1. ACCESS 2003 November 11, 2003 Spencer Gusick VP Intellectual Property Counsel Universal Studios If you build it, they will come… Delivery of Content to the Connected Home

2. Abstract Content providers are willing, and perhaps even eager, to enter into deals that will allow their content to be distributed and consumed in new and innovative ways. New business models and expanded consumer choice could be right around the corner, if service providers can understand and embrace the content providers' concerns for security and cooperation.

3. Piracy Threats and Approaches  The threat model of “piracy” is complex  This is Universal’s priority list  Our biggest concern is changing consumer expectations ThreatsApproaches 1 Professional Pirates (Theatrical window to DVD) - Traditional anti-piracy approaches. - Audio watermark detection in future CE and IT devices. 2 Peer to Peer (P2P) redistribution of content (mainly theatrical window, also DVD) - Work to make P2P inconvenient, inconsistent; Legal actions. - Changing consumer expectations (FBI Warnings) - Watermark detection in future CE and IT devices. 3 Casual copy of content that creates loss of revenue (rental DVD to a PVR) - CE/IT agreement on rules - Watermark detection 4 Broadcast PVR library of PPV or Pay TV - CE/IT agreement on rules - Watermark detection 5 Internet redistribution of TV Content- Broadcast Flag and watermark detection

4. The Media Server, The Next Killer App  Functions that would be typical in a Media Server:  HDTV Prepackaged playback  Legacy Media playback (DVD, CD, etc.)  Analog or Digital TV Tuner/Recorder/PVR  VOD system capability  Storage of personal digital media (music, photos, home movies)  Backchannel authorization through broadband connection  5.1 Digital audio output  Audio watermark screening on both record and playback.  New business opportunities such as download sell through, additional rights, prepackaged media limited copying etc.  “One application does it all”

5. Some Issues  Watermark is Essential for Protection of Content through all Windows  Home Networks – Localization and Affinity-Based Relationships  PVRs – What are the Rules?  What will Make a New Format Successful?  Consumer adoption  Content provider support

6. End Thank you.