Pirates Poised to Pluck More From Pay-TV, OTT

Piracy and account-sharing are taking a sizable bite from operators' content revenue, with incumbents and OTT startups feeling the financial hurt.

Alison Diana, Editor, Broadband World News

July 17, 2019

1 Min Read
Pirates Poised to Pluck More From Pay-TV, OTT

Video piracy and account-sharing will hit both OTT and pay-TV providers even harder over the next few years, costing them a combined $12.5 billion in 2024, up 38% from this year's loss of $9.1 billion, Parks Associates predicts.

Curently, more than one-quarter, or 27%, of US broadband households engage in some type of video piracy or account-sharing, the research firm said. Plus, 13% of consumers surveyed make use of a piracy website or app, Parks said.

{Image 1} "Piracy is a complex issue that cannot be addressed with a single solution or by targeting a single use case," said Brett Sappington, senior research director and principal analyst at Parks Associates in a statement. "Most pirates also subscribe to at least one OTT service. They are not simply thieves looking to steal content but are video enthusiasts who engage with many different services. OTT services could better reach these consumers through ad-based content, which also aligns with these users' general belief that 'movies/music should be given away for free.'"

A study by Cartesian, developer of a streaming video credential-sharing and prevention solution, also found that 27% of consumers used either borrowed or stolen credentials to tap into SVoD services. Of those people, 42% indicated they would be willing to pay for this content if it was not easily accessible.

Of those who use someone else's credentials, 56% said they already "pay enough" for content, while 27% use others' log-on info because it's "easy and convenient," Cartesian's December 2018 report found.

For more details, see this story on our sister site, Broadband World News.

— Alison Diana, Editor, Broadband World News

About the Author(s)

Alison Diana

Editor, Broadband World News

Alison Diana always dreamed of being a veterinarian – until she saw a documentary of a vet removing an alligator's eye. With a love of English but no desire to be a teacher, Alison had no idea what she would do with her love of writing until she earned a four-year, full-tuition journalism scholarship to the School of Visual Arts and discovered feature writing.

An internship at Rolling Stone encouraged Alison to mix her enjoyment of music and writing until she answered an ad for a position at a B2B channel publication. And so her 25-year career covering solution and service providers, enterprises and small businesses using technologies from HPC and UC&C to cloud and security began.

Alison spent 10 years at CRN, before launching a successful freelance career writing for publications including InformationWeek, Bloomberg, Redmond Channel Partner, numerous TechTarget sites, and Florida Today. She later rejoined UBM as part of the DeusM team before heading InformationWeek's health IT section. Alison – who lives on Florida's Space Coast with her husband, teen daughter, and two spoiled cats – became part of the Light Reading team in 2016. As editor of UBB2020, she looks forward to working with the ultra-broadband community to provide year-round coverage of a market that meets at the annual Broadband World Forum, and to further cement ties among the individuals and organizations that create this thriving industry. 

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