Law enforcement has shut down a sophisticated illegal streaming operation that provided unauthorized access to Sky Sports and Sky Cinema. An estimated four million UK households now rely on illicit streaming services to watch premium content for free or at a reduced cost compared to Sky's official deals.

Sky has warned that those who engage in illegal streaming to watch live sports, blockbuster films, or popular TV series could face severe consequences. A recent example is the sentencing of a Birmingham man involved in such an operation. In mid-January, 55-year-old Gary McNally from Acocks Green was sentenced to two years and nine months in prison at Birmingham Crown Court after pleading guilty to two charges under the Fraud Act 2006.

McNally operated an illegal IPTV service called Each Online between November 2017 and June 2020. At its peak, the service streamed a World Championship boxing match from Sky to approximately 2,000 subscribers.

IPTV (Internet Protocol Television) refers to TV services delivered via the internet. While legitimate services like Sky Stream and Sky Glass use IPTV technology, the term is often exploited by fraudsters promoting illegal streaming operations. These services are commonly accessed through websites, social media, or devices such as Amazon Fire TV Sticks and Roku dongles.

McNally came to Sky’s attention in June 2020 after an investigation revealed he was misusing legitimate NOW accounts to access Sky’s content illegally. NOW, a streaming service owned by Sky, offers contract-free access to its premium channels. Sky reported the case to West Midlands Police, leading to warrants being executed at two properties in Birmingham in September 2021. During the search, police seized digital equipment, including laptops, hard drives, and NOW TV devices believed to be used for the illicit IPTV service. McNally was arrested on charges of fraud and intellectual property violations. Two other individuals were also detained—one was released without further action, while the other remains under investigation.

Following the sentencing, Matt Hibbert, Sky’s Group Director of Anti-Piracy, emphasized the serious consequences of engaging in illegal streaming and praised the West Midlands Police for their efforts in dismantling the operation. The police reaffirmed their commitment to combating digital piracy and warned others against getting involved in such illegal activities.

The Federation Against Copyright Theft (FACT) highlighted that piracy is not a victimless crime. According to the Intellectual Property Office, copyright infringement costs the UK economy an estimated £9 billion annually and results in the loss of 80,500 jobs. FACT CEO Kieron Sharp cautioned that illegal streaming services expose users to malware, scams, and data theft, with no protection when things go wrong. He urged consumers to stick to legitimate providers for their entertainment.

France’s regulatory body Arcom has estimated that online piracy results in annual losses of €240 million (£200 million) for the sports industry.

McNally’s sentencing is part of a larger crackdown on illegal streaming in the UK. Earlier this year, Sonny Kanda from Halifax was jailed for two years after defrauding legitimate providers of more than £108,000 between 2020 and 2022. In another case, Jonathan Edge from Liverpool received a three-year and four-month sentence following a private prosecution by the Premier League. Previously, five other men were sentenced to a combined total of more than 30 years in prison for similar offences.

As part of a nationwide operation, police worked with FACT and Sky TV to shut down 3,000 online ads promoting illegal IPTV services. Authorities issued cease-and-desist orders to 40 individuals across the UK, from Essex to Dundee, and made three arrests. Additionally, police sent warning letters to households in 15 areas, instructing them to stop using illegal streaming services. Those who ignored the warnings and continued streaming illegally were later arrested.