Advanced Access Content Advanced Access Content System (AACS) System (AACS)

Industry BriefingIndustry Briefing

July 14, 2004

7/14/2004 2

Founders drawn from 3 key Founders drawn from 3 key industry sectors: studios, industry sectors: studios, consumer electronics and IT consumer electronics and IT industry industry

Founders:Founders:IBM IBM IntelIntelMicrosoftMicrosoftPanasonicPanasonic

AACS LA StructureAACS LA Structure

SonySonyToshibaToshibaThe Walt Disney The Walt Disney CompanyCompanyWarner Bros.Warner Bros.

7/14/2004 3

Create a seamless, robust and Create a seamless, robust and interoperable environment for the interoperable environment for the distribution and use of next-generation distribution and use of next-generation contentcontent

Develop, promote and license technologies designed to Develop, promote and license technologies designed to enhance digital entertainment experiences for enhance digital entertainment experiences for consumersconsumersExciting, flexible new entertainment options for Exciting, flexible new entertainment options for consumers in stand alone, networked home and consumers in stand alone, networked home and portable environmentsportable environmentsSolution is format-neutral and designed for next-Solution is format-neutral and designed for next-generation optical media formats for use with PCs and generation optical media formats for use with PCs and other consumer electronics devicesother consumer electronics devices

Create opportunities for new business models for content providers, distributors, content aggregators and device manufacturers

Makes possible e-commerce enhanced content while Makes possible e-commerce enhanced content while accelerating the legitimate flow of next generation accelerating the legitimate flow of next generation content, including high definition contentcontent, including high definition contentGives providers new distribution management options Gives providers new distribution management options for consumer-friendly authorized usefor consumer-friendly authorized use

Provide a core entity to license the Provide a core entity to license the technologytechnology

Strong partnership among the IT, Entertainment, and Strong partnership among the IT, Entertainment, and CE industriesCE industries

ObjectivesObjectives

7/14/2004 4

Expanded Usage ScenariosExpanded Usage Scenarios

Local Playback

Home Media Server

Electronic Distribution with Secure Copy

Portable Device

DRM

7/14/2004 5

Benefits: Benefits: Expanded Business Expanded Business OpportunitiesOpportunities

Virtual Inventory – Virtual Inventory – vast library of content can vast library of content can be downloaded, copied or burned to media, be downloaded, copied or burned to media, interoperable with:interoperable with:

Online servicesOnline servicesRetail kiosks and storesRetail kiosks and stores

Premium accessPremium access – unlock prerecorded content – unlock prerecorded content and access stream content via online transaction and access stream content via online transaction or authorizationor authorization

Additional contentAdditional contentAlternate versionsAlternate versions

Advanced playback options:Advanced playback options:Customized content (e.g. additional Customized content (e.g. additional interactivity)interactivity)Customized usage (e.g. prerelease Customized usage (e.g. prerelease distribution)distribution)

7/14/2004 6

AACS EcosystemAACS EcosystemThe key players:The key players:

AACS LAAACS LADevelops and maintains the specDevelops and maintains the specManages licensing activitiesManages licensing activitiesIssues encryption keysIssues encryption keys

Content ProvidersContent ProvidersCreate/own/distribute the copyrighted materialsCreate/own/distribute the copyrighted materialsDetermine usage conditionsDetermine usage conditions

ReplicatorsReplicatorsMass produce mediaMass produce mediaEncrypt and bind with usage conditions and key management Encrypt and bind with usage conditions and key management informationinformation

AdoptersAdoptersBuild licensed software/hardware productsBuild licensed software/hardware products

End result - End result - consumers have new ways of enjoying contentconsumers have new ways of enjoying content

7/14/2004 7

*Prerecorded and writable

AACS: Advanced, format-neutral protection for next generation AACS: Advanced, format-neutral protection for next generation audiovisual content for a variety of underlying formatsaudiovisual content for a variety of underlying formats

