the insider

Sony DADC

The supply chain issue

UK recovery management Digital distribution for BBC Worldwide PS3TM games manufacturing go-live in Russia

Customer News

2011.02

www.sonydadc.com

Sony DADC would like to say ThAnk

You to all our …

customers · retailers · suppliers · distribution partners and especially our employees for all your support in achieving one of the smoothest recoveries we could have imagined: · Disaster recovery plan & team in place within an hour · IT backbone never interrupted · Replenishment stock at retail within two days as part of our rapid ramp-up program The Sony DADC Enfield team

www.sonydadc.com 2

the insider

Welcome

As this year draws to a close, we look back at a period that has provided challenges and opportunities. The test of a great company is one that uses disasters such as happened to us in the London riots to make our team culture even stronger. As you will read in this issue, this is what we have succeeded in achieving through a meticulously crafted disaster recovery plan, a robust IT infrastructure and the skilled and dedicated team at our Enfield distribution center (page 4). However, all of this would not have been sufficient without the support from our customers and the industry. Physical supply chain efficiency is our mission: it is enabled by a network of superbly equipped distribution centers at gateway destinations around the globe. Our recent acquisition of SCP in France (page 5) has grown our French games distribution share to more than 50%, presenting new opportunities to both local and global games customers alike. These opportunities include the expansion of our Vendor Managed Inventory (VMI) distribution model - a service that STUDIOCANAL has implemented in Germany with very positive outcomes (page 6). While entertainment consumption continues to migrate from physical to digital platforms, bridging solutions for the transition period are required. To help our customers capitalize on the opportunities of “here and now”, we evolve our current services and solutions also taking a leading role in industry initiatives such as UltraViolet. For the consumers’ ultimate goal of greater freedom in their choice of devices and a seamless play-back experience, Sony DADC has established an end-to-end digital distribution platform, and provides a seamless and complete supply chain for UV-enabled packaged media (page 15).

Table of Contents

Physical Supply Chain Rebuilding the UK supply chain

4

Integrated IT systems – Sony DADC’s unbreakable supply chain backbone

5

Sony DADC strengthens European supply chain performance

5

STUDIOCANAL adopts VMI with SRS Europe’s support

6

PS3TM disc manufacturing kicks off in Russia

7

Digital Supply Chain BBC Worldwide chooses Sony DADC to build its next-generation global distribution platform

8

LOOT’s YouTube™ Active Camera & PlayStation®Home take virtual video to the next level

9

Physical/Digital Transition Establishing a number one service network for the international games industry

10

Screen Pass prevents illegal downloads of your valuable content

11

Movie Code helps monetize Germany’s interest in Tintin

12

UltraViolet: Sony DADC enables Hollywood’s game changer

13

People, Pictures, Thoughts Feeding thought leadership in home entertainment

14

From sustainability to product carbon footprint

15

Finally, we are thrilled to see how far we have come in supporting customers mastering the challenges in the digital domain. BBC Worldwide has chosen Sony DADC as a partner to build and operate their next-generation global distribution platform (page 8). It is exciting to see how quickly we can develop service solutions for global broadcast customers such as the BBC, helping them to establish a filebased workflow internally as well as with their global partners.

Dieter Daum CEO Sony DADC

Editorial & Layout/Graphics: Arkin Kol – Director Sales & Marketing Communication Christina Schobesberger – Marketing Communication Bettina Bräunlich – Marketing Communication Britta Hernandez – Graphic Design owner & Publisher: Sony DADC · Sonystrasse 20 · 5081 Anif/Salzburg · Austria Phone: +43 6246 880 281 · [email protected] © Sony DADC Austria AG 2011 Sony DADC disclaims all responsibility for errors in quotes & facts. We thank all of those who have contributed to this edition of the insider.

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Physical Supply Chain

Rebuilding the uk supply chain

The essence of disaster management is the ability to react to the unpredictable. however, few could have anticipated disaster on a scale that happened on the night of August 8, 2011. During riots in the uk, Sony DADC suffered the complete loss of its Enfield distribution center and all its contents, including 25 million discs, to a fire. The manner in which Sony DADC has been able to respond is testament to the company’s planning procedures, the outstanding quality of its staff and the good will shown by many companies that operate in the same market as Sony DADC. The former Enfield site.

