The news: Adalytics uncovered over 9,000 cases of copyright infringement on YouTube—spanning full-length films like “Sinners,” streaming exclusives like “Extraction 2,” and live TV such as NCAA games—totaling 250 million views.

Adalytics found that YouTube billed advertisers—including Disney, HBO Max, and Hulu—for impressions on pirated or harmful content, often without providing clear visibility into where the ads appeared or issuing reliable refunds. One agency buyer said that only ~1% of spend was refunded for ads placed alongside clear copyright violations.

Another buyer said YouTube even serves brand lift surveys to users of pirated content, meaning studios may unknowingly pay to retarget and analyze viewers who watched their films illegally.

Why it matters: YouTube’s systems are letting pirated content slip through, creating financial, legal, and reputational risks for advertisers and IP holders.

• YouTube’s algorithm sometimes recommends pirated films like “Captain America: Brave New World” or “Lilo & Stitch,” unintentionally promoting copyright infringement; the latter film earned $361 million globally on opening weekend but was pirated on YouTube, amassing over 200,000 views and potentially costing millions in lost sales.
• Advertisers lose visibility after takedowns; YouTube erases metadata, making it difficult for them to audit where their ads appeared. YouTube reports often redact video/account data, leaving marketers in the dark. Many ads appear as “Total: Other” placements with no traceability.
• Entertainment industry groups like the Motion Picture Association have expressed concern, citing piracy’s $1 billion annual impact on the North American box office.
• And contrary to popular belief, many consumers (21%) don’t even want to come across pirated/bootleg content. While that lags behind categories like misinformation (44%) and adult content (37%), it’s still significant.

YouTube’s stance: The UGC giant declined to clarify to The New York Times how many removed videos were monetized or how much ad revenue was generated before takedown.

YouTube’s Content ID flagged 2.2 billion videos in 2023, and rights holders allowed approximately 90% to remain, often opting for a revenue share rather than removal. Content ID is effective when used, but scammers exploit platform lag times, often originating from countries like India, Vietnam, and Pakistan.

Our take: Social media (53%) and digital video (40%) are the most concerning brand safety areas for US marketers—so these YouTube issues can’t come as a total surprise to most marketers, but it’s a black eye nonetheless.

YouTube’s scale and automation make it an appealing ad channel—but when pirated content slips through, brands and studios bear the cost. Until transparency and enforcement improve, advertisers should scrutinize placements more closely and push for stricter safeguards.