Italian authorities have dismantled an alleged digital piracy network that caused approximately €300 million ($348 million) in losses to rights holders, including Netflix, Disney+, Spotify, Sky, and DAZN. According to a Reuters report, the operation targeted a system built around an app called CINEMAGOAL, which enabled users to access subscription-based content via illegally decrypted streams.
How the Piracy System Operated
Italy's financial police, the Guardia di Finanza, told Reuters that the network used foreign servers and virtual machines operating within Italy to capture and retransmit access credentials from legitimate streaming subscriptions registered under fictitious identities. These access codes were refreshed every three minutes and distributed to paying users, making detection difficult.
The operation, named Operazione Tutto Chiaro, involved more than 100 searches and seizures across Italy, as well as coordinated actions in France and Germany, supported by Eurojust. Prosecutors in Bologna secured the seizure of servers containing decryption data and the app's source code.
Unique Architecture to Evade Detection
The CINEMAGOAL system was designed to evade traditional detection methods. Instead of providing direct links to streaming platforms, users accessed content via intermediary servers in foreign countries, obscuring identifiable IP addresses associated with viewing sessions. Investigators described this as different from conventional illegal streaming services, which redistribute content from unauthorized libraries. Instead, the system relied on active credentials from legitimate subscriptions.
Reseller Network and Payment Methods
Authorities said more than 70 individuals across Italy acted as resellers, offering annual packages priced between €40 and €130. Payments were accepted through cryptocurrency and accounts held abroad or under fictitious names. The reseller network retained part of the earnings while transferring the remainder to organizers.
Italian authorities also noted that the wider network operated traditional illegal IPTV services, commonly referred to in Italy as “pezzotto”, alongside the CINEMAGOAL app. Around 1,000 identified users of the piracy system will receive administrative fines ranging from €154 to €5,000. Investigators indicated additional users may be identified as analysis of seized material continues.
Legal Proceedings and Damages
The investigation is examining allegations including audiovisual piracy, unauthorized access to computer systems, and computer fraud. Authorities emphasized that criminal responsibility would be determined only after final judicial proceedings. The estimated €300 million in damages remains provisional and could change as evidence from confiscated systems is reviewed.
This case comes amid wider efforts by Italian authorities to address illegal IPTV and digital piracy, as regulators and broadcasters have increased scrutiny of unauthorized streaming networks in recent years.