“Within an hour of the incident at Enfield, Sony DADC’s Disaster Recovery Plan was in place, enabling crisis team to start action. As quickly as August 9, 2011 we started to re-manufacture destroyed products and expanded Direct-to-Retail shipments from our Southwater production facility, which was not affected by the riots”, explained Darren Houghton, Managing Director UK Distribution at Sony DADC. “Our supply chain IT solution proved to be robust and a strong backbone. By utilizing a multi-site approach, it guaranteed that not a single order or Electronic Data Interchange was lost, and all IT systems and services were up-and-running and not affected by the fires. In the days following the incident, our crisis team investigated alternative warehousing solutions and we have, after careful consideration from a risk mitigation and employee commuting point of view, opted for two different locations,” he added.

The two interim locations are operated by Cinram and Cert Octavian. The majority of the former Enfield volume is currently being managed out of Hoddesdon, Hertfordshire, where Cert Octavian has offered Sony DADC use of storage and distribution facilities at their main hub, just 10 miles from Sony DADC’s Enfield distribution center. The Cinram facility is located in Aylesbury, Buckinghamshire, approximately 40 miles from the former Enfield location. While Cinram is temporarily operating Pick, Pack & Ship, Returns Management, and value-added services for Sony Pictures Home Entertainment, the major studio’s points of contact have remained the same − Order Desk and Cash Collection services continue to be managed by Sony DADC staff, who are currently based at SPHE’s Golden Square offices in Central London.

Centralized IT systems allow quick, plug-and-play connection of new distribution locations.

“The level of support we have received from our customers, Sony affiliate companies, local distribution centers, and other companies from within the industry has been remarkable. Without it, such a fast reaction to market demands would not have been achieved”, commented Darren Houghton. “Our staff members have been incredibly supportive, often working extended hours to make a fast contingency solution happen as quickly and smoothly as possible” he added. All permanent staff employed at Enfield have remained with the company, and Sony DADC will also continue to work with the same temporary staff agencies to fulfill additional staff requirements as it did in Enfield.

The interim distribution locations are not far from the former Enfield site.

Contact for Sony DADC Distribution [email protected] | Phone: +43 6246 880 250

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Physical Supply Chain

Physical Supply Chain

Integrated IT systems – Sony DADC’s unbreakable supply chain backbone

Sony DADC strengthens European supply chain performance

Sony DADC is the market leader in supply chain services: This position has been gained through many years of strategic investment to strengthen its network and extend its support services. With the acquisition of Supply Chain Performance (SCP), the number one French games distribution company, Sony DADC has reached another important milestone in its supply chain strategy. The integration of SCP within Sony DADC’s pan-European distribution network reinforces the entire network, bringing more capacity and resources to the French and pan-European markets. It will also enable the company to make its integrated value chain offering − starting from authoring, disc replication and packaging to digital distribution, through to business process management and financial services − accessible to an even broader base of French games distributors. Being a major national logistics provider specializing in entertainment products, SCP offers B2B and B2C distribution services to an already diverse base of games clients, including Activision, Square Enix, Capcom, and Koch Media. Customized: Almost all our systems are created in-house, building on the extensive knowledge Sony DADC has about the home entertainment market. Being aware that no client and no market is like the other, our systems allow for full customization, meeting the distribution needs of clients and local requirements of retailers alike. However, just like off-the-shelf systems, our customized solutions meet SOX, SAS70 and ISO 27001 standards, which are key to providing high quality and reliable systems. Central: Each of our manufacturing and distribution sites operates with the same, centrally hosted systems. This means that our clients have just one point of contact for IT-related matters, and benefit from one single report covering all their routes to market. If a single site is affected by any kind of crisis, IT systems remain fully operational, as they fail over to separate backup locations. New distribution locations are quickly connected to the central system, which provides EDI (Electronic Data Interchange) connectivity to 65+ partners in Europe alone.

With a staff of 48 permanent employees, SCP generates annual turnover of approximately Euro 9 million per annum from its facilities located in Cergy, north-west of Paris. "Already a leading player in supply chain logistics across multiple territories such as France, UK, Spain, Germany, and Scandinavia, Sony DADC can now add the expertise and reputation for reliability and efficiency in a highly competitive environment that SCP enjoys here in France," commented Thierry Masson, Managing Director Sony DADC France. "This acquisition strengthens our proposition, enabling us to provide an even more powerful integrated solution to customers in France and those international customers wanting to develop their French business."

Flexible: The combination of 50 experienced in-house system developers, project managers, business analysts, and infrastructure staff ensures that customer requirements are quickly transformed into workable IT solutions. If required, we upscale our IT workforce with partnering companies. Scalable: The size and complexity of our systems are easily tailored to suit every customer’s needs – from independent local rights holders to large, global studios. The SCP warehouse in Cergy – a look inside.

