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

HD DVD And Windows VistaHD DVD And Windows VistaFutures and OpportunitiesFutures and Opportunities

Jordi RibasJordi RibasDirector, Technical StrategyDirector, Technical StrategyWindows Digital Media DivisionWindows Digital Media DivisionMicrosoft CorporationMicrosoft Corporation

Agenda Agenda

Why HD DVD?Why HD DVD?OpportunityOpportunity

BenefitsBenefits

DemoDemo

HD DVD ArchitectureHD DVD ArchitectureFile system, codecs, interactivity, copy protection …File system, codecs, interactivity, copy protection …

HD DVD Experience Initiative for Windows VistaHD DVD Experience Initiative for Windows Vista

SummarySummary

Call to action Call to action

Why HD DVD?Why HD DVD?

Appetite For HD Content IncreasingAppetite For HD Content Increasing

Gap between “US HDTV households” Gap between “US HDTV households” (US HHs)(US HHs) and current and current cable/satellite offerings is great market opportunitycable/satellite offerings is great market opportunity

6.1 6.1 10.0 10.0 15.7 15.7 23.3 23.3 32.5 32.5 41.9 41.9 50.4 50.4 57.3 57.3

0

10

20

30

40

2003 2004 2005 2006 2007 2008 2009 2010

US

HH

s (M

Ms)

HD Dig CableHD Dig Cable

HD SatelliteHD Satellite

Source: Forrester Research – HDTV & the Coming Bandwidth Crunch, 2/17/2005

US HHsUS HHs

Next-Gen HD Content Next-Gen HD Content OpportunityOpportunity

HDTV sales growingHDTV sales growing

Broadband connectivity explodingBroadband connectivity exploding

Interactive entertainment on Web, cell Interactive entertainment on Web, cell phone and video games becoming phone and video games becoming mainstreammainstream

DVD retail market declining DVD retail market declining Content companies looking for growth Content companies looking for growth opportunities opportunities

SolutionSolutionHD DVDHD DVD

Next-gen optical media from DVD Forum enables Next-gen optical media from DVD Forum enables HD video with advanced interactivity and internet HD video with advanced interactivity and internet connectivityconnectivity

New features provide incentive for consumers to buy new New features provide incentive for consumers to buy new (faster) PCs and HD displays(faster) PCs and HD displays

Higher capacity 30 GB discs using blue laser technologyHigher capacity 30 GB discs using blue laser technologyHD video of up to 6x SD’s resolution HD video of up to 6x SD’s resolution Lossless audio of up to 7.1 channelsLossless audio of up to 7.1 channelsAdvanced interactivityAdvanced interactivity

Overlaid menus, picture in picture, web updates, …Overlaid menus, picture in picture, web updates, …

Flexible content protectionFlexible content protectionManaged copy to HDD and portable devices, streaming, …Managed copy to HDD and portable devices, streaming, …

Warner Bros. HD DVD Warner Bros. HD DVD IntroductionIntroduction

HD DVD DifferentiatorsHD DVD Differentiators

Here today!!Here today!!

Higher proven capacity (30GB versus BD’s 25GB) Higher proven capacity (30GB versus BD’s 25GB)

Lower manufacturing cost for discs and drivesLower manufacturing cost for discs and drives

““Twin” HD DVD discs play in both DVD and Twin” HD DVD discs play in both DVD and HD DVD playersHD DVD players

Superior iHD interactivity Superior iHD interactivity Only HD DVD mandates PIP, persistent storage, Only HD DVD mandates PIP, persistent storage, and networkingand networking

Simpler, secure copy protectionSimpler, secure copy protection

People Are Noticing…People Are Noticing…

““The economics of HD-DVD make a lot more sense for us. I’m The economics of HD-DVD make a lot more sense for us. I’m starting to wonder about the manufacturing ability of Blu-ray.”starting to wonder about the manufacturing ability of Blu-ray.”- Maureen Weber, HP, quoted in the New York Times- Maureen Weber, HP, quoted in the New York Times

