Just this month, I am proud to say we hit another major milestone that reflects as much on the entire digital video industry, as it does on Verimatrix. We celebrated reaching 500+ pay-TV operator customers and securing more than 20 million screens. (For additional milestones, read about our global number one ranking in Content Protection/DRM in MRG’s IPTV Market Leader report – for 5 1/2 consecutive  years!)

A large part of our tremendous growth has been due to the pay-TV planets colliding. Back in 2006, virtually all of our customers were delivering green field IPTV services over managed networks. Fast forward six years, our heritage in IP-based security techniques has placed Verimatrix in the center of this collision.

Cable and satellite providers are taking advantage of IP networks for two-way communication – over both managed and unmanaged (OTT) networks.  IPTV operators are also turning to Internet-based OTT video to enable a compelling multi-screen experience. And we are finding that increasingly even “pure play” OTT video providers need to meet the same content security requirements for premium video as the traditional operators do (see our latest white paper, Content Security Requirements for Multi-Screen Video Services.) Of course, there remain tens of thousands of analog operators that are still transitioning to digital (India’s Phase I digitization this year presents a wealth of opportunities.)

Our cable and satellite (DVB) customer base increased 100% in 2011, and we’ve had a 500% growth in secure OTT video services. Based on feedback from customers, particularly our DVB customers, they feel more confident that our VCAS solutions will help them extend into multi-network, multi-screen video services more efficiently.

Additional proof of our position in the market can be found in our 3-Dimensional Security approach, which we introduced more than three years ago: Flexible layers of protection techniques that address evolving business needs and revenue threats. In other words, any screen over any network to meet any threat. This clearly still rings true today.

Since celebrating this milestone was so much fun, everyone is focused on reaching the next one!

How can we provide our customers with the most innovative solutions for securing and enhancing revenue for multi-network digital TV services on the market today?

This month, Verimatrix has been recognized for our innovation by two separate entities, both distinguished in their own right.

During CES 2012, our MultiRights solution won the Content Protection category at the prestigious 2012 TV Innovation Awards.  Very exciting news, especially considering the source of the award.  Now in its third year and administered by IMS Research, the 2012 TV Innovation Awards are one of the premier endorsements of innovation in television. The awards recognize the most forward-thinking companies that are creating products and services to change the way people watch television.  We are thrilled that Verimatrix was honored as one of these companies.

We feel that this commitment to innovation has also contributed to our sustained market leadership in software-based security. In December, MRG released its bi-annual IPTV Market Leaders Report that named Verimatrix in the top position. This marks the 11th consecutive time that we have maintained our market share in IPTV, representing 5 ½ years of Verimatrix global leadership.

Not a bad way to ring in the New Year!  We are thrilled to kick off 2012 on such a high note and look forward to continuing our relentless innovation in multi-network and multi-screen content protection and revenue security. Our philosophy is that if we offer our customers innovative solutions for securing and enhancing revenue on their multi-network digital TV services, we help them to market leadership positions in their own business. Their success becomes our success.

On his Copyright and Technology blog, he describes the objective of this paper as an effort “to gather actual security requirements from major content owners and describe them in a single document. The intent is to help pay-TV operators and other video service providers that are looking to launch multi-screen video services, so that they know what to expect and avoid any unpleasant surprises with regard to security requirements when licensing content to offer through their services.”

Bill summarizes one of the major findings while developing these content security guidelines. “Life for pay-TV operators used to be relatively simple: adopt a conditional access (CA) technology that was equally effective in thwarting signal theft as it was in thwarting content piracy. Economic and security goals were aligned between operators and copyright owners.  Now life is considerably more complicated, as operators have to support home networks and branch out into mobile services. Content security requirements are more complicated as well.”

Click here to read the entire post from Bill’s Copyright and Technology blog. Download the paper and let us know if you agree with the content security guidelines for multi-screen video services.

To help navigate this landscape and to better serve our customers and the market, we helped develop a paper that will serve as a content licensing and security guide for video service providers planning multi-network, multi-screen services. We teamed with Bill Rosenblatt, founder of GiantSteps Media Technology Strategies, who has been steeped in digital rights and content management technologies for many years and has served as technical expert in litigation and public policy initiatives related to digital copyright.

Basically, he has the studio relationships, technical and legal chops and objective perspective to summarize available information and draw conclusions that are valuable to service providers.

We believe this is the most comprehensive guide available today on how the approach to multi-screen and TV Everywhere types of services relate to traditional licensing and security rules. In general, we found that practical security requirements for over-the-top (OTT) services and portable devices are becoming more analogous to traditional video delivery as the industry matures, meaning the requirements are becoming more stringent.

