UltraViolet Consumers’ Bridge to the Digital Future SUPPLEMENT TO 2 UltraViolet: Consumers’ Bridge to the Digital Future » www.HomeMediaMagazine.com Acknowledgements Warner Home Video Sony Pictures Home Entertainment Universal Studios Home Entertainment Dolby Rovi Neustar Media DEG: The Digital Entertainment Group Produced by Home Media Magazine www.HomeMediaMagazine.com « UltraViolet: Consumers’ Bridge to the Digital Future 3 ULTRAVIOLET CONSUMERS’ BRIDGE TO THE DIGITAL FUTURE Executive Summary he fall 2011 launch of UltraViolet, more nation’s largest retailer, has announced that come than one observer has noted, was a “trans- April, customers can bring their Blu-ray Discs or Tformational” moment in the history of DVDs into any of the giant retail chain’s more home entertainment. That’s because the concept than 3,500 U.S. stores and an associate will help is truly revolutionary in that it puts consumers them gain access to a copy in the cloud for $2 firmly in the driver’s seat when it comes to bring- for an equal conversion for DVDs and Blu-ray ing entertainment into the home — or watching Discs or $5 for an upgrade from DVD to high- it on the go. definition. UltraViolet is a new initiative — with solid Each week, more than 100 million customers backing from the major Hollywood studios, key visit a Walmart store, representing nearly one- retailers, consumer electronics manufacturers third the total U.S. population. And once they and various other product and service provid- get a taste of how easy, simple and inexpensive it ers — that lets consumers access the rights to is to digitize their movie libraries, the thinking movies and other content in a digital locker in goes, they’ll be hooked, prompting them to buy the cloud, whenever they choose, on whichever physical media with instant UltraViolet capabil- device they choose. ity in the future, as well as buy online via websites Buy it once, own it forever, and watch it over and apps when instant purchase and use is more and over again in perpetuity on the family convenient. HDTV, on your computer, on your tablet or even Other large retailers, including Best Buy, are on your smartphone. expected to follow suit. Also, on the consumer It’s a bridge between the physical world — electronics front, Samsung in March became the DVDs and Blu-ray Discs — and the digital world. first major manufacturer to include this disc-to- For studios, it’s a way to revive home video sales digital capability on its new Blu-ray Disc players. by offering movie lovers more flexibility in how A variety of key industry partners are support- and where they access their content. For consum- ing UltraViolet. As it did with the launches of ers, it’s a simple, cost-effective and convenient DVD and Blu-ray Disc, DEG: The Digital En- way to enjoy entertainment at home, at work or tertainment Group, the industry consortium that on the move. It also eliminates confusion caused promotes home entertainment products, has put by so many different distribution formats and its unified industry muscle behind UltraViolet. platforms. No more losing movies downloaded The DEG believes strongly in promoting Ultra- from iTunes. No Redbox discs accidentally mailed Violet as the best way to access, collect and enjoy back to Netflix. digital entertainment. The studios collectively Most of the major studios are including have come together under the umbrella of the UltraViolet on upcoming releases. Consumers DEG to work together to promote the promise buy a title, either digitally or a physical Blu-ray of UltraViolet. or DVD, then activate a free UltraViolet account The DEG throughout the year is developing online and unlock access to a digital copy from tools with a consistent consumer message to the cloud, which holds it in permanent storage for educate retail partners, inclusive of a compre- instant access on a wide range of viewing devices. hensive educational and marketing campaign, Consumers also can apply UltraViolet technol- in addition to a multimillion-dollar advertising ogy to their existing disc libraries. Walmart, the spend later this year. 4 UltraViolet: Consumers’ Bridge to the Digital Future » www.HomeMediaMagazine.com What Is UltraViolet? ltraViolet is a digital rights authen- players, Internet TVs, tablets and smart- tication and cloud-based licensing phones. Usystem that lets consumers stream UltraViolet doesn’t actually store files. and download purchased content to multi- The rights for purchased content are stored ple platforms and devices. It embodies the in the cloud. UltraViolet coordinates and “buy once, play anywhere” approach that manages the rights for each account, but lets users store digital proof-of-purchases not the content itself. Content actually under one account and then play back that is stored in the cloud by UltraViolet- JUST THE STATS content anywhere, at any time, on any compatible retailers and streaming pro- device, regardless of the original format or viders. By creating a digital-rights locker