4k Theoretical Discussion What content is 4k? “Mastered in 4k” Blu-ray Digital Cinemas Cameras Differentiating 4k from HD

Sony Pictures Confidential 4k Definition 9/22/2018 Sony Pictures Confidential

4k Files Finish in 4k 4k Digital Cinema Downscale to 2k Finish in 2k Sony F65 – shoot in 4k Downscale to 2k Finish in 2k Master in HD Blu-ray “Mastered in 4k” Scan in 4k 2k Digital Cinema Shoot on film Film Scanner Scan in 2k Master in HD Blu-ray Film in Archive 2k Files Finish in 2k 2k Digital Cinema Sony F35 – shoot in HD

Digital Cinema Cameras 9/22/2018 Sony Pictures Confidential

HD and 2k Cameras

4k Cameras

Sony Pictures Confidential 4k or not? F55? 9/22/2018 Sony Pictures Confidential

Sony Pictures Confidential Making 4k better than HD 9/22/2018 Sony Pictures Confidential

Differentiating 4k from HD Higher resolution alone is not enough, 4k has to be differentiated from HD in four ways: Higher resolution Greater bit depth 10-12 bits vs. 8 bits Higher dynamic range Better shadows and highlights Wider color gamut Display more colors A consumer sitting further from the screen than the HD viewing distance cannot discern more detail in 4k than in HD Diagonal Inches HD Viewing Distance Feet 4k Viewing Distance Feet 85 10.4 5.2 65 8.0 4.0 For example, if you sofa is 10’ from the wall then even on an 85” screen you can’t see more detail in 4k than in HD 9/22/2018 Sony Pictures Confidential

Sony Pictures Confidential xvYCC color for 4k and HD 9/22/2018 Sony Pictures Confidential

Sony Pictures Confidential xvYCC Color Background: xvYCC is a color space that supports a gamut larger than the color space of HDTV which is called Rec 709 xvYCC was proposed by Sony and published in January 2006 as an IEC standard xvYCC makes use of code values that are not defined in Rec 709 The Bravia XBR8 supported xvYCC but the feature was removed in later models Blu-ray discs mastered in xvYCC will be watched by many consumers on TVs that do not support xvYCC Blu-ray players will not convert from xvYCC to Rec 709 The way that a Rec 709 TV displays xvYCC code values undefined in Rec 709 is also not defined Care has to be taken when mastering xvYCC content to ensure it looks good when displayed on a Rec 709 TV 9/22/2018 Sony Pictures Confidential

Sony Pictures Confidential Mastering xvYCC QC on xvYCC display BD Master P3 Transform & Color Correction xvYCC Master QC on Rec 709 display Notes: P3 is the color space for digital cinema and all theatrical content is mastered in P3 Rec 709 is the standard color space for HDTV The xvYCC color space is larger than Rec 709 but smaller than P3 Transform Rec 709 Master QC on Rec 709 display iTunes Master 9/22/2018 Sony Pictures Confidential

Tactical Discussion: Creating more 4k content New movies and TV Restorations 9/22/2018 Sony Pictures Confidential

Sony Pictures Confidential Creating New 4k Content Shoot in 4k Finish in 4k Obstacles: Arri Alexa 2k camera is very popular with film makers and TV producers Significantly more data to store and transfer High cost of memory cards for Sony F65 4k camera F65 is not a finished product Red Epic does not look as good as Alexa or F65 Obstacles: Not all post houses can view 4k Not all finishing systems can handle 4k HD TV workflows are established and time critical – finishing in 4k will be incremental Effects in 4k Rendering in 4k will take 4x as long as rendering in 2k Some effects can take 100 hours per frame to render just in 2k Can render in 2k, and up scale to 4k Can render in more than 2k but less than 4k and up scale to 4k 9/22/2018 Sony Pictures Confidential

Sony Pictures Confidential 4k Restorations Can restore anything shot on 35mm or 65/70mm film in 4k Decreasing number of titles shot on film in last 10 years All SPE restorations were scanned in 4k but many were finished in 2k Dirt and scratch fixes done in 2k have to be repeated in 4k Some studios have restored a number of titles in 4k Many 4k restorations done at Colorworks or Warner Bros’ MPI facility Not a large number of titles Further review needed in order to determine which library titles are suitable for 4k restoration 9/22/2018 Sony Pictures Confidential

Content protection for 4k Studios’ Viewpoint HDMI Link DRM 9/22/2018 Sony Pictures Confidential

Content Protection Studios show little interest in releasing 4k to the home Move to 4k in the home is being driven by CE rather than studios Therefore studios can wait for enhanced content protection before releasing 4k premium content For example, they will want HDMI connections protected with HDCP 2.1 for 4k premium content Without adequate protection early adopters of 4k products will be unable to get new 4k premium content Sony needs a solution for 4k products that have been designed without HDCP 2.1. Enhanced content protection discussion is being started up in DECE/Ultraviolet Will cover for 4k, early window HD and 3D content SPE has suggested Sony take the lead in proposing a workable solution that could get early acceptance Otherwise industry negotiations for a new content protection system could take a long time: it took 4 years to create the content protection system for Blu-ray Sony and SPE can investigation existing third party security vendors’ technology Security requirements for broadcast content may be reduced

Sony Pictures Confidential Work in progress 9/22/2018 Sony Pictures Confidential

SPE Point of View Proposal Content Delivery SPE Point of View Proposal 9/22/2018 Sony Pictures Confidential

Broadcast (Over the air, cable, satellite, IPTV) Download (EST) Users Studios Broadcasters Users Premium Content (Content with long term value. E.g. Movies, Episodic TV) Broadcast Content (Content with transitory value. E.g. Live broadcasts, Sports, Reality TV etc.) User Content (Personal content with limited commercial value. E.g. Home videos, uploads to YouTube.) Streaming (Internet, video on demand, etc.) Broadcast (Over the air, cable, satellite, IPTV) Download (EST) Physical media Consumers

Content Delivery Models Electronic Sell Through (EST) Consumer purchases title through an online account Consumer downloads and plays content to any device registered to their online account Examples are Ultraviolet, Amazon, iTunes Streaming Consumer purchases title (ownership or rental) through online account Authorized device connects to streaming provider using online account Examples are Ultraviolet, Amazon, iTunes, Netflix Physical media with digital copy or on-line activation Consumer purchases title on physical media Physical media “proof of purchase” allows to consumer to add to their online account Consumer can plays content Directly from physical media Using either (1) or (2) above Examples are Ultraviolet coupons with Blu-ray discs

Content Delivery Formats Physical media, download and streaming are just different ways to get the content to the consumer Use the same file format for download and physical media Standardized file format such as the Ultraviolet Common File Format (CFF) Streaming with industry standard MPEG-DASH Uses a file format that is similar to CFF Content format not tied to physical media format In Blu-ray content format was driven by the disc format and capabilities of hardware devices of the time

Sony Pictures Confidential Next Steps Resources 9/22/2018 Sony Pictures Confidential