Report: Video Piracy will cost OTT And Pay-TV Companies Up To $12.5 Billion By 2024 As Annual Loss

Video piracy has become a real issue for OTT services and pay-TV providers and the problem will only get worse in the years to come. 

Brett Sappington, senior research director, and principal analyst at Parks Associates explained: “Piracy is a complex issue that cannot be addressed with a single solution or by targeting a single-use case…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

What Numbers Say:

According to The 360 Deep Dive Account Sharing and Digital Piracy report from Parks Associates, it is estimated that video piracy will cost pay-TV and OTT companies $9.1 Billion as an annual loss this year. By 2024, this sum is expected to grow by 38% to reach $12.5 Billion, which is an alarming threat to the industry.

The same research showed that consumers who report viewing an OTT video service for free but without ads are 22% more willing to subscribe to OTT services, x 3 times as likely to use ad-supported services, and x 2 times as likely to use transactional online video services.

Moreover, growth in connected device ownership has shifted the focus of pirates towards the online video ecosystem—with one-in-five U.S. broadband households using a piracy app, website or jailbroken device

Additionally, men, consumers under age 35, and households with low annual incomes are more likely to pirate content at a disproportionate rate.

Overall, 13% of consumers admit using a piracy website or app, while 19% of US broadband households experience account-related issues related to an online video service. Parks Associates also found that penetration of paid OTT services rose up by 13% over 2018, while free services part has grown by 23%.

 “Growing subscriber numbers and an increased number of services signal a very healthy OTT market, but more services and aggressively promoted content could incite more piracy over time,” Sappington stated. “Consumers will hit an upper limit to spending eventually. When that happens, they will resort to pirate tactics to get the content that they want, particularly for sports and other content where trials are not available.”

Source: Parks Associates

You may be interested

The Essential CDN Glossary
CDN
7447 views
CDN
7447 views

The Essential CDN Glossary

Nadia Benslimane - November 21, 2019

Why Have We Decided To Create a CDN Glossary? Whether you are new to the world of CDN, or have been involved in it for years, there…

Agile Approach To The Competitive Analysis: VRIO-A
New Features
229 views
New Features
229 views

Agile Approach To The Competitive Analysis: VRIO-A

Mesut Mutlu - July 8, 2020

What is VRIO-A? According to research conducted by Statista in 2018, the number of e-commerce websites in France is regularly increasing. The graph below shows that every…

What’s The Relationship Between CDN Content-as-a-service ?
CDN
1171 views
CDN
1171 views

What’s The Relationship Between CDN Content-as-a-service ?

Tushar Sonal - June 12, 2020

The Relationship Between CDN and Content-as-a-service What is the Content as a service? The Content as a Service (CaaS) or Managed Content as a Service (MCaaS) is…

Webinar Recap- The State Of Private CDN In 2020
CDN
692 views
CDN
692 views

Webinar Recap- The State Of Private CDN In 2020

Tushar Sonal - June 9, 2020

Introducing - Our Webinar Hosts Dan Rayburn - Streaming Industry Expert, Conference Chairman at NAB summit Serkan Sevim - CEO, Medianova We are going to discuss the…

Most from this category

The Essential CDN Glossary
CDN
7447 views
7447 views

The Essential CDN Glossary

Nadia Benslimane - November 21, 2019
Bandwidth Usage Forecast with Machine Learning
CDN
1427 views
1427 views

Bandwidth Usage Forecast with Machine Learning

Ahmet Haydar Ornek - May 13, 2020