Pirate streaming services plague DStv
Pirate streaming services like 123Movies and Fmovies not only steal revenue from local broadcasters like MultiChoice but also significantly impact the creative industry as a whole.
Moreover, services like 123Movies and Fmovies are free to use most of the time, with their primary revenue generators being ads.
This makes them attractive to movie and series fans on a budget in South Africa, with the only requirement to watch being an active Internet connection.
These likely became even more attractive to viewers when DStv decided to limit concurrent streams per account to one in March 2022.
However, Fmovies viewers can pay to subscribe to the service, which gives them access at peak times when the platform restricts access for free users.
A quick look at Fmovies and 123movies shows that they stream content offered with Showmax and DStv, including:
- Various Real Housewives series
- 90 Day Fiance
- Ru Paul’s Drag Race
- Gold Rush
- Street Outlaws
- Chicago P.D.
- Homestead Rescue
- Moffie
- Gran Turismo
- Cocaine Bear
- Fast X
It should be noted that these are only a few of the shows and movies offered for free on these pirate platforms that MultiChoice has the right to broadcast and charge for.
MyBroadband asked MultiChoice and Partners Against Piracy (PAP) how pirate streaming services like Fmovies and 123movies impact its business in South Africa.
It said the illegal distribution of licenced content threatens the sustainability of content creators and rights holders.
“The illegal distribution of content through pirate streaming services like Fmovies and unauthorized IPTV platforms poses substantial challenges for the industry as a whole,” said PAP.
“This form of piracy not only results in direct revenue losses for businesses but also undermines the integrity of our content distribution models.”
“These practices have a broader impact on the creative industry by siphoning off revenues vital for the sustenance and growth of content creators and rights holders,” it added.
This extends beyond South African and African borders but presents a global challenge, with pirate services frequently offering content from international pay-TV broadcasters.
MultiChoice says it has adopted a multifaceted approach to combating illegal streaming, including technological measures, collaboration with law enforcement agencies, and implementing legal action against infringing entities.
“The formation of Partners Against Piracy underscores our commitment to collaborative efforts within the industry. However, the dynamic nature of digital piracy poses difficulties in keeping pace with unauthorized services,” it told MyBroadband.
“We continuously invest in advanced technologies and collaborate with industry partners under the Partners Against Piracy banner to enhance our anti-piracy efforts.”
MultiChoice added that educating the public about the risks and consequences associated with streaming content from pirate services is crucial to deterring the use of pirate streaming services.
South African pirates get off easy
In August 2023, MultiChoice told MyBroadband that those found guilty of distributing pirated content could face a fine of R5,000 or three years’ jail time, while repeat offenders could be fined R10,000 or face five years in jail.
Chola Makgamathe, chairperson at the Copyright Coalition of South Africa and PAP affiliate, added that two convictions were made last year.
“In the past year, Irdeto and MultiChoice saw the conviction of two perpetrators (Lee Whaley and Jordan Lee Mott) in relation to them pirating content,” said Makgamathe.
“Lee Whaley was arrested by detectives from the Provincial Commercial Unit for the selling of Android TV Boxes and IPTV subscriptions in December 2019.”
“The Android TV Box and IPTV subscriptions allowed access to premium copyright-protected content, including DStv content,” she added.
However, punishments overseas aren’t as lenient as a small fine and a few years’ jail time.
In May 2023, the Chesterfield Justice Centre in the UK sentenced five men to a combined 30 years’ jail time.
They were responsible for the pirate streaming service Flawless IPTV, which accumulated over 50,000 subscribers and an estimated £4.6 million in revenue, £3.7 million of which was profit.
The profit was split unequally between Mark Gould, Steven Gordon, Peter Jolley, Christopher Felvus, William Brown, and Zak Smith.
Their fines and jail sentences are listed below:
- Mark Gould — received £1.7 million profit. Sentenced to 11 years on two counts of conspiracy to defraud and contempt of court.
- Steven Gordon — received £1 million profit. Sentenced to five years and two months in prison on two counts of conspiracy to defraud and contempt of court.
- Peter Jolley — £773,000 profit. Sentenced to five years and two months in prison on two counts of conspiracy to defraud and money laundering
- Christopher Felvus — £164,500 profit. Sentenced to three years and 11 months in prison on two counts of conspiracy to defraud
- William Brown — £15,000 profit. Sentenced to four years and nine months on two counts of conspiracy to defraud, after pleading not guilty.
Zak Smith failed to appear in court, and a warrant was issued for his arrest.
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