Live Streaming Piracy

[Pages:20]LiveStreamingPiracy:

AreWeWinningThisEpicBattle?

AboutCleeng

CleengprovidesAuthentication,CommerceandSecuritysolutionsforpremium videos.Itisaflexible andcost-efficientplatform usedbyleadingbrandslikeHBO,Sky,NHRAandFinalFantasy.WithCleeng's comprehensivesolutions&APIs,broadcasterscaneasilyauthenticateusersacrossdevices,sell contentusingavarietyofbusinessmodels-LivePPV,SVOD,orleadcapture-keeptheirpremium videossafe,anddeliverexceptional,multilingualserviceinoneormultiplecountriesquickly.

Cleengsolvesthisbydeliveringturnkeyandexceptionalsolutionsquickly,deeplyintegratedwiththe leadingOVPsincludingBrightcove,IBM CloudVideo,VerizonDMSetc.Thecompanywasfoundedin 2011byformerApple,PhilipsandNECe-commerceandmediaexperts.

Tableofcontent:

Thethreatiseverywhere How concernedistheindustry? Quantifying the loss

Livepremium sportsatmostrisk Factorsthatcompoundpiracy Regionaldifferences

Whatcanbedone? Amixoftechnologyandeducationtools ProvidinggreatuserexperienceandahighQualityofService(QoS) Breakingthechainsofgeo-blockedcontent BlockingVPNusage Preventionofrippingoriginalcontent Identificationofillegalstreams Preventingscreen-grabbingviasocialmedia Preventingaccountsharing Education Education:Makingthecaseforlegalviewing OTTgiantsuptheirefforts How totackleaccountsharing

Conclusion

4 5 5 7 8 11 12 12 13 13 13 14 14 15 16 16 17 18 19 20

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Introduction Piracyisaperennialproblemforthemediaandentertainment industrybuttherehasbeenarecentsurgeindemandwhich threatenstowrecktheglobalmarket.

Someestimatesputtheproblem onthesamefinancialscaleasthatoftheillegaldrugtrade. Theproblem isamplifiedbecausetheproliferationofnetworksanddevicesmakescontentdistributors vulnerabletomyriadthreats.Althoughprotectioncontinuestobecomemoresophisticated,sotoo doesthe technicalability and businessproficiency ofpirates.The sheervolume ofstreaming approachesmakesitdifficulttocloseallpotentialpointsofattack. Thereisnosinglesolutionthatwill100%secureanynetwork,system orasset.Instead,allcompanies, from studiosandbroadcasterstotheirsuppliers,areadvisedtoconsiderthewholethreatlandscape, implementlayersofsecurity?andtobemorehonestabouttheirweakpointsindealingwitheach other.

ThiseBookwilloutlinethethreatanditsscale;explainwhypremium livesportsacrosstheboardare atmostriskandillustratehowtheprevalenceofpiracyvariesregionallyacrosstheworld.Wediscuss theacuteproblem intacklingtheissueamongthemillennialagegroupandconcludethattechnical securitymechanismsaloneareinsufficienttocombattheproblem.

The industryneedstoacknowledgethatpiratesareincompetitionwithcontentownersandpay-TV operators.Theease,simplicityandlow-costnatureofpirateOTTdevicesandservicesisfuelingawave ofpiracybiggerthanwe'veeverseenbefore.

Asaresult,securitystrategieswithinthepayTVindustrymustconsiderabroadrangeofvulnerabilities whichalsoincluderefininglegitimateservicestorenderthem moreattractivetoconsumersthanillegal rivals.

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Thethreatiseverywhere

Piracytakesmanyforms,from keysharingofbroadcastservicestocontentsharingofliveevents andpremium VODtitlesoverthenetandtheftofcustomerandbusinessdata.

ThesamedigitalandconnectedTVplatformsthatcriminalstargetforillegalredistributionofcontent alsoactasattacksurfacesforhackerslookingtogainaccesstoserviceproviders'networksand potentiallystealcustomerinformationandotherimportantdata.

Cyberhacksofcontentforstreamingonpiratesites(sometimeswithsubscription)oroverlegitimate onlinevideoplatformslikeYouTubeorFacebookandappslikePeriscopeandTwitcharethesingle biggestsourceofcontentredistribution.Oncethevideoisdisplayedonlegitimateservices,itisstill vulnerable to re-streaming through numerous methods, including camcorder capture and screen-scrapinginwhichdataiscopiedinrealtimeandre-broadcastasalivestream.

