Some 55% of over-the-top (OTT) services in the US have a subscription-only business model similar to Netflix, according to Parks Associates.
The research firm said that in Canada, 50% of OTT services offer subscription-only services, and claimed that a recent US appeals court ruling that said sharing passwords is a crime that can be prosecuted is “not likely to affect OTT video service business models”.
“There is an enormous amount of change going on in the OTT space right now, with new OTT video services entering the market each month. Many of these services have subscription as at least part of their business model,” said Brett Sappington, senior director of research, Parks Associates.
“The recent ruling of the US Court of Appeals for the 9th Circuit is not likely to affect OTT video service business models. An OTT video service is unlikely to pursue legal action against someone who pays less than US$10 per month unless they are doing something that disrupts the service.”
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