HD DVD And Windows Vista Futures and Opportunities

HD DVD And Windows Vista Futures and Opportunities Jordi Ribas Director, Technical Strategy Windows Digital Media Division Microsoft Corporation

Agenda Why HD DVD? Opportunity Benefits Demo HD DVD Architecture File system, codecs, interactivity, copy protection … HD DVD Experience Initiative for Windows Vista Summary Call to action

Why HD DVD?

Appetite For HD Content Increasing Gap between “US HDTV households” (US HHs) and current cable/satellite offerings is great market opportunity US HHs 6. 1 10. 0 15. 7 23. 3 32. 5 41. 9 50. 4 57. 3 2005 2006 2007 2008 2009 2010 US HHs (MMs) 40 30 HD Dig Cable HD Satellite 20 10 0 2003 2004 Source: Forrester Research – HDTV & the Coming Bandwidth Crunch, 2/17/2005

Next-Gen HD Content Opportunity HDTV sales growing Broadband connectivity exploding Interactive entertainment on Web, cell phone and video games becoming mainstream DVD retail market declining Content companies looking for growth opportunities

Solution HD DVD Next-gen optical media from DVD Forum enables HD video with advanced interactivity and internet connectivity New features provide incentive for consumers to buy new (faster) PCs and HD displays Higher capacity 30 GB discs using blue laser technology HD video of up to 6 x SD’s resolution Lossless audio of up to 7. 1 channels Advanced interactivity Overlaid menus, picture in picture, web updates, … Flexible content protection Managed copy to HDD and portable devices, streaming, …

Warner Bros. HD DVD Introduction

HD DVD Differentiators Here today!! Higher proven capacity (30 GB versus BD’s 25 GB) Lower manufacturing cost for discs and drives “Twin” HD DVD discs play in both DVD and HD DVD players Superior i. HD interactivity Only HD DVD mandates PIP, persistent storage, and networking Simpler, secure copy protection

People Are Noticing… “The economics of HD-DVD make a lot more sense for us. I’m starting to wonder about the manufacturing ability of Blu-ray. ” - Maureen Weber, HP, quoted in the New York Times “With plans to release a wide range of HD DVD titles, Universal also needed a flexible interactive layer that can scale to accommodate new features. This is a scenario where VC-1 and i. HD came out far ahead of other technologies. ” - Craig Kornblau, President of Universal Studios Home Entertainment “The differences between the first six HD DVD movies that were released and their DVD counterparts were nothing short of astonishing… and regardless of what the rival Blu-ray format may bring to the table later — I'd say that HD DVD is a giant success. ” - Sound and Vision Magazine

Strong Industry Support

Strong Studio Support 200 HD DVD Titles Planned in 2006

Strong Studio Support 200 HD DVD Titles Planned in 2006

HD DVD Architecture

HD DVD Versus DVD Parameter Storage per layer Expected launch capacity Laser wavelength Numerical aperture Protection layer Data transfer rate DVD HD DVD 4. 7 GB 15 GB n/a 30 GB 650 nm 405 nm 0. 60 0. 65 0. 6 mm ~10 Mbps ~30 Mbps

Interactivity i. HD Co-designed by Microsoft and Disney with the following goals Richness of design Ability of constrained devices to implement Interoperability and conformance

Interactivity i. HD Declarative Markup XML subset Style CSS subset Programmable Timing SMIL subset Script ECMAScript subset Language elements XML for content format for images, buttons, video objects … Cascading Style Sheets (CSS) for layout, color, font type … SMIL for timing and synchronization ECMA Script for programmability Web-like lightweight authoring model Does not require programmers (cheaper/faster to author) HD DVD Jumpstart Package with tools to test, debug and simulate interactive content

Interactivity i. HD Only HD DVD mandates picture-in-picture (PIP), persistent storage and networking Many new consumer features Animated alpha-blended graphical menus Zoom, pan & scan Favorite scenes and user playlists Director’s PIP commentary over the video User bookmarks and progress bar Web downloads for latest trailers, soundtracks, new languages, current filmography, … Games … and many more!