Contact for Sony DADC IT Systems

Contact for Sony DADC Distribution in France

[email protected] | Phone: +43 6246 880 8645

[email protected] | Phone: +33 1 6413 8209

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Physical Supply Chain

STuDIoCAnAL adopts VMI with SRS Europe’s support

After winning last year’s Golden Palette Award from Amazon for the best logistics in the German DVD market, leading European film studio and distributor STuDIoCAnAL has now extended its relationship with Sony DADC through SRS Europe, a joint venture between Sony DADC and Sony Pictures home Entertainment which is focused on providing retail services. Working together in Germany, the two companies have applied the VMI business model to STuDIoCAnAL’s home video supply chain.

In Germany, STUDIOCANAL is one of the primary home video distributors and a leading provider of DVD and Blu-ray Disc products. During 2010, Sony DADC shipped 6.3 million units and processed almost 1 million returns for STUDIOCANAL. By implementing its VMI system, SRS Europe aims to help STUDIOCANAL to uplift its service offering to retailers through its state-of-theart new release forecasting and its dynamic assortment functionality.

themselves, with VMI this process is managed automatically by the system right through to delivery, creating a win-win situation for the supplier and the retailer. SRS Europe manages VMI relationships with retailers in most European territories and has a multilingual team interacting with retailers on behalf of its customers.

The decision to adopt SRS Europe’s VMI service comes as part of STUDIOCANAL’s continued commitment to extending its relationship with Sony DADC as well as its own restructuring initiative, which sees the company’s headquarters move to Berlin.

“It was a major logistical challenge to adopt the VMI model over such a large network of stores, and we are pleased with the way that SRS Europe has implemented this process,” commented Jan Rickers, Executive Vice President Home Entertainment Germany at STUDIOCANAL Germany. “In today’s market, efficiency in our supply chain is essential, and this is exactly what SRS Europe offers us.”

Whereas in a standard supply chain environment retail outlet staff have to assess stock levels and place orders

SRS Europe has built a broad base of knowledge in multiple distribution models, from VMI to Cross Docking

and Scan-Based Trading. The customer benefits offered by the VMI model include improved availability of products on the shelf, less returns, on-time delivery, and a reduction in mark-downs and inventory held. “With a library of more than 7,000 items, the way that STUDIOCANAL Germany supports its retail outlets is important,” commented Miguel Geli, Managing Director at SRS Europe. “We are pleased to provide that supply chain service and help support one of Europe’s leading suppliers of the home entertainment market.”

Contact for SRS Europe [email protected] | Phone: +49 151 152 098 29

About STuDIoCAnAL STUDIOCANAL is a subsidiary of the CANAL+ Group. It is one of Europe's leading companies in the market for the co-production, acquisition and distribution of international feature films on all types of media: In cinemas, video, broadcasting, video on demand. STUDIOCANAL is the only studio which operates simultaneously in three main territories across Europe: France, the United Kingdom, and Germany. The company distributes a total of more than 50 films a year throughout Europe. In Germany, STUDIOCANAL is a leading independent film company and a key player in theatrical distribution, the video market, film production, as well as international & domestic TV and new media sales. As the successor of KINOWELT (established 1984), it has a library of more than 10,000 titles in German-speaking Europe and has also established ARTHAUS, the leading consumer brand for art-house films in German-speaking Europe. Since September 2011, the German operations of STUDIOCANAL have been based in Berlin.

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Physical Supply Chain

PS3TM disc manufacturing kicks off in Russia

After successfully entering the Russian home entertainment market with a strategic acquisition of a CD/DVD manufacturing plant in Borovsk, near Moscow, earlier this year, and the subsequent commencement of Blu-ray Disc manufacturing at that site, Sony DADC has now launched local Russian PS3TM games production at the same location. This strategic development will provide new levels of support to the fast-growing PS3TM games market in Russia. The Borovsk manufacturing facility, which employs about 100 staff and is located less than one hour’s drive from Moscow, will initially provide BD-Game for PS3TM and BD-Video manufacturing capacities of around 450,000 units per month alongside extensive CD and DVD replication capacity. Providing a true one-stop-shop service for all games and home entertainment disc formats, Sony DADC will also support local customers with high-quality print work sourcing, packaging services and the copy protection solutions it offers worldwide.

