Tag Archive for 'Microsoft'

Widevine’s new satellite investor points to the future for conditional access

Widevine, a Seattle-based content security firm that offers software-based conditional access (CA) systems and DRM technology to the IP-delivered video market, has received $15m in investments from cable provider Liberty Global, Samsung’s VC arm (Samsung Ventures), and an unidentified corporation it describes as “the world’s second-largest satellite provider”.

Widevine is one of the global leaders in the software-based CA segment, alongside companies like Microsoft, Verimatrix, and Latens. The new funding is the third financial injection it has received since 2003. According to Tech Flash, an online tech portal based in Widevine’s home town, Seattle,  this brings total investments since then to more than $50m.

Since Samsung Ventures and Liberty Global are existing investors, the real news is that a major satellite company now sees a future for Widevine’s products.

Satellite networks are intrinsically one-way;  in Farncombe’s view  hardware-based CA systems using smartcards offer the most effective protection against piracy for one-way networks, rather than ones that depend solely on software.

However, satellite providers are increasingly equipping their customers’ receivers with broadband links which - if properly leveraged - can potentially offer better security using software-based systems such as Widevine’s.

This trend is common to other broadcast platforms, including terrestrial ones. It represents a major reason why Farncombe concluded in a recent White Paper that, “Since the traditional pay-TV world is slowly but surely mutating into a two-way one, it is likely that there will be a gradual shift away from smartcard-based systems in favour of cardless ones.”

This poses a challenge for the major global hardware-based CA vendors, such as NDS and Nagra, whose business has traditionally been based on the provision of smartcards to operators.

iPlayer and Xbox: game over?

According to the UK’s Daily Telegraph, the BBC and Microsoft have “indefinitely” postponed their plans to launch the iPlayer on the Xbox Live platform. The newspaper alleges that the cause was a disagreement over Microsoft’s strategy to enable access to the iPlayer only to its premium subscribers, which would be incompatible with the BBC’s public remit.

The BBC iPlayer is available on more than 20 devices, including games consoles such as the PS3 and the Nintendo Wii, as well as PC and mobile phones. It is also available to Virgin Media’s subscribers.

BBC’s strategy to make the iPlayer available through as many platforms as possible is controversial, with pay-TV providers such as BSkyB complaining of unfair competition from the public service broadcaster. The service is, however, popular with consumers, receiving an average of 75 million requests a month. It has received more than 900 thousand requests through the Nintendo Wii since April 2008 and 100 million views in its first year of partnership with Virgin Media.  

Despite the postponement of iPlayer on the Xbox, multi-platform free catch-up TV has taken hold in the UK and will continue to challenge traditional pay-TV operator business models. High-audience genres such as live sports are not commonly available for free ‘over-the-top’, but the increasing availability of free, popular catch-up content makes basic pay-TV offers less attractive. While the penetration of game consoles is limited, hybrid free-to-air and OTT set-top-boxes will pose an even greater threat to pay-TV operators.  

Sky Player extends to Fetch TV and Windows 7, but restricts premium content rights

With Sky Player in the news over its deal with FetchTV, as well as with the Windows 7 Media Center, I thought I’d take another look at the platform. I had installed it on my PC when the product was originally launched, but was rather worried at the instability it seemed to introduce, and subsequently removed it.

I was particularly interested in how my rights to view Sky content via DTH would be replicated online. For background, I am a Sky HD subscriber, with my old Sky+ PVR consigned to the bedroom as part of Sky’s Multiroom deal. In other words, the entirety of my Sky package can be viewed and recorded on either my living-room or my bedroom TV (barring HD programmes, of course), with the same content potentially viewable simultaneously on both.

Just as with the BBC’s iPlayer, you don’t need to download software to watch programming - you can watch it through your browser. However, the download experience, which uses secure peer-to-peer software from Kontiki, should offer better quality playback, depending on the quality of your broadband connection.

Anyway, this is how it works. When you first install the software, Sky registers that PC by default as your main one. You are in fact allowed to install the software on up to four different devices (although Sky is somewhat ambiguous on this point: both in the licence and at one place in the Sky Player website, it says you can only install the software on one device, which is clearly wrong).

‘Device’ includes ‘X Box Player’, but let’s assume here we are talking about PCs. Defining one PC as your main one means that PC has more rights than the others: for instance, you can only watch Sky Movies and Sky One programmes on that computer. Moreover, you can only change the range of registered devices (and that includes changing which one is designated as the main one) once every 30 days.

This is the first major way in which rights are more restricted in an online environment than the satellite TV one, since Sky Multiroom in principle allows you to watch exactly the same content on one STB as another - viz. that content you’ve paid your subscription you to watch.

The second way in which rights are more restricted is that Sky Player does not allow you to view the same content simultaneously on two devices - even if we’re talking about non-Sky Movies and non-Sky One programming. Multiroom doesn’t stop this happening.

The third way is that it restricts the storage time of the programme. For instance, I can, say, keep a copy of Stargate Universe on my two Sky+ PVRs (HD and SD) for as long as I wish to. On Sky Player, it’s currently restricted to six days.

These features underline a general trend in digital media: once you move out of a traditional broadcast or physical media environment, you’re usually allowed to do less with the content you’ve paid for than you were before.

