SONY PICTURES ENTERTAINMENTDIGITAL POLICY OVERVIEW

Tim Wright

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

TECHNOLOGY AND DIGITAL POLICY OVERVIEW

Mitch Singer, EVP and Chief Digital Strategy Officer

Christopher Taylor, Director for Technology. Lead for content protectionTechnical reviews.

Spencer Stephens,EVP and Chief Technology Officer

Tim Wright,VP for New Media and Technology.

Lead for content protection on content licensing

worldwide

DIGITAL POLICY TEAM – Sony Pictures Entertainment

Andrew Livingston,Manager, Digital Policy

Digital policy and content protection on European content licensing

• 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

AIMS OF DIGITAL POLICY

• 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

APPROVED DRMS AND STREAM PROTECTION

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

ULTRAVIOLET DRMS AND STREAM PROTECTION METHODS

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• Manufacturer not specified

IP connected Set Top Boxes• Roku; Apple TV; Western Digital, others

Games ConsolesRange granted is by commercial agreementWe believe this is a wide and flexible grant

APPROVED DEVICES FOR IP DELIVERED CONTENT

TYPES OF SERVICES AND THEIR USAGE RULES

Permanent ownershipPermanent access, by streaming and download

SPE has a strategic objective to promote ESTEST gets the best usage rulesUltraViolet is our open standard/ecosystem for EST

WHAT IS IT?

KEY POINTS AND ISSUES

EST

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

EST USAGE RULES (SUMMARY)

Short term film rentalAimed at single person/couple/family – complex sharing is NOT part of VOD

Multi-device offering: available STBs; Tablets; connected TVsNeed to keep a clear gap between VOD and EST usage rules

WHAT IS IT?

KEY POINTS AND ISSUES

VOD

• 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

VOD USAGE RULES (SUMMARY)

Subscription access to films and TVCan be standalone/OTT, or associated with a Pay TV subscription

SPE need measures to stop account sharing (e.g. login gives purchase ability)

WHAT IS IT?

KEY POINTS AND ISSUES

SVOD

Standard is 2 streams (or subscription STBs + 2 stream for Pay TV SVOD) with no download5 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

SVOD USAGE RULES (SUMMARY)

Subscription access to linear channels (by encrypted satellite, terrestrial or cable)With simulcast, catch-up, SVOD and VOD access to linear channel content

Pay providers may want to add more value to subscriptionsSPE is supportive of this, with limits

WHAT IS IT?

KEY POINTS AND ISSUES

PAY TV

For simulcast, catch-up and SVOD combined: Subscription STBs + 2 streams5 registered devices + STBsStreaming only

PAY TV USAGE RULES

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

UPDATE ON POLICY ON HOT AREAS (1)

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

UPDATE ON POLICY ON HOT AREAS (2)

•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

UPDATE ON POLICY ON HOT AREAS (3) - AIRPLAY

Reduced costs of cloud content hosting allow migration from providing PVR in STBs to network-based PVRsBenefits here, but SPE wants to ensure network PVR is reasonable and respects existing business modelsKey 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

NETWORK PVR

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

4K, UHD

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

4K CONTENT PROTECTION

ULTRAVIOLET INTRODUCTION AND UPDATE

I own it. I should be able to watch

when, where, how I want. I’m afraid I’ll

lose this movie sooner or later

I want to share it with my family and

household members

I don’t want to be locked into one

source of content or video apps/

devices

WHY ULTRAVIOLET?

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.

CONSUMER VIEW: UV USAGE MODEL

26

Deployment Mapas of December,

2013

North America Europe

Australia & New Zealand

Launched to consumers

Scheduled for launch

France, Germany, Austria and Switzerland on 9/30

Benelux planned for end-February 2014

Other European territories TBA

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

ULTRAVIOLET STATUS (AS OF NOVEMBER 2013)

Deliver

Make Sell

Play

Content Provider

Retailer

Client Implement

er

License Content for sale with UV Rights

Create UV Rights for Consumer

Play downloaded UV (CFF) files

Legacy Player

LASP Client

DSP(downloa

d enabler)

Play proprietary downloads

Play UV streams from LASP

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(stream enabler)

Behind-the-scenes Roles

to support RetailerAlso:

• 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

(LASP can also be a consumer-facing,

standalone “streaming access”

only service)

B2B VIEW: ULTRAVIOLET “ROLES” (LICENSED BY DECE)

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

POINTS FOR RETAILERS

THANK YOU