Open House, Locked Door?

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o you remember the 1970s? Those of us who misspent our usage models. “Crucially, for anyone who teenage years during that decade had a simple solution to wants to be serious player, it shouldn’t Dsharing our favourite music with our peers: invite them round to stand in the way,” he states. hear the latest album on our parents’ stereo record player, or converge Eric Diehl, security domain director of on a friend to make use of his or her folks’ music centre. The lucky Thomson’s technology division, suggests among us might even be able to hook up a lead to the record player that normally it’s a contractual agreement to and tape the record onto an audiocassette, and share it that way. enforce, and the service provider has to As far as TV broadcasts went, the only way to see a favourite employ some form of DRM, Conditional programme again was to wait for a repeat. The advent of consumer Access or Content Protection. For him, it is VHS machines and tapes considerably eased that problem, with an important to question whether it is well done increasing range of programming and studio movie product being from the point of view of the user. “Is DRM’s made available for rental and purchase. The physical nature of the biggest problem not fulfilling the expectations content format was maintained with the arrival of CDs and DVDs, but of customers,” he muses. “The consumer with these often came an unwanted extra – a form of content wants to use the content around the house- protection that would only enable playback on a compatible device, hold,” he observes. “It’s a plea for interoper- with copying made impossible for the average consumer. ability - the ‘Holy Grail’ of DRM. He As the 80s and 90s progressed, portability increased, but the espouses the notion of the ‘domain’, which content was still in a physical form. The concept of ‘my media’ effec- covers a set of devices that belong to the tively related to a consumer’s collection of vinyl, audio and videotapes. consumer. It’s a way to extend your Then along came digital networking, and as Rob Logan, CEO, household, he suggests. In this ContentGuard observes, two versions of content distribution emerged. respect, he recommends consider- One was driven by the owner of the content, the other by the ation of the DVB Projects DVB-CPCM consumer, empowered by the digital networks. “ A balance needs to system, which he feels could be a win-win be found between the two,” he suggests. for content protection and the customer. “The ROLE PLAY. The first – broadcast distribution - was distributor best way to win is to make legal means [of con- driven, concerned with protection sumption] more attractive than illegal,” he concludes. and monetisation, and had 50 RULE CHANGE. According to Werner Strydom, director years of history; the second – net- of IPTV products, Irdeto, DRM changes the rules from the point work distribution – had Usage as a of view of the consumer. “You pay for the content, but the rules core principle, based on sharing become stiffer, therefore there’s an imbalance. At best it should be an and enabling. Logan suggests that enabler/disabler. It’s not the problem, it’s the way it’s being used.” He ‘Version 3.0’ is emerging today. He suggests that content owners can’t live without DRM, and accepts that describes this as ‘eXtreme it needs to be as easy and transparent as possible for the consumer. Distribution’ with Empowering at its For Ivan Verbesselt, Nagravision SVP marketing, DRM is an over- heart. “In this, the Distributor and loaded term, for an activity that is concerned with the content as well Consumer have complementary as service protection and propagation. A win-win can be created pro- roles. The consumer is embraced vided we don’t over DRM-ise the process,” he warns. and rewarded for behaviour and Richard Bullwinkle, chief evangelist, Macrovision, sees power shift- the value-add to the ecosystem. ing towards the users. “They’ll demand that there will be more aggres- There is a symbiotic relationship sive ‘use cases,’ adding that it’s not so much a question of ‘how will “There is a between and among content DRM shape the market?’ it’s more how users will let us shape it.” symbiotic creators, owners and consumers.” relationship between Logan is confident that DRM Content Security in a multi-platform, ‘my media’ can bring together the needs of and among content content owners and consumers, world, remains a key concern among content creators, owners but can it really balance the needs providers and platform operators. CA, DRM, and consumers.” of content owners and consumers to create a ‘win-win’ situation? Watermarking, all play their part. Can an ideal - Rob Logan, CEO, Howard Silverman, NDS product world of IP-driven seamless interoperability ever marketing manager, believes that ContentGuard this is possible and shouldn’t inter- be compatible with copyright protection? fere with the range of content Colin Mann finds out. Open house, locked door?

