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SYNCAOR, YOUR PARTNER FOR

November 4, 2016Contains proprietary and confidential information owned by Synacor, Inc. © / 2016 Synacor, Inc.

BUILDING HIGH QUALITY VIDEO OPERATIONS IN THE CLOUD

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Managed Portals Email/Collaboration Video Platform/Cloud ID Ad Solutions

500M mailboxes globally � 9M Hosted email customers � Operate 50 portals 120M monthly portal visitors � Authentication Reaches 90M Pay TV subscribers

TRUSTED TECHNOLOGY DEVELOPMENT, MULTIPLATFORM SERVICES AND REVENUE PARTNER

ContainsproprietaryandconfidentialinformationownedbySynacor,Inc.©/2016Synacor,Inc.

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WE WORK WITH OUR CUSTOMERS AND PARTNERS TO OPTIMIZE USER ENGAGEMENT AND MONETIZATION

ContainsproprietaryandconfidentialinformationownedbySynacor,Inc.©/2016Synacor,Inc.

Advertising and Content Partners

CommandandSimulationSolutions

Chile

Customers

ADVERTISING

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MEDIA SUPPLY CHAINSSYNACOR

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MEDIA ASSET ENCODING SOLUTIONS

ASSET INGESTMulti-part file delivery or file acceleration services

ANALYZEFrame rate, aspect ratio, video, audio, telecine,

captions, metadata

NORMALIZEPackage to common

Synacor mezzanine format

TRANSCODEMulti-asset mezzanine

input to common Synacor adaptive derivative output

QUALITY CONTROLAutomated video and

audio analysis or human review

PACKAGE & DRMOutput various container formats with various DRM

solutions

ASSETINGEST

ANALYZE

<meta>

<meta>

NORMALIZE

TRANSCODE QUALITY CONTROL

PACKAGEDRM

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MEDIA ASSET ENCODING SOLUTIONS

CDN ORIGINActive or static Origin servers

that can service Public or Private CDN solutions

PUBLIC CDNExternal public facing CDN services that are ideal for OTT solutions

PRIVATE CDNEnterprise specific CDN services that are ideal for

TVE solutions

OBJECT STOREOffers geo-diverse

storage redundancy with high durability

NoSQL DBOffers geo-diverse

database with real time replication

WORKFLOWStateless in design

utilizing NoSQL backend for multisite coordination

CDN ORIGIN PUBLIC CDN PRIVATE CDN

OBJECTSTORE

NoSQLDatabase STATELESS

WORKFLOW

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HIGH AVAILABILITY CLOUD MEDIA ASSET TRANSCODING

OBJECTSTORE

NORMALIZEANALYZE

<meta>

<meta>

TRANSCODE QUALITY CONTROL

PACKAGEDRM

MEDIAINGEST

QUALITY CONTROL

OBJECTSTORE

OBJECTSTORE

OBJECTSTORE

CONTENT PARTNER

MSC - Availability Zone One

OBJECTSTORE

NORMALIZEANALYZE

<meta>

<meta>

TRANSCODE QUALITY CONTROL

PACKAGEDRM

MEDIAINGEST

QUALITY CONTROL

OBJECTSTORE

OBJECTSTORE

OBJECTSTORE

MSC - Availability Zone Two

CDN ORIGIN

PUBLIC CDN

PRIVATE CDN

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HIGH AVAILABILITY CLOUD LIVE ENCODING

