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1 Magazine September 2014 STRATEGIC INFORMATION FOR THE BROADBAND MARKETPLACE Pay-TV-Centric DRM Management Is Linchpin to Multiscreen Expansion NAGRA anycast PRM Platform Fuels Next-Gen Service Rollouts Worldwide Introduction Nothing is more vital to pay-tv service providers success in the premium multiscreen video market than their ability to achieve new levels of efficiency and control in the management of content security. Historically, rigorous content protection, epitomized by the development of modern conditional access system (CAS) technology, has been the lifeblood to a thriving multichannel pay-tv market. Now, as they negotiate for content licenses in support of next-generation pay-tv models, MVPDs (multichannel video programming distributors) must be able to consolidate security operations across the legacy set-top and IP-connected device domains while gaining much greater control over IP device security than they ve had in the early ramp-ups to multiscreen service. So far in their execution of TV Everywhere (TVE) strategies, MVPDs have been able to leverage generic Web-based security modes for implementing DRM (digital rights management) protection on IP devices while continuing to rely on CAS security for premium content delivered to traditional set-tops. But service providers can no longer rely on Internet-sourced modes of DRM management if they want to enable broadcast-like services and business models. After much industry discussion over many years about the transition to all-ip services, that transition has become a de facto part of pay-tv operations by virtue of service providers efforts to respond to the pull of consumer demand away from legacy modes of viewing. What began as a value-added service for existing subscribers with offerings of subsets of VOD content for access on connected devices has morphed in many cases to TVE offerings featuring scores of live channels and tens of thousands of on-demand movies and TV programs. Consequently, the technology platforms MVPDs choose to support TVE expansion, especially in the security realm, must be able to serve as the foundation for a full pay-tv-caliber service encompassing all classes of connected devices as well as traditional set-tops. In this new multiscreen era, MVPDs will have to provide robust security suited to each device in real time to make multiscreen viewing part of the TV experience. Failing to do so could lead to increased piracy, including Internet redistribution of live channels as well as sharing of VOD files, both sourced from service providers OTT services. Service providers will have to support fast-channel changes and the encryption refresh cycles that TV networks require in the licensing of live TV programs for IP streaming. They will need to be able to integrate traditional TV with OTT content in order to support a wide variety of different use cases that allow consumers to receive and transfer content among a diverse range of controlled and uncontrolled devices. This must be done without compromising on content owner security requirements and while ensuring that the service provider s business model is enforced. Going forward, the new security framework must be strong enough to support policies associated with new subscription models, including new high-end services such as early release-window 4K Ultra HD, where licensing terms will require new types of protection such as forensic watermarking. New licensing requirements proposed by MovieLabs, the research and development joint venture started by the six major motion picture studios, also include software renewability; security segmentation per device, per user, per software instance; security monitoring; secure media path end to end, and other measures that have not been part of the typical multiscreen pay-tv paradigm. A new approach to managing pay-tv security is clearly needed, which is why NAGRA, as a world leader in premium content protection, developed a pay-tv-centric, MVPD-controlled DRM management solution known as NAGRA anycast Persistent Rights Management (PRM). As a next-generation security platform designed specifically for MVPDs, PRM is setting new benchmarks for security performance in rollouts around the world. For example, PRM is the first pay-tv service provider-controlled DRM to be approved by the Digital Transmission Licensing Administrator (DTLA) for the retransmission of premium DTCP-IP (Digital Transmission Control Protocol for IP content) over home networks. This certification, following earlier approval of PRM as a protection mechanism for storage of DTCP content, allows service providers to support place-shifting use cases that allow DVR and home gateway-stored content to be streamed throughout the home and, so far as usage NAGRA > 2 September 2014 > ScreenPlays >> 1

