0 Shares 2194 Views

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 Ultimate CDN (Content Delivery Network) Guide
CDN
3344 views
CDN
3344 views

The Ultimate CDN (Content Delivery Network) Guide

Nadia Benslimane - August 3, 2020

The Ultimate CDN Guide- Everything About Content Delivery Network You probably know what CDN (Content Delivery Network) stands for. You may also be aware of its full definition,…

The Essential CDN Glossary
CDN
8692 views
CDN
8692 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…

How CDN Providers are Meeting Surging OTT Demand
CDN
55 views
CDN
55 views

How CDN Providers are Meeting Surging OTT Demand

Tushar Sonal - March 2, 2021

CDN Providers and Surging OTT Demand The OTT, or Over-the-Top video content is a trend that’s been growing phenomenally over the last few years.  According to a…

Beyond Traditional Content Delivery: Data Streaming Trends with Apache Kafka
Uncategorized
97 views
Uncategorized
97 views

Beyond Traditional Content Delivery: Data Streaming Trends with Apache Kafka

Elif Ak - February 23, 2021

Beyond Traditional Content Delivery: Data Streaming Trends with Apache Kafka With the acceleration of lockdown caused by the pandemic disaster, our data-consuming trend is rapidly changing. The…

Laravel Telescope for Easy Developing
Software Learning Center
136 views
Software Learning Center
136 views

Laravel Telescope for Easy Developing

Tolga Karabulut - February 15, 2021

Laravel Telescope for Easy Developing Hello everyone 👋 Today we will talk about a package that makes things a lot easier when developing. Our package is called…

Most from this category