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Conquering Multi-network
Complexity with a Single
Security Authority

Steve Oetegenn
Chief Sales & Marketing Officer
Verimatrix                        #multinetwork #iptvwf
The Current Landscape

    Renting is the primary method of viewing movie/
     video content, primarily because consumers see it
     as a better value

    Online subscription-based: preferred method to
     rent a movie/video

    Majority of consumers are willing to wait to view a
     movie however, almost 30% would pay to access
     the content sooner

    Of those, 83% want the content within one month
     (or less) of the theatrical release window
    Source: PWC, “How consumers are changing the way they rent, and buy movies” 2011




                                                #multinetwork #iptvwf - 2
In Contrast

Chris Dodd, Head of MPAA, labels movie piracy
'looting'

   “Free” drives behavior
    Owning content is not a motivator
    Piracy is not driven by a grudge toward the content owners
    Source: PWC, “Discovering behaviors and attitudes related to pirating content” 2010


And piracy is still rampant:
   The movie “Wolverine” was leaked online one month prior to
    release, within a week, more than a million people had
    downloaded the movie
     Source: TorrentFreak




                                                  #multinetwork #iptvwf - 3
Movie Piracy Losses by Country


United States:           $25Bn

Australia:               $1.3Bn

South Korea:             $1.0Bn

India:                   $959M

United Kingdom: $818M


    Source: Havocscope




                           #multinetwork #iptvwf - 4
Consumer Preferences Have Changed




   Source: PWC, “How consumers are changing the way they rent, and buy movies” 2011




   5
So Have the Pirate’s




       Source: PWC, “Discovering behaviors and attitudes related to pirating content” 2010




   6
The Future?




   Source: PWC, “How consumers are changing the way they rent, and buy movies” 2011




   7
Business Models are Changing




  Source: PWC, “Discovering behaviors and attitudes related to pirating content” 2010




     8
Pirates Will Pay a “Fair” Price




   Source: PWC, “Discovering behaviors and attitudes related to pirating content” 2010




      9
Pirates Will Pay a “Fair” Price




   Source: PWC, “Discovering behaviors and attitudes related to pirating content” 2010




     10
Etisalat’s IPTV Platform
    Brand new experience of home personalized information
    and entertainment services
    More than 200 services and features will be implemented by Q3 2011 for IPTV 2.0

       Core platform features include:
        Live TV (SD and HD)
        T/S/A/C VoD
        FCC
        cPVR
        Catch Up TV
        Go Back TV
        Applications (Games and Walled
         Garden)
        Radio
        Self-Care/Self-Help
        Auto Provisioning
        350+ channels
        50+ HD channels
        Media Player

       Conditional access revenue
        security for premium content by
        Verimatrix



                                                       11
Etisalat UAE: eLife IPTV/OTT
Huawei
Middleware                                                                  Linear
& system management                                                         Content


                                            VCAS 3 Head-end

                                                                     Harmonic
                                         Verimatrix                                                     ViewRight
                                                                     Encoders
                                         IPTV CSM                                                       Client Devices
                                                                                      Envivio
                                         Verimatrix                                   Encoders
                                                                     Verimatrix
                                         IPTV CSM                                                        ViewRight
                                                                     RTES                                Web

                                         Verimatrix                                              HLS
                                                              Key
                                         IPTV ACSM
                                                              data                                       ViewRight
                                                                     Network                             Smart TV
           OMI / Entitlement Interface




                                                                     switching
                                         Expansion Option                                        IPTV

                                                                                                         ViewRight
                                                                                                         STB
                                                                     Huawei
                                                                     VOD
  Verimatrix




                                                                                                         ViewRight
                                                                                                         PC

                                                                     Verimatrix
   Entitlements
   DB
                                                                     VEM


                                                                                  On-demand
                                                                                  Content                                12
TeliaSonera: IPTV/OTT
Igloo
Middleware                                                                  Linear
& system management                                                         Content
                                                                                                                 ViewRight
                                                                                                                 Client Devices
                                            VCAS 3 Head-end
                                                                                              IPTV
                                         Verimatrix                  Encoders                                     ViewRight
                                                                                                                  STB
                                         MultiCAS/IP


                                         Verimatrix                                           HLS
                                         IPTV CSM                    Multiplexor                                  ViewRight
                                                                                                                  Web

                                         Verimatrix
                                                              Key
                                         Adaptive CSM
                                                              data
                                                                     Network                         Smooth
           OMI / Entitlement Interface




                                         MultiRights                 switching                       Streaming    Silverlight
                                         PlayReady                                                                PC/Mac




                                         Expansion Option            Edegeware                Microsoft
                                                                                      HTTP
                                                                     VOD                      IIS
  Verimatrix




                                                                     Verimatrix
   Entitlements
   DB
                                                                     VEM


                                                                                  On-demand
                                                                                  Content                                         13
GVT Brazil: DVB Hybrid
Ericsson
Middleware                                                                   Linear
& system management                                                          Content