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Noting that there is no standard tent to go? What does he fear? DRM or media format, he says What does he want to profit from?” that consumers are confused and LOSING CONTROL. Another won’t be disposed to buy content. area of focus is whether content “The user has no confidence that owners really benefit from access- my media will come with me,” he ing the new markets and revenue says. “People are learning opportunities without relinquishing how to steal content control of their content. Fred Ellis, that they can play any- CEO of SecureMedia, says this is where. Unless we come absolutely possible, if it can be put up with a standard, then in the market at a low enough we’ll have to get rid [of price. “All that needs to be asked “For anyone who DRM].” is: ‘Are you authorised to play wants to be serious Geir Bjørndal, COO at back the content?’” Thomson’s player, it shouldn’t Conax, accepts that there is a Diehl suggests that content own- stand in the way.” new challenge when content ers’ main concern is that they want comes into the home, and sug- to make sure people won’t make gests that money of - Howard Silverman, one of the their back. NDS main problems “So long as with DRM is that it people are presents a reduced paying, it’s fine,” he says. business model. Macrovision’s Bullwinkle suggests that it is “Content providers will still possible for the content owner to set param- give more opportunity if the eters. “You need to figure out a fair use case. content is traceable,” he sug- It’s a great opportunity for him.” NDS’s gests, noting that watermarking is Silverman considers this “the essential issue, increasingly being adopted. “It’s a move away based on rights enforcement and fair usage. from Conditional Access, where you have “DRM is not the issue, the models are there.” active protection until it is released.” Latens’ Mathieson suggests that content owners Andy Mathieson, director, Latens, sees the are benefiting. “They stay away, then begin to matter as a series of compromises between experiment. Maybe they can’t control the con- business models and technology, and notes tent, but they look at business models that will the problems created with so many people help to monetise it. They need to get to mass being involved in the supply chain. Robert audiences. That’s why they experiment with new Payne, general manager and VP of sales with release windows.” Simon Drinkwater, VP sales, Verimatrix, suggests that it’s a series of com- EMEA at Entriq, accepts that much depends mercial policy, service-led questions. “Where how much the consumer values the content, does the content owner want to allow the con- while his colleague Andrew Ioannou, VP busi-

WHAT IS DVB-CPCM? WHY IS DVB along with them while on the road. multi-device, networked homes. DEVELOPING DVB- Films and television DVB-CPCM corrects that DVB-CPCM is a system for Content CPCM? programmes are delivered in a vari- disconnect between the functional- Protection and Copy Management ety of ways to consumers with dif- ity of devices and the management of commercial digital content The initial ‘analogue assumption’ in ferent usage ‘offers’. Today’s tech- of content usage offers. DVB-CPCM delivered to consumer products. It place when DVB first began defin- nology has the ability to allow con- manages the content in accordance protects audio-visual works, ing terrestrial, cable and satellite sumers to enjoy films and TV in an with rights granted by the content including films and television TV transmission and reception incredible variety of ways. Current providers or distributor. It allows programmes AFTER they have been standards are no longer true. mechanisms for protecting content for the elaboration of distinct, received by a consumer to ensure Consumers are increasingly within the home environment fall flexible offers. DVB-CPCM that the usage is managed in receiving content from multiple short of the needs of many stake- therefore allows content providers accordance with rights granted by sources, enjoying it on multiple holders including consumers and to offer more choices to the content owner or broadcaster. devices around their home and content producers, in that they are consumers. even accessing it or carrying it too simplistic for today’s Source: DVB Project

