Piracy is one of the biggest drains on streaming revenue. Global digital piracy costs providers billions each year, eroding subscription and advertising models. For OTT platforms, investing in a strong DRM solution (Digital Rights Management) is a must to protect revenue, meet licensing demands, and enable long-term growth.
Why DRM Directly Impacts ROI
At its core, DRM encrypts video and controls access, so only authorized users can watch. Without it, premium content leaks quickly, undermining both subscriber growth and licensing deals. In fact, unprotected delivery is no longer considered commercially viable. DRM maintains what providers call monetization integrity by preventing ripped streams, stolen keys, or uncontrolled downloads.
Equally important, content protection is now a business requirement for acquiring high-value media. Major studios, sports leagues, and other premium content owners require strong DRM as a condition of licensing their content. An OTT service without a robust DRM in place might simply be barred from offering the most sought-after movies or live events. Thus, investing in DRM not only protects what you already have – it also enables you to secure top-tier content deals, which drive subscriber growth and revenue.
Preserving Content Value and Brand Trust
Stolen content doesn’t just hurt sales, it hurts reputation. Leaked shows or sports events diminish exclusivity, while pirated streams are often low quality. By contrast, DRM-protected content ensures consistent playback, building viewer trust and platform credibility.
That trust pays off. Customers are more likely to stick with platforms that reliably deliver exclusive, secure experiences. At the same time, creators are more confident contributing premium content when they know it won’t be widely stolen. In short, DRM protects today’s content value while fueling tomorrow’s pipeline of originals and licensing opportunities.
Enabling Multiple Monetization Models
DRM does more than plug revenue leaks. It also allows operators to safely implement flexible monetization models like:
- SVOD (subscription video on demand)
- AVOD (ad-supported video)
- TVOD/PPV (transactional or pay-per-view)
With DRM in place, providers can confidently offer flexible monetization strategies like tiered subscriptions, rental or pay-per-view windows, and free trials with limited access. DRM also helps combat password sharing and supports tiered subscriptions, directly boosting revenue.
Equally important, DRM enables global expansion. Delivering content to high-piracy regions is risky without protection, but DRM reduces that risk so operators can monetize new markets safely. It also supports content licensing to third parties, because rights holders know protection travels with the asset.
Reducing Operational Costs and Risk
While DRM requires upfront investment, it often lowers costs over time:
- Less legal spend: Platforms spend less chasing pirates through takedowns or lawsuits. DRM prevents leaks before they happen.
- Lower support costs: Unauthorized access often generates complaints. Enforcing DRM rules reduces account confusion and support tickets.
- Better retention: By keeping playback secure and reliable, DRM reduces churn tied to poor-quality knock-offs.
Quantitatively, the ROI is clear. Investing in video protection often pays for itself many times over. In one example, an anti-piracy solution costing just over $60,000 helped preserve nearly $300,000 in revenue—a return of more than 300%, according to ScoreDetect. These gains tend to grow as video catalogs expand and subscriber numbers increase. Protecting your programs from unauthorized use doesn’t just reduce piracy — it protects long-term business value.
Future-Proofing Monetization
The piracy threat evolves constantly. New methods like stream-ripping or credential abuse demand equally modern defenses. Current DRM systems are continuously updated with features like forensic watermarking and output protection, ensuring resilience as technology changes. Some providers are even experimenting with blockchain-based DRM for transparency.
Future-proofing also applies to licensing and compliance. Studios and regulators will only tighten requirements, not relax them. DRM helps operators meet evolving industry standards while reducing risks of non-compliance, fines, or reputational harm.
Conclusion
For OTT providers, DRM isn’t a technical box to tick—it’s a revenue assurance strategy. It:
- Prevents piracy and password abuse
- Secures licensing deals with premium content owners.
- Builds user trust and brand credibility
- Enables flexible and secure monetization (SVOD, AVOD, TVOD, hybrids)
- Opens global markets and licensing opportunities
- Reduces legal, operational, and churn costs
- Future-proof platforms against piracy and compliance risks
Analysts estimate U.S. streaming providers alone will lose $113 billion to piracy by 2027. With numbers like that, the business case for DRM is undeniable. A well-implemented DRM solution pays for itself many times over, turning content protection into a direct driver of ROI and long-term monetization.
See also: How DRM Protection on OnlyFans Keeps its Content Secure