AACSCSS

DVD-9 HD DVD Other formats

Standard DefHigh Definition

Legacy Format Advanced Format

Blu-ray Disc

AACS FrameworkAACS Framework

7/14/2004 8

AACS TechnologyAACS TechnologyStrong cryptographyStrong cryptography

Advanced Encryption Standard with 128-bit keysAdvanced Encryption Standard with 128-bit keysNext-generation media key blockNext-generation media key block

Revocation of compromised devicesRevocation of compromised devicesPrecise – affects only compromised keyPrecise – affects only compromised keyEfficient tree-based, broadcast encryptionEfficient tree-based, broadcast encryption

Enhanced drive authenticationEnhanced drive authenticationSupport for advanced operations such as “move”Support for advanced operations such as “move”Use of network connectivity to enable enhanced usesUse of network connectivity to enable enhanced usesNew approaches to enhance robustness of implementationsNew approaches to enhance robustness of implementations

Combination of proactive software renewal with revocation Combination of proactive software renewal with revocation Reviewing potential solutions to thwart professional mass Reviewing potential solutions to thwart professional mass distribution of unauthorized recordings (e.g. theatrical distribution of unauthorized recordings (e.g. theatrical camcorder piracy)camcorder piracy)

7/14/2004 9

Advantages of AACS Advantages of AACS ApproachApproachMajor benefits for ConsumersMajor benefits for Consumers

Supports delivery of next-generation content, including high definitionSupports delivery of next-generation content, including high definitionProvides increased flexibility, while remaining transparent to legitimate Provides increased flexibility, while remaining transparent to legitimate usersusersEnables new entertainment experiences across multiple devicesEnables new entertainment experiences across multiple devices

Major benefits for StudiosMajor benefits for StudiosEnables new entertainment business models Enables new entertainment business models Protects copyrighted works on next generation mediaProtects copyrighted works on next generation mediaEncourages legitimate use of contentEncourages legitimate use of content

Major benefits for Technology providersMajor benefits for Technology providersAccelerates next-generation content flow including high definitionAccelerates next-generation content flow including high definitionIncreases demand for infrastructure services Increases demand for infrastructure services Provides even playing field for technology companies to compete for Provides even playing field for technology companies to compete for solutions and servicessolutions and servicesLow implementation costsLow implementation costs

Participation from industry leaders across the value chainParticipation from industry leaders across the value chainContent, Information Technology, Consumer ElectronicsContent, Information Technology, Consumer Electronics

7/14/2004 10

Status and OutlookStatus and OutlookSpecification under DevelopmentSpecification under Development

Three specification documents:Three specification documents:Common cryptographic elements: revision 0.9Common cryptographic elements: revision 0.9General prerecorded optical media protection: revision 0.7General prerecorded optical media protection: revision 0.7General recordable optical media protection: revision 0.6General recordable optical media protection: revision 0.6

Additional media-format adaptations required, in Additional media-format adaptations required, in consultation with format proponentsconsultation with format proponents

DVD-9DVD-9HD DVDHD DVDBlu-ray DiscBlu-ray DiscOther media formatsOther media formats

Licenses Available in ‘04 Licenses Available in ‘04 Evaluator, Implementer, Content Participant, OthersEvaluator, Implementer, Content Participant, OthersTerms and conditions (including fees) designed to Terms and conditions (including fees) designed to facilitate broad adoption of technology and enable new facilitate broad adoption of technology and enable new lines of business for the affected industrieslines of business for the affected industries

7/14/2004 11

SummarySummaryUnprecedented cross industry Unprecedented cross industry collaboration to facilitate next collaboration to facilitate next generation content distributiongeneration content distributionEnables new, flexible ways to enjoy Enables new, flexible ways to enjoy content, while protecting content, while protecting copyrighted workscopyrighted worksTechnical specifications and license Technical specifications and license arrangements anticipated later this arrangements anticipated later this yearyearDevelopments and updates available Developments and updates available at WWW.AACSLA.COMat WWW.AACSLA.COM