OBJECTSTORE

LIVE ENCODE QUALITY CONTROL

PACKAGEDRM

LINEARINGEST

CONTENT PARTNER

MSC - Availability Zone One

MSC - Availability Zone Two

OBJECTSTORE

LIVE ENCODE QUALITY CONTROL

PACKAGEDRM

LINEARINGEST

CDN ORIGIN

PUBLIC CDN

PRIVATE CDN

LOAD BALANCER

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CLOUD MEDIA ASSET TRANSCODING WITH LOCAL LIVE ENCODING

OBJECTSTORE

NORMALIZEANALYZE

<meta>

<meta>

TRANSCODE QUALITY CONTROL

PACKAGEDRM

MEDIAINGEST

QUALITY CONTROL

OBJECTSTORE

OBJECTSTORE

OBJECTSTORE

CONTENT PARTNER

MSC - Cloud Media Asset Transcoding

LINEAR INGEST

CDN ORIGIN

PUBLIC CDN

PRIVATE CDNMSC - On Premise Live Encoding

FILESTORE

LIVE ENCODE QUALITY CONTROL

PACKAGEDRM

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REGION AND ZONE REPLICATION

OBJECTSTORE

Availability Zone One

Availability Zone Two

OBJECTSTORE

LOAD BALANCER

NoSQLDatabase

NoSQLDatabase

MEDIA SUPPLY CHAIN

MEDIA SUPPLY CHAIN

CONTENT PARTNER

DASHBOARDSSTATELESSWORKFLOW

STATELESSWORKFLOW

API

API

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GOOD PRACTICES

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GOOD ENCODING PRACTICES

Native Frame RateRepresenting video in the origination frame rate will improve compression with enhanced viewer experience . You should expect to support 23.98p, 29.97p, 25.0p, 24p, 30p, 48p and 60p formats dynamically.

The workflow should understand requirements to deinterlace if the content is 29.97i, or reverse telecine if the content was 23.98p.

Don’t forget the content might originate as 23.98p but was edited as 29.97i.

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GOOD ENCODING PRACTICES

Native Aspect RatioConsumer devices will respect and respond to the origination aspect ratio. An iPad is 4x3, while an iPhone is 16x9. Common ratios are 4x3, 16x9 and 2.35:1

The workflow needs to understand pillarboxing, letterboxing and windowboxing and react to Active Format Descriptors when available.

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GOOD ENCODING PRACTICES

Adaptive Video LevelsGood adaptive video design will account for various device and environment considerations. • Device manufactures often provide video

specification that are not similar but proven on their video engine.

• To provide a cost effective and solution that can scale, a common encode solution is required.

• Synacor deploys 8 levels for 1080P video and 6 levels for SD video.

• Adding black video to the header and footer of and final asset improves player startup for the end user, but complicates asset timecode.

1080p HQ

1080p

720p

432p

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GOOD ENCODING PRACTICES

Awesome Audio AwarenessAdapt your audio to the target environment. The human ear is more sensitive to change than the eye. Why use lower bitrates when video is dominating? • Use 64K HE-AACv1 in LTE environments.• Use 128K AAC-LC with desktop and Wifi devices. • Use 192K 48Hz AAC-LC with connected home

devices and high fidelity stereo content. • Support surround sound with codecs like Dolby

Digital Plus E-AC-3 and Dolby Digital AC-3.• ITU-R BS.1770 audio loudness standards should

be applied which has changed to -23LUFS gated.

1080p HQ

1080p

720p

432p

384K AC-3 5.1

256K E-AC-3 5.1

192K AAC-LC 48Hz Stereo

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GOOD ENCODING PRACTICES

Captions and SubtitlesCaptions and subtitles are better handled as a separate workflow since modifications of caption source will be required. • Retiming the video, telecine, and adding headers

and footer black video need to be accounted.• Expect to support multiple formats such as SRT,

SCC, DXFP, TTML, WebVTT, SMPTE-2052 and whatever is next.

• It is a good idea to embed EIA-608/708 captions in SEI field at video encode time.

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WHAT I KNOW...

How many B-FramesThe more the better of course. But it comes at an encode and decode price.I know 3 works well and beyond does not add much additional optimization.

Buffer BitrateStart up time and seek time can vary greatly on your bitrate. Many people misinterpret this value to be player side, but in fact is a drain model on the encode side. The closer this value is to your average bitrate will constrain your data delivery rate variance.

How many Reference FramesI recommend 4 and it works well. Beyond that does not add much value and requires additional player memory. Older Quicktimeversion can have problems over 2.

IDR Key Frames (GOP)The industry is saying use between 2 and 4 seconds. I have always used 3 seconds. The IDR frame is a high bitrate penalty, but smaller GOP allows for smaller segments and more accurate trick features.

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COST OF QUALITY

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THE COST CURVE OF VIDEO RESOLUTION

$0.000

$0.020

$0.040

$0.060

$0.080

$0.100

$0.120

$0.140

$0.160

432P 540P 720P 720P 720P 1080P 1080PHQ

AppleTN2224

Synacor

Chart based on $.03/GB CDN delivery cost

55%cost savings compared against Apple encode recommendations for 1080P video delivery

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ENCODING WITH QUALITY

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OBJECTIVE VIDEO MEASUREMENT

PNSR – Peak signal-to-noise ratio. Typically measured against the power of noise on the luma video component. Typically scored between 30 and 50db.

