Digital Entertainment Content Ecosystem

Copyright 2010 Digital Entertainment Content Ecosystem (DECE) LLC

Who is DECE?

• U.S. limited liability company (legal entity) organized to – Develop and license specifications for ecosystem of distributing

digital entertainment content

– Operate an open, interoperable digital rights locker as a shared utility for ecosystem participants

– Create and help promote a consumer brand providing assurance of choice, control and consistent experience of how-it-works

• Open for international participation by any company/trade association engaged in business related to digital entertainment content

• First members in June 2008; now almost 60 members

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- Digital Entertainment Content Ecosystem (DECE) LLC -

DECE Goals• Best consumer experience for digital content distribution:

– Open market: interoperable devices, multiple retailers

– Demystify digital by establishing a consumer brand and helping B2C-facing companies deliver on its promise

– Ownership rights “in the cloud” across multiple formats: progressive download, stream (remote access), physical copy

• Lower investment risk, lower expenses for DECE adopters– Shared, variable-cost Rights Locker + access to scale-economics

B2B service providers

– Digital supply chain rationalization (cost and feasibility issue today)

– Standardized B2B relationships/roles and policies for efficiency

• Extensive use of existing industry standards

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DECE Participants (partial list)

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Electronic Sell-Through Today

• Silos limit consumer options to a single device platform and a single retailer for purchasing content

• Additional service silos further fragment the market and lower consumers’ perceived value of the ecosystems

• Digital services’ format war hinders consumer adoption

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Copyright 2010 Digital Entertainment Content Ecosystem (DECE) LLC

“Problem Statement” For Industry

Weak Consumer Value

Proposition

PoorInvestment & Ops

Economics

Inaccessible Stalled Oligarchic

Marketplace

• Lack of certainty

• Lack of control

• Lack of choice

• “Bring your own” digital factory / supply chain

• File type proliferation = massive redundancy

• Manpower / time for custom legal deals and integration

• “Silo” or stay home…

• Limited market reach

• Fragmented efforts and information

Goal: Open Marketplace for Digital

• Cross-platform• Interoperable Rights locker• Domain usage model

• Remote access• Sharing within a family• Export to Physical Media

DECE OnlineRetailer

DECE OnlineRetailer

DECE OnlineRetailer

DECE OnlineRetailer

DECE

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Key DECE Ecosystem RolesDefined by specs and legal agreements

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DigitalService

Providers

Retailers

Device Makers

DECECoordinator

Interfaces to DECE Coordinator to provides content fulfillment services

Customer-facing storefront service sells DECE content

Manufacturer of compliant devices to play ecosystem content

Manages DECE Locker Accounts/Device DomainsFacilitates cross-service and device compatibility

Locker AccessService

Providers

Consumer-facing streaming service sells DECE access service (or bundles w/ other bus model)

Content Providers

Licenses content into the Ecosystem

Usage Model: Toward “Buy Once, Play Anywhere”

Remote access streaming to various devices

Compatibility across

many devices

Physical Media

Rights Locker

….. …..

…..…..

Content Owners Online Retailers• Mass market for digital content• Enhanced value of content• Supply chain optimization• Competitive marketplace• Solution to interoperability

• Enhanced value of service • Lower barrier to entry • Competitive marketplace • Increased device reach• Solution to interoperability• Mass market for digital content

CE/IT Companies Consumer• Enhanced value of devices • Lower barrier to entry• Competitive marketplace • Greater access to content• Solution to interoperability • Mass market for devices

• Purchasing an experience, not a format • New ways to acquire and access content• Authorized sharing within household• Greater choice of interoperable devices• Choice of digital retailers

Summary: What We All Gain

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Copyright 2010 Digital Entertainment Content Ecosystem (DECE) LLC