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FY13 F1 Premium Contents Delivery 2012/09/18 Premium Contents WG.

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Presentation on theme: "FY13 F1 Premium Contents Delivery 2012/09/18 Premium Contents WG."— Presentation transcript:

1 FY13 F1 Premium Contents Delivery 2012/09/18 Premium Contents WG

2 Agenda F1 Schedule F1 Project organization Phase 1 F1 service F1 box/security 4K mastering BD

3 CY12CY13CY14CY15 Event Standard 4KTV products 4K Playback devices Premium Content HEVC 4:2:0 8bit F1 Distribution - Schedule Outline IFA/IBC HDMI 2.0 CES NAB CES NAB IFA CES NAB World Cup Soccer London Olympic Confederations Cup Sochi Olympic - AVC / TV + Set Top Box ”4K Mastering BD with xvYCC” (2K) 4K Native demo ・ 4K decoder on PC 4K YUV 422 30P / WCG 2K ⇒ 4K up-converter HDMI 1.4+ UHDTV HEVC 4:2:2 10bit Normal color gamut 2K ⇒ 4K up-converter HDMI 1.4 ”Phase 0 PC server - AVC / no DRM 4K YUV 444 60P / WCG 2K ⇒ 4K up-converter 4K decoder built-in possibility HDMI 2.x 4K Native distribution - AVC

4 Premium Content Policy Confirm. MTG F1 Project Organization Premium Content WG (Shimazu/Suzuki) Total Picture Quality Strategy WG (Ogura) Technology Project Owner:Hirai Project Manager:Imamura UGC/UX Product Strategy WG (Nagao) Marketing WG (Okuda) Strategy/ Planning Marketing Saito, Nemoto, K. Suzuki, Ishizuka Lynton, House、Schaaff、Nagata F1 Report (Report in GEC) K. Suzuki, Ishizuka, Imamura, Furumi, House,(Schaaff) Saito, Nemoto, Imamura Promotion Leader : Yasebe PMO: Katsumata UGC/UX Product Strategy Policy Confirm. MTG =Consumer P MTG PJ Promotion Leader MTG PMO: Sumimoto -Personal Content -Combination with I-Pro -Combination with Orbis -Creation of New UX -Business model -Technology -Alliance SPE (Cookson) SEL (Molyneux)

5 Role of each party (Premium contents distribution Phase 1) F1 Total Marketing (HW and Service) Joint Promotion of HW and Service and Content Service Execution Decoder Box Solution study Define Format Define Security system Security/Quality requirement Design STB Usage policy Encoder Preparation Secure IF study Security system study Service Infrastructure Total Business Planning For Development, Preparation & Operation Implement Secure IF on TV Requirements Technical study Technology fixing HW preparation Service preparation Business Operation Muramatsu Sonoda Mitsuhashi Yanagihara Spencer HES C. Cookson SNE / DADC C. Cookson Sonoda / Yonemitsu SNE or SEL(DADC) Y. Takahashi SEL (Y. Takahashi) Yasebe Contents Encoding - Tokyo - SPE - SNE - SEL 4K library SPE ColorWorks Define Service model SNE or DADC Encoder Business Planning Other Studios SNE or SEL - DADC

6 SPE to define requirements on security system and picture quality. Tokyo to study security system, I/F security, and decoder box architecture. Tokyo to define distribution format and security system for F1 movie distribution, based on above studies and discussions with SPE. Secure I/F standardization work is also to be conducted. Tokyo to design STB and implement secure I/F on TV. SPE and Tokyo to study encoder solutions and develop or outsource encoder. SPE to build 4K movie library. Clarify business responsibilities between SEL/SNEI to: Define service/distribution system sustainable for 4K distribution (such as pre-download and download model) Develop distribution system (outsource to DADC) Movie distribution execution/operation to customers (outsource to DADC) WW aggregation of non-SPE studios. SPE to help convince other studios. SEL to execute marketing of 4K hardware and service. Tokyo and SEL to work on total business/financial planning and assessment including initial investment. Tokyo to create framework for WW service/distribution. Role of each party (Premium contents distribution Phase 1) Sony Confidential

7 PHASE 1 SERVICE 7

8 How we design service model friendly to user is key for success. Best utilize of pre-DL to local storage and alternative distribution will reduce user frustration of non streaming solution. Average 20-25Mbps AVC encode required in order to keep 4K quality, which shows clear difference from up-conversion. Streaming is not possible. Download depends on real speed of network, but 3~4 times DL is not acceptable for user who is get used to streaming. SNEI says (confidentially) download model is not very popular and 70% of purchasers never return to buy again (HD case) F1 service (distribution) Need to consider Combination of download, pre-download, and off-line media delivery (data disc, memory device) and design service Sell model / transactional rental model (or combination) To make 4K service simple, bundle with UV or VU for other needs, such as second room and mobile use.)

