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The Future of Content, Part 3: Management, Distribution,

Synergies

HD

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HD

• On the GroundWhat’s happening in the Consumer Market?

• Impact to IFE – Short Term

• Impact to IFE – Longer Term

• What does the future look like?

3

On the Ground• Consumer Quiz

Got it ? Want it? Need it?

• Cost of sets decreasing significantly, cost to produce in HD also improving

• Fast-Paced Changes Unfolding Before UsCountry conversion schedules to DTV, more productions shot in HD, more HD Nets cropping up, new applications running video, smaller AND larger viewing, short form content

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On the Ground

• Discovery as an ExampleLaunched Discovery HD Theater in US – 2002February 2005 – KoreaDecember 2005 – Japan and CanadaFebruary 2006 – Germany and AustriaSpring 2006 – UK and Ireland

• Presently: 100% HD 24/7, 1060i, no up-conversion, 5.1 Dolby surround sound

• More than 1000 hrs of HD content currently, all brand definitional and marquee programs across other core Networks being shot in HD

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On the Ground

• HD Basicshttp://dhd.discovery.com/Another good resource – howstuffworks.com

• 480, 720, 1080, and “i” vs “p”, lots of terms tossed about

• DTV is not HDTV, yet. HD is the highest of the DTV standards

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Impact to IFE – Short Term

• Mainly: aspect ratios for some TV programming Already seeing more 16:9 originals vs 4:3

• Getting higher quality/better looking content, even if down converted

• Possible cost of getting what you want/need, or impact to availability/choice

• With new media = file types, content length, pre-purposed and original, not re-purposed or shorter versions = more variety, choice

• Content windowing?

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Impact to IFE – Longer Term

• Content will looker better and better• Definitely the cost to get what you want as you

want it, if not in synch with consumer market • Definitely more short form programming

available, thanks to DTV and New Media outletsFrom known and unknown new media outlets: mobile phones, iTV, broadband, iTunes, PDAs, VOD, web, etc.

• If HD becomes a consideration for IFE: capacity/bandwidth, needs min MPEG2 & high bit rate, so impact to current spec

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The Future

• HDTV and HD quality fast becoming the norm, not a novelty, on the ground

• Longer form, cinematic experience in the home juxtaposed with shorter form, possibly lesser quality on the go

• 4:3 will eventually fade away

• Content windows completely different