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Opencable and Smart Cards in Digital TV Erik Gazzoni

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Opencable and Smart Cards in Digital TV Erik Gazzoni OpenCable and Smart Cards in Digital TV Erik Gazzoni Director of Marketing US Digital TV & Broadband Smart Card Alliance Jacksonville, Florida October 15th 2003 All Company and/or product names are trademarks and/or registered trademarks of their respective owners AGENDA 1. OpenCable Overview 2. US DTV market Overview 3. Benefits for OpenCable players 4. Conclusion SmartCard Alliance - October 2003 Page 2 1- OpenCable: History ♦ When? started in 1997 ♦ What? helping the Cable industry deploy Interactive Services over cable ♦ How? defining set of Industry Standards ♦ Goals? – Define the next-generation digital consumer device – Encourage supplier competition – Create a retail hardware platform SmartCard Alliance - October 2003 Page 3 1- Cable Plant Architecture ConditionalConditional Access Access TV System PODPOD TV InternetInternet System ContentContent STBSTB DTVDTV HeadendHeadend Video Video ProcessingProcessing ContentContent CenterCenter OtherOther ContentContent HeadendHeadend Mgmt. Retail POD Mgmt. Retail POD CenterCenter IntegratedIntegrated DTVDTV Terminal Terminal SmartCard Alliance - October 2003 Page 4 1- SCTE 28 CableCARD-Host Interface Protected by CableCARD Cable System CA Protected by Conditional Descramble POD-CP & Process Access System System HOST 1394 + 5C QPSK Tuner & Demod MPEG-2 Demux QPSK Mod & Decode & Xmtr CPU QAM Tuner User I/F & Demod OS, Memory SmartCard Alliance - October 2003 Page 5 1- SCTE 28 Overview ♦ Enables Separation of Security from Navigation (STB) to Meet Retail Navigation Order (FCC mandate) ♦ Supports Legacy Conditional Access Systems ♦ Provides Renewable, Replaceable Encryption ♦ Unifies OOB Signaling Systems ♦ Built upon NRSS-B (EIA-679B, part-B) – Adds extensions, constraints and changes ♦ Defines CableCARD physical interface based on PC-Card (PCMCIA) – Defines initialization, signal timing, link interface, application interface, MMI, etc. SmartCard Alliance - October 2003 Page 6 1- Copy Protection Features ♦ Protects content de-scrambled by the CableCARD ♦ DES based security ♦ Based on secrets held by trusted devices ♦ Licensed technology and secrets enable legal remedies to piracy (DFAST) ♦ No hard ‘revocation’ ♦ Content will be CA deauthorized to Hosts not trusted by the content provider. ♦ POD-Host License Agreement (PHILA) is signed with CableLabs to acquire secret keys SmartCard Alliance - October 2003 Page 7 1- OpenCable: Milestones ♦ 1988: creation of CableLabs ♦ May 1998: first OpenCable draft Specifications ♦ Dec 1998: OpenCable Test Tool ♦ Aug 1999: first Interoperability forum ♦ Jan 2000: POD/Host Copy Protection release ♦ July 2000: availability of POD ♦ Jan 2002: OCAP Specifications ♦ Dec 2002: NCTA/CEA agreement on PnP devices ♦ Summer 2003: 3 CableCARD makers and 1 TV manufacturers qualified SmartCard Alliance - October 2003 Page 8 1- OpenCable: Status ♦ Companies already qualified by CableLabs – Motorola: CableCARD manufacturer – Scientific-Atlanta: CableCARD manufacturer – SCM (NDS): CableCARD manufacturer – Panasonic: Digital Cable-Ready TV ♦ CableLabs specs move to Standards (SCTE) ♦ More companies to be qualified by Q1 ‘04 and first large deployment SmartCard Alliance - October 2003 Page 9 AGENDA 1. OpenCable Overview 2. US DTV market 3. Benefits for OpenCable players 4. Conclusion SmartCard Alliance - October 2003 Page 10 2- US DTV Market ♦Satellite: – Echostar (Dish Network): DVB-S / CA=Nagrastar (Nagravision): 8.2M Digital subscribers – DirecTV (Hughes): DSS / CA=NDS: 11.2M Digital subscribers – Translates to greater than 20M Smart Cards ♦Cable: MSO CA Ana. Dig. – ComCast/AT&T