1. F1 Encoding and Content Security Spencer Stephens CTO, Sony Pictures

2. Encoding Phase 0 Image: 60Mbps CBR AVC HP L5.1 3840x2160@23.98 (active picture only)3840x2160@23.98 Color space - rec709 full range 0-255 8bit Audio: 384kbps VBR HE- AACv2 (AAC+ v2) 5.1ch @ 96KHz Phase 1 - EyeIO Image: 26Mbps VBR Max 40Mbps AVC HP L5.1 3840x2160@23.98 (active picture only) 3840x2160@23.98 Color space – YUV full range 0-1023 10bit 4:2:2 Audio: to be determined

3. Phase 0 Security Meets security goals Summary Each copy is individually watermarked using Verimatrix. Pirated copies can be traced back to the consumer Content is encrypted with unique Content Encryption Key (CEK) per title per target server CEK is encrypted with public key of target server Watermark payload, CEK ID and target server ID are associated and logged by SEL NOTE: “Chain of custody” may be used in legal proceedings. No user log-on on server BitLocker full disk encryption All ports locked except for tablet access Tablet bound to server

4. Phase 1 Security SummaryStatus Phase 1 will use HDCP 2.2V. good Marlin Broadband. There is no per-title diversity, hacking one player exposes all content. There is also no per-device diversity, hacking one player exposes all players. Falls short Marlin implementation will be more robust than is required by the Marlin compliance and robustness rules but we have not been able to discuss it so far with Phase 1 engineers because of NDA with Panasonic – discussion will be week of November 12 ? There will not be any third party assessment of the security solutionFalls short F1 box cannot embed individual forensic watermarks AND SNEI unable to embed individual forensic watermarks Falls short

5. Phase 1 Security SummaryStatus SPE is solely responsible for monitoring for security breaches. NOTE: Industry practice is content protection licensing authority monitors for security beaches aided by implementers and content participants Falls short “Revocation” Criteria shall be equal to the criteria Marlin BB defines. (Eligible) Content Provider and (Eligible) Service Provider will have a right to commence “Revocation” process when such criteria is satisfied. NOTE: Goal of Enhanced Content Protection is rapid response to security breaches. This process will be relatively slow. Falls short No decision has been made on how or whether to respond to a security breach. ? F1 box may not be upgradable to better security. F1 box engineers are studying FW update capability to add additional features ? SNEI will not support any features beyond standard Marlin Broadband