9 Service Model Image 9 Pre Download DL by transaction Off-line media Pre Load On box New title ESTYes (before Release date) -Yes- Catalog title EST-Yes Yes (some) TV series1st episode /next a few Ep. Following episodes Yes1 st episode Early window rentalYes (before Release date) --- Non movie contentsYes Service model needs to be well designed, considering reducing user frustration, pre DL cost, and promotion. In narrow band countries, consider selling fully pre-loaded box or pre-loaded external HDD.

10 F1 service image (Pre-DL/Pre-Load Online) Contents distributor F1 TV internet 4K file 1. Pre-Download / Pre-Load content 5. View content HDD 2. Order content Transaction Server 4K Contents Authentication Server 3. server authentication F1 BOX Online Pre-download / Pre-load 6hours ~ Payment CDN 4. 4K and HD/SD VU (or UV) rights to user’s account *) HD/SD content can be streamed to 2 nd room TVs or mobile devices with VU or UV rights.

11 F1 service image (Physical/Online hybrid) Contents distributor F1 TV internet 4K file 3. Download content 4. View content after download HDD 1.Order content and select media (optional) 3. Ship physical media w/ content 4. Insert media to F1 Box 4K Premium Contents 4K Content s Authentication Server 5. View content after server authentication F1 BOX Online download Physical Delivery 6hours ~ Payment CDN 2. 4K and HD/SD VU (or UV) rights to user’s account media(TBD) USB/NSM(SDcard)/(BDdata) 4K Transaction Server

12 F1 Service Image - Physical/Online hybrid Service model: EST Transactional rental – potentially Early Window Online Network delivery Immediate 4K Download rights. Pre-DL if purchase date < “street date” Automatic rights to HD/SD VU streaming/DL. And/Or UV locker rights for HD/SD (coupon code with physical delivery). Physical Media delivery - Optional User selects media (USB/(BD-data) etc TBD) - Price depends on media: Usage rules: 4K can only be viewed on Box - user & device bind Network authentication required for playback Can backup content to other media – no media bind HD/SD VU/UV can be viewed in second room or mobile devices- user domain 12

13 Maintaining 4K picture quality, need to attract user by showing attractive contents list (not just number of titles) and potential. 4K title list will have only a handful of new release (in case of SPE, only 7 in 2013) and the majority are catalogs, including very old films. 4K camera movie, 65mm film movie, and selected 35mm film movie. F1 service (contents) Launch timing: select new title, selected catalog, and 1 on going TV series. (total 30-40 titles?) Adding other studios and release new titles, hit catalogs, and additional TV series (if accepted well). Release pace to be decided based on total business simulation.

14 F1 service (contents) [Non Real-time Contents Expansion Image] SPEStudio AStudio B, C New (4K shooting/4K scan) 7 (2013) Major Catalog (4K scan) 8 (over 200mil) 19 (100-200mil) TV series 2 on going (5 season 60Ep) 4 season 48Ep) Old Major Catalog (65mm) Old Catalog (65mm/35mm) Non Movie (4K shooting)

15 F1 service (contents) [Non Real-time Contents Expansion Image] SPEStudio AStudio B, C New (4K shooting/4K scan) 7 (2013) Major Catalog (4K scan) 8 (over 200mil) 19 (100-200mil) TV series 2 on going (5 season 60Ep) 4 season 48Ep) Classic Major Catalog (65mm) Classic Catalog (65mm/35mm) Non Movie (4K shooting) Launch target 30 – 40 (movie 15-20, TV 12 and other) 100 by 2014/M incl. additional studio. Launch target 30 – 40 (movie 15-20, TV 12 and other) 100 by 2014/M incl. additional studio. - 2013 launch - 2013~2014 (Phil Molyneux) For CES announcement, requested 50 titles at launch. 100 titles in 2014. (David Bishop) Not positive to include TV series. Would like SPHE to pick movies from the title list that are suitable for 4K audience.

