Ultraviolet Spencer Stephens CTO Sony Pictures 2
Changing face of content delivery
Established Emerging • Physical Media • IP networks • Unicast – one to one • Rent it or own it • On demand • Spectrum based • Anyone can start a service • Broadcast distribution – one to many • Just need access to the Internet • Plenty of room for improvement • Appointment based • Improved broadband speeds • Few operators – need access to spectrum • More broadband access options • Mature technologies • Improved streaming technologies • 4 screen – phone, tablet, PC, TV • Single screen - TV 3
Changing face of content delivery
Established Emerging • Completely interoperable • Proprietary
• DVD for any retailer plays in a DVD • E.g. buy some content on Amazon and player from any other retailer some on iTunes you have to remember which is where and which device you • Standard transmission can be can use to play it received on any compliant device • Convenience over video quality • DVB-T, ATSC, etc. • Expectation of high video quality • Low expectation on mobile devices 4
Digital Services
If I buy a movie from one service, can I play it on another service’s devices? Each service launched with their own format and on their own device platform Consumers end up locked in to a single platform – this results in a very fragmented marketplace Each service has their own set of “usage rules” which defines how a Consumers end up Each service launched If I buy a movie from consumer can access locked in to a single with their own format one service, can I play it Each service has their own set of “usage rules” which defines how a consumer can access the content they buy – how many copies, how many devices, download, stream, share, etc… the content they buy – platform – this results in and on their own device on another service’s how many copies, how a very fragmented platform devices? many devices, marketplace download, stream, share, etc…
We are asking the consumer to make a technology decision before buying content! 5
So where’s the revolution?
Digital is supposed to be a revolutionary way to access movies but so far, as an industry, we have really underachieved in exploiting the potential of digital. It just doesn’t all work well together. iCloud and Amazon cloud are great but they don’t solve everything • Content can be re-downloaded but they are still silos The information about what I have bought belongs to the service Only iTunes Extras enables all the great extra stuff that comes with DVD and Blu-ray – menus chapters, behind the scenes videos We have been trying to add value to digital ownership but we haven’t had the tools to do it 6 Digital is more about sell-through
1995-2010 Physical Transactions (% Share of Transactions)
33% Sell through
67% Rental 8
Consumers satisfaction buying movies online
(on scale of -2=least satisfied and +2=most) Relative satisfaction
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Buying Experience Selection Buying from brand you trust Ability to watch on TV Newest Releases Price Share w/ family Areas of lowest Confidence you can keep using if HW failure satisfaction are among those Confidence you can keep using if switch device brand directly addressed Keeping track of what you own by UltraViolet Ability to move to non-TV devices
Source: UltraViolet Consumer Insights Survey, Oct. 2010; conducted for DECE by AbsolutData Technologies; n = 1,025 9
UltraViolet – the power of open
UV is an interchangeable cloud solving the problems consumers have with digital acquisition • Guaranteed access – device breaks – just download it again • Faster downloads – many services have introduced “streaming” - which enable consumers to start watching immediately after completing their transaction -- no need to wait for the entire download • Digital movies, especially in HD can take up a lot of hard drive space – with the cloud, no need to worry about that – download , watch it, delete it, download it again – no problem • Not every service provider currently does or will participate, but the more that do, the better UltraViolet becomes • Adding a new device? Just look for the UV logo That’s the power of “open” : you can do more with your collection. 10
UltraViolet Common File Format
One file accessed by multiple DRM systems One file for multiple delivery systems including broadcast/multicast, streaming, progressive download, and stored playback on devices and media. One file for multiple screens including mobile phones, portable media players, PCs, game consoles, Internet TVs, and home networks. Built on industry standards — ISO MPEG4 container format, compatible with MPEG DASH and PIFE — H.264 video; AAC audio, optional Dolby Digital and DTS — SMPTE Timed Text subtitles 11
DRM Interoperability
Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level More than interoperability
UltraViolet lets you share your content with your family and friends • Add up to five members to your account
Your information belongs to you not the service • With a UV account you decide who to share details of your library with • You can choose whether to share it with a retailer or not • If you want, a retailer can access the things that you have rights to and present you with an offer
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B2B View – the UV roles 14
Content Providers Retailers Subscription Video Providers • Substantially improved • Consumer value proposition • New opportunity to provide consumer value proposition for • Transition store buyers to dot- access to UltraViolet libraries ownership/collection model com / digital customers (several business models) • Both digital-only and • Opportunities to innovate / • New opportunity to add sell- physical / digital bundles differentiate on standard through • More efficient licensing and platform • Strategic tool to attract/retain digital logistics with distributors • More efficient licensing, digital users vs. competing platforms ops • Less cost, risk vs. proprietary
Device I Media Player Apps Digital Infrastructure Other Participants (B2B, B2C) • Large-scale standardized • Large-scale standardized • Large-scale standardized addressable market (like addressable market addressable market where big DVD/BD) • Opportunity for scale- and implementers need tools, • Important feature to expertise-based value services differentiate vs. (or match) propositions to help B2B • Multiple areas envisioned competitors customers implement where innovation can occur on • Device-linked services UltraViolet standard platform opportunities with lower-risk, lower cost 15
BBC Worldwide Consumer Products today announces that it will be releasing its first UltraViolet news UltraViolet-enabled DVD and Blu-Ray titles in the UK in time for Christmas 2012
The four UV-enabled titles; Doctor Who Series 7 Part NEW YORK, Sep 25, 2012 (BUSINESS WIRE) -- 1, John Bishop’s new stand up title Rollercoaster, the --Content Licensed From Major Studios new Top Gear special Including HBO(R), Sony Pictures Home commission andAttenborough: 60 Years in the Entertainment, STARZ, The Walt Disney Studios, Wild – the forthcoming retrospective on Sir David Viacom and Warner Bros. Entertainment to Bring Attenborough’s sixty years in natural history Customers Entertainment Anywhere broadcasting – will be released from late October onwards. Both the DVD and Blu-Ray for each title will […] NOOK Video will also integrate a customer's be UV-enabled. compatible physical DVD and Blu-ray Disc purchases and digital video collection across their Seagate Joins DECE -- The Organization Behind devices through UltraViolet(TM). Customers will UltraViolet soon be able to easily link their UltraViolet accounts to the NOOK Cloud allowing them to view their CUPERTINO, Calif. — Seagate Technology previously and newly purchased UltraViolet-enabled (NASDAQ:STX), the world’s leading manufacturer and movies and TV shows across NOOK devices and provider of storage devices and solutions for the cloud and NOOK Video apps, as well as through third party home, today announced that it has become a member of applications. the Digital Entertainment Content Ecosystem (DECE) an open, cross-industry consortium of movie studios and technology companies that developed and operate UltraViolet™. 16 UltraViolet status
5 retailer/streaming services 6,000,000 accounts Flixster, ParamountMovies.com, UniversalHiDef.com, SonyPictures.com and VUDU.com 7,000 Titles 4 EST providers ParamountMovies.com, Flixster, SonyPicturesStore.com and VUDU 7 content providers DreamWorks Animation, Lionsgate, Paramount Home Media Distribution, Sony Pictures Home Entertainment, Twentieth Century Fox Home Entertainment, Universal Studios Home Entertainment and Warner Bros. Home Entertainment Group
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“What about Apple?”
It’s an app world 19