Application #2 is meant for studio applications where a TV or movie title is transformed into multiple content versions (airline edits, special edition, languages) that are made available to multiple consumer distribution channels (Internet, optical media, broadcast…) across multiple territories and over the span of many months to over a year. It uses HD image essence coded as a JPEG 2000 codestream and audio essence coded as linear PCM.
The transformation of Application #2 Compositions to the output formats appropriate for each distribution channel is specified in other documents.