> don't realize they're buying something illegal when they're paying a small percentage of what the services themselves would cost

Possibly, but not always. When Red Pocket and the other cheap mvnos came around, people were skeptical for the same reason - but it was all above board.

Pricing depends on sales channel and price. If you slum the dregs of shady marketplaces, you can get it for like 3 or 4 bucks a month. But in more mainstream settings, resellers often try to charge as much as 20 or 30 (or more) per month which isn't quite as drastic.

In the US, a few people in my mom's friend circle were raving about their 'magic box.' It cost a couple hundred but got TV, so they were happy. AFAICT it's some shady actors buying cheap android boxes and flashing some iptv software with service preconfigured. These people don't even know they're using iptv.

> It's like those folks that sold bootleg DVDs out of their trenchcoats in Manhattan - the defense of "gosh, I never knew buying a just-released-in-theaters Hollywood blockbuster for $5 by some dude on the side of Broadway was illegal" was never going to fly.

Is buying bootleg DVDs actually illegal? Isn’t the thing protected by copyright distribution? The seller is doing the distribution, I’m only buying it so it’s fine, no?

It’s a little different because it’s easy for these IPTV pirates to whip up slick branding. Something more like if a guy in a nice looking uniform for a DVD company you hadn’t heard of offered to sell you movies. Especially for folks who aren’t very internet savvy, it can be easy to miss the subtle tells that an offering isn’t legit (even more so when the service works just fine)

It's definitely a gray area in some countries.

A few decades ago our family got a 'proper' company with a shop front to install a satellite dish for us. We were then able to watch the Sky Tv from the UK even though we were not based in the UK (we still paid for a subscription but it was billed to a proxy address). This was the 'gray' part of what the company was selling.

What they also sold was sattv boxes with integrated decryption that would allow you to watch pretty much any European Pay TV (albeit not Sky, as they used a more robust encryption scheme) for free. They never mentioned the legality of it but they definitely advertised it as something they openly sold (in shop and in their ads).

More like buying the hacked DirecTV Sim cards.

>but I'm extremely skeptical of the notion that people don't realize they're buying something illegal when they're paying a small percentage of what the services themselves would cost.

Why? There's lots of cases where there's much-cheaper alternatives. I have a mobile phone plan that costs a small fraction of what most of my coworkers pay, because I didn't get a full-service unlimited plan with a subsidized new-every-2-years phone, for instance. Is my phone company hacking into the other company's system to give me service? Who knows, but I trust the government regulators and judicial system enough to assume this isn't happening, or else the company they're riding on the back of would have the service stopped. In reality, low-cost mobile services like this contract with the big carriers to use their spare capacity, and the service is basically 2nd-class too.

It's not a consumer's job to know how businesses operate internally or if they're doing something illegal.