The recently acquired Sony DADC optical disc manufacturing facility, designed to assist both local and international customers, will significantly decrease time to market for PS3TM games and home entertainment products. This is especially important in the games market, where PS3TM has become the most popular computer entertainment system in Russia. Alongside this local manufacturing facility, Sony DADC has established a customer service and sales support center in Moscow, close to where many of the international games publishers, major home entertainment studios and local distributors have based their Russian headquarters. “Our mission is to support customers in their global enterprise operations, and this investment in Russia completes our local operations in each of the so-called BRIC countries,” commented Johannes Stegfellner, Managing Director of Sony DADC in Russia. “Today, the games and home entertainment market is truly global, and with Sony DADC our customers have the confidence that one company can support all their local and regional operations worldwide to the same high standard”, he added. Local manufacturing of BD-Game for PS3TM will allow games publishers and distributors to deliver products

much faster to local retailers, helping to accelerate the growth of the increasingly popular PlayStation®3 format in Russia. “The arrival of local manufacturing of BD-Game for PS3TM is great news for the Russian market. Sony DADC has established Russia’s first PS3TM disc production facility at exactly the right time for us,” commented Sergey Klisho, General Manager PlayStation Russia & CIS. “Having local production resources is a major boost. Knowing that they provide the high quality and security standards, that are synonymous with Sony DADC, is equally important”, he added.

As part of the global Sony DADC network, the Borovsk facility provides customers with the company‘s market leading anti-piracy content security measures, which are fully compliant with CDSA-CPS and MPAA standards.

Contact for Sony DADC in Russia [email protected] | Phone: +7 916 990 3380

Think global, act local Sony DADC’s Russian replication facility, located in Borovsk, Kaluga, began its operations this July. Subsequently, Sony DADC has imported a Blu-ray Disc replication line from its Austria headquarters, which went live with Blu-ray Disc Video replication in September and PS3™ games production in October 2011.

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Digital Supply Chain

BBC Worldwide chooses Sony DADC to build its next-generation global distribution service

Last year, the ever-growing demand for BBC Worldwide programming prompted the broadcasting company to seek a new way to deliver its programs to global markets more quickly and efficiently. Seeking a forward-thinking partner in an RFQ process, BBC Worldwide finally chose Sony DADC to create an innovative solution that unifies global distribution on a single platform with the flexibility to accommodate the diverse requirements of individual markets while providing complete visibility across all the assets, channels, vendors, and deals that drive the company’s business.

The Sony DADC service is designed to enable more efficient processes for BBC Worldwide to deliver programs to global markets quickly while meeting increasingly complex requirements to support new business models, formats, and consumer devices. Already one of the world’s most successful exporters of television programs, BBC Worldwide has thrived in the world of digital content, with global syndication partnerships that include: iTunes, Netflix (US), Amazon (US), LoveFilm (UK), Sohu.com (China), Yota (Russia), and Videx (Japan). To maintain this growth and capitalize fully on opportunities around the globe, BBC Worldwide needed a new distribution platform and service designed to expedite the worldwide delivery of content in a digital world.

“At BBC Worldwide, volumes of content are rising quickly – from the current level of 74,000 hours per year of programming licensed across all platforms – and time to market is rapidly shrinking,” said Abigail Hughes, SVP, Sales Operations and Digital Distribution, BBC Worldwide. “To maintain optimal business performance, we want to deliver more content to all of our partners faster.” Redefining digital workflows Sony DADC is providing BBC Worldwide with a comprehensive set of services that will enable the company to exchange content more effectively, optimize shared workflows, and interact more efficiently with strategic partners, vendors, post-production companies, and distributors.

The platform is designed to provide visibility into every part of the company’s global business in order to understand the goals and deliverables for each market and territory, as well as the flexibility to provide the right level of support for their specific requirements and market development. “Leveraging our extensive experience and solutions with large studios, Sony DADC provides BBC Worldwide with the ability to benefit from a truly global digital supply chain platform that will standardize their inventory, provide real-time management of their fulfillment, and support their impressive growth across all new opportunities,” commented Trey Bradley, EVP, Video Supply Chain Services, Sony DADC. “It was important to partner with a vendor who both shared our vision and could provide the full range of asset management and fulfillment capabilities we need to manage our digital assets on a global scale,” said Hughes. “By providing a system where people throughout our business can see the program assets we have available, then get it to market faster and in more ways, we can truly realize the potential of our global brand and our outstanding content resources.” BBC Worldwide is due to go live with the global platform by the end of 2011.

