1. SONY PICTURES ENTERTAINMENT DIGITAL POLICY OVERVIEW
Tim Wright

2. TECHNOLOGY AND DIGITAL POLICY OVERVIEW
Contents • Who is who in SPE Digital Policy • Overall policy aims • SPE policy on DRM and stream protection • SPE Usage rules for VOD, SVOD and EST • Network PVR and other “hot” areas • UltraViolet update

3. DIGITAL POLICY TEAM – Sony Pictures Entertainment
Mitch Singer,
EVP and Chief Digital Strategy Officer
Spencer Stephens,
EVP and Chief Technology Officer
Tim Wright,
VP for New Media and Technology.
Lead for content protection on
content licensing
worldwide
Christopher Taylor,
Director for Technology.
Lead for content protection
Technical reviews.
Andrew Livingston,
Manager, Digital Policy
Digital policy and content protection on
European content licensing

4. • Ensuring consistency of the usage model globally
AIMS OF DIGITAL POLICY
• Ensuring Sony Pictures’ content is adequately protected across all distribution channels
Theatrical
Early window
Home entertainment: (Physical), VOD, EST
Pay TV
SVOD
Basic TV, Free broadcast and AVOD windows
• Ensuring consistency of the usage model globally
• Ensuring SPE licensees have compelling and user friendly services to deliver our films and TV with

5. APPROVED DRMS AND STREAM PROTECTION
• UltraViolet has approved:
5 Approved DRMs for download and streaming of UltraViolet content
9 more Approved Streaming Formats for stream protection
• SPE approve these 14 by default for use in any content license
• Licensees are encouraged to use an UltraViolet DRM where possible
SPE does not mandate this
• Licensees are strongly discouraged from developing their own DRM or content protection system
• “Industry standard and widely used conditional access systems” accepted for Basic TV
• Adobe RTMPE (Real Time Media Protocol, Encrypted) has been broken several times and is NOT approved

6. ULTRAVIOLET DRMS AND STREAM PROTECTION METHODS
UltraViolet approved DRMs
Marlin Broadband
Microsoft Playready
CMLA Open Mobile Alliance (OMA) DRM Version 2
Adobe Flash Access 2.0 (not Adobe’s Flash streaming product)
Widevine Cypher ®
Approved Stream Protection Methods
Cisco PowerKey
Marlin MS3 (Marlin Simple Secure Streaming)
Microsoft Mediarooms
Motorola MediaCipher
Motorola Encryptonite (also known as SecureMedia Encryptonite)
Nagra (Media ACCESS CLK, ELK and PRM-ELK)
NDS Videoguard
Verimatrix VCAS conditional access system and PRM (Persistent Rights Management)
DivX Plus Streaming

7. APPROVED DEVICES FOR IP DELIVERED CONTENT
Personal Computers
Definition includes list of approved operating systems (OS) as we rely on OS security
Mobile Devices
Tablets - also defined via OS
Mobile Phones
IP Connected TVs
Manufacturer not specified
IP Connected Blu-ray Players
IP connected Set Top Boxes
Roku; Apple TV; Western Digital, others
Games Consoles
Range granted is by commercial agreement
We believe this is a wide and flexible grant

8. TYPES OF SERVICES AND THEIR USAGE RULES

9. WHAT IS IT? KEY POINTS AND ISSUES EST
Permanent ownership Permanent access, by streaming and download
KEY POINTS AND ISSUES
SPE has a strategic objective to promote EST
EST gets the best usage rules
UltraViolet is our open standard/ecosystem for EST

10. EST USAGE RULES (SUMMARY)
UltraViolet – defined by the UltraViolet specification and agreements
6 logins per UV account;
download to 12 registered devices
3 streams per account to registered and unregistered devices
Non-UltraViolet EST
5 registered devices
Download to all registered devices
2 streams per account, to registered devices only
Locker : Licensee gets rights to provide streaming and download for at least 2 years after date of sale of title to user

