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Broadband/IP TV Content Protection and Digital Rights Management
Technology & Content Report - July 2004



Published by MRG, Inc
July 2004



Table of Contents

1 Executive Summary

2 Network Environments and Threat Assessments
2.1 CABLE TV SYSTEMS
2.2 SATELLITE DTH SYSTEMS
2.3 DSL AND FTTP NETWORK ARCHITECTURE
2.4 THREAT ASSESSMENT

3 Content Protection
3.1 TECHNIQUES USED IN CABLE AND SATELLITE DTH NETWORKS
3.2 CONDITIONAL ACCESS IN DSL AND FTTP NETWORKS
3.3 CONTENT PROTECTION IN DSL AND FTTP NETWORKS
3.4 DIGITAL RIGHTS MANAGEMENT IN DSL AND FTTP NETWORKS
3.5 CONTENT PROTECTION IN VIDEO ON DEMAND NETWORKS
3.6 STATUS OF IP TV CONTENT PROTECTION DEPLOYMENTS
3.7 CONTENT PROTECTION TECHNOLOGIES IN MOBILE NETWORKS

4 Opportunities, Risks, and Recommendations
4.1 OPPORTUNITIES
4.2 RISKS
4.3 RECOMMENDATIONS

5 Appendices
5.1 COMPANIES OFFERING IP TV CONTENT PROTECTION SYSTEM
5.1.1 Conax
5.1.2 Irdeto Access
5.1.3 Latens
5.1.4 Microsoft Corp
5.1.5 NDS
5.1.6 SecureMedia
5.1.7 Verimatrix
5 1 8 Widevine Technologies, Inc
5 2 OTHER COMPANIES
5 2 1 Kasenna, Inc
5 2 2 Myrio Corporation
5 2 3 SureWest Communications

Table of Figures

Figure 2-1: Cable Network HFC Architecture
Figure 2-2: Satellite DTH Network Architecture
Figure 2-3: DSL and FTTP Network Architecture
Figure 2-4: Integrated Gateway Architecture
Figure 2-5: Distributed Set-Top Box Architecture
Figure 5-1: Conax CAstream Architecture
Figure 5-2: Irdeto Access’ &Mac185;right Architecture
Figure 5-3: Latens Architecture
Figure 5-4: Windows Media Rights Manager Flow
Figure 5-5: Windows Media 9 Key Management
Figure 5-6: NDS System Architecture
Figure 5-7: Encryptonite Architecture
Figure 5-8: Verimatrix Security System for VOD
Figure 5-9: Verimatrix Security System for Multicasting
Figure 5-10: Current Video Distribution Architecture
Figure 5-11: The New Kasenna/ViewNow Architecture

Table of Tables

Table 1-1: TV Distribution Network Threat Assessment 6
Table 2-1: TV Distribution Network Threat Assessment
Table 5-1: Content Protection Systems and Architectures
Table 5-2: Conax’s IP TV Products
Table 5-3: Conax’s IP TV Deployments
Table 5-4: Irdeto Access’ Fiscal 2003 Financial Results
Table 5-5: Irdeto Access’ Broadband Video Products
Table 5-6: Irdeto Access’ Broadband Video Deployments
Table 5-7: Irdeto Access’ Broadband Video Technology Partners
Table 5-8: Latens’ IP TV Products
Table 5-9: Latens’ IP TV Deployments
Table 5-10: Latens’ IP TV Technology Partners
Table 5-11: Microsoft’s Fiscal 2003 Financial Results
Table 5-12: Microsoft’s IP TV Products
Table 5-13: Microsoft’s IP TV Deployments
Table 5-14: Microsoft’s IP TV Technology Partners
Table 5-15: NDS’s Fiscal 2003 Financial Results
Table 5-16: NDS’s IP TV Products
Table 5-17: NDS’s IP TV Deployments
Table 5-18: NDS’s IP TV Technology Partners
Table 5-19: SecureMedia’s IP TV Products
Table 5-20: SecureMedia’s IP TV Deployments
Table 5-21: SecureMedia’s IP TV Technology Partners
Table 5-22: Verimatrix’s IP TV Products
Table 5-23: Verimatrix’s IP TV Technology Partners
Table 5-24: Widevine’s IP TV Products
Table 5-25: Widevine’s IP TV Deployments
Table 5-26: Widevine’s IP TV Technology Partners
Table 5-27: SureWest’s Fiscal 2003 Financial Results

Executive Summary

The experience of the music industry with Napster has raised the level of concern over Content Protection. Napster facilitated the free distribution of music across the Internet. The media owners, the record companies, lost control of their content and apparently experienced significant revenue loss as a result.

