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OTT Video Business Models: 55% Are Subscription-Only, Says Parks

In a recent decision, the U.S. Court of Appeals for the 9th Circuit upheld industry participants contention that subscribers’ sharing of their OTT video service passwords without the consent of their providers constituted a crime under the U.S. Computer Fraud and Abuse Act, Parks points out in a news release. The market research company estimated that OTT service providers lost more than $500 million in revenue due to password sharing in 2015.

That said, companies are unlikely to pursue legal actions, at least not against individual subscribers, according to Parks. “There is an enormous amount of change going on in the OTT space right now, with new OTT video services entering the market each month. Many of these services have subscription as at least part of their business model,” said Parks’ senior director of research Brett Sappington in a press release about Parks’ OTT video business models research.

From the article "OTT Video Business Models: 55% Are Subscription-Only, Says Parks" by Andrew Burger.

Previously In The News

More Americans now pay for streaming video content than cable television, survey finds

Netflix is also preparing to crackdown on illegal account sharing via new artificial intelligence software, which will be able to analyze which users are logged in and then flag shared accounts. Th...

Amazon Opens Prime Video To Monthly Memberships In A Challenge To Netflix

Surveys by consulting firm Parks Associates found that many people who signed up for Prime Video's free 30-day trial were not converting to subscribers. About 34% of people surveyed by Parks Associ...

Millennials are the generation most likely to use another person's Netflix account, with 18 percent admitting to illegal streaming, survey finds

The move is expected to recoup major money for the video streaming giant: a separate report from Parks Associates found that by 2021, credentials sharing will account for $9.9 billion of losses in pay...

Netflix Is King Of Paid Streaming, Study Says

Netflix beats all its streaming-video rivals both on number of members and success rate of keeping them signed up, a new study said Thursday. But the rest of the over-the-top market doesn’t need to...

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