The Phantom Of The Opera The Bourne Supremacy

AACS Content Protection A format-neutral protection for prerecorded and recordable media Provides significant new capabilities for permissible copying of protected content for advanced devices Developed to create a seamless, robust and interoperable environment for the distribution and use of next generation content Founders are from 3 industry sectors: studios, consumer electronics, and IT industry Designed to support new business models Managed Copy, Network streaming… Adopted by both HD DVD and Blu-Ray AACS specs and interim agreement available at http: //www. aacsla. com Full agreement expected later this year

AACS Robustness AACS utilizes the Advanced Encryption Standard (AES) block cipher algorithm Cipher used with data blocks of 128 bits and keys with lengths of 128 bits Includes a new bi-directional drive authentication protocol using cryptographically strong ECDSA algorithm Provides for robust communication between drive and host SW Options Enhanced robustness: A device key set must be protected such that software-only attacks are, by design, not possible Proactive renewal: The device key set must be renewed proactively on an 18 month schedule

VC-1 And HD DVD 3 mandatory video codecs in HD DVD for player (content provider can choose) MPEG-2, H. 264/AVC, VC-1 Video resolution up to 1080 i or 1080 p VC-1 = SMPTE 421 M standard, March 2003 Latest video codec standard from Society of Motion Picture and Television Engineers (SMPTE) Developed by Microsoft (Windows Media Video 9) and submitted for standardization Over 75 companies contributed to SMPTE effort

Benefits Of VC-1 Excellent video quality Decoding ~2 x faster than H. 264/AVC Efficient encoding tool available Fast ~2 -4 x real-time encoding Allows scene-by-scene re-encoding Typical bit rates ~12 -16 Mbps, leaving plenty of space for bonus materials Strong Studio support Warner Bros, Universal and Studio Canal have selected VC-1 for their HD DVD titles

Benefits Of VC-1 … The image quality was superior to any of the previous demos I'd seen—pure, rock solid, pristine, razor sharp, highly detailed, and virtually artifact-free are just some of the superlatives that come to mind. . . http: //www. projectorcentral. com/hd-dvd. htm … it delivered some of the best video I've ever seen on a prerecorded consumer format. Many shots are breathtaking … http: //hddvd. highdefdigest. com/lastsamurai. html … the picture quality is terrific. I’ve been watching highdefinition cable broadcasts for years, and the first few HD DVDs I viewed on the Toshiba looked even better … http: //www. dvdtown. com/article/reviewofthetoshibahd-a 1 hd-dvdp/3255/

HD DVD And Windows Vista

HD DVD Player Solutions

HD DVD Infrastructure Native Windows Vista infrastructure components applicable to HD DVD MMC-5 commands Driver commands for AACS UDF 2. 5 file system VC-1 video codec MPEG-2 video codec (selected SKUs) WMA Pro audio codec Protected Media Path …

Microsoft’s HD DVD Experience Initiative For Windows Vista Best practices for building HD DVD player on Windows Vista i. HD Interop Labs at Microsoft Test suites to work closely with the VPC i. HD test vectors and sample code Facilitates compliance of i. HD implementations on Windows Vista Training support VC-1 SDK for codec updates / optimizations

Additional Resources Microsoft HD DVD Experience Initiative hddvdei @ microsoft. com Microsoft websites General: http: //www. microsoft. com/hddvd HD DVD Authoring http: //www. microsoft. com/windowsmedia/forpros/hd dvd/default. aspx Includes link to HD DVD Interactivity Jumpstart Package Other DVD Forum: http: //www. dvdforum. org/forum. shtml Toshiba website http: //www. tacp. toshiba. com/hddvd/ AACS: www. aacsla. com

Summary All the key pieces are all in place for next generation DVD HD DVD provides outstanding value with superior consumer features Windows Vista includes native infrastructure for HD DVD playback Launching HD DVD Experience Initiative for Windows Vista

Serenity

Call To Action Build HD DVD experiences for PCs! Participate in our HD DVD Experience Initiative

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