2 >> Market Intelligence >> CONTENT SECURITY < 1 NAGRA rules allow, to all registered subscriber devices no matter where they are in the world. Similarly, PRM is the only pay-tv-centric DRM to be approved by the Digital Entertainment Content Ecosystem (DECE) for use with the UltraViolet personal media service for protection of premium SD and HD content streamed both to open devices and to service provider-controlled set-tops and other closed devices. This means that MVPDs using PRM not only have the assurance that they are using a Hollywood studio-approved DRM; they can also leverage the benefits of a unified security services platform to efficiently offer a personalized media storage service that allows their own subscribers to access UltraViolet content on all devices wherever they are, thereby adding additional value to their pay-tv subscription. The versatility of the PRM platform for use in widely divergent MVPD scenarios was recently underscored with the decision of U.S DBS supplier DISH Network L.L.C and global satellite technology provider EchoStar Technologies L.L.C, to extend their security partnership with NAGRA for new service applications. NAGRA CAS and DRM protection mechanisms are now providing security for delivery of premium content throughout the entire ecosystem served by DISH, including set-tops, PCs, smartphones, tablets and other devices, using both Over-The-Top (OTT) and place-shifting scenarios. NAGRA anycast PRM provides the security for DISH subscribers use of the Hopper Transfers feature in the DISH Anywhere multiscreen service app. Notably, DISH is using PRM protection in conjunction with the Hopper Transfers feature in the DISH Anywhere app, which allows users of the Hopper with Sling whole-home HD DVR to transfer recorded content to any ios or Android device for offline viewing outside the home. The ability of service providers to use their own unified content security platform to provide content owner-approved protection for place-shifted applications affords them new flexibility as they plan how best to expand their TVE services. These breakthroughs reflect some of the unique characteristics of the PRM platform as a one-stop solution for all legacy and multiscreen pay- TV service security requirements. The primary capabilities of the platform can be summarized as follows: n Ironclad, industry-endorsed security for delivering more than 18 different content delivery use cases, providing MVPDs unified control over all live and on-demand pay-tv service apps across all devices; n The only pay-tv-centric service provider-controlled DRM platform specifically designed for MVPDs by a trusted supplier that can be relied on to respond to new needs in the pay-tv space as they arise; n A unified encryption key management system that allows content packagers to retrieve and import keys from NAGRA s and multiple third-party DRM servers along with any usage policy, blackout enforcement and other protection-related information associated with content licenses; n Complete control over service activation and revocation on all devices with persistent support for automatic subscriber authentication in all usage scenarios; n Support for security renewability implemented through software downloads to all devices running service provider apps. n Unified Conditional Access and DRM management using the NAGRA anycast Security Services Platform. A multitude of features flowing from these foundational capabilities represent new service opportunities and operational efficiencies that could be vital contributors to service providers ROI in the months and years to come. For example, NAGRA PRM provides: n Support for the highest possible levels of security by enabling anchoring of the NAGRA DRM client to the NAGRA On-Chip Security (NOCS) hardware root-of-trust in IP-capable set-tops and other connected devices to be used in high-end pay-tv applications, including HD and Ultra HD services; n Support for a service provider-controlled hybrid service where CAS and DRM protection mechanisms can be automatically and instantaneously applied as the user switches between pay-tv content and service provider-licensed OTT content; n Flexibility to efficiently implement secure transfers from CAS to DRM protection in home media gateways, home and cloud DVRs, headends or other locations as needed; n Protection against service provider applications being used on rooted or jailbroken devices; n Support for all DRM requirements tied to live TV streaming in ways that assure uninterrupted viewing and fast channel changes by end users; n Fast entitlement provisioning for high-volume, live sports events where the volume of individual user requests would otherwise result in backlogs and delays in authorizations. Another key benefit service providers gain through use of the pay-tvcentric PRM platform is the flexibility to choose DRM licensing models optimized for their circumstances. Rather than requiring service providers to pay fixed DRM licensing fees on a per-installed or activated client basis, NAGRA works with its customers to create more flexible business models, including the possibility of licensing PRM on a per-household basis. Other popular DRMs don t offer this possibility. The Emerging Next-Gen Pay-TV Paradigm Drawing from a wide range of recent research it s not hard to discern the key elements that will determine whether a premium TV service is measuring up to consumer expectations. In a word, consumers want to watch programs on their own schedules without being bound to a TV set but without having to sacrifice the range of programming options and features that are part of their pay-tv service. Online Viewing Patterns The ubiquitous reach of broadband, higher speed mobile connections and a proliferation of video-enabled devices have combined to transform viewing behavior, especially among young consumers but now extending into older age groups as well (see Figure 1). Remarkably, a third of all consumers are now viewing online video daily on one device or another, double the number in 2011, according to Leichtman Research Group. 1 2 >> ScreenPlays > To subscribe go to