““With plans to release a wide range of HD DVD titles, Universal With plans to release a wide range of HD DVD titles, Universal also needed a flexible interactive layer that can scale to also needed a flexible interactive layer that can scale to accommodate new features. This is a scenario where VC-1 and accommodate new features. This is a scenario where VC-1 and iHD came out far ahead of other technologies.” iHD came out far ahead of other technologies.” - Craig Kornblau, President of Universal Studios Home Entertainment- Craig Kornblau, President of Universal Studios Home Entertainment

““The differences between the first six HD DVD movies that were The differences between the first six HD DVD movies that were released and their DVD counterparts were nothing short of released and their DVD counterparts were nothing short of astonishing…astonishing…

and regardless of what the rival Blu-ray format may bring to the 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.” table later — I'd say that HD DVD is a giant success.” - Sound and Vision Magazine- Sound and Vision Magazine

Strong Industry SupportStrong Industry Support

Strong Studio SupportStrong Studio Support200 HD DVD Titles Planned in 2006200 HD DVD Titles Planned in 2006

Strong Studio SupportStrong Studio Support200 HD DVD Titles Planned in 2006200 HD DVD Titles Planned in 2006

HD DVD ArchitectureHD DVD Architecture

HD DVD Versus DVDHD DVD Versus DVD

ParameterParameter DVDDVD HD DVDHD DVD

Storage per layerStorage per layer 4.7GB 4.7GB 15GB 15GB

Expected launch capacityExpected launch capacity n/an/a 30GB30GB

Laser wavelengthLaser wavelength 650nm 650nm 405nm 405nm

Numerical apertureNumerical aperture 0.60 0.60 0.65 0.65

Protection layerProtection layer 0.6mm0.6mm 0.6mm 0.6mm

Data transfer rateData transfer rate ~10 Mbps~10 Mbps ~30 Mbps~30 Mbps

InteractivityInteractivityiHDiHD

Co-designed by Microsoft and Disney with the Co-designed by Microsoft and Disney with the following goalsfollowing goals

Richness of designRichness of design

Ability of Ability of constrained constrained devices to devices to implementimplement

Interoperability Interoperability and and conformanceconformance

InteractivityInteractivityiHDiHD

Language elementsLanguage elementsXML for content format for images, buttons, video objects … XML for content format for images, buttons, video objects … Cascading Style Sheets (CSS) for layout, color, font type … Cascading Style Sheets (CSS) for layout, color, font type … SMIL for timing and synchronizationSMIL for timing and synchronizationECMA Script for programmabilityECMA Script for programmability

Web-like lightweight authoring model Web-like lightweight authoring model Does not require programmers (cheaper/faster to author)Does not require programmers (cheaper/faster to author)HD DVD Jumpstart Package with tools to test, debug and HD DVD Jumpstart Package with tools to test, debug and simulate interactive contentsimulate interactive content

DeclarativeDeclarative ProgrammableProgrammableMarkupMarkup StyleStyle TimingTiming ScriptScript

XML subsetXML subset CSS subsetCSS subset SMIL subsetSMIL subset ECMAScript subsetECMAScript subset

InteractivityInteractivityiHDiHD

Only HD DVD mandates picture-in-picture (PIP), Only HD DVD mandates picture-in-picture (PIP), persistent storage and networkingpersistent storage and networking

Many new consumer featuresMany new consumer featuresAnimated alpha-blended graphical menus Animated alpha-blended graphical menus

Zoom, pan & scanZoom, pan & scan

Favorite scenes and user playlists Favorite scenes and user playlists

Director’s PIP commentary over the videoDirector’s PIP commentary over the video

User bookmarks and progress barUser bookmarks and progress bar

Web downloads for latest trailers, soundtracks, new languages, Web downloads for latest trailers, soundtracks, new languages, current filmography, …current filmography, …

Games Games

… … and many more!and many more!

