It makes sense for the phenomenon to be so widespread: after all, why would two roommates or family members or even good friends have separate video streaming accounts when they can share a subscription? But, this 'mooching' phenomenon can eat into subscriber growth and profit.
The password-sharing number, from a USA Today poll, dovetails with a recent survey from Parks Associates that found such credential-sharing costs over-the-top (OTT) providers $500 million in revenue this year.
Parks found that 6% of US broadband households use an OTT video service that is paid by a person living outside of the household, but that number increases among millennials: 20% of OTT users aged 18-24 use an OTT video service paid by someone outside the home, the highest of any age group. Only 10% of OTT subscribers 25-34 admit to this behaviour.
Glenn Hower, research analyst at Parks Associates, commented: "Credential-sharing has a measurable impact on video services, particularly in the OTT video service area, where young subscribers are active. The impact on OTT video revenues is especially troublesome as OTT providers are investing large sums of money to boost their original content offerings."
From the article "Over a third share HBO NOW, other streaming passwords" by Michelle Clancy.
Parks Associates announced that the churn rate for OTT video services is 19% of US broadband households, indicating roughly one in five households have cancelled an OTT service in the past 12 months....
A recent survey from Coldwell Banker Real Estate LLC and Parks Associates found Americans are taking a different view about homes that are ready to move into, as an increasing percentage now requires...
Parks Associates has hosted the final day of the company’s 20th annual CONNECTIONS conference in San Francisco with panel discussions moderated by the firm’s analysts and featuring executives from com...
Before news broke Friday that AT&T has stopped bleeding TV customers, Parks Associates tried to put a finger on what sort of subscriber numbers for the company’s new streaming TV service would warrant...
