Over the course of my career, I’ve had the opportunity to work in a bunch of different technology areas that, in one way or another, have all become part of today’s digital entertainment landscape.
I started out developing flight simulation systems
for the military, I spent time in artificial intelligence,
and then I was at Apple computer when color was introduced
to the desktop, and when QuickTime was introduced—and a bunch of other entertainment related technologies.
A lot of the things we were trying to do at the time
were really challenging because the fundamental technologies
that linked the computer and entertainment worlds together,
were not there yet. The analog and digital worlds were
Just this year, I had one of those "moments" where
I realized that those barriers were disappearing forever.
So let me tell you a story about when I realized that
things had changed. HP sponsors BMW’s formula one race team, and I was at one
of the races, in the pit area. I had my HP 945 digital
camera, when Juan Pablo Montoya, our driver, drove out
of the pits during the race. I was able to quickly snap
about 50 pictures.
And I should say, I’m not a great photographer, so
I was lucky to have snapped at least this one great picture,
most of the others I took -- you couldn’t tell
what they were -- different parts of the car, an earlobe, the back of some
neck. I got lots of shots. But this one was really good.
I was able to leverage HP’s strategy to ensure simple
rewarding experiences across our entire portfolio --
we call it, "radically simple, better together" -- I
popped my memory card into my laptop, deleted all the bad pictures. And then
I popped it into an HP mobile PhotoSmart printer. And I was able to print
out an incredibly high quality, hard copy print on the
There were also a lot of other people there, including
customers, who thought this was a pretty good picture
-- and I printed about 50 copies for the people who also
wanted to capture the excitement of him leaving the pits.
But it doesn’t
stop there. After the race, I took my one good photo up to Juan Pablo,
and asked him to autograph it for me -- which he did.
So I had a record of the experience as a memento.
The cool moment for me was realizing that this whole
personal entertainment experience, the whole process,
was all digital, it was mobile and most important, it
was really easy.
So why am I telling a story about a
personal digital entertainment experience here at NAB?
Because I believe personal and professional digital entertainment
content are converging in some really interesting ways. There is truly
a digital revolution happening around us.
One of the most exciting things for me about being here
at NAB this year is the role that digital information
technology is playing across the professional media and
entertainment industry -- from
content creation, to content management and distribution
all the way to consumption. And this industry, in particular,
is one that has always embraced innovative technology.
What I think
is most important is what these innovations have enabled
you to create. Technology has helped this industry bring
comic book superheroes to life; technology has fast forwarded
audiences several thousand years into the future; technology
has enabled all of us in our living rooms to witness
live combat as it unfolds. Technology has made these
rich experiences possible for our eyes, our ears and
our minds to integrate.
has always been the foundation of this industry’s business
model—and the good news is, the human need to consume these experiences
has not changed—that fundamental business driver will always be there.
However, what has changed is the quality, the diversity,
the shear volume of stories and experiences produced.
Storytelling and experiences are distributed digitally
through new networks, like secure telecommunications
networks -- and being displayed on mobile devices,
like cell phones.
Every process is becoming digital, mobile
and virtual. Every step you would normally
take in creating, managing and distributing
content is shifting from a labor intensive,
physical and analog process to an automated
digital, mobile and virtual process.
So just to make that a little more real, for
example, think about my digital camera story. From a process perspective,
I didn’t have to physically take
the pictures to a lab for developing -- no chemical processing
all in bits and bytes. It’s mobile, in the sense that I can take
the picture with me wherever I go. And finally, it’s virtual in
the sense that it’s not
a physical object like a negative. It doesn’t sit in a fixed location.
And, I can share it virtually in a way that allows people to have
access to it from anywhere in the world.
We’ve all seen examples worldwide
where audiences are interacting with content through their mobile
phones. Cell phones are being used to target audiences,
to vote and send live feedback to TV characters, and
to even view movie clips. Just last week HP and Nokia
announced something called "Visual Radio," a
new technology allowing radio broadcasters and advertisers to interact
in real time with their listeners, via cell phones.