16 Service to continue at lease 5 years. Even in the case, major service be shifted to HEVC coded, prepare AVC file and release at the same timing for this service during the period. Who should be the business owner of this service Be responsible for business, select titles, and make contract with other studios. Must be knowledgeable of content aggregation and capable of manage operations. Business owner for other territories. Recoup scenario to be approved Calculate initial investment and maintenance cost (other than running cost) F1 service (Business) Clarify responsibility between SEL and SNEI (including WW distribution). Rough calculation of initial cost need to be done by Oct/B.

17 [Content Aggregation and Management] Business set up with Studios Distribution agreement (US and outside) Revenue share vs minimum guarantee Title negotiation Content preparation (DADC outsource?) Anti piracy measures for content administration Obtain source material Encode & authoring & encryption Quality Check and approval for release DRM server management Physical media logistics On-line store (PC and TV) management New title information upload, placement, promotion F1 service (Business)

18 F1 service & MSO/Telco joint promo Why Extreme Broadband (> 40Mbps) for 4K? Download 4K file in 4hrs instead of 12hrs for $$/month? Not so attractive given increased MSO/Telco cost Stream 4K file at 25Mbps for $$/month? High MSO/Telco cost for limited number of titles 4K 25Mbps moderate quality (limited VBR for streaming) 18 Limited additional value to user

19 F1 service (Supply chain) 19 Content Provider License content Aggregator Content aggregatio n Business deals Content Authoring/Distributor Encode/Mux(wrap) Asset Prep (metadata, thumbnails,..) Encryption DRM License Server Ingestion Physical media prep/delivery QC Storefront SKU mgmt Retailer User ID manage ment Payment processin g CDN/ Distributi on Center ISP/ Shipping service Box/TV manufact urer End- user DADC? Sony Direct? SEN? Sony Direct? SEN? SNEI? SEL? SNEI? SEL?

20 F1 BOX/SECURITY/SERVER SYSTEM 20

21 Box Scope FY13 F1 Distribution service FY13 F1 Distribution Box Download receiver decoder with 1TB HDD Service launch by Aug/2013 (June/2013 if possible) Region: US, Other territories (TBD) AVC 4K2K 420 24P(avg:25Mbps/peak:50Mbps) decode Media option(TBD) : USB memory/USB HDD/SD Card(NSM)/(BD Data) External storage (TBD): USB HDD Target cost: 150$ (w/o BD drive), Qty:100k 84”FSH (FY12 model) Update Home Projector Update (VPL-VW1000ES) FY15 TV will implement F1 distribution box functions (TBD) 21

22 2013-14 F1 Network delivery (BRAVIA box) 4K TV Display port and HDMI 1.4 modify UI Picture 4K Contents UI用 file URL や Command UI on BRAVIA 4K Premium Contents Uniphier 4K decode Pre DL 4K file DL authorize Decode authorize 4K file Media (TBD) USB/SD card(NSM)/(BDdata)

23 2015- F1 Network delivery (BRAVIA builtin:TBD) 4K TV UI Picture 4K Contents UI用 file 4K Premium Contents 4K file DL authorize Decode authorize 4K file

24 F1-BOXF1-BOX F1 BOX Block Diagram HDMI DDR3 2GB DDR3 2GB NAND Ether Key/FAN Uniphier Pro4 SATA Local Storage HDMI1.4c or DP1.2b HDMI Bridge and/or DP Bridge HDMI Bridge and/or DP Bridge YUV I2S x4 HDMI Tx HDMI Tx x32bit x2 800MHz 4K TV WebApp(Content list) Native (BOX Setting) 4K Contents AV Amp USB HUB Terminal Adopter Terminal Adopter Ether HDMI1.4b Ether Hi Res. Audio 4K Premium Contents

25 F1 Distribution Box Specifications Video Format – H.264 AVC HP@L5.1 Decode Frame rate: 24p YUV 8bit 4:2:0 Bitrate: avg25Mbps/peak50Mbps Audio Format – MPEG4 AAC-LC 48KHz/2ch, 5.1ch – High Resolution Audio(TBD) Container – CFF/MPEG Dash Security(DRM) – Marlin-BB + (TBD) Graphics – Timed Text Interface – G-bit Ether(Wired) – AV Output HDMI1.4c /DP1.2b (w/HDCP2.2) Output – YUV 4:2:2@24P – xvYCC HDMI (Audio Output) for TheaterSystem – Storage 1TB HDD External USB HDD(TBD) – Media Option (TBD) USB memory/USB HDD/SD card(NSM)/(BD data) 25

