The strong movement towards “content anywhere anytime” and “prime time on my time” puts an increasing pressure on operators to keep customers happy. Pay-TV operators recognize that they must offer advanced services such as HD and video-on-demand. However, network bandwidth limitations often present a challenge. Moreover, the lack of a return channel in broadcast networks means that interactive applications are limited. One solution combines DVB and IP delivery technologies through a hybrid network approach that takes advantage of the strengths of each: an RF-based broadcast network for one-to-many linear content delivery, combined with an IP network for interactive one-to-one services such as video-on-demand (VOD) and shopping. With a hybrid approach, the opportunity exists to offer new of subscriber benefits in a seamless experience while the service operator improves both competitive position and revenue potential. Operators can take different paths in the transition to a higher-value subscriber base, depending on their current infrastructure and business objectives. For example, DVB broadcasters may add IP-based video-on-demand services, while IPTV operators can benefit by adding DVB satellite or terrestrial channel bundles. Content security technology has followed the evolution of pay-TV networks. While analog systems never had strong content security, the introduction of digital video broadcasting in the mid ‘90s had a profound impact. This led to the development of so-called conditional access systems, which in design have remained quite constant since then. Since broadcast networks were all one-way, a strong security element was required in the set-top box. The technology chosen was based on smart cards. With the introduction of IP-based video in two-way broadband networks, a radical change took place. Instead of smart card based security, companies like Verimatrix developed a new architecture based on two-way communication and software-based security. By using technology proven in e-commerce applications, it was possible to improve the security for IPTV to such a degree that smart cards were no longer required. Since a hybrid network is in principle a two-way IP network with a broadcast overlay, IPTV content security can be directly applied. This offers an opportunity to transition from legacy CA systems, based on smart cards, to a single software-based system that supports both broadcast and IP

1. Content Security in Hybrid Networks NexTV LatAm 2009 Buenos Aires Nov 18, 2009 Bo G. Ferm Dir. Product Marketing

2. Verimatrix Snapshot Founded 2000 Scope Content and Revenue Security for multi-network, 3-screen applications: IPTV, Broadcasting, Mobile & Over-the-Top to STBs, PCs & mobile devices Headquarters San Diego, California, with satellite offices in Atlanta, Boston, Beijing, Singapore, Amsterdam, Paris, Nice, Moscow, Medellin Employees 70+ Customers 250+ operator customers in 37 countries, including 18 Tier 1’s and 2’s – protecting more than 10 million screens for IPTV and DVB Hybrid Partners Over 100 ecosystem channel & integration partners including Ericsson, IBM, Motorola, Nokia Siemens Networks, Thomson and ZTE Investors Goldman Sachs, Mission Ventures, Crescendo Ventures, Cipio Partners, SunAmerica Ventures & JK&B Capital

4. Mobile Broadcasting + Telecom Telecom Network 3G/4G / WiMax / WiFi Unicasting/Multicasting Interactivity File Downloads Modem; IP Stack ESG & GUI; Decryption Mobile Broadcast Network ISDB-T/DVB-H/FLO/DMB RF Tuner & Transport Broadcast Content On-demand Content Other Services Memory Card with Pre-encrypted Video Content Another Hybrid Services Opportunity Hybrid Handset

6. Implementing Content Security in Hybrid Networks

8. VCAS for DVB – Hybrid Networks DVB-x Receiver Verimatrix MultiCAS/DVB Verimatrix Content Securty Mgr DVB Simulcrypt Mux/Scrambler & DVB-x Modulator VCAS-secured Broadcast Network VCAS-secured Broadband Network incl. Authentication & Entitlements Key Store ECM CW & AC IP return path VCAS Key Mgmt & Entitlements SMS/Billing and Middleware IP Stack ViewRight STB Hybrid w/VideoMark Watermark Middleware GUI Hybrid STB VOD Server Verimatrix Video Pre-Processor On-demand Content Broadcast Content Software-based Hybrid Solution

9. 3-Screen VCAS Support for Broadcast, Broadband and Mobile Networks Mobile Broadcast Network DVB Broadcast Network Broadcast Content On-demand Content Head-end Processing. Encryption by Broadband Network/ Internet DOCSIS Cable Modem DVB-IP Hybrid STB Memory Cards 3G/4G/WiMax/WiFi Telecom Network IP STB

11. Thank You! Download our white papers at www.verimatrix.com :  Securing DVB Hybrid Networks for Higher Value Pay-TV Services  The Advantages of Software-Based Content Security in a Multi- Device, Multi-Service Pay-TV World  The Service Provider's Guide to 3-Dimensional Content Security  Adaptive Rate Streaming – Pay-TV at an Inflection point Bo Ferm [email_address] Tel: +1-858-677-7800

12. Additional Material Scrambling Algorithms Cable IPTV

14. ViewRight STB – Hybrid Support Verimatrix ViewRight STB Software Client (no smart card) Middleware Optional Verimatrix VideoMark DVB Transport & HW DVB-CSA Descrambler MPEG Decoder Graphics Engine OS and TCP/IP support IP Network DVB Stream Hybrid Network Option Video User I/O ECMs CW/Key Unifying Broadcast and Broadband Services AES S/W Descrambler (optional) DVR