October 1, 2025

Online Piracy Is Back: Why Rising Streaming Costs Are Driving Users Away

Image from How Money Works

Piracy may have peaked a decade ago, but it’s far from dead. After years of decline, illegal downloading and streaming are making a comeback, fueled by consumer frustration with rising subscription prices and fragmented platforms. The streaming industry, once hailed as the ultimate piracy killer, may now be unintentionally reviving it.

The Rise and Fall of Piracy

In the early 2010s, piracy dominated the internet. BitTorrent accounted for nearly one-third of all web traffic, and an estimated 95% of music downloads were pirated. Then came the rise of streaming platforms like Spotify, Netflix, and Hulu, which offered a safer and easier way to access entertainment legally.

For a while, it worked. Affordable monthly plans, massive libraries, and ad-free experiences gave consumers what piracy couldn’t: convenience. As a result, piracy rates dropped significantly.

But in recent years, that trend has reversed. Since 2015, online piracy has been creeping back, largely due to the fragmentation of content across dozens of platforms and steadily rising subscription fees.

Streaming Services: From Savior to Problem

When Netflix and Spotify first emerged, their affordability and convenience made piracy look like a hassle. Fast-forward to 2025, and the landscape is very different:

  • Subscription costs keep rising across Netflix, Disney+, Hulu, and Max.
  • Ads are now standard even on paid tiers.
  • Exclusive licensing deals scatter content, forcing users to subscribe to multiple services just to watch their favorite shows.

Consumers are asking a simple question: if piracy is cheaper, ad-free, and consolidated, why keep paying?

How Consumers See It

Interestingly, most people don’t want to pirate they want easy, affordable access. Studies show that pirates are more likely than average consumers to pay for content when it’s legally available and reasonably priced. In other words, piracy is often a symptom of poor service, not a preference.

Consumers are sending a clear message: they’re willing to pay, but only if the industry makes it worth their while.

The Business of Streaming Under Pressure

Streaming giants face serious financial challenges. Netflix reported $8.7 billion in net income last year, but with a market valuation of over half a trillion dollars, investors are questioning whether the business model is sustainable.

Original content has become the lifeline, but it’s expensive. Meanwhile, independent studios are launching their own platforms, further splintering the content landscape. That means more subscriptions, more costs, and less convenience for viewers.

The Movie Industry’s Dilemma

Movies face a unique challenge compared to music. High production costs make the industry far less flexible. With some of the highest-budget films in history released over the past decade, poor box office results are hitting harder than ever.

Declining DVD sales and reliance on streaming have left studios scrambling for revenue. Yet the industry’s focus on blockbuster franchises often alienates audiences who crave diverse content, leaving them searching for alternatives piracy included.

What the Future Holds

The resurgence of piracy may be the wake-up call Hollywood and streaming platforms need. If studios continue raising prices and hoarding content across exclusive platforms, piracy will remain the more attractive option.

History offers a clue: the music industry only beat piracy when services like Spotify made music affordable, accessible, and convenient. Unless the streaming industry follows suit, piracy won’t just survive it will thrive.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

Author

  • D. Sunderland

    We created How Money Works to show what is really happening in the world of finance. As someone that has worked in both private equity and venture capital, I have a unique perspective on the financial world

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