PGA DVD Master Class -...

27.03.04 @ AFIDVD Master Class

PGA DVD Master Class• Introduction and Overview for Today

– Blaine Graboyes and Sven Krong– Schedule

• 9.30 - 12.30 Morning Session - More Technical• 12.30 - 2.00 Lunch - please be back by 1.45• 2.00 - 4.00 Afternoon Session - More Fun and Business

– Use handouts for notepads, but focus on discussion– Save questions until end of session please– Audience Profile; TV, DVD, CD, Web, Client, Vendor

Media Architecture

creative

technical

economic

The Big Picture About DVD

• The creative, technical and business possibilities areonly just becoming understood and exploited

• Installed base may surprise you in both large overallinstalled base, as well as big niche users

• DVD is a very profitable format for digital media• Unique and evolving production / distribution models

can reach specialty markets and big money

DVD Brings New Possibilities• Marketing

– Bowflex & Select Comfort DM, Listerine, Lexus, TiVo• Education and Training

– Classroom, Instructional, How-To, Certification• DVD Games

– Scene It, Trivial Pursuit, Disney Games, InteracTV• New Business Strategies

– NETFLIX, FlexPlay, Niche Rental, New Royalty Splits

Photos > DVD Photo Book

Installed Base Is Impressive

• 63% of U.S households (HH) have a DVD player– Only 3.5% have DVR or TiVO and 25% have Broadband

• 29% installed base of DVD-ROM in use homes• Hispanics have the highest rate at 78.3% installed• NETFLIX projecting 5MM members by 2006• Average sports video watched 20 times in groups of 3

or more 14-29 year olds = 60 viewings for only 1 DVD

DVD Makes $$$$$• Home Video market is growing quickly

– $4.6 billion in 1997 > now $14.3 billion in 2003• DVD/video and rental accounts for 62% of total

domestic income for studios, with as much as 4/5thsestimated to come from DVD sales

• Revitalize catalog titles - Scarface #1 in 2003• Total shipments of DVD units up from 685MM in 2002 to

over 1 billion in 2003, with 33% gain in sales revenue

Unique Distribution & Niche Markets

• In-Store Promotions, In&On Pack Premiums, Gift-with-Purchase, LidRock, Magazine, Newspaper, GasStations, Convenience Stores - EVERYWHERE!

• Recent Examples– Hell Boy promo DVD at Best Buy– Daredevil mini-DVD on-pack at Circuit City– Perfect Date marketing DVD for Fox Intl.

Unique Distribution & Niche Markets• Women

– Control 80% of household expenditures– Buy 50% of all cars and influence 80% of car purchases– DVD installed base in female HH = to national average– Men may earn more, but control only 24% of purchases– Women love games too, just different kinds

• Kids– DVD has an 80% installed base in homes with kids

Introduction to the DVD Format

• Presented by Sven Krong– Features of DVD-Video & the TV experience– Features of DVD-ROM & the PC experience– Explanation of DVD-Video, DVD-ROM and Hybrid

• Samples of DVD-ROM and projects DVD-VIdeo

Features of DVD-Video

• DVD disc provides more storage and faster access• Cinema-like quality; interactive and linear video• High-quality stereo and surround sound• Provides data store and computer functions• Consumer benefits; quality, quantity, price• Drives consumers to want to buy and own media• Global market for DVD-Video hardware and software

DVD-Video Hardware and Software

• Entertainment• Consumer Electronics• Gaming• Business• Education

DVD-Video Not Fully Realized

• Consumer Awareness• Compelling Content (beyond movies)• Connected Media• Original Develop Specific to DVD• Branded Entertainment

IP and DRM

• IP = Intellectual Property• DRM = Digital Rights Management• How will consumers use your DVD?• How will you manage your IP?

Expiration Dates

• How long will DVD remain the market leader?• When will the demand for next generation begin?• When to expect generation hardware and software?• When will removable media become obsolete?

– Maybe never?

• Brad Collar to discuss further at end of Afternoon Session

DVD-Video Content Creators• Producers, Directors, Designers, Programmers

– Understanding the technology– Understanding your market– Implications for production– Implications for the narrative– Opportunities– Resources– Pitfalls / Unknowns

Features of DVD-ROM

• DVD can contain any computer data or files– Video, HTML, Flash, Applications, Databases, PDF, etc.

• Options– DVD-Video - software playback and integration– DVD-ROM - interactive content and data– Hybrid - integration of Video and ROM contents

Video, ROM and Hybrid

HYBRID

DVD-Video

DVD-ROMTV Experience

DVD-ROM For Consumers

• Awareness of experience is limited• DVD-ROM content not driving sales• DVD-ROM capabilities under utilized• IP Rights for Content Creation unclear• Broadband connectivity not high enough• DVD-ROM not making money!!!

The Next Step for DVD-ROM

• Driving awareness– Studios, producers, manufacturers, killer apps

• Exploring new applications and markets– Travel, shopping, VR

• Generating revenue– Sales and marketing

DVD-Video Example

The Last Minute

DVD-ROM Example

Click Media

Glossary of Important Terms

• Included in handout– Courtesy of Bruce Nazarian

• Please note any other terms needing furtherexplanation and feel free to stop and ask

MAJOR SECTION #1

• Overview of the DVD Production Process and Tools– DVD Production Pipeline Overview– The DVD Toolbox

DVD Production Pipeline

1. Pre-Production2. Production, Post and Delivery3. Design for DVD4. Video and Audio Encoding5. Authoring and QC6. Output and Testing7. Manufacturing

Pre-Production• Capturing the vision in the DVD Spec• The MOST IMPORTANT PART OF DVD PRODUTION!

– 90% preparation and 10% execution• Pre-Pro Toolset

– Flowchart Tools - Illustrator, Visio, OmniGraffle– Data Tools - Excel, Word, FileMaker– Communication Tools - Phone, Email, IM, Video Conf

• Proprietary tools for client review / project management

Production and Post

• Same tools and process as broadcast– Final Cut Pro, Avid, After Effects, Flame, etc.

