Benefits of Cloud-Delivered Content John Griffin Dolby Laboratories November 8, 2018 1

Agenda Benefits of Cloud-Delivered Video Content Dolby’s Role in Online Video Content New Developments in Cloud Entertainment Applications

Benefits of Cloud-Delivered Video Content November 8, 2018 3

Instant, On-demand Accessibility Cloud-delivered streaming & download meet needs of today’s ‘gotta have it now’ consumers.

Convenient Access to Massive Content Library Convenient access to the ‘long tail’ of catalog & niche content. Popularity Content

Search & Discovery Example: VUDU GUI Consumers can search by director, actor, etc.

Recommendations & Information Example: VUDU GUI

Enhance & Complement Physical Media Experience Enhances Blu-ray experience with streaming & downloaded content, such as director’s commentary, exclusive scenes, & other bonus features.

Enhance & Complement Physical Media Experience Market offering cloud-delivered content in conjunction with physical media sales Amazon’s Disc+ On Demand program Walmart & VUDU’s Toy Story 3 promotion (Forthcoming) DECE’s Ultraviolet will enable simpler deployment of combo physical & cloud-delivered media purchases

Integration Path into CE Devices Blu-ray players are an interesting case study Online connectivity & sophisticated media processing originally specified for Blu-ray experience Online service providers, IC providers, & CE OEMs quickly realized Blu-ray technical platform was also ideal for online applications VUDU, Netflix, CinemaNow, etc.

Benefits to CE OEMs Market products as connected digital media players Ex: Leading CEs have been very successful marketing Blu-ray players as online media players Extend a handshake between the consumer & manufacturer Leverage technology already going into core CE products for new applications Example: utilize existing audio & video decoders Already implemented & tested

Dolby’s Role in Online Video Content November 8, 2018 12

Dolby creates technologies that elevate the experience anywhere people find entertainment.

Achieving Convenience & an Authentic HD Experience Consumer want the convenience of online content & an authentic HD experience Cinema, HD broadcast, Blu-ray, etc. feature HD video & surround sound – why not online? Online delivery presented multiple challenges Surround audio solution required that: Scales for cinema content (up to 7.1ch) Works with leading online delivery containers & formats Highly bandwidth efficient Playback compatibility on a wide range of consumer devices Blu-ray players, game consoles, TVs, mobile, etc.

True Multichannel Surround Sound Future-Proof with More Channels Mobile Overview 18/11/8 20時46分 True Multichannel Surround Sound Future-Proof with More Channels Data-Rate Performance Compatibility Proven high-quality solution for new HD delivery ecosystems.  Bluray  HDTV broadcast  Online content Ideal for today’s online and broadcast delivery bandwidth. 5.1-channel Dolby Digital Plus: 256 kbps. 7.1 channels of compelling, cinematic surround sound Compatible with 5.1 and two-channel CE devices. >230M shipped consumer devices (and growing!) Conversion to Dolby Digital for playback on legacy home theatre systems 15 15 15 FORMATFO\Roadshow\Project Format - roadshow 5.14.07 v6.ppt 15 15

Simplified Example of Online Video Delivery Encoding Workflow System “Cloud Computing” Content Delivery Network (CDN) Connected Consumer Devices (May have distinct ‘Profiles’) Source Content Confidential Information

Enabling the Online Ecosystem for Cinematic Audio Extremely bandwidth efficient Integration into online encoding & platform solutions Specifications for online delivery containers (ex: MP4, ASF) Implemented in leading ICs for connected devices Currently shipped in >230M consumer devices Professional Encoding Solutions Delivery Platform Integration CE Device ICs Consumer Devices

Dolby & VUDU VUDU selected Dolby Digital Plus exclusively for delivery of surround content to connected devices VUDU launched service with Dolby Digital Plus in 2008 on its own set-top box VUDU now deployed directly on various connected devices with Dolby Digital Plus from Samsung, Sony, LG, Sharp, Toshiba, Mitsubishi, Sanyo, Vizio and others

Dolby & Netflix Netflix selected Dolby Digital Plus exclusively for delivery of surround content to connected devices Netflix leveraging Dolby Digital Plus efficiency to ensure optimal experience and save bandwidth Netflix can freely utilize existing Dolby Digital Plus decoders on the tens of millions of connected DTVs, Blu-ray players, and PS3s First Dolby Digital Plus content delivered to PlayStation 3 in Oct ‘10 Additional connected devices to follow… "Netflix required an audio solution that could efficiently deliver an outstanding surround sound experience for a wide range of consumer devices. Dolby Digital Plus proved to be the best solution to meet our needs and the needs of our device partners." - Greg Peters, VP, Product Development, Netflix, 10/14/10 Press Release

New Developments November 8, 2018 20

New Developments in Cloud Entertainment Applications Interactive ‘Blu-ray’ like experience for online content Chapters, language & subtitle selection, bonus features, etc. Deployment of DECE’s Ultraviolet Cloud-based game applications a hotbed of innovation OnLive announced for Vizio TVs & Blu-ray players Blu-ray players -> Digital Media Players -> Game Consoles?

Thank You! November 8, 2018 22

Q&A November 8, 2018 23