mid range plan fiscal years 2009 – 2012 october 2008 [draft – as of 9/12]

Mid Range PlanFiscal Years 2009 – 2012

October 2008

[DRAFT – as of 9/12]

2

1. Executive Summary

2. Core Programs

3. Programming

4. Digital Networks

5. Strategic Investments

6. Distribution & Licensing

7. SPHE & SPTI Contribution to SPT Product

8. Ad Sales

9. Appendix

3

• Expand FEARnet into a linear network

• Create new, targeted shows on GSN and integrate skill-based gaming

• Explore HD as an entry point for a broader Sony linear network

• Use the successful launch of Dr. Oz to become official distributor of all future Harpo shows

• Seek extension of Starz deal

• Distribute additional product through our digital distribution network

• Build Crackle.com into an online entertainment destination and attractive outlet for advertisers

• Integrate Crackle into overall studio and leverage marketing and content resources

• Expand existing base of digital network distribution partners

• Grow our reality / format business through Embassy Row, 2waytraffic, and other producers

• Develop new hit syndication shows in partnership with Harpo Productions

Core Programs

• Adjust timing of broadcast sale of Seinfeld due to challenging local station economics

• Create efficiencies and cost controls for soaps by moving to the lot and using new technology

• Secure renewals for WOF / Jeopardy! and introduce new brand extensions

Programming

Digital Networks

Strategic Investments

Distribution & Licensing

Ad Sales

• Aggressively build our digital ad sales business with Crackle as the foundation

• Continue to pursue third party representation and acquisition of complementary businesses

• Leverage our content and ad sales assets to build a cross-platform Sony ad network

Executive Summary

4

EBIT Revenue

$200 $192 $186 $189 $188 $188$165

$9$9 $17 $14

$30 $30

$32

$0

$50

$100

$150

$200

$250

Sony Pictures Television GSN/FEARnet

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

($ in MM)

$1,243

$1,136

$1,226

$1,109

$1,259

$1,164

$1,258

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

($ in MM)

$209$201 $203 $203

$218 $218

$197

NOTE: Traditional television excluding Digital Networks and Crackle

SPT Financial Summary

[$ TO BE UPDATED][$ TO BE UPDATED]

5

EBIT Before Contribution Revenue

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

($ in MM)

EBIT After ContributionFY08

Q2/BDGT.FY09

MRP/PRIORFY10

MRP/PRIORFY11MRP

($ in MM)

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

($ in MM)

$15 $14 $16 $18

$32

$55

$47

$0

$10

$20

$30

$40

$50

$60

($19)

($9)

($16)

($12)

($15)($14)($14)

($20)

($16)

($12)

($8)

($4)

$0

$87

$104

$64$58

$43$40$41

$0

$20

$40

$60

$80

$100

$120

Digital Networks and Distribution Financial Summary

[$ TO BE UPDATED]

[$ TO BE UPDATED] [$ TO BE UPDATED]

[$ TO INCLUDE CRAKCLE]

6

From all sources of Domestic TV, Internet and Mobile revenue

Est. MPG/ACQ. Profit $295 $265 $322 $335

$1,016 $953 $985 $1,019$1,178

$1,051 $1,084

$475$479 $423 $429

$512$530 $537

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000 SPT/Other MPG/ACQ.

($ in MM)

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

NOTE: Before Seinfeld producer share

$1,491 $1,432 $1,408 $1,448

$1,690$1,581 $1,621

($ in MM)

SPT Total Revenue

[$ TO BE UPDATED]

7

Net G&A Expenses & Headcount

FY08 FY09 FY10 FY11 FY08 FY09 FY10 FY11SPT

Q2/MRP $49 $51 $53 $56 222 224 224 226Budget/Prior $49 $53 $56 -- 220 242 242 --Variance $0 $2 $3 -- (2) 18 18 --

Digital (1)

Q2/MRP $12 $13 $14 $15 45 51 53 55Budget/Prior $12 $12 $13 -- 41 47 49 --Variance $1 ($1) ($1) -- (4) (4) (4) --

CrackleQ2/MRP $13 $10 $14 $17 52 53 58 68Budget/Prior $17 $16 $23 -- 76 77 83 --Variance $3 $6 $9 -- 24 24 25 --

TotalQ2/MRP $74 $74 $80 $87 319 328 335 349Budget/Prior $78 $81 $91 -- 337 366 374 --Variance $4 $7 $11 -- 18 38 39 --

Net G&A Headcount

(1) PY MRP G&A & headcount restated for headcount included in SPHE/SPD which has since been transferred to DSD ($3.7M / 7 HC in PY09 and $4M / 7 HC in PY10)

[$ TO BE UPDATED]

8


2. Core Programs

3. Programming

4. Digital Networks




8. Ad Sales

9. Appendix

9

Core Programs Strategy

• Adjust timing of Seinfeld sale to approach broadcast partners under more favorable market conditions

• Cultivate next generation of fans with digital / interactive offerings

• Explore opportunities to move both shows to the Sony lot

• Leverage digital technologies to produce daytime programming more efficiently

• Secure station renewals and look to take back international distribution rights