• Choose formats, media and mediums– Film, HD, DV, 16:9, 4X3

• Quality In = Quality Out– DVD does not improve quality of master

• Organized delivery is key to smooth process

Design for DVD• Begin with flowchart and content files• Design Process

– Design Direction and Layouts– Motion Comps and Animation– Production Art - add contents– Reviews, QC and Approvals– Organized Delivery as per Project Specs

• Generally TARGA, TIF, BMP or DBC tape

Video Encoding• Hardware vs. Software

– Hardware = Faster, Better Quality, Expensive, Studio• IO = SDI, Masters = DBC, DV, Beta• Minimum 3 X real time to encode

– Software = Slower, Good Quality, Less Expensive, Portable• IO = DV or data, Masters = DV or files• Generally 8 - 12 X real time to encode

Audio Encoding• Generally Dolby Digital or DTS

– Hardware = Real Time, Best Quality, Studio Environment• IO = AES, analog or data

– Software = Usually not Real Time, Good Quality, Ok usage• IO = data

Authoring• The right tool for each job - what can you afford?

– Scale of Risk vs. Expenses• In-House - consumer and produmer• Out-of-House - professional and proprietary

– Can do powerful development on your desktop– Data IO Key - SCSI still common for DLT, firewire, networks– Choice is available between Macintosh and Windows PC

• Pros and cons pale fore personal issues

Output and Testing• Final review before replication run(s)• Emulation vs. Preview System

– An emulation system testing for usability to complianceof the DVD Specification

– Emulation systems allow you to debug, by reviewing thestructure and programmatic elements

– DVD-R for QC and Review– DLT for Manufaciring

• Check discs come back an are again review to avoid issue

Manufacturing

• Duplication - use of DVD-R for one-off or low volume– Limited to DVD-5 capacity = 4.7GB

• DVD-9 DVD-R coming soon at 8.5GB– Great for pitches and presentations

• Replication - mass production from raw materials– Good for 1000s to millions of discs– For mass distribution, i.e. retail sales, etc.

41COVER IN AFTERNOON SESSION

Short Break

10 minutes

• In-Depth Coverage on DVD A-Z–Pre-Production– Production, Post and Delivery– Design for DVD– Video and Audio Encoding– Authoring– Output and Testing– Manufacturing

Pre-Production• The most important phase of the whole process

– 90% preparation and 10% execution• Begins with signed commitment for project• Capture the vision and idea of the project

– Seems esoteric, is actually just practical– Make sure you aim for and hit THE BAR

• Pre-Production documentation (samples)• Takes days, weeks or months depending on project

Pre-Production Document Samples• RFP/ Proposal / Budget• Schedule and Milestones• Flowchart and Navigation• Content and Data Sets• Team and Gear• Contracts and Legal• Specification and Overview Documents• Marketing One-Sheet

Pre-Production Document Samples• RFP/ Proposal / Budget

– RFP = Request For Proposal– Client request to vendor to provide estimate for work

• Proposal can be as short as an estimate or as long as 100 pages withstoryboards, prototype DVDs, etc.

– Often includes multiple elements or departments• Branding and Creative• Design and Production• Technical Services• Marketing and PR• Manufacturing• Sponsors and Funding

2MM DVD-Replication

Dwarfs Production Budget

Offer All-In Price w/o Production Line Items

Schedules and Milestones• Pre-Production days, weeks or months• Production weeks or months• Design 2 - 12 weeks• Encoding 1 full day for a 2 hour program• EB QC 1 or 2 days• Authoring 1 - 2 weeks• Menu Mux 3 - 5 days• QC 1 or 2 days

ALL ASSET DUE DATE

WORK ORDER

} OFTEN IN PARALLEL

6 to 10 weeksIn an average, perfect world

Flowcharts and Navigation

• Captures the vision and user experience of theproject into a single document that is shared by theentire production team and outlines all key aspects

– a.k.a. Disc Config(uration)• Should clearly document; menu types, style and

configurations, interactivity, button names, etc.– An error in spelling or function in the flowchart can cost

time and money later in the process - REVIEW WELL!

Content and Data Sets• Content file for every menu or screen (text)

– Menu button text– Biographies, Filmographies, Web Info, etc.

• Data Sets are often used for projects that containlarge amounts of repetitive screens, such as Galleriesor Question & Answer screens for DVD games

• Content and Data Sets must be reviewed for 100%accuracy and approved by client before production

Team and Gear• DVD requires a team with diverse skill sets

– Executive Producers– Producers and Directors and Production Crews– Creative Director and Design Production Team– Researchers, Writers, Business Development– Video and Audio Post– Subtitle Creation and QC– Video and Audio Encoding– DVD Authoring and Web / ROM Development– Quality Control– Production, Project and Process Management

Essential Gear

• Computers for design functions• Editorial, video post, DBC decks• Audio mix, music and sound effects• Compositing• 3D and Special Effects• Project Management

Contracts and Legal

• Before any work begins, there must be a signedagreement between client / vendor / partner

• Should outline relevant issues such as Budget,Schedule, Scope of Work, Copyrights, etc.

