Microsoft to Deliver PlayReady Technology for Telefónica Mobile Entertainment Services

BARCELONA, Spain — Feb. 11, 2008 — Microsoft Corp. and Telefónica España announced today a collaboration focused on the use of Microsoft PlayReady technology to power Telefónica’s next-generation mobile entertainment services. Telefónica España plans to deploy PlayReady for its mobile music service in the second half of 2008. The collaboration also includes working on video and games services.

PlayReady is a content access technology from Microsoft that enables content owners and service providers to deliver virtually any type of digital content, using a wide range of business models. PlayReady also provides significant improvements in ease of use for consumers looking to access, manage and back up protected content.

“Following an extensive evaluation process of Microsoft’s PlayReady technology over the past year, Telefónica has decided to include PlayReady in our next-generation mobile entertainment services,” said Ms. Cristina Alvarez, head of Services Development at Telefónica España. “Microsoft PlayReady enables us to bring to market new business models and scenarios around mobile music, video and games, as well as execute on Telefónica’s fixed and wireless converged services vision. With its support for service domains and embedded licenses, PlayReady also provides a breakthrough in consumer ease of use for these next-generation services.”

“The selection of Microsoft PlayReady by Telefónica is a pivotal development in the rapidly growing field of mobile entertainment by one of the world’s leading operators,” said Chadd Knowlton, general manager of the Content Access and Protection Group at Microsoft. “The scope of this deployment, spanning music, video and gaming content, and Telefónica’s focus on ease of use, will transform the consumer entertainment experience. We’re excited to work with Telefónica to help bring these benefits to millions of its customers.”

Microsoft PlayReady is designed for digital entertainment services, devices and applications, with a specific focus on meeting the needs of mobile operators, service providers and device manufacturers. The technology supports a range of business models that can be applied to almost any type of digital content (music, video, games, ringtones, images and more) and a wide range of audio and video formats (including AAC, AAC+, Enhanced AAC+, H.264, Windows Media Audio (WMA) and Windows Media Video (WMV)). PlayReady also provides features such as service domains and embedded licenses, specifically designed to make it easy for consumers to enjoy content on all their registered devices, and back up their content just as easily as they would any other type of file.

Microsoft released the PlayReady Client Porting Kit for mobile devices in August 2007, and expects the first services using Microsoft PlayReady technology to appear in the second half of 2008. In addition, Microsoft has designed PlayReady to be backward-compatible with Windows Media DRM 10, which means that devices supporting PlayReady can access existing Windows Media DRM-based content as well as new PlayReady content services.

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