Image credit: Viaccess-Orca
Research
just in from renowned tech market research and consulting company,
Parks
Associates,
predicts that this year, pay-TV and OTT companies will lose a
whopping $9.1 billion due to video piracy and the sharing of
accounts. And to makes matters worse, “this number will grow to
$12.5 billion in 2024, a [staggering] growth rate of 38%” [1].
Image credit: ZD Net
Moreover, the firm's report, “360
Deep Dive: Account Sharing and Digital Piracy,” also notes the the
clear and present financial danger of the current situation: “the
rise of online video has shifted the economics of the video content
industry... thus sparking an evolution in the thinking and behavior
of the people looking to steal content. Illegal live streaming,
app-based sharing, and account sharing are now rampant in the online
content marketplace” [2].
Image credit: Forbes
High Tech Boosting the Pirate Economy
The massive tech revolution and newfound methods for content distribution are empowering consumers so they can enjoy video streaming on most connected devices, from where ever they are. In fact, globally, during 2019: “video streaming subscribers [outnumbered] paid-TV subscribers, with the former accessing over 500 licensed online video portals” [3].
"20% of
US broadband households are using a piracy app, website, or
jailbroken device" [2]
The massive tech revolution and newfound methods for content distribution are empowering consumers so they can enjoy video streaming on most connected devices, from where ever they are. In fact, globally, during 2019: “video streaming subscribers [outnumbered] paid-TV subscribers, with the former accessing over 500 licensed online video portals” [3].
Image credit: Park Associates
The knock-on effect to this has brought
about super-fast expansion, and skyrocketing consumer demand, thereby
enabling the industry to produce: “original content at an
unprecedented rate and creating new and innovative ways for consumers
to watch their favorite sports around the world, their favorite
television series, their favorite movies, and countless other
consumer choices” [3].
Yet, apart from the huge benefits of:
“rapidly adapting creative and technology industries, which [in the
US alone], employ up to 2.6 million workers... and provide $229
billion in annual economic benefits to the U.S. Economy” [3], there
is also a massive downside.
Perceptions in US Households
Perceptions in US Households
Image credit: Park Associates
“Currently 27% of US broadband households engage in some form of piracy or account sharing” [4]
As the proliferation of access to
legal streaming has come to the fore, so has digital piracy. - Now,
criminal players have adapted their strategies to benefit from the
latest consumer behaviors and innovative technologies. Indeed:
“research indicates that more than 80% of piracy is attributable to
streaming. Illegal streaming is enabled by piracy devices and apps,
which have overtaken BitTorrent and other download-based technologies
that deliver unauthorized live television shows and video on demand
over the internet [3].
The Complexities of Piracy
As Parks Associates' Principal Analyst and Senior Research Director, Brett Sappington, notes: “Growing subscriber numbers and an increased number of services signal a very healthy OTT market, but more services and aggressively promoted content could incite more piracy over time. Consumers will hit an upper limit to spending eventually. 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” [1].
Image credit: theregister.co.uk
As Parks Associates' Principal Analyst and Senior Research Director, Brett Sappington, notes: “Growing subscriber numbers and an increased number of services signal a very healthy OTT market, but more services and aggressively promoted content could incite more piracy over time. Consumers will hit an upper limit to spending eventually. 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” [1].
The Main Culprits?
Interestingly, Park Associates' study
indicates that the demographics which subscribe to OTT services the
most frequently, are also those who top the list for account sharing
or piracy. Indeed, households with low yearly incomes, and male
consumers age 35 and under, show a disproportionate rate of
engagement [1].
Clearly, piracy is an
intricate issue which can only be fought using multiple advanced
strategies.. And as Sappington points out: “Most pirates 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. OTT services could better reach these consumers
through ad-based content, which also aligns with these users' general
belief that 'movies/music should be given away for free” [4]. - So
step forward OONA Free ad-based
OTT TV.