• Can be done yourself or may require legal help– Michael C. Donaldson’s Clearance & Copyright: Everything

the Independent Filmmaker Needs to Know - the essentialguide to dealing with acquisition, rights and insurance

Contracts and Legal

• Sample of Palm Pictures contract from The LastMinute co-produced by Patrick Anding and me

19 PAGES

OVERVIEW

REQUIREMENTS

WORK FOR HIRE

NAME / LIKENESS

DELIVERABLES

Specifications and Overviews• Sometimes may be contained in previous documents• Specifications = Disc Configuration• May also include:

– Brand Book or Style Guide– Focus Group Testing– Game Play Guidelines– Marketing Documents

Marketing One-Sheets

• Basically back-of-box copy with additionalinformation on project overview and productionstrategy and team members

Disc Configuration

Pre-Production Summary

• The best project will be 90% organization andpreparation and 10% execution

• A well pre-produced plan allows for adaptation,evolution and improvement along the way

• And saves the time and money needed for this alongthe way by considering issues before they happen

• In-Depth Coverage on DVD A-Z– Pre-Production–Production, Post and Delivery– Design for DVD– Video and Audio Encoding– Authoring– Output and Testing– Manufacturing

Production, Post and Delivery

• Basically the same as broadcast production• Get the DVD team involved as soon as possible• Discuss complex issues about formats, interactivity• Quality In = Quality Out

– DVD does not improve video and cannot add fades, cuts• Organized delivery is key to smooth production

– Clip name, Timcode IN and Timecode OUT

Production for DVD Tips

• Encoding and authoring cannot alter your video - whatis on your tape is what we will be on your DVD

– Fades, edits, cuts, supers, etc.• Encoding for DVD is NOT editing, more like CAPTURE• Michael W. Dean’s $30 Film School is the book on no-

budget filmmaking and is a readable primer with tipsfor even the most experienced professional

• In-Depth Coverage on DVD A-Z– Pre-Production– Production, Post and Delivery–Design for DVD– Video and Audio Encoding– Authoring– Output and Testing– Manufacturing

Design For DVD• Broadcast specs with overlay complications• Focus on producing menu/screens and graphics packages for

use in Video Post• What is a DVD Menu? - system for navigating disc and

accessing content– Background Menu Art– Subpicture Overlay– Audio / Music / FSX– Xtions, Intro, Outro, Loop

DVD Menu Structure

Program Chain Editor displaying motion menu

loop point for menu

audio track

subpicture/button track

DVD Menu Structure

BackgroundMenu Art

DVD Menu Structure

BackgroundMenu Art

showingbuttonareas &

navigation

DVD Menu Structure

BackgroundMenu Art

showingall buttonhighlights

Design For DVD - Creative• Basic Menu / Screen Layouts

– Main Menu is most common with options to Play and access otherfeatures and menus

• Common Menu Arrangements– Feature Film, TV, Music, etc.

• Easter Eggs– Hidden content available thru game-like features

• Menu / Screen Types– Still, Motion, Scenes, Gallery, Transitions, etc.

Motion Menu Sample

Main Menu

Scenes

Special Features

Special Features Alternate

Environments

Design For DVD - Technical• Each authoring facility has specific delivery requirements• Typical sizes for DVD menu production

– NTSC and PAL / 4X3 and 16:9• Equipment for production and delivery• Overlays / 8-bits / Highlights

– Complexities hopefull explained• Delivery of art to compression / authoring• Trend, Trips and Tricks• Takes 2 - 8 weeks generally depending on the project

Square vs. Rectangular Pixels

Square

Rectangular720 X 540 720 X 480

Typical Screen Sizes

• NTSC 4X3 - Construct at 720X540, resize to 720X486,crop to 720X480 center for delivery

• NTSC 16:9 - Construct at 960X540, resize to 720X486,crop to 720X480 center for delivery

• PAL 4X3 - Construct at 720X540, resize to 720X576• PAL 16:9 - Construct at 960X540, resize to 720X576

Typical Screen SizesUsing Canvas Size

Crop from 720 X486

To centered 720 X 480

16:9 Widescreen

4X3 Pan&Scan

Equipment for Design• Typically desktop computers (Mac or PC)

– Networked using consumer or proprietary software• Video Editorial is now standard

– Footage delivered on DBC or HD• Sometimes use of post house tools

– Flame, Henry, Combustion, Da Vince, etc.• Software Tools; Photoshop, Illustrator, After Effects, Final

Cut, Avid, 3D, etc.• Audio Delivery; 16-bit, 48KHz PCM files

– 5.1 Surround usually delivered on DA-88

Overlays, 8-bits, Highlights

• The most often misunderstood aspect of DVD design– The subpicture overlays form the visual display of the user

remote / menu cursor action• Very limited graphical display format

– 4 color, no anti-aliasing• 1 color becomes transparent, leaving 3 colors for highlight• Generally use White, Red, Green, Blue• Basic shapes and straight edges are best

Sample of 8-bit Overlay

Overlay 8-bit

showing8-bit art

file inPhotoshop

Overlays, 8-bits, Highlights

• Overlay input file is remapped in authoring– RGB values of input mapped to new RBG in authoring– Allows for 16 levels of transparency

• Three Overlay States– Default base appearance– Select cursor on specific button– Activate displays momentarily after SELECT

Sample of 8-bit Overlay

Via RGB color values and transparency

Buttons On Menu Screen

DVD Menu

showingbutton areas

Buttonsm 8-bit and Background Art

BackgroundMenu Art

showingall buttonhighlights

Delivery Of Art To Authoring

• Each authoring facility has different specificationsfor delivery of assets; check early in production

• Double check all files before delivery to authoring– Changes later cost excess time and money

• Delivery Formats– TARGA, TIF, BMP, DBC, documentation

Trends In DVD Menu Design

• Narrative Storyline• Original, Exclusive Cast Content• Very High Production Value• Random, Custom Menus• Games and Challenges

Tips And Tricks For DVD Design• No overlapping button areas• Overlays flash at end of motion menu loops• Technical specifications for best playback

– Null sound 15 frames at head to ensure audio synch• Not too much text; 50 words, 18+ point• Test design and overlay on NTSC monitors• Consistency across menu sets• Do not include extra channels, layers, alphas, etc.

