Thursday, July 09, 2015

OTT credential-sharing to cost $500MN in revenue in 2015

It's common for families to share log-in details for services like HBO Go, but that's bad news for programmers: over-the-top (OTT) video service credential sharing will cost the industry $500 million in direct revenues worldwide in 2015.

In a recent survey Parks Associates found that 6% of US broadband households use an OTT video service that is paid by a person living outside of the household. That number increases among millennials: 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. Across the board, few respondents expressed guilt or embarrassment over using someone else's video service credentials.

Glenn Hower, research analyst at Parks Associates, commented: "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."

From the article "OTT credential-sharing to cost $500MN in revenue in 2015" by Michelle Clancy.

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