Tom Munro is the CEO of Verimatrix, a company that provides revenue security solutions for multi-network, multi-screen applications. The document discusses how the piracy threat has changed, moving away from cloned smartcards towards control word sharing over broadband and illegal internet rebroadcasting. It also covers the evolution of STB and SoC technology, increasing connectivity, new video service models, content licensing challenges, and the need for operators to prepare flexible systems for the evolving piracy landscape across multiple screens.

1. How the Piracy Threat
has Changed
Tom Munro
CEO
Verimatrix #multinetwork #IBC2012

2. Verimatrix Profile
Mission Revenue security solutions for multi-network, multi-screen applications:
DVB one-way & hybrid, IPTV and Internet TV to STBs, PCs, connected
TVs, tablets and mobile devices
Headquarters San Diego, California, with European HQ in Munich, Germany and Asian HQ
in Singapore. Sales and support in France, The
Netherlands, Russia, China, Brazil and Argentina
Customers 590+ operator customers in 80+ countries, including 60 Tier 1’s and 2’s –
protecting more than 25M screens and $5B+ revenue on IPTV, DVB and
OTT devices
Partners More than 110 ecosystem channel & integration partners including
Ericsson, Huawei, Technicolor and ZTE
Investors Goldman Sachs, Mission Ventures, Crescendo Ventures, Cipio
Partners, JK&B Capital and Alliance Bernstein
#multinetwork #IBC2012

3. The New Marketplace Dynamic
 Changing revenue threats for operators
 Evolution of SoC and STB technology
 Downward cost pressure everywhere
 Increasing connectivity everywhere
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4. The Changing Face of Piracy
 Cloned or knock-off smartcards no longer at the
heart of commercial piracy business
 Availability of broadband connectivity enables
“end run” around linear and VoD content security
 Smartcard technology no help in key sources of
broadcast operator revenue loss:
 Control word sharing (via broadband)
 Illegitimate rebroadcasting over the Internet
New focus for requirements to protect
legitimate revenue streams
#multinetwork #IBC2012

5. Advances in STB SoC Integration
Individualized Video SoC
Program Video decode
RF Transport Filters TS MPEG Video
Descrambler HW and graphics
JTAG Password Tamper-proof ID
CW Registers
Boot Signature HW Crypto Fn
Embedded Key(s) CW Decryption OTP Registers
EMMs Encrypted
Flash/EEPROM
and ECMs Control Words
STB Key Material
Update loader
STB
Client code
Secured Memory
DRAM
Stack White box cryptography Working keys
Heap Debugger protection Encrypted store
Code signing/checking
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6. The New Video Service Model
Head-End
Complete Service
Rights Management
“Super-domain” and
Inside a Household ..Beyond
Linear RF Delivery Hybrid HD STB Wireless devices
Linear IP Delivery
On-demand & Catch-up
IP Delivery
Broadband
Access Point Smart TVs
#multinetwork #ibc2012

7. Farncombe Security & Piracy Survey
% of operators whose #1 piracy concern is... Now
In 5 years' time
38%
31%
25% 27%
20% 19% 19%
7% 6% 3%
...Control word ...Broadcast ...Downloaded ...Smartcard ...Set top box
sharing content content distribution cloning
redistribution redistribution
over internet over internet
Preview of survey results available at www.verimatrix.com/cardless
#multinetwork #IBC2012

8. Content Licensing Chains (Sony Pictures)
Tablets
VOD
Current
Titles
Phones
Stream
SVOD
PCs
Library
Titles AVOD
STBs
TV
Every
where TVs
Down-
TV load
FVOD BD
Players
#multinetwork #IBC2012

9. Business Rules Platform
OMI Tablets
VOD
Current
Content
Titles
Broad- Phones
cast
SVOD
PCs
Library
Devices
Titles AVOD Stream
STBs
TV
Every
where TVs
Down-
load
Rights
TV
FVOD BD
Players
#multinetwork #IBC2012

10. Conclusions
 The enemy is changing
 Operators need to prepare for the next wave of
piracy attacks for multi-screen services
 A future-proof approach and flexible
architecture enables agile threat response
 Harmonization of rights management in a
hybrid delivery model is vitally important
#multinetwork #IBC2012

11. Thank You
Visit us at #4.B54
tmunro@verimatrix.com
www.verimatrix.com
www.verimatrix.com/cardless #multinetwork #IBC2012