• In-Depth Coverage on DVD A-Z– Pre-Production– Production, Post and Delivery– Design for DVD–Video and Audio Encoding– Authoring– Output and Testing– Manufacturing

Video and Audio Encoding

• Methodical and time consuming for best outcome– 3+X real time minimum for video encoding

• 2 hour film = 8 hour day for encoding

• Discuss 16:9 and 4X3 issues– Anamorphic and Pan&Scan

• VBR and CBR video encoding methods

Video Encoding Timeline

• 1st Pass = Analysis and Operator Adjustements• 2nd Pass = Encoding / Compression• 3rd Pass = Review, QC and Revisions (if needed)

– 3rd Pass can easily take more than X1 TRT

• Therefore takes one full day for a 2 hour movie

Video And Audio Master Formats

• Video Master Formats– Digital Betacam (DBC), Beta SP, DV, DVCam, data

• Audio Master Formats– Video master, DA-88, DAT, data

16:9 And 4X3 Overview• 16:9 is widescreen video for display on newer 16X9

TVs, often plasma, LCD or projection– Wider than tall in 16 X 9 ratio

• 4X3 is the classic, standard TV display ratio– Can be letterbox or full frame

• Letterbox - bars at top and bottom• Full frame, also Pan&Scan - complete display

– Pan&Scan is showing a 4X3 portion of a larger 16:9 image, oftenshowing just the center portion, though tracking is possible

16:9 and 4X3 TVs

16:9 Widescreen 4X3Classic TV

16:9 And 4X3 Overview• A video master provided in Anamorphic 6:9 format can

be encoded for DVD in a manner that allows the userto choose between aspects ratios upon playback

• A 4X3 master cannot be encoded for 16:9 display– Requires a post house anamorphic conversion

VBR & CBR Encoding• VBR = Variable Bit Rate

– Encode rate / quality varies over the time in relation to thecomplexity of the source material

• Theoretically, bits are saved in easy scenes for use in harder• Provides most efficient use of space vs. quality• Generally takes 2 passes for encoding

• CBR = Constant Bit Rate– Encode rate does not vary over course of program

• Excellent quality if space is not concern (<70mins. DVD-5)• Requires only 1 pass for encoding - faster!

VBR & CBR Encoding

• In-Depth Coverage on DVD A-Z– Pre-Production– Production, Post and Delivery– Design for DVD– Video and Audio Encoding

–Authoring– Output and Testing– Manufacturing

Authoring Basics

• Main Stages of DVD Authoring– Video / Audio Compression– Subtitling– Formatting (Authoring or Programming)

• Pre-Production is the most essential component• Bit budgeting• Advanced authoring topics and concepts

Authoring Tools• Use the right tool for the right job

– Shareware NA NA– Consumer home use 1-10– Prosumer indie, corporate 100s, 1000s– Professional distro, labels 10,000s– Proprietary studios 1,000,000s

• For average project: 3-5 days menus, 1-2 weeks DVD

Consumer Tools• Allows anyone to make a DVD with limited functions• Generally provides compression to MPEG-2• Uses pre-built templates for menus• Output to DVD-R only, no DLT support• Products Include

– Sonic MyDVD and DVDit– Apple iDVD– Ulead DVD Movie Factory

Prosumer Tools• Provide limited access to the DVD Specification via and

Abstraction Layer or Metaphor– PGCs = Stories

• Less a limit in functionality or possibilities, more a limit inexpert control and reliability

• Products Include– Adobe Encore– Apple DVD Studio Pro– Sonic REELDVD– Pinnacle Liquid Edition 5.5

Prosumer Tools

Professional Tools

• Provides full access to the DVD Specification withmore control and reliability

• Sonic Solutions - Mac and Windows products– Scenarist SGI still running some places

• Products Include– Sonic DVD Creator - Mac– Sonic Scenarist - Windows

Proprietary Tools

• Ultimate tools in terms of control and reliability withgreater speed in all aspects, but only available to thestudios and Hollywood vendors

• Use of workgroup environment for high productivity• Products Include

– Toshiba– Panasonic

Pre-Production For Authoring• Production Documentation

– Flowchart, Asset List, Data Sets, Specifications• Bit Budgeting

– DVD holds a finite amount of data• DVD-5 4.7GB 2 hours video• DVD-9 8.5GB 4 hours video• But, compression schemes are variable

– Better Quality = + MB, < TRT– Lower Quality = - MB, > TRT

Bit Budget Sample

Disc SizeTotal Video Run Time

Average Bit Rate for EncodeMaximum Bit Rate For Encode

Bit Rates for Audio TraclsTrack 1 = stereoTrack 2 = surround

Subtitle Tracks

Advanced Authoring Topics• Seamless Branching• 16X9 vs. 4X3• Multi-Angle Video• Random Functions• Dual Layer• User Operations• Copy Protection• Storing and Using Values

Seamless Branching

• Ability to seamlessly (without a noticeable video oraudio glitch) and programmatically (based on certainparameters) switch between different videoelements on the DVD - such as Parental Controls orInteractive Storytelling

Parental Block

16:9 vs. 4X3

• Each VTS can only contain either / or• Menus need to be authored twice

– Subpictures do not scale via TV display

Multi-Angle Video

• Ability to include up to 9 video tracks or angles thatplay in parallel, allowing the user to switch real timebetween different views or content using the ANGLEbutton on the remote control

• All multi-angle tracks must be identical in length• There is a lag between angle switching due to player• Impact on bit budget - each angle X run time

Multi-Angle Video

7 video angles

1 audio track

Random Function(s)

• Random PGC Playback– Designate a PGC (video clips or chapters) to playback in a

random order controlled by the player• Random Values

– Generate a random number to be used programmaticallyby the DVD Author to add random user experience

• User for Games

Random PGC Playback

Dual Layer• SSDL - Single Side, Dual Layer - DVD-9

– Holds 8.5GB or about 4 hours of video– Allows for printing on one side of disc

• DSDL - Dual Side, Dual Layer - DVD-17– Holds 17GB or about 8 hours of video– Does not allow for printing on either side of disc

