2014 INTERNATIONAL LAW
ENFORCEMENT IP CRIME
CONFERENCE
23-25 SEPTEMBER 2014
LEN HYNDS
CSO
MODERN TIMES GROUP
1
ADVERTISING AND THE PIRACY
ECOSYSTEM
KEY THEMES
The landscape
1. TV AND MEDIA – THE DIRECTION OF TRAVEL
2. PIRACY IMPACTING THE INDUSTRY
The threat
3. ADVERTISING
4. CYBER CRIMINALS USE OF THE COMMERCIAL
MODELS
The impact
2
STRATEGIC SHIFT IN
BROADCASTING
Growth
Traditional
broadcasting
Multi-media
entertainment
• Digital platforms
• Content
• Geo-expansion
3
STRATEGIC SHIFT IN
BROADCASTING
Pay TV
Subscription
Premium
Delivery models
Satellite and
Cable
Content offerings
IPTV
linear
Advertising
Hybrid
VOD
(SVOD and
AVOD)
Premium
live
streaming
Catch up
TV
4
CONTENT DELIVERY SATELLITE
Smart
card
•
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
5
CONTENT DELIVERY - IPTV
TV
Live TV
(Multicast)
Stored VOD
(Unicast)
Catch Up TV
Interactive
PC
Content protected by encryption
Decryption keys, security data
Tablet
Smartphone
Games
console
6
CONTENT DIVERSION
Multiple victims
Broadcast
channels
(collated)
Content infringement
Third party
operators
IP Owner
Studios and
Programme
producers
Third party
licensee
Diversion methodology
Card sharing
Streaming
7
ILLICIT CARD SHARING
Shared
channel
Shared
channel
Shared
channel
Smart
card
8
ILLICIT STREAMING
Channels
STBs
Encoding Server
Streaming
and ‘Pay’
Server
End User
Smart
card
Smart
card
Smart
card
 One device per channel stream
 One download server with pay service
 One server for upload
 Each element in a different country
9
CONTENT DIVERSION – AND
THE CRIMINAL MOTIVATION
REWARD
Illicit revenue
• Subscription
• Advertising
• Blended with other
crime
• Spin off – id theft and
fraud
RISK
Low detection
• Anonymity possible
• Fragmented recourse
• Jurisdictional challenges
• Perception and awareness
10
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
11
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 crossboundary nature of
organised crime
12
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
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
ADVERTISING AND THE PIRACY
ECOSYSTEM
Ad-supported VOD and other
media services impacts by:
 Offering low risk pay-perclick revenue generation for
organised crime
 Enhances money laundering
opportunities
 Can lend an air of propriety
to criminal sites
 Damage brand for unwitting
advertisers
15
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
16
THANK YOU
LEN HYNDS
CSO
MODERN TIMES GROUP
len.hynds@mtg.se
17