Italy takes down piracy network that allegedly caused $300 million losses to Netflix and other streaming companies.

Italian authorities have dismantled an alleged digital piracy network accused of causing around €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 investigators say enabled users to access subscription-based content via illegally decrypted streams.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. According to investigators, these access codes were refreshed every three minutes and distributed to paying users.The operation, called 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 reportedly secured the seizure of servers containing decryption data and the app's source code.The architecture that underpinned CINEMAGOAL was designed to evade traditional detection methods, authorities told Reuters. Instead of providing direct links to streaming platforms, users would access content via intermediary servers in foreign countries, obscuring the visibility of identifiable IP addresses associated with viewing sessions.Investigators described the operation as different from conventional illegal streaming services. Instead of redistributing content from unauthorised libraries, the system allegedly relied on active credentials from legitimate subscriptions.Authorities said more than 70 individuals across Italy acted as resellers, offering annual packages priced between €40 and €130. Payments were reportedly accepted through cryptocurrency and accounts held abroad or under fictitious names. The reseller network retained part of the earnings while transferring the remainder to organisers, according to investigators.Italian authorities also said the wider network operated traditional illegal IPTV services, commonly referred to in Italy as “pezzotto”, alongside the CINEMAGOAL app. The Guardia di Finanza said that 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 the analysis of seized material continues.The investigation is examining allegations including audiovisual piracy, unauthorised access to computer systems and computer fraud. Authorities noted that criminal responsibility would be determined only after final judicial proceedings. Officials also said the estimated €300 million in damages remains provisional and could change as evidence from confiscated systems is reviewed.The case comes amid wider efforts by Italian authorities to address illegal IPTV and digital piracy, as regulators and broadcasters have increased scrutiny of unauthorised streaming networks in recent years.