And its information technology that really has the
potential to make these new storytelling experiences,
more engaging, more vivid, more personalized, more targeted
and more effective across multiple audiences, mediums
Transforming entertainment experiences
may not know this, but HP is the world’s largest
consumer IT company. We occupy 10% of the world’s total
retail shelf space in 176 countries. We’re
the largest supplier of information technology to Small and Medium
Businesses and we’re the second largest enterprise IT company
in the World with market leadership in virtually every category
in which we compete -- Linux, management
software, servers, storage, etc. We have the broadest and deepest
information technology portfolio in the World. We believe that
by partnering across this industry we can do a lot of interesting
On the consumer side specifically, digital information
technologies are already transforming the entertainment experience
in our homes -- with
digital cameras, DVDs, PVRs, high-definition TVs and digital displays.
I have a really fun video to show you that will give
you a much better idea for what HP is doing to transform
the whole digital entertainment experience.
So is that cool or what? That’s where
HP is investing in the digital entertainment experience
for the home. But there’s something happening outside
the home that I believe is more profound across the whole
All of the digital technologies
that we’ve been talking about,
that make this industry so extraordinary, are still just digital
islands today -- they’re
not truly interconnected in a way that allows you to capitalize
on their full potential across everything that you need to do.
These are not my words, they’re yours. It’s what customers like
Warner Brothers and DreamWorks, Viacom and Disney are consistently
telling me. They tell me that open industry standard technologies
are really what its going to take, to help them make the full
digital transition possible.
The question on your minds right
now might be, "How can we
use Information technology to continue to create great stories,
to target audiences more effectively, to save money, to make
money and create entertainment experiences that perhaps have
never existed before, through as many different types of media
and devices as possible?"
Today, you’ll hear me talk about how we’re partnering with industry leaders such
as DreamWorks, Warner Brothers, CBS, Time, Savvis, and Avid,
who are all helping us drive this digital revolution forward.
Today I’m announcing HP’s intention to build out the
Digital Media Platform for the future of the Entertainment
This will be an open industry standard platform that will help
link all the applications and technologies that you use in your
business infrastructure together in a way that will help you
fully capitalize on the digital revolution.
HP is the only company
that can create this platform across your business infrastructure
from creation to distribution to consumption -- helping
you save money, make money, and create new revenue streams and
experiences that never existed before.
Digital rights management
Now, any discussion involving the transition of this
industry from an analog to a completely digital world
-- across the entire spectrum of what you do -- from
content creation, to content distribution, to content consumption,
must address the issue of Digital Rights Management and how
to preserve and expand great customer experiences in
Earlier this year, HP took a strong stand
on the importance of protecting digital rights and copyright
protected material. We took this stand because we believe
that just because technology may evolve faster than our
sense of what’s right
and what’s wrong -- and just because we have the ability to
take someone else’s
intellectual property for free, that doesn’t mean that we should.
As we are entering an era in which all content is digital,
mobile and virtual, HP is committed to three primary
principles in support of digital rights management:
First. to emphasize the consumer experience in this
context. Second, to build, acquire or license reasonable
content protection solutions, and third, to respect and support
the protection of intellectual property and copyright.
Since January, we’ve actually made significant progress on
this commitment. HP has become a member of the Content Management
Licensing Authority. We've also licensed HDCP technology from
Intel to ensure that video cannot be intercepted as it travels
between devices, and that the destination device also follows
the usage rights associated with that video.
We've also partnered
with Philips to propose new copy protection technology for
direct digital broadcast recording to the FCC.
And I’m here
to tell you today, HP is going to build on the commitment we
began here in Las Vegas, at CES last January.
So let’s talk
about that. HP recognizes that there are hundreds of millions
of analog TV sets out there today. We also know its
going to take some time before consumers replace all those
old TV sets with digital ones. Now
this causes some concerns, particularly for the entertainment
industry in the process of this digital transition. Why? Because
when content goes from a digital form to an analog form usage
rights usually get lost.
