1. Crackle and Digital Channels OTT Infrastructure
June 20, 2013
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Agenda
Recap
Findings
Recommendations
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3. Sony Pictures Entertainment Confidential
Recap
Objective
“Provide a three or four year vision around potential common architecture and/or processes, at a high level view, for MRP”
Methodology
Business Model/Process Analysis
Tools and Architecture Analysis
Document Pain Points (Current and Forward Looking)
Deliverables
As-Is Process Analysis
Reference Architecture
Short-Term MRP Cost Analysis and Implementation Timeline
Recommendations and Potential Future Roadmap
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4. Conceptual Architecture
Digital Networks
Crackle
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Findings
Initial Recommendations
Common Spec for Source Delivery
Common Process for Content Acquisition
Common Asset Repository
Package Archive
Manage Asset Preparation
Further Recommendations
Technical Operations
“Content Librarians”
Non-Linear scheduling
Rights Management and Metadata
Leverage Architectural Investments
Ad Coordination
Common CMS
Common Delivery
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Considerations
Rapid Change
The business and technology landscape is changing rapidly
Must be agile to meet changing consumer preferences
Distributed International Business
DigiNetworks’ business is very regional due to ties with linear networks
Crackle is moving towards greater regionality; three instances in use today
Process change is difficult to introduce due to distributed workforce
Centralized vs. Decentralized Organization and Infrastructure
Benefits: Economies of scale, Consistent processes
Challenges: Less regional specialization, regional business requirements missed
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7. Initial Recommendations
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The Challenge
Diverse processes for gathering content
Content is received from many sources
Source materials vary in format and quality
Files are received through a number of transfer mechanisms
Processes vary by region
Work is difficult to track
Assets are difficult to locate, identify, and track
Work is repeated to re-create or re-gather content
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9. Recommendation #1: Content And Workflow
A common package specification should be defined
Published standards for Video, Audio, Images, Metadata
Both for source material vendors and in-region normalization
A common delivery platform to receive content
Aids in asset tracking and consistency of process
Aspera Shares provides a central area for receiving and packaging content as well as moving to a single reliable transfer method
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10. Recommendation #2: Common Asset Repository
A common area for both centralized working storage and long-term archive would streamline processes
Two-Phased Recommendation
Short Term – Central Storage – Managed Manually, Aided with Tools
Long Term – Full DAM System – Integrated with metadata and workflow tools
Estimated ~$4 million cost over 3 years
Both on-premise and cloud-based solutions should be considered
An evaluation of needs after implementation of short term solution should be conducted
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11. Common Asset Repository
As-Is
Proposed
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Estimated Timeline
Quarters from Project Start 1 2 3 4 5 6 7 9
Common Repository
Gather Requirements
Define Package Specification
Central Working Storage
Package Creation and Data Entry Tools
Update Procedures for Central Storage
Central Archive
Utilization By Crackle
Evaluate Needs
Asset Management System
Update Procedures To Account For DAM
Integration with OVP & CMS
Key
Process
Technology
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13. Further Recommendations
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Shared Operations
Technical Operations
Crackle current uses WPF and external vendors to receive and prepare content
DigiNetworks leverages Linear Networks staff to receive and prepare content
As more content is licensed from distributors that do not flow through WPF or the Linear networks, demand for content preparation will grow
There is potential opportunity for cooperation where skills overlap
“Content Librarians”
A group dedicated to ensuring the library is clean and complete
Package consistency and readiness
Content normalization
Metadata entry and upkeep
Regional responsibilities across channels in support of various languages
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15. Non-Linear Scheduling
There is no single system managing non-linear scheduling across the digital properties
Managed using documents, spreadsheets, and
This has implications for:
Work tracking
Ensuring rights are fully utilized
Fulfilling contractual obligations
Catch-up service scheduling can be derived from Linear schedules
Common interface with Linear systems facilitates easier integration of new regions
Non-linear properties (e.g. Animax, Crackle) require a different system approach
The aggregation of non-linear scheduling information would give visibility to all regions for global planning/coordination
Integration with rights, metadata, asset repository, CMS, and MAM systems become possible
IT is taking initial steps to address this problem for linear-attached digital channels
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16. Utilization of Upcoming IT Systems
Rights Management
Currently rights are identified and managed through s and PDFs of contracts
IT is selecting a new rights management solution
Complex business rules for non-linear must be addressed
Correctly structured data can be utilized to feed non-linear scheduling
Requires data entry of rights information from contracts into system
Title Metadata Management
Metadata arrives inconsistently and is massaged to fit needs
Complete Title metadata in GPMS (Global Product Management System) flows to other systems
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Ad Coordination
Freewheel
Utilized by Crackle
Freewheel not interested in supporting DigiNetworks
Freewheel allows for improved tracking and reporting, access to networks
Rich Media Ads
Collaborative development, sales, and usage across sites/platforms
Ad Sales for DigiNetworks SVOD
Current model bundles non-linear, linear deals
Unbundling sales of ads to non-linear channels may be beneficial
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18. Technical Coordination
Technical Sharing Group
Monthly engineering discussion proposed
Knowledge exchange
Awareness of new developments in technology or requirements
Format Testing
Leveraging Investments
Mobile/Platform Apps
Internal Tools (e.g. Analytics Tools, Data Entry)
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Common Platform (1/3)
There are three main functions of the business after the content package has been created and scheduled
OVP
Transcode to user formats
Handling of Content Protection
Distribution to CDN
CMS
Web site layout and management
Content discovery
CDN
Edge Content Distribution to end users
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Common Platform (2/3)
These functions overlap and differ in solutions between the groups. Commonality could provide benefits such as:
Focused investment
Fewer required integrations
Reduced support expenses
Considerations
Ability to adapt to rapidly changing technology
e.g. Brightcove  MPX
Modular design is key
There is no single perfect product or service over the long-term
Generic interfaces between the modules allows for swappable technologies
Common platform needs to support all business models
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Common Platform (3/3)
How do we decide if we should move to a common platform?
Evaluate longevity of existing investments
May be able to fill individual functions within a forward looking architecture
Focus on near term business needs and developing modularity
Weigh costs of building/maintaining vs. contracting SaaS vendors at projected volumes
It makes sense at a low volume to use a SaaS provider and pay per-unit
There is likely an inflection point where fixed in-house investment beats SaaS
Model on business volume and complexity
Evaluate timing of inflection point against the implicit costs/inertia of entrenchment with vendors
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22. Digital Networks OTT + Crackle
QC & Prep
Repository
Title Metadata
Content from Linear
Content from SPE
Content from Distributors
Promo
Crackle Platform
Consumer
3rd Party Platforms
External post houses
Contractual
Rights
Crackle Scheduling
Crackle
Have
Proposed
Will Need
IT Services
Key
Digital Networks OTT + Crackle
QC & Prep
Repository
Title Metadata
Content from Linear
Content from SPE
Content from Distributors
Promo
Common Platform
Consumer
3rd Party Platforms (incl. MVPD)
Contractual
Rights
Scheduling from Linear
Crackle Scheduling
Digital Networks Scheduling
QC & Prep
Repository
MPX
Contractual
Rights
Scheduling from Linear
Digital Networks Scheduling
Title Metadata
Content from Linear
Content from Distributors
Promo
Web CMS (Drupal)
Consumer
MVPD

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Appendix
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24. Strawman Architecture
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25. Agreed “Business Models”
Promotional
MVPD Access
AVOD
SVOD
Second Screen
TVOD
Currently rental
Could move into EST in the future
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