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the bench- mark is still physical distribution, “and that’s still fairly insecure, but still more convenient than STBs and iPods.” He notes that as the value “There is a new of the content challenge when increases, content comes into such as with HD, protec- the home.” tion will be more strin- - Geir Bjørndal, gent. Conax SEAMLESS ness development, channels and partners, suggests that it is impor- TRANSFER. Whereas the 70s tant to support all business model changes. “The key is to be flexible.” and 80s consumer was grateful for Alex Terpstra of Philips’ content identification group, perceives a the ability to transfer vinyl onto cassette, the modern-day user is far slight change of mind of some management regarding the distribution more demanding. How can you ensure seamless transfer of content to a range of different devices? Silverman suggests that if the DRM is visible, it’s not doing its job. “There’s some experimentation at the moment. There are technical hurdles to be overcome, such as sizing, formats, DRM hand-over and speeds. These are all issues that need to be addressed.” “The format issue will go away in time,” pre- dicts Bullwinkle. “It’ll be more a case of ‘download and play’. With pipes becoming larger, stor- age will decline. You’ll buy the rights to a piece of content. The library will “The best way to of their content, with the arrival of techniques such as watermarking identify and send the appropriate win is to make legal providing tools and ecosystems that identify usage and provide links format. It may be a bit Utopian, but means of consump- to databases where consumption rights are captured. “Some are more I don’t see an easy solution. tion more attractive cautious. We want to make sure we can provide the technology to There’s a lot to iron out until things than illegal.” enable them,” he says. are really seamless.” Pierre Hunter, Matt Cannard, VP marketing at Widevine, observes a change in the director business development, way monetisation is occurring. “No longer is DRM limiting rights,” he Irdeto, suggests that in terms of - Eric Diehl, suggests. “We have now got true multi-platform protection, and the interoperability, nowadays the con- Thomson traditional models are in flux.” Nagravision’s Verbesselt suggests that sumer expects to play the content

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Verimatrix’s Payne contends that it’s not technology driving the business models. “Content owners want to slice as thinly as possible,” he suggests. “Where do they see the profit stream?” His marketing VP colleague Steve Christian adds that DRM only enforces the business rules set by the owner. “It depends on the “The promise is to value put on the content buy once and play by the owner.” According on any device within to François Moreau de the home and on the on any device. “That calls for device and format interoperability, but Saint Martin, CEO of Viaccess, the move.” from the content owners point of view, if they lose the content, they company addresses the multi- can’t generate revenue.” device content distribution conun- drum through its CAS- - François Moreau DRM bridge solutions. “In de Saint Martin, simple terms, the prom- Viaccess ise is to buy once and play on any device within the home and on the move,” he explains. HASSLE-FREE. Bjørndal accepts that how to integrate fully is a hard nut to crack, with so many outlets in the home, and notes that watermarking is an important tool for content providers. He is happy to work with others to help achieve interoperability and seamless transfer. “We think it’s best to work with expert integra- tors. They have many components that are applicable to middle- ware. Our philosophy is not to compete with our partners.” He prefers to focus on the security part of value chain. “We need to ask; ‘What is beneficial for the customer?’” Gisle Ostereng, CEO of SecureMedia, says that the IP world gives new ideas in terms of content security. “It’s important to “Unless we come up have a transparent sys- with a standard, tem. It’s about the user then we’ll have to experience. There should get rid of DRM.” be no hassle.” Verbesselt sees seamless transfer as being - Richard Bullwinkle, achievable via ‘persistent Macrovision rights management’ tools that allow rights within bounds of the ‘doable’. “There are opportunities for bundling across devices, but it will take a lot of pragmatism across the

