Data as of Feb 18, 2013 Accounts & Rights Growth • Users ... Status.pptx.pdf · Philips Electronics North America Corporation PwC Quick Play Media Inc. Recording Industry of America

© 2013 DECE, LLC – DECE CONFIDENTIAL

1

4082840906

4095540970

4098841003

4101841033

4105041061

4107241083

4109441105

4111641127

4113841149

4116041171

4118241193

4120441215

4122641237

4124841259

4127041281

4129241303

41314

0

5000000

10000000

15000000

20000000

25000000Rights Accounts

Daily averages for week ended Feb 18Accts: 33K (12M annualized pace)Rights: 161K (58M annualized pace)Ratio of new rights to new accts so far for Feb = 4.41

Data as of Feb 18, 2013• Accts: 10.59M• Users: 10.79M• Rights: 23.10M• Avg. # of Rights per Account: 2.18

Ecosystem life-to-date

Accounts & Rights Growth


New Accounts & New RightsWeekly results for trailing 12 months

4095

9

4097

3

4098

7

4100

1

4101

5

4102

9

4104

3

4105

7

4107

1

4108

5

4109

9

4111

3

4112

7

4114

1

4115

5

4116

9

4118

3

4119

7

4121

1

4122

5

4123

9

4125

3

4126

7

4128

1

4129

5

4130

9

4132

3

0

500000

1000000

1500000

2000000

Weekly total New Rights Weekly total New Accounts

2

Week ending Monday…

Strong new rights growth – materially higher than week in

prior year excepting 2012 Christmas week

Relatively strong new accounts growth – higher than all other weeks in prior

year except some in Dec/Jan and April 2012 WB/Facebook viral promotional

“bulge”

Daily averages for week ended Feb 18• Accts: 33K (12M annualized pace)• Rights: 161K (58M annualized pace)• Ratio of new rights to new accts so far for Feb =

4.41

2012 2013


Ref-1. Stats Update: New Transaction Volume

3


Jan March May July Sept Nov Jan0

1000

2000

3000

4000

5000

6000

UV New Content Transactions by Month Since Jan 2012 (K)• Jan finished at 4.79M• Feb 1-18 total = 2.93M• Feb projection = 3.6 - 4.4M

2013 Projection = 58M Monthly avg. = 4.83M

2012 total = 14.64M Monthly avg. = 1.22M growth


Ref-2. DECE Members – 79 companies (“approximately 85” counting subsidiaries with distinct market-facing brands that are involved in UV)

4

• Updated: 2/18/2013• New Members since last update in blueMC = Mgt Committee / F=Founder / Ch = provides Working Group Chair

Adobe Systems, Inc.(F)

Advanced Micro Devices (AMD)

Akamai Technologies, Inc.

Arxan Technologies, Inc.

AT&T Services, Inc.

Barnesandnoble.com LLC

BBC Worldwide (incl. 2entertain)

Best Buy Co., Inc. (F)

Blockbuster Inc.

BluFocus Inc.

British Sky Broadcasting Limited

castLabs

Catch Media, Inc.

Cineplex Entertainment L.P.

Cisco Systems, Inc. (F)

Comcast Cable Communications (incl. also NBC Universal) (F, MC)

Cox Communications, Inc.

CSG Media, LLC

Cyberlink Corporation

Deluxe Digital Media Management, Inc.

Deutsche Telekom AG

Digital Rapids Corp.

Dolby Laboratories, Inc. (F, MC)

DTS, Inc. (F)

Elemental Technologies

Empathy Lab, LLC

FilmFlex Movies Limited

Fox Entertainment Group, Inc. (F, MC, CH)

Fraunhofer

IBM Corporation

Intel Corporation (F, MC, CH)

Irdeto Access, Inc.

Kaleidescape, Inc

Kit Digital, Inc

Kudelski SA (Nagravision)

LG Electronics Inc. (F)

Liberty Global, Inc.

Lions Gate Films, Inc.

LodgeNet Interactive Corporation

Lovefilm UK Limited (F)

Marvell International Ltd.

Microsoft Corp.(F, MC)

MobiTV

Motorola Mobility, Inc.

MovieLabs

My Eye Media, LLC

NDS Group Limited

Neustar, Inc. (F, CH)

Nokia Corporation (F)

NVIDIA Corporation

Ooyala

Panasonic Intellectual Property Corporation of America (F, MC)

Paramount Pictures Corporation (F, MC)

Philips Electronics North America Corporation

PwC

Quick Play Media Inc.

Recording Industry of America Inc.

Red Bee Media Limited

Roadshow Films, Pty Ltd

Rogers Communications Partnership

Rovi (incl. Roxionow, DivX) (F)

Saffron Media Group Ltd

Samsung Information Systems America, Inc. (F, MC)

SCA IPLA Holdings, Inc. (incl. Sony, Sony Pictures, Sony DADC, Sony SNEI) (F, MC)

SeaChange

Seagate Technology LLC

Sprint Nextel Corporation

Target Corporation

Technicolor

Tesco Stores Ltd.

