Members-only Overview & Reference November 2011 · 3. Allow consumers to bind their Retail Account with their UltraViolet Account via implementation of API’s 4. Secure rights to

Members-only Overview & Reference November 2011

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© 2011, DECE LLC

Contents

1. Overview & UltraViolet Basics (public information)

• Context on UltraViolet

• What the UltraViolet consumer will see

• Industry view: UltraViolet components and the DECE consortium

2. Members-only Reference Information

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© 2011, DECE LLC

UltraViolet context: digital distribution not working well for highest-value movie & TV show offers

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Promise

Capabilities

Future

REALIZED VALUE – SO FARPOTENTIAL VALUE OF ENTERTAINMENT

Shortcomings for consumers and for industry

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UltraViolet™ Alliance (partial list of 65+)

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Goal: Open Marketplace for Digital

• Cross-platform / DRM inter-op

• Interoperable Rights Locker

• Device registration / domain

• Remote access streaming

• Sharing within a household

• Bundled digital/physical offers

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Retailer Retailer Retailer Retailer

© 2011, DECE LLC

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© 2011, DECE LLC

UltraViolet: A new concept from an alliance of the leading entertainment and tech companies, that will redefine how you collect and watch movies & TV

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LOOK FOR THE LOGOWHERE YOU SHOP

ULTRAVIOLET ACCOUNT

WATCH WHEREVER, WHENEVER

Download

Streaming

Physical Media

© 2011, DECE LLC

Usage Model: Unprecedented Freedom

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Rights Locker

Household (up to 6 Members)

Online Streaming Access(up to 3 simultaneous)

Physical Copy Option

Up to 12 Registered

Apps/Devices for Downloads (offline

viewing or progressive download)

© 2011, DECE LLC

Consumer demand: what we know*

• Today’s Electronic Sell-through offerings have major shortcomings

• Many reasons for dissatisfaction (or non-trial) addressed by UltraViolet Concept

• Consumers indicate they will change behavior for UltraViolet

– Buy from one content Retailer instead of another

– Buy content a higher-proportion of time (vs. rent/subscribe)

– Pay a little more (quant research suggests ~$1-2 vs. same titles without UV)

• Especially high-affinity segments include HH’s with teens/kids, 18-34 year-olds of both genders, Blu-ray buyers and renters, current iTunes video-store users

• Benefits enabled by an alliance of companies are most powerful: choices of where to shop, whose devices to buy…avoiding being “locked in” or “needing to start over”

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* EST observations from multiple sources; all points here derived from UltraViolet consumer survey in Oct, 2010 (1,025 consumers)

© 2011, DECE LLC

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Industry View: ecosystem “building blocks”

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Generous and consistent

“what you get” and “how it works” for consumers

Valuable Usage Model

Open, interoperable shared-cost ecosystem

utility

Web-based Account System Standardizing

how value chain works together –innovation and choice in B2C

and B2B contexts

Open Technical

Specs Identity and value

proposition to be coordinated across content,

retail and device contexts

UltraViolet Logo &

Marketing Legal framework and fee structure for defined Roles

spanning Content,

Distribution & Technology

Licensing Program

UltraViolet: Next generation of a standardized “media product”

© 2011, DECE LLC

UltraViolet™ Ecosystem Roles

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Single Companies may often play multiple

Roles

Client Implementers

DownloadService Providers

Retailers

DECECoordinator

Fulfillment downloads to UV-optimized apps/devices based on interface to Coordinator and issuance of DRM licenses

Customer-facing storefront services sell UltraViolet content

Compliant devices/apps to play downloaded UltraViolet Content

Manages UltraViolet Accounts, Device Domains and Rights Lockers; facilitates cross-service and device compatibility

Locker AccessStreaming Providers

Consumer-facing streaming services sell access service to consumers’ UltraViolet Content (or bundles w/ other bus. models)

Content Providers

License Content into the Ecosystem

© 2011, DECE LLC

What is a “DECE Client Implementer”? (UltraViolet-optimized App or Device)

• Client Implementer – able to do local playback of downloaded UltraViolet files

– Approved DRM: Ability to join “domain” and enforce usage model and copy protection policies

– Ability to play “Common File Format” files

– Compliant with DECE Client Implementer Spec

– Must display logo on either HW or SW interface

• Client Implementer can be a Hardware device or a Software-based App running on a PC, Smartphone or other platform

– Via Apps, it’s anticipated that many in-field devices which consumers already own can be upgraded to become UltraViolet-optimized (e.g. PC’s, game consoles, some smart phones / tablets)

• Consumers can stream to UV-optimized Apps & Devices, but also can stream to many other access points

– E.g. website- or app-based services on consumer electronics, set-top boxes

– Streaming providers need to employ UltraViolet-approved streaming method (relatively broad group of common methods in-market today)

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© 2011, DECE LLC

UltraViolet Common File Format

• One file* accessed by multiple DRM systems

• One file for multiple delivery systems including broadcast/multicast, streaming, progressive download, and stored playback on devices and media.

