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Direct-To-Consumer Advances THE DIGITAL ENTERTAINMENT GROUP DEG® January 2019 Direct-to-Consumer Advances As DEG moves into 2019 with the goal of using the Nolan recognized with newly formed DTC Alliance to support streaming media Vanguard Award services of all sizes, we offer analysis by three leading Director Christopher Nolan accepted DEG’s Vanguard Award for industry minds about near-term issues and prospects for advocacy of the best home viewing Direct-to-Consumer content delivery. P. 27 experience. 4K Ultra HD Summit, Page 12 DEG sets its sights globally The group added a third sibling organization, DEG Nordic, in 2018 as it also strengthened ties in China and Hong Kong. Page 20 2018 4K UHD products honored Emiel N. Petrone Innovation Award winner Dolby Vision and 4K UHD products from Sony and Warner Bros. were honored at CES. Page 6 SEASONS 1-7 AVAILABLE NOW ON BLU-RAY™, DVD & DIGITAL HD CATCH UP BEFORE THE FINAL SEASON PREMIERES APRIL 14 TH ©2019 Home Box Offi ce, Inc. All rights reserved. HBO® and related channels and service marks are the property of Home Box Offi ce, Inc. THE DIGITAL ENTERTAINMENT GROUP ® DEGQ CONTENTS COVER STORY: DEG Direct-to-Consumer Advances As DEG moves into 2019 with the goal of using the newly formed DTC Alliance to support Direct-to-Consumer media services of all sizes, we offer a feature analysis by three leading industry minds about near-term issues and prospects for Direct-to-Consumer content delivery. Page 27 INSIDE: Matt Strauss: Chair’s Message Page 4 Amy Jo Smith: President’s Desk Page 6 Colin Dixon, Kathi Chandler-Payatt, Michael Nathanson, nScreen Media The NPD Group MoffettNathanson (L. to R.) Sony Electronics’ Cheryl Goodman, DEG’s Amy Jo Smith and Emblematic Group’s Nonny de la Peña, recipient of the 2018 Hedy Lamarr Award for Innovation in Entertainment COMMITTEE ACTIVITY: Technology. Marketing Maneuvers in Social Media; Hedy Lamarr Awards Page 10 TechOps Works in Digital Supply Chain Alliance DEG@CES in Photos Page 24 Committee work is key to DEG 2019 Events Calendar Page 44 driving DEG’s objectives, including supporting mar- Complete Member Listing Page 50 keting initiatives to increase awareness and encourage Cover photo illustration by Heidi Antman adoption of emerging home entertainment formats, and DEG advocates and promotes entertainment implementing standards and platforms, products and distribution channels best practices in the digital which support the movie, television, music, supply chain. Page 36 consumer electronics and IT industries. The DEG can be reached at 424-248-3809, via e-mail at [email protected] or through its website at www.degonline.org. DEGQ JANUARY2019 3 DEG CHAIR’S MESSAGE BOARD OF DIRECTORS Fiscal Year 2018-19 CHAIR Matt Strauss Comcast ince its inception more includes new Directors for 2019 VICE CHAIR than two decades ago, Jim Wuthrich of Warner Bros. Sofia Chang DEG’s mission has Worldwide Home Entertain- HBO S The growing been steadfast: to advocate ment & Games, Rick Hack of CFO and promote entertainment diversity of DEG’s Intel, Sergei Kuharsky of BBC Bob Buchi platforms and products that Studios, and Andrea Downing Paramount Home Media Distribution support film, television, con- Board of Directors of PBS Distribution. SECRETARY sumer electronics and related dovetails with our The Board in 2018 also Jim Wuthrich industries. DEG was formed created a new class of Board Warner Bros. Worldwide Home to support the industrywide expanded areas representative, Special Board Entertainment and Games launch of DVD and from that Advisor. Up to two Special of advocacy EX-OFFICIO foundation today continues Advisors may be appointed Mike Dunn to support its members in each term to sit concurrent with the Board Twentieth Century Fox guiding consumers to the leading edge of of Directors to provide additional input and DIRECTORS entertainment technology. advice but will not have voting rights. I’m Todd Mathers Most recently, that has included support happy to welcome Robin Tarufelli of Deloitte AT&T for 4K Ultra HD content and devices (see in this role. Sergei Kuharsky coverage of the 4K UHD Summit on page A special thanks to those who have BBC Studios 12 and the holiday social media campaign stepped into officer positions this year, for 4K UHD Blu-ray on page 36), and the including Vice Chair Sofia Chang of HBO, Bill Sondheim Cinedigm development of standards and sharing of CFO Bob Buchi of Paramount, Secretary best practices for the consumer-friendly Jim Wuthrich of Warner Bros., and especial- Gerald Hensley delivery of digital rentals and purchases (see Ericsson ly DEG’s former Chair, Mike Dunn of 20th TechOps committee coverage, page 38). Century Fox, who was appointed to remain on Mark Young In 2019, DEG will extend its market-build- the Board as Ex-Officio in recognition of his Fandango ing expertise to the rapidly-growing Di- tenure and significant contributions. Jonathan Zepp rect-to-Consumer (DTC) market, which will As was the case when DEG was formed, Google see