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Study: 94% Who View Pirated Content Also Purchase (CDSA)

By Bryan Ellenburg

An estimated 94% of all American consumers viewing pirated movies are also buying legitimate copies of content, according to a new study from Verance Corp.

The survey identified six categories of consumers who pirate movies, and found two of them — “Occasionals” and “Convenience Streamers” — combined for more than a third of the estimated 1 billion views of pirated movies each year. They steal not because they can’t afford legitimate copies, but because it’s convenient, the study found, and they’ll buy something if no technological or availability barriers exist.

“This finding confirms that piracy loss can be converted to revenue opportunities for major and independent studios, other content providers and content retailers,” the report concludes.

Two thirds of consumers in those two groups won’t spend more than a minute or two to watch a pirated film, and approximately 40% of would-be pirated views were converted to paid legitimate copies.

Overall, more than 15% of Americans ages 13 and up are active consumers of pirated movies, watching an average of 23 per year.

“This survey reveals that blocking and conversion technologies curtail pirate consumption and the findings provide direct guidance for studio executives and content retailers on where to focus their efforts to generate additional revenue,” said Verance CEO Nil Shah.

Those in the “No Big Deal” (36%) category tend to be Millennials who don’t have any problems stealing pirated content, and may the hardest to turn around, the survey found. “Content Enthusiasts” (10%) do buy content, but watch so much that piracy is just part of the mix. “Cost Sensitives” (11%) have little discretionary income and “Library Builders” (6%) tend to be young professionals who show both a proclivity for physical media and utilize pirated copies for their collection.

“These findings indicate current use of interdiction technologies is having a measurable impact on casual piracy and sheds light as to why blocked pirate views are converted to legitimate purchases,” said Verance CTO Joe Winograd. “Broadening the use of these technologies to other media platforms, including next generation devices will accelerate legitimate purchases and revenue.”