According to Chainalysis, a blockchain analysis firm, crypto assets have seen a surge in usage for purchasing pirated online streaming content. Nordic Content Protection (NCP), a non-profit organization dedicated to combating television piracy, collaborated with Chainalysis to track crypto addresses linked to illicit streaming activities. From 2019 to 2023, these addresses received a total of roughly $24 million, with a significant increase observed from early 2022 onwards. NCP's security manager, Michael Lund, emphasizes that the tracked addresses represent only a fraction of the problem. He estimates that hundreds of millions of people use illicit streaming services, resulting in billions of dollars in lost revenue for legal services.
Cryptocurrency Payments Surge for Online Pirated Streaming Content
Copenhagen, Denmark - A recent study conducted by blockchain analysis firm Chainalysis, in collaboration with Nordic Content Protection (NCP), an anti-piracy non-profit, has revealed a significant increase in the use of cryptocurrency assets for illicit online streaming.
Between 2019 and 2023, the total inflows to crypto addresses linked to pirated streaming activities amounted to approximately $24 million. This figure has witnessed a notable upswing since early 2022, continuing unabated into 2023.
Michael Lund, NCP's security manager, emphasized that the tracked addresses do not fully encompass the extent of the problem. "Television piracy poses a global challenge and poses a considerable threat in Europe, the Middle East, Asia, and the Americas," Lund said. "We estimate that hundreds of millions of users access illicit streaming services, resulting in billions of dollars in lost revenue for legitimate providers. This, in turn, negatively impacts tax revenue, employment opportunities, and the quality of content available."
Chainalysis had previously reported that illicit crypto transaction volume experienced a decline in 2023 for the first time since 2020. In 2023, illicit addresses received approximately $24.2 billion worth of cryptocurrency, a significant decrease compared to the $39.6 billion received in 2022. However, in 2020, illicit wallets had received only $9.4 billion worth of crypto. This figure surged to $23.2 billion in 2021.
Chainalysis cautions that the actual volume of illicit crypto transactions in 2023 may be higher, as their analysis only considered known illicit addresses.
The rise in cryptocurrency payments for pirated online streaming poses concerns for the entertainment industry, content creators, and consumers alike. Copyright infringement not only undermines the profitability of legitimate streaming services but also deprives creators of their rightful compensation. Additionally, the illicit use of cryptocurrencies can facilitate anonymous and untraceable transactions, making it difficult to identify and prosecute those involved in piracy.
As a result, law enforcement agencies and anti-piracy organizations are increasingly focusing on combating the use of cryptocurrencies for illicit activities. By monitoring blockchain transactions, identifying key players, and collaborating with cryptocurrency exchanges, authorities aim to disrupt the flow of funds supporting piracy and protect intellectual property rights.
