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Think Your Password Will Protect Your Data? Think Again
And don't believe the hype: There will be no TV revolution. Deloitte predicts subscription TV is here to stay; existing broadcasters and distributors will dominate over-the-top (OTT)

TORONTO, ONTARIO -- (Marketwire) -- 01/15/13 -- More than 90% of user-generated passwords will be vulnerable to hacking in a matter of seconds, according to Deloitte's Canadian Technology, Media & Telecommunications (TMT) Predictions 2013 report. Deloitte's TMT Predictions 2013 report also counters what many believe to be true, revealing less than 1% of Canadians will "cut-the-cord" on their subscription TV services, existing broadcasters will continue to deliver the majority of OTT services, and 4K televisions won't disrupt the marketplace just yet.

"Passwords containing at least eight characters, one number, mixed-case letters and non-alphanumeric symbols were once believed to be robust. But these can be easily cracked with the emergence of advance hardware and software," said Duncan Stewart, Director of Research, Deloitte Canada and co-author of TMT Predictions 2013. "A machine running readily available virtualization software and high-powered graphics processing units can crack any eight-character password in about five hours."

It's human behaviour and a tendency for password re-use that puts password security at risk. Moving to longer passwords or to truly random passwords is unlikely to work, since people just won't use them. Multifactor authentication using tokens, cellphones, credit cards or even biometrics are likely solutions.

Deloitte also predicts that almost all Canadian households currently paying for TV subscriptions will continue to subscribe. Despite the perceived popularity of pure plays, the OTT market will continue to be controlled by existing players.

"There's a lot written about big changes in the way we will watch television, but the reality is quite different," said Richard Lee, Deloitte Canada's National Managing Partner for TMT. "Our research suggests that Canadians who want to watch the three key pillars of TV: reality shows, sports and news are unlikely to cut the cord. Though 2013 will see very few 'cord-cutters', 'cord-nevers' will begin to emerge as young people establish households without ever paying for traditional pay TV subscriptions."

The appeal of existing broadcasters and distributors lies in the familiarity of their brands and the fact that popular content is quickly made available after it is originally broadcast. Deloitte estimates that 75% of programs will be watched within a week of initial broadcast.

Also on the subject of television, while it's true that 4K televisions - which offer four times the resolution of the current highest standard - are starting to be available, Deloitte predicts that only a very few will be sold in Canada. Most Canadians will not want to pay the hefty price tag, especially as there won't be any 4K broadcasts this year.

For more than a decade, Deloitte's TMT Predictions have forecast many of the most influential trends in technology, media and telecommunications - making them a key source of market intelligence for businesses in all sectors.

Deloitte's TMT Predictions are based on worldwide research supported by in-depth interviews and input from clients, Deloitte alumni, industry analysts, leading TMT executives, and thousands of Deloitte TMT practitioners across its global network.

Summary of TMT Predictions 2013

The 10 most significant TMT predictions to impact the Canadian marketplace in 2013:


1.  P@$$1234: The end of strong password-only security - More than 90% of
    user-generated passwords - even those considered strong - will be
    vulnerable to hacking in seconds. Additional forms of authentication
    including token devices, additional passwords sent through SMS to your
    phone, fingerprints and other biometrics, or even 'tap and go' credit
    cards may be required. 
    
2.  The reality of TV "cord cutting" in North America - More than 99% of
    North Americans will continue their pay TV subscriptions. But a growing
    number of young people will likely not subscribe when they move out on
    their own, becoming the first generation of "cord nevers". 
    
3.  Over-the-top may lift legacy broadcasters more than pure plays - Two of
    the top three over-the-top (OTT) TV and movie services are likely to be
    provided by existing broadcasters or distributors. 
    
4.  4K kicks off - The next generation of high definition (HD) TV sets - 4K
    - will be available in Canadian stores, offering four times higher
    resolution than the current highest standard HD TV. But there will be no
    4K broadcasts in 2013, so consumers will not have much to watch on their
    expensive ($15,000 - $25,000) sets. 
    
5.  The PC is not dead: It's about usage not units - More than 80% of
    Internet traffic measured in bits will continue to be generated on
    traditional personal computers (desktops and laptops). And of the total
    time spent on PCs, tablets and smartphones combined, more than 70% will
    be using PCs. This includes both work and home usage. 
    
6.  Let's get together: Crowdfunding portals bring in the bucks -
    Crowdfunding portals will raise $3-billion globally, a 100% increase
    over 2011. 
    
7.  "Mobile advertising" thrives, led by tablets, but smartphone display
    lags - "Mobile" advertising - a category including tablets, smartphones
    and feature phones -should grow by 50% to reach $9-billion globally. 
    
8.  Enterprise Social Networks (ESN): Another tool, but not yet a panacea -
    More than 90% of Fortune 500 companies will have selectively or fully
    implemented an ESN by the end of 2013, a 70% increase over 2011. Of
    those who register, only a third will read content once a week or more
    and just 40% will make an ESN post in the average month. 
    
9.  Bring your own computer: A tale of two interpretations - Very few
    additional companies will adopt a bring-your-own-computer (BYOC) policy
    where the employer pays for the PC. At the same time, 50% of Fortune 500
    companies will allow employees to bring their own personally-owned and
    paid for computers. 
    
10. The looming spectrum shortage: Worse before it gets better - The demand
    for wireless bandwidth continues to grow causing increased spectrum
    exhaustion, especially in Canada's urban areas - leading mainly to
    slower speeds, but sometimes an inability to access networks or dropped
    calls or data sessions.

Get the full Canadian TMT Predictions (http://www.deloitte.com/view/en_CA/ca/industries/tmt/tmt-predictions-2013/index.htm/?utm_campaign=predictions-2013&utm_term=tmt&utm_medium=friendly%20url&utm_source=predictions_2013) or find out more about the Global Predictions (http://www.deloitte.com/view/en_GX/global/industries/technology-media-telecommunications/tmt-predictions-2013/index.htm?id=gx:pm:Pred13:theme).

Connect with us:

Twitter (https://twitter.com/deloittecanada) - #Deloittepredicts

Facebook (https://www.facebook.com/DeloitteCanada)

YouTube (http://www.youtube.com/user/deloittevideo)

The predictions will also be showcased in a 14-stop cross-country TMT Predictions road show series: Toronto (January 15); Montreal (January 16); Quebec City (January 17); Ottawa (January 18); St. John's (January 21); Halifax (January 22); Saint John (January 23); Edmonton (January 24); Saskatoon (January 25); Vancouver (January 28); Calgary (January 29); Regina (January 30); Winnipeg (January 31); Kitchener (February 1).

Visit www.tmtpredictions.ca to register for the event in your area.

About Deloitte

Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte operates in Quebec as Deloitte s.e.n.c.r.l., a Quebec limited liability partnership.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Contacts:
Deloitte
Jeannie Tsang
Manager, Public Relations
(416) 643-8084 or (416) 576-9016
jeatsang@deloitte.ca

Deloitte
Caitlin Stidwill
Media Relations Manager
(416) 775-7144 or (647) 290-7263
cstidwill@deloitte.ca
www.deloitte.com

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