ContenttheftisalsorifeathouseholdlevelwherelegitimateusersactivelyshareInternetKeysand ControlWordswithfamilymembersaswellasfriends.Thisaccountsharingactivityisconsidered highestamongyoungerhouseholdswhere22%of18?24yearoldswhoenjoyOTTservicesusea subscriptionwhichispaidbysomeoneoutsideoftheirhome,inaParksAssociatesreport.Other surveyspegthefigureevenhigher,atclosertohalfofallsubscriberssharingtheiraccountpassword withsomeoneoutsidetheirhome.

TherehasalsobeenanepidemicofillegaldistributionbyusersofKodisettopboxes.WhileKodiitself isaneutralplatform,itsopen-sourcenaturemeansadd-onscanbedevelopedbythirdpartiesthat makepaidcontentillegallyaccessible.

Traditionalaccesscontrolworksuptothepointwherethecustomerstartswatchingthecontent.Most pirateswillpayforasubscriptionorwillbuythepayperview.Illegaluploaderscanturnaprofitable businessbysellingadsaroundthesiteorinsomecasessellingasubscriptionservice.

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HOW CONCERNEDISTHEINDUSTRY?

Operatorsareincreasinglychallengingcontentownerstotakemoreactiontoprotectthecontent theyarelicensingtothem.Useofmultipletoolstohelpidentifythesourceofaleakareavailable tothecontentownerstoensurecontentremainsprotected.

Productionpartnersanddistributorsmustalsotakesecurityseriously,ifonlybecauseofthehigh penaltiestheyfaceifpaidcontentendsupontheInternetfreeofchargeasaresultoftheirsecurity gaps.

OrganizationsliketheDPPintheUKarehelpingraiseawarenessandbelievesecurityisnow topof mediaorganizationagendasacrossthesupplychain.

Goingbackafewyearsandsecuritywasconsideredanimportantbutlastinthechainadditiontothe contentlifecycle.Thatapproachissufficientnolonger.

QUANTIFYINGTHELOSS

Giventhatmostconsumerstodayhaveenoughbroadbandbandwidthintheirhometostream high-qualityupstream (whichwasn'tthecaseadecadeago),livestreamingpiracyismoreofan issue than ever. PayTVisjustonepartoftheecosystem impacted:everyonewithaninterestinthecontentwillsuffer (broadcaster,productionhouse,rightsowner,OTTstreamingservice)butquantifyingtheimpactis verychallenging.Understandably,companiesarereluctanttodivulgeincidentsofdatalossoradmit theextentofonlineredistribution.

Thereareestimatesthatcontenttheftinall formsrunsinto billionsofdollarsin lost revenueforthemediaindustryperyear. Takingjustonerecenthigh-profileexample,the FloydMayweatherfightagainstConorMcGregor lastAugustisestimatedtohavebeenviewedby nearly three million people via 239 illegal streams,according to digitalplatform security companyIrdeto.

Oneillegalstream alonereached986,000users?translatingtoalmost$100millionlostrevenuefor broadcasterShowtime.

Let'sassumethathalfoftheviewersreportedonsocialmediasites--50million--watchedthefullfight. Itmeansthatthose50millioncouldhavebeenpayers.Takingaconservativeapproach,outofthose, 2.5millionviewerswerewillingtopay-per-view,translatingintoarevenuelossof$250million(ata pricepointof$99.99).

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Piracy isa huge problem forthe subscription video on demand business.Pirate torrentsremain highly popular,with Pirate Bay having 234.5 million visits in February 2017 alone.

DIDYOUKNOW THAT

According to the piracy tracking firm Tecxipio,illegalviews of MayweathervsMcGregordidnotendwiththebroadcast.Thefightwas illegallydownloaded bysome445,000internetusersimmediately after it had ended.After-fightrevenue opportunities are far from meaninglesstobroadcasters.

AccordingtotheOnlineTVPiracyForecastsreport,revenueslosttoonlinepiracywillnearlydouble between2016and2022to$51.6billion. Speakingaboutsubscriptionservices,accountsharingseemstobehurtingrevenuesmost.Asingle endusersharingaNetflixpasswordmaycoststhecompany$10permonth?whereasasingle

Source:DigitalTVResearch(covering138countriesandcountingrevenueslosttoTVepisodesandmovies?butnotlivesportsorpayTV)

downloadandillegalpostingofpre-releasedcontentcouldcostastudiomillionsinlostrevenue.The latestestimatessaythatNetflixislosingaround$391millioninrevenuebecauseofsubscribersthat sharetheirpasswordsintheUS.

WiththeadventoftheEuropeanUnion'sGeneralDataProtectionRegulationin2018those costscouldbedrivenevenhigher,becausesanctionscanincludeafineofuptoEUR10 EYEONTHE

millionor2%ofacompany'sannualworldwideturnoveroftheprecedingfinancialyear, FUTURE

whicheverisgreater-farexceedingthecurrentmaximum of$658k.