“Penetration
of OTT paid services was up 13% over the past year, while free
services increased 23% over 2018” [1]
The Low Down on OONA
OTT TV's Solution to Drowning the Video Pirates Once & For All?
From the perspective of renowned
digital leader and AI expert, Christophe Hochart, the CEO and Founder
of OONA Global: the solution to piracy is likely to be a combination
of the smart use of Blockchain, that is: applying video
virtualisation tech along with smart contracts to transact and
control videos as digital assets within a blockchain itself; and
Futuristic Next Generation Live and On Demand AVOD OTT platforms such
as OONA Free Mobile TV, which empowers users with a lifetime
guarantee of unlimited, exciting entertainment over hundreds of top
local and international channels.
Still in Development
Hochart points out that: “Video
virtualisation tech along with smart contracts to transact and
control videos as digital assets within a blockchain itself, is
currently in the developing stage. - However, the results look very
promising, so it may only be a matter of time before it will be
implemented so that virtual video is embedded within every blockchain
block, and smart contracts are utilised to monitor the transactions
connected with video files.”
Being Rewarded With a Virtual
Currency
OONA, which actually rewards viewers
with a virtual currency (tcoins), just for watching and sharing the
content they love, gives users a mega choice of countless first-class
channels which they can watch for free, any time, any where, on the
go; or via OONA app casting on their home TV sets, or via an OONA
Android TV box. - All without the fear of being prosecuted by the
authorities. They also have OONAbot, the cool Genie in the OONA app
who personalises the entertainment they love, and only shows them ads
that interest them, and can save them time and money.
OONA - Leading the Way
A fantastic free entertainment platform
is certainly one realistic solution to the current global piracy
pandemic. - For example, OONA Indonesia, which went into partnership
with one of the world's largest telcom companies, Telcom Indonesia,
launched its platform in 2018, and is now set up to provide its
cutting-edge free (and premium option) services to 185 million
Indonesians. Now, as each day goes by, countless people are hearing
about OONA Indonesia, and downloading the OONA app, and in time, that
will move more and more people away from their pirate ways. - After
all, the pirate platforms are not exactly opening up their treasure
chests and rewarding their viewers with a virtual currency which, in
the case of OONA, can be redeemed for a broad selection of branded
goods and services, discounts, meals, fun days out, holistic health
treatments, free mobile phone minutes, telcom products, and exciting
daily bid n'win competitions!
In fact, OONA's out of the box
innovation has been recognised and emulated by industry players all
over the world, and OONA Global is currently on course to expand its
winning service to the US, other parts of Asia, South America,
Africa, the Middle East, and Europe, with a number of launches later
this year - so that should send some the the pirates running down the
plank...
OONA's strategy to combat password
sharing, can be read about on our upcoming blog: “The Billion$ Freeloaders: Strategies to Prevent Password Sharing.”
[1]. Cision (2019). “Parks Associates
Forecasts $12.5B in Lost Revenue in 2024 due to pay-TV and OTT Piracy
and Account Sharing.”
https://www.prnewswire.com/news-releases/parks-associates-forecasts-12-5b-in-lost-revenue-in-2024-due-to-pay-tv-and-ott-piracy-and-account-sharing-300885598.html
Accessed 19 July, 2019.
[2]. Park Associates (2019). “Account Sharing and Digital Piracy.”
https://www.parksassociates.com/marketfocus/account-sharing-video Accessed 19 July, 2019.
https://www.parksassociates.com/marketfocus/account-sharing-video Accessed 19 July, 2019.
[3]. Blackburn, David et al. “Impacts
of digital Video Piracy on the US Economy.” NERA Economic
Consulting.
https://www.theglobalipcenter.com/wp-content/uploads/2019/06/Digital-Video-Piracy.pdf
Accessed 19 July, 2019.
[4]. Park Associates (2019). “Parks Associates forecasts $12.5B in lost revenue in 2024 due to pay-TV and OTT piracy and account sharing.”
https://www.parksassociates.com/blog/article/pr-07162019 Accessed 19 July, 2019.
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