11. WHAT IS IT? KEY POINTS AND ISSUES VOD
Short term film rental Aimed at single person/couple/family – complex sharing is NOT part of VOD
KEY POINTS AND ISSUES
Multi-device offering: available STBs; Tablets; connected TVs
Need to keep a clear gap between VOD and EST usage rules

12. VOD USAGE RULES (SUMMARY)
Single Viewing Device at any one time – VOD is a short term rental and does not include sophisticated sharing
You can view on different devices over the Viewing Period
Streaming only preferred, as its hard to meet the Single Viewing Device requirement when there is download
Viewing on 5 registered devices only
Viewing Period
24 or 48 hour viewing period, once viewing commences
With 30 day retention (so must view within 30 days of the transaction)
End of License Period
User authentication
Viewing requires user login
Login credentials must grant rights to purchase or give access to sensitive details (e.g. credit card details) to discourage unauthorised sharing of login details

13. WHAT IS IT? KEY POINTS AND ISSUES SVOD
Subscription access to films and TV Can be standalone/OTT, or associated with a Pay TV subscription
KEY POINTS AND ISSUES
SPE need measures to stop account sharing (e.g. login gives purchase ability)

14. SVOD USAGE RULES (SUMMARY)
Standard is 2 streams (or subscription STBs + 2 stream for Pay TV SVOD) with no download
5 registered devices (+ subscription STBs)
User authentication and other measure to stop account sharing
User login, login credentials should grant rights to purchase or give access to sensitive details

15. WHAT IS IT? KEY POINTS AND ISSUES PAY TV
Subscription access to linear channels (by encrypted satellite, terrestrial or cable) With simulcast, catch-up, SVOD and VOD access to linear channel content
KEY POINTS AND ISSUES
Pay providers may want to add more value to subscriptions
SPE is supportive of this, with limits

16. PAY TV USAGE RULES
For simulcast, catch-up and SVOD combined: Subscription STBs + 2 streams 5 registered devices + STBs Streaming only

17. UPDATE ON POLICY ON HOT AREAS (1)
HD to “General Purpose Computing Devices”
PC, Tablet and Mobile
Extra precautions needed as devices are open and high capability apps can be downloaded to them
For PCs and iOS: use an UltraViolet approved DRM or streaming method
Mac – content must be confined to integrated screen or only on digital outputs where HDCP is guaranteed
More care needed for Android, where implementations vary
See VOD-EST content protection schedule for full details
SPE focus is on encouraging use of hardware security, but not ruling out existing good work

18. UPDATE ON POLICY ON HOT AREAS (2)
Geofiltering
We have added requirement for proactive response to circumvention providers (known proxies, VPNs)
Geofiltering databases must be updated at least every two weeks
Compliance via technical requirements only – NO pre-approved geofiltering providers
Financial geofiltering – subscribers must be filtered by territory of the bank issuing their credit card

19. UPDATE ON POLICY ON HOT AREAS (3) - AIRPLAY
Airplay Mirroring
iPad screen contents sent directly to Apple TV
Controlled at an iPad level (but can be disabled in each app)
Insecure, must be disabled (iOS7)
Airplay Streaming
iPad sends link to Apple TV, and Apple TV fetches content directly
Controlled within each app
Delivery to Apple TV using approved DRM or streaming method

20. NETWORK PVR
Reduced costs of cloud content hosting allow migration from providing PVR in STBs to network-based PVRs
Benefits here, but SPE wants to ensure network PVR is reasonable and respects existing business models
Key policies:
Recording must be explicit user request, and for individual programs or series link only
Recordings must expire after a number of days, and be limited in the number of hours which can be recorded
Delivery by streaming only
No “recording” of programs that have already been broadcast

21. 4K or “Ultra High Definition” (UHD) has:
4K, UHD
4K or “Ultra High Definition” (UHD) has:
4 times the resolution of HD (3840*2160)
More colours (greater “colour gamut”)
Greater detail in dark areas
SONY makes 4K cameras, projectors, TVs, and 4K films!
The bigger triangle is the 4K colour space, the smaller is for HD