3 >> Figure 1 Market Intelligence >> CONTENT SECURITY Online Viewing Patterns in U.S. Percentage Viewing OTT Video Daily or Weekly ALL DEVICES OTHER THAN ON TV Weekly Daily Weekly Daily % 17% 37% 14% % 33% 53% 27% Source: Leichtman Research Group Percentage Viewing TV Shows/Movies Least Weekly % 60% 45% 33% 24% % 80% 68% 51% 36% Source: Altman Vilandrie & Co. Percentage of Viewed TV Shows that Are Watched Online During Normal Broadcast Time % 73% 80% 89% 85% % 72% 80% 84% 87% Source: Altman Vilandrie & Co Altman Vilandrie & Co. breaks the numbers down by age group focusing strictly on viewing of TV programs and movies online, again demonstrating a big jump in the trend line between 2011 and In broadband households, according to research conducted by Cisco System s Internet Business Solutions Group, the share of viewing time devoted to streamed or downloaded Internet video, totaling 13.76%, now surpasses the combined time devoted to watching VOD and premium channels like HBO and Showtime and is close to matching the time spent watching programming recorded on DVRs. 3 The message from the marketplace is clear. Consumers not only want access to free and premium OTT content; they want the type of premium content, including live sports, events, news and the latest episodes of favorite programming, that can only be obtained through pay-tv subscriptions. But they want that pay-tv service to operate seamlessly across all devices without restrictions on access based on type of device and without having to go through different user interfaces and sign-up procedures depending on which type of device they want to use to watch a program. The Explosion in Live TV Program Streaming In response to these trends, the shift to ubiquitous availability of live as well as on-demand TV content on connected devices has reached flood tide. Along with growing numbers of cable and broadcast TV network direct-to-consumer distribution strategies patterned after the HBO Go model, there have been significant expansions in channel lineups for out-of-home as well as in-home access on MVPD apps and strong indications that broadband-only pay-tv subscriptions may soon be introduced around the world. There are already companies like Zattoo in Europe who are packaging and delivering live broadcast channel packages supported by advertising or premium subscriptions, and more initiatives along these lines are sure to come. Right now incoherency reigns supreme. Over the past year, individual programmers have flooded the market with self-branded apps which authenticated subscribers of pay-tv providers who hold rights to those apps can use to access live content on connected devices wherever they are. At the same time, subscribers in some markets have been able to download MVPD apps that give them access to the lion s share of the live channel lineup inside the home but to far fewer channels away from home. Now new content licensing deals are opening the out-of-home live streaming spigot on MVPD apps, although the lineups are still typically restricted to less than half the channels that can be accessed inside the home, with great variations from one MVPD to the next. And with consummation of a deal according DISH Network rights to offer Disney outlets as part of a potential broadband pay-tv subscription service and another such deal reportedly in the works between Disney and DirecTV, there s growing potential for the licensing of live programming for delivery over broadband networks everywhere. The New Security Management Challenge The ability to deliver complete packages of premium content with innovative features and applications to subscribers wherever they are has now become a fundamental component of MVPD strategies worldwide. They realize that failure to do so is to concede to OTT competitors the opportunity to serve the growing tide of consumers who are accessing long-form professionally produced video via broadband IP-connected devices. According to a recent survey of pay-tv service providers conducted by Informa, service innovation is now the top priority of 65 percent of service providers worldwide, which means they must free themselves from the restrictions on applications, features and service reach imposed by legacy set-tops. But in order to bring an ever-expanding range of devices into their premium service ecosystems, service providers must have the means to efficiently provision and manage whatever security assets are required to authorize any given device for subscription TV access. While MVPDs have been able to handle security requirements in the early phases of TVE service, keeping pace as services expand will tax the resources of even the largest service providers. Moreover, service providers will want to be able to lower OpEx by rationalizing operations on the legacy CA side of the pay-tv business with the DRM side, making it easier to maintain consistent service definition, subscriber rights management and security as they migrate to all-ip services. Early in the TVE evolution, service providers concentrated on providing DRM-based content security to a limited variety of devices, typically extending beyond the PC to include Apple ios devices, namely, iphones and ipads. Now, with Android devices surging into a market lead over Apple ios devices, smart TVs gaining traction and Xbox, Roku and other connected TV-enabling devices drawing millions of users, service providers are concentrating on what needs to be done to accommodate the multi-platform transcoding, streaming and security requirements of a myriad of different devices. Where security is concerned, they must be able to reach as many different devices as possible, whether they control the security within their app, or whether it was implemented by the CE manufacturer on a platform level. While the market has consolidated around a handful of prominent connected device operating systems, including ios, Android and Microsoft Windows, frequently the details of how security is implement- NAGRA > 4 September 2014 > ScreenPlays >> 3

