Downloadable CAS and Secure Processors Meet Market Needs, According to ABI Research.

OYSTER BAY, N.Y. -- Critics say that software-only digital rights management solutions for electronic media aren't sufficiently robust. But traditional hardware-based security measures, common to long-established content protection systems, may not be up to the challenges of an interconnected digital world.

According to a new study from ABI Research, Downloadable Conditional Access systems (DCAS), in which the two technologies converge, may offer the best of both worlds.

DCAS is a combination of traditional conditional access (CA) and the emerging downloadable software-based model. The hardware resides in the user's set-top box (STB), and interacts with downloaded security software to permit access to the content being received.

Traditional CA players such Scientific-Atlanta, NDS, Motorola and Nagravision are already getting on board with DCAS.

"DCAS is important because it solves digital media's challenge: the legitimate transfer of content from the STB to an ancillary device such as a portable video recorder," says ABI Research director of broadband and multimedia research, Vamsi Sistla. "Consumers spend fewer hours watching TV now. They want to receive content through other devices. If the content owners don't face up to this, they risk losing sales."

Meanwhile, program content is becoming a commodity. There are many more media sources and many more distribution paths. If a particular piece of entertainment is not made available for a wide variety of devices, consumers will look elsewhere, and its owner will lose.

DCAS's marriage of software with hardware-based encryption enables transfer of content from an STB to a personal media player or even a mobile phone.

Broadcom and STMicro are making secure video processors for a variety of peripheral devices. As long as they are based on standard rules other IC vendors can work with, such processors built into a portable video player could allow it to receive secure content from a cable or satellite STB.

"That's very powerful," says Sistla. "Cable, satellite and IPTV providers need to build that into their business models, by tailoring their subscription packages to include post-STB 'transfer' fees, and by investing in or partnering with ancillary device vendors. EchoStar, for example, has invested in Archos, a small company that makes portable video recorders."

ABI Research's new study, "Conditional Access and DRM: Focus On CATV, DBS and IPTV Platforms" discusses the emergence downloadable CAS and DRM. Providing discussion, detailed forecasts, and market trend analysis for OCAP, two-way-ready DCR devices and software based DRM, it forms part of the subscription "Digital Media Distribution and Management Research Service", which includes research reports, ABI Insights, vendor matrices, and analyst inquiry time.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in automotive, wireless, semiconductors, broadband, and energy. For information visit www.abiresearch.com, or call +1.516.624.2500.