The online video industry in the Philippines was seen to generate $419 million revenues in 2022, but  pervasive online video piracy outperformed robust growth as it facilitated higher revenue leakage estimated at $781 million in that same year, accounting for an alarming 53 percent of legal video industry,  according to a report. Media Partners Asia (MPA), a leading independent provider of research, advisory and consulting services across the media and telecoms sectors, showed in a March 2023 report “The Impact of Piracy on Philippines Creativity Industry” that of the $419 million expected online video industry revenue, subscription contributed 57 percent and advertising, 43 percent. However, the report said that video piracy also grew higher with 20 million users in 2022 resulting in estimated revenue leakage of $781 million, representing an alarming 53 percent of legal video industry/screen revenues. As a result, the report said the Philippines lagged behind its ASEAN peers in online video industry development largely to high levels of online piracy. In terms of ranking in SVOD (subscription video on demand) household penetration and subscription in SEA markets, the Philippines is among the bottom dwellers with 10 percent in 2022 and 13 percent forecast for 2027. Vietnam was lowest with 4 percent in 2022 and 8 percent by 2027, while Indonesia was also similarly situated with 13 percent in 2022 and 16 percent in 2027. Among ASEAN countries, Singapore has the highest rate with 60 percent in 2022 and 63 percent in 2027. The report highlighted that piracy hurts economic potential, the growth and monetization of online video. “Easy access to pirated online video content inhibits the development of the premium video sector, including SVOD and premium AVOD (advertising VOD0,” the report noted. The report warned that if online piracy is not brought under control, the illegal industrial activity could claim 31 million users by 2027 with annual leakage of $1 billion. However, implementation of piracy controls will help unlock value with more legal customers and revenue growth for the premium online video category, potentially more than doubling local content investment in the online video sector to $390 million by 2027 versus a current projected trajectory of $138 million. With improved piracy controls, eventually more than 60 percent of illegal subscribers if not more could be converted to prevailing SVOD and freemium services. More efforts to combat online content theft will help grow premium online video revenues by 3x to $1.6 billion with a significant multiplier in the process. Piracy controls will boost employment with the creation of 2,800 new jobs over the next five years (i.e. 2022-27), as video sector employment output grows to $402 million by 2027, a major incremental boost of $220 million. The report also noted that high levels of online video piracy remained high post pandemic. Key global brands have delayed launches in the local market, delaying meaningful alternatives in Netflix-dominated SVOD market.