Contact for Digital Distribution [email protected] | Phone: +44 207 307 9779

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Digital Supply Chain

LooT’s YouTube™ Active Camera & PlayStation®home take virtual video to the next level

Sony DADC’s internal interactive development team, LooT, recently introduced the LooT Active Camera, featuring YouTube™ functionality, to their impressive roster of unique social viewing experiences and products within the PlayStation®home environment. While the LooT Channel currently allows users to enjoy entertainment with friends in a social viewing space, the introduction of the LooT Active Camera opens the door to new realms of social video content experiences.

In the past, people who wanted to capture video from video games and other virtual environments had to invest in separate PC capture and recording equipment. Now, this capability is seamlessly integrated into the PlayStation®Home experience with the LOOT Active Camera, which allows users to save and upload videos. Coupled with controls for recording and editing provided through the XMB™ Video Editor & Uploader, users can share with friends on YouTube and across social networks. Tools for Machinima attract new creative audiences Seamless integration with YouTube makes it easier than ever for Machinima artists (virtual videographers) to share their productions across the globe. With more than 3 billion daily views, YouTube is the world’s largest video distribution platform as well as a top-tier social network through which millions of people connect, inform, and inspire each other every day.

Machinima creation using the PlayStation®Home platform has been a key focus for LOOT, which has been developing PlayStation®Home Machinima tools since it unveiled its first private spaces: The Living Room Stage Set 2, Ghostbuster’s™ Firehouse: On Location, and the Modular Stage Set 3. “With more than 100 Machinima-related items already available in the LOOT store, the addition of the LOOT Active Camera will help Machinima artists take their productions to the next level and will offer a fun new activity in PlayStation®Home to all our customers,” commented David Sterling, Vice President of Business Development at Sony DADC. “With the ability to now record and upload directly to YouTube or the PS3TM XMB, it will be easier and less expensive than ever for people to realize their creative visions on the platform”, added Sterling.

Advancements in gaming and social viewing The LOOT Active Camera is one of many advanced social viewing features released by LOOT this year. In July, LOOT’s Space Station Theatre live-streamed NASA’s historic final Space Shuttle Atlantis launch to over 5,000 live social viewers and over 20,000 replay streams in the EOD system. With many more features in development for PlayStation®Home, LOOT continues to deliver creativity and innovation for the social viewing and gaming environment.

Contact for Creative Services [email protected] | Phone: +44 207 307 9779

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Physical/Digital Transition

Establishing a number one service network for the international games industry

The games market is a major focus for Sony DADC. Thanks to an ongoing service expansion and strategic investment initiative in Australia, Russia, India and Europe, Sony DADC can offer its games clients a one-stop-shop solution. From components to final product, from warehouse to market, from authentication to cash collection − these are the three pillars of Sony DADC’s games proposition.

In Australia, the company today offers the most comprehensive service range of all International territories, including Blu-ray Disc mastering, PS3™ and PC games manufacturing, printshop, supply chain and order-to-cash, making Sony DADC the preferred partner for many top publishers in Australia. Further west, a recent disc manufacturing acquisition in Russia, followed by Blu-ray investment, enables Sony DADC to offer local PS3™ and PC games manufacturing services in the Moscow area (as reported on page 7), whereas in India the company has expanded its services by adding Blu-ray replication and integrating supply chain and credit & collection services for the Indian sub-continent. Finally, looking at Europe, investments over the years have resulted in an extensive network with distribution sites in the UK, GSA, the Nordics, and Iberia. With the recent acquisition of SCP – the market-leading supply chain provider for the games industry in France – Sony DADC has further strengthened its position for local and global games customers alike (as read on page 5). In addition to strengthening the geographic distribution, Sony DADC has invested in establishing a holistic product and service range for the games industry.

OnePlayS.com is one of the commercial download platforms, that uses Sony DADC Digital License Management to realize Digital Subscription Models. “We are currently launching our Digital Subscription Model.While doing so, we have been really pleased with the support we have received from Sony DADC and how straight-forward the integration has been”, commented Lasse Jensen, CEO of OnePlayS.com. While content distributors and e-tailers so far mainly leveraged Sony DADC’s industry-leading Digital License Management solutions, the company has now significantly expanded its games and software service portfolio. The new service offering allows content developers, owners, and distributors to better monetize their assets, focus on their core business, and decrease costs by outsourcing operational tasks such as digital content preparation, wrapping, packaging, real-time analytics services on top of order-to-cash services to Sony DADC. “With this combination of a unique geographical presence, combined with a technology leadership in Digital License Management services we are confident that we can expand our role as a reliable and futureproof service partner for the games industry" commented Wolfgang Fuchs, who is heading up the international games initiative for Sony DADC.

