May 25, 2009 CCC Co.,Ltd. TSUTAYA TV SBU

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1 TSUTAYA TV Service Overview May 25, 2009 CCC Co.,Ltd. TSUTAYA TV SBU 1

2 1. Concept Physical & Digital of Hi Def Expose 32,000,000 TSUTAYA Members to the superior experience of High Def, through coordinated promotions and services across all TSUTAYA platforms, with calls to action towards the primary vehicle for High Def Blu-ray Disc. 2

3 1. Concept Brand Physical Experience TSUTAYA/TSUTAYA RECORDS TSUTAYA online/tsutaya DISCAS Digital Experience TSUTAYA TV User Choice Real Internet (Online) Digital (Online) Rent Rental by Mail VOD Streaming-VOD Download-VOD Buy Sell-Thru EST (DTO) Download Sell Thru & Export EC 3

1. Concept Rental Sell Thru Physical VOD

4 1. Concept Rental Sell Thru Physical VOD (Rental) H.264ARIB/Hi Def Streaming VOD(CBR) Download VOD(VBR) Consumer IPTV DVR EST (Sell Thru) H.246ARIB/Hi Def E-Sell Thru (VBR) EC Rental by mail PC Sell Thru EC Online Rental by mail Mobile Sell Thru EC 4

5 2. Service Overview TSUTAYA TV offers three types of service: 1. Streaming-VOD (Hi Def and Standard Def) H.264,6.0Mbps,Constant Bit Rate (Hi Def) 2. Download-VOD (Hi Def only) H.264,Ave10.0Mbps-Max 20.0Mbps,Variable Bit Rate 3. EST (DTO) & Export (Hi Def only,7 types of Export Media) H.264,Ave10.0Mbp-Max20.0Mbps,Variable Bit Rate 5

6 2. Service Overview (Resolution) Blu-ray Disc represents the ultimate in entertainment video/sound resolution. Tsutaya will actively promote the sell-thru and rental of Blu-ray, but feel the need to have our customers make informed, educated choices. As of December, 2008, the installed base of digital TVs in Japan exceeded 27 million units. The Japanese tend to be satisfied with the high def content they passively receive over digital terrestrial. Educating customers on the superior quality of Blu-ray, and promoting this as the ultimate home entertainment format, will be crucial to the future growth of our industry. Best Better ~ Better Good Ave 40Mbps Max 70Mbps Download H.264 Hi Def VBR Ave 10Mbps Max 20Mbps Digital Terrestrial 17Mbps/CBR Streaming H.264 Hi Def CBR 6Mbps DVD Standard Def 4Mbps 6

7 2. Service Overview (Pricing) Streaming-VOD,Download-VOD Same Pricing Movies (excludes 5% tax) TV Series IPTV-VOD (HD) H.264ARIB Current 600 (VP 48h) Catalog 600 (VP 48h) Episode #1: Free A la Carte: 300 (VP 48h) MINi Pack (4-5eps) 285 x Episodes (VP 72h) Half Season Pack: 270 x Episodes (VP 2 weeks) 16:9 Full Season Pack: 240 x Episodes (VP 2 weeks) IPTV-VOD (SD) H.264ARIB 16:9 Current 500 (VP 48h) Catalog 500 (VP 48h) Episode #1: Free A la Carte: 240 (VP 48h) Mini Pack (4-5eps) 228 x Episodes (VP 72h) Half Season Pack: 216 x Episodes (VP 2 weeks) Full Season Pack: 192 x Episodes (VP 2 weeks) IPTV-VOD (SD) H.264ARIB 4:3 Current 400 (VP 48h) Catalog 400 (VP 48h) Episode #1: Free A la Carte: 200 (VP 48h) Mini Pack (4-5eps) 190 x Episodes (VP 72h) Half Season Pack: 180 x Episodes (VP 2 weeks) Full Season Pack: 160 x Episodes (VP 2 weeks) 7

8 2. Service Overview (Pricing) EST (Download) Pricing Movie Basic Price EST Price 3,500 Notes (excludes 5% tax) Prices may very per title Prices include the ability for up to two exports TV Series (excludes 5% tax) a la carte Half Season Pack Full Season Pack Notes EST Price 850 8,250 (ex;11episodes) 14,300 (ex;22episodes) BOX Pricing: Per episode the no. of episodes Per 1episode Prices include the ability for up to two exports Notes:Customers have to pay the cost of blank media to export plus this EST price. 8

9 3. Hollywood Major Studio Partners パラマウントピクチャーズ Paramount Digital Entertainment International ワーナーエンターテイメントジャパン株式会社 Warner Entertainment Japan Inc NBCユニバーサルインターナショナルテレビジョンディストリビューション NBC Universal International Television Distribution ウォルトディズニージャパン株式会社 THE WALT DISNEY COMPANY (JAPAN)LTD. 20thセンチュリーフォックステレビジョン (Streaming-VOD Only) TWENTIETH CENTURY FOX COMPANY 9

4. Distribution Pattern Overview Streaming Back-End (TSUTAYA TV) Download Back-End (TSUTAYA TV) Streaming Download DRM Request TSUTAYA TV H.264/ARIB CBR Streaming VOD TSUTAYA TV H.

