4K CONTENT PLAN Sony Pictures Technologies

The 4k Consumer Value 4k has to offer all of these features: – Higher resolution – Richer colors (wider color gamut) – Better shadows and highlights (wider dynamic range)* Key Sony products/technologies have 4k, wider color gamut and wider dynamic range – F65 camera, MCD, OLED * Sony and NHK have opposed this proposal in ITU-R standards body

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

Availability of 4k Premium Content Our estimate is that there are approximately 75 movies available today in 4k – Many of them are library titles restored in 4k Some new movies are being shot in 4k (e.g. shot on F65) but completed at 2k Some movies shot on film were scanned at 4k but completed at 2k The majority of movies shot digitally were shot at 2k resolution (e.g. Sony F35, Arri Alexa) There is a mistaken impression that shooting in 4k costs a lot more

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

Content Delivery Use the same file format for download and physical media – Standardized file format such as the Common File Format (CFF) – Physical media and download are just two different ways to get the 4k file to the consumer Streaming with industry standard MPEG-DASH – Uses a file format that is similar to CFF SPE is researching 4k delivery using H.264 (AVC) as an interim codec – Initial results are encouraging – Other companies are doing similar research – H.265 (HEVC) is the long term solution but completion of standard, resolution of IPR claims and implementation may make immediate adoption difficult – However, without an upgrade path to H.265 early adopters of 4k products will be unable to get new 4k content

Use Cases 1.Electronic Sell Through (EST) – Consumer purchases title through Online Account – Consumer downloads content to any device registered to Online Account – Device transparently obtains playback license – Consumer plays content 2.Physical media with on-line activation – Consumer purchases title on physical media – Registered device responds to media insertion and adds to consumer’s Online Account – Device transparently obtains playback license – Consumer plays content Directly from physical media From copy on registered device

Use Cases 3.Physical media without on-line activation – Consumer purchases title on physical media – Consumer plays content directly from physical media – Consumer cannot copy content, must have physical media – Requires different content protection scheme 4.Streaming – Consumer purchases title (ownership or rental) through Online Account – Device connects to streaming provider using Online Account – Device transparently obtains playback license – Consumer streams content to any authorized device

Physical Media Offering Many consumers want to buy physical media with an electronic copy – Studios bundle a Blu-ray disc with a digital offering (e.g. UV, bonus digital copy, AACS managed copy, etc.) – Studios are selling 2 copies for the price of one Consumers keep the disc and use the digital offer Consumers keep the disc and sell the digital offer  Consumer use the digital offer and sell the disc 

Action Plan Continue to test H.264 compression for 4k – Native 4k footage shot on F65 and on film Select, or at least short list, content protection vendors Engage with others working on enhanced 4k content protection – Sony/SPE to show what is possible Identify market leaders in 4k content (broadcasters, studios) – Offer support with 4k products (e.g. TVs, cameras) Prototype a proof of concept set-top box – HDCP 2.1 protected HDMI 1.4 output – Software player running in protected hardware environment – 24fps 4k content At CES demonstrate – Streaming over fiber to the home network (or cable/DSL if data rate allows) – Playback of downloaded file and from BD-ROM disc