Piracy, account sharing cost US pay-TV, OTT firms more than $9BN in 2019 | Security | News | Rapid TV News
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An industry report from Parks Associates examining trends, business models, and best practices to identify and fight piracy has found that the phenomenon is rife with huge potential losses to pay-TV providers.

Parks piracy 15Jan2020The Video Piracy: Ecosystem, Risks, and Impact report calculates that the value of pirate video services accessed by pay-TV and non-pay-TV consumers will exceed $67 billion worldwide by 2023. Worryingly, it also suggests that if just a tenth of pay-TV subscribers discontinued pay-TV services in favour of video delivered by pirates, the 2023 loss to those operators could approach $6 billion.

The study also examined trends in content piracy and methods for stopping these emerging piracy methods and complements a 2019 Parks Associates report which estimated that of the $9.1 billion lost in 2019 to credential sharing by US video providers, about $2.5 billion, 28%, was lost due to piracy. This loss was part of an $8.4 billion overall loss to piracy in North America. The rest of the $8.4 billion was is attributed to other means, such as theft of video content from production, from distribution, from jail-broken consumer devices, and from hosting by other pirates.

A separate Parks Associates survey of US broadband households determined 5% used someone else's credentials to access a pay-TV service and 6% did so to access an online video service.

Looking at measures being taken by authorities, the report found that most of the publicly acknowledged antipiracy efforts by US pay-TV operators currently focus on detecting and reducing credential sharing and account abuse.

“More than 12.5 million pay-TV households accessed pirate video in the US in 2019, a low number compared with the Asia and Pacific region, where there are many more users but lower ARPU,” said Elizabeth Parks, president, Parks Associates commenting on the report. “Video providers are carefully monitoring this threat and establishing dedicated teams and solutions to respond to piracy.”