In this blog, we will delve into a difficult subject to focus on - the obvious consolidation that we are witnessing in the streaming media space. In our numerous conversations with concerned customers, we understand the challenges that some content security companies are facing as they confront a migration from Conditional Access (CAS) technologies to consumer Digital Rights Management (DRM).
The legacy of these companies heralds from a timeframe when broadcast media was tied to a satellite dish, a set-top box or an IPTV device, before the streaming media renaissance, where consumer DRM is a major driver of innovation. Why do we call it consumer DRM? Because users consume content on the devices and platforms of their preference, where DRM is silently wrapped around the content, providing security with the content wherever it travels.
The days of users being tied to satellite, IPTV or a cable provider are long gone. Users today can consume premium content on their phone, tablet, Smart TV, or the many different streaming sticks or pucks that are readily available in markets across the globe.
The one technology that ties all these things together is so far removed from Conditional Access that it has brought us to a point where these former industry giants, the CAS providers, haven't been able to square the circle of DRM, at least not profitably.
The Great DRM Displacement
DRM has become so pervasive that nearly every appliance or device on which users consume content is shipped with native libraries that support DRM. For Android devices, this is a Google Widevine library. For MacOS, iOS and TVOS this is an Apple FairPlay library. For older Smart TVs, this is a Microsoft PlayReady library
CAS companies, once the bulwarks of the broadcast industry before consumer DRM became ubiquitous, aren't exactly worthless but they are becoming more so by the day. And the market is noticing.
As a result, many of these former titans of content security are faced with the task of transforming their intellectual property, pivoting them into a world where their competitors are, by comparison, smaller, more agile and highly innovative. The age-old tortoise and hare scenario applies here.
This shift presents an opportunity for DRM centric providers like BuyDRM to further their position as thought leaders in the evolving content security landscape, particularly with major broadcasters, which drove the topic, we bring your attention to today.
Where Are Your Keys?
We provide service for and are in talks with many of the world's largest broadcasters in the world. Time and time again, the feedback is very similar. On the one hand, they aren't happy with the DRM Services provided by their CAS vendors, and on the other, there is a serious concern about whether their CAS provider will be able to make it through the transition without going belly up.
It's understandable why the major broadcasters aren't happy with the way these companies approach DRM—it's because the multimillion-dollar CAS or watermarking contracts that these companies made their name on are turning into six-figure or less DRM contracts instead. For CAS companies, the juice isn't worth the squeeze.
The Market Has Spoken
As for the economic stability of CAS companies, have a look around. The Kudelski Group just furloughed 160 full-time employees of their vaunted NAGRA Vision, leading to headlines like "The beginning of the end for Nagra as a Kudelski Company."
Verimatrix, another stalwart of content cecurity, also seems to be in trouble. Their stock price has been languishing near all-time lows, and even with a recent uptick, the markets aren't buying it. Their market cap went from a lofty $310M in 2021 to just under $29M this morning as this blog went to print. Financial writers are lamenting that "Verimatrix Held Back by Insufficient Growth Even After Shares Climb 25%."
ViaAccess Orca is also cutting its workforce. In September, it announced a cut of 35 employees, but it is rumored that over 100 or more employees will also be getting pink slips.
In the United States, former CAS powerhouse, Irdeto hasn’t been heard of in years. Our market research shows they have mostly abandoned the largest media market in the world.
These companies are having to abandon their focus on protecting content and adopt a more holistic cybersecurity strategy, which lessens their dependence on the customers who brought them to the dance.
As a result, many of their customers are looking for DRM-centric companies like BuyDRM to pick up the slack. BuyDRM is a 25-year pioneer in DRM. We deliver more than 100 million licenses each day with customers in 32 countries serving licenses to more than 150 countries. We are well-positioned to support your next project requiring streaming video security.
BuyDRM’s clients include many of the largest names in Media & Entertainment, eLearning, UGC and live sports including: ABC (Australian Broadcasting Corporation), Daily Rounds, Deluxe Digital, EPIX, FuboTV, POPS Singapore, Rakuten Viki, Redbox, Roku, Samsung TV+, SBS Belgium, Showtime, Sinclair Digital, Soundcloud, Sportradar, TubiTV and ViaPlay
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