• All DVD players can play dual layer discs by refocusingbetween data layers during playback

– There can be a minor pause during the layer break

User Operations

• Ability to control what functions are available to theuser via their DVD remote control

• A specific button or control can be locked out duringany part or all of the DVD

• This is to control navigation and user experience,especially in more complex titles or games

User Operations

Copy Protection

• CSS - Copy Scrambling System– Intended to stop PC copying

• Hacking can break CSS

• APS - Macrovision– Intended to stop analog copying

• Can be stripped using Copy Box from Radio Shack

Copy Protection

Storing and Using Values

• This is how all interactivity on DVD is built– 16 GPRM (General Parameter) values

• Each 16 bits (0 or 1) long– It is all about how you use them

• Numerals vs. Bits– Numerals are 1, 2, 3… +, -, X, /– Bits are 0 and 1 binary

Storing and Using Values

Each GPRM can be namedfor reference during authoring

GPRM Functions• Move to another• Swap with another• Add + to / with another• Subtract - from / with another• Multiply X from / with another• Divide / from / with another• Modulo remainder• Random value generator• And binary logic• Or binary logic• X Or binary logic

GPRM Functions

When DO GPRMs Reset• Initial Access• Power ON / OFF• Stop. Stop.• Title Search• Play a Part of Title• Time Play• Menu Call from Stop State• Programatically

This can effectnavigation and

game play

• In-Depth Coverage on DVD A-Z– Pre-Production– Production, Post and Delivery– Design for DVD– Video and Audio Encoding– Authoring–Output and Testing– Manufacturing

What is QC?

• QC or Quality Control is the process of reviewing andtesting your DVD project at varies stages throughoutproduction to ensure the best possible quality

• QC issues cover everything from video and audioquality, to aesthetic concerns, to DVD playbackfunctionality, navigation and compatibility

Output and Testing• Quality Control is essential at EVERY STAGE!• Stages of QC

– Flowchart navigation– Content spelling and grammar– Master(s) quality of provided tapes– Subtitles synch, placement– Video / Audio encoded quality– Menu Mux design and function– Emulation overall functionality– Check Disc compatibility, manufacturing

EB or Video and Audio QC

• EB = Elementary Bit Stream (video, audio, subtitles)• EB or Video / Audio QC

– Focused on synch, no glitches, overall quality• Menu QC

– Verify artwork, buttons and navigation are correct• Logice QC

– Functionality of the overall DVD and Spec compliance

Output and Testing

• QC Philosophy• Functionality vs. Compatibility• 3rd party QC companies• QC of DVD-9

– DVD-9 DVD-R coming soon!• QC takes 1 or 2 days for typical DVD

– Takes 3 - 5 days for Compatibility Testing

QC Philosophy• Allow time and budget for proper QC• QC is support function for everyone to ensure quality• Assume the project is 100% correct and work back• Functionality is the key issue

– Video, Audio, Subtitles, Defaults, Buttons, User Ops– Entails checking hundreds of buttons and combinations

• Aesthetics is second issue– First impressions are made in design, especially seamlessness– Menu Art, Highlights, 4X3 / 16:9,

Functionality vs. Compatibility

• Functionality is about sticking to the DVD Spec anddelivering the desired user experience

• Compatibility is about dealing with incompatibilitiesbetween players due to manufacturer differences

• DVD Specification covers discs not players• Use a 3rd Party Lab for compatibility QC

– Intellikey, Numerique - test across hundreds of players

QC Of DVD-9• Current only three options

– PC-base Emulator - requires advanced hardware and does not allowfor testing on multiple devices, but does allow viewing the entireproject

– Shrinker App - 3rd party shareware recompresses video to fit onto asmaller size media, but is not a qualified authoring tool and couldcreate unkown issues

– Post-Gape - divide the content onto two DVD-Rs, but never able toreview the entire project on one disc

• DVD-9 DVD-R is coming soon!!

MAJOR SECTION #2• In-Depth Coverage on DVD A-Z

– Pre-Production– Production, Post and Delivery– Design for DVD– Video and Audio Encoding– Authoring– Output and Testing–Manufacturing

Manufacturing

• Work with a reliable, registered replicator– Must pay DVD Royalties

• DLT (Digital Linear Tape) is preferred format• Replicator will provide Check Disc

– For compatibility testing• Usually 2 - 5 days for Check Discs, the 7 - 12 days for a

full replication run

Duplication vs. Replication

• Duplication - use of DVD-R for one-off or low volume– Limited to DVD-5 capacity = 4.7GB

• DVD-9 DVD-R coming soon at 8.5GB– Great for pitches and presentations

• Replication - mass production from raw materials– Good for 1000s to millions of discs– For mass distribution, i.e. retail sales, etc.

Duplication vs. Replication

DuplicationHome and Office

ReplicationManufacturing

Manufacturing Stages

1. Disc Art, Insert and Package Design2. Package and Insert Printing3. DVD Replication4. DVD Disc Art Printing5. Assembly6. Shipping

Replication Process• Premastering input media verified• Glass Mastering LBR creates etched master• Electroplating master is plated to create mold(s)• Stamping mold(s) used to stamp data• Metalization aluminum added to reflect light• Lacquering protective layer added• Bonding optically transparent glue• Printing silkscreen or offset on disc

Replication Pricing Guidelines1,000 10,000 1,000,000

• DVD-5 $1.10 $.64 $.55• DVD-9 $2.50 $.95 $.90• Sleeve $.15 $.10 $.07• Assembly & Shrink Wrap $.13 $.13 $.13

ROUGH ESTIMATES, NOT ACTUAL!