• One file for multiple screens including mobile phones, portable media players, PCs, game consoles, Internet TVs, and home networks.

• Built on industry standards

– ISO MPEG4, compatible with PIFF

– H.264 and AAC

* One file for each resolution profile to be distributed, e.g. HD, SD, PD

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© 2011, DECE LLC

UltraViolet Deployment Roadmap

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INITIAL INDUSTRY DEPLOYMENT…NOW

INITIAL CONSUMER OFFERS…..MID-2011

Uv-OpTIMIZED APP’S…………LATER 2011

Uv-OPTIMIZED devices………..........2012

PLATFORM FOR ONGOING INNOVATION

© 2011, DECE LLC

Options for Engaging with UltraViolet

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1. License specs, logo usage rights and access to UltraViolet Account System as…– Content Provider– Retailer– Streaming Provider– Download Service Provider (B2B)– Client Implementer (SW-only or HW)

2. Play supporting role for 1+ of these Roles across the value chain (e.g. software/device components, content preparation, CDN, implementation services

Implement a Licensed Role or play another supporting activity for Licensees

• Not required to implement UltraViolet

• Members have…

– “Seat around the table” to steer coming generations of UltraViolet ecosystem design

– Planning visibility into planned milestones

– Collaboration opportunities with other Members

Become a Member of DECE LLC Consortium

© 2011, DECE LLC

Contents



•.Key Policy Info on UltraViolet Offers

•.High-level Deployment timeline

•.Marketing & PR Status

•.UltraViolet Role Summaries

•.DECE Meeting Calendar

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© 2011, DECE LLC

Buy an UltraViolet movie or TV show and…

You get…

• File that can be used on up to 12 currently-registered UltraViolet apps/devices, forever (and shared among them, without need for further download)

• For at least first year after purchase – 3 total downloads and unlimited streaming from the selling Retailer

• Option for UltraViolet SKU that includes physical media right

You may need to pay “service fee” type charges for (or may get free as amenity or bundled right):

• Downloads/streaming beyond the selling Retailer’s 1-year obligation

• Re-downloads and/or streams from other sources (they are not obligated to provide – they have option to do so)

• We believe market forces will work toward the most-valuable and best-for-consumer business models for retailers and service providers “honoring” access rights on content sold by other UltraViolet participants

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© 2011, DECE LLC

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© 2011, DECE LLC

High-level calendar (U.S.) as of Feb, 2011still material “moving pieces” – to be further confirmed within next 6 weeks.

Milestone Date Comments

License Agreements complete Mid-March Mostly done now – advisable to start legal counsel on reviewing them

Specs “Track #1” 1st lic. version (for Retailers, LASPs)

~March 21 Contingent on smooth incorporation of Member comments

U.S. deadline for “Phased Retailer” and other early-Licensee benefits

TBA Current plan-of-record is March 31 – MC reviewing these dates this week

Compliance testing plans – 1st iteration April/May

Specs “Track #2” 1st lic. version (CFF and CFF-related)

~May 1

Coordinator “go-live” after build, test and beta ~June 1 Date to firm up by April 1

“Phased Retailer” offers in-market June-July

DRM Deployment – first targeted “deployment ready”

June 30 Or time of first DRM-ready, if later

Sunrise of CFF and Reg. of UV Client Implementations at Coordinator

Sept. 30 This is targeted soonest-case

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Phases & Dates in blue are for non-DECE-controlled events – expectation-based planning

targets only

DECE Confidential

© 2011, DECE LLC

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© 2011, DECE LLC

Marketing & PR Update as of February, 2011

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B2B Marketing & Engagement Support

• Several iterations of this Public / Members-only info into March – deepen usefulness of for companies contemplating operational participation in UltraViolet

• Also planning to develop FAQ/Wiki based on implementation questions received over time

Consumer Marketing

• UVVU.com – 3 stages

o Minor refinements Feb-March

o April-May upgrade to “how it works”, messaging/copy

o ~June: “UltraViolet is here” operational consumer site (w/ “where to find” etc.)

