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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

Charter, ESPN Spearheading Efforts to Crackdown on Cable-TV Password Sharing

Parks Associates estimates that the pay-TV industry will lose $9.9 billion in revenue by 2021 from TV multiscreen password sharing, up from $3.5 billion this year. This is an important loss particular...

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Netgear unveils $330 Orbi Outdoor Satellite for backyard Wi-Fi

The Orbi creates a dedicated 5-gigahertz, 1.7-gigabit per second channel between the base Orbi and the extended unit so you can get full internet access for devices that connect to the satellite Orbi...

WEC 2018: SVODs Not the Enemy of Pay-TV

Instability in pay-TV through the evolution in video has been at the top of concerns across cable, but the fall in subscribers isn’t totally unexpected considering other shifts in the US. Industry res...

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