1 The Internet & New Networking Technologies Advisory Panel Michael Childers LightStream...

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The Internet & New The Internet & New Networking Technologies Networking Technologies

Advisory PanelAdvisory Panel

Michael ChildersMichael Childers

LightStream CommunicationsLightStream Communications

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Topics to be covered:Topics to be covered:

Decentralized open-source Decentralized open-source softwaresoftware

Digital supply chainDigital supply chain Digital rights management (DRM)Digital rights management (DRM) MPEG 4 and MPEG 7MPEG 4 and MPEG 7 From From display-based display-based to to transport-transport-

basedbased

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Content Services Provisioning:Content Services Provisioning:

1. Transaction Processing (TP)1. Transaction Processing (TP) 2. Cassette Quality Control (CQC)2. Cassette Quality Control (CQC)

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Proposition:Proposition:

That the TP/CQC That the TP/CQC value proposition value proposition is is d’entre les morts,d’entre les morts, rendered rendered

obsolete by emerging obsolete by emerging technologiestechnologies

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New Networking New Networking Technologies:Technologies:

Peer-to-peer (P2P) computingPeer-to-peer (P2P) computing Decentralized open source Decentralized open source

softwaresoftware

Enabling the transfer of files from Enabling the transfer of files from client to client without central client to client without central controlcontrol

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A technology called DivX:A technology called DivX:

DeCSS emerges as the decryption key that DeCSS emerges as the decryption key that breaks the Content Scrambling System (CSS) breaks the Content Scrambling System (CSS) for DVDfor DVD

Hackers reverse-engineer MPEG 4 to reduce Hackers reverse-engineer MPEG 4 to reduce the size of DVD files to fit onto conventional the size of DVD files to fit onto conventional CDsCDs

DeCSS & the reverse-engineered MPEG 4 are DeCSS & the reverse-engineered MPEG 4 are combined to create “DivX”combined to create “DivX”

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So, what do we have here?So, what do we have here?

The decryption key defeating DVD copy The decryption key defeating DVD copy protection is available on Websites around the protection is available on Websites around the world.world.

The compression technology enabling placement The compression technology enabling placement of a DVD file onto a CD is available on Websites of a DVD file onto a CD is available on Websites around the world.around the world.

Decentralized open-source software makes it Decentralized open-source software makes it possible to send pirated copies from peer to possible to send pirated copies from peer to peer without central controlpeer without central control

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From Daily Variety: From Daily Variety:

““Forest estimated that by the end of Forest estimated that by the end of 2001, one million full-length movies will 2001, one million full-length movies will be pirated over the Internet each day---be pirated over the Internet each day---a phenomenon that won’t be slowed by a phenomenon that won’t be slowed by

…the lawsuits recently filed by the …the lawsuits recently filed by the MPAA and the RIAA.”MPAA and the RIAA.”

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From The Hollywood Reporter:From The Hollywood Reporter:

““The new generation of fileswapping The new generation of fileswapping applications…known as decentralized open applications…known as decentralized open

source (software) programs…are not owned or source (software) programs…are not owned or controlled by anyone, and there is no server in controlled by anyone, and there is no server in

particular to target, making it virtually particular to target, making it virtually impossible for any litigation to shut them impossible for any litigation to shut them

down.”down.”

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Esther Dyson, technology newsletter Esther Dyson, technology newsletter “Release 1.0”:“Release 1.0”:

““We’re very much looking at a biological We’re very much looking at a biological model of an epidemic. On the Internet, model of an epidemic. On the Internet, a product doesn’t require a central host a product doesn’t require a central host and it doesn’t require central and it doesn’t require central distribution… it just spreads.”distribution… it just spreads.”

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From The Wall Street Journal:From The Wall Street Journal:

““Hollywood, your nightmare is Hollywood, your nightmare is here!”here!”

