Advanced Television

Forecast: US OTT piracy losses to top $113bn by 2027

April 19, 2023

By Colin Mann

According to research firm Parks Associates, by the end of 2027, there will be a cumulative loss to piracy of $113 billion (€103bn) for streaming video providers serving US consumers. Parks’ latest forecast reveals piracy rates for US streaming services in film and television programming are expected to rise from 22 per cent in 2022 to 24.5 per cent in 2027. In addition, the value of fraudulent advertising delivered online to media and entertainment consumers may exceed $700 million in 2027.

The new study, Streaming Piracy Market & Ecosystem Strategies, provides a comprehensive view of piracy threats and the evolution of anti-piracy techniques along with five-year forecasts of revenue loss in the US market for video service providers. Parks Associates research shows visits to pirate hosting websites increased by 31 per cent in 2020 and industry leaders seek new piracy policies to stem revenue losses.

“While there is some optimism that emerging countermeasures and best-practices may see piracy begin to plateau by 2027, there is no consensus among stakeholders as to when it may begin to decline,” said Steve Hawley, Contributing Analyst, Parks Associates, and Managing Director of the Piracy Monitor industry newsletter and consultancy. “This research provides a much-needed understanding of the issues at hand and the technologies and approaches available to fight piracy.”

Parks Associates’ research indicates that video service providers may reduce the motivation for password sharing by restricting the number of users who can stream the service simultaneously. However, this will have a negative impact on the user experience for online video users and act as a deterrent to password sharing. Netflix is introducing a feature that will allow users to share accounts for an extra fee, and Adobe launched ‘Prime Account IQ’ to help providers identify when viewers are sharing credentials.

“The number of households who share account credentials and consume pirated content is rising. People are increasingly looking for new ways to satisfy entertainment needs,” said Sarah Lee, Research Analyst, Parks Associates, and contributor to the report. “Participation in sharing account credentials increased 48 per cent since 2019.”

Categories: Articles, Consumer Behaviour, Content, Markets, Piracy, Research

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