Consumer group Choice says Foxtel only has itself to blame for the number of Australians watching pirated versions of hit show Game of Thrones, which set a new record for illegal downloads on Monday night.

The season four finale was downloaded roughly 1.5 million times in the 12 hours after the show went to air, according to internet tracking site TorrentFreak.

That makes it the most pirated program in history, and thousands of Australians were among those watching.

Foxtel says about 500,000 Australians watch each episode via a paid subscription, while another half a million download it illegally, mostly by sharing episodes with other users through a process known as torrenting.

Foxtel says the people who do the downloading are thieves, and is urging the Government to enact legislation that will make it much more difficult to illegally download popular programs, video games and music.

But Choice's Erin Turner says Foxtel "has an outdated business model" and can only blame itself.

It expects people to pay for a whole range of products when they may want [just] one. You're getting Real Housewives of every city, rather than just Game of Thrones, which you want. Choice's Erin Turner

"It expects people to pay for a whole range of products when they may want [just] one. You're getting Real Housewives of every city, rather than just Game of Thrones, which you want," she told 7.30.

"It also locks people into viewing content on particular devices. They're developing this. Ultimately the problem is there are few competitors to Foxtel in Australia.

"There are few choices. If you want to watch Game of Thrones for example, Foxtel is the only place to go."

Illegal downloader Albert says the market is being fed by Foxtel's expensive subscription deals, and the exclusivity arrangement with program maker HBO, which forced the show off legal download sites like iTunes.

"We're closed out, and if we're being offered another option people are going to take it," said Albert, who asked that the ABC refrain from using his surname in case copyright holders decided to take legal action against him.

He had previously paid to watch each episode on iTunes, but that is no longer an option.

"I do pay money to watch things like House of Cards, and Orange is the New Black. I pay money to Netflix. I pay to watch American television shows, like Saturday Night Live on Hulu," he said.

"I do my duty, using what little money I make as a student, but when something is not being made available at a cost-effective way, and they’re putting 1,001 hurdles in front of us, then people will illegally download."

His argument is dismissed by Foxtel's Bruce Meagher.

"I can't think of any other circumstance where you would say 'I think you charge too much for this product therefore it is legitimate to steal it'," he said.

"There's a moral disconnect there which I just don't get."

Game of Thrones was available at a premium for Foxtel subscribers hours after the program aired in the US. Fans could legally download the full season on Google Play a day later for $2.99 an episode.

Brandis signals new laws against piracy

Foxtel wants the Federal Government to introduce laws that would force internet companies, or ISPs, to block illegal download methods, and send warning letters to offenders.

I can't think of any other circumstance where you would say 'I think you charge too much for this product therefore it is legitimate to steal it'. Foxtel's Bruce Meagher

Attorney-General George Brandis has already signalled the Government is being swayed by Foxtel's argument.

"Australia, I am sorry to say, is the worst offender of any country in the world when it comes to piracy," Senator Brandis told the Senate.

"I am very concerned that the legitimate rights and interests of rights holders and content creators are being compromised by that activity."

Steve Dalby from internet service provider iiNet says that is an ominous statement.

"The Government has not specifically stated that they are going to do anything other than give very strong hints that they are either going to block websites or they are going to require ISPs to send notifications to their customers," he said.

ISPs warn piracy laws won't stop illegal downloaders

In 2012 iiNet won a High Court battle against US film studios who had argued that ISPs were obliged to stop customers from pirating studio content.

New legislation could see a re-run of that issue, and would force companies like iiNet to turn in their own customers.

Australia, I am sorry to say, is the worst offender of any country in the world when it comes to piracy. Attorney-General George Brandis

"ISPs are not the internet police. We don't want to be internet police. We are not good at being internet police and if we have to change our business model because someone else's business model is broken, it's nonsensical to think that way," Mr Dalby said.

ISPs say that new rules will not be effective, because savvy internet users will outsmart the rules.

They can already legally bypass Foxtel by pretending their computer is in another jurisdiction.

"Virtual private networks or VPNs are technological measures that people can use to make it appear like they’re an internet user in the USA or UK," Ms Turner said.

"Through that what people are doing, is legally purchasing a Netflix account, for example, paying $12 to $15 a month to access an all-you-can-eat service.

"They’re paying content providers and developers, they’re just not doing that as though they are an Australian consumer ... ultimately a good solution is affordable content in Australia, but until that becomes available we recommend it."

Choice's website has advice and instructions on accessing content via VPNs.