Broadband GI DigiCipher 21.3M 6.6M – AOL Time Warner Cable SA PowerKey 11.0M 3.7M – Charter Communications SA PowerKey 6.5M 2.6M – Cox Communications GI DigiCipher 6.3M 1.8M – Adelphia Communications GI DigiCipher 5.3M 1.8M – Cablevision NDS Videoguard3.0M 220K SmartCard Alliance - October 2003 Page 11 2- The duopoly in US Cable ♦ Motorola & Scientific-Atlanta own 99% of the market ♦ They provide: – Conditional Access System – Set-top boxes – Head-end equipment ♦ Operators are locked: – They have no choice to buy boxes from them SmartCard Alliance - October 2003 Page 12 2- The situation (Nov 2002) ♦ Basic Cable Households: 73.5 Mio ♦ US Television Households: 110.5 Mio ♦ Digital subscribers: 19.2 Mio Source: NCTA Nov 2002 SmartCard Alliance - October 2003 Page 13 2- Good news in the US ♦Dec. 19th 2003: NCTA/CEA agreement on OpenCable PnP devices: – First deployment of Digital Cable-Ready TV sets by Christmas 03 NCTA: Nation Cable Telecommunication Association CEA: Consumer Electronics Association SmartCard Alliance - October 2003 Page 14 AGENDA 1. OpenCable Overview 2. US DTV market 3. Benefits for OpenCable players 4. Conclusion SmartCard Alliance - October 2003 Page 15 Market View of Today´s Digital TV Environment ♦ Consumers can choose their cars ♦ Consumers can choose their phones ♦ Consumers can choose their audio and video systems “In our world, any successful consumer business offers “free choice” for the consumer.” ♦ However, consumer´s CANNOT choose their receiver WhyWhy shouldshould thisthis change?change? SmartCard Alliance - October 2003 Page 16 Market Trends - Today´s Environment ♦ Operator Specific Receiver – in majority owned by the operator – leased to the consumers – few pre-selected suppliers – fixed feature set Æ Heavy investment for the operator! SmartCard Alliance - October 2003 Page 17 Market Trends - From Lease to Retail ♦ “Universal“ Receiver – owned by the consumer – feature/price competitive – compatible with all current and future services with add-on modules – own ONLY 1 receiver while possible to enjoy programs & services from multiple providers. ÆOperator “sponsors” only the CableCARD! SmartCard Alliance - October 2003 Page 18 Market Trends - From STB to TV Set Integrated DTV Set • 1x unique device • support Premium & Pay- per-view channels • HDTV ready, 100% Digital Set-top / TV combination • 2x separate devices • feature overlap • remote controls & user interfaces conflict • signal degradation (analog link) SmartCard Alliance - October 2003 Page 19 Modular Security : Benefits ♦ Broadcasters, Content Providers: – Renewability – Security - revenue & investment protection – Cost-saving against investment into hardware & non-value adding activities (receiver supply, support and warranty) – Focus on core business (source of revenue from contents) – Choice of CA partners as greater numbers of CA companies choose CableCARD module and CI platform. ♦ CE Manufacturers: – Low cost as free to air receiver + CA ready – Low entry barrier into markets using CA => No up-front investment for loyalty to CA company – Longer life cycle - one model for wider and different markets – Less security encumbrances in box – Creation of open and horizontal market – Design devices with premium content: HDTV, … SmartCard Alliance - October 2003 Page 20 Smart Card Challenge ♦ All Conditional Access (CA) companies are Smart Card based: – Nagravision (Kudelski Group) – NDS (News Corp.) – Irdeto – Canal+… ♦ US incumbents (Motorola and SA) don’t use Smart Card ♦ OpenCable by opening-up the market will definitely enable Smart Card usage in Cable Industry SmartCard Alliance - October 2003 Page 21 CONCLUSION ...any Questions? ...Thank You! Erik Gazzoni [email protected] SmartCard Alliance - October 2003 Page 22.
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