Replication Royalties

• Always use a licensed replicator that pays DVDroyalties , as this can open both your company andyour client to potential lawsuits

– Royalties are approximately $.18 per replicated disc

• Beware of super-lowball replication quotes

Months

DaysWeeks

Months

2 - 12

1 Dayfor 2 hr.

for 2 hr.Movie

6 to 10 weeksIn an average, perfect world

Lunch Break

1.5 hours - please be back by 1.45pm

Fun, Samples and $$$$ to follow

Sample DVDs

• The Last Minute unique special features• Sinbad 3D models to DVD-Video• Ice Age DVD-ROM• Living Through photo book• The Confession multi-angle movie• Live…and Alone Music DVD• Algebra’Scool educational

Commercial Sales and Distribution

• License va. Distribution vs. Indie Sales• Exciting new markets are emerging and untapped

– Women, Children Hispanics, Games, Urban, Music• Unique new development and distribution models• What DVD means to a filmmaker

– Sandi DuBowski in Filmmaker, Vol.12#2• Sample financial breakdowns

New Markets, New $$$

• Direct-to-DVD market is $2 billion and growing fast• TV shows and miniseries have been a gold mine• Less money at theatres = big increases in DVD sales• Women on average with everyone else using DVD• Hispanics have higher DVD rate than average in U.S.• HD-DVD coming soon - Brad Collar to discuss

New Markets, New $$$

Warren Lieberfarb mentioned recently “…that moreimportant than capacity (concerning HD-DVD) is wheterthe high-def disc also offers interactive gamelikefunctionality. That’s something that would enticeconsumers to update their DVD libraries (andhardware), especially in the area of children’s…”

DVD Inspires New Business Models

• Gold Circle offers todivvy up 100% of DVDroyalties in exchangefor talent to waive highfees for theatrical

DVD Provides New Distributon Models

Cynthia Rhea, SVP of Marketing, HBO Home Video

DVD is an “overnight sensation”. It’s a “big deal” shecontinues, “because the medium is crossing overfrom logical-sounding places like bookstores to gasstations and convenience stores, selling to impulsebuyers at an attractive margin.”

What DVD Means To Filmmakers• By Sandi DuBowski from Filmmaker, Vol.12#2

– Extending the story– Audience feedback via ROM and Web– As a fundraising tool– As a Master Class– Better Making-Ofs– License shorts and existing films– Explore the DVD as a new Platform– Get educated to produce the best DVD– Have deliverables (assets) prepare as soon as possible– Utilize DVD for press and publicity

International DVD

• What it takes to reach the whole world– PAL and NTSC– Subtitles– Content localization– Video / Audio format conversions– Authoring a second version– Packaging

PAL and NTSC

• DVD still uses PAL and NTSC video standards– Cannot be on same side of DVD

• Can be on opposite sides of DVD-10 or DVD-17

Subtitles

• Subtitles are often included only for Main Program• Common configuration for Europe is EFIGS

– English, French, Italian, German, Spanish• User can preset DVD player to search for preferred

subtitle (and other language settings) if available

Process For International• Decide on which countries and how many versions

– SKU - Stock Keeping Unit - ID for each disc and package• Localize Content

– Menus, Subtitles, Audio, VAM• Video and Audio Format Conversions

– Video via Alchemist Ph.C TX• Audio follows video if on tape

– Audio at qualified house if Surround or separate• Author International Version(s)

– Create new DVD(s), often from scratch due to additions / changes• Packaging Changes (as needed)

Region Coding1. North America2. Europe, Middle East,

South Africa, Japan3. Southeast Asia and

Taiwan4. Central and South

America, Mexico,Australia, New Zealand

5. Russia, Africa6. China7. Airlines and Ships

Region Coding

• Set by Author before output to DLT

DVD Marketing

Presented by Brian Ring

Table of Contents

• DVD Business Overview

• Media Environment

• DVD-based Marketing

Brian L. Ring• President, DVDMarketer LLC & New Biz Dev, Comchoice

DVDMarketer LLC is a market research publisher focused on the use of DVD asmarketing tool. 1st report published Jan 04: four separate research initiatives.www.DVDMarketer.com

Comchoice is a leading DVD production and marketing services company

• Strategy Consulting, Business and Corporate Development, Content Licensing,Marketing Research, Venture Capital, Digital Media

• Psychology BA, UC Berkeley; MBA, U Penn/Wharton

• Strategic Decisions Group; Sony Pictures Entertainment; PricewaterhouseCoopers;Universal Music Group; various startups

28 DVDs sold more than 5MM units in 2003

Source: Digital Entertainment Group

1,200DV

Rapid Growth in DVD-Video Software Shipments

DVD Shipments 98 182 364 685 1,023

1999 2000 2001 2002 2003

CAGR = 79.8%

• Buy rate of 17 DVDs per DVD HH has remained remarkably stable.

• The analogous number for VHS is 6.

DVD players will be in over 2/3rds US HH

Source: Digital Entertainment Group

35.0DV

Rapid Growth in DVD Player Shipments

Player Shipments 3.6 9.9 16.7 25.1 33.7

1999 2000 2001 2002 2003

CAGR = 75.6%

• 17MM DVD players sold in Q4 2003 alone, a 29% period-to-period increase.

• Approximately 37% of DVD HHs have more than one player.

DVD Penetration: The # behind the #s

Source: CENTRIS

Console DVD DVD Rom Expanded

Overall 46% 29% 63%

$75K - $99K 63% 45% 82%

18-24 62% 37% 84%25-34 66% 34% 83%

With Kids 61% 37% 81%

Broadband is coming!• VHS HHs rose by 4MM in 2002 to 97MM

• DVD Recorders will drive new growth

• HD DVD will drive new growth

• PVRs will integrate DVD recorders

• Billions in broadband investment have yielded 21MM HHs. (Memo: 69MM) Consumerproposition is confused: $30/month for 170kbps?

• What about South Korea? South Korea's national backbone consists of 13,670 miles of optical fiber. In 2001 Verizon laid 20,500miles of optical fiber in West Virginia alone. Population density in Seoul is roughly twice that of New York City.

