Chapter 1: Understanding the Impact of Short-Term Thinking

To begin, let me clarify that I do not support piracy in any form. I genuinely believe that actors and crew members in television and film deserve fair compensation for their hard work. While I do not endorse the choices made by those who engage in piracy, it is crucial to recognize the negative consequences that arise when business leaders overlook the harm they inflict. This is particularly evident in the streaming sector.

Since 2020, the streaming landscape has undergone significant changes. The rapid increase in content production has outpaced audience engagement. A lack of effective marketing has resulted in the premature cancellation of quality shows, depriving audiences of the opportunity to discover them. Iconic franchises have lost their value, and initiatives like password-sharing crackdowns have emerged. Additionally, companies are charging for subscriptions while simultaneously bombarding viewers with ads, creating an environment where consumers must pay extra to avoid them. Subscription fatigue has set in, forcing customers to choose which services to keep and which to let go.

Now, let's discuss piracy. Interestingly, prior to 2020, piracy was on the decline. However, the shifts in the streaming market post-2020 have led to a staggering 36% increase in piracy over three years, with hundreds of billions of views annually. It appears that piracy has become a lucrative business for these sites, generating approximately $2 billion in annual revenue.

This leads us to an important question: Why are customers flocking to piracy sites despite knowing the legal and ethical implications? The answer lies in the rampant price increases across the streaming industry. Consumers are feeling the financial squeeze, yet companies continue to raise prices even as their own costs decrease. It is estimated that 53% of the inflation observed between Q2 and Q3 of 2023 was driven solely by corporate profits. In the short term, corporations may seem to benefit, but at what cost?

Ultimately, the flourishing of a business should be mutual. While financial statements might show profit, the overall impact is damaging to everyone, including the corporations themselves. Rising inflation and living costs force consumers to make difficult choices, heightening their stress levels, which are already alarmingly high at 80% burnout. This increased desperation drives many to choose piracy over legitimate streaming options, as they prioritize survival over entertainment. When faced with the option to survive or indulge in entertainment, many choose the former. This sentiment leads to a widespread attitude of "to hell with the greedy corporations!"

As streaming companies grapple with these issues, they face further complications. Subscriber counts decline, resulting in reduced profits. Instead of addressing the root problems facing customers, these companies often respond by placing even more pressure on them, exacerbating the situation.

Section 1.1: The Ripple Effect of Short-Sighted Strategies

As profits dwindle, companies exert more pressure on employees to produce content more rapidly, hoping to capture consumer attention. However, this strategy backfires, as quality inevitably suffers when production is rushed. The decline in quality dissuades customers, further fueling dissatisfaction.

Moreover, the heightened pressure on staff contributes to increased stress levels among employees, many of whom may already be experiencing burnout. When employees can no longer cope with the demands placed upon them, they disengage, resort to quiet quitting, or even retaliate. This has been evidenced by the numerous strikes occurring within the streaming industry, which only escalate costs for these companies.

Subsection 1.1.1: The Financial Toll of Piracy

Chapter 2: Fostering a Culture of Contribution

If companies genuinely want to cultivate loyalty among customers and employees, they must take steps to improve the world around them. Even a modest commitment of 1% or 2% of profits toward positive change can significantly enhance a company's moral standing. Research indicates that businesses demonstrating real impact can experience sales growth of over 15%.

This commitment must be sincere and result in tangible change rather than mere greenwashing. When customers and employees witness genuine efforts to make a difference, it fosters strong loyalty. People are more inclined to support organizations that address their concerns and contribute to meaningful change. This is the essence of creating a regenerative legacy—it fundamentally transforms the game and makes it virtually impossible for competitors to keep up.