Consumers want to have choices when it comes to purchasing entertainment content. While Buy & Own was the only option in the past, nowadays content owners and e-tailers can offer a broader range of models, such as Try & Buy, Rental, or Subscription – all made possible with Sony DADC’s Digital License Management services.

sonydadc.com/games

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Contact for Games Services [email protected] | Phone: +43 6246 880 8069

Physical/Digital Transition

Screen Pass prevents illegal downloads of your valuable content

The last issue of the insider reported on Sony DADC’s introduction of Screen Pass, a sophisticated Digital Rights Management (DRM) solution that enables video content owners and publishers to protect their intellectual property throughout the entire content lifecycle. Very quickly after its introduction, Sony DADC discovered that Screen Pass can convert casual video pirates into valuable new customers, since they purchase movies that they cannot rip off.

Since then Sony DADC has further developed the functionality of Screen Pass. In particular, Screen Pass is now extended by measures to combat cyberlockers, where consumers are encouraged to upload content that is then offered to other consumers – a method which has become more popular than illegal Peer to Peer sharing. Through Screen Pass, Sony DADC provides an internet scanning service that identifies download links on cyberlockers and enables content owners to remove the illegitimately copied material. Another significant source of high-quality piracy early in a movie’s lifecycle is when preview copies of movies released by the publisher to journalists and other key commentators fall into the wrong hands. With the Screener disc service, Screen Pass empowers the publisher to individually watermark, label, and protect each preview disc so that when the content is copied, it can be tracked back to a specific disc and thus to a single recipient. Dutch blockbuster and Italian catalogue publishers increase sales using Screen Pass The Netherland’s most successful movie release in the last 25 years – Gooische Vrouwen – has virtually stopped piracy after the publisher of the DVD and Blu-ray Disc versions, Video Film Express, applied Screen Pass to the disc-based versions of the movie. “We are very satisfied with the performance of Screen Pass. Still, four weeks after the release date of the DVD and Blu-ray versions of the movie, not a single copy or rip tool managed to copy the disc’s content”, explained Ivo Daemen, Product Manager at Video Film Express. “Consequently, larger numbers of the movie’s fans have bought the disc through legitimate retail channels.” In addition to disc protection, the version of Screen Pass implemented for Gooische Vrouwen specifically targets cyberlocker uploaders. After the home entertainment release in the Netherlands, Sony DADC’s online scanning

Screen Pass protection throughout the entire content lifecycle.

service located dozens of infringing uploads where the movie, or a part of it, had been copied to cyberlockers. Very rapidly, all these files were removed from the cyberlockers after DMCA notices had been sent on them.

Contact for Screen Pass [email protected] | Phone: +43 6246 880 8912

At the same time, Italy-based publisher Eagle Pictures decided to secure all their DVD and Blu-ray releases with Screen Pass, including back catalogue titles. Recently, Eagle Pictures licensed the Miramax back catalogue for Blu-ray Disc releases in Italy. All of the 24 well-known titles, such as Pulp Fiction and Good Will Hunting, will be protected with Screen Pass. “As in many other countries, casual copying presents a huge challenge to the Italian home entertainment industry. Consumers not only have an appetite for new releases, but also for catalogue classics in high resolution. By only protecting our new releases, we would not fully take advantage of all our revenue opportunities,“ commented Luisa Bonalumi, Marketing Director Home Video & Theatrical at Eagle Pictures. “Screen Pass is an elegant solution that is succeeding in converting casual copiers into valuable customers, which is great news for everybody, from the content owners right through to the consumers.” Netherland’s blockbuster Gooische Vrouwen, protected by Screen Pass.

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Physical/Digital Transition

Movie Code helps monetize Germany’s interest in Tintin

Sony DADC has been working with content publishers to create new revenue streams and develop platforms to help them monetize their movie catalogues. After introducing Movie Code in the last issue of the insider, we can now report its first application in Germany by leading home video publisher, Sunfilm Entertainment.

