Software security provider Irdeto is acquiring media anti-piracy firm BayTSP, the companies are announcing this morning. BayTSP's monitoring and business intelligence technology will broaden Irdeto's range of security solutions for studios, pay-TV providers and media companies, including its ActiveCloak renewal security system. BayTSP counts Comcast, Sony and Toshiba among its clients. Martin Sendyk, Irdeto's SVP, Product and Stuart Rosove, BayTSP's CEO briefed me on the details late last week.
BayTSP's proprietary technology includes web crawlers and data scrapers that are constantly scouring the Internet for unauthorized digital content, gathering over 1 billion points of data each month. The company monitors all protocols across P2P, on-demand and live-streaming destinations. When it finds violators, it sends DMCA take-down notifications, cease-and-desist letters and also works with ISPs to ensure compliance with content rights. BayTSP will also use its data to support litigation when appropriate. BayTSP has differentiated itself from others through its comprehensive approach, though Stuart readily admits that it's such a complex and dynamic landscape that it's impossible to ensure no unauthorized digital copies will be floating around somewhere.
BayTSP has developed a pretty interesting framework for thinking through the various circumstances under which piracy occurs - and how clients should react. At one end of the continuum are the thieves who actively steal content and seek to profit from it, while at the other end are what Stuart calls the "confused users" who often don't even know they've stumbled on illegitimate sites because they may have legitimate ads from major brands distributed to these destinations unwittingly by ad networks. In the middle zone are hackers in it for the sport, "casual pirates" (e.g. college students who engage infrequently and who don't see it as a big deal) and frustrated consumers (e.g. international viewers who want to be up to date on favorite American TV shows that don't have robust in-country licensing).
Using this framework, and leveraging the vast amount of data it collects, BayTSP has realized there's a business intelligence opportunity for it to advise content providers and pay-TV operators on where users have demonstrated significant interest in particular movies and programs. Using its data to pinpoint where digital copies exist and are heavily used helps BayTSP expand from combating piracy to advising clients on where new revenue-generating opportunities lie. As part of Irdeto's solutions portfolio, the business intelligence side of BayTSP is poised for rapid growth.
Note: If you'd like to learn more about Irdeto's full range of solutions, join us at VideoSchmooze: NYC Online Video Leadership Forum on Wed., Nov. 30th, where Irdeto's VP, Business Development Jan Steenkamp will participate on the "Delivering Value to the Multi-Platform Consumer" session. Early-bird discounted tickets are now available.
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