If you are on the Enterprise service and the material you wish to play is sensitive in nature then this feature is for you. It allows you a way to restrict access of the playback stream to only devices with specific IP addresses, which you would "whitelist" within the settings of your account.
This functionality has nothing to do with the software portal itself. The portal is as secure as the password that you choose to use to login with. Channel security is all about viewing of the playback address that your content is delivered on. More about Channel Security
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