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3 Basic Ways to Protect IP:3 Basic Ways to Protect IP:

1) By statute1) By statute

2) By contract2) By contract

3) By business practices3) By business practices

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5 Categories of Contractual & 5 Categories of Contractual & Statutory ProtectionStatutory Protection

1) Copyrights1) Copyrights 2) Patents2) Patents 3) Trade Secrets3) Trade Secrets 4) Trademarks4) Trademarks 5) Mask Works 5) Mask Works (such as the negatives used to (such as the negatives used to

create silicon chips)create silicon chips)

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The Evolution of Statutory The Evolution of Statutory Protection in a Digital WorldProtection in a Digital World

Move to globalize & standardize IP protectionMove to globalize & standardize IP protection The World Intellectual Property Organization The World Intellectual Property Organization

(WIPO)(WIPO) The Digital Millennium Copyright Act (DMCA)The Digital Millennium Copyright Act (DMCA) The WIPO Copyright TreatyThe WIPO Copyright Treaty The WIPO Performances & Phonograms TreatyThe WIPO Performances & Phonograms Treaty The Uniform Computer Information Act (UCITA)The Uniform Computer Information Act (UCITA)

DMCA updates, modernizes & strengthens the DMCA updates, modernizes & strengthens the U.S. 1976 Copyright Act, Title 17U.S. 1976 Copyright Act, Title 17

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3 Landmark Court Cases:3 Landmark Court Cases:

Napster: Napster: Recording Industry Association of America Recording Industry Association of America (RIAA) challenges Napster’s fileswapping.(RIAA) challenges Napster’s fileswapping.

DeCSS: DeCSS: Motion Picture Association of America (MPAA) Motion Picture Association of America (MPAA) challenges 2600 Enterprises’ use of DeCSS on a Website.challenges 2600 Enterprises’ use of DeCSS on a Website.

MP3: MP3: Universal challenges MP3’s offering of the means Universal challenges MP3’s offering of the means to download music files.to download music files.

All three cases were decided in favor of content All three cases were decided in favor of content proprietors, & all are on appeal.proprietors, & all are on appeal.

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Protection of IP has always Protection of IP has always depended on:depended on:

1) Copyright laws limiting how content is 1) Copyright laws limiting how content is used.used.

2) The willingness of the majority to 2) The willingness of the majority to observe these laws.observe these laws.

3) Ability of physical protection to 3) Ability of physical protection to prevent the minority from breaking the prevent the minority from breaking the law.law.

Without 2 & 3, 1 cannot withstand.Without 2 & 3, 1 cannot withstand.

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What does this have to do with What does this have to do with networking technologies in IFE?networking technologies in IFE?

There now exists an ad hoc network, Internet-There now exists an ad hoc network, Internet-based, that makes illegal copying of movies, based, that makes illegal copying of movies, music & text relatively easy & virtually music & text relatively easy & virtually undetectable.undetectable.

The potential inability of copyright law to The potential inability of copyright law to prevent this activity forces content proprietors prevent this activity forces content proprietors to look to their contracts & business practices to look to their contracts & business practices for additional protection.for additional protection.

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Beating them at their own Beating them at their own game...game...

““Consumers…demand access to content by Consumers…demand access to content by any means necessary. Neither digital security any means necessary. Neither digital security nor lawsuits will stop Internet theft of nor lawsuits will stop Internet theft of content…Traditional publishers must focus on content…Traditional publishers must focus on beating Napster at their own game, creating beating Napster at their own game, creating compelling services with the content compelling services with the content consumers want.”consumers want.”

- Forrester Research- Forrester Research

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The Courtroom or the The Courtroom or the Boardroom?Boardroom?

““The conflict is being fought…between The conflict is being fought…between two sets of ‘codes’. There’s the legal two sets of ‘codes’. There’s the legal code, or set of laws…and the software code, or set of laws…and the software writers’ code, or computer writers’ code, or computer instructions..”instructions..”

