SPT 4K Discussion. August, 2013 DRAFT
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1 SPT 4K Discussion August, 2013 DRAFT Sony Group Corporation Strategy Division 2010 MRP 1
2 SPT Global Networks Portfolio 150+ COUNTRIES 800+ MILLION HOMES 20+ LANGUAGES Grown SPT s network portfolio over the last 10 years leveraging SPE s own library Sony Group Corporation Strategy Division 2010 MRP 2
3 : World s 1 st Producer of 4K TV Programs 3net is in prime position Founded in 2010 as a joint venture between Sony, Discovery and IMAX, 3net has become a preeminent 24/7 3D linear service and studio Currently leveraging existing 3D expertise to secure a leading position in 4K content development, production and syndication Five 4K shows already in production Proven high-quality content capabilities, evidenced by the world s largest library of original 3D HD content Strong partnerships with consumer electronics companies Sony, Samsung, LG looking to enhance margins on TV sales and hungry for 4K content Close collaboration with Sony, Discovery and IMAX in developing innovative production techniques, show concepts and post-production efficiencies to capitalize on untapped 4K content opportunity UHD TV is estimated to reach 30% of the 50 + market by 2013, and 80% by 2015 (1) Early demand for 4K content indicates licensing fees at a 50% premium to initial 3D launch While over 20 4K TV models are coming onto the market in 2013, the current dearth of 4K content poses a considerable opportunity for a first mover to capture the market Recent advances in video compression including Netflix demonstrated 4K streaming capability will urge OTT players to pursue 4K content as a point of differentiation Existing licensing agreements with OTT providers, including Netflix, put 3net in prime position to capitalize on this new and fast-growing demand (1) Source: Moelis & Company; UHD = Ultra High Definition Sony Group Corporation Strategy Division 2010 MRP 3
4 Competitive Landscape: Recent 4K Initiatives Stakeholders across the globe taking active steps to fill the 4K content void Eutelsat, a French-based satellite provider, launched the first 4K demo channel in January (with no full-length content) BBC is shooting its Survival wildlife series in UHD in 2013, having already demonstrated 8K content transmission at the London 2012 Olympic Games Possible test channel launch in Registered a host of 4K trademarks in EARLY 2013, covering broadcast, streaming, VOD Tested 4K capture on England premiere league matches in the UK. Sky Deutschland also announced 4K tests Currently evaluating 4K production, with focus on sports and movie content. Understood to be planning a dedicated 4K channel SES planning to launch a 4K showcase channel in Have conducted several demonstrations of 4K transmission tests, including live content Currently testing, with the intention to air 4K broadcasts of both Football World Cup and the Olympics CBS used 4K cameras to help capture the 2013 Super Bowl Japan s NHK plans to capture the 2014 Football World Cup in UHD and broadcast over satellite Tested 4K broadcasts in Spain, Brazil, several other European countries. Planning to launch test channel Orange, Technicolor, Globecast, Ateme and other French stakeholders form the 4ever collective to research, develop and promote 4K content looking to stave of competition and provide a point of differentiation for their services Source: Futuresource Consulting 2012, IHS/ Screen Digest, RapidTV News, TechCruch Sony Group Corporation Strategy Division 2010 MRP 4
5 4K Opportunities and Beyond Potential 4K content offering in the near-term 3net s original 4K native production pipeline, with primary focus on formats that lend themselves to high-quality experience action/adventure, natural history, travel IPL (Indian Premier League cricket), plus other live sports and events content Branded VOD [for catch-up and library content mastered/ upscaled to 4K] Streaming a viable opportunity given recent advances in compression and network speeds Background delivery via Sony s UHD media servers also an option Potential to capture additional value via tiered-pricing for UHD content Partnership for 4K research, development and promotion [similar in spirit to the French 4ever initiative formed by stakeholders across the 4K value chain] Cross-promotional opportunities International channels content investment opportunities & ethnic channels brought to the US US multiplex opportunities Sony Group Corporation Strategy Division 2010 MRP 5
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