Here’s how piracy websites make money

They’re the lifeblood of the illicit economy – but how do piracy websites make money?

Piracy websites, which offer visitors free or discounted access to content illegally, are hugely popular. Analysis by MUSO, a piracy analytics firm, recorded more than 140 billion visits to piracy websites they track last year, up 12% since 2019.

Christmas is a big time for piracy as people seek out entertainment for all the family while also trying to avoid being stung by high streaming service charges.

All those visits mean piracy can be big business – but how do these websites, which often don’t charge for access, make money?

First, some offer premium subscription services that allow users a more uninterrupted experience or faster downloads and streaming speeds, resulting in higher-quality content.

Often, these payments are processed using cryptocurrency, which is comparatively untraceable and cuts out middlemen who take their own cut. Because they’re not paying for processing fees, pirate website providers can offer a wider range of content for a lower price than legitimate services – making them popular with users.

A range of income streams

However, precious few people pay for these services compared to the overall number of people who access them. The three biggest websites tracked by the US Chamber of Commerce (COC) have about two million users, who each pay between $5 and $10 for their premium subscriptions. Compared to the billions of piracy website users worldwide, that’s a small fraction.

Even if you’re not paying, pirate website owners are likely making money off you. Indeed, the COC estimates that pirate websites bring in around $2 billion of revenue a year, with the majority of income coming from other means beyond subscriptions.

One obvious way to users that such websites make money is through the serving of ads against their content. Piracy websites will frequently strike deals with lesser-known or unregulated ad networks willing to work with illegal platforms. Those networks serve ads to users, including pop-ups, banners, or video ads.

Sometimes, these are for illicit or gray market websites – such as pornographic websites, deepfake nudifying apps, or scammy games. But often, they’re legitimate advertisers who are unaware their products are being marketed alongside illegal piracy because of the way the ad network runs through multiple stages, making it difficult to track individual adverts.

Big earners

While it might seem initially that illicit websites would not attract high CPMs (clicks per million impressions) for adverts shown on their sites, the sheer volume of visitors means that they’re often able to attract significant rates for serving ads.

Another income stream for piracy websites is through affiliate services. This can be done by showing links to paid services, including VPNs, antivirus software, or other tools users might need to safely access the site when a user visits – capitalizing on the fear many visitors have of the unregulated way these websites work. This leads to another reliable revenue stream for the less professional end of the piracy market: data harvesting and malware distribution.

Every time a user visits a piracy website, they trust the website to act as an honest broker. Often, in the reputation-driven world of piracy, they are. But some don’t.

Websites can distribute malware that turns infected devices into bots for larger criminal operations, powering DDoS attacks or cryptocurrency mining, indirectly generating revenue. Others will gather user data, including browsing habits, that are then sold on to others. A small proportion that doesn’t care about return business will even install trojans or ransomware to demand money from users.

For websites that have to pay for web hosting and servers to host the content they offer – often at a premium because of the underhand nature of their content – any income can help.