- Stanford Law Professor- Stanford Law Professor Lawrence Lessig, Lawrence Lessig, TimeTime

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Slowing down the pirates by:Slowing down the pirates by:

1) Developing a secure & effective 1) Developing a secure & effective network to facilitate the exploitation of network to facilitate the exploitation of product before the pirates do.product before the pirates do.

2) Utilizing every conceivable form of 2) Utilizing every conceivable form of digital and legal protection to trip up the digital and legal protection to trip up the pirates while the content proprietor pirates while the content proprietor races to the finish line.races to the finish line.

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The Digital Cinema Supply ChainThe Digital Cinema Supply Chain

By the end of last summer, 38 motion pictures By the end of last summer, 38 motion pictures had been released in digital cinema.had been released in digital cinema.

Disney plans to make all new releases Disney plans to make all new releases available in digital cinema format by 2002.available in digital cinema format by 2002.

Savings of $1.5 Savings of $1.5 billionbillion annually in 35mm print annually in 35mm print cost & transportation.cost & transportation.

Current financial crisis by exhibitors is Current financial crisis by exhibitors is temporary & may actually help advance digital temporary & may actually help advance digital cinema.cinema.

Digital cinema is coming!Digital cinema is coming!

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Digital Cinema: Phase 1Digital Cinema: Phase 1

Stand-alone digital projection using Stand-alone digital projection using physical delivery media devices, physical delivery media devices, manually operated within the manually operated within the cinema. cinema.

Digital and film will co-exist from Digital and film will co-exist from now through 2001now through 2001

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Digital Cinema: Phase 2 Digital Cinema: Phase 2

Centralized control of playback Centralized control of playback from within the theater utilizing from within the theater utilizing combination of physical & combination of physical & electronic deliveryelectronic delivery

Electronic reportingElectronic reporting Digital & film will continue to co-Digital & film will continue to co-

exist from 2002 through 2004exist from 2002 through 2004

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Digital Cinema: Phase 3Digital Cinema: Phase 3

Network delivery & network control over Network delivery & network control over the playback.the playback.

Fully automatable systems.Fully automatable systems. No more film within that theaterNo more film within that theater Interfaces with other automated Interfaces with other automated

elements of theater operationelements of theater operation Beginning around 2004Beginning around 2004

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Benefits to IFE of a Digital Benefits to IFE of a Digital Cinema Supply Chain:Cinema Supply Chain:

A digital supply chain for cinemas A digital supply chain for cinemas may be potentially cross-platformed may be potentially cross-platformed between theatrical & nontheatrical between theatrical & nontheatrical applicationsapplications

Such a bifurcated supply chain Such a bifurcated supply chain could be in place within 2 to 3 yearscould be in place within 2 to 3 years

Physical delivery media devices Physical delivery media devices would begin to be phased outwould begin to be phased out

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Expanding Digital within the Supply Expanding Digital within the Supply ChainChain

Digital /film productionDigital /film production Digital intermediatesDigital intermediates Digital /film distributionDigital /film distribution

““Digital intermediates” are Digital intermediates” are replacing film elements between replacing film elements between production & distribution.production & distribution.

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Expanding Digital within the Supply Expanding Digital within the Supply ChainChain

Digital intermediates introduce digital Digital intermediates introduce digital into the supply chain at an earlier stageinto the supply chain at an earlier stage

““Transcoding”: Conversion from one Transcoding”: Conversion from one compression ratio to a higher compression ratio to a higher compression ratio without having to first compression ratio without having to first fully decode the informationfully decode the information

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The Standards for Digital The Standards for Digital Cinema:Cinema:

Will come from many sources, but Will come from many sources, but principally from the Society of principally from the Society of Motion Picture & Television Motion Picture & Television Engineers (SMPTE) and its DC28 Engineers (SMPTE) and its DC28 committee.committee.