4 >> Market Intelligence >> CONTENT SECURITY < 3 NAGRA ed on devices varies from one OS generation to the next, meaning that within any given OEM s product line different models of smartphones or tablets can require different approaches to security. These variations may have to do with the types of DRMs used for protected content or the means by which service providers interact with OEMs and DRM suppliers to authenticate the devices for subscribers access to premium content. Fundamentally, to make each device a part of the service provider s premium service network the service provider must be able either to leverage the core security embedded in the OEM s SoCs and OS or to implement a sufficiently robust and studio-approved DRM on the application layer, leveraging any hardware mechanisms that might be available to strengthen the security provided. DRM Management Complexities In all cases, service providers must find a way to set up and manage the processes required by each app store or OEM for implementing authentication on the devices in order to supply a branded app their subscribers can access on the devices. In light of the variations in features and modes of security from one device to the next, even within a given OS domain, service providers who want to serve a large population of devices are burdened with managing an increasingly complex process to provide support for new devices as the come to market as quickly as possible. This could mean working with multiple DRM licensing authorities who own the embedded DRM on each platform to ensure usage policies as dictated by the content licenses and the terms of each user s subscription agreement are enforced. Moreover, when it comes to setting up link protection for devices connected in the home, they must also work with the DTLA as the licensing authority that generates keys for DTCP support. These complications have led service providers to rely on third-party DRM platforms like Microsoft that do not have a primarily pay-tv operator focus to perform some of these functions in support of device authentication and key management with service provider-branded pay-tv service apps targeted to various OS categories. This reliance on third-party solutions has introduced a new set of problems related to the fact that the service provider doesn t control the third-party DRM platform and, therefore, does not have effective control over responses to new pay-tv-specific requirements that the third party may have no incentive to support. Moreover, because such suppliers price their DRM services on a per-device basis, costs are unsustainable in the pay-tv environment as ever more devices are added by each household at no additional subscription cost. In any event, even if such a third-party DRM platform is used to streamline device authentication for pay-tv service ingested and transcoded at headends, service providers still need to be able to perform DRM management on OTT content which they want to bring into their managed service domains, including TV network content distributed directly to subscribers from a network s origin servers. Other OTT sources that may need service provider-orchestrated protection management on streams from origin servers include aggregators who affiliate with MVPDs to make their offerings part of the managed pay-tv service lineup. The protection architecture must take into account other points of implementation as well, including at CDN edge points in instances where content is packaged on the fly in response to streaming requests from user devices. In other scenarios, IP protection is implemented on home media gateways when legacy channels are converted to IP for ABR streaming to devices in the home. And, going forward, many service providers are looking to deliver ABR streams to devices outside the home, adding to the policies and control mechanisms that must be supported with DRM implementation at the home gateway. Roots of Trust and Other Enhancements It s also important to note that as MVPDs expand their multiscreen offerings to include the full complement of live and on-demand pay-tv content currently offered through traditional set-tops, they will want to be able to implement roots of trust that associate specific types of IP devices, including IP set-tops, HDMI sticks, smart TVs and other elements, with their services at the chip level, much as they have traditionally done with CAS roots of trust on set-tops. This adds still another requirement to the security management agenda in the multiscreen service era. Also adding to the complexities in all these management scenarios is the fact that new types of protection are being introduced as the marketplace moves to 4K UHD. As a first step, MovieLabs is now requiring MVPDs to implement forensic watermarking as a condition for licensing recently released movies into 4K VOD distribution. Owing to the pristine quality and early-window value of such content, studios want to be sure they have a way of tracing pirated movies to people who copy the movies when they are delivered in the clear on 4K TV screens. Watermarking