• The Storage Paradox: My buddy’s music collection…

• DVD: simple to understand; simple to use; lots of storage with more coming; small formfactor; cheap to replicate and distribute

Puzzle: Name the company

1-Jan-08 1-Jan-07 1-Jan-06

$272,243 $152,806 $75,912

$148,360 $78,136 $49,907

$123,883 $74,670 $26,005

Gross Margin 46% 49% 34%

Total Revenue

Cost of Revenue

Gross Profit

Puzzle: Name the company• On a busy day, this company distributes 5MM

Gigabytes/day. This represents half of the entirebandwidth capacity of the U.S. Internet

• This company has more than 18,000 movie titles.This represents 6 times the amount of a typicalneighborhood video store.

• Customers of this company rent roughly 97 percentof all of the 18,000 titles in their library.

The Answer

Table of Contents

• DVD-based Marketing

Video Is Critical To National Advertisers

Source: Robert J. Coen, SVP Universal McCann; Does not include a range of other

National Advertiser Budgets: Consumer Media

Video Media SubtotalAll Other Consumer Media

National Advertisers' Budgets (Bs)Projected 2003

Four TV Networks $15.5Spot TV $10.6Cable TV $14.1Syndication TV $3.5Radio $4.4Magazines $11.8Newspapers $7.3

• National, consumer media only. Local not included.• Other media not included: Direct mail; Yellow pages; Internet; Outdoor

Media Facts• Proliferating media channels have fragmented audiences• Video drives commerce: the Barry Diller vision. TV retail

growing at 6.2% CAGR vs. 4.5% for general retail. “Video creates richer experience; Detailed explanation; Highly visual;

Call to action; Entertaining; Credibility from personality”

• Consumers are adopting on-demand media consumptionbehaviors.

• “Digital video production costs are rapidly declining.” Except now it is actually happening.

• TV advertising is facing a direct challenge in DVRs. SAT Question: Napster : Music just like ______ : TV Advertising How many in the room have ______?

AVOD & Branded Entertainment

• 84% agree that consumers will participate in AVOD behavior• 73% agree that branded entertainment and advertainment will

be at least as effective for marketers as a 30-second spot.

• 9. Please rate each of the following statements on ascale from Definitely Disagree to Definitely Agree. n=109

Exhibit Q9 Advertising Agency Survey

0% 20% 40% 60% 80% 100%

Eventually, advertiser-produced content, or “brandedentertainment”, will be at least as effective for marketers as a

30-second spot.

Consumers are willing to watch informative advertisingclips, TV shopping clips, and product demonstration videos

on a voluntary, on-demand basis, if they can control theexperience and the videos are relevant to them.

Definitely Disagree Somewhat Disagree Somewhat Agree Definitely Agree

Source: DVDMarketer LLC

Table of Contents

• DVD-Based Marketing

Companies Interested In DVD• 11. How interested are you, if at all, in each of the

following integrated marketing opportunities that a DVD-based marketing campaign can provide? n=94

Exhibit Q11 Advertising Agency Survey

Top 2 Box66%

Top 2 Box69%

Top 2 Box73%

Top 2 Box77%

0% 20% 40% 60% 80% 100%

The ability to distribute advertiser-producedgames, including enhanced DVD, PC, and console

games, on a marketing-driven DVD.

The ability to distribute full-screen video content,including advertainment, on a user-friendly

platform with a huge installed-base.

The ability to distribute product demonstration shopping and informational videos in an on-

demand "product catalog" on DVD.

The ability to exclusively sponsor a TV-styleprogram on the DVD so that messages, ad spots,

and/or overlay graphics are placed without clutter

The ability to control the entire DVD campaignincluding programming, messaging, and

distribution tactics.

Somewhat interested Very interestedSource: DVDMarketer LLC

Sponsored Content Examples• BMW: BMW Films “The Hire”

Bundled with Vanity Fair; 750K

• Sony Pictures: Hellboy Preview Free at Best Buy counter tops; 500K

• CBS: Sneak Peak for Fall Lineup Blockbusters and Entertainment Weekly magazine; 3MM

• TiVo: 20-minute Celebrity driven infomercial Participating retailers; 500K

• General Mills: Columbia Tristar content Cereal boxes; 8MM

• Mountain Dew: And1 Streetball DVD Series, Urbanworks Traditional distribution/sales model

Source: DVDMarketer LLC

Charts, Data and Resources

• Comchoice Installed Base and U.S. HH Data• DVD Demystified by Jim Taylor• DVDSP2 Complete Guide by Bruce Nazarian

The Future of DVD

Presented by Brad Collar

Outlook onHD-DVD Technology

Brad CollarDirector, Digital Distribution Technology

Warner Bros. Technical Operations

March 27th, 2004

Agenda

• Wish-List for HD-DVD• HD-DVD Format Concept• Two Camps

– Blu-ray– DVD Forum

• Audio/Video Codec Candidates• Timing of HD-DVD

Wish-List for HD-DVD• A single format

– Playable on both CE and PC products

• Sufficient viewing time– Enough capacity on a single disc to accommodate feature length theatrical

motion pictures and associated bonus material– Multiple options to allow cost effective disc manufacturing over a wide range of

total viewing times

Wish-List for HD-DVD

• Superior picture quality– Support for image resolutions up to 1920x1080– Capable of a quality superior to other sources of consumer high definition

content– Multiple aspect ratios– Playback device able to output multiple TV standards from a single source on a

Wish-List for HD-DVD• Player compatibility with legacy standard DVD video and DVD

audio discs

• Renewable copy protection– Based on published cryptographic algorithms and revocable

devices– Optional watermark– No unprotected outputs

Wish-List for HD-DVD• Advanced authoring features

– Capability to support SD and HD content on the same disc– Multiple languages for soundtracks, menus, and sub-titles– Multi-channel lossy and lossless audio compression formats– Seamless video/network/ROM integration– Support for streaming audio, sub-titles, or metadata over a network connection– Capability to mix disc-based and network based audio streams– Multi-story and multi-angle support with few restrictions on content– Graphics capability which supports vector animation, fonts, and screen savers– Persistent storage capable of storing game scores, etc.