SMPTE is looking 10 years ahead & SMPTE is looking 10 years ahead & working backworking back

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The Standards for Digital The Standards for Digital CinemaCinema

Benchmark: 70mm, 48 fps film is Benchmark: 70mm, 48 fps film is likely standard in 10 years…likely standard in 10 years…

Therefore the digital master for Therefore the digital master for archiving purposes should be archiving purposes should be scalable to 4000x2000, & support scalable to 4000x2000, & support a datarate of 104 Mbps or higher.a datarate of 104 Mbps or higher.

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A two-hour movie at cinema A two-hour movie at cinema resolution of 1920x1080 pixels x resolution of 1920x1080 pixels x 24 fps= 1.5 billion bits per second24 fps= 1.5 billion bits per second

Using a compression ratio of 30:1, Using a compression ratio of 30:1, a digital cinema release master a digital cinema release master could be created between 35 & 45 could be created between 35 & 45 MbpsMbps

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Using transcoding to create:Using transcoding to create:

1) digital edit master (140-1) digital edit master (140-270Mbps)270Mbps)

2) archive master (60-80 Mbps)2) archive master (60-80 Mbps) 3) digital cinema release master 3) digital cinema release master

(35-45Mpbs)(35-45Mpbs)

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4) HDTV/nontheatrical release 4) HDTV/nontheatrical release master (15-20 Mbps)master (15-20 Mbps)

5) standard definition TV (SDTV) 5) standard definition TV (SDTV) master (4-10 Mbps)master (4-10 Mbps)

6) streaming video release master 6) streaming video release master (less than 2 Mbps)(less than 2 Mbps)

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SDTV & streaming video release masters would SDTV & streaming video release masters would be suitable for an IFE digital networkbe suitable for an IFE digital network

Digital rights management (DRM): control of Digital rights management (DRM): control of content by embedding instructions & content by embedding instructions & timeframes (metadata) into the transport streamtimeframes (metadata) into the transport stream

Using metadata to multiplex languages, Using metadata to multiplex languages, versions, ownership, release dates, etc.versions, ownership, release dates, etc.

Controlling encryption keysControlling encryption keys Arthur Andersen sees 52% of first-tier media Arthur Andersen sees 52% of first-tier media

companies adopting DRM in 3 yearscompanies adopting DRM in 3 years

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Metadata in the Transport Metadata in the Transport StreamStream

Metadata: the data that interprets or Metadata: the data that interprets or defines other datadefines other data

Groups now examining metadata:Groups now examining metadata: The Dublin Core GroupThe Dublin Core Group SMPTE/EBU Task ForceSMPTE/EBU Task Force European Community for Standardization European Community for Standardization

(CEN)(CEN) World Wide Web Consortium (W3C)World Wide Web Consortium (W3C) Moving Picture Experts Group (MPEG) Moving Picture Experts Group (MPEG)

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The Dublin Core Group has characterized The Dublin Core Group has characterized metadata into 15 elements, including “rights metadata into 15 elements, including “rights management”management”

SMPTE has prepared a metadata dictionarySMPTE has prepared a metadata dictionary CEN has created a conceptual metadata CEN has created a conceptual metadata

framework for multimedia information (MMI)framework for multimedia information (MMI) W3C is engaged in numerous metadata activities W3C is engaged in numerous metadata activities

built on SGML & XML, including 3G wireless built on SGML & XML, including 3G wireless applicationsapplications

MPEG has named XML Schema as MPEG’s choice MPEG has named XML Schema as MPEG’s choice for description definition language (DDL)for description definition language (DDL)

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XML = extensible markup language, a XML = extensible markup language, a derivative of SGMLderivative of SGML

SGML = standard generalized markup SGML = standard generalized markup language, the original Internet languagelanguage, the original Internet language

XML & SGML have the ability to XML & SGML have the ability to distinguish between the distinguish between the display display & the & the content content of informationof information

XML interoperability standards solve e-XML interoperability standards solve e-ticket problems for airlinesticket problems for airlines

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Undesirable characteristics of XML:Undesirable characteristics of XML: Verbose & tied to single languageVerbose & tied to single language Inclusion in non-text data is difficultInclusion in non-text data is difficult Linking between metadata objects is not Linking between metadata objects is not

clearly addressedclearly addressed Incremental user extensibility is not Incremental user extensibility is not

possiblepossible The SMPTE Data Model already addresses The SMPTE Data Model already addresses

all of these deficiencies.all of these deficiencies.