This loss, plus the fact that it’s easy to convert unprotected analog content
back into digital form where it can be illegally copied,
is unfortunately stalling progress for the introduction of new forms of exciting
and compelling entertainment content.
HP believes that now is the time for all three industries,
IT, consumer electronics, and media and entertainment to come together on
this issue in a way that will ensure progress -- and
ensure that new business models are successful -- even
with the huge number of existing old analog TV sets out there
We’ve been having conversations about this for
years now, we know what needs to be done, and now, its
time to get it done. In order to truly facilitate this
transition between analog and digital, we need to level
the playing field, and that is going to take narrowly
focused legislation to move all this forward.
this approach is really what it will take to facilitate
the full transition for this industry toward the secure
digital delivery of great, compelling entertainment experiences
-- experiences that we all know are possible.
So now let’s shift gears, we’re going to jump right in and talk
about all the great innovations we’re creating with our customers
and partners to help them capitalize on this digital revolution.
Let’s begin with our partnership with DreamWorks.
One company that is recognized as a pioneer in this
industry is DreamWorks. DreamWorks has been partnering
with HP to capitalize on the digital revolution for several
HP and DreamWorks both have the spirit of
invention in our DNA. HP is a 65 year old technology
company built on innovation and DreamWorks is the first
new major studio to be founded in over 65 years.
ways this is a perfect partnership for two companies
that don't want to be limited by conventional thought
or by available technology.
Back in 2001, HP helped DreamWorks
out of a tight spot as they needed computing power to
finish their groundbreaking original 3D animated feature
film, it involved a certain green Ogre named "Shrek."
Our work with DreamWorks gave us insight into how significantly
they were pushing the boundaries of existing technology
to bring their vision to the screen -- creating
a storytelling experience that both adults and children
could enjoy equally.
Together, we've been tackling
some of the toughest animation rendering challenges
in the world; we've been working to improve the fidelity
and security of digital distribution; and together
we've been making big strides in information compression,
and pioneering new digital imaging technologies.
DreamWorks has nearly a thousand high-end HP graphic
workstations running Linux for its most talented and
demanding creative artists. DreamWorks Animation has
created an HP computing system that spans multiple
sites with enough computing power to rank it among
the top supercomputer sites in the world. A phenomenal
amount of computing power.
DreamWorks is a studio that
first creates the story they want to tell, and then
they find a way to bring it to life -- irrespective
of the technology challenges involved. DreamWorks has
never been willing to compromise or to alter their
creative vision for a film because the technology couldn't
keep up -- frankly
HP is not one to let technology limit a customer’s
It is out of this growing partnership that we are pleased
to announce two innovative technology solutions that
have implications for the entire industry.
announcement we're making today is that "Shrek2" is the
world's first Hollywood animated feature film to be rendered
using HPs utility rendering service -- providing
DreamWorks with 50% more capacity from a pooled set
of compute resources. These are resources that DreamWorks
can use dynamically, as they need them. So for example,
like all utility services, water, gas, electricity,
when you need more of something, you just dial it up.
Why is this announcement significant for the industry?
Because it means that the storytellers and the creative
artists of digital filmmaking are no longer constrained
by processing capacity.
At its essence, this dynamic
rendering service is both a business model innovation
and a technology innovation.
It's a business model
innovation because even though DreamWorks has a powerful
state-of-the-art rendering facility, they continue
to push the boundaries of rich visual imagery and audio
effects to create the most compelling experiences possible.
And, they're doing it across multiple feature films.
Instead of having to make capital equipment purchases,
to install, manage and maintain, more and more additional
gear to meet their crunch time demand, we offered them
an alternative business model -- one that allows
them the choice to pay for only the capacity they need.
It's a technology innovation because it gave DreamWorks
flexibility in how they used this rendering service.
Our Palo Alto data center provided them with a utility-like
service that enabled them to prioritize the capacity
they needed, when they needed it most -- during
peak demand. So they would program their priorities
in, and the rest would happen automatically. You'll
hear more about this new service in a few minutes.
The second announcement that HP and DreamWorks are
making today is a partnership to bring DreamWork's
"Virtual Studio Collaboration" to
the whole entertainment industry.