Testronic Laboratories Inc.

Toshiba America Information Systems, Inc. (F, MC, CH)

Verance Corporation

Verimatrix, Inc.

VeriSign, Inc. (F)

Verizon Communications, Inc (F, MC)

Walmart/Vudu (F)

Warner Bros. Entertainment, Inc. (F, MC)

Widevine Technologies, Inc.


Ref-3. Licensees as of 2/18/13 (DECE Confidential)

5

• Access Digital

• Barnes & Noble

• Best Buy

• Choose Digital

• Comcast/NBCU

• Flixster (WB)

• Hastings

• HMV

• Kaleidescape

• Milyoni

• Paramount

• Rovi

• Sony Pictures

• VUDU (Walmart)

• 7 others*

Retailer (21)

• Access Digital

• Autonomic Controls

• castLabs

• Comcast/NBCU

• CyberLink

• LG Electronics

• M-GO

• Rovi

• Samsung

• Sony

• Flixster (WB)

• 2 others*

Client Implementer (13)

• Akamai

• All Digital

• Authentec

• castLabs

• CSG

• Deluxe

• Enteractive

• FlixChip

• MediaTek

• Movidone

• MStar

• Neustar

• Regency Media

• Radius 60

• Saffron

• Solekai

• 3 others*

Partner Developer (19)

• Anchor Bay (Starz)

• BBC

• Fox

• Lionsgate

• Comcast/NBCU

• Paramount

• Sony Pictures

• Warner Bros.

• 1 other*

Content Provider (9)

* Unnamed licensees have requested confidentiality, although some are willing to be disclosed upon specific request (as opposed to appearing in lists)

• Access Digital

• Barnes & Noble

• Choose Digital

• Comcast/NBCU

• CSG

• FlixFling

• M-GO

• MobiTV

• Rovi

• Sony Pictures

• VUDU (Walmart)

• Flixster (WB)

• 2 others*

LASP (14)

• Access Digital

• castLabs

• Comcast/NBCU

• CSG

• M-GO

• Rovi

• Flixster (WB)

• 2 others*

DSPs (9)


Primary Benefit to Sony Unlimited

6

UV Eliminates Consumer Switching Costs

Sony’s “My Locker” cloud service is immediately populated with consumer’s movies


Status - Common File Format (CFF)• First Standardized Digital File intended for online delivery

– Significantly reduces cost for UV Retailers

– Eliminates encoding costs for downloaded file

– Same CFF can be used by all UV retailers

– DRM interoperability

– Separates Device/App from service the same way DVD/Blu-ray is not tied to retailer

• Common File Format Proposed Roll-out

– Friends &Family testing starts week of 2/25

– Closed beta testing starts 4/1 with 100+ testers

– CFF Volume Production Start (notice to retailers around 5/1)

– CFF Sunrise 4 months later, on 9/1

• Late Binding

– Allows Audio, Subtitles and interactivity to be downloaded separately from the video file

• Common Streaming Format

– Similar to CFF but intended to create efficiencies for streaming

7


Territories

2011

United States

–Vudu, CinemaNow, Flixster, Nook, M-go, Sony Pictures Store, Universal HD, Paramount Movies

2012

UK

–Fixster, Sony Pictures Store, Universal HD

–Anticipated 3rd Q 2013 Sainsbury's, Dixons, Tesco

Canada

–Cineplex

2013 - 2nd Q

Australia

New Zealand

Ireland

2014 TBD

Japan

China

India

Brazil

8

physical sell-through vs rental

0%10%20%30%40%50%60%70%80%90%

100%

2010 2011 2012

Rental

Sale

Sell-Through as % of category remained stable

Digital sell-through vs vod

0%10%20%30%40%50%60%70%80%90%

100%

2010 2011 2012

VODSaleVV

Sell-Through as % of category +29% growth

Consumers are Unsatisfied buying movies online

Buying ExperienceSelection

Buying from brand you trustAbility to watch on TV

Newest ReleasesPrice

Share w/ familyConfidence you can keep using if HW failure

Confidence you can keep using if switch device brandKeeping track of what you own

Ability to move to non-TV devices

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

Re lative s atis fac tion

Source: UltraViolet Consumer Insights Survey, Oct. 2010; conducted for DECE by AbsolutData Technologies; n = 1,025

Areas of lowest satisfaction are among

those directly addressed by UltraViolet

(on scale of -2=least satisfied and +2=most)

11

Guaranteed File Retrieval

Instant Access

Buying Experience

Increase/Unlimited Storage

Watch on TV

Share with Family

Selection

Watch on All Devices

Keep Track of What You Own

BENEFITS OF THE CLOUD


Instant Access

Buying Experience


Watch on TV

Share with Family

Selection




Instant Access

Buying Experience


Watch on TV

Share with Family

Selection



Documents

Data as of Feb 18, 2013 Accounts & Rights Growth • Users ... Status.pptx.pdf · Philips Electronics North America Corporation PwC Quick Play Media Inc. Recording Industry of America