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““The SDK makes extensive use of The SDK makes extensive use of SMPTE 298M Universal Labels for SMPTE 298M Universal Labels for

Identification. These have the Identification. These have the advantage that they are binary advantage that they are binary

numbers & not tied to…language.”numbers & not tied to…language.”

- SMPTE Journal- SMPTE Journal

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““A crucial part of the SMPTE data model A crucial part of the SMPTE data model is the idea of unique content is the idea of unique content

identifiers…used to link the uses of identifiers…used to link the uses of content & the content itself through…an content & the content itself through…an

asset-management database.”asset-management database.”

- SMPTE Journal- SMPTE Journal

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““Increasingly, metadata representation Increasingly, metadata representation in asset catalogs is being converted to in asset catalogs is being converted to

the SMPTE Data Model & interfaced…via the SMPTE Data Model & interfaced…via protocols such as XML & HTTP.”protocols such as XML & HTTP.”

-SMPTE Journal-SMPTE Journal

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MPEG 4 and MPEG 7MPEG 4 and MPEG 7

The Internet has evolved from a display-The Internet has evolved from a display-based network to a transaction-based based network to a transaction-based network.network.

MPEG 1 & 2 are MPEG 1 & 2 are display-based display-based technologiestechnologies

MPEG 4 & 7 are MPEG 4 & 7 are transport & controltransport & control technologiestechnologies

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MPEG 4 (ISO/IEC 14496) builds on: MPEG 4 (ISO/IEC 14496) builds on:

1) digital television1) digital television

2) interactive graphics applications 2) interactive graphics applications (including synthetic content)(including synthetic content)

3) interactive multimedia 3) interactive multimedia (World Wide Web, (World Wide Web, distribution of & access to content)distribution of & access to content)

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The drivers behind MPEG 4 are:The drivers behind MPEG 4 are: a) Improved management & protection a) Improved management & protection

of content-owner rightsof content-owner rights b) Transparent information for network b) Transparent information for network

service providers for native signaling service providers for native signaling messagesmessages

c) Higher levels of interaction with c) Higher levels of interaction with content by userscontent by users

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MPEG 7 (“Multimedia Content Description MPEG 7 (“Multimedia Content Description Interface”) aims to create a standard for Interface”) aims to create a standard for describing the multimedia content data that describing the multimedia content data that will support some degree of interpretation of will support some degree of interpretation of the information’s meaning that can be passed the information’s meaning that can be passed onto, or accessed by, a device or a computer onto, or accessed by, a device or a computer code.code.

An ISO/IEC standard developed by the Moving An ISO/IEC standard developed by the Moving Picture Experts Group (MPEG)Picture Experts Group (MPEG)

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November 1995: November 1995: MPEG 7 beganMPEG 7 began October 1998: October 1998: Call for Call for

technologiestechnologies December 1999:December 1999: Working draft of Working draft of

standard producedstandard produced October 2000: October 2000: Committee draft is Committee draft is

due to incorporate results of core due to incorporate results of core experimentsexperiments

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““Today’s highly competitive broadcast market is Today’s highly competitive broadcast market is experiencing rapid convergence with Internet experiencing rapid convergence with Internet distribution technologies.distribution technologies.

““Processes are needed that will provide better Processes are needed that will provide better management of content creation flow & facilitate management of content creation flow & facilitate effective content reuse.effective content reuse.

““Metadata technologies offer ways that these needs Metadata technologies offer ways that these needs can be met.can be met.

““This technology is expected to deliver cost & This technology is expected to deliver cost & efficiency improvements in…content & rights efficiency improvements in…content & rights management.”management.”

