US streaming’s revenue loss to piracy to exceed $113BN by 2027
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| 20 April 2023
A study from Parks Associates looking at unauthorised usage of digital media and streaming services has made the worrying conclusion that piracy rates for US streaming services in film and television programming are expected to rise from 22% in 2022 to 24.5% in 2027.
Parks Chart PA Industry Revenue Loss to Piracy 19April2023
This, says the Streaming Piracy Market & Ecosystem Strategies report, represents a cumulative loss to piracy of $113 billion for streaming video providers serving US consumers. Even worse, the value of fraudulent advertising delivered online to media and entertainment consumers may exceed $700 million in 2027.

The study also showed 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.

The data indicated 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. Parks noted that 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,” added Parks Associates research analyst Sarah Lee. “Participation in sharing account credentials increased 48% since 2019.”