The Phantom Of The OperaThe Phantom Of The OperaThe Bourne SupremacyThe Bourne Supremacy

AACS Content ProtectionAACS Content Protection

A format-neutral protection for prerecorded and A format-neutral protection for prerecorded and recordable mediarecordable media

Provides significant new capabilities for permissible copying of Provides significant new capabilities for permissible copying of protected content for advanced devicesprotected content for advanced devices

Developed to create a seamless, robust and Developed to create a seamless, robust and interoperable environment for the distribution and use of interoperable environment for the distribution and use of next generation contentnext generation content

Founders are from 3 industry sectors: studios, consumer Founders are from 3 industry sectors: studios, consumer electronics, and IT industryelectronics, and IT industry

Designed to support new business modelsDesigned to support new business modelsManaged Copy, Network streaming…Managed Copy, Network streaming…

Adopted by both HD DVD and Blu-RayAdopted by both HD DVD and Blu-RayAACS specs and interim agreement available at AACS specs and interim agreement available at http://www.aacsla.comhttp://www.aacsla.com

Full agreement expected later this yearFull agreement expected later this year

AACS RobustnessAACS Robustness

AACS utilizes the Advanced Encryption Standard (AES) AACS utilizes the Advanced Encryption Standard (AES) block cipher algorithm block cipher algorithm

Cipher used with data blocks of 128 bits and keys with lengths of Cipher used with data blocks of 128 bits and keys with lengths of 128 bits128 bits

Includes a new bi-directional drive authentication protocol Includes a new bi-directional drive authentication protocol using cryptographically strong ECDSA algorithmusing cryptographically strong ECDSA algorithm

Provides for robust communication between drive and host SWProvides for robust communication between drive and host SW

OptionsOptionsEnhanced robustness: A device key set must be protected such Enhanced robustness: A device key set must be protected such that software-only attacks are, by design, not possiblethat software-only attacks are, by design, not possible

Proactive renewal: The device key set must be renewed Proactive renewal: The device key set must be renewed proactively on an 18 month scheduleproactively on an 18 month schedule

VC-1 And HD DVDVC-1 And HD DVD

3 mandatory video codecs in HD DVD for player 3 mandatory video codecs in HD DVD for player (content provider can choose)(content provider can choose)

MPEG-2, H.264/AVC, VC-1MPEG-2, H.264/AVC, VC-1

Video resolution up to 1080i or 1080pVideo resolution up to 1080i or 1080p

VC-1 = SMPTE 421M standard, March 2003VC-1 = SMPTE 421M standard, March 2003Latest video codec standard from Society of Motion Latest video codec standard from Society of Motion Picture and Television Engineers (SMPTE)Picture and Television Engineers (SMPTE)

Developed by Microsoft (Windows Media Video 9) Developed by Microsoft (Windows Media Video 9) and submitted for standardizationand submitted for standardization

Over 75 companies contributed to SMPTE effortOver 75 companies contributed to SMPTE effort

Benefits Of VC-1Benefits Of VC-1

Excellent video qualityExcellent video qualityDecoding ~2x faster than H.264/AVCDecoding ~2x faster than H.264/AVC

Efficient encoding tool availableEfficient encoding tool availableFast ~2-4x real-time encodingFast ~2-4x real-time encoding

Allows scene-by-scene re-encodingAllows scene-by-scene re-encoding

Typical bit rates ~12-16 Mbps, leaving plenty Typical bit rates ~12-16 Mbps, leaving plenty of space for bonus materials of space for bonus materials

Strong Studio supportStrong Studio supportWarner Bros, Universal and Studio Canal Warner Bros, Universal and Studio Canal have selected VC-1 for their HD DVD titleshave selected VC-1 for their HD DVD titles

Benefits Of VC-1Benefits Of VC-1

… … The image quality was superior to any of the The image quality was superior to any of the previous demos I'd seen—pure, rock solid, pristine, razor previous demos I'd seen—pure, rock solid, pristine, razor sharp, highly detailed, and virtually artifact-free are just some sharp, highly detailed, and virtually artifact-free are just some of the superlatives that come to mind ... of the superlatives that come to mind ... http://www.projectorcentral.com/hd-dvd.htmhttp://www.projectorcentral.com/hd-dvd.htm

