ISSUE 02 // April 09
Looking ahead
Digital confidence – the way to digital growth?
With the rise of the internet, faster broadband, media convergence and ever innovative technology, digital growth has accelerated until it’s become part of everyday life. Whether for business or pleasure, digital technology is used across all facets of communication and entertainment.
While this is an exciting time, with growth predictions for the digital economy in Europe set to be 18% per year until 2012, it’s also very fast-moving and confusing – with separate standards and different security measures to protect the consumer, the content, the interaction and the technology providers.
To try and address this digital growth, leading international cable operator Liberty Global commissioned Booz & Company to produce a report into digital confidence. Eric Lennon, CTO of UPC Broadband, which recently awarded its 2008 Vendor Award for Best DTV System Supplier to Nagravision, has outlined his views on the digital economy and the reasons behind this report.
The digital economy is predicted to continue to grow – how and why would you say this industry is evolving so fast?
The industry has tapped into a huge and growing demand from consumers for entertainment and communications. Each step along this path has opened consumers’ eyes to future possibilities. They have shown themselves to be very eager to take advantage of them, provided they’re offered in an attractive and cost-effective way.
Do you think the current economic climate is likely to affect the digital industry or will it weather the storm?
In the recent past the television industry has been relatively counter-cyclical, in that even if people no longer feel able to go out to restaurants, theatres or cinemas they still want to be entertained at home. The scope of home entertainment has now broadened to include internet usage, and, while not being complacent about the risks, we believe that this means that the digital industry should be relatively well placed.
Liberty Global, of which UPC is a part, commissioned a study into digital confidence – do you know how this came about?
We believe that the digital economy in Europe will grow significantly over the next few years. However the actual level of growth will, we believe, be quite heavily influenced by a number of issues. We commissioned the study to get a better understanding of these issues and share them with the wider community. This study forms part of Liberty Global’s ongoing research programme designed to actively contribute to pending policy and regulatory debates at EU and national level.
What do people think about digital confidence? Is it something that’s evolved recently? Why do you think it’s such a big issue at the moment and where does it stem from?
I think it’s something that has evolved over time. The high profile nature of cyber-crime and various scams has made people very sensitive to the risks, even though the actual numbers involved are relatively small compared to the total number of internet users.
Piracy and theft are two often quoted issues in the media landscape – would you say that the digital evolution has spread the problems and/or increased awareness of these challenges?
Harking back to the previous question, I do believe that the general public’s awareness and sensitivity has increased. It’s an interesting question about the effect of digital evolution on this problem, since crime has always existed. What we’re seeing now is not necessarily an increase in crime but rather a change in the type of crime being committed. Content providers are only too aware of the problems of piracy and theft. There is no doubt that their concerns now centre around the fact that today’s digital landscape offers new ways for their content to be obtained without payment. However this should be set in context, for instance thinking about the prevalence of illegal DVD and software copying in some parts of the world.
What are you and other companies doing to tackle these issues?
To put this in the context of the report, we’re addressing the four pillars on which digital confidence is built, namely: Network Integrity and Quality of Service, Privacy and Data Protection, Child Protection and Prevention of Piracy and Theft. We’re continuing to increase confidence in each of these areas. To take one specific example of something already in place, we work with the Dutch police child pornography unit to ensure that we block access to inappropriate content. We hope that the steps that we have taken and are taking to tackle all of the issues will encourage other companies to follow our lead.
The report proposes taking a ‘holistic’ approach to digital confidence – not just piracy and theft. How do you intend to ensure that other areas, such as network integrity, minors’ protection and data protection are considered equally important as piracy and theft?
We’re working to ensure that digital confidence policies and practices are embedded throughout our organisation, through the establishment of internal protocols and governance structures to guide product and service roadmaps. The aim is for all of the areas you mention to be covered as part of a coordinated, rather than piecemeal, approach.
How do you intend to work closely with your competitors and others in the industry to tackle the challenges faced to ensure digital confidence across the board?
Again, as part of the approach we see the need to include stakeholders in our solutions. These of course include not just our own customers, but also other members of our industry - including competitors and other interested parties such as content owners and regulators.
UPC Broadband gave its 2008 Vendor Award for Best DTV System Supplier to Nagravision. What were the key factors behind the decision to honour Nagravision in this way?
The award is an acknowledgement of the work done by Nagravision in working closely and effectively with us to build a successful cable operation. UPC Broadband recognises Nagravision’s performance, and this is a chance for us to say thank you.
Digital confidence is a key area that Nagravision seeks to address with its technology - whether through conditional access, smartcards or other innovations - to ensure that content is secure but the user’s experience isn’t restricted. Working closely with customers such as UPC Broadband to provide a more secure yet enhanced experience, Nagravision will be heavily involved in contributing to the digital growth that’s forecast for the next few years.
For more information:
Securing the next value of digital growth, a Booz & Co report