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industry,” he says. As with Thomson’s Diehl, he sees a significant role for DVB-CPCM. “It will be great if we can achieve this as an industry.” Payne observes that with multiple devices, you need flexibility. “Consumers don’t want DRM to constrain and interfere. When the content is easy to consume, they’ll come back for more.” SecureMedia’s Ellis says that it is his company’s intent that the user “All that needs to be never knows what form of DRM, asked is: ‘Are you content protection or such like is operating. He warns, “these things authorised to play can dissuade the consumer, you back the content?’” need to separate the content from the rights, and there should be a - Fred Ellis, different fee for a different device. SecureMedia We believe it’s the only way to strike the balance.” PLATFORM POWER. In terms of portability and ubiquity, Apple is predominant with its iPod and related devices, so is there a case for having complete control from the platform to the device? Silverman observes that it is effectively a closed network. “It’s a business built on margins selling devices and effectively giving away the content,” sug- gesting that you’ll continue to see ‘open’ and ‘closed’ offerings. “You’ll find both – one can’t win. It’ll take time before we see significant For many, an issue equally as important as transparency of content change in structure.” Logan disagrees. “Walled gardens are not sus- protection and enablement is whether the solution should be software, tainable in the networked world.” or hardware based. The more-established broadcast model is based Viaccess’s Moreau de Saint Martin advises that service operators on Smart Card and set-top box hardware, but the emergence of telco like addressing controlled devices, so as to ensure the total control of IPTV platforms and alternative consumption devices has seen the security and user experience, and non controlled devices, so as to let emergence of software alternatives. Diehl laments the fact that hack- the end customer buy any device in the retail market. “We let them ers will always find a way to try to access the content. He says that address both the control and the non-controlled devices with an end hardware solutions will be more costly, and describes the world of to end security solution through a single Service Platform integration,” conditional access and content protection as “mostly a black art. If I he explains. “Apple’s position has been gained through the product, were a hacker, I know what I’d attack.” rather than the service,” suggests Ellis. RIP-OFF. Silverman notes that hardware security hooks are being

Content the makers allowing them to easily content at a time. The Babelgum management system incorporates a Babelgum way manage and monetise their assets content management system also number of features which give on the platform, without relinquish- caters for content owners who have content owners tight control over Mark Cranwell, director ing control of their content; rein- significantly large catalogues and how their content is viewed. content acquisition, forcing Babelgum’s commitment to need special licensing options or Babelgum recognises that Babelgum, explains how the being a platform for qualified dis- delivery methods. secure and robust content security global Internet television tribution, but open monetisation. With its geoblocking technolo- systems are required to ensure network has developed a The content management gy, the platform is able to decide content owners feel comfortable system which both protects system, incorporates a free direct which territories are able to when distributing their material on content owners from piracy, upload facility, ensuring content receive content, and the advanced online platforms. The content and delivers a commercial owners have a quick and easy way content encryption methods management system and peer-to- return. to manage their content on Babelgum uses ensures stringent peer model used by Babelgum illus- Babelgum. Content owners simply security. Content owners are also trates how the needs of both Babelgum has introduced a sign an online agreement to begin able to decide the length of time content owners and viewers – who comprehensive content manage- uploading content and have the the content remains on the are treated to a wider range of ment system for content producers, choice of either uploading entire platform, retaining the ability to programming - can be balanced rights owners and programme libraries or just a selection of their remove it. The content without compromising security.

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addressed, with people taking solutions and can call on its CAS- NDS’s lead. “You want to be able DRM bridge to provide seamless to combine the two,” he distribution. Meanwhile, according suggests, noting that IP is still a to SecureMedia’s Ellis, the compa- nascent market; as it grows ny believes that software is the larger, hackers will take a look. only path for the future. “That’s when the question will be A vexed question is what is a addressed.” Bullwinkle also sensible CA/DRM approach when seems resigned to the fact that there are territory rights issues, but piracy will occur, whatever. “You’ll the content is free and ad Google for hints on how to rip supported? Is it a question of from a DVD,” he suggests. ‘secure enough’ on the basis that According to Bjørndal, with the people won’t pay for ‘platinum’ arrival of IPTV, “there’s a problem security? “The price has to fit the “From the content with telco people liking software value of the business,” says owners point of solutions. We recommend a Silverman. “NDS is looking at ad- smart card, it’s a higher level of supported models. You’ll still need view, if they lose security.” to secure the content. If it’s peeled content, they can’t Moreau de Saint Martin off, it is still a form of piracy. generate revenue.” doesn’t see software-based CA Content owners will typically try to as the only workable solution. “A resist access, which entails geofil- - Pierre Hunter, hardware-based solution is also tering and geotracking; that’s been workable through, for example, part of the approach for the PC Irdeto USB Dongle, Smart card, CAM world.” Bjørndal admits that a etcetera, depending on ‘secure enough’ approach is being customers requirements and considered in some markets, but is not yet deployed. He recommends business model.” He confirms the benefits of a ‘starter package’, which you could then upgrade to that Viaccess offers both higher level.

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