26 Schedule Outline 1213 89101112123456789 FSM/L TV Set 8/M SCT2 11/M CVT 1/B MVT 3/B 3/22 MP1 Ex-F (TGT) 4/19 Ex-F (original) Distribution System 10/M SpecFix 12/M Test Stream 3/M Test Server 6/B Service Launch F1 Box (HW) 9/E SpecFix 10/M System FIX 11/E G/O 1/M LF ( 手 作 ) 3/B ET ( 型試 ) 4/E EPP ( 量試 ) 5/M 5/E MP Ship (SW) 10/M SpecFix α版α版 β版β版 RCGM 26

27 F1 box Security Uniphier-based – Trusted Execution Environment available (secure boot, DRM process in H/W) – Closed Platform New Segmentation method (MPEG Dash based) with Marlin BB – User Bind – Individualized Encryption – Forensic WM capable – Workable for both Pre-Load to Recordable Media and Net-Download 2012/9/14Sony Confidential27

28 28 Server: to prepare Multiple Segments encrypted with Different Keys to Client: Deliver Segments selected at random with MPD corresponding such Segments Segment moof mdat moof mdat moof mdat 1-1 2-1 n-1 moof mdat moof mdat moof mdat 2-2 2-3 2-4 Video AdaptationSet Representation AdaptationSet Representation MPD(*) for Client Audio Video moof mdat moof mdat moof mdat moof mdat moof mdat moof mdat 1-1n-1 1-1, 2-2, n-1 2-2 Each segments encrypted by different key. also Different watermark(studio choice) can be embedded to support forensic function. (*) MPD: Media Presentation Description including meta data related to url of each segment 2012/9/14 Sony Confidential

29 2012/9/14Sony Confidential29 Content Preparation & Delivery: Content Delivery Server User MPD ID = “02F1” 0 1 2 F Marlin: User Authentication & Key Server User Authentication MPD ID=“02F1” Keys for MPD ID=“02F1” In case of Net-Download (Example): Step 1: Pre-download etc. Step 2: Key acquisition Financial Transaction Step 3: Playback (No transaction necessary) 0 1 2 F 0 1 2 F 0 1 2 F 0 00 2 F 1 Each Segment can be embedded “0” to “F” video watermark Also Each segment is encrypted by different key

30 2012/9/14Sony Confidential30 Content Preparation & Delivery: Content Preparer User Marlin: User Authentication & Key Server User Authentication MPD ID=“02F1” Keys for MPD ID= “02F1” In case of Pre-Load to Recordable Media (Example): Step 1: Media purchase Step 2: Key acquisition & playback Financial Transaction(*) Step 3: Playback (No transaction necessary) (*) Payment during key acquisition may be applicable instead of Pre-Paid 0 1 2 F 0 1 2 F 0 1 2 F 0 1 2 F MPD ID = “02F1” 0 00 2 F 1 Each Segment can be embedded “0” to “F” video watermark Also Each segment is encrypted by different key Or All segments are encrypted by one unique key in media recording timing

31 2012/9/14Sony Confidential31 ItemsSPE RequirementsF1 box securityUnder study Description 1A new approach to securityMarlin BB + Enhanced New Feature (Forensic watermark capable etc.)1 st Phase + NDS ?? 2New compliance & robustness requirements Trusted Execution Environment based on Uniphier security (e.g. Secure Boot, DRM process in H/W) - 3Designed and reviewed by organizations expert in security Combination of Established Technologies- 4Single content protection system Only “Marlin BB + Enhanced New Feature”- 53 rd party device certificationDedicated service for only Sony devices- 6Active monitoring and response Player Integrity Check by Security Code cannot be applicable to UniphierContinue to discuss with Panasonic Under study. e.g. how to combine Marlin and NDS 7Renew security with every download or with every title 7-1: Individualized EncryptionMultiple Segments encrypted with Different Keys- 7-2: Individualized Key Retrieval Key Retrieval from Security Code cannot be applicable to Uniphierunder study. e.g How to best use Obfuscation proposed by NDS 8Hardware protected video pathCannot run snooping applications to retrieve decoded frames due to secure boot.- 9Hardware root of trustTrusted Execution Environment available (e.g. Secure Boot, DRM process in H/W)- 10HDCP 2.1 onlyPlanning to support HDCP2.x- 11Verance watermark detectionWill support Cinavia (Note: AACS flags which need AACS approval ?)- 12Playback license tied to consumer’s Online Account Will be supported by Marlin BB- 13Forensic watermark traceable to consumer’s Online Account Will introduce AACS Sequence Key like approach. Server will prepare several segments which have different watermark and distribute unique combination of segments to user. -