several new services from major media there are very exciting opportunities ahead Rick Hack companies join a plethora of existing large of us as an industry and I’m confident DEG Intel and small services in the coming year. DEG has the leadership team, the resources and is currently recruiting members for six com- the experience to make the most of them. Tim Alessi LG Electronics USA mittees that will set objectives and agendas Thank you to each and every member for in areas intended to provide a framework your contributions to and support of these Ron Schwartz for the digital delivery of content directly to n Lionsgate endeavors. consumers. Dametra Johnson-Marletti The growing diversity of DEG’s Board of Microsoft Directors dovetails with these expanded Matt Strauss Andrea Downing areas of advocacy, and it is a pleasure for EVP XFINITY Services, PBS Distribution me to serve with leaders from different Comcast Cable and Chair, sectors of the digital media industry. This DEG: The Digital Entertainment Group Marty Gordon Philips Electronics Chad Bautista Samsung Electronics DEG Mike Fasulo President & CEO Project Coordinator Editor Legal Counsel Sony Electronics Amy Jo Smith Shannon Gregory Marcy Magiera Ian J. Fried Darren Stupak [email protected] [email protected] [email protected] DME Law LLP Sony Music Entertainment Executive Director Project Coordinator Account Manager DEG Q Art Director Eddie Cunningham John Powers Bekah Sturm Andi Elliott Heidi Antman Universal Pictures Home Entertainment [email protected] [email protected] [email protected] [email protected] SPECIAL ADVISOR Robin Tarufelli DEGQ JANUARY2019 4 Deloitte DEG PRESIDENT’S DESK DEG Expands Market-Building Experience for Direct-to-Consumer It has been DEG’s mission to advocate the creation of our new Direct-to-Consum- front to the commercial community; and promote digital entertainment plat- er Alliance as a subset of DEG mem- and promote member channels through Iforms in times of great growth and, per- bership. With the DTC Alliance, DEG is campaigns aimed at building awareness haps more importantly, in more flat years bringing together DTC content companies among consumers, as well as through as well, as attention to the introduction of and service providers to build a robust and industry-leading events. new products and efficient marketplace for all players, and Under the umbrella of the DTC Alliance, platforms can play to promote the new DTC experience to DEG has established six committees to an important role in consumers. set objectives and agendas in the follow- getting industries DEG has a track record of more than ing areas: Marketing Nomenclature, Data back on track to 20 years in bringing new media platforms, Analytics, International Expansion, Rights expansion. including DVD and Blu-ray Disc, to market Repository, Title Availability Directory and I’m happy to and we are very excited to apply this ex- Uniform Metadata Standards. These are share that 2018 was tensive market-building experience to the being populated by DEG members now. a year of healthy DTC arena. DEG encourages all appropriate com- growth. U.S. consumer spending on Every major media company and TV panies to participate in setting the DTC physical and digital home entertainment network will launch a Direct-to-Consum- Alliance’s initial objectives as we all work grew 11.5 percent in 2018, bringing industry er (DTC) streaming service in the next together to increase digital media’s value revenue to a record $23.3 billion, with five years, representing a significant new and convenience for consumers. robust performance by newer platforms chapter in how television and film content Lastly, DEG extends a big thanks to including 4K UHD (content sales +46 is purchased, accessed and consumed. As Chair Matt Strauss and the Board for percent in Q4, +70 percent for the year), DTC streaming currently is a longtail situ- their support and vision in setting a subscription streaming (+30 percent) and ation with a few high-reach apps and many forward-looking agenda for the expanding electronic sell-through (+20 percent in Q4, low-reach services, DEG’s DTC Alliance digital media industry. n +14 percent full year). Both 4K UHD and is designed to support direct-to-consumer EST have been supported by DEG for a media services of all sizes to tackle diffi- number of years. cult challenges and coordinate voluntary Amy Jo Smith For 2019, DEG will expand our platform best practices and initiatives; advocate President & CEO support for subscription streaming with for the industry by presenting a common DEG: The Digital Entertainment Group 2018 DEG Achievement Award Winners DEG presented the following honors during its annual industry reception at CES in Las Vegas. Emiel N. Petrone Innovation in Entertainment Technology Award Sony MASTER Series A9F OLED TV Dolby Vision, Dolby Laboratories 4K UHD Product Award Sony MASTER Series A9F OLED TV, Sony Electronics 4K UHD Content Award 2001: A Space Odyssey Smith with Ron Geller of Dolby.
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