It is HD content, delivered to any device, that has become primary benchmark in licensing terms and security requirements. The physical media delivery regime for HD was fundamentally grounded in the AACS protection model – now the application of similar principles and in the digital delivery domain is part of the background, although we are seeing trends that this is changing.

In fact, the content of this first version of the paper highlights areas – licensing attributes, new security techniques, release windows, usage rules and studio policies – that are most in flux and provides signposts on where requirements are headed. Of course, market dynamics will never stop shifting. Content owners will attempt to influence them through their licensing deals, and content protection requirements are among the most important licensing terms.  When appropriate, we will update our conclusions over time and use future versions of the paper as a vehicle for updates and elaborations as the industry evolves.

Whether you are a traditional managed-network operator, an OTT video startup, or an ecosystem partner developing devices and apps for premium video delivery, this paper is a must-read to gain a better understanding of content and revenue security in the changing world of multi-screen services.

If you are facing some of these choices in launching new breeds of services, please take a minute to download this paper and let us know what you think. We look forward to continuing this discussion!

We laid out our product roadmap to show how we are meeting the needs of both our DVB and IPTV customers that are broadening their services to hybrid DVB-IP and multi-screen delivery. We haven’t received an RFP in the last 12 months that didn’t include some multi-network, multi-screen component. Even if customers are not ready to make that type of network transition now, they certainly want to understand their future options.

The Summit also provided a valuable forum to exchange views with experts and industry peers on the state of revenue security, potential threats and the piracy scene, and what’s next in the pay-TV marketplace.

We brought in two guest speakers to provide a broader view: Alan Constant and Steve Bjuvgard of Imediaco, a firm that provides technical and strategic consulting services across the entire range of media distribution technologies with particular expertise in video security. Alan offered an insightful perspective on the next 10 years of pay TV, by examining the previous 10 years. His convergence prediction is that DTH will be initially replaced by some form of hybrid network and then OTT on unmanaged networks.

Steve dug deep into piracy issues with some regional case study examples. He deftly broke down the status of piracy, along with the regulatory and legal enforcement environments in Asia and the Middle East. For example, in some Middle Eastern countries, it is estimated that up to 40% of urban households accessing pay-TV signals are unauthorized – meaning non-paying users.

Fresh from IBC, I also had some reflections to share. The most obvious was the lack of 3D “noise” on the show floor when compared to 2010. We saw only modest advancements in the positioning and development of 3D solutions and services. The 3D hype was soundly replaced by multi-screen services – although definitions differ, it is clearly the evolution of network convergence and it is no longer considered “new and mysterious” as it has been in years past. And it is worth pointing out that the falling prices of DVB set-tops are opening new markets, particularly in emerging regions.

Of course, operators are making decisions on the best ways to secure assets on these different delivery networks. As a validation of the software-based security approach, we saw even the legacy smartcard providers announce their software-based, multi-screen solutions. Of course, the other piece to the multi-network, multi-screen puzzle is content rights, which we find are dragging out these next-generation implementations.

We are working on some ground-breaking research regarding content rights across different networks and devices, so stay tuned.

All in all, the attendees at the EMEA Autumn Summit were a very interesting and dynamic group, representing both technical and business disciplines, with very ambitious and advanced business plans.  The speakers shared the difficulties of combatting piracy, not only through technical means but also through judicial, commercial, and creative mechanisms.

Of course, fun was had by all during our “extracurricular activities,” such as the visit to the Erdinger brewery with an extended tour of its facilities, where we learned everything worth knowing about beer making, and the Oktoberfest event itself, which was a totally OTT event (pun intended).

We look forward to hosting more events in 2012. We would love to get your input on what you’d like to hear from Verimatrix. Leave a comment and let us know.

So what was the topic of this year’s biggest digital TV conference? Well, actually, I was disappointed because it was multi-screen or any screen or something along those lines. But why is it disappointing you ask? Because we have been promoting this concept for years! And specifically securing premium pay TV content to all screens that subscribers find useful. In reality, I am really quite pleased that the industry finally caught up with our innovative security approach.

Let me offer you my observation about at least one of the less obvious challenges related to delivering rich combinations of TV services to all these connected TVs and portable platforms.  The challenge is reproducing many aspects of the live TV experience in a scalable fashion. Therefore, we are firm believers that, as this market matures, Internet TV services will naturally need a combined solution for both on-demand and live consumption.

None of the critical adaptive bitrate streaming protocols out there, specifically Smooth Streaming and HTTP Live Streaming (HLS), have been defined in a way that makes it easy to support tens of thousands of concurrent subscribers watching a major live event such as the soccer World Cup in real time.