32 F1 service distribution system 32 Auth Gateway Global Reg/CAM (m/l)GRC Marlin DRM Service (MDS) TV Account Management / Commerce Content Navigation DRM HTTP via browser Action Token/ Configuration Token Acquisition protocol Marlin protocol HTTP Download Auth Gateway protocol HTTP via Browser / Kamaji protocol Content Injection Content Encode Content BoxPC/Mobile Download File check Sony online Purchase confirmation token Shop Server ( 4K ) SEN & HES role and function To be developed by DADC Japan Total Distribution operation may be done by DADC. SonyID and account management system. SNEI will provide Green box features. Content Delivery Network (CDN) CDN (SNEI rate)

33 4K MASTERING BD 33

34 4K Mastering BD with wide color gamut (xvColor) Concept of Product Mastering BD from 4K sources (film scanned with more than 4K imager or shot with 4K camera) yields the greatest possible high-def picture quality for all HDTV and it also creates a satisfying 4K experience when up-scaled on a 4KTV. “4K Mastering BD” shall include wide color gamut (xvColor) to provide the best BD picture experience. Request to SPHE Announce title list at CES2013 Create tagline and eye-catching sticker for packaging Worldwide release plan starting April 2013 with 4KTV launch Create promotional clips to be included in Bravia demo discs 4K Mastering xvColor 4K Mastering xvColor 4K Mastering xvYCC 4K Mastering xvYCC

35 4K Mastering BD with wide color gamut (xvYCC) Under study We would like to work with SPE to find out a way to transmit down-conversion parameters of 4K mastering BD title, in order to reproduce the best 4K image when up-scaled on Sony 4KTV Down-conv Up-conv 4K Mastering xvYCC 4K Mastering xvYCC 4K source 4K source Include Down conversion Parameters to BD Utilize Down conversion parameters to maximize reproduction of the original picture when up-scaling 4K Mastering BD with xvYCC Containing down conversion parameters 4K TV

36 EOF 36

37 [Status of broadcasters] Technical side of pay broadcasters are positive for 4K trial, and some broadcaster already committed to 4K. (Sky-D CEO at IBC) Trial shooting from now to 2013. Studying possibility of 4K broadcasting by HEVC from 2014? Pay Satellite operators and sports related channel are positive. Nature program by 4K also is under study. Considerations for F1 service planning

38 SERVICE BACKUP 38

39 4K product positioning Should not short sell 4K - Premium/High/Mid/Mass market? 2013/2014 TV - Premium to High market Premium/High demographic sensitive to quality/UX Mid/mass demographic not so sensitive but not reachable in short term. Quality/UX target 4K native > BD-ROM 40Mbps up-conversion + lossless audio? 4K native > 2K 1.5Mbps-8Mbps up-conversion + lossy audio? 39 Position 4K as Premium/Exclusive Determine 4K native Quality/UX based on target

40 SERVICE MODEL ANALYSIS 40

41 Service model: 4K EST Pros High profit margin New titles from studios Cons Storage management – delete, add storage, migrate to new device… After service – device/storage failure 41

42 Service model: 4K Subscription Pros Fixed revenue/expense (tax) Revenue from catalog titles 40 catalog titles/yr = $$$ generates revenue when bundled, compared to 1 catalog title = approx 0$ Easier SKU management for online store Cons Studio negotiation Need attractive library # of titles Constant content renewal Premium titles - Catalog titles only not good enough Established Netflix/Hulu competition and benchmark (price and UX). e.g. mix few new/original titles w/ large catalog title library(75,000+?) for $7.99/month Low profit margin Blackouts – exclusive windows 42

43 Service model: 4K Transactional Rental (Early Window/VOD) Pros No need for storage management - auto delete. Potential Early Window use case – attractive to studios Cons Low profit margin for Non-Early Window use cases 43

44 Service model: Summary Subscription model not suitable for 4K initial service due to limited title selection & new content. Would be difficult to sustain subscription program. Pursue combination of: EST Transactional rental. 44

