BDA UHD Format Study (SPE internal update) February 27, 2014 (Draft) 02/27/2014 SPE Confidential

Topics BDA UHD Task Force (UHD-TF) Format Study status Key issues under BDA discussion 4K & HDR introduction BD Format simplification & Export Ready Digital Bridge Export Format & Usage Rules Business & User Experience questions Next Steps 02/27/2014 SPE Confidential

BDA UHD-TF Format Study history & status 2013 Jan ~ Research on next gen Format Extension overall 4K, High Dynamic Range, Wide Color, 3D Audio, & “Digital Bridge (BD content export)” BDA discussed introduction of digital file format for UHD BD Disc delivery, but decided to study use of existing BD AV Format requiring player to export digital file format from disc. 2013 Dec ~ BDA UHD TF focusing on 4 issues, targeting 2015 Launch 4K and HDR Video spec, backward compatibility, introduction timing Simplification of BD Format, Export ready disc format Digital Bridge Export Format (compatible with DECE format) Digital Bridge rules (mandatory obligation for content provider and player) AACS (content protection for current HD/3D Blu-ray) working on next gen security for UHD BD 2014 Mar BDA F2F (3/10-15) High level agreement (if possible) on the issues above Confirm BDA next steps and UHD Format launch timing 2014 July ~ early 2015: BDA F2F meetings (3 times a year) Technical specification, licensing, tools to be finalized for support UHD Blu-ray launch 02/27/2014 SPE Confidential

HDR content backward compatibility HDR is getting strong interests in industry, especially after CES2014 HDR video signal will be new standard. Compatibility with Player/TV need to be studied. SPE input to Sony & BDA in past Avoid the situation where consumers have to match the version of UHD disc to the version of the player. “One UHD Player Spec” reduces this concern. Any UHD disc to play in any UHD player and produce a satisfactory output (SDR on SDR-TV, SDR or HDR on HDR-TV). This requires HDR format be backward compatible to SDR system, or requires player to implement well managed mapping of HDR content to SDR signal. Sony Corp. BDA members suggesting HDR introduction together with 4K in UHD Blu-ray. Ideal compatibility TBD whether SDR only UHD player will be licensed or not SDR Signal HDR Signal SDR Only UHD Player SDR TV (Already exist) High Dynamic Range(HDR) Disc SDR/HDR UHD Player HDR TV (Coming to market soon) 02/27/2014 SPE Confidential

BDA Format simplification & Export Ready BDA agreed to simplify UHD BD Format To focus on main enhancement factors (such as Higher Video Quality, Digital Bridge Export) Maintain popular BD format functionality Seamless branching (multi-version movie), BD Java Menu, High quality Audio, etc. Drop features not widely used, to allow faster/easier player development Export Ready disc format Additional files on disc to support export into digital format E.g. AAC Audio track, Digital format package metadata, etc. Manifest to identify how export process selects the contents and tracks HD Blu-ray can be authored in Export Ready style in future BDA plans to make it optional feature for studios, but may promote it to as default in future. 02/27/2014 SPE Confidential

Digital Bridge Export Format & Usage Rules UHD BD Format (BDMV FE) Digital Bridge Export Format (SFF) Server (s) SFF Media Player BDMV FE Play Export Play SFF Play UHD BD Player HDD Play SFF Portable HDD BDMV FE Player Bound Copy NOTE: 2 types of copies: (1) BD Format bit for bit player bound copy, (2) Exporting in Digital Format BDA and AACS discussing Mandatory Rule for UHD Blu-ray, to permit both types of copies. Exported file Usage Rules: (option-1) Export is unlimited & free, but Digital Retailer will manage activation of file playback (option-2) BDA or AACS will manage default use cases, then additional use cases managed by Retailer. 02/27/2014 SPE Confidential

Business & User Experience questions UHD Blu-ray Digital Bridge Mandatory obligation for studios BDA and AACS discussing mandatory obligation for UHD Blu-ray Disc (studios) Have to authorize copies (both BD Format local copy, and Digital File Export) Multiple DRM support (similar to UV), so that Device Manufacturers can choose DRM If studios and manufactures could not agree on mandatory obligation on both sides, Sony Corp. thinks obligation can be optional for both studios and manufactures. Optional means Studios are not obligated to authorize export, UHD BD player may not implement export function. (Use Export scheme only under business base) UHD Blu-ray Region Coding BD Player manufactures requesting not to use Region Coding in UHD Blu-ray, especially now studios are requesting Export of Disc contents which will not have player unit based region control anyway. BDA is moving this direction, and 3 other studios (WB, Fox, Disney) agreed to drop region coding. SPC titles has been using region coding for specific acquisition titles. Online Key delivery BDA and AACS studying introduction of online key delivery for UHD Blu-ray to stop pre-street date Disc ripping & piracy. Sony Corp. BDA members asking whether studios will actually use online key distribution for Disc, and if so, how to mitigate user confusion / frequent customer call. Online key delivery is part of Hollywood studio next gen security requirements, so majority of AACS companies are supporting introduction of online key delivery system. 02/27/2014 SPE Confidential

Next Steps 02/27/2014 SPE Confidential