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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

To Invade Homes, Tech Is Trying to Get in Your Kitchen

Yet the so-called smart kitchen remains a tough sell. With the kitchen often a hub for families and friends, habits there can be hard to change. And many people see the kitchen and mealtimes as a have...

Subscriptions account for nearly 86% of consumer video spending

According to new research from Parks Associates, subscriptions now account for nearly 86% of total spending, up from about 50% of total online video spending in 2012. This percentage is likely to tren...

What I’m thankful for in sports media

Media research firm Parks Associates said there are more than 300 direct-to-consumer streaming services in the United States. From the article "What I’m thankful for in sports media" by Jeff Agrest...

Sharing your TV streaming passwords? Cable companies won’t stop you—yet

Neither of these methods work particularly well, at least for the kind of casual sharing that’s pervasive among friends and family members. A survey earlier this year by Parks Associates found that 18...

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