Verimatrix Continues to Grow Market Share as Global Number One in IPTV Content Protection

SAN DIEGO, CA--(Marketwire - October 22, 2009) - Verimatrix, setting the standard in content security technologies that enhance the value of pay-TV networks, has been ranked the global number one provider of IPTV content protection for the seventh consecutive reporting period by Multimedia Research Group, Inc. (MRG). In the analyst firm's latest semi-annual IPTV Market Leader Report, Verimatrix increased its global market share since the Spring report with significant new deployments in Europe, Asia and Rest of World. Once again, Verimatrix was the only company to rank in the top three in each region and has increased its global leadership position since Fall 2006.

As MRG's report is released, Verimatrix is also celebrating a major company milestone of 10 million screens protected by the Verimatrix Video Content Authority System (VCAS™) solutions. Building on its success in IPTV, Verimatrix has also been able to extend its reach to secure set-top box, PC and mobile clients in DVB and hybrid networks.

"IPTV providers are becoming increasingly sophisticated as the market matures," said Gary Schultz, president and principal analyst of MRG. "We are now tracking operators that are using two different content protection vendors for broadcast and video-on-demand. As different hybrid network types emerge, we feel Verimatrix is well positioned to address these new security issues."

MRG's report tracks more than 100 IPTV vendors in 24 regional sub-segments based on the installed base of six product categories in more than 800 IPTV operations. Although the overall growth of IPTV has slowed down in recent months, MRG reports that 16 new service providers were added to the Rest of World category and Europe enjoyed the largest percentage of growth -- up 17 percent -- from just six months ago. Verimatrix is noted to have exceptionally strong growth prospects due the number of tier one telco customers, which is nearly double as many as the number two ranked CA/DRM company.

"The IPTV market has proved that software-based protection is a welcome alternative to legacy smart card-based security systems," said Tom Munro, CEO of Verimatrix. "Our customers select our VCAS solutions for distinct economic and flexibility advantages. They remain our customers due to ease of deployment, scalability and outstanding customer care. We are extremely proud of our team's ability to achieve these major accomplishments in such a short period of time."

The award-winning VCAS™ for IPTV is part of Verimatrix's 3-Dimensional Content Security approach for telecommunications carriers, service providers, content aggregators and resellers that must provide content security on their IP networks for live broadcast and video-on-demand IPTV services. The software-based content security solution obviates the need for smart cards thorugh the leverage of mature, proven two-way Internet security protocols, a Public Key Infrastructure (PKI) public/private key pair system and X.509 digital certificates.

A downloadable security system for IP clients is not only more secure, it enables less expensive set-top box hardware and can be quickly updated as required to combat potential pirate attacks. Viewers all over the world enjoy premium Hollywood and broadcast content secured by Verimatrix. Verimatrix is an ISO 9001:2000 certified company.

About Verimatrix

Verimatrix sets the standard for content and revenue security solutions for pay-TV networks, with a global customer base of premier service providers. The Verimatrix Video Content Authority System (VCAS™) offers a suite of independently audited, next-generation solutions and is consistently ranked as the global leading IPTV content protection solution. The company's 3-Dimensional Content Security approach, built around VCAS and its ViewRight® client device technologies, enables the business of content delivery to screens of all types, across multiple networks, while using multiple layers of protection techniques to achieve the widest security perimeter. Maintaining close relationships with major studios, broadcasters, industry organizations and a progressive partner ecosystem helps address the challenges facing the pay-TV industry of today, and anticipate the challenges of tomorrow. For more information, please visit www.verimatrix.com or our Pay TV Views blog to join the conversation.