When compared to the well-honed DVB broadcast technologies, some of the key issues of practical concern, like managing semi-synchronized key changes and addressing revenue leakage through re-broadcasting of various kinds, are not yet developed to scale in a streaming environment.

Addressing these kinds of issues takes Internet TV to the commercial level necessary to truly reproduce the pay-TV service paradigm–and associated revenue models – with which we are all familiar. This is where our experience from the IPTV and DVB worlds comes in really handy; where content is distributed to millions of subscribers while managing device entitlement, device security and frequent real-time rights changes.

If this makes you wonder if your current or planned multi-screen service scales beyond just a proof of concept or a friendly trial, give us a call. We are happy to show you how our VCAS for Internet solves this problem without installing a large number of servers in your head-end.

And don’t forget to stop by an old-fashioned cheese farm while visiting Gouda.

Steve Christian was recently featured on the increasingly popular Pay OTT TV Blog from Tvinici, which was highlighted at IBC 2011. 

Content security is one of the most complex issues associated with OTT TV.

We have asked Steve Christian, VP Marketing at Verimatrix, to give us the DRM / Conditional Access perspective of OTT TV (Verimatrix provides software-based security solutions for service providers).

Steve, What do you think are the main reasons behind pay TV operators expanding into the Over-the-Top Space?

A key driver is to be able to cover the bases of additional screens in the home, which from a defensive perspective would gather eyeballs of competitive or niche services. From a more positive standpoint this raises the competitive bar for other pay-TV operators in the same franchise area or region. Another reason is to be able to expand the geographic reach of the operator’s service brand beyond the existing subscriber pool, potentially to a worldwide audience.

What are the greatest challenges associated with content protection in the pay-OTT space?

The greatest challenge is awareness of content protection issues at a high level, and the details of how this must be supported at fine grain level.

To read the complete Q&A, please visit the Pay OTT Blog.

Check out the post and leave a comment so we can continue this discussion!

And stop by our booth at IBC 2011 – 4.B54!

Since last year’s show, it seems the digital TV industry has entered a new period of pragmatism and commercial maturity. This feels like a welcome period of stabilization after the recent cycles of hype following OTT’s emergence as a viable new technical option for service delivery.

The commercial and technical communities are now clearly rethinking some early bets. And we would argue that the tendency to give services and content away for free, or for minimal ROI, just because they represent new and flashy beachheads for promotion, is increasingly being eclipsed by the trend to include Internet delivery options as a component of existing video service relationships.

Yes, there are some pure play OTT providers on the scene that have certainly been aggressive and innovative. But as the dust settles, we anticipate that they may be increasingly been seen as complementary or niche service options among a field of competitive options led primarily by established service brands.

At IBC 2011, we expect to see the growth of content delivery over the Internet as a parallel and complementary component of pay-TV services, simply using a different technology base from the other components of the service delivered using traditional managed networks.  I expect that the two will look increasingly similar or highly merged as far as business models and key players are concerned.

From our perspective, Verimatrix is highly visible at IBC 2011 as a key independent player in the world of revenue and content security, offering a flexible and comprehensive set of solutions to multi-network, multi-screen video business delivery challenges.  Being independent has proven to be an increasingly valuable differentiator for us as it has provided us with the flexibility and means to focus solely on content security.

Drop by our booth (#4.B54) at the show, to learn more about:

• Enhancements to our OTT security solution, VCAS for Internet TV, and the rationale for investing in these areas. As the global footprint for OTT services grows, we are adding captioning support for multilingual programming, on-screen display (OSD) fingerprinting, dynamic copy control directives and more. Find out why.

•  The competitive advantage generated for our customers by the integration of Verimatrix IP technology and the mature DVB technology we acquired earlier in the year. One of the clear benefits is a common rights management approach and an architecture for hybrid client devices that enables dynamic dual network functionality for combinations of DVB and intermittent IP delivery networks.

• The alignment of our current products and development directions with the support for new technical and commercial standards that will serve to rationalize the industry moving forward, including DECE, MPEG-DASH and Open IPTV Forum.

• Our vision of the “new reality of multiplatform video distribution.” As multi-screen business models are being explored, the challenges of content licensing and rights becoming more apparent. Operators are faced with determining and managing a fast-growing set of rights. We’d love to share our current thoughts and experience on these issues.

•  The latest on our new watermarking solution, StreamMark.

We will also have several partner and customer stories to share, along with demonstrations that illustrate our multi-network, multi-screen security solutions – a space where we are unique in our ability to support the vision of the world’s most ambitious operators.

