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Winning the Piracy Wars:
Strategies for Protecting your OTT Content
December 2017
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Content is getting better, costing more to produce…
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OTT Streaming Vendors are also investing more…
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So are the top sports leagues…
Total revenues (TV + Others) – Source: howmuch.net http://www.marketwatch.com/story/the-nfl-made-13-billion-last-season-see-how-it-stacks-up-against-other-leagues-2016-07-01
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BATTLE for the Consumer’s Heart is RAGING ON…
Everyone along the value chain has to be obsessed with the end consumer
SEDUCTION is the game
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Broadband ubiquity is
driving opportunity…
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Even more so in a
5G mobile world…
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The pay-TV industry is experiencing a period of change and disruption
The pay-TV landscape today
82%of executives agree that
“competition in the pay-TV industry is set to increase
dramatically, as pay-TV companies, telcos and OTT
service providers compete for subscribers.”(1)
71%of executives agree that
“pay-TV service providers in
their country will struggle to
grow their businesses over the next five years”, up from
57% in 2016(1).
Question: (1) Thinking about developments affecting pay-TV industry revenues in your country through to 2022, how much do you agree or disagree with the following statements? (% of
respondents indicating “strongly agree” or “agree”; n = 125)
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Subscription OTT is Driving Paid Content Growth
Source: Ampere Analysis 2017
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Content owners are increasingly launching Direct-to-Consumer offerings
2007 2008 2009 2010 2011 2012 2013 2014 2015 2017
Number of services
2016
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Key challenges facing the
pay-TV industry
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Although there are many trends impacting the pay-TV industry,
executives highlight three major challenges
Key challenges facing the pay-TV industry
1. The proliferation of OTT services
2. Changing consumer behavior and demand
3. Content piracy, fuelled by illicit streaming devices
1
2
3
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3. Content piracy is seen as a significant, and growing, problem for the
industry, fuelled by rapid take up of illicit streaming devices
Key challenges facing the pay-TV industry
% of respondents saying “a challenge” or “major challenge” (2)
50%
of executives think
that content piracy
will lead to greater
pressures on the pay-
TV industry over the
next five years,
up from 41% in 2016 (1) Widely believed
to be the fastest
growing form of
piracy
3
Questions: (1) How much do you agree or disagree with the following statements? (% of respondents indicating “strongly agree” or “agree”; n = 125)
(2) In your opinion, how big a challenge are the following types of content piracy to pay-TV businesses in your country? n = 125)
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3. The global pay-TV industry could gain additional $7 billion if one in four
users of pirated pay-TV services switched to a legitimate option
Key challenges facing the pay-TV industry
Industry revenues lost to pay-TV piracy (estimated)
Global = $7 billion
3
Notes: The analysis includes the 42 major pay-TV markets (excl. China) covered in the programme and is based on survey findings and 2016 industry data provided by Nagra
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Content Sharing Threat
PAY PIRACY
Pirate business models
Selling hardware
or subscription
Premium Content Under Attack
FREE
PIRACYPirate business models
FREE PIRACY
Pirate business models
Advertising
or malware spread
PAY PIRACY
Pirate business models
Selling hardware
or subscriptions Premium
Content
is under
Attack !
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“There are a lot of people
who buy set-top boxes for
illegal streaming in retail
stores, who are simply not
aware that this is piracy.
It appears to be a
legitimate thing, for which,
in some cases, they even
pay a subscription fee.” (1)
IPTV Streaming Devices
Source: The Pay-TV Innovation Forum 2017 Report (p. 12)
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Content is under
serious threat
from piracy and
cyber-attacks
like never before
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Longevity of the entire creative value chain is at stake
Can your business model survive?
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Content Value Protection is
critical to the success of
your business
No one can afford
to fight this battle alone
72% see value in
anti-piracy
efforts(1)
Source: (1) The Pay-TV Innovation Forum 2017 Report (p. 13)
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TechnologyContent Marking and Protection
Security Operations Center
EnforcementWorldwide Reach
LegalBest Practices
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Digital Rights Management (DRM)
ScrambleAuthorized
User
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Content Sharing Protection Service
Takedown Program
Disrupt Pirate Service
Partnerships Litigation
Monitoring Platform
Find Infringing
Streams
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Watermarking
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Success is achieved with continuous communication
Abuse
notifications
Direct contact with ISPs
pre and post event
Legal threat letters from
external lawyersLitigation
Real time
escalations
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Production Aggregation Distribution
Watermarking
Anti-Piracy Services
CAS / DRM
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Successful Media
Business Models:
Compelling
Flexible
Secured
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