Verimatrix Provides Enhanced Revenue Security for Telefnica s Movistar TV

Flexibility of VCAS for IPTV Makes it Ideal to Protect Multiple Viewing Devices for Leading Spanish IPTV Service

San Diego, Calif. - 11 Feb. 2015 - Verimatrix, the specialist in securing and enhancing revenue for multi-network, multi-screen digital TV services around the globe, today announced that Telef nica, one of the largest telecommunications companies in the world, has deployed the Verimatrix Video Content Authority System (VCAS ) for IPTV to provide enhanced revenue security for its Movistar TV, part of the Fusi n service which features the most complete and varied telecommunications services and television content offering in Spain.

VCAS for IPTV currently ensures revenue security for the premium channels offered through the Movistar TV service; however, in the future, VCAS will also easily scale to protect the entire offering. Movistar TV currently has two million subscribers in Spain alone.

As the top-ranked IPTV content protection solution, VCAS for IPTV enables the secure delivery of linear TV and on-demand video services over Telef nica's managed IP-based network, and offers a solid upgrade platform for Telef nica to cost-effectively extend its competitive advantage. VCAS for IPTV has been integrated into Telef nica's diverse set-top box (STB) and SmartTV offering, featuring models by ADB, Arris, Zyxel, and Samsung. The solution provides robust protection for both legacy STBs, SmartTVs and future STBs, and has also been also integrated with Telef nica's existing back office systems. The integration effort has been lead by Alcatel Lucent.

Verimatrix is widely regarded as the leader in revenue security, said Roberto Campo, director of the Service Development Residential segment at Telef nica. The company's reputation for excellence and innovation were top of mind when it came time to choose a reliable revenue protection solution for our Movistar service offering. We anticipate many advantages and cost efficiencies as a result of deploying VCAS for IPTV as it affords us the flexibility to use one solution for both legacy and future STBs, as well as the ability to deploy multiple DRMs under a unified security head-end.

VCAS for IPTV is a fully integrated component of the VCAS architecture, which enables secure video delivery across a broad range of networks and device types. VCAS for IPTV offers flexibility in the choice of client devices, broad middleware interoperability and proven scalability. For seven straight years, Verimatrix has been ranked number one globally in IPTV content protection and DRM by market research firm SNL Kagan.

Innovative operators such as Telef nica require a robust revenue security solution to protect their valuable content assets, said Steve Oetegenn, president, Verimatrix. Having been successfully deployed by more than 500 operators, VCAS for IPTV is well suited to protect even the largest, most popular service offerings, such as Telef nica's Movistar TV. In addition, the VCAS solution is both flexible and scalable, enabling Telef nica to easily enhance their security coverage should they expand their network.

About Telef nica

Telef nica is one of the largest telecommunications companies in the world in terms of market capitalisation and number of customers. From this outstanding position in the industry, and with its mobile, fixed and broadband businesses as the key drivers of its growth, Telef nica has focused its strategy on becoming a leading company in the digital world. The company has a significant presence in 24 countries and a customer base that amounts more than 323 million accesses around the world. Telef nica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy. Telef nica is a 100% listed company, with more than 1.5 million direct shareholders. Its share capital currently comprises 4.551.024.586 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao ad Valencia) and on those in London, New York, Lima, and Buenos Aires.

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