PARKS: TOTAL PIRACY LOSSES FROM STREAMING SERVICES TO REACH $113BN BY 2027
Piracy rates for US streaming services are expected to rise from 22% in 2022 to 24.5% in 2027, according to Parks Associates.
In an announcement at NAB in Las Vegas this week, the research firm said it was estimating a cumulative loss from piracy of $113 billion by the end of 2027.
Parks’ new study Streaming Piracy Market & Ecosystem Strategies shows visits to pirate hosting websites increased by 31% 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% since 2019.”