Movie Licensing

The Director of Business and Legal Affairs and the General Counsel dealt with owners of movies on a daily basis. Once discussions reach a point where the prospective Client (i.e. studio, executive producer, etc.) has decided to release their movies through SightSound.com, they are issued an Internet License Agreement for signature, an Internet Motion Picture Distribution Form to fill out, and instructed to send the movie to Sightsound.com in either Betacam SP or Digital Betacam format. Once the Internet License Agreement is executed, the person responsible for Client relations will make the first database entry into the Movie Project and Site Administration system (part of the SightSound.com Intranet) using an Internet Browser. Employees of SightSound.com are able to access the Movie Project and Site Administration system through the Intranet and, depending on permission levels, make changes as necessary.

Movie Project and Site Administration
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SightSound.com utilizes a database (Microsoft SQL 7.0) to drive the Website. The database is composed of a variety of tables, which keep track of very important information related to each video or audio recording sold by Sightsound.com. Information in these tables includes: production status, which server group a movie is saved on, movie price, actors, credits, etc. As stated above, the person responsible for Client relations logs the new movies into the Movie Project and Site Administration system. They input the name of the movie, date of contract, along with other information. Once the movie has been received on either Betacam SP or Digital Betacam tape, the Video Encoder inputs key encoding information and the Movie Project and Site Administration system notifies other employees that the movie has arrived. The Multimedia Designer input information relating to the completion of the Internet Trailer (Flash 4.0) and the Feature Image, the Thumbnail Image, and the Cover Image. The Web Database is updated by a data entry clerk and includes the names of stars, the credits, dates when the movie is available and in what countries, the description of the movie, etc. The Commerce Database Tables are automatically updated by the Movie Project and Site Administration system when the Video Encoder processes the movie through the Digital Rights Management program. The Country Code Database Tables are updated as necessary by the Web Programmer. Additionally, as sales occur, the Commerce Database is updated by the Commerce Servers, which record each transaction.

Video Encoding
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The Video Encoder utilizes Sony Betacam SP and Sony Digital Betacam players to play an analog video signal into a computer with a video capture card. The video capture card receives the analog video signal and converts it into a digital signal (similar to an AVI file format). Once digitized, the video signal is sent to the Windows Media Encoder where the video signal is compressed into an ASF format. The ASF format is what SightSound.com utilizes to sell movies in download fashion. Since all movies will be received by SightSound.com in various conditions (i.e. old movies in general have faded) the Video Encoder may be required to adjust encoding settings (i.e. brightness, contrast, saturation, hue, etc.). Once the movie and trailer have been encoded, the Video Encoder will transfer the movie ASF file to the [1-CAPTURE-01] Server in the [1-MT-CAPTURE] Domain.

Digital Rights Management
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The Video Encoder copies the movie ASF file from the [1-CAPTURE-01] Server in the [1-MT-CAPTURE] Domain to the [COM-MT-001] Server in the [WWW-MTLEBANON] Domain and utilizes the Microsoft Digital Rights Manager software on the Commerce Server [COM-MT-001] to encrypt the movie ASF files. Encrypted movie ASF files prevent unauthorized use or piracy. Once the Video Encoder encrypts the movie ASF, a License File is created by the Digital Rights Manager software and stored on the Commerce Server [COM-MT-001] in the [WWW-MTLEBANON] Domain. These License Files are then copied by the Network Administrator from the [COM-MT-001] Server in the [WWW-MTLEBANON] Domain to the Commerce Servers located in New York (i.e. the [COM-NY-001] Server in the [WWW-NEWYORK] Domain), Los Angeles (i.e. the [COM-LA-001] Server in the [WWW-LOSANGELES] Domain), Santa Clara (i.e. the [COM-SC-001] Server in the [WWW-SANTACLARA] Domain), Seattle (i.e. the [COM-SE-001] Server in the [WWW-SEATTLE] Domain), Chicago (i.e. the [COM-CH-001] Server in the [WWW-CHICAGO] Domain), Boston (i.e. the [COM-BO-001] Server in the [WWW-BOSTON] Domain), and Washington, D.C. (i.e. the [COM-DC-001] Server in the [WWW-DC] Domain).

Multimedia Internet Trailer
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The Multimedia Designer creates the Internet Trailer (also referred to as the “X to Y”) from assets issued to SightSound.com by the Client. These physical assets (i.e. photographs) are scanned then digitally modified or enhanced. If assets do not accompany the movie when received by SightSound.com, the Multimedia Designer fabricates assets by taking screen shots of the movie when playing the Betacam SP or Digital Betacam into the Video Capture Card of the Video Encoding Work Stations (i.e. [CAPTURE-01]). The screen shots (i.e. bitmap files) are transferred to the [1-CAPTURE-01] Server in the [1-MT-CAPTURE] Domain and deleted from the Video Encoding Work Stations. The Multimedia Designer then uses the screen shot as the Feature Image, the Thumbnail Image, and the Cover Image. If an Internet Trailer is created, it replaces the Cover Image. The Multimedia Designer uses Macromedia Flash 4.0 to create the 8 to 15 second Internet Trailer to entice the Customer into buying the movie or at least, download the full Movie Trailer.

Network Management
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Digital Assets (i.e. the encrypted movie ASF file, the unencrypted movie trailer ASF file, the Feature Image, the Thumbnail Image, the Cover Image, and the Internet Trailer) are transferred by the Network Administrator from the [WEB-MT-001] Server in the [WWW-MTLEBANON] Domain to the Web Servers located in New York (i.e. the [WEB-NY-001] Server in the [WWW-NEWYORK] Domain), Los Angeles (i.e. the [WEB-LA-001] Server in the [WWW-LOSANGELES] Domain), Santa Clara (i.e. the [WEB-SC-001] Server in the [WWW-SANTACLARA] Domain), Seattle (i.e. the [WEB-SE-001] Server in the [WWW-SEATTLE] Domain), Chicago (i.e. the [WEB-CH-001] Server in the [WWW-CHICAGO] Domain), Boston (i.e. the [WEB-BO-001] Server in the [WWW-BOSTON] Domain), and Washington, D.C. (i.e. the [WEB-DC-001] Server in the [WWW-DC] Domain). This must be accomplished prior to the Street Date of each movie. The Street Date is the first date when SightSound.com is permitted to sell the movie and is a common term used in the movie industry.

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