One of the most common challenges all studios face
is how to enable their various creative teams and studio
execs to collaborate across a number of different creative
process steps-from storyboarding to reviewing dailies
to offline edits etc. And they need to be able to do
that any time -- even if they are on the road-which
is pretty much all the time.
Using all the greatest movie
making techniques -- lighting,
sound design, visual effects, etc., DreamWorks has
created an incredibly realistic collaboration environment
that recreates the experience of working together live
in the same room. It's amazing when you actually use
this thing -- you
have to see it to believe it.
HP is teaming up with DreamWorks to recreate this experience
and bring it to the whole industry to use and enjoy.
It's all part of our overall corporate strategy to
bring high tech, low cost, and the best total customer
experience to our existing markets and new markets.
But, rather than have me go on with the details of
these announcements, let's roll a video that will give
a much better feel for what both of these announcements
are all about.
(Plays DreamWorks video, then invites Ed Leonard, Chief
Technology Officer at DreamWorks to the stage. Leonard
Now I’d like to switch
gears a little bit and talk through another way we are
partnering across the industry to capitalize on the digital
At HP, we realize that one of the great drivers
of the digital revolution is customers who want to relive
their favorite movies or television shows they saw 20,
or 30, or even 40 years ago -- I can
relate to the latter. The opportunity to unlock these
experiences in new digital quality picture and sound
is very real today. Think of this in the context of
the more than $25 Billion dollar home video and DVD
The problem today is some of the very best
stories and entertainment experiences are still sitting
in old vaults wasting away where nobody can enjoy them.
leveraging technologies we’ve developed in our labs
around imaging, restoration, archiving and meta-data
tagging to help bring these historical treasures back
out into the light of day. HP has recently engaged
in deals like the one we announced with Time Inc.,
to digitally restore every image ever published in
the history of Time Magazine—these
are images like Muhamed Ali’s, "Thrilla
in Manilla," or the fall of the Berlin Wall.
Another partnership is with Getty Images, the world's
leading provider of imagery, film and digital services
-- and our engagement there is to help them manage their
assets for their over 150 million unique visitors each
Or finally, with CBS, to restore and make available,
classic entertainment experiences such as when the Beatles
appeared on the Ed Sullivan show and rocked the world
for the first time.
Today, we have another very special partnership to
announce with another entertainment industry leader.
This is a company at the forefront of every aspect of
the entertainment industry today, from feature films
to television, to home video to DVD, to animation, comic
books, interactive entertainment and games, product and
brand licensing, to international cinemas and broadcasting
of course talking about Warner Brothers Studios.
Together, HP and Warner Brothers share a common
vision for the future of digital media entertainment:
a future where digital technology enhances the
quality of entertainment media in both its production
and its distribution.
HP and Warner Brothers are putting
this vision into practice through active cooperation
and partnership on a number of cutting edge projects.
This partnership is about harnessing the power
of digital technology to restore many of the World’s
classic motion pictures and television experiences,
about creating new digital tools to define the
motion picture post production studio of the future,
about cooperation as a means for encouraging the
transition from analog to digital of filmed entertainment
Let me just give a few more details on
these deals and then I’m going
to invite Chris Cookson from Warner Brothers to
give some additional color -- no
First, on the Digital Restoration front: HP and Warner
have agreed to pool their collective expertise
in Image Processing to develop and deploy new techniques
to restore image quality from Warner Brothers classic
motion picture and television library, which is
the largest in the world. This includes the ability
to dynamically scale storage and computing capacity
across multiple restoration projects such as the
"Wizard of Oz" and "An American in Paris."
on Warner Brothers' proprietary software used to
restore "Singin’ in
the Rain," "Robin Hood" and "Meet
Me in St. Louis" and
HP's image, color and data management technologies
-- HP and Warner are committed to preserving and
presenting the original creative vision of these
classic films in stunning digital age quality.
Now, just have a look at the before and after of
"Robin Hood," for example. And we’ll
see if you can tell the difference.
