While it is seldom noted publicly by streaming purveyors, about 27% of U.S. broadband households engage in some form of piracy or account sharing, Parks determined. The current revenue hit is $9.1 billion, according to the researcher’s new report,. As connected devices have become ubiquitous, piracy is focused on these newer conduits, with 20% of U.S. broadband households acknowledging using a piracy app, website or “jailbroken” device.
“Piracy is a complex issue that cannot be addressed with a single solution or by targeting a single use case,” said Brett Sappington, Senior Research Director and Principal Analyst, Parks Associates. “Most pirates also subscribe to at least one OTT service. They are not simply thieves looking to steal content but are video enthusiasts who engage with many different services.
Nevertheless, the Parks report cautions that all of the increased focus on streaming and the “aggressively promoted content” on newer platforms is apt to worsen the piracy problem. “Consumers will hit an upper limit to spending eventually,” Sappington said. “When that happens, they will resort to pirate tactics to get the content that they want, particularly for sports and other content where trials are not available.
Technical issues with log-in represent another pressure point, with the Parks study finding that 19% of U.S. broadband households experience account-related issues with an online video service. Frustrated by going in through the legal entryway, an increasing number of viewers — primarily male, under-35 and in lower-income situations — appear willing to jump the fence.
Caused by streaming fragmentation as people used to pay $10+ a month for Netflix/Amazon and will have to pay 10x that for the same content most people can't afford so they will share passwords and seek out content illegally
How do you lose something that wasn’t going to be purchased?