The movie studios, video networks, and broadcasters are concerned about the same thing happening to them. They already are experiencing a major problem with pirating, with bootleg DVDs appearing on the market even before the studio releases the DVD. The studios want to be sure that distributing their content over IP TV or Cable Video On Demand (VOD) networks does not compromise their content.

Systems that are used to protect content on networks have three parts:

  • Conditional Access Systems that insure that only authorized subscribers have access to the content and protects against the theft of the service.
  • Content Protection Systems that insure that content is transmitted across networks in an encrypted form that cannot be interpreted and protects against the theft of the content.
  • Digital Rights Management Systems that manage how the content is used, e.g., the number of times or the period of time over which the content may be played and insure that the content is used only in an authorized manner.

Conditional Access is the major concern of the Cable and Satellite Direct To Home (DTH) networks. Cable and DTH networks, in particular, are vulnerable to service theft, since they are broadcast networks.

IP TV networks have much better control over Conditional Access than either the Cable or Satellite DTH networks. The IP TV networks have a point-to-point connection to each subscriber, plus the IP TV network transmits only the channels that the subscriber is actually watching. This makes it difficult for an IP TV subscriber to steal service.

On the other hand, IP TV networks typically use an Ethernet network to carry the content to the set-top box. Ethernet networks are easy to monitor and to spoof . IP TV networks can implement Digital Rights Management relatively easily. Since the IP TV network controls that channels are transmitted to the subscriber, it can enforce the Digital Rights Management rules.

Table 1-1 summarizes the threats from each of the IP TV, Cable, and Satellite DTH networks. It illustrates the points made above.

Table 1-1: TV Distribution Network Threat Assessment
Network Type
Service Theft Threat
Content Theft Threat
Cable TV
Medium
Low
Satellite DTH
High
Low
IP TV
Low
Low or High
Source: MRG, Inc

While Conditional Access is easier in IP TV networks, current implementations often rely on “identifiers”, such as the Ethernet address of the set-top box, which can be easily spoofed. IP TV Conditional Access systems are currently moving to use the port address in the access systems in the central office that connects to the subscriber as the identifier. This will be very difficult to spoof and should provide a high level of Conditional Access Security.

Some IP TV system suppliers use an Integrated Gateway that combines the functions of the set-top box into a single component. This approach keeps the IP TV video content off the Ethernet network and eliminates that vulnerability. An IP TV system with an Integrated Gateway has a low level of threat of content theft.

Content Protection systems for IP TV networks use sophisticated encryption systems that can change keys frequently, suppliers use Integrated Gateways that combine the functions of the DSL modem and the IP TV often only after a few seconds. These systems will be hard to break and provide strong content protection.

There are two kinds of Content Protection systems that are offered for IP TV systems today. One uses a smart card to identify the subscriber. The other uses software techniques. The smart cards are widely used by Satellite DTH networks and seem to give the network operator better control, but at a price. The network operator must replace all of the smart cards in its network if its security is seriously breached. This can be quite expensive, since a smart card typically costs about $20. It also can take weeks for all of the smart cards to be replaced, which leaves the network vulnerable.

A software approach requires that the software in the set-top box be updated. This is relatively low cost and can be accomplished in a few hours. It is still the early days in the deployment of IP Content Protection systems. While few of the small IP TV networks have implemented Content Protection, the major IP TV networks, such as Softbank in Japan and Chunghwa Telecom in Taiwan have. SureWest Communication and Sasktel in North American have also implemented Content Protection.

Deploying Video On Demand appears to be a major driver for implementing Content protection. The studios the content that the IP TV networks would like to offer are requiring Content Protection. Some of the premium broadcast channels are starting to require Content Protection as well.

Content Protection is rapidly becoming a requirement. All IP TV network operators should plan to include Content Protection. However, any network operator implementing a Content Protection system should continuously monitor this system and prepare for the certainty that it will be breached. After all, Content Protection is a business issue. It is implemented to protect the revenue of the network operator or the content provider. The cost for providing a specific level of protection should be balanced against the potential revenue loss. The IP TV network operator should spend only as much as they need to bring the potential revenue loss down to an acceptable level.

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