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FilmFlex ... A DECE & Microsoft- Based DTO Online Movies Maria Ingold Head of Technology [email protected] FilmFlex ... The story • Launched in 2005 to replace UK cable NVOD • UK’s leading on-demand film service • Largest VOD movie service in Europe • Jointly owned by Disney and Sony • Over 30 content suppliers including all Studios FilmFlex ... The model • Farmers Market model • No MGs - Revenue risk / share • Suppliers control price and window • VOD windows reducing to day-and-date FilmFlex ... On cable • 500 movies to choose from at any time • Reaches 3.7 million homes • 1.1 million V+ HD capable boxes • Over 60 million rentals to date • Up to 1.2 million buys per month FilmFlex ... White-label online movies service

• Launched April 2010 with Virgin Media • Second partner launch – Q4 2010 • ~500 films and growing to 1000+ in 2011 • Always 150 - 200 new releases. More than: – iTunes – LOVEFiLM and blinkbox combined • Many blockbusters day-and-date with DVD FilmFlex ... Reviewing the DTO market issues

• No significant market outside Apple • Download limited to device or small range • Lack of a central library • Potential to lose film library • Not portable • Lack of a standard format • Studio negotiations for new formats/platforms • Less feature rich than DVD FilmFlex ... Addressing the DTO market issues • DECE – Download to multiple devices – Central library – never lose a film – Stream film at a friend’s house – Standard file formats – Watch same content on all supported devices – Licensing to DECE Studio partners • Microsoft – Silverlight Enhanced Movies FilmFlex ... Timeline to DTO

Action Timescale SPECIFICATION: DECE specs published October 2010 FEASIBILITY: DECE CFF testing September 2010 – December 2010 FEASIBILITY: SL4 output protection testing September 2010 – November 2010 FEASIBILITY: Microsoft SmoothStreaming July 2010 – October 2010 tests FEASIBILITY: Microsoft SLEM tests July 2010 – October 2010 PREPARATION: Acquire DTO, HD, DECE September 2010 – March 2011 rights REQUIREMENTS: Partner September 2010 DESIGN/DEVELOP October 2010 – March 2011 LAUNCH: DTO (CFF, SD, HD) 30 March 2011 LAUNCH: DECE Download (DECE Locker) June 2011 LAUNCH: DECE Streaming (DECE LASP) September 2011