… … it delivered some of the best video I've ever seen on a pre-it delivered some of the best video I've ever seen on a pre-recorded consumer format. Many shots are breathtaking … recorded consumer format. Many shots are breathtaking … http://hddvd.highdefdigest.com/lastsamurai.html http://hddvd.highdefdigest.com/lastsamurai.html

… … the picture quality is terrific. I’ve been watching high-the picture quality is terrific. I’ve been watching high-definition cable broadcasts for years, and the first few HD definition cable broadcasts for years, and the first few HD DVDs I viewed on the Toshiba looked even better …DVDs I viewed on the Toshiba looked even better …http://www.dvdtown.com/article/reviewofthetoshibahd-a1hd-dvdp/3255/http://www.dvdtown.com/article/reviewofthetoshibahd-a1hd-dvdp/3255/

HD DVD And HD DVD And Windows VistaWindows Vista

HD DVD Player SolutionsHD DVD Player Solutions

HD DVD InfrastructureHD DVD Infrastructure

Native Windows Vista infrastructure Native Windows Vista infrastructure components applicable to HD DVDcomponents applicable to HD DVD

MMC-5 commandsMMC-5 commands

Driver commands for AACSDriver commands for AACS

UDF 2.5 file systemUDF 2.5 file system

VC-1 video codecVC-1 video codec

MPEG-2 video codec (selected SKUs)MPEG-2 video codec (selected SKUs)

WMA Pro audio codecWMA Pro audio codec

Protected Media PathProtected Media Path

……

Microsoft’s HD DVD Experience Microsoft’s HD DVD Experience Initiative For Windows VistaInitiative For Windows Vista

Best practices for building HD DVD player on Best practices for building HD DVD player on Windows VistaWindows Vista

iHDiHDInterop Labs at MicrosoftInterop Labs at Microsoft

Test suites to work closely with the VPC iHD test Test suites to work closely with the VPC iHD test vectors and sample codevectors and sample code

Facilitates compliance of iHD implementations on Facilitates compliance of iHD implementations on Windows VistaWindows Vista

Training supportTraining support

VC-1VC-1SDK for codec updates / optimizationsSDK for codec updates / optimizations

Additional ResourcesAdditional Resources

Microsoft HD DVD Experience InitiativeMicrosoft HD DVD Experience Initiativehddvdei @ microsoft.comhddvdei @ microsoft.com

Microsoft websitesMicrosoft websitesGeneral: http://www.microsoft.com/hddvdGeneral: http://www.microsoft.com/hddvd

HD DVD AuthoringHD DVD Authoringhttp://www.microsoft.com/windows/windowsmedia/forpros/http://www.microsoft.com/windows/windowsmedia/forpros/hddvd/default.aspxhddvd/default.aspx

Includes link to HD DVD Interactivity Jumpstart PackageIncludes link to HD DVD Interactivity Jumpstart Package

OtherOtherDVD Forum: http://www.dvdforum.org/forum.shtmlDVD Forum: http://www.dvdforum.org/forum.shtml

Toshiba website http://www.tacp.toshiba.com/hddvd/Toshiba website http://www.tacp.toshiba.com/hddvd/

AACS: www.aacsla.comAACS: www.aacsla.com

SummarySummary

All the key pieces are all in place for next All the key pieces are all in place for next generation DVDgeneration DVD

HD DVD provides outstanding value with HD DVD provides outstanding value with superior consumer featuressuperior consumer features

Windows Vista includes native Windows Vista includes native infrastructure for HD DVD playbackinfrastructure for HD DVD playback

Launching HD DVD Experience Initiative for Launching HD DVD Experience Initiative for Windows VistaWindows Vista

SerenitySerenity

Call To ActionCall To Action

Build HD DVD experiences for PCs!Build HD DVD experiences for PCs!

Participate in our HD DVD Experience Participate in our HD DVD Experience InitiativeInitiative

© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions,

it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.