© 2013 DECE, LLC – DECE CONFIDENTIAL
1
4082840906
4095540970
4098841003
4101841033
4105041061
4107241083
4109441105
4111641127
4113841149
4116041171
4118241193
4120441215
4122641237
4124841259
4127041281
4129241303
41314
0
5000000
10000000
15000000
20000000
25000000Rights Accounts
Daily averages for week ended Feb 18Accts: 33K (12M annualized pace)Rights: 161K (58M annualized pace)Ratio of new rights to new accts so far for Feb = 4.41
Data as of Feb 18, 2013• Accts: 10.59M• Users: 10.79M• Rights: 23.10M• Avg. # of Rights per Account: 2.18
Ecosystem life-to-date
Accounts & Rights Growth
© 2013 DECE, LLC – DECE CONFIDENTIAL
New Accounts & New RightsWeekly results for trailing 12 months
4095
9
4097
3
4098
7
4100
1
4101
5
4102
9
4104
3
4105
7
4107
1
4108
5
4109
9
4111
3
4112
7
4114
1
4115
5
4116
9
4118
3
4119
7
4121
1
4122
5
4123
9
4125
3
4126
7
4128
1
4129
5
4130
9
4132
3
0
500000
1000000
1500000
2000000
Weekly total New Rights Weekly total New Accounts
2
Week ending Monday…
Strong new rights growth – materially higher than week in
prior year excepting 2012 Christmas week
Relatively strong new accounts growth – higher than all other weeks in prior
year except some in Dec/Jan and April 2012 WB/Facebook viral promotional
“bulge”
Daily averages for week ended Feb 18• Accts: 33K (12M annualized pace)• Rights: 161K (58M annualized pace)• Ratio of new rights to new accts so far for Feb =
4.41
2012 2013
© 2013 DECE, LLC – DECE CONFIDENTIAL
Ref-1. Stats Update: New Transaction Volume
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© 2012 DECE, LLC – DECE CONFIDENTIAL
Jan March May July Sept Nov Jan0
1000
2000
3000
4000
5000
6000
UV New Content Transactions by Month Since Jan 2012 (K)• Jan finished at 4.79M• Feb 1-18 total = 2.93M• Feb projection = 3.6 - 4.4M
2013 Projection = 58M Monthly avg. = 4.83M
2012 total = 14.64M Monthly avg. = 1.22M growth
© 2013 DECE, LLC – DECE CONFIDENTIAL
Ref-2. DECE Members – 79 companies (“approximately 85” counting subsidiaries with distinct market-facing brands that are involved in UV)
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• Updated: 2/18/2013• New Members since last update in blueMC = Mgt Committee / F=Founder / Ch = provides Working Group Chair
Adobe Systems, Inc.(F)
Advanced Micro Devices (AMD)
Akamai Technologies, Inc.
Arxan Technologies, Inc.
AT&T Services, Inc.
Barnesandnoble.com LLC
BBC Worldwide (incl. 2entertain)
Best Buy Co., Inc. (F)
Blockbuster Inc.
BluFocus Inc.
British Sky Broadcasting Limited
castLabs
Catch Media, Inc.
Cineplex Entertainment L.P.
Cisco Systems, Inc. (F)
Comcast Cable Communications (incl. also NBC Universal) (F, MC)
Cox Communications, Inc.
CSG Media, LLC
Cyberlink Corporation
Deluxe Digital Media Management, Inc.
Deutsche Telekom AG
Digital Rapids Corp.
Dolby Laboratories, Inc. (F, MC)
DTS, Inc. (F)
Elemental Technologies
Empathy Lab, LLC
FilmFlex Movies Limited
Fox Entertainment Group, Inc. (F, MC, CH)
Fraunhofer
IBM Corporation
Intel Corporation (F, MC, CH)
Irdeto Access, Inc.
Kaleidescape, Inc
Kit Digital, Inc
Kudelski SA (Nagravision)
LG Electronics Inc. (F)
Liberty Global, Inc.
Lions Gate Films, Inc.
LodgeNet Interactive Corporation
Lovefilm UK Limited (F)
Marvell International Ltd.
Microsoft Corp.(F, MC)
MobiTV
Motorola Mobility, Inc.
MovieLabs
My Eye Media, LLC
NDS Group Limited
Neustar, Inc. (F, CH)
Nokia Corporation (F)
NVIDIA Corporation
Ooyala
Panasonic Intellectual Property Corporation of America (F, MC)
Paramount Pictures Corporation (F, MC)
Philips Electronics North America Corporation
PwC
Quick Play Media Inc.
Recording Industry of America Inc.
Red Bee Media Limited
Roadshow Films, Pty Ltd
Rogers Communications Partnership
Rovi (incl. Roxionow, DivX) (F)
Saffron Media Group Ltd
Samsung Information Systems America, Inc. (F, MC)
SCA IPLA Holdings, Inc. (incl. Sony, Sony Pictures, Sony DADC, Sony SNEI) (F, MC)
SeaChange
Seagate Technology LLC
Sprint Nextel Corporation
Target Corporation
Technicolor
Tesco Stores Ltd.
Testronic Laboratories Inc.