Wish-List for HD-DVD• Effective enforcement of compliance for playback device,

content, and physical media– More widely available content authoring and verification tools

• Robust and secure region playback control

Wish-List for HD-DVD• Mandatory player connectivity to the Internet

– Publisher’s option for advanced interactivity with internet-basedcontent, as well as disc-based content

– User experience should be controlled by content when disc isloaded

• Mandatory player support for network controlled playbackoptions

– Network-based authorization for copy(s)– Network-based authorization of disc bonus features

How Critical is Network Connectivity?

• To provide consumers a clear and compelling step-up fromtoday’s DVD: Connectable players support key features, e.g.deliver new content, extended usage rules and e-commerce.

• To provide consumers the ability to integrate HD-DVDproducts into a home network.

• The step-up experience should be consistent in CE and PCenvironments, i.e. not 10 ft. versus 2 ft. experiences.

• Without mandatory connectivity capability, a baselineapproach will attract baseline discs and excite fewer sales.

HD-DVD Video Player

Internet Connection

SD-DVD Video Player

HD Copy Protection

HD Video 2.0 (includes SD content and addresses Wish List)

Blue(single layer)

Blue(dual layer)DVD5 DVD9

SD Video 1.0

HD-DVD Format Concept

(eDVD option)

HD-DVD Format Concept

DVD-9 HD/DVD-9

Blue (single layer)

Blue (dual layer)

SD Movie

SD Movie+bonus material HD Movie

HD Movie+bonus material

Current SD-DVD Future HD-DVD

What is WBWhat is WB’’s vision for HD-DVD?s vision for HD-DVD?

Current DVD Player

HD-DVD Player

InternetInternet

Home Network

Current DVDCurrent DVD HD-DVDHD-DVD

SD TVSD TV HD TVHD TV

Two Camps• Blu-ray Disc Founders

– Operating outside DVD Forum– Closed consortium, but engaging studios for input

• DVD Forum– Physical format proposed by Toshiba and NEC (AOD = Advanced Optical Disc), now

known as HD-DVD– Application currently under development

• Warner Bros engaged in both efforts

•• Technology FeaturesTechnology Features–– 0.1mm thickness cover layer0.1mm thickness cover layer–– 1.1mm thickness substrate1.1mm thickness substrate–– 0.85 NA objective lens0.85 NA objective lens

•• Capacity for Pre-recorded MediaCapacity for Pre-recorded Media–– 25GB single layer25GB single layer–– 50GB dual layer50GB dual layer

Blu-ray Disc Founders Proposal

0.4mm separation

0.85NA lens

0.1mm Dual Layer option

1.1mm substrate thickness

Λ=405nmBlue Laser

Cartridge required

DVD Forum Proposal (HD-DVD)

0.65NA Lens

0.6mm Dual Layer option

Λ=405nm

1mm separation

0.6mm substrate thickness

Blue Laser

•• Technology FeaturesTechnology Features–– 0.6mm thickness cover layer0.6mm thickness cover layer–– 0.6mm thickness substrate0.6mm thickness substrate–– 0.65 NA objective lens0.65 NA objective lens

•• Capacity for Pre-recorded MediaCapacity for Pre-recorded Media–– 15 GB single layer15 GB single layer–– 30 GB dual layer30 GB dual layer

Selecting a Physical Media• Blu-ray

– Larger data capacity than HD-DVD– Currently using only MPEG-2 in application layer, which will fit roughly 140 minutes on

a single layer, 25GB disc– Reduction of cover layer to 0.1mm makes discs more susceptible to damage

compared to HD-DVD

• HD-DVD– DVD Forum to select advanced compression scheme to enable longer playing time on

15GB and 30GB discs• Example: 12 Mbps average data rate (audio/video/subtitles) yields run-time of 166

minutes on single layer, 15GB disc– Keeping current 0.6mm cover layer

• Studios still evaluating which physical format is most cost effective

Video Compression Codec Candidates• MPEG-2

– Standardized in 1994– Used in current DVD (needed for legacy support)

• AVC (a.k.a. MPEG-4 Part 10, H.264)– Same quality at 40-50% of MPEG-2 bitrate– Standardized in ISO/ITU in December, 2003– Licensing terms still being worked out

• Microsoft Windows Media 9– Same quality at 40-50% of MPEG-2 bitrate– Standardizing in SMPTE as VC-9– Some companies claim Microsoft doesn’t own all of the intellectual property

in VC-9

Audio Compression Codec Candidates• Dolby Digital – used in current DVD• DTS – used in current DVD• Dolby Digital Plus (DD+)

– Allows for higher/lower data rates– 32 kbps – 3 Mbps

• DTS++– Allows for higher/lower data rates– 64 kbps – 3 Mbps

• HE AAC– More efficient than DD+ or DTS++– No support in legacy A/V receivers

• MLP (Meridian Lossless Packing)– Currently used for DVD Audio– Only lossless candidate

The Two Camps and the Codecs

• Blu-ray– MPEG-2 for video compression– Dolby Digital audio codec as mandatory– DTS audio codec as optional– Basically, same as today’s DVD

• DVD Forum– Feb, 2004: Provisionally adopted MPEG-2, AVC, and WM-9 for

video compression– Mandate for at least one lossless and at least one lossy audio

codec– Most likely will choose DD+ and MLP

Timing of HD-DVD• Blu-ray HD-DVD recorders already being sold in Japan• HD-DVD Launch Criteria

– Technology readiness• Copy protection is the gating factor

– Number of HDTVs deployed with copy protected inputs– Market factors

• Best Guess on studio launch – 2006

QUESTIONS and ANSWERS

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