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Next Generation Blu-ray - Including High Fidelity Pure Audio December 2013

Presented by: Jim Bottoms Gifla Associates - Promoting Business Growth

● Industry and product advocacy ● Event organisation and management ● Presentations and speaker participation ● Promotional services and support ● Recruitment, training, staff development and motivational programmes ● Industry and consumer awareness building ● Organising and supporting cross industry collaboration ● Press and media relations management ● Business briefings and networking events

2 DECE

3 What Does The Future Hold? (Gifla Associates Presentation to MediaTech Dec 2012)

4 What Does The Future Hold?

● An upgraded BD format?  4K display  Higher frame rate ● A portable BD solution?  Physical media? ● A strong collaborative approach to UltraViolet  Disney joining the group?  Other ‘influential’ participants? ● Digital revenue generation

5 Collaboration is the New Competition

6 What Does The Future Hold?

Upgraded BD format ● BDA agreed to pursue 4K BD solution

● Likely to be end 2014

7 What Does The Future Hold?

A Portable BD Solution

● High definition memory card

● SeeQVault a collaboration between Panasonic, , Samsung,

8 What Does The Future Hold?

Next Generation Secure Memory Initiative

● SeeQVault, an HD capable security protection and management system for SD Cards, embedded memory and other flash media, for use in advanced consumer applications including smart phones, tablets, , games consoles, set-top boxes and TV’s.

● Flash drives and memory cards bearing the SeeQVault logo allow interoperability of content across devices in secure key-managed environment.

It enables Consumers to:

● Move content across devices without domain or account-bound restrictions.

● Enjoy content anywhere, anytime with or without an internet connection.

● Share and enjoy content with friends and family.

9 What Does The Future Hold?

It enables Content service providers to:

● Expand mobility options for consumers.

● Allow full and unfettered playback with no bandwidth restrictions.

● Create new consumption patterns and business models.

It enables Content creators to:

● Enhance the value of content ownership through greater viewing flexibility.

● Protect premium content from unauthorized single-copy or large scale replication.

● Create new business models that span screens ranging from 4 inches to 4K.

10 What Does The Future Hold?

UltraViolet ● Good progress in US ● Retail commitment in France and Germany ● Expect push early 2014 ● Push on UV via BD  Especially in UK  Packaging and messaging being developed ● HD sell-through is confusing the message

11 What Does The Future Hold?

12 13 A Few Facts

Mass market home video is continually improving in quality:

Recent advances in not quality focussed:

14 A Few More Facts

A wave of Blu-ray will take The standard of popularity for the over from DVD audio equipment analogue vinyl completely by 2015 in households format with sales (Source: InStat) continues to at a 15 year increase high and jumping exponentially and 39% in 2012 will do until 2017 (Source: Nielsen (Source: GFK, 2013) SoundScan)

15 Extract From The Real Techniques Conference/Gfk February 2013

A market with varying growth rates. But & audio on-the-move show the same success

16 The Solution: High Fidelity Pure Audio

● A new audio media using Blu-Ray technology

● Plays on all Blu-ray players and also PS3, computers etc.

● No video content ● Only audio in high definition ● Product handles exactly like a normal CD

● Audio is available in Uncompressed PCM, DTS HD Master audio, Dolby True HD and Auro formats

17 High Fidelity Pure Audio : The Facts

● CD and MP3 are standards, but have a compressed sound ● Between the master tape and CD or MP3 the sampling frequency, resolution and dynamics are compressed (data disappears): this is what is called the compression of sound ● With vinyl, you only hear the original pressing once! (continuous wear from the stylus will erode the fidelity of the original pressing) ● Pure Audio returns to using 100% sample rates, resolution and dynamics at the master frequency band: the listener can now hear the work as it was created by the artist in the studio! ● Pure Audio is copy-protected

18 High Fidelity Pure Audio : The Facts

CD Audio High Fidelity Pure Audio

Duration: 72 Minutes 7 Hours +

Capacity: 0.65 Gigabytes 50 Gigabytes

HD Formats 2.1/5.1 PCM Non-Compressed Formats: PCM limited to 44.1khz 2.0 DTS HD Master Audio Dolby True HD 44.1khz 96Khz to 192khz Sampling Frequency: Limited to 44.100 information per second 96.000 mini information per second

Bit Value: 16 bits = 65,536 possible values 24 bits = 16,777,216 possible values

Dynamic: 96 144 Decibels

Bitrate: 1.5 Megabits/sec 21.5 Megabits/sec

Piracy Protection: Can be copied Anticopy AACS

19 Additional Information

As High Fidelity Pure Audio is copy-protected, a leaflet inserted in each product allows you to connect to a site and download in Flac Lossless and MP3 formats!

20 French Example Leaflet: ‘How To Redeem Your Digital Copy’

21 Rolling Stones – Grrr! Pure Audio Release: The Analysis

● Released January 2013 ● An act with over 200m worldwide sales ● 4x Grammy Award winners ● 32 number 1 singles in the UK & US charts ● 50 high quality tracks on one disc ● Featuring 2 brand new studio recordings

Amazon Rating:  “It’s awesome, these songs have never sounded so good!”  “Fantastic, it's about time that there were some quality audio Blu-ray discs!”  “This is a quality product. To have so many Rolling Stones songs on one disc is a joy”

22 The Launch Of High Fidelity Pure Audio In France

● In partnership with Fnac, then extended to Amazon, Carrefour, Leclerc, Auchan etc ● Huge media coverage ● Full page feature of the format in one million copies of Fnac customer magazine ‘Contact’ as well as e-mail communication to over 3.5m subscribers ● “It is going to be the success story of the Christmas Season” quotes Valerie, Head of Audio at Fnac Ternes, Paris ● 150 titles by end of 2013 (Universal only). Estimated worldwide number of releases at 300 by year end!

23 The French Success Story Goes Global

…in more than 14 countries before the end of the year! 24 Example Global Releases

Sept 2013 – Hong-Kong, USA, Canada and the Netherlands Oct 2013 – Australia, UK, Italy, Japan, Germany, Thailand, Singapore and Taiwan Nov 2013 – Korea …and more!

From 30 to 100 titles available in each country before the end of the year

Industry Releases:  Warner / Led Zeppelin, Francoise Hardy, ...  Sony / David Bowie  Avex / 10 releases in Japan  B&O Les Misérables  UMG / The Rolling Stones Grrrr then 100 releases

25 High Fidelity Pure Audio Group

Our Objectives  To work together to promote the format to the end consumer  To create a standardised product offering and feature set  To develop and communicate a consistent promotional message and approach  To create a platform for cross industry co-operation  To negotiate with suppliers and licence holders to maintain the format integrity and minimise costs.  To seek the support of other industry groups to ensure maximum promotional impact  To encourage increased industry support across the whole supplier spectrum

26 High Fidelity Pure Audio Industry Group Launched June 2013

27 Gifla Associates Warren House, Warren Park Harnett Drive Milton Keynes, MK12 5NX www.giflaassociates.com

Contact: Jim Bottoms David Millar Director Director of Communications T: 44 (0) 1908 326 570 T: +44 (0)1908 326570 M: 44 (0) 7768 282 445 M: +44 (0)7734 954397 E: [email protected] E: [email protected]