Pretty Amazing. Warner
Brothers tells the story of how a famous director,
who after seeing his film restored with this method,
actually cried halfway through the film. And to
date, the consumer response to these restored films
has been overwhelming.
Together, HP and Warner
Brothers intend to make this service scalable and
available to the entire industry.
Digital Post Production
me say a few words about this Digital Post
Production studio of the future. Working
at more than four times today's customary digital
resolution, Warner Bros. and HP will define and
develop the tools necessary to manage and manipulate
the hundreds of terabytes of data that are needed
to make sure that the quality of what goes into
the vault meets or exceeds the historical quality
of 35mm film.
This deal will combine HP’s
network and adaptive enterprise expertise with
deep industry knowledge and experience with workflow
technologies and processes across their feature
film, restored library of films, and hi-definition
We will also use the results
of this collaboration to continue to build out
the digital media platform together and make it
available to the whole industry as a standard for
digital post production.
like to invite Chris Cookson, President of Technical
Operations & Chief
Technology Officer, of Warner Brothers Entertainment
to come up and say a few words.
(Chris Cookson speaks.)
Now, in addition to unlocking the power
of digital content, HPs digital media
platform is also all about the secure
enablement of content on the move. This
content must be protected as it moves
across the multiple networks that we
all use today.
Did you know that HP powers
almost 90% of the world's financial services
transactions? We power the world's top
stock exchanges and virtually all the
ATM financial infrastructure of the world.
So we know something about securing transactions,
and so does our partner Savvis Communications,
whose network operating system help us
securely manage and move over 65 %
of these financial transactions.
That's why we're pleased to announce today that HP
and Savvis are teaming up to ensure the digital media
platform will offer the protected management and distribution
of digital content. For example, just this year HP and
Savvis powered the International Emmys-enabling secure
digital screenings for all the judges and the live distribution
of that programming
content over SAVVIS'
network to sixteen different countries.
New digital experiences in retail
There’s actually a digital revolution that is just beginning on the consumption
side in retail environments as well. You may
have heard about an innovative partnership between HP and Starbucks announced
just this last month.
HP, as Starbucks technology partner, helped the company
deliver innovative experiences to its customers through the T-Mobile Hotspot
Wi-Fi network that is now available in more than 2700 Starbucks stores
across the country. Very big footprint.
Just four weeks ago, we took our
relationship with Starbucks to the next level. HP, working closely with Starbucks
and its Hear Music brand introduced a revolutionary new retail concept
that uses HP technology as its foundation.
exactly did we do? We brought together the two things
most people can’t
live without – music and coffee. Starbucks customers
can now choose from thousands of songs across
a number of musical styles and then easily burn
their own custom, high-quality CD’s, and
real CD quality.
This breakthrough in the consumer music industry creates
a totally new retail experience in which
customers can choose their own personalized music. In
the end, what you’re
able to do is fully customize your music buying
Together with Starbucks, HP is in
the process of virtualizing the entire Hear
Music library, plus the music inventories from others
-- all in all, a
wealth of great music. And, we’re helping
Starbucks and Hear Music to cost effectively
scale this solution to Starbucks locations
nationwide -- and
then take it international.
In the front of the store, customers use HP Tablet
PCs to listen to the music and arrange their
custom mixes and then use HP’s
integrated burn and print technology to take
Behind the scenes, this inventory of music sits on
HP storage, servers, networking gear and our digital
media software platform---all supported by
Let’s play a video that will
give you a better feel for the experience
helping Starbucks to create.
So this custom retail experience is something that
only HP could help create by leveraging our full portfolio
of products, technologies and services.
Now, I want to switch gears again, and step back a
bit to what I was saying at the beginning of this talk.
That information technology is powering this digital
revolution. But what about the small and medium businesses
that make up the lion share of this industry?
Our success within this industry really depends on
a tight integration with the tools that power the artists
at every level of production.
One company in particular,
began the digital revolution on the creation side for
this industry in 1989. This company, Avid
Technology, was founded on the promise that a computer
and innovative software -- in
the hands of a gifted storyteller -- could
revolutionize the making of film
Today, 90% of all primetime TV
shows, 85% of feature films, and 80% of commercials
are made using Avid products.