Toshiba America Information Systems, Inc. (F, MC, CH)
Verance Corporation
Verimatrix, Inc.
VeriSign, Inc. (F)
Verizon Communications, Inc (F, MC)
Walmart/Vudu (F)
Warner Bros. Entertainment, Inc. (F, MC)
Widevine Technologies, Inc.
© 2013 DECE, LLC – DECE CONFIDENTIAL
Ref-3. Licensees as of 2/18/13 (DECE Confidential)
5
• Access Digital
• Barnes & Noble
• Best Buy
• Choose Digital
• Comcast/NBCU
• Flixster (WB)
• Hastings
• HMV
• Kaleidescape
• Milyoni
• Paramount
• Rovi
• Sony Pictures
• VUDU (Walmart)
• 7 others*
Retailer (21)
• Access Digital
• Autonomic Controls
• castLabs
• Comcast/NBCU
• CyberLink
• LG Electronics
• M-GO
• Rovi
• Samsung
• Sony
• Flixster (WB)
• 2 others*
Client Implementer (13)
• Akamai
• All Digital
• Authentec
• castLabs
• CSG
• Deluxe
• Enteractive
• FlixChip
• MediaTek
• Movidone
• MStar
• Neustar
• Regency Media
• Radius 60
• Saffron
• Solekai
• 3 others*
Partner Developer (19)
• Anchor Bay (Starz)
• BBC
• Fox
• Lionsgate
• Comcast/NBCU
• Paramount
• Sony Pictures
• Warner Bros.
• 1 other*
Content Provider (9)
* Unnamed licensees have requested confidentiality, although some are willing to be disclosed upon specific request (as opposed to appearing in lists)
• Access Digital
• Barnes & Noble
• Choose Digital
• Comcast/NBCU
• CSG
• FlixFling
• M-GO
• MobiTV
• Rovi
• Sony Pictures
• VUDU (Walmart)
• Flixster (WB)
• 2 others*
LASP (14)
• Access Digital
• castLabs
• Comcast/NBCU
• CSG
• M-GO
• Rovi
• Flixster (WB)
• 2 others*
DSPs (9)
© 2013 DECE, LLC – DECE CONFIDENTIAL
Primary Benefit to Sony Unlimited
6
UV Eliminates Consumer Switching Costs
Sony’s “My Locker” cloud service is immediately populated with consumer’s movies
© 2013 DECE, LLC – DECE CONFIDENTIAL
Status - Common File Format (CFF)• First Standardized Digital File intended for online delivery
– Significantly reduces cost for UV Retailers
– Eliminates encoding costs for downloaded file
– Same CFF can be used by all UV retailers
– DRM interoperability
– Separates Device/App from service the same way DVD/Blu-ray is not tied to retailer
• Common File Format Proposed Roll-out
– Friends &Family testing starts week of 2/25
– Closed beta testing starts 4/1 with 100+ testers
– CFF Volume Production Start (notice to retailers around 5/1)
– CFF Sunrise 4 months later, on 9/1
• Late Binding
– Allows Audio, Subtitles and interactivity to be downloaded separately from the video file
• Common Streaming Format
– Similar to CFF but intended to create efficiencies for streaming
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© 2013 DECE, LLC – DECE CONFIDENTIAL
Territories
2011
United States
–Vudu, CinemaNow, Flixster, Nook, M-go, Sony Pictures Store, Universal HD, Paramount Movies
2012
UK
–Fixster, Sony Pictures Store, Universal HD
–Anticipated 3rd Q 2013 Sainsbury's, Dixons, Tesco
Canada
–Cineplex
2013 - 2nd Q
Australia
New Zealand
Ireland
2014 TBD
Japan
China
India
Brazil
8
physical sell-through vs rental
0%10%20%30%40%50%60%70%80%90%
100%
2010 2011 2012
Rental
Sale
Sell-Through as % of category remained stable
Digital sell-through vs vod
0%10%20%30%40%50%60%70%80%90%
100%
2010 2011 2012
VODSaleVV
Sell-Through as % of category +29% growth
Consumers are Unsatisfied buying movies online
Buying ExperienceSelection
Buying from brand you trustAbility to watch on TV
Newest ReleasesPrice
Share w/ familyConfidence you can keep using if HW failure
Confidence you can keep using if switch device brandKeeping track of what you own
Ability to move to non-TV devices
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
Re lative s atis fac tion
Source: UltraViolet Consumer Insights Survey, Oct. 2010; conducted for DECE by AbsolutData Technologies; n = 1,025
Areas of lowest satisfaction are among
those directly addressed by UltraViolet
(on scale of -2=least satisfied and +2=most)
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Guaranteed File Retrieval
Instant Access
Buying Experience
Increase/Unlimited Storage
Watch on TV
Share with Family
Selection
Watch on All Devices
Keep Track of What You Own
BENEFITS OF THE CLOUD
Guaranteed File Retrieval
Instant Access
Buying Experience
Increase/Unlimited Storage
Watch on TV
Share with Family
Selection
Watch on All Devices
Keep Track of What You Own
Guaranteed File Retrieval
Instant Access
Buying Experience
Increase/Unlimited Storage
Watch on TV
Share with Family
Selection
Watch on All Devices
Keep Track of What You Own