How does movie and TV show piracy affect the entertainment industry?

Among the most widespread digital piracy examples is illegal movie and TV show streaming. Pirated content is uploaded onto unauthorized platforms within hours of release, leading to huge financial losses for production houses. Piracy reduces box office revenue, discourages investment in new projects, and affects job opportunities within the creative industry. Popular streaming platforms often face competition from illegal sites offering free content, which lures viewers away. Additionally, piracy reduces the quality of the viewing experience with poor sound, visuals, and security risks. The entertainment industry continues to lose billions annually because of this widespread issue.