                                            VCAS 3 Head-end
                                                                     Tandberg
                                         Verimatrix                  Encoder &         Linear
                                                                     Multiplexors      DVB-S
                                         MultiCAS/DVB
                                                                                                       ViewRight
                                                                                                       Client Devices
                                         Verimatrix                   PIP
                                         BCSM option
                                                                                                        ViewRight
                                                                                                        Gateway/STB
                                         Verimatrix           Key
                                         IPTV CSM             data
                                                                     Network
                                                                     switching                          ViewRight
                                                                                                IPTV
           OMI / Entitlement Interface




                                                                                                        PC
                                                                                                VOD
                                         Expansion Option


                                                                                                        ViewRight
                                                                     Edgeware                           STB
                                                                     VOD
  Verimatrix




                                                                     Verimatrix
   Entitlements                                                      VEM
   DB



                                                                                  On-demand
                                                                                  Content
Summary: Multi-network Video
Services Best Practices
   Enable a transparent consumer experience

   Harmonize stream management with adaptive rate
    technology

   Harmonize subscriber rights across devices

   Don’t assume streaming services need less
    security consideration – it may be higher




      15
Verimatrix Profile
Mission          Content and revenue security for multi-network, multi-screen applications:
                 IPTV, DVB one-way & hybrid, and over-the-top to STBs, PCs, connected
                 TVs, web tablets and mobile devices

Headquarters     San Diego, California, with European HQ in Munich, Germany; sales offices
                 in France, The Netherlands, Russia, China, Singapore and Argentina

Customers        500+ operator customers in 50 countries, including 20 Tier 1’s and 2’s –
                 protecting more than 20M screens for IPTV, DVB, PCs and other devices

Partners         More than 110 ecosystem channel & integration partners
                 Ericsson, Huawei, Nokia Siemens Networks, Technicolor and ZTE

Investors        Goldman Sachs, Mission Ventures, Crescendo Ventures, Cipio
                 Partners, JK&B Capital and SunAmerica Ventures




            16
                             ©2012 Verimatrix, Inc.
Thank You
Visit Us #173
steveo@verimatrix.com
www.verimatrix.com
                        #multinetwork #iptvwf

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Multi-network Solutions in the Real World, IP&TV World Forum: Steve Oetegenn, Verimatrix