-SMPTE Journal-SMPTE Journal

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““MPEG 7…is expected to provide richer MPEG 7…is expected to provide richer capability than other classes of capability than other classes of metadata…such (as) SMPTE/EBU metadata…such (as) SMPTE/EBU wrappers…and MPEG 4 object content wrappers…and MPEG 4 object content identifiers (OCI) which support AV object identifiers (OCI) which support AV object identification.”identification.”

- - SMPTE JournalSMPTE Journal

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The relevance of MPEG 7 to the broadcast The relevance of MPEG 7 to the broadcast industry stems from its capability to industry stems from its capability to capture:capture:

a) timea) time

b) rights ownershipb) rights ownership

c) content description informationc) content description information

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New services involving the triggering of New services involving the triggering of an A/V storage device when a match an A/V storage device when a match occurs between a consumer interest occurs between a consumer interest description & a description of description & a description of transmitted contenttransmitted content

““EtVCR” = event-triggered VCREtVCR” = event-triggered VCR ““EtPinP” = event-triggered picture-in-EtPinP” = event-triggered picture-in-

picturepicture

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Frame-based: Frame-based: MPEG 1 & 2 (display)MPEG 1 & 2 (display)

Object-based: Object-based: MPEG 4 (transport & MPEG 4 (transport & control)control)

Metadata-based: Metadata-based: MPEG 7 (transport & MPEG 7 (transport & control)control)

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Review & AssessmentReview & Assessment

IFE content may include:IFE content may include: a) store & deliver movies & seriesa) store & deliver movies & series b) live news & sportsb) live news & sports c) cached news & sportsc) cached news & sports d) Internet contentd) Internet content e) Intranet contente) Intranet content f) electronic commercef) electronic commerce

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Passengers want “3CTV”:Passengers want “3CTV”: a) choicea) choice

b) controlb) control

c) connectivityc) connectivity

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Expect to see from Content Providers:Expect to see from Content Providers:

1) Aggressive efforts at litigation & statutory 1) Aggressive efforts at litigation & statutory controlcontrol

2) Hastened development of an alternative secure 2) Hastened development of an alternative secure network for content delivery; digital cinemanetwork for content delivery; digital cinema

3) Increased control over content via imbedded 3) Increased control over content via imbedded digital rights management (DRM)digital rights management (DRM)

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Expect to see:Expect to see: a) SMPTE guidelines for mastering, transport & a) SMPTE guidelines for mastering, transport &

physical protection, beginning with digital cinemaphysical protection, beginning with digital cinema b) Digital resolution scalable to 4000x2000, b) Digital resolution scalable to 4000x2000,

transcodable to six, seven or eight levelstranscodable to six, seven or eight levels c) DRM imbedded in the transport streamc) DRM imbedded in the transport stream d) Security including triple-key, triple-DES, d) Security including triple-key, triple-DES,

watermarking, etc.watermarking, etc. e)Digital elements earlier in the process, e.g., e)Digital elements earlier in the process, e.g.,

digital intermediatesdigital intermediates

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Five stages in the business process:Five stages in the business process: 1) development1) development 2) preproduction2) preproduction 3) production3) production 4) post-production4) post-production 5) distribution5) distribution

Now add another step: predistribution Now add another step: predistribution processingprocessing

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DRM follows content through the entire cycle, DRM follows content through the entire cycle, all six stages of the business process.all six stages of the business process.

Predistribution processing Predistribution processing takes place largely takes place largely at the time of encoding and transcoding.at the time of encoding and transcoding.

Predistribution processing may preclude Predistribution processing may preclude customization as it is known today.customization as it is known today.

