1. SPE Digital policy overview for Jeff Reyna and team DRAFT Tim Wright NOT for onward distribution December 13 th, 2010 EXPIRES END MARCH 2011

2. Contents How UltraViolet is affecting policy Approved Format for all windows Approved Format for VOD/EST window RTMP-E Approved Format for Basic TV Approved Devices Usage Rules for TVOD, SVOD, FVOD HD to the PC 3D HD over FTA Mobile resolution Encryption over the internet Sharepoint

3. How UltraViolet is affecting policy UltraViolet is affecting digital policy in a number of ways: –The 5 UltraViolet DRMs are now approved in general, and can be added by default into the Approved Format See further slides on Approved Format –Usage Rules for any non-UltraViolet EST offer must be less generous than those for UltraViolet, to provide an additional incentive for service providers to adopt UltraViolet –And usage rules for VOD should be less generous than for EST, to provide an additional incentive for adoption of EST See further slides on usage rules for VOD –We seek for devices to be approved on the basis of the DRM supported, not on the device type See further slides on device approval

4. Approved Format for all windows (1) The Approved Format for all new licenses except Early Window should include the five DRMs approved by UltraViolet by default Meaning that: –The service provider can use any of these 5 without telling us which –They can change from one UltraViolet approved DRM to another without informing us This policy should be applied unless there is a compelling reason against its application in a particular case Rationale: –We are comfortable with all of these DRMs, so allowing all 5 by default simplifies deal approval –Encourages service providers to move to UltraViolet DRMs, so moving the ecosystem gradually towards compliance

5. Approved Format for all windows (2) The default clause for Approved Format for VOD/EST windows is within the Definitions folder in the sharepoint, in Definitions.xls –Approved Format shall mean that the content is encrypted and protected using one of the content protection systems approved for UltraViolet services by the Digital Entertainment Content Ecosystem (DECE), and said implementation meets the compliance and robustness rules associated with the chosen UltraViolet approved content protection system. The UltraViolet approved content protection systems are: a. Marlin Broadband b. Microsoft Playready c. CMLA Open Mobile Alliance (OMA) DRM Version 2 or 2.1 d. Adobe Flash Access 2.0 (not Adobe’s Flash streaming product) e. Widevine Cypher ®

6. RTMP-E Adobe’s Flash streaming product, RTMP-E: –Is not UltraViolet approved –Does not support output control (control over digital and analogue outputs) –Is being superseded by Adobe with “Flash Access 2.0” (which is UltraViolet approved) –May not be maintained properly by Adobe over time We therefore require users of RTMP-E to commit to migrate to a DRM or streaming technology supporting output control: –Within 6 months of Agreement start for all services except FVOD –Within 9 months for FVOD This policy is being applied very consistently –No one has refused to meet it Requirements on use of RTMP-E are no longer in the schedules –But a clause to be used is within Miscellaneous on the sharepoint

7. Approved Format for Basic TV For Basic TV, the service provider does not need to seek approval of their DRM/CAS system as long as it is either: –One of the UltraViolet approved DRMs, or –An established, proprietary industry-accepted and well used conditional access vendor

8. Approved Devices (1) There are now too many device types for us to be approving device types individually And the lines between devices types are now very blurred –E.g. most devices are now IP-connected, and have a browser and an environment you can run apps in – are they all PCs? Further, UltraViolet does not distinguish between types of device –If a device supports one of the UltraViolet DRMs, the UltraViolet file format and is UltraViolet compliant then it is approved, whatever its device type We therefore aim (from a Digipol point of view) to defined “Approved Device” with reference to support of the Approved Format and the content protection requirements

9. Approved Devices (2) HOWEVER –If Sales teams wish to subdivide device types, they can, e.g.: So as to minimise updates to existing licenses So as to exclude particular device types where this is needed Clause is : –“Approved Device shall mean any IP-enabled device which implements the Usage Rules, supports an Approved Format, and meets the Content Protection Obligations and Requirements as set forth in Schedule XYZ.” –In Definitions.xls in Definitions folder on sharepoint