With the upcoming theatrical release of The Adventures of Tintin (or Tim und Struppi as it is known in Germany) in 3D, now is the perfect time to offer past movies featuring Tintin, Snowy, and their friends to fans of the cartoon hero. The challenge facing Sunfilm Entertainment was to offer its customer base the maximum opportunities to own their favourite Tintin movies at minimum cost, both to themselves and to the publisher. For the first time in Germany, Sunfilm Entertainment has used Sony DADC’s revolutionary Movie Code system to offer two Tintin movies – Tim und das Geheimnis um das Goldene Vlies and Tim und die Blauen Orangen – on one disc. The first movie can be watched for free. Then, for just Euro 4.99, the customer can unlock a second bonus movie. Movie Code is an efficient marketing model for distributors – royalty costs for the additional content are activated only when the content is accessed. And the sophistication of the Digital Rights Management mechanism means that the content is entirely secure, even though it is placed on every disc.

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An extension of Sony DADC’s eBridge system, Movie Code works via the viewer activating a unique embedded code on each disc. Part of the code is displayed on the activation screen, and when this is sent by SMS to a premium service provider, the remainder of the code is sent to the user, again by text message. Then, it is a simple matter of the user entering the remainder of the code before the extra movie that was conceiled on the disc is made accessible to the consumer. The Euro 4.99 charge is paid by the user for this extra content, and this is added to their mobile phone bill by the SMS service provider.

The Movie Code disc was used as a covermount disc with the German publication Video - HomeVision and distributed to all 74,000 readers of the magazine. “We are pleased with the results that we have achieved with this innovative new platform,” commented Wolfgang Carl, CEO from Sunfilm Entertainment. “Video - HomeVision played its part – not least by running a two page editorial on Movie Code and how it works. To date, this has proved to be a very effective way of tapping into the increased interest we see in Tintin due to the major Hollywood movie release.”

Contact for eBridge Movie Code [email protected] | Phone: +43 6246 880 81622

Physical/Digital Transition

ultraViolet: Sony DADC enables hollywood’s game changer

hollywood’s efforts to boost home video sales by enabling users to watch purchased movies on multiple devices with ultraViolet (uV), an online, personal content library, provides another industry initiative tailored to Sony DADC’s end-to-end digital services platform.

UltraViolet enables users to watch purchased movies or TV shows on multiple devices - giving them greater flexibility with regard to how and where they watch their content. Once a movie or TV show has been added to a UV library, the user will have options to stream it over the internet, download it for offline viewing, or play it back on a disc. “UltraViolet offers consumers greater freedom to choose where they want to watch their content whether it's on a mobile device, computer, television set, or game console,” said Allen Lee, Vice President, Digital Solutions, Sony DADC. “Sony DADC helps content owners give consumers that seamless journey between physical and digital worlds with access to media on every device and the ability to capture every consumer touch point.”

Sony DADC’s ultraViolet approach Sony DADC’s end-to-end digital distribution platform for UltraViolet will enable content publishers of many sizes, from majors to independents, to become fully UV-compliant. The development of its UV solution is focused on providing intuitive operation and ease of use. Targeting the consumer, Sony DADC adapted its eBridge Digital Copy technology for UV to combine both title ID and specific retailer code in a unique electronic code on each DVD. With this functionality, UV consumers do not have to type in the redemption code manually to transfer the new movie to their UltraViolet locker. Today, Sony DADC is the only supply chain provider to offer content publishers a complete ready-to-go UltraViolet solution, including authoring, replication, and distribution of UV-enabled packaged media, access management via the end-to-end platform, as well as payment solutions, sales channel tracking and reporting via its market-proven eBridge Analytics platform.

Gaining momentum This fall, Warner Home Video debuted with UV releases of Horrible Bosses and Green Lantern, and it plans to launch blockbuster Harry Potter and the Deathly Hallows II on UltraViolet within the US market prior to the holiday season. Sony Pictures Home Entertainment will release The Smurfs and Friends with Benefits this December. All in all, there will be a line-up of ten titles using the UltraViolet format by the holidays. For more information about how Sony DADC can help you harness the main advantages offered by UltraViolet, please contact the UV deployment team by e-mailing [email protected].

Contact for ultraViolet [email protected]

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People, Pictures, Thoughts

Feeding thought leadership in home entertainment

Currently, the home entertainment industry is working in some of the most dynamic and challenging times it has known. In this environment it is important that the industry networks, shares opinions and creates a joint vision of where we are going and how we will get there.

German-speaking industry opinion formers discussing future opportunities.

