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OTT password sharing costs industry $500 million

Source: Parks Associates

Source: Parks Associates

OTT video service credential sharing will cost the industry $500 million in direct revenues worldwide in 2015, according to new research from Parks Associates.

The report shows 6% of US broadband households use an OTT video service that is paid by a person living outside of the household. It also analyses usage and impact of live-streaming applications like Meerkat and Periscope, which are used to “share” broadcast events such as Game of Thrones episodes and the Mayweather-Pacquiao fight.

“Live-streaming usage has garnered media attention recently, but credential sharing is also a popular form of piracy in the connected world, one that has received varying responses from service providers and content owners,” comments Glenn Hower, Research Analyst, Parks Associates. “Credential sharing has a measurable impact on video services, particularly in the OTT video service area, where young subscribers are active. The impact on OTT video revenues is especially troublesome as OTT providers are investing large sums of money to boost their original content offerings.”

The Cost of Piracy finds 20% of OTT users aged 18-24 use an OTT video service paid by someone outside the home, the highest of any age group. Only 10% of OTT subscribers 25-34 admit to this behaviour.

Digital Natives and Millennial Minds: Understanding the Evolving Consumer

Christy Tanner, SVP & GM, CBS Interactive, will be delivering a keynote address, ‘Digital Natives and Millennial Minds: Understanding the Evolving Consumer’, at this year’s TVXperience World (October 6th-7th 2015, Hilton Times Square, New York, NY) 

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