In the recent discovery, Hollywood is under stress with the rising pirated uploads of major summer blockbusters, which also include Disney’s Lilo & Stitch movie as well as Captain America: Brave New World. These movies have gained massive traction on YouTube, and as per the new findings from Adalytics, pirated Lilo & Stitch videos reportedly drew more than 200,000 views, which usually have the potential to cost millions in revenue to Disney.
YouTube’s Content ID under pressure as pirates get smarter
It was reported by the New York Times that YouTube uses its proprietary Content ID system to detect and manage copyrighted material. Adalytics’ report further showcases that the pirates are staying one step ahead by manipulating videos by cropping, reversing footage or even embedding unrelated clips to bypass detection.
Despite all these tactics, YouTube’s recommendation algorithm was reportedly promoting some of these illegal streams on users' homepages.
Brands unknowingly fund pirated content
- The Adalytics study further found that the ads from major companies like Disney, HBO Max and Focus Features appeared on pirated videos.
- This recent act from the pirate content industry raises questions about where advertisers’ money is going and whether YouTube is doing enough to protect brand integrity.
- Many advertisers were unaware of their ads, which were shown on and later removed from videos flagged for violations, including nudity, hate speech, or copyright breaches.
YouTube faces renewed scrutiny from studios and advertisers
- YouTube claims that nearly 90 per cent of flagged videos remain up with rights holders' permission, while only a small fraction are removed.
- However, the company does not track how many removed videos were recently released, which is in contrast with the full-length films.
- As advertisers like Quote.com report increasing cases of their ads appearing on removed content, trust in YouTube’s ad placement system is being questioned.
The growing cost of piracy to Hollywood
- According to the Motion Picture Association, piracy accounts for about USD 1 billion in annual losses for North American box offices—roughly 15 per cent of total earnings.
- The resurgence of pirated content on mainstream platforms like YouTube, even with ad revenue in play, threatens the already delicate financial balance for studios.
What's next for YouTube?
YouTube terminated channels linked to the pirated content but declined to say whether it profited from ad placements on those videos. While YouTube provides credits upon request, advertisers are still demanding better visibility into where their ad dollars go. With platforms like YouTube under renewed scrutiny, the balance between content sharing and copyright enforcement remains a contentious battleground.