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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

On Hunt for Content, AT&T Closes Deal for Chernin’s Otter Media

With the purchase, Otter Media ranks as one of the most valuable media upstarts of the last decade, said Brett Sappington, senior director of research at Parks Associates, a firm that focuses on emerg...

Eero’s New Wi-Fi Routers Are Step One In Its Plan To Become A Smart-Home Giant

The early support for Thread may even hint at where Eero is going next. Tom Kerber, an analyst for Parks Associates, notes that one of the main features of Thread is that it’s decentralized. Instead o...

Apple TV will die so TV+ can live

Apple TV is another example of the company’s hardware strategy falling flat. According to Parks Associates figures from the first quarter of 2018, Amazon and Roku combined control more than 50% of the...

91% of viewers like streaming aggregation, survey says

Not only are consumers saying video aggregators are simple to navigate across, but they also value having a single bill for all their apps. OTT bundling is a key source of revenue for pay TV and other...

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