> 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.