How does theatrical piracy impact streaming platforms and home video sales?

Pirated theatrical releases often end up on illegal streaming sites long before the official digital release, reducing demand for legitimate streaming subscriptions or Blu-ray/DVD sales. This undercuts the secondary revenue streams that are critical for many films, especially smaller productions. Consumers who watch pirated versions may never engage with the official release, depriving creators of earnings and diminishing the perceived value of legal content. The effect can be long-lasting, as pirated versions remain online indefinitely, competing with legitimate offerings.