will also likely be a requirement for HD-formatted movies released in very early windows for high-priced home theater services, should the studios agree to resume the licensing strategy that was initially tested in Despite the pushback from theater chains that halted development of such services, industry observers believe the studios will want to build momentum for 4K releases by expanded viewing options to include movies formatted in 1080p HD, which can be upscaled to near-4k quality by processes built into 4K TV sets. Significantly for service providers selection of security providers suited to the long-term requirements of the evolving pay-tv marketplace, the protection mechanisms that are taking shape around 4K UHD and succeeding high-resolution technologies are destined to require implementations of watermarking and other advances at all points in the value chain. Thus, the components that MVPDs implement will necessarily be linked with other components which only a platform security provider grounded in the TV industry can provide and manage on an end-to-end basis. The Unified MVPD Security Services Platform (SSP) Clearly, pay-tv service evolution has reached a point where old approaches to security management will not work for MVPDs. Fundamentally, they need to attain greater control over security management in the IP content domain while unifying security operations across all service segments in a way that lowers costs and complications while increasing their flexibility to react to new market opportunities with whatever adjustments and enhancements to security those opportunities require. This is a tall order but one which NAGRA has more than fulfilled through development of NAGRA anycast Persistent Rights Management. NAGRA has addressed all the requirements discussed in the previous section, starting with service providers need for a pay-tv-optimized approach to managing security in the IP domain. A Comprehensive Approach to DRM Management Market Acceptance This priority has been met by development of the NAGRA anycast PRM platform, which alleviates service providers of a substantial portion 4 >> ScreenPlays > To subscribe go to

5 >> Market Intelligence >> CONTENT SECURITY of the burdens associated with multiscreen service expansion while giving them much greater control over their apps on open devices than they can achieve with more generic multi-drm platform approaches. As noted previously, PRM, as the first pay-tv-centric DRM designed specifically for MVPDs, has registered new firsts in certifications by DECE and DTLA that greatly enhance service providers ability to license premium content from movie studios and broadcast networks as well as leverage the benefits, respectively, of UltraViolet and DTCP-IP for their subscribers. More broadly, a growing number of advanced service initiatives by major MVPDs worldwide are using protection provided through PRM to serve millions of customers on devices of every description. These include: n CANAL + in France, the largest provider of pay-tv services in that country; n The Yomvi OTT pay-tv offering of CANAL+ Spain, now delivered to over a million devices after recording 182 percent growth in 2013; n The hybrid satellite, broadcast and OTT service offered to Brazilian ISPs through a collaboration between Media Networks Latin America and ISP services wholesaler Unotel; n Next-generation multiscreen pay-tv by Italian DTT service provider Mediaset; n Satellite provider DISH Network, as previously described, and many Canal + Spain uses NAGRA anycast PRM to provide the protection that allows it to deliver its Yomvi OTT pay-tv service to devices of every description. more. In all cases MVPDs are benefitting from the range of capabilities built into PRM to facilitate reaching every type of targeted device, from vertical set-tops to a broad range of hybrid IP set-tops and other types of open connected devices, with content that is fully protected in accordance with licensing policies of content suppliers. Service providers have full control over device activation, subscriber authentication and the user experience through a flexible set of usage rules that can be implemented around each service category and subscriber profile no matter whether the devices are closed or open. Supplier Responsiveness and Reliability Equally important, NAGRA, as the supplier of a pay-tv-optimized DRM platform, is a company completely devoted to the service provider market without competing interests or distractions tied to broader agendas. Its business depends on its responsiveness to pay-tv and OTT service providers needs, including most importantly their security requirements and the business models and use cases they want to implement. As MVPDs become more deeply dependent on IP streaming as a core part of their pay-tv business they cannot afford to rely on DRM platforms provided by suppliers for whom MVPD priorities may be of no great concern in the grand scheme of things. Why would a company serving all the interests of video distributors on the Internet invest time and energy on enhancements that are deemed critical to a particular MVPD s multiscreen service agenda? Yet, going forward, DRM platform suppliers timely responsiveness to unique single-entity as well as pan-industry requirements specific to maximizing the multiscreen service opportunity with appropriate security mechanisms will be ever more vital to the success of pay-tv businesses worldwide. NAGRA s presence as a leading global DRM platform supplier provides MVPDs