45 4K title list analysis (SPE Movies) 1950s-70s (28) 80s (6) 90s (11) 2000-2010 (19) 2011 (3) 2012 (7) 2013 (7) Also include 18 titles not listed in above chart 19 8 29 U$ Mil +18 classics Box office unknown Above $100M Above $200M Below $100M US Box Office of SPE 4K titles Box office source: Box Office Mojo Chart does not include 18 classics of unknown BO numbers Chart does not include TV episodes

46 4K title list analysis (SPE TV episodes) New Television Series User Rating on IMDb Save Me20123.2/10 from 7 users(Comedy) Beth Harper, after an accident, thinks she is channeling God. Masters of Sex2012(Not yet released) (Drama) about the pioneers of the science of human sexuality whose research touched off the sexual revolution. TBD - Future Show #1 (Not yet released) TBD - Future Show #2 (Not yet released) New Television Series - 3rd Party Post Services The Mob Doctor20124.0/10 from 23 users (Drama) A young thoracic surgeon becomes indebted to the South Chicago mafia and is forced to moonlight as a mob doctor, while also working full time at Chicago's most prominent hospital. Made in Jersey2012(Not yet released) (Drama) Centers on a working-class woman who uses her street smarts to compete with her more polished colleagues at a top New York law firm. Current Episodic Television Breaking Bad 2008-2013 (Season 1-5) 9.4/10 from 123,742 users (Crime/Drama/Thiller) Informed he has terminal cancer, an underachieving chemistry genius turned high school teacher uses his expertise to secretly provide for his family by producing the world's highest quality crystal meth. Shot on RED Epic Justified 2010-2012 (Season 1-4) 8.7/10 from 17,570 users (Action/Crime/Drama/Thriller) Old-school U.S. Marshal Raylan Givens is reassigned from Miami to his childhood home in the poor, rural coal-mining towns in Eastern Kentucky.

47 DELIVERY METHOD ANALYSIS 47

48 Delivery method: 4K Pre-DL VOD (satellite) Pros “no DL time” - No user noticeable DL time Established business model for satellite VOD Fixed satellite broadcast bandwidth and cost Fixed DL time Allocate popular titles to satellite bandwidth. Less popular titles to internet delivery Cons No known plans for 2013 48

49 Delivery method: 4K Pre-DL EST (internet) Pros “no DL time” – No user noticeable DL time Cons Only works if order prior to “street date” Need to wait if order after “street date” e.g. Box ships out day before new Pre-DL titles start downloading. Box arrives in 3 days. DL starts after Box arrives. Per DL CDN cost Limits # of Pre-DL titles – need to cover by separate subscription fee Variable DL time Cannot estimate max download time – DL not in time for “street date” ISP cost 49

50 Delivery method: 4K Download EST Pros Can deliver content where: content bitrate > network bandwidth Cons Long download time – Bad UX 70%+ users never return after 1 st purchase (SNEI confidential) Storage management ISP cost 50

51 Delivery method: 4K Streaming (ABR) Pros Instant playback and no buffering interruptions No storage Cons Requires high bandwidth 40Mbps+ for moderate quality 4K streaming at 25Mbps. ISP cost 51

52 Delivery method: 4K Physical Media delivery Pros Huge bandwidth with storage delivery; e.g. BD DL 50GB No storage mgmt. Media is backup. No content re-DL scenario for rental Possible high quality 4K and lossless audio Not limited by network infrastructure. Consistent UX. Cons Inventory control – depends on # of media choices BD/USB memory/SD card/HDD... Storage size variations; e.g. user purchases 10 titles in 1 order. Player cost increase – if BD Drive Operation cost: Media Preparation/Distribution center – need strategic allocation per territory 2015+ TVs not likely to support BD USB memory cost needs to drop to replace BD delivery by 2015 (refer to next page) BD-R data disc user confusion w/ BD-ROM format 52

53 Delivery method: summary Pre-DL VOD satellite not in time for 2013 However most feasible delivery option Customers may migrate to such service whenever it launches Streaming not likely due to high bandwidth requirements Need to improve DL UX Pursue combination of: Pre-DL EST internet DL EST Physical Media Delivery 53

54 4k package tie-in: BD-ROM Pros Adds value to 4K bundle package Cons User may already own BD-ROM Quality/UX comparison If - 2K BD (40Mbps) upconv w/ lossless audio > 4K native (25Mbps) and lossy audio (depends on 4K format). Inventory control – low product movement Box does not play BD-ROM – user confusion 54 Should not bundle BD-ROM


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