

A third scenario suggests that £1.35 billion could fund nine new ten-episode seasons of a premium television drama.

These are alternative illustrative scenarios, not investments that could all be delivered simultaneously using the same £1.35 billion.

A New Film Studio, Six Films, Three TV Seasons and Investment in Sport

The study also presents a combined investment scenario in which the additional £1.35 billion would be distributed across several areas.

Under this model, £250 million would be allocated to building a new studio complex with ten sound stages. A further £450 million could finance three major studio films, while £60 million would support the production of three independent films.

Another £450 million would fund three new ten-episode seasons of a premium television drama.

The same scenario also includes investment in sport.

A total of £100 million would be allocated to supporting grassroots women's sport, while £40 million would fund new television broadcasting rights agreements.

The combined model therefore brings together investment in production infrastructure, the creation of new audiovisual content and financial support for sporting activities.

These scenarios are not forecasts of how any additional revenue would actually be spent. Their primary purpose is to demonstrate the scale of the estimated economic losses through tangible investment examples.

The calculations are based partly on publicly available film and television production costs and information about planned studio developments.

The True Cost of Piracy Goes Far Beyond Lost Revenue

According to the study, the economic consequences of illegal streaming extend far beyond the financial losses suffered by broadcasters.

Reduced revenue can restrict investment in new content, job creation, the expansion of production facilities and sports development. It can also affect industries that are only indirectly connected to the production and distribution of audiovisual content.

The estimated £1.35 billion in annual losses therefore represents more than missing revenue for the broadcasting industry.

It is also an indication of the potential investment opportunities the UK economy may be losing.

The report highlights that tackling digital piracy and illegal streaming could benefit not only broadcasting rights holders and television companies, but also producers, creative professionals, sporting organisations and the wider economy.

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About the study: The Price of Piracy: Hidden Costs of Illegal Streaming to the UK Economy was produced by UK consultancy WPI Economics in association with the BeStreamWise initiative.

The report examines the scale and nature of illegal streaming of films, television programmes and live sports in the UK, its economic consequences, the risks it poses to viewers and potential measures to combat digital piracy.

Its findings draw partly on a survey conducted by JL Partners among 2,501 respondents between 3 and 11 February 2026.

Alongside the survey results, the study uses additional statistical and specialist sources, together with its own economic modelling, to estimate the financial and wider economic effects of piracy.

Source: The Price of Piracy: Hidden Costs of Illegal Streaming to the UK Economy – Full Report (PDF)