SSIM – Structural similarity index. Typically a perceptions-based measurement against the lumacomponent. Typically scored between 0.700 and 1.000.

Recommended reading: http://compression.ru/index_en.htm

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ENCODING QUALITY – MEZZANINE FORMATS

Source: V210 Lossless – 1.063Gbps, 4:2:2

Codecs:J2K Lossless – 530Mbps, 10-bit, 4:2:2J2K Lossy – 120Mbps, 10-bit, 4:2:2ProRes-HQ – 177Mbps, 10-bit, 4:2:2

114115 – 30 minutes, 23.98fps, high grain

660547 – 60 minutes, 23.98fps, dark

Note: The J2K and ProRes-HQ change in quality performance.

114115 PSNR SSIM

J2K LOSSLESS 100.00 1.000

J2KLOSSY 45.578 0.975

PRORES-HQ 44.674 0.968

660547 PSNR SSIM

J2K LOSSLESS 100.00 1.000

J2KLOSSY 48.786 0.989

PRORES-HQ 49.492 0.992

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ENCODING QUALITY – LOSSLESS VS. PRORES-HQ INPUT

Source: V210 LosslessSource: ProRes-HQ

Codec:AVC Code: 3.4Mbps, 8-bit, 4:2:0

Demonstrates a higher quality source results in an objectively improved picture quality.

114115 PSNR SSIM

V210 38.954 0.907

PRORES-HQ 38.601 0.907

660547 PSNR SSIM

V210 41.843 0.960

PRORES-HQ 41.175 0.959

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ENCODING QUALITY – HEVC VS. AVC CODECS

Source: V210 Lossless

Output was compared against V210 lossless for PNSR and SSIM calculation

Codecs:HEVC Codec: 3.4Mbps avg dual-passAVC Code: 3.4Mbps avg dual-pass

Demonstrates 1080p HEVC at similar bitrate to AVC is an objectively improved picture quality.

114115 PSNR SSIM

HEVC8-bit 39.350 0.910

AVC8-bit 38.954 0.907

660547 PSNR SSIM

HEVC8-bit 41.988 0.961

AVC8-bit 41.843 0.960

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ENCODING QUALITY – HEVC 8-BIT VS. HEVC 10-BIT CODECS

Source: V210 Lossless

Output was compared against V210 lossless for PNSR and SSIM calculation

Codecs:HEVC8 Codec: 3.4Mbps HEVC10 Codec: 3.4Mbps

Demonstrates 1080p HEVC-10 at similar bitrate to HEVC-8 is an objectively improved picture quality.

114115 PSNR SSIM

HEVC8-bit 39.350 0.910

HEVC 10-bit 40.105 0.912

660547 PSNR SSIM

HEVC8-bit 41.988 0.961

HEVC 10-bit 43.375 0.965

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ENCODING QUALITY – ELEMENTAL VS. X264 AT 3.4MBPS

Source: ProRes-HQ

Output was compared against V210 lossless for PNSR and SSIM calculation

Codecs:Elemental AVC Codec: 3.4Mbps, 8-bit, 4:2:0x264 AVC Code: 3.4Mbps, 8-bit, 4:2:0

114115 PSNR SSIM

ELEMENTAL 38.601 0.907

X264 38.813 0.904

660547 PSNR SSIM

ELEMENTAL 41.175 0.959

X264 41.754 0.959

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ENCODING QUALITY – ELEMENTAL VS. X264 AT 5.5MBPS

Source: ProRes-HQ

Output was compared against V210 lossless for PNSR and SSIM calculation

Codecs:Elemental AVC Codec: 5.5Mbps, 8-bit, 4:2:0x264 AVC Code: 5.5Mbps, 8-bit, 4:2:0

114115 PSNR SSIM

ELEMENTAL 39.337 0.911

X264 39.580 0.909

660547 PSNR SSIM

ELEMENTAL 42.520 0.964

X264 42.988 0.964

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QUESTIONS?

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THANK YOU