This is particularly relevant in the Sky Player example, since the platform also allows non-Sky subscribers to sign up and pay to watch Sky programming - without a satellite subscription, for roughly similar costs. Presumably, this is the model about to be extended to Windows 7 Media Center and Fetch TV boxes.

So although users have the extra benefits of being able to watch catch-up and on-demand TV, in terms of what you can do with the content, it’s an inferior experience. Such restrictions could be viewed, perhaps, as a way of encouraging consumers to trial the service online before upgrading to satellite. It’s also worth pointing out you can’t get HD quality online.

What’s really interesting about Sky Player, though, is that all these sophisticated controls are being applied to premium content using software-based security protection, without the need for a smartcard. Those with long memories will recall that Sky’s online service had to be temporarily suspended back in 2006 after the Microsoft DRM system it uses was compromised - something which has never happened to the smartcard-based NDS VideoGuard system used on Sky’s satellite platform.

But in a way, the fact that the online service bounced back so quickly proves the point: a two-way always-on environment in which content security software can be dynamically upgraded (or even completely replaced) over broadband in the event of a breach doesn’t require a hardware-based conditional access solution.

Indeed, as Farncombe - the company which hosts this blog - argued in a recent White Paper, hybridisation of broadcast platforms and the Internet suggests the traditional pay-TV industry will gradually move towards software-based solutions for this reason. These can offer a higher level of security than hardware-based ones if properly configured.

More on this topic on Monday, when Farncombe will release a second White Paper on Conditional Access.

IBC Report - Microsoft considers Canvas as possible Mediaroom feature

Microsoft is considering supporting the UK Canvas specification - backed by a BBC, ITV and BT joint venture - as a possible feature of its Mediaroom IPTV suite, but only if it is genuinely open.

The suggestion came from Ted Malone, senior director of product management for TV, video, music and platform business at Microsoft, when Connected TV met up with him at IBC.

“If it proceeds as an open approach,” said Malone, “we could add support as a feature of Mediaroom.” Malone said that Microsoft would be paying close attention to the Canvas specification, when it finally emerges, to see if it included any proprietary standards. If so, Microsoft would not consider it to be “an open format.”

Malone declined to comment on what role BT Vision might play within the Canvas venture (a source of considerable speculation at IBC) , but, since this incorporates Mediaroom technology, albeit in a limited implementation, it does suggest one way in which the hybrid concept could be extended to accommodate Canvas. That, of course, will depend on what technology elements the Canvas venture eventually decides to incorporate in its specification, and whether it gets regulatory approval.

Malone pointed out that Microsoft was itself in the process of refashioning Mediaroom to make it a more open platform: for instance, he said, the current Windows Media Player DRM used in its IPTV suite was viewed as having reached the end of its working-life. It would now be replaced by PlayReady, a next-generation DRM product which is already part of the Silverlight platform.

This would make it easier for a Mediaroom set-top box to stream protected video content to other devices in the home. “We’re looking to migrate all of our proprietary DRM [to PlayReady],” Malone said.

The move reflects increasing convergence between the Mediaroom product - intended for managed IPTV platforms - and Microsoft’s ‘over-the-top’ technologies. For instance, Mediaroom will be extended to support Silverlight itself as well as the PlayReady DRM it incorporates. It will also adopt Microsoft’s Smooth Streaming technology. This adapts the quality of the video stream in real time, based upon the consumer’s changing bandwidth and the performance of his or her device, to minimise buffering time and offer faster startup times.

“Mediaroom will embrace these and extend the reach of the Mediaroom service,” said Malone.

Connected TV views this as a natural progression: as the performance and reliability of consumers’ broadband links increases and offers a video experience more akin to that of a managed IPTV network, the need for Microsoft to support two entirely distinct product lines is disappearing.

Microsoft and Tesco partner for UK launch of downloadable ‘virtual DVDs’

We kick off our IBC blogging today with a story about a tie-up between UK supermarket giant Tesco and Microsoft in the UK, who announced this morning that they jointly plan to offer a service this autumn which would allow DVD and Blu-ray quality ‘virtual DVD’ copies of movies to be downloaded for replay on PCs and Macs.The new service, built on Microsoft Silverlight technology, will include interactive features and other add-ons which the partners claim will offer a viewing experience that “goes beyond other digital playback products in the marketplace.”

The basic idea itself is not entirely new, in that it only applies to Tesco customers purchasing certain home video titles from their stores. So in addition to watching them through their DVD players on the TV screen, they will also be able to download a digital copy to a PC elsewhere in the home.

What is new, arguably, is making the DVD ‘bonus’ features available in this way on downloadable content, closing the gap between what is available on a physical disk and a virtual copy. The other significant aspect of the deal is simply that it involves Tesco - one of the UK’s home video sell-through giants. They have enough market power to firmly embed such a service in the UK market, providing it appeals to their customers.

One might also suggest that - if what is being offered is really ‘Blu-ray’ quality in some cases (which will involve quite a lengthy download!) - the (unidentified) Hollywood majors backing the venture appear pretty confident about using a software-based DRM system such as Microsoft’s to protect digital versions of HD premium movie content.

Microsoft hopes to extend this Silverlight-based concept to other markets in due course.

At IBC, Connected TV will be meeting Gabriele Di Piazza, senior director for the Media & Entertainment business in the Communications Sector at Microsoft, to quiz him about the new service and other recent developments.

We plan to post live from the show.