Korea's TCC Selects Philips CryptoWorks Content Protection for IP-based Services

Business Wire, Feb 1, 2002

Business Editors/High-Tech Writers

EINDHOVEN, NETHERLANDS--(BUSINESS WIRE)--Feb. 1, 2002

Philips implements integrated CryptoWorks(TM) DRM solution for

protection of TCC's IP-based subscription and VoD services

Philips, a leading supplier of digital TV solutions, announced today that it has been selected to implement a digital rights management (DRM) solution for The Contents Company (TCC), a major interactive TV (iTV) service provider in Korea.

The solution will use Philips' CryptoWorks conditional access (CA) and DRM system for protecting the content of TCC's IP-based television services. The prime reason for choosing CryptoWorks was that it is the only CA system on the market that protects both IP-based services offered by TCC - subscription pay-TV and video-on-demand (VOD) - with the use of a single smart card. Other reasons are that CryptoWorks is acknowledged by the digital TV industry as the most secure CA solution while also offering the best price-performance.

Delivery of the Philips CA/DRM system is scheduled for the second quarter of 2002.

TCC is a subsidiary of the SK group, which is one of the largest conglomerates in Korea. TCC is deploying an IP-based iTV service to residential subscribers in the country using an advanced fiber-to-the-curb (FTTC) architecture.

There are currently 7.5 million homes in Korea with access to broadband services, and TCC is targeting 20,000 subscribers by the end of this year. Included in TCC's offering is an interactive package comprising live broadcast channels, VOD, near video-on-demand (NVOD), TV time-shifting, an electronic programming guide (EPG), Internet access to partner sites and t-commerce applications.

These services can be accessed with a dedicated interactive IP set-top box running the Philips CryptoWorks content protection client.

Philips' CryptoWorks DRM and CA system will be used to protect TCC's valuable content. It does so regardless of whether it is broadcast or on-demand content. Decryption is done all under the control of one and the same smart card in the set-top box, managed by a single head-end system.

Commenting on the order, Jos Swillens, chief operating officer of the CryptoTec business group at Philips Digital Networks, said: "We are delighted that TCC has chosen Philips CryptoWorks for digital rights management and protection of their premium content. We see enormous demand for interactive multimedia services over IP of the kind that TCC provides, and therefore a fast-growing need for an advanced content protection system like CryptoWorks."

Responding to this, Hak Man Kim, TCC's overseas business development director, said: "We are equally pleased to be working with Philips in this area. With their DRM solution we are assured of safe delivery of our valuable content that will also help us maximize our revenue."

About Philips

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 37.9 billion in 2000.

It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 192,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.news.philips.com

Philips Digital Networks, a business within the Philips Consumer Electronics division of Royal Philips Electronics, is playing a leading role in the convergent delivery of digital media via broadcasting and Internet distribution.

A world leader in set-top boxes, Digital Networks is also active in digital content enabling technologies such as MPEG-4-based media streaming, secure content delivery, transmission, middleware and applications for digital TV. News from Philips Digital Networks is located at www.digitalnetworks.philips.com.

About SK and The Contents Company

The Contents Company is a subsidiary of the SK Group, one of the largest and most widely respected conglomerates in Korea. The company was incorporated on July 25, 2001 with a mission to aggressively develop innovative, next-generation services for IP broadband networks.

Through the development of an IP service platform, The Contents Company is looking to provide compelling, entertaining multimedia content to SK's vast customer base. For more info, please visit www.thecoco.co.kr.

SK Group is comprised of several member organizations, all leaders in their respective industries. SK's corporate arm, SK Corporation, operates and owns Korea's largest chemical and gas distribution network. In telecommunications, SK Telecom is the leader in mobile communications, having the largest subscriber base in Korea. For more information on SK, please visit www.sk.com.

Editorial note: Product and company names used herein are trademarks or registered trademarks and are owned by the companies mentioned.