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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

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It's the embodiment of "If you can't beat 'em, join 'em": Researcher Parks Associates released data today showing that 21 percent of pay TV subscribers in the U.S. also subscribe to a streaming servic...

Half Of U.S. Homes Have Access To SVOD Services, Says Nielsen

That 50 percent figure gets a lot of play: In April 2015, Parks Associates reported that 50 percent of U.S. broadband-enabled homes had an SVOD subscription. In March 2016, NPD Group reported that 52...

Netflix, Amazon, Hulu Leading In OTT Subscriptions, Finds Parks

The researchers at Parks Associates have come up with a tally of the most popular over-the-top (OTT) video services as ranked by the number of subscribers. While the numbers are estimates from the fir...

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