Music Piracy Is Booming in 2024, and the Industry Is to Blame

The rise of music piracy reflects an out of touch industry.
The rise of music piracy reflects an out of touch industry.

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Ignoring consumer frustrations is keeping piracy alive and well.

Despite having more legal options than ever, fans are increasingly turning to illegal downloads and stream-ripping sites. However, this is not just about avoiding payment. It’s more about the users’ frustrations with a system that doesn’t meet their needs.

Why Users Turn to Illegal Downloads

You might think music piracy died with the rise of streaming apps. But, it’s actually the opposite.

Music piracy surged in 2024, with over 17 billion visits to piracy sites. The most used of which are stream-ripping sites, especially those that convert YouTube videos to MP3 files, which now make up almost 40% of all music piracy.

When stacked against the segment-wise revenue generated by the M&E sector, the size of the piracy economy ranked fourth. (From: EY-IAMAI anti-piracy report)
When stacked against the segment-wise revenue generated by the M&E sector, the size of the piracy economy ranked fourth. (From: EY-IAMAI anti-piracy report)

But what’s pushing so many people back to piracy in 2024? The reasons are clearer than you might expect:

  • Convenience and Reliability: Many users have experienced the frustration of songs suddenly disappearing from their playlists without warning due to changes in licensing agreements. With pirated tracks, this never happens. They stay on your device, ready to play whenever you want them.
  • High Subscription Costs: Monthly fees for streaming services typically run $10-15 for individual plans. But that’s just the starting point. Many listeners need multiple subscriptions to access all their favorite artists. Add in the constant threat of price hikes, like we’ve seen recently, and these costs can quickly become a burden for many users.
  • Limited Features on Free Tiers: Free versions of streaming apps often feel more like demos than actual services. With restricted playback and ads appearing every few seconds, some users turn to modified apps that unlock premium features for free.
For instance, Spotify’s recent UI update that limited playlist access for free users has only driven more fans toward piracy.

The True Cost of Music Piracy

The evolution of content piracy. (From: EY-IAMAI anti-piracy report)
The evolution of content piracy. (From: EY-IAMAI anti-piracy report)

Every time someone turns to piracy instead of legal streaming, it triggers a chain reaction that hurts the entire music industry. But it’s not in the way you might expect.

The impact goes beyond just lost streaming revenue.

When listeners move to pirated music, they often step away from the whole ecosystem that helps artists grow. For example, research shows these users are less likely to attend concerts or buy merchandise, cutting off vital income streams that many musicians rely on to make ends meet.

Music discovery is also affected negatively.

Streaming platforms use sophisticated algorithms to help listeners find new artists they might love. But when people use pirated music, they disappear from this discovery system.

For emerging artists trying to build an audience, this can mean the difference between breaking through and staying unknown.

Platform-curated discovery playlists on YouTube Music and Spotify.
Platform-curated discovery playlists on YouTube Music and Spotify.
The broader economic cost is also substantial. In the U.S. alone, piracy results in over 70,000 job losses annually within the music industry, impacting industry growth and the surrounding economy. Meanwhile, piracy sites profit from ad revenue, diverting potential subscribers away from legitimate platforms.

Why Anti-Piracy Efforts Backfire

The music industry’s methods of stopping piracy (blocking sites and issuing legal threats) often fail and sometimes even encourage them more.

A University of Portsmouth study found that anti-piracy threats can boost piracy among men by 18%. This reaction, called psychological reactance, shows that harsh anti-piracy warnings may encourage piracy rather than discourage it.

Digital rights management (DRM) and account crackdowns also frustrate paying users.

DRM limits where users can play their music and how many devices they can use, making loyal customers feel restricted. Pirates, on the other hand, bypass these limitations effortlessly. So, DRM measures primarily inconvenience those who pay for music rather than deter illegal users.

The industry’s other strategies aren’t faring much better.

Take content watermarking and blocking stream-ripping sites, for example. When YouTube manages to block one ripping site, three more pop up to take its place. Why? Because the demand hasn’t gone away.

Basically, it’s like they’re just playing whack-a-mole.

The problem is clear: focusing on punishment and restrictions repeats the same mistakes we’ve seen before.

What the Industry Should Do Instead

Instead of fighting piracy with restrictions and threats, the music industry needs to win listeners back by reaching a compromise.

Here’s what could actually work:

  • Improved Ad-Supported Models: Not everyone can afford a monthly subscription, but that shouldn’t lock them out of legal music. By making free tiers more generous with features and less aggressive with ads, platforms could keep price-sensitive listeners from turning to piracy.
Think of how radio worked: free music supported by reasonable ad breaks.
  • Flexible Pricing Options: When it comes to music streaming costs, one size doesn’t fit all. Regional pricing that reflects local income levels, expanded family plans, and smart partnerships could make legal streaming more appealing.
Apple Music’s deal with Verizon shows how this can work. Subscribers get their music included with their phone plan, eliminating that extra monthly bill.
  • Fairer Artist Compensation: Current payment models mostly benefit major labels. Many independent artists, on the other hand, struggle to earn a living wage. This can deter users as they may that platforms earn more than what they deserve compared to their favorite artists.
Platforms like Bandcamp offer a different approach by letting artists set their prices and keep more revenue. This builds stronger connections between artists and fans. So, listeners are more likely to support their favorite musicians legally.
  • Cross-Platform Compatibility: Nobody enjoys rebuilding their entire music library every time they switch services. Universal playlists and music libraries that work across platforms could end the headache of managing multiple subscriptions. And when music flows freely between services, piracy becomes less tempting.
  • User Education on Artist Support: Many users don’t realize how their subscriptions support musicians. Educating listeners on how their fees impact artists directly could help listeners see legal streaming as an investment in the music they enjoy rather than just another bill to pay.

These changes could help build a music industry that works better for everyone. The industry needs platforms that listeners want to use, fair pay for artists, and a healthy ecosystem where new music can thrive.

The key isn’t to fight piracy directly. It’s to make it irrelevant by offering something better.

💬 Conversation: 2 comments

  1. I would never consider using a pirate website but I still buy CD’s. Why? Because artists collect far more revenue than they do with streaming or legal Downloads and while I do purchase hi-def downloads from Qobuz occasionally, these purchases are only to obtain better sound for favorite CD’s which I already own.
    They offer streaming options as well but again I prefer CD’s or hi-def files which is why Apple’s I-phone plan would be a non-starter for me. As for
    punishment for offenders, note their are artists I like who I boycott for that very reason. Clapton has sued consumers and Dave Matthews has shut down mom and pop record stores for example. If you think punishing people will encourage legal music purchases, better think again!

  2. No one cares. Literally. Why should we? “Artists” all get fancy cars, mansions, and luxury. I feel good knowing I can actively take that away. I work my ass off and don’t get to have any of that lifestyle. The only reason they want my money is so they can have a life of luxury. I want the life of luxury too. Maybe if they’d leàrn to live on less means we would care more. No on carws that i get underpaid for my fucking work and contribution to society!

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