DALLAS—Anyone wondering how much password sharing and other forms of piracy are costing the U.S. streaming industry now has an answer from Parks Associates. The research firm is reporting that by the end of 2027, there will be a cumulative loss to piracy of $113 billion for streaming video providers serving U.S. consumers.
While large streamers like Netflix are working to cut down password sharing, the international research firm's latest forecast also indicates that the problem is getting worse, not better.
It predicts that piracy rates for U.S. streaming services in film and television programming are expected to rise from 22% in 2022 to 24.5% in 2027 and that the value of fraudulent advertising delivered online to media and entertainment consumers may exceed $700 million in 2027.
The Parks Associates research also shows that visits to pirate hosting websites increased by 31% in 2020 and industry leaders are responding with new anti-piracy policies in the hopes of stemming revenue losses.
The new study "Streaming Piracy Market & Ecosystem Strategies" provides a comprehensive view of piracy threats and the evolution of anti-piracy techniques along with five-year forecasts of revenue loss in the US market for video service providers.
"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. In addition, 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."