assurance they will not be hobbled in their pursuits of new opportunities, and that their specific requirements will be met so they can continue to expand their multiscreen business strategies. Service Versatility As evidenced by the fact that NAGRA anycast PRM customers operate over a wide variety of networks, including HFC, DSL, fiber, wireless, broadcast and satellite, the platform is agnostic to delivery protocols as well as encoding modes. Further facilitating ease and scope of use, PRM has been pre-integrated with leading third-party transcoders and, where the DRM platform is concerned, can be used in conjunction with third-party CAS environments. Put simply, PRM is designed to enable security for virtually any extension of traditional pay-tv, including: n ABR streamed live and VOD content, n DVR recording and playback, in home or in the cloud, n Media gateway-based conversion from broadcast service to IP streaming in the home, n Sharing of content across multiple devices within authorized domains, n Secure home networking, n Bridge to DTCP-IP devices, n Place shifting to connected devices Multi-DRM Environments There is a wide diversity of platform-based security schemes in consumer electronics devices on the market as previously referenced. For instance, a Connected TV may be embedded with Microsoft or Google technology, but it must also be made part of the service provider s multiscreen strategy. To make all this happen, the NAGRA platform also embraces third-party DRM management, including MPEG DASH-compliant DRMs, as well as use of NAGRA s DRM with closed IP devices, providing a single interface for subscriber management and service definition into the service provider s back-end systems This ensures that no device is left behind. Root of Trust Expertise Where service-provider controlled devices are concerned, NAGRA brings the same rigorous root-of-trust processes to bear in the DRM domain that have made it a global leader in CA implementations with suppliers of SoCs (system-on-chips) for set-top OEMs. Through integration of PRM on set-tops and other controlled devices as part of NAGRA On-Chip Security (NOCS), service providers benefit from a unified and certified approach to hardware root of trust that NAGRA > 6 September 2014 > ScreenPlays >> 5

6 >> Market Intelligence >> CONTENT SECURITY < 5 NAGRA enhances security through proprietary key ladder and logic blocks that are unique to NOCS, facilitating generation of licenses on all such devices in accord with policies set for each user. With the high level of security and algorithmic flexibility built into NOCS, service providers are assured they can meet the licensing requirements set for top-tier HD services and, as new requirements arise, for 4K UHD as well. As discussed earlier, implementation of forensic watermarking will be an essential part of enabling a competitive 4K UHD service featuring recent movie releases and probably high-value TV programming as well. NAGRA will introduce the watermarking processes service providers require within the existing security domain established by PRM and the NAGRA CAS, eliminating the need for major CPE changeouts to facilitate new service security requirements. Moreover, NAGRA is well positioned to implement new requirements on an end-to-end basis across the high-premium value chain, facilitating integration of processes in ways that are beyond the reach of traditional DRM platform suppliers. Open Device Security Management Beyond rigorous support in the closed IP device environment, PRM brings comprehensive key management and other protections into play on all open IP devices, regardless of whether content is sourced from within the service provider s pay-tv ingest and processing domain or from origin servers and CDNs in the outside OTT domain. This unified encryption key management system handles the acquisition of licenses and keys from third-party DRM servers on a per-session basis to deliver protection compatible with each device together with enforcement of all usage, blackout and other policy rules. The system is responsive to all the nuances that differentiate DRM platforms and various generations within Convergence of multi-drm and CAS management through NAGRA anycast PRM allows subscribers to access content on any device connected to the pay-tv service over a DTLA-enabled network. those platforms, including types of encryption methods and file formats used for conveying licenses and policy information. Other aspects of security are managed as well, including processes for authenticating subscribers, protecting subscriber information stored on devices, supporting DTCP-IP over home networks and identifying and responding to instances where IP devices have suffered jailbreak breaches of security, such as hacking of app controls or basic DRM security modes intrinsic to particular device OS. Along with revoking access when such breaches occur, the PRM platform is designed to deliver upgrades to security on devices directly under the service provider s control, ensuring persistent security is maintained over the lifecycle of each device. The NAGRA anycast PRM client for open devices is available as a stand-alone SDK or as part of the NAGRA MediaLive Secure Player for ios/android and PC/Mac. Achieving a TV-Like Experience The availability of a pay-tv-centric DRM platform also means MVPDs can overcome limitations of the DRM security mechanisms used with OTT content to enable a TV-like experience with all content that s delivered as part of the multiscreen