22. 4K CONTENT PROTECTION
We have a 4K content protection schedule which is available on request
Key additional requirements (subset only)
HDCP 2.2 – MUST be version 2.2, which allows us to prevent connection to displays supporting HDCP version 1, which has some vulnerabilities
Hardware security in the device
NO pre-approved content protection systems
Increased security diversity – break of security for one title should not break all titles
Device must go online for revocation and update check before playing, and cannot receive content if a critical update is required

23. UltraViolet introduction and update

24. WHY ULTRAVIOLET?
I want to share it with my family and household members
I own it. I should be able to watch when, where, how I want.
I don’t want to be locked into one source of content or video apps/ devices
I’m afraid I’ll lose this movie sooner or later

25. CONSUMER VIEW: UV USAGE MODEL
Stream most anywhere via web, apps, or set top boxes
1st year (at least) of streaming a given title at no extra charge, from Retailer who sold the title
Up to 3 simultaneous streams per account
Download for use without Internet connection – esp. tablets, PCs, phones
“Interoperable privileges” for downloads already in operation, with fully interoperable download with Common File Format (CFF) and up to 12 registered UV devices per account
Best of physical & digital: Blu-ray or DVD with UltraViolet
Buy a Blu-ray DVD (or alternative physical media) and get an UltraViolet right that comes with it
Or, buy UltraViolet download/streaming rights via a website or app, and have the option to buy a SKU that also includes right to get a single physical (or “discrete”) copy of the title
Share among up to 6 account members.

26. Australia & New Zealand
North America
Europe
Deployment Map
as of December, 2013
France, Germany, Austria and Switzerland on 9/30
Benelux planned for end-February 2014
Other European territories TBA
Australia & New Zealand
Launched to consumers
Scheduled for launch

27. ULTRAVIOLET STATUS (AS OF NOVEMBER 2013)
Available content: 11,455 titles from 7 Hollywood studios and 3 other major content owners; includes over 2,900 TV episodes
Three ways to add UV titles into UV Collection:
UV rights with Blu-ray/DVD…EST…Disc-to-digital (in-store and in-home)
Many ways to watch
Download and stream to Win, Mac OS, iOS, Android, PS3, Xbox 360
Stream to leading brands of Internet TVs and BD players
13 Retailers Live: Additional launches expected in coming months.
Walmart-VUDU, Best Buy-CinemaNow, Target, Barnes & Noble-NOOK, M-GO, Flixster, Kaleidescape, Cineplex (Canada), JB HiFi (Australia), and EzyFlix (Australia)
ParamountMovies.com, SonyPicturesStore.com, and UniversalHiDef.com
Consumer adoption:
Over 14M HH accounts and growing steadily (US household penetration >10%).
Average Rights per Account (ARPA) continuing to grow – now over 4 for rights-holding accounts

28. B2B VIEW: ULTRAVIOLET “ROLES” (LICENSED BY DECE)
Deliver
Play
Make
Sell
DSP
(download enabler)
Client Implementer
Content Provider
Retailer
Play downloaded UV
(CFF) files
LASP
(stream enabler)
LASP Client
Play UV streams from LASP
License Content for sale with UV Rights
Create UV Rights for Consumer
Behind-the-scenes Roles to support Retailer
Legacy Player
Play proprietary downloads
Also:
Access Portal Role for Locker View and/or Account Management subset of what Retailer can do
Partner Developer license for access to specs and development/test environment only
No Client Implementer license needed for a Retailer or LASP to stream or provide legacy downloads – though often done within same product as UV Player
(LASP can also be a consumer-facing, standalone “streaming access” only service)

29. POINTS FOR RETAILERS
UltraViolet is an open and valuable way to enter the EST business, which has the full backing of major content providers and retailers
For operators, it represents an opportunity to grow online ownership and to gain value from physical ownership
By providing redemption of UltraViolet codes bundled with physical purchase
By gaining visibility of user’s physical purchases and viewing habits
Operators are NOT required to provided streaming and download for films they did not sell
Operators can charge for providing streaming and download for films they did not sell – allowing costs to be controlled

30. THANK YOU