dr ramon lobato - swinburne university of technology - piracy - friend or foe?
TRANSCRIPT
Piracy: Friend or Foe?
Ovum OTT TV Summit 2016
Dr Ramon Lobato
Senior research fellow
Swinburne Institute for Social Research
Swinburne University of Technology, Melbourne
Research focus
- Socio-cultural media research:
understanding what audiences do
- Special interest in piracy Understanding piracy in relation to
changing market structures
Cultural contexts & values underpinning behaviour
Approaches
- Tracking technologies and uses
- Legal and policy analysis
- International comparisons
Research focus
- Socio-cultural media research:
understanding what audiences do
- Special interest in piracy Understanding piracy in relation to
changing market structures
Cultural contexts & values underpinning behaviour
Approaches
- Tracking technologies and uses
- Legal and policy analysis
- International comparisons
What do we know about digital piracy?
What do we know about digital piracy?
Analysis of P2P traffic shows trends in relation to particular content.
Examples: TorrentFreak data
What do we know about digital piracy?
Focus groups and surveys measure attitudes and behaviours.
Examples: CCA/IPAF, Dept of Comms, MPAA, Essential, IPSOS, etc
What do we know about digital piracy?
Economic modelling produces estimates of industry losses.
Examples: MPAA, ACIG, BSA, etc.
How relevant is all this data to OTT TV?
Not entirely relevant, because:
1) Piracy is not a ‘thing’; it is a market effect.
2) Piracy metrics don’t help us to understand
willingness to pay or revenue foregone.
3) Streaming markets have specific
characteristics that we need to consider.
Let’s look at the issue differently,
starting with the audience
1: Audiences are diversely motivated
CATALOG DEPTH
DIVERSITY
QUALITY
TIMELINESSCO
NT
EN
T-R
ELA
TE
D
RELIABILITY
CONVENIENCE
LATENCY/GLITCHES
INTERACTIVITY
UX
PRICE
VALUE
REPUTATION
PAYM’T MODEL
EC
ON
OM
ICS
OC
IO-C
ULT
UR
ALBRAND POWER
SOCIAL NORMS
TECH-SAVVINESS
CONNECTIVITY
2: The streaming market is complex;
formal + informal services coexist
3: There are multiple kinds of piracy
with diverse economic effects
Substitution effect for TVOD,
but not SVOD and AVOD
A la carte
D/L piracy
Substitution effect for SVOD,
TVOD (sometimes) and AVOD
Pirate
streaming
Revenue dispersal,
not substitution
Parallel
importation
Usability and convenience factors
BIT TORRENT
- 15 years old
- Diverse content
- Trackers
moderately
blockable
- Often used w/ VPN
- Usability: medium
ILLEGAL
STREAMING SITES
- Ephemeral but
plentiful
- General and niche
sites
- On-demand or live
(for sports)
- Usability: easy
POPCORN TIME
- P2P backend,
Netflix-like client
- Mostly US
movies and TV
- Close to OTTTV
experience
- Usability: easy
PROXIES,
VPNs
- Location tools
(+ anon)
- Parallel-
importing, not
piracy
- Usability:
medium
BIT TORRENT
- 15 years old
- Diverse content
- Trackers
moderately
blockable
- Often used w/ VPN
- Usability: medium
ILLEGAL
STREAMING SITES
- Ephemeral but
plentiful
- General and niche
sites
- On-demand or live
(for sports)
- Usability: easy
(but higher risk)
POPCORN TIME
- P2P backend,
Netflix-like client
- Mostly US
movies and TV
- Close to OTTTV
experience
- Usability: easy
PROXIES,
VPNs
- Location tools
(+ anon)
- Parallel-
importing, not
piracy
- Usability:
medium
Usability and convenience factors
Usability and convenience factors
BIT TORRENT
- 15 years old
- Diverse content
- Trackers
moderately
blockable
- Often used w/ VPN
- Usability: medium
ILLEGAL
STREAMING SITES
- Ephemeral but
plentiful
- General and niche
sites
- On-demand or live
(for sports)
- Usability: easy
(but higher risk)
POPCORN TIME
- P2P backend,
Netflix-like client
- Mostly US
movies and TV
- Close to OTTTV
experience
- Usability: easy
PROXIES,
VPNs
- Location tools
(+ anon)
- Parallel-
importing, not
piracy
- Usability:
medium
BIT TORRENT
- 15 years old
- Diverse content
- Trackers
moderately
blockable
- Often used w/ VPN
- Usability: medium
ILLEGAL
STREAMING SITES
- Ephemeral but
plentiful
- General and niche
sites
- On-demand or live
(for sports)
- Usability: easy
POPCORN TIME
- P2P backend,
Netflix-like client
- Mostly US
movies and TV
- Close to OTTTV
experience
- Usability: easy
PROXIES,
VPNs
- Location tools
(+ anon)
- Parallel-
importing, not
piracy
- Usability:
medium
Usability and convenience factors
Usability and convenience factors
BIT TORRENT
- 15 years old
- Diverse content
- Trackers
moderately
blockable
- Often used w/ VPN
- Usability: medium
ILLEGAL
STREAMING SITES
- Ephemeral but
plentiful
- General and niche
sites
- On-demand or live
(for sports)
- Usability: easy
(but higher risk)
POPCORN TIME
- P2P backend,
Netflix-like client
- Mostly US
movies and TV
- Close to OTTTV
experience
- Usability: easy
PROXIES,
VPNs
- Location tools
(+ anon)
- Parallel-
importing, not
piracy
- Usability:
medium
From software to hardware
But let’s not forget the convenience factor
CATALOG DEPTH
DIVERSITY
QUALITY
TIMELINESSCO
NT
EN
T-R
ELA
TE
D
RELIABILITY
CONVENIENCE
LATENCY/GLITCHES
INTERACTIVITY
UX
PRICE
VALUE
REPUTATION
PAYM’T MODEL
EC
ON
OM
ICS
OC
IO-C
ULT
UR
ALBRAND POWER
SOCIAL NORMS
TECH-SAVVINESS
CONNECTIVITY
But let’s not forget the convenience factor
But let’s not forget the convenience factor
SERVICE NUMBER + TYPE OF USER ACTIONS REQUIRED
3 Open URL/app, select content, play
NETFLIX USA +
DNS/VPN
11+Register & pay x2, install & open client/change
DNS settings, open URL/app, select content,
play
STREAMER BOX
20+Buy box, watch online tutorials, (download and
install player), change settings, find & install
repo, install addon, select content, play
In conclusion, 3 strategic questions
(and reasons to be optimistic)
• What is the relative exposure of OTT TV
to piracy?
• What’s the relationship between piracy
and paid consumption?
• Where is the value – for companies and
for consumers?
In conclusion, 3 strategic questions
(and reasons to be optimistic)
• What is the relative exposure of OTT TV
to piracy? → value-add of curation, serendipity, etc
• What’s the relationship between piracy
and paid consumption?
• Where is the value – for companies and
for consumers?
In conclusion, 3 strategic questions
(and reasons to be optimistic)
• What is the relative exposure of OTT TV
to piracy? → value-add of curation, serendipity, etc
• What’s the relationship between piracy
and paid consumption? → may co-exist
• Where is the value – for companies and
for consumers?
In conclusion, 3 strategic questions
(and reasons to be optimistic)
• What is the relative exposure of OTT TV
to piracy? → value-add of curation, serendipity, etc
• What’s the relationship between piracy
and paid consumption? → may co-exist
• Where is the value – for companies and
for consumers? → focus on what piracy cannot
provide