In the first five months since its launch, point of sale. rather than a digital media storage locker, 1 million households have become UltraViolet is backed by the more than UltraViolet bypasses the cost of storage UltraViolet account holders and users, 70 members of the Digital Entertainment and bandwidth used when the media is ac- even with fewer than 100 titles available Content Ecosystem (DECE) consortium, cessed. In addition, by only managing the from only four studios to date. Research which includes movie studios, retailers, rights and licensing of content, UltraViolet has shown that a significant segment of consumer electronics manufacturers, insulates itself from future technological the population will continue to purchase cable companies, ISPs, network hosting advances, allowing users to keep watching content, especially if the value proposi- vendors, and other Internet systems and content they have purchased. tion of ownership takes advantage of security vendors. Apple’s iTunes is not DECE members developed a Common what the Internet and today’s digital integrated with the UltraViolet platform at File Format for downloads designed to play devices can provide, like cross-platform this time, but Flixster and others support in all UltraViolet players and work with interoperability, while addressing the UltraViolet streaming and downloading all DECE-approved DRM. The format is shortcomings we’ve seen in the earliest on both the iPad and the iPhone, in addi- based on existing standards from MPEG, stages of the digital market. tion to Windows, Mac OS and Android. SMPTE and others, and originally was de- DECE-commissioned research* sug- Consumers create a free UltraViolet ac- rived from the Microsoft Protected Interop- gests that UltraViolet will give consum- count either through a participating Ul- erable File Format specification. Because ers an incentive to choose buying and traViolet service provider and through every downloaded UltraViolet title arrives in owning more often when that they look the UltraViolet website. Six household this format, it will play on any UltraViolet- for movies and “paid for” TV shows to members are allowed per account. An compatible media player app or device. watch at home or on the go. Research UltraViolet account provides access to a There are two profiles for files and play- found that about 60% of consumers digital rights locker where licenses for ers: standard-definition (SD) and high- say they’d be likely to buy more often purchased content are stored and managed definition (HD). An SD player will play because of UltraViolet. Also, interest in regardless of where this content was ini- only SD files. An HD player will play SD UltraViolet is particularly high among tially purchased. Account holders will be and HD files. high-value consumer segments: 18- to able to stream UltraViolet-enabled content Much of the work done by DECE is be- 34-year-olds, Blu-ray Disc users (buyers most places they can connect to the Web. ing adopted by MPEG in updates to the as well as renters), households with kids Consumers also will be able to use up to 12 MPEG-4 container format and as part of and iTunes users. UltraViolet-compatible media player apps the MPEG Dynamic Adaptive Streaming or hardware devices and copy UltraViolet over HTTP (DASH) format. Therefore, *August 2011, with more than 1,570 U.S. download files directly among them. In the Common File Format can be used in respondents addition, consumers have the option to other systems and is expected to become obtain a physical copy (disc or secure flash broadly deployed. memory stick) when they’ve made an initial UltraViolet files are not required to be UltraViolet purchase for instant digital encrypted, but they usually are. The files delivery. are encrypted using AES keys, which are Content also may be streamed over then protected using each of the required broadband services. Up to three streams DRM systems, with the DRM-specific can be simultaneously transmitted. Com- information placed in the header. Both patible devices include set-top boxes as ISO scheme (PSSH/CENC) and IPMP well as Internet-enabled devices such as frameworks are allowed. computers, game consoles, Blu-ray Disc UltraViolet selected five initial DRM www.HomeMediaMagazine.com « UltraViolet: Consumers’ Bridge to the Digital Future 5 ! ULTRAVIOLET DIGITAL LIBRARY Your online library of movies and TV shows that lets you watch how, where and when you want ! MULTIPLE ACCOUNT MEMBERS ! DISC Up to six family or household members can use Included with select Blu-rays and DVDs; disc copy a single UltraViolet library available as an option with digital purchases ! STREAMING ! DOWNLOADS You can watch your UltraViolet titles Get copies for your devices so over the Internet you can watch when there’s no Internet ! MULTIPLE DEVICES Watch on the devices you want with even more choices coming soon technologies, allowing restrictions man- chosen for its compatibility with many wide availability on PCs.