Technology Development Group Introduction Technology Development Group

Who we are We are a group of technologists dedicated to providing enabling technology to help the divisions be more profitable. We work closely and collaboratively with the dedicated technical people in each division and with those in IT. We are largely focused on production and delivery: how we produce and master content, how and what we deliver to the consumer, and how we protect the assets. Like IT, we are a corporate group: we are division agnostic, as we provide a solution to one division we look for ways it can help others.

Spencer Stephens Chief Technology Officer Scot Barbour VP, Production Technology Tim Wright VP, Worldwide New Media and Technology New Hire VP, Security and Media Technology Andrew Livingston Manager, Digital Policy Yoshikazu Takashima Exec Director Advanced Technology Masaki Nakayama Executive Director, Technology Operations Culver City London

Basics

4k or UHD Ultra High Definition (UHD) is 3840 x 2160 UHD is being called 4k, 4k UHD, Ultra HD 4k, … Digital cinema definition of 4k is 4096 x 2160 SPE’s definition of 4k UHD content Shot and mastered in 4k Not up-scaled from lower resolution It’s the highest quality version of a movie or TV show 4k movies & TV is shot on 35mm film and on new digital cinema cameras like the Sony F65

8’ > 7x SH 26” SD SH

8’ > 3x SH < 7x SH SH 50” HD

8’ > 1.5x SH < 3x SH SH 85” UHD

8k Quiz What’s the ideal viewing distance expressed in for an 8k TV? What size 8k would you want if your sofa is 8’ away from it? 0.75x SH 260”, 1 9 feet wide

Increased spatial resolution isn’t enough Picture specifications for high def are based on CRT TV capabilities With 4k there is an opportunity to improve other picture parameters These new parameters can improve HD too but will need new players. Parameter Comments Larger color space (ITU-R Rec 2020 or XYZ) Colors that cannot be reproduced on a CRT TV High dynamic range (HDR) aka extended dynamic range (XDR) More details in the highlights, darker shadows. Brighter screens for better color display HD is 100 nits, new XDR TVs are 1,000 nits, studio target is 4,000 nits but there are power considerations. 10 or 12 bits color depth 8 bit used in HD can cause “contouring” of the image. (10 vs 12 bits still being debated) Higher frame rates 48 fps or 60 fps for high frame rate movies 100 fps or 120 fps sports broadcast

Increased spatial resolution isn’t enough Picture specifications for high def are based on CRT TV capabilities With 4k there is an opportunity to improve other picture parameters These new parameters can improve HD too but will need new players. Parameter Comments Larger color space (ITU-R Rec 2020 or XYZ) Colors that cannot be reproduced on a CRT TV High dynamic range (HDR) aka extended dynamic range (XDR) More details in the highlights, darker shadows. Brighter screens for better color display HD is 100 nits, new XDR TVs are 1,000 nits, studio target is 4,000 nits but there are power considerations. 10 or 12 bits color depth 8 bit used in HD can cause “contouring” of the image. (10 vs 12 bits still being debated) Higher frame rates 48 fps or 60 fps for high frame rate movies 100 fps or 120 fps sports broadcast

Not all 4k is created equal Sony F65 4096 green pixels 2048 red pixels 2048 blue pixels Red Epic 2560 green pixels 1280 red pixels 1280 blue pixels Sony F55 2048 green pixels 1024 red pixels 1024 blue pixels Arri Alexa 1440 green pixels 720 red pixels 720 blue pixels 8k pixels True 4k output 5.5k pixels 4k output 4k pixels 4k output 2.8k pixels 2.8k output Bayer pattern and CMOS sensors

Acquiring 4k content – features and episodic Camera Type Maximum Resolution Comments In use? 4k? HDR? 35mm Film Scanned at 4k Most features and all episodic that are shot on film Yes 65mm Film Scanned at 6k “Lawrence of Arabia” No 35mm CCD Digital Cinema Cameras 1920x1080 Sony F35, Genesis (2005) Arri Alexa 2880x1620 or 2880×2160 depending on format CMOS RAW or ProRes Yes* Red Epic & Dragon Up to 5.5k & 6k respectively CMOS RAW Sony F55 4096x2160 CMOS RAW or XAVC Sony F65 Normally 4096x2160, 8192x2160 possible CGI effects Typically 2k Resolution is rendering cost issue. Option * These cameras are, in varying degrees, capable of HDR but production decisions may mean footage isn’t HDR

Consumer Services

Delivering 4k to the consumer AVC encoded 4k is 2-3 time larger than HD 4k delivery becomes practical with HEVC (H.265) codec Perhaps 35-40% more efficient Hardware decoders in shipping devices Sony Pictures is requiring significantly stronger content protection for UHD/4k than for HD

Availability of 4k in the consumer market Sony shipped server loaded with 11 4k movies with the 84” 4k TV in late 2012 Sony 4k Video Unlimited service launched 1st September 2013 Preload and download 4k movies and TV shows Second gen 4k player and TVs have Netflix 4k Netflix started 4k streaming SPE content to Sony and Samsung TVs in June 2013 Adaptive streaming means instantaneous resolution may be less than 4k or content is heavily compressed A lot of interest by broadcasters in UHD BSkyB and Sky D are shooting football in UHD and with HDR Korean broadcasters have linear UHD channels. DirecTV will launch using RVU – 4k HEVC decode in TV, not in STB

TV series delivering to Netflix in 4k Blacklist Breaking Bad Masters of Sex House of Cards

Market Deployment Timeline What we expected What’s happening Physical media Download Streaming Linear Sony pre-loaded players Streaming Linear Download Physical media

Enhanced Content Protection

Starting Point No content protection system is impenetrable, but the system has to be hard to crack. You just got hacked, what are you going to do? Rapidly re-secure the content protection Contain the breach to a single title/copy Learn from the Condition Access (CAS) industry for cable, satellite, etc. Security system providers whose reputation is at stake Both a technology and a service Software running in Trusted Execution Environments Rapid proactive and reactive renewability Breach and hacker monitoring What are people trying to hack the system working on?

SPE Requirements for 4k/UHD Content HDCP 2.2 output protection No other digital outputs currently offer appropriate security On line authentication Check for current content protection version Prevent pre-street date piracy Title diversity When one title/copy is compromised, incremental hacking is required to compromise the next title Decode in trusted execution environment (TEE) with hardware protected video path. Forensic watermarking identifying player model/version Content protection technology/implementation from expert companies with appropriate practical experience

SPE Requirements for 4k/UHD Content TV makers have rapidly realized this is a necessity Challenging for linear - use return path through TVs Internet connection HDCP 2.2 output protection No other digital outputs currently offer appropriate security On line authentication Check for current content protection version Prevent pre-street date piracy Title diversity When one title/copy is compromised, incremental hacking is required to compromise the next title Decode in trusted execution environment (TEE) with hardware protected video path. Forensic watermarking identifying player model/version Content protection technology/implementation from expert companies with appropriate practical experience Requirement for off-line playback State of the art in new devices *This not a complete list

Movielabs specifications http://movielabs.com/ngvideo/index.html 9/19/2018