We are also delighted to announce that VCAS for Internet TV has been shortlisted for a CSI Award in the best content protection technology category.  A much appreciated nod, and a great way to kick off what we anticipate will be a very successful (and busy!) conference.

So if you’re in Amsterdam next month, drop by our stand, say hello and share your thoughts with us on the trends here and at @verimatrixinc that will define IBC 2011 and pave the way for the IBC 2012.

A very broad topic, indeed, but also a very timely and relevant one. With an increased number of tablets and smartphones driving consumer interest in video on the go, consumers are demanding access to preferred content across devices, anywhere and anytime. However, for service providers and content owners to be able to provide these services in a profitable manner, the content must first be secure. In addition, as new revenue models develop, the content protection must offer increased flexibility and the ability to follow complex rules.

We addressed these issues during the webinar and are pleased to note that there was a very productive and stimulating Q&A session at the conclusion of the presentation. Many excellent questions were asked, however, and time constraints did not permit us to answer every question. Therefore, we’ve taken a sampling of the unanswered questions, and provided our answers and guidance below.

Be sure to watch for the second installment of this series, where we’ll be answering more questions from the webinar participants.

How will operators profit from content delivery using adaptive rate streaming of various types of video content? What network operator capabilities, if any, could enhance the end user QoE for such services?

Modern pay-TV operators should embrace novel technologies, such as those utilizing adaptive rate streaming (ARS), which have been designed to effectively scale and solve many remaining IP video issues.  Operators will profit from ARS as long as they increase subscribers’ quality of experience (QoE) and leverage the associated subscriber data.

With ARS, subscribers can enjoy an uninterrupted experience with the highest quality possible, even as they roam from one network environment to another.

In addition to the optimum-quality viewing experience, ARS also scales effectively on global and local networks, makes highly effective use of today’s content distribution networks (CDNs), and ensures that true HD media experiences over the Internet can become a reality. All of this translates to a richer consumer experience, with more personalized choices with regard to content, time and place.

ARS can also provide valuable subscriber intelligence. At Verimatrix, we believe that the more you measure, the more you can impact QoE. While the concept of gathering subscriber usage data is not new, operators need to think about subscriber behavior and usage data more intelligently. This data can be leveraged to generate new revenue streams, increase subscriber loyalty, as well as enhance QoE and subscriber satisfaction.

Technologies like ARS can provide a veritable treasure trove of data that can be analyzed for extremely useful metrics like performance trends and traffic patterns.   These metrics provide a robust foundation for enhancing QoE and turning it into a real competitive advantage.

What are the trends, now and in the next year or two, in stationary viewing vs. mobile (iPhone, iPad, etc.) viewing of video content?

This is a great question.  Without a doubt, the content landscape is rapidly evolving as a result of the increasing role of over-the top (OTT) services. Static information feeds from the Web today are joined by an ever richer vein of mainstream programming delivered directly from its owners – often for free and with minimal advertising interruptions.

While in the past this meant watching low-quality video on a PC monitor, today OTT services can be watched on the big screen connected to game consoles, Internet-enabled TVs, dedicated streaming devices such as Roku, and a variety of mobile devices, including the iPhone and iPad.

Consider these recent statistics (from a recent Nielsen report on smartphone usage), which represent a possible threat to traditional pay TV:

• Penetration of smartphone devices in the U.S. jumped from 23 percent of the market in the last quarter of 2009 to 31 percent in Q4 2010, representing a 35 percent increase
• The number of video viewers rose by 41 percent to 24.7 million over that timeframe
• Users spent an average of 4.2 hours per month consuming video at the end of 2010

Over the next couple of years, I think we can anticipate that this trend will continue. If you are looking for real time statistics, I suggest checking out the BBC Internet Blog, which posts a monthly snapshot of BBC iPlayer performance.  It’s a great resource and very helpful in identifying key trends and issues.

Do you think that ISO/MPEG’s DASH standard will become the dominant adaptive streaming protocol. If not, why not?

Yes, we do think that once it its finalized MPEG DASH is poised for widespread adoption.  In our opinion, device makers will want to preferentially support a single video stream type. That will tend to help the adherence of standard video support in both PC-type browsers and embedded browsers (which have been much more of a challenge in many cases), and starts us down the road of direct HTML page support for connected TVs etc. We think that MPEG DASH will become the obvious choice for embedded devices.

We are closely watching and participating in the standards development that will help enable and secure multiplatform content. For the latest standards developments and insights, read my article in the May 2011 issue of ScreensPlays,”Initiatives Promise Efficiency Gains for Multiscreen Service Operations.”

What questions do you have on this topic?