Future perspectives at Lake Tegernsee A Sony DADC initiative designed to provide thought leadership in the home entertainment industry came through the organisation of a one-day conference in Germany this June entitled GSA Industry Forum: Future Trends in the Video Market. Based at the Seehotel Überfahrt on the shores of Lake Tegernsee, the conference provided an ideal environment for industry leaders from across Germany to get together and discuss future trends in our industry. Amongst a busy schedule, the conference discussed a diverse range of topics and heard from leading commentators and opinion formers in areas such as social media and UltraViolet. A highlight of the afternoon was a presentation from well-known trend researcher, Matthias Horx, on his vision of the evolution of media and technology. “This conference was a fantastic opportunity to bring industry leaders together and discuss the big issues that are facing our industry, from the effect technology has on media consumption patterns to the likely structure of future business models,” commented Chris Reiser, Executive Vice President at Sony DADC. “Over the years we have become so much more than just a supplier to our customers. We have a role in driving thought leadership and helping to fashion the future of our industry.”

Executives network on the fairways However, not all networking has to take place wearing a suit. The Sony DADC 5th Annual Golf Day took place in June at the East Sussex National Golf Club in England. The day was hailed as a great success, enabling customers to relax together, talk informally and play some great golf. A new innovation this year was a live scoring facility, which helped to promote a “Ryder Cup” style of play that was also new to the day. After a hard day on the course, guests were entertained long into the evening at a gala dinner. The day offered an opportunity for customers to meet Natasha Tyrell who recently joined Sony DADC from Technicolor to replace Darren Houghton, after he takes up a new role as MD of Sony DADC Australia. “The Golf Day has become a regular feature in our calendar and this year was another outstanding success for all involved,” commented Sigi Obermayr, Director Sales and Business Development at Sony DADC. “We talk with our customers almost every day, so it’s good to step away from the pressures of the office and discuss matters in a more relaxed environment.” uk & GSA Sales Contact [email protected] | Phone: +44 20 7307 9770

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At the UK Golf Day (from top to bottom and left to right): Dieter Daum, Sony DADC; Paul Chesney, Universal Pictures International Entertainment; Chris Reiser, Sony DADC; Mikael Modig, Scanbox; Gerhard Blum, Sony Music Entertainment; Natasha Tyrrell, Sony DADC; Spud, Classic Media.

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From sustainability to product carbon footprint

Ekoline – Special, eco-friendly packaging solutions

For decades, Sony DADC has pioneered sustainable product design, manufacture and distribution throughout its global operations. It is an ethos that is in the company’s DnA and runs through every part of the organization. When the company looked at this issue from the perspective of its products’ entire lifecycles, it realized it could not achieve its ultimate goal alone.

To absolutely minimize the carbon footprint of its products, Sony DADC needs the active support of all its suppliers. From raw materials to packaging, power, transport and even product recycling companies, every supplier to Sony DADC needs to contribute to this ongoing challenge. This May, Sony DADC invited 15 major European suppliers as well as customer representatives from various industries to a specially organised event at its headquarters in Austria. Through a series of workshops, presentations and brainstorming sessions, the group identified a series of improvement options and started working on a roadmap that would see them adopted throughout the collective network.

“At Sony DADC we have identified three key operating principles in reducing the negative environmental impact of our operations, increasing resource efficiency and controlling the use of environmentally related substances,” commented Maria Bauer, Environmental Officer at Sony DADC. “This event was an important development in our on-going sustainability strategy and it was great to see the commitment that our suppliers share with us. By working together, I believe that we will create a new standard in environmentally sustainable operations.”

“A History of Snow is not just a random ski movie. Thanks to Ekoline, people notice this even before they put the DVD into their player. Ekoline stands out of the shelf as much as A History of Snow stands out among freeride DVD productions. Also, there is a socio-critical aspect about A History of Snow, which is perfectly reflected by this classy, eco-conscious pack.” Matthias Mayr, Int. Elan Team Athlete

Contact for Green Manufacturing [email protected] | Phone: +43 6246 880 8018

One of the outcomes of the event was that suppliers agreed to provide production-specific data for Sony DADC's product carbon footprint calculations. Other initiatives discussed included the introduction of renewable energy where possible, the reduction of weight in packaging materials and how to avoid waste and returns. Major suppliers, customers and Sony DADC joining forces to reduce the product carbon footprint.

Ekoline is a range of special, eco-friendly packaging solutions for CD and DVD format. · FSC or PEFC certified paper and paperboard · No separation of components, easy to recycle

www.sonydadc.com

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