  • 1. Conquering Multi-network Complexity with a Single Security Authority Steve Oetegenn Chief Sales & Marketing Officer Verimatrix #multinetwork #iptvwf
  • 2. The Current Landscape  Renting is the primary method of viewing movie/ video content, primarily because consumers see it as a better value  Online subscription-based: preferred method to rent a movie/video  Majority of consumers are willing to wait to view a movie however, almost 30% would pay to access the content sooner  Of those, 83% want the content within one month (or less) of the theatrical release window Source: PWC, “How consumers are changing the way they rent, and buy movies” 2011 #multinetwork #iptvwf - 2
  • 3. In Contrast Chris Dodd, Head of MPAA, labels movie piracy 'looting'  “Free” drives behavior  Owning content is not a motivator  Piracy is not driven by a grudge toward the content owners Source: PWC, “Discovering behaviors and attitudes related to pirating content” 2010 And piracy is still rampant:  The movie “Wolverine” was leaked online one month prior to release, within a week, more than a million people had downloaded the movie Source: TorrentFreak #multinetwork #iptvwf - 3
  • 4. Movie Piracy Losses by Country United States: $25Bn Australia: $1.3Bn South Korea: $1.0Bn India: $959M United Kingdom: $818M Source: Havocscope #multinetwork #iptvwf - 4
  • 5. Consumer Preferences Have Changed Source: PWC, “How consumers are changing the way they rent, and buy movies” 2011 5
  • 6. So Have the Pirate’s Source: PWC, “Discovering behaviors and attitudes related to pirating content” 2010 6
  • 7. The Future? Source: PWC, “How consumers are changing the way they rent, and buy movies” 2011 7
  • 8. Business Models are Changing Source: PWC, “Discovering behaviors and attitudes related to pirating content” 2010 8
  • 9. Pirates Will Pay a “Fair” Price Source: PWC, “Discovering behaviors and attitudes related to pirating content” 2010 9
  • 10. Pirates Will Pay a “Fair” Price Source: PWC, “Discovering behaviors and attitudes related to pirating content” 2010 10
  • 11. Etisalat’s IPTV Platform Brand new experience of home personalized information and entertainment services More than 200 services and features will be implemented by Q3 2011 for IPTV 2.0  Core platform features include:  Live TV (SD and HD)  T/S/A/C VoD  FCC  cPVR  Catch Up TV  Go Back TV  Applications (Games and Walled Garden)  Radio  Self-Care/Self-Help  Auto Provisioning  350+ channels  50+ HD channels  Media Player  Conditional access revenue security for premium content by Verimatrix 11
  • 12. Etisalat UAE: eLife IPTV/OTT Huawei Middleware Linear & system management Content VCAS 3 Head-end Harmonic Verimatrix ViewRight Encoders IPTV CSM Client Devices Envivio Verimatrix Encoders Verimatrix IPTV CSM ViewRight RTES Web Verimatrix HLS Key IPTV ACSM data ViewRight Network Smart TV OMI / Entitlement Interface switching Expansion Option IPTV ViewRight STB Huawei VOD Verimatrix ViewRight PC Verimatrix Entitlements DB VEM On-demand Content 12
  • 13. TeliaSonera: IPTV/OTT Igloo Middleware Linear & system management Content ViewRight Client Devices VCAS 3 Head-end IPTV Verimatrix Encoders ViewRight STB MultiCAS/IP Verimatrix HLS IPTV CSM Multiplexor ViewRight Web Verimatrix Key Adaptive CSM data Network Smooth OMI / Entitlement Interface MultiRights switching Streaming Silverlight PlayReady PC/Mac Expansion Option Edegeware Microsoft HTTP VOD IIS Verimatrix Verimatrix Entitlements DB VEM On-demand Content 13
  • 14. GVT Brazil: DVB Hybrid Ericsson Middleware Linear & system management Content VCAS 3 Head-end Tandberg Verimatrix Encoder & Linear Multiplexors DVB-S MultiCAS/DVB ViewRight Client Devices Verimatrix PIP BCSM option ViewRight Gateway/STB Verimatrix Key IPTV CSM data Network switching ViewRight IPTV OMI / Entitlement Interface PC VOD Expansion Option ViewRight Edgeware STB VOD Verimatrix Verimatrix Entitlements VEM DB On-demand Content
  • 15. Summary: Multi-network Video Services Best Practices  Enable a transparent consumer experience  Harmonize stream management with adaptive rate technology  Harmonize subscriber rights across devices  Don’t assume streaming services need less security consideration – it may be higher 15
  • 16. Verimatrix Profile Mission Content and revenue security for multi-network, multi-screen applications: IPTV, DVB one-way & hybrid, and over-the-top to STBs, PCs, connected TVs, web tablets and mobile devices Headquarters San Diego, California, with European HQ in Munich, Germany; sales offices in France, The Netherlands, Russia, China, Singapore and Argentina Customers 500+ operator customers in 50 countries, including 20 Tier 1’s and 2’s – protecting more than 20M screens for IPTV, DVB, PCs and other devices Partners More than 110 ecosystem channel & integration partners Ericsson, Huawei, Nokia Siemens Networks, Technicolor and ZTE Investors Goldman Sachs, Mission Ventures, Crescendo Ventures, Cipio Partners, JK&B Capital and SunAmerica Ventures 16 ©2012 Verimatrix, Inc.
  • 17. Thank You Visit Us #173 steveo@verimatrix.com www.verimatrix.com #multinetwork #iptvwf

Notas del editor

  1. Whether it’s online, via mail subscription (such as Netflix), or at a physical site (such as Blockbuster or a RedBox physical rental), more people are likely to rent their movies than purchase a copy or download a permanent copy from a website. See Chart 2. Consumers feel they are getting a better price or saving money by not buying.Of all available methods, more consumers (43%) are more likely to rent a physical copy via mail subscription service once per month or more. 32% rent via online subscription services once per month or more. 31% obtain video/movie content by streaming (free) once per month or more, from a non- subscription-based Internet website, legally and/or illegally. Purchase/fee-based options fell into the bottom relative to behavior and frequency. 6%a significant percentage (29%) said they would pay more to access content sooner under certain circumstances.
  2. Most (81%) of the consumers who admit to pirating TV, movie, and video (UGC, mash-ups, YouTube videos, etc.) contentsay they will likely continue to do so, even though two out of three also noted concerns about at least one of the following:• Computer viruses• Getting into trouble for doing something that may be illegal• Inferior quality/fidelity of the contentPirates are not worried that their actions will drive costs up (only 1 in 3)
  3. Many studios request HW root of trust which obviously in STBs can be satisfied by Secure SoC and Key Ladder (CWPP) but on softer devices can be only simulated by using code obfuscation and whitebox cryptography (such as on PCs but most will not release HD content to PCs) and on Tablets the use of Secure SoC and standards such as TrustZone are being required for HD content.Alsoasking about what happens after CAS/DRM is done with its part. How/where is the video decrypted and decoded, how are the outputs protected, etc. DIGITAL WATERMARKINGSoftware vendors have implemented AACS for Windows PCs. Some studios will license their HD content through approved DRM-protected schemes for PCs without requiring hardware roots of trust or software hardening, as long as digital outputs are protected by HDCP13. Some studios will allow still-image digital output without HDCP. Other studios will not license HD content in the Home Entertainment window for PC implementations unless they have hardware roots of trust (a la Intel Insider) or software hardening (see p. 18), because they want to avoid hacks similar to the AACS hack of January 2007, which affected software implementations14.