Overview for NDS OTT Workshop 1-Nov-2011 Jim Taylor

Online Entertainment and UltraViolet

Jim Taylor Head of Technology and Product Development UltraViolet/DECE

• Rental/VOD – More friction for packaged media vs. – Less friction for electronic media • Sell-through – Less friction for packaged media vs. – More friction for electronic media • Subscription – Well-established model from cable – Can disruptive versions (Netflix) succeed at lower price? • Ad-supported – Well-established model from broadcast TV – Works as long as there are enough eyeballs

• Significant shift to streaming over last few years

• Ubiquitous streaming requires ubiquitous Internet

• Download requires storage (SD  HD  4K?)

© 2012, DECE LLC I want to share it I own it. I should with my family and be able to watch household members when, where, I’m afraid I’ll how I want. lose this movie sooner or later I don’t want to be locked in

Partial list from more than 70 member companies

“Cloud-based” Widely honored rights & multi- industry standard device Access (like Blu-ray & DVD)

• Licensing began July 2011 • US consumer availability October 2011 • UK consumer availability December 2011 • Players and Amazon announcements at CES 2012 • Tools announcements at NAB 2012 • Walmart Vudu launch April 2012 • Six studios in market, thousands of titles • Initial phase focused on streaming – Download planned for second half of 2012

© 2012, DECE LLC Entertainment Set Free Standardized Usage Model • Shared account – up to 6 members • Download to 12 UltraViolet- compatible apps or devices (logo) – Common File Format for cross- brand, cross-platform, cross- DRM interop • Stream most anywhere via web, apps, or CE boxes (3 simultaneous) • Best of physical & digital – Blu-ray or DVD with UltraViolet – Buy online with option to get copy on DVD or SD Card – Upgrade purchased discs to UltraViolet right (Disc to Digital )

• Plays in all UltraViolet players and works with all DECE-approved DRMs – 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, compatible with PIFF & MPEG DASH – H.264 video – AAC, Dolby, and DTS audio – SMPTE Timed Text (W3C TTML) subtitles • Publicly available specification * One file for each resolution profile to be distributed: HD or SD © 2012, DECE LLC 10 UltraViolet Common Streaming Format (CSF)

• Currently being defined • Based on CFF • Aligned with MPEG DASH • Adaptive streaming over HTTP

License Content for B2B role: prepare, store Sell content with Create Apps & Devices sale with UltraViolet and distribute UltraViolet rights for downloads rights content/licenses

Tools, Services & Component Providers 4 2 Download Client 3 Retailers 1 Content Svc. Providers Implementers Providers 5 Streaming Providers

UltraViolet Account System (operated by DECE) Provide streaming access to UltraViolet collections

Single companies often take multiple roles

Buy Stream Download Copy Download Stream (In-Home)

Smart TV Smartphone Tablet Computer Blu-ray Player

Retailer LASP DSP

Physical Media

UltraViolet Library

DVD

Online music

Online movies

1980 1990 2000 2010 2020 2030

• Bridge from physical to digital – Consumers don’t have to abandon discs • “Add-on” to hundreds of existing products and services • Best alternative to a fragmented marketplace – Offers freedom, flexibility, choice, and confidence to consumers