At this year’s
Academy Awards, every film nominated in the
Best Picture, Directing, Film Editing, Sound
Editing, Sound Mixing, and Visual Effects categories
used at least one Avid solution.
For the past
three years, our companies have worked together
to develop the world’s
highest-performing video editing
systems. The result of this relationship is
that HP has become Avid’s
preferred technology provider on
the PC platform.
In fact, the Avid DS Nitris
system -- the
most powerful High Definition finishing
solution – is
available exclusively on an HP 8000
workstation. This HP workstation
is the only qualified desktop PC
system to use Avid’s
workhorse editing system, Media
Now, I’d like to talk about the democratization of this technology for the rest
of the content-creation community:
the folks with the boutique post houses, the basement recording studios, the
home-based digital effects shops, and the bedroom DVD suites
For these artists, Avid has just
announced the Avid Xpress Studio – the
latest in a line of advanced solutions
that use HP as their preferred platform. Basically, Avid took its industry
leading video editing, audio production, and 3-D animation solutions,
added award-winning visual effects and DVD authoring packages,
and augmented them with professional video and audio hardware. The result
is a totally integrated suite of products that offers new creative possibilities
to a wide range of media professionals.
As compelling as this is, the most stunning aspect
of all this is its price—it
starts at under $4,000 dollars. So,
with a standard configured HP 8000 workstation you can get all this power
for just under $10,000.
Five years ago, if you had tried to build
a similar system with video, audio, 3-D, effects, and DVD
authoring capabilities, you would have had to spend
well over $100,000 on individual solutions, and they wouldn’t
have had anywhere near the level
of interoperability, the workflow innovations, or the performance
that Avid Xpress Studio and HP bring to the table.
With this solution you get a high tech,
low cost, absolute best customer experience that only HP and Avid
So together, HP and Avid are providing
widespread access to technology that was once
reserved for multimillion-dollar production facilities. And this
puts the industry’s
most advanced tools into the hands
of a much larger community of artists and producers.
By the way,
Avid and Savvis are both involved in helping
HP and Warner create the digital post production
studio of the future—this
is just another example of
how these partnerships are all working together to create the
digital media platform.
Today, I’ve talked about
how HP, is helping the entertainment industry unlock
new value and new growth. This is an industry that collectively
across 14 different business segments is a $1.1 Trillion
dollar industry. Its projected to grow to a $1.4 Trillion
dollar market over the next three years -- and
according to the experts, the biggest,
most disruptive shift is the transition to an all digital platform.
HP is the only technology company
that can do this across the entire industry -- we’re
leveraging our full portfolio
of products, technologies and services to help you capitalize on
the digital revolution.
As I mentioned, this Digital Media Platform
is being built out today based on our accumulated
knowledge, experience, intellectual property, and most importantly,
ongoing partnerships with companies like DreamWorks, Warner, Starbucks,
Avid and Savvis.
HP is the only company that can create
this platform across your business infrastructure from creation
to distribution to consumption—helping
you save money, make money,
and create new revenue streams and experiences that never existed
DreamWorks, Warner Brothers and Avid are partnerships
on the content creation side. Starbucks, Warner Brothers
and Savvis are all partnerships having to do with the
management and distribution of rich digital content.
And finally, Starbucks, and HP’s
System are creating simple rewarding experiences on the
content consumption side -- both
in retail and in the home.
HP is focused on driving this today, not
tomorrow. You may notice that this talk was not about
a lot of hand waving and waxing poetic about the future
of information technology. Today I’ve
talked about real deals, real commitments,
real partnerships, with real value being created.
believe that information technology solutions, and specifically
the power of HP’s
help free this industry up to help you create, manage,
and distribute exciting entertainment experiences through
as many different types of rich media as possible.
The digital revolution is here today. I believe that
HP, plus all of you, plus the right technologies,
plus the right business models, plus the right stories,
plus the right experiences, makes everything possible.