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XML will continue to drive movement of the XML will continue to drive movement of the Internet from display-based, to transaction-Internet from display-based, to transaction-based, to collaborativebased, to collaborative

XML, MPEG 4 & MPEG 7 will continue to move XML, MPEG 4 & MPEG 7 will continue to move the encoding process from just display to the encoding process from just display to transport & controltransport & control

XML is a primary enabler in pervasive computingXML is a primary enabler in pervasive computing WML is the XML language of wirelessWML is the XML language of wireless XrML is the XML language for digital rights XrML is the XML language for digital rights

managementmanagement

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““That That Vision Vision Thing”Thing”

Content proprietors will continue to take greater Content proprietors will continue to take greater control over IPcontrol over IP

Digital rights management will be essentialDigital rights management will be essential DRM will be present throughout the chainDRM will be present throughout the chain Predistribution processing will be a vital new linkPredistribution processing will be a vital new link Entities like SMPTE will expand standards-Entities like SMPTE will expand standards-

setting & be a strong element in standardizing setting & be a strong element in standardizing predistribution processingpredistribution processing

There will be little tolerance for variance from There will be little tolerance for variance from these standardsthese standards

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Prototype Digital Cinema Network:Prototype Digital Cinema Network: File resides on QuVIS fileserver (42gigs)File resides on QuVIS fileserver (42gigs) Sent via Cisco 7140 VPN routerSent via Cisco 7140 VPN router Over DS3 fiber optic virtual private network (VPN)Over DS3 fiber optic virtual private network (VPN) Received via Cisco 7140 VPN router & content Received via Cisco 7140 VPN router & content

cachecache Routed via another QuVIS fileserverRouted via another QuVIS fileserver Projected via Texas Instruments’ DLP projectorProjected via Texas Instruments’ DLP projector Cinema Connexion by BoeingSM replaces DS3 Cinema Connexion by BoeingSM replaces DS3

with a satellite network; otherwise the samewith a satellite network; otherwise the same

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Expanding & Integrating the IFE Supply Expanding & Integrating the IFE Supply ChainChain

Metadata originates in the order entry portalMetadata originates in the order entry portal Metadata is captured in the ordering process & Metadata is captured in the ordering process &

carries forward to become imbedded in the carries forward to become imbedded in the transport stream used for fulfillmenttransport stream used for fulfillment

Metadata would include information regarding Metadata would include information regarding ownership, availability period, versions, ownership, availability period, versions, languages, subtitleslanguages, subtitles

Key management function included in the processKey management function included in the process

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1.) Totally visible, vertically integrated supply 1.) Totally visible, vertically integrated supply chainchain

2.) Digital elements available earlier in the process2.) Digital elements available earlier in the process 3.) Order status & progress instantly available3.) Order status & progress instantly available 4.) Clerical burden is reduced4.) Clerical burden is reduced 5.) Order entry is simplified5.) Order entry is simplified 6.) Reporting is fully automated6.) Reporting is fully automated 7.) Industry enjoys a fully-integrated 7.) Industry enjoys a fully-integrated

communications networkcommunications network 8.) More content will be available to IFE8.) More content will be available to IFE

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Based on Internet Protocol (IP)Based on Internet Protocol (IP)

TCP/IP NetworkTCP/IP Network

Open Systems ArchitectureOpen Systems Architecture

Media managers:Media managers: yes; yes; gatekeepers:gatekeepers: no!no!

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The Future of IFEThe Future of IFE In the future, hardware providers will no longer In the future, hardware providers will no longer

build delivery systems independent of content & build delivery systems independent of content & sell them to airlines who will demand that content sell them to airlines who will demand that content be customized to their specs. Instead, content be customized to their specs. Instead, content will be available by way of fixed, multiplexed will be available by way of fixed, multiplexed bitstreams, accessible only by delivery systems bitstreams, accessible only by delivery systems designed in accordance with the specifications of designed in accordance with the specifications of those transport streams. Only those systems those transport streams. Only those systems capable of accessing such transport streams will capable of accessing such transport streams will be viable. MPEG 4, MPEG 7, and DRM will be be viable. MPEG 4, MPEG 7, and DRM will be requirements of such systems. requirements of such systems.

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