TV service. Critically, where live content is concerned, the ability to manage the key refresh cycles required by TV programmers is essential to obtaining licenses for live distribution. Traditional DRM platforms are not designed to accommodate this requirement, which is one reason licensing of content for live streaming has been so difficult. PRM provides full support for key regeneration through live programming viewing sessions as well as other rapid key changes that are part of transforming multiscreen viewing from an Internet to a TV experience. For example, instant delivery of keys and licensing enforcement policies is essential to allowing users to skip from one live channel stream to another, just as they do in the legacy viewing environment. Traditional CAS Features Enhance DRM One of the unique features of PRM is the benefits that come with using the NAGRA anycast to enhance user experience. For example, another feature that is vital to maintaining a high-quality user experience with live programming accessed over ABR streams is timely provisioning of protection and authentication mechanisms for all users when viewership for a uparticular program surges far beyond normal take rates, as frequently happens with sports, special events and debuts of popular programs. Without mitigating mechanisms to address such situations, user session requests can back up on DRM servers, resulting in long program access delays for a large share of the audience. Learning from its extensive experience in broadcast, NAGRA has provided service providers a way to prevent this problem from diminishing subscriber satisfaction with multiscreen pay TV. Rather than relying on unicast delivery of authentication information with each session request, NAGRA has enhanced its PRM system to support simultaneous delivery of keys and authorization to thousands of requesting users. Another advantage stemming from using the NAGRA anycast Security Services Platform with multiscreen service is the platform s support for CAS-DRM convergence in hybrid pay-tv/ott service implementations. Rather than delivering these two service components independently, service providers can combine them using a single NAGRA anycast CONNECT client for hybrid set-tops, where CONNECT protects both broadcast, IPTV and OTT content. This creates a seamless experience on the TV set where users can switch back and forth between legacy and OTT content without encountering delays. More generally, NAGRA s ability to leverage its unified Security Services Platform in ways supportive of multiscreen services streamlines the porting of business models across the legacy and IP domains. Complex business models enabled through the CAS system can be applied to the multiscreen service without having to recompose all the rules and conditions. MVPD-Friendly Business Models NAGRA has created business models in conjunction with MVPDs use of the PRM platform that are specifically tailored to pay-tv market economics. The company s goal is to help service providers build their 6 >> ScreenPlays > To subscribe go to

7 >> Market Intelligence >> CONTENT SECURITY strength in the new multiscreen pay-tv marketplace, and to ensure the long-term success of the service for both parties. One critical way to ensure that is to recognize that MVPDs, at least for now, are not usually gaining significant new revenues by supporting TV service access on more devices. Licensing of DRM usage on a per-device basis, therefore, may be counterproductive to both buyers and seller. Other models may be more appropriate, such as licensing on a per-household basis. Flexibility based around usage rates and other metrics is also called for. NAGRA has implemented a flexible approach to constructing license agreements that will allow every customer to utilize the PRM platform to maximum advantage. Conclusion Security management need not be an impediment to the growth of multiscreen pay-tv services. Indeed, properly implemented, a holistic, MVPD-optimized security management platform can be the key to enabling heretofore impossible service advances, not only by unfreezing licensing of content for new applications but also by eliminating daunting cost barriers to expansion. The next-generation multiscreen security management job is too big to accomplish using old methods, including DRM management platforms that weren t designed for the rigors of the pay-tv market. Expanding volumes of content, growing diversity of devices, multiplying usage policies and the emergence of new security requirements task security management in ways never seen in the early days of TV Everywhere expansion. The NAGRA anycast Persistent Rights Management platform, now in operation in next-gen service rollouts worldwide, has established itself as the viable solution MVPDs can rely on to unencumber their pursuits of new opportunities through implementation of all essential security requirements. By gaining complete control over DRM management they gain complete control over both the closed and open devices that access their services, leaving them free to devote operations and development energies to the service features essential to driving ROI and customer satisfaction. < 1 Leichtman Research Group, Emerging Video Services VII, May Altman Vilandrie & Co Consumer Video Research, November Cisco Systems, Internet Business Solutions Group, It Came to Me in a Stream The Upward Arc of Online Video, December 2012 September 2014 > ScreenPlays >> 7

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