10 4. Distribution Pattern Overview Streaming Back-End (TSUTAYA TV) Download Back-End (TSUTAYA TV) Streaming Download DRM Request TSUTAYA TV H.264/ARIB CBR Streaming VOD TSUTAYA TV H.264/ARIB VBR Download VOD/EST TSUTAYA-BOX (T-Box) Download Command TSUTAYA TV Official Page TSUTAYA TV Service Streaming-VOD Download-VOD EST&Export HDMI v1.3a DVR Intelligent STB (T-Box) Export etc. 10

11 5. Export of EST Hi Def File Download Back-End (TSUTAYA TV) Download DRM Request TSUTAYA TV Official Page TSUTAYA-BOX (T-Box) Download Command TSUTAYA TV H.264/ARIB VBR Download (EST) Exports Rights Twice BD-R/RE (AACS) CPRM/DVD-R DL (AACS) HDMI v1.3a DVR T-Box HDD 320GB-1.0TB ivdr-s (SAFIA) SDHC/Micro SDHC Memory Stick PRO Duo Cards HD SD Down-Convert VGA ( ) / QVGA ( ) 11

12 5. Export of EST Hi Def File Of the 13 Export Devices supported by Marlin DRM (of which 4 are audio), 4 types that are HI-Def and 3 types that are Standard Def (such as Memory Stick) have been already approved by 4 Hollywood Partners for TSUTAYA TV. From Content Providers, we request the same 7 device formats: 1. AACS Blu-ray Disc Recordable for BD-R/RE. 2. AACS Blu-ray Disc Recordable for Red Laser Media. 3. CPRM for SD Video. 4. MGR(SVR) for Memory Stick PRO. 5. MGR(SVR) for EMPR. 6. DTCP-IP 7. SAFIA for ivdr TV Recording. - Blu-ray - DVD-R DL (AVCREC) - SD Card - Memory Stick PRO - Network WALKMAN - DLNA - ivdr-s 8. VCPS. 9. CPRM for DVD. - (CD-RW,DVD-RW) - (DVD-R) 12

13 6. TSUTAYA TV Enabled TVs 1. HITACHI LCD Wooo Full HD, Networked Recordable Model Built-in 250GB HDD and ivdr-s Slot, Now on sale UT-770 Series (47,42,37, 32 ) TSUTAYA TV Download Service Enabling TVs 13

14 6. TSUTAYA TV Enabled TVs 2. HITACHI LCD Wooo Full HD, Networked Recordable Model Built-in 250GB HDD and ivdr-s Slot,on sale from May 15,2009 UT-800 Series (47,42,37, 32 ) TSUTAYA TV Download Service Enabling TVs New 14

15 6. TSUTAYA TV Enabled TVs 3. HITACHI PDP Wooo Full HD, Networked Recordable Model Built-in 250GB HDD and ivdr-s Slot,on sale from May 15,2009 XP03 / HP03 Series (50,46,42 ) TSUTAYA TV Download Service Enabling TVs New 15

16 4. TSUTAYA TV Enabled TVs 4. HITACHI LCD Wooo Full HD, Networked Recordable Model Built-in 250GB HDD and ivdr-s Slot, Now on sale XP03 / WP03 Series (42,37, 32 ) TSUTAYA TV Download Service Enabling TVs New 16

17 4. TSUTAYA TV Enabled TVs HITACHI Wooo Full HD Export (twice) Exportable recording media that Marlin DRM covers are below 7 kinds. Exportable recording media that Wooo covers below is 1 kind. Blu-ray DVD-R DL SDHC Card Memory Stick Pro Duo Card Network WALKMAN DLNA ivdr-s AACS AACS CPRM MGR MGR DTCP-IP SAFIA

to reach key age groups through appropriate channels: physical store/mobile, web, and TSUTAYA TV.

18 5. Target User Segmentation Physical/Mobile TSUTAYA/TSUTAYA online Mobile 20 s demographic Web TSUTAYA online Web/TSUTAYA DISCAS 30 s demographic IPTV TSUTAYA TV/acTVila VIDEO-full Core User 40 s demographic Tsutaya is able to reach key age groups through appropriate channels: physical store/mobile, web, and TSUTAYA TV. For CCC Group, TSUTAYA TV is positioned as the crucial platform through which to promote high def content to higher age/income demographic. 18

19 6. One Source Multi Use TSUTAYA TV Purchase Page Streaming-VOD Download-VOD EST Watch Trailer Add to list Review QR Code to Buy Blu-ray Disk &DVD Jump to Tsutaya Online Mobile EC page 19

20 6. One Source Multi Use TSUTAYA TV Sell Thru Page Export Media 20

21 7. TSUTAYA TV Official Home Page 21

22 7. TSUTAYA TV Official Home Page

ivdr Business Takes a Leap Forward!

ivdr Consortium General Meeting 2009 動きはじめた ivdr ビジネス!!! ivdr Business Takes a Leap Forward! Hitachi Global Storage Technologies Japan Fumio Kugiya (Chairman) 1 What is ivdr? HDD High Capacity / Low Price