10. Usage Rules for TVOD Devices –User can pre-register a number of devices (typically 5) –BUT can only view a VOD rental programme on one device at one time –Though they can view on more than one device over the course of the rental period –Aim to keep to this if at all possible Viewing and retention period –Typically 24 or 48 hour viewing period, once viewing commences –With 30 day retention for VOD via temporary download i.e. once the content is downloaded, there is no viewing after 30 days, even if the user has not viewed it at that time User authentication –Viewing should require user login –Login credentials should ideally grant rights to purchase or give access to sensitive details (e.g. credit card details) to discourage unauthorised sharing of login details

11. VOD temporary download and streaming If a VOD service includes devices supporting BOTH streaming and download –Its okay to have both streamed and download versions “active” at the same time if you can enforce single viewing only –YouTube are doing this with Widevine, and Verizon are saying they can migrate to it AND – can you have 2 different active programmes within the same account?

12. Usage Rules for SVOD Recent deals have allowed for up 2 different viewings of SVOD content on the same account within a household Seems reasonable If a specific device (e.g. a STB) is required for reception, and multi-device homes are allowed, then users are allowed as many viewings as they have receiving devices in the house –So if you have 5 STBs, you can have 5 simultaneous and different viewings

13. Usage Rules for AVOD/FVOD Often, no user login is required Services are streaming only Typically, no or minimal usage rules applied Recent rules (derived from MSN, YT) will be posted on sharepoint in the Usage Rules folder

14. HD to the PC This is now allowed VOD-EST schedule on sharepoint has language for this A well-known and approved DRM should be used –UltraViolet DRMs can be used without consultation –Consult Tim or Spencer for anything else Any HDMI output must have HDCP BUT DVI output of devices registered before end 2011 do not need to support HDCP –Devices registered after end 2011 must support HDCP on the DVI output –Devices registered after end 2011 must support limitation of any HD analogue output to Standard Definition

15. HD Analogue sunset VOD-EST schedule now contains the following analogue sunset requirements New devices after end 2010 MUST support down-scaling to SD on HD analogue for protected content –unless device was already being sold before end 2010 (an “Existing Model” in the AACS parlance All new devices after end 2011 MUST support down-scaling to SD on HD analogue for protected content All new devices after end 2013 MUST support disabling of ALL analogue outputs for protected content

16. 3D requirements Same requirements as VOD/EST plus For frame-compatible 3D, no new devices after end 2011 that do not support disabling ALL analogue outputs –Frame-compatible 3D is where the right and left eye pictures are squeezed into one normal 2D frame –Re-digitisation of SD (and SD) analogue output will produce a near-perfect digital 3D copy –Frame-compatible sometimes known as “Top and bottom” or “Side by side”

17. HD over FTA This is allowed as long as the content is sufficiently old 18 months after theatrical release Any copy control that can be used should be used In UK, for transmission over Freeview and Freesat HD, we must require use of Freeview HD “Content Management” (scrambling of EPG information so that only compliant receivers can receive) –Content Management status should be set to “Managed Copy” (for first run TV or feature) or “Multiple Copies” (in all other cases)

18. Mobile transmission

19. Encryption over the internet All content MUST have some encryption if transmitted across uncontrolled internet Even content that is simulcast of FTA content Even mobile content at QVGA All content MUST be encrypted across the internet Allowing unencrypted internet transmission sets a very dangerous precedent

20. Approved CAS vendors The following vendors can be approved without consultation for Day and Date, VOD, PayTV and later windows: –NDS Product sometimes called “Videoguard” –Nagravision Merlin –Verimatrix –Iredeto But NOT Cryptoworks versions 4, 5 and 6 which have been hacked –Conax –Latens –Cisco PowerKey

21. Non-UltraViolet DRMs which we are comfortable with SecureMedia (“Encryptonite”) Pro:Idiom Microsoft WMDRM10 –But encourage to migrate to Playready which is UV-approved –Migration via the Term of the Agreement DivX

22. Sharepoint

23. PVR policy No PVR’ing of PPV PVR of Pay TV? –Like to avoid but is given

24. Who schedules to use? Ours of theirs? –ALWAYS try to use ours: We update schedules regularly MFN avoidance Easiest for us to manage Get latest from sharepoint

25. Upconversion

26. Early window Use the TDD? Perhaps just the questions at the end Liaison