For movie and TV studios, the big bugaboo is people illegally copying or downloading their IP. For SVOD services, it’s another form of piracy – password sharing, which cost companies $500 million worldwide in 2015, according to a report by Parks Associates.
But a new study from IBM Cloud Video, titled “Everybody Wants to Rule the Streaming World,” suggests the real threats to SVOD services’ bottom lines might be of the self-inflicted variety – high prices, lack of good content and too many ads.
The study found that while 27% of respondents indicated that they have used someone else’s password to test a service, the borrowing usually occurs between family members. Forty-two percent of respondents indicated that they shared with their family, compared to a combined 4% of respondents who share with friends, roommates or anyone that asks.