• Marketing Council

o Refining positioning & messages toward final v1.0 approach

o Beginning work on launch programs, campaign needs planning

Public Relations

• CES announcements of milestones and indications of momentum for 2011 launch – viewed as success

• Currently in relatively “quiet” period (though ongoing stream of media requests)

• Main next waves of proactive visibility (current plans):

o April / NAB timeframe

o First consumer availability mid-yearDECE

Confidential

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UV Role Summaries: Content Provider

CORE ACTIVITIES:

1. License Content to Retailers (Negotiated Bilaterally)

– Rights to sell, stream, and authorize a DSP to fulfill Content it sold (or that another Retailer sold) in the CFF, and issue associated DRM License

– Right to perform discrete-copy (CP options to specify how)

2. License Content to LASPs (streaming providers)

– Right to stream individual titles sold by Retailers

– Negotiated bilaterally, or made available to all LASPs via blanket authorization form

3. Publish Content and Metadata to Ecosystem

– Encode, encrypt, and distribute Content in CFF to Retailers, DSPs (optionally LASPs); provide keys

– Provide metadata to Coordinator (identity, ratings, holdbacks)

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Summary for convenience -- sole definitive source of terms is UltraViolet License

Agreements

DECE Confidential

© 2011, DECE LLC

UV Role Summaries: Retailer

CORE ACTIVITIES:

1. Merchandise and sell UltraViolet Content to consumers (within parental control limits)

2. Allow consumers to access UltraViolet Rights Locker and perform Account management, via implementation of API’s (incl. 1st-time Account creation driven by content purchase)

3. Allow consumers to bind their Retail Account with their UltraViolet Account via implementation of API’s

4. Secure rights to sell and stream UltraViolet Content via bilateral deals with UltraViolet Content Providers

5. Arrange for DRM license issuance and download fulfillment (partner with DSP or act as one)

6. Provide streaming to consumers for UltraViolet Content sold

– Operate aggregation, preparation and streaming (partner with a LASP or act as one directly)

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Agreements

DECE Confidential

© 2011, DECE LLC

UV Role Summaries: LASP

CORE ACTIVITIES:

1. Obtain rights from Content Providers to stream Content

2. Package Content in any format for streaming

3. Protect Content with an approved protection technology and that complies with defined Output Rules for each profile

4. Interoperate with Coordinator to comply with usage limits

5. Allow consumers to link and access Account Management functions, and display UltraViolet Rights Locker

6. Stream purchased Content to authenticated Users (web browser) or authenticated linked account devices (STB)

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Agreements

DECE Confidential

© 2011, DECE LLC

UV Role Summaries: DSP

CORE ACTIVITIES:

1. Obtain CFF Content and Keys from Retailers or directly from Content Providers

2. Download CFF Content to Apps/Devices on behalf of one or more Retailers

3. Issue DRM licenses to Apps/Devices so they can play downloaded CFF Content

– Import Content Keys into DRM License Servers

– Set the values in the DRM License Server, according to DRM Mapping document, to implement DECE Output Control and other policies

4. Interoperate with Retailer to ensure that User has proper rights before licensing

5. Interoperate with Coordinator to obtain Rights, User, and Device information

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Agreements

DECE Confidential

© 2011, DECE LLC

UV Role Summaries: Client Implementer

CORE ACTIVITIES:

1. Create and make available for sale or download UltraViolet Apps/Devices for Consumers that can play UltraViolet Content

2. Display UltraViolet logo in some manner (on hardware or as part of displayed interface)

3. Be able to store and playback UltraViolet Common File Format correctly

4. Support one (or more) of Approved DRMs and comply with output rules (App/Device to be tightly coupled to a DRM client or platform-based DRM in a tamper resistant manner)

5. Allow end-user to:

–Register and un-Register App/Device within Account at the Coordinator (via DRM’s “domain join”)

–Configure ratings enforcement

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Agreements

Updated

DECE Confidential

© 2011, DECE LLC

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© 2011, DECE LLC

DECE 2011 F2F Meeting & Event Schedule

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Full F2F (All Members)

• May 17-19: London TBD

• September 20-22: U.S. TBD

• December 13-15: U.S. TBD

* All-Members part is first 2 days

Other Scheduled UltraViolet Meetings & Events

• March 15: UltraViolet presentation to DLNA (Berlin)

DECE Confidential

Documents

Members-only Overview & Reference November 2011 · 3. Allow consumers to bind their Retail Account with their UltraViolet Account via implementation of API’s 4. Secure rights to