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1 1 2014 INTERNATIONAL LAW ENFORCEMENT IP CRIME CONFERENCE 23-25 SEPTEMBER 2014 LEN HYNDS CSO MODERN TIMES GROUP.

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Presentation on theme: "1 1 2014 INTERNATIONAL LAW ENFORCEMENT IP CRIME CONFERENCE 23-25 SEPTEMBER 2014 LEN HYNDS CSO MODERN TIMES GROUP."— Presentation transcript:

1 INTERNATIONAL LAW ENFORCEMENT IP CRIME CONFERENCE SEPTEMBER 2014 LEN HYNDS CSO MODERN TIMES GROUP

2 2 ADVERTISING AND THE PIRACY ECOSYSTEM KEY THEMES 1.TV AND MEDIA – THE DIRECTION OF TRAVEL 2.PIRACY IMPACTING THE INDUSTRY 3.ADVERTISING 4.CYBER CRIMINALS USE OF THE COMMERCIAL MODELS The landscape The threat The impact

3 3 STRATEGIC SHIFT IN BROADCASTING Traditional broadcasting Multi-media entertainment Growth Digital platforms Content Geo-expansion

4 4 STRATEGIC SHIFT IN BROADCASTING Pay TV SubscriptionPremiumAdvertising Delivery models Satellite and Cable IPTVHybrid Content offerings linear VOD (SVOD and AVOD) Premium live streaming Catch up TV

5 5 CONTENT DELIVERY - SATELLITE Video – Audio Sports, Soccer, Film Content protected by encryption Decryption keys, security data Dedicated Pay TV receiver (STB) Smartcard (specific for Pay TV Broadcaster + additional security data (decryption keys) in broadcast signal Users authorised by their subscription are provided with their individual smartcard Smart card

6 Decryption keys, security data 6 CONTENT DELIVERY - IPTV Content protected by encryption Live TV (Multicast) Stored VOD (Unicast) Catch Up TV Interactive Live TV (Multicast) Stored VOD (Unicast) Catch Up TV Interactive TV PC Tablet Smartphone Games console TV PC Tablet Smartphone Games console

7 7 CONTENT DIVERSION Multiple victims Broadcast channels (collated) Third party operators Studios and Programme producers Content infringement IP Owner Third party licensee Diversion methodology Card sharingStreaming

8 Content protected by encryption Decryption keys, security data Content protected by encryption Decryption keys, security data 8 ILLICIT CARD SHARING Video – Audio Sports, Soccer, Film Decryption keys, security data Sh ared channel Smart card

9 9 ILLICIT STREAMING Channels STBsEncoding Server Streaming and ‘Pay’ Server Smart card End User  One device per channel stream  One server for upload  One download server with pay service  Each element in a different country

10 10 CONTENT DIVERSION – AND THE CRIMINAL MOTIVATION Illicit revenue Subscription Advertising Blended with other crime Spin off – id theft and fraud Low detection Anonymity possible Fragmented recourse Jurisdictional challenges Perception and awareness REWARD RISK

11 11 ADVERTISING AND THE PIRACY ECOSYSTEM Three distinct ways in which advertising is used by pirates:  As part of professional marketing campaign  Revenue generation as part of ad-supported media service  As a pre-cursor to fraud or identity theft

12 12 ADVERTISING AND THE PIRACY ECOSYSTEM Advertising of card sharing and streaming impacts by:  Normalises piracy  Increasing the market size for the criminals  Increasing profit to organised crime  Supporting the cross- boundary nature of organised crime

13 13 ADVERTISING AND THE PIRACY ECOSYSTEM Organised Technically savvy Protective security Exploiting jurisdictional issues Commercial Subscription based Flexible payment options Professional Marketing in Open and DarkNet Anonymised payment Syndicated business model Multiple illicit activities

14 14 ADVERTISING AND THE PIRACY ECOSYSTEM Organised Technically savvy Protective security Exploiting jurisdictional issues Commercial Subscription based Flexible payment options Professional Marketing in Open and DarkNet Anonymised payment Syndicated business model Multiple illicit activities

15 15 ADVERTISING AND THE PIRACY ECOSYSTEM Ad-supported VOD and other media services impacts by:  Offering low risk pay-per- click revenue generation for organised crime  Enhances money laundering opportunities  Can lend an air of propriety to criminal sites  Damage brand for unwitting advertisers

16 16 ADVERTISING AND THE PIRACY ECOSYSTEM The future of advertising - How will the pirates integrate the opportunities and challenges:  Real-time bidding and Ad placement  Segmented channels and offerings  Audience profiling  Interactive IPTV

17 17 THANK YOU LEN HYNDS CSO MODERN TIMES GROUP


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