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In the Pay-TV system, the Key Management System (KMS) is one of the essential basis. The KMS is used to prevent the unauthorized access to the audio/video data and ensure the benefit of the service providers. The security of the KMS is primarily affected by the key distribution process. In this paper, a distributed key management scheme based on the notion of the rekey path method is proposed. Through the comparison of the proposed scheme and the traditional scheme which is based on the smart card, the proposed scheme is low cost and secure.