Murdoch’s TV Pirates

Murdoch Hacking Scandal: The Downfall of ITV's OnDigital

Introduction

  • Panorama reveals a hacking scandal involving the Murdoch company and pay TV, focusing on the downfall of ITV's OnDigital.

  • Lee Gibbling, a hacker, breaks his silence, exposing a secret operation.

The Significance of Pay TV

  • Commercial heart of News Corp is pay TV.

  • In the UK, Sky TV is a major player.

  • News Corporation owns 39% of BSkyB.

  • ITV's OnDigital aimed to be a competitor but faced challenges.

The Importance of Smart Card Security

  • Smart cards are critical for pay TV businesses to ensure paying customers get access.

  • Hacking and piracy can lead to financial disaster.

Lee Gibbling and the House of Ill Compute (THOIC)

  • Lee Gibbling was involved in TV piracy and created a website called "The House of Ill Compute" (THOIC).

  • THOIC was a platform to get entertainment for free.

  • He was hired secretly by a security unit working inside the company making the smart cards.

NDS Involvement

  • The security unit was part of NDS, a Murdoch company.

  • Sky jointly funded this unit but says they didn't run it.

  • Ray Adams, an ex-senior policeman, and Len Withall were in charge of the unit in the UK.

  • NDS expanded Thoic, investing heavily in computer power.

  • Lee Gibbling was paid up to £60,000 a year as a consultant.

  • Emails show NDS was aware of legal risks associated with Thoic.

  • THOIC became the biggest website for pirates.

Oliver Kommeling and Cracking Competitor Cards

  • NDS recruited Oliver Kommeling, a skilled hacker.

  • Kommeling was hired to work in NDS' lab in Haifa, Israel.

  • Initially, he tested the security of NDS' smart cards, but later he worked on unlocking competitors' cards.

  • ITV's OnDigital used a smart card system from Canal Plus, which was considered unhackable.

  • Oliver Kummeling did crack open the Canal plus card.

The Leak of Canal Plus Codes

  • The codes cracked by NDS were leaked onto the Internet.

  • Canal plus most secret information was published on a Canadian website.

  • The timestamp was like a fingerprint.

  • NDS denies authorizing or condoning the posting of any code.

The Impact on ITV's OnDigital

  • The security breach put ITV's OnDigital at risk.

  • The leaked software provided hackers with insights into the system.

  • Ray Adams sent codes to Lee Gibbling to manufacture counterfeit smart cards.

  • NDS denies using Thoic to sabotage OnDigital or any rival.

  • Ray Adams and Len Withall denied any involvement.

  • An internal email shows Ray Adams and Len Withall receiving the codes.

  • Lee Gibbling updated Ray Adams on the spread of the hack.

The Scale of the Piracy

  • Pirate cards for OnDigital were widely available.

  • ITV's OnDigital tried countermeasures but failed.

  • Lee Gibbling supplied new codes to the pirates.

The Collapse of ITV Digital

  • ITV Digital underwent new name and monkey as hardened security to avoid further attacks.

  • Lee Gibbling's betrayal was exposed on the Internet.

  • NDS shut down the House of Ill Compute and destroyed evidence.

  • ITV Digital collapsed in 02/2002 leading to shareholders losing £1 billion and 1500 employees losing their jobs.

  • The football league lost a 80,000,00080,000,000.

  • Piracy was the main factor in the collapse.

NDS's Response

  • NDS claims to be a leader in the fight against TV piracy.

  • They state Thoic was never used for illegal purposes.

  • Ray Adams retired and was later confronted about his involvement.

  • Lee Gibbling went on the run.

Legal and Financial Repercussions

  • Lee Gibbling went abroad, assisted by NDS.

  • NDS paid Lee Gibbling a severance payment of £15,000 in 02/2008.

  • Canal plus sued NDS in 02/2002, but News Corporation took over the case, handling it in New York.

  • Rupert Murdoch did a deal with Canal plus parent company, halting the legal case.

The Sicily Trial

  • A criminal trial is taking place in Sicily regarding hacking into smart card systems, including NDS's.

  • A Swiss company's complaint led to the trial.

  • Davide Rossi, an NDS consultant, is charged with paying an alleged hacker.

  • NDS refutes the allegation.

Questions About Corporate Culture

  • The phone hacking scandal has raised questions about the Murdoch Empire's corporate culture.

  • James Murdoch was a nonexecutive director of NDS during the hacking.

  • Ofcom is examining if Rupert and James Murdoch are fit and proper persons to control BSkyB.

  • Allegations of TV hacking are more serious than phone hacking.

Conclusion

  • The hacking led to job losses and financial damages.

  • The events exposed the vulnerability of pay TV systems and raised ethical questions about corporate practices.