Asaform ofcybercrimehowever,onlinecontentredistributionpiracyisthemajorthreattohighvalue content.Whileanunauthorizedscript,tweetorleakofanepisodeofapopularshow likeGameof Thronesmakesheadlines,theindustryisbysomeaccountshemorrhagingmorerevenuefrom illegal redistributionofpremium livestreams.

Illegalstreamingsiteswerevisited77.7billiontimesin2016.Theproblem isendemicandrising. Mediacompaniesaretargetsforcybercriminalsanditisnotamatterofifbutwhenyourcontentand businesswillbeattacked.

Itisalsoworseconsideringthefrustrationoftheenduserintryingtofindthecontenttheywant.In partcausedbythecontinuingfragmentationofpremium rightsontovariouspayTVoperatorowned linearandonlineservices,SVODplatformsandoversocialmedia,searchingforwantedcontentcan takeprecioustime.Thecostofsearchandtheeaseofdiscoveryisconsideredamajorfactorwhy usersoptforaggregatedpremium services.

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Livepremium sportsatmostrisk

Theissueisparticularlyacutearoundthehighvaluepropertiesoflivesports,moreandmoreof whicharepouringontoOTTplatforms.Sportsrightsfeesareastronomical.Asanindication,theEPL collectedE5.7billionfrom SkyandBTSportandanotherE3.4bnforthesaleofoverseasrightsinits mostrecentdeal.

Yetacheckonaggregatorwebsites?whichlistURLsthatlinktothecontentbeinghosted?suggest thattheaudienceofunauthorisedstreamsisinthemillions.Giventheeasewithwhichcontentcanbe re-streamedonlineandwatchedforfree,rightsholdersneedtoprotectrevenueandensurethatthis marketremainsviableforinvestment.

DuringtheMayweather-PacquiaofightofMay2015,therewereapproximately60illegalstreamson Periscopealoneandonlyhalfwereremovedonrequest.

TOPTENPIRATEDLIVESPORTSFROM AUGUST2016

Baseball

Football

MixedSporting events

Tennis

Motorsports

25,2%

Source:Irdeto

23,4%

13%

10,5%

8,9%

Justtoillustratethemagnitudeofthepiracysituation,it'sworthmentioningthatevenlivesportshave beenaffected,withbaseball,football,mixedsportingevents,andtennisthebiggestcontenttheft victims.

Contactusat:

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Insomecountries(Israeliscited inTheGuardian newspaper)"no-onebotherspayingfordedicated sports packages when the alternatives are so free andeasy,"justashugeamountsofpeopleillegally download filmsand TV seriesratherthan spend moneyonDVDs.

DIDYOUKNOW?

AnatomyMediafound69% ofmillennialsuse atleastoneform ofvideopiracy.

Suchactivityismostlikelyamongtheyoungergeneration.ResearchbySportIndustryGroup(SIG)finds thatpiracyhasbecomenormalisedamongthisgenerationwhiletake-upfortraditionalpay-TVservices isfarlessthanamongolderviewers.

Accountsharingmaybehighestamongyoungerhouseholdsbutisnotconfinedtothisagegroup. AccordingtoIBM companyClearleap,around64%ofcurrentstreamingserviceusersbetweenthe ageof30?44and68.5%ofusersages45?59havealsosharedtheirloginwithsomeoneelse.

FACTORSTHATCOMPOUNDPIRACY

Itmaynotbewhatyouwanttohearbutpirateswillthrivealmostindirectcorrelationtothegapsin serviceofferedbycontentproviders.Clampingdownonsecuritythereforealsorequiresastrategic examinationofthewholeuserexperiencesothatuserswon'twanttogoelsewhere.

Whilecontenttheftisoverwhelminglyfocused onredistribution,consumptionhabitsofpirated contentareevolving.Globally,26.9% of18-to24-year-oldsprefertowatchpiratedcontenton mobile devices;compared to just13% ofover55s.In the MENA,Irdeto found thatlaptops, smartphonesandtabletsremainthefavoritedeviceforconsumingpiratedvideocontent,forovera thirdofpeople.

Costofservicesisanotherprimarydriverforuserstovisitpiratesites.

Withthepricesofsportsrightsatanalltimehigh,subscriptionpricesaresoaring,whichmeansthere's moreofamarketforstreamingpiracyever. Thereason?ThiscouldwellbedowntosteeperPPVfeesintheregion.

DIDYOUKNOW? Around42% oftheillegalviewsoftheMayweather-McGregorfightwereintheU.S,eventhoughthecountry accountsforonly8%oftheworld'sinternetpopulation.

LearnmoreaboutourexperiencewithmanagingoneofthebiggestPPVfightsinhistory.

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