• Launch new mobile applications console games, and digital extensions to increase interactivity and drive viewership

• Aggressively pursue Jay Leno to become the cornerstone of our TV business

CoreProgram

s

10

“Seinfeld”

EBIT

$18 $20$17

$20$16 $18 $16

$9$8

$3

$3

$2$3

$1

$11$12

$15

$37

$1

$0

$10

$20

$30

$40

$50

$60

Ad/Promo DVD License Fee

• Despite ad sales inventory being priced among highest in syndication, expect gradual ratings erosion

• 3rd cycle cleared in 99% HH, guaranteed double run in 86%• Domestic DVD sales through FY08:

– $320MM since inception– $31MM from Season 8 and 9 releases in June and November 2007

• Projected sales: FY09: $23MM, FY10: $11MM and FY11: $9MM• FY10 assumes Fox renewal of $[XXX] per episode

MRP Assumptions

Strategy

($ in MM)

[$ TO BE UPDATED]

• Closed 3rd cycle cable renewal with Turner– Digital rights are non-exclusive– SPT retains ad inventory to sell or release back to

Turner• Approaching Fox, Tribune, and new media outlets for 4th

cycle broadcast renewal• Launching cross country Seinfeld college tour• Creating digital assets to keep audience engaged online and

introduce program to new generation of viewers• Looking to exploit DST with iTunes, Amazon, etc [Sean]

[TO BE UPDATED]

11

“The Young & the Restless” and “Days of our Lives”

EBIT

$27 $26 $26 $27 $26 $27$25

$17$16 $15 $14

$14 $13$13

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

The Young & The Restless Days of Our Lives

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

($ in MM)

Overall• Create operational efficiencies and lower overall production costs

– Integrate new digital production technology / equipment– Move shows to the lot to improve coordination and cost control

• Work closely with SPTI to secure renewals and international sales

The Young & The Restless• Close CBS renewal by end of 2009• Continue nationwide talent search to generate publicity and boost

ratings in key markets• Build on success of online magazine Restlesstyle.com by

incorporating advertising / merchandising• Shoot on location in Paris to help grow local audience

Days of Our Lives• Close three-year license fee agreement with NBC• Upgrade show to Hi-Def and improve overall production quality

The Young &The Restless:• Show renewed through August 2012• License fees increase to 15% to $85MM while costs decrease [10%]• Show moves to Sony lot and ATL and BTL cross-collateralized

Days of Our Lives:• Show renewed through March 2012• License fees equal costs throughout period

Strategy

MRP Assumptions

$44$42 $41 $41

$40 $40$38

[$ TO BE UPDATED]

12

“Wheel of Fortune” and “Jeopardy!”

EBIT

NOTE: FY10 variance to prior plan result of FY08 IGT advance

$86

$64 $59$53

$59$71

$60

$32$32

$32$32

$31

$32

$32

$0

$20

$40

$60

$80

$100

$120

$140

Wheel of Fortune Jeopardy!

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

($ in MM)

• Production costs and CPM/ratings assumed at levels necessary to hold consistent profit margins

• Contractual licenses through 11/12

MRP Assumptions

Strategy

Overall• Wheel of Fortune celebrating its 5000th episode• Jeopardy! celebrating its 25th year in syndication• Both will be fully distributed in Canada under new 4-year deal• Look to take back int’l distribution rights from King World

Wheel of Fortune: • Use brand integrations for prizing, promotions, and production support• Launch new game element (One Million Dollar Bonus Round) and home

viewing prizes to further engage audience and keep show fresh• Introduce new cross-platform games, including WOF on PS3, World

Winner skill-based online game, and WOF “Road Trip” on mobile• Wheel Watcher’s Club now has over [4.5MM] active users

Jeopardy! • Introduce new show elements highlighting 25th season, including 2th

anniversary sweepstakes and new features and vignettes• Tape first ever TV show live from the floor of CES in 2009• Launch new PS3 game, World Winner skill-based game, and new Rock &

Roll Jeopardy! mobile game• Distribute new mobile application (Play Jeopardy! Live) enabling viewers to

play real-time• Show recently….[insert stat from Mumford]

$118

$96$91

$85$91

$102

$92

[$ TO BE UPDATED]

13


2. Core Programs

3. Programming

4. Digital Networks




8. Ad Sales

9. Appendix

14

Additional Items to Address - Programming

Following section needs to be updated to address:

• Summary of TV market conditions– Opportunities (2way / demand for reality, increased demand for drams, Harpo relationship)– Challenges (successful broadcast drama, cost control on pilots / deficits; flat TV viewership)

• Overall programming strategy– What are our specific areas of emphasis

• By outlet• By genre

– Why are these our areas of emphasis. Is it:• Expanding on genres where we’ve had success / have a strong reputation (network comedies)• Areas of increasing demand by cable and broadcast nets; areas with good economics, content

that feeds 2way (reality)• Genres with great economics and syndication potential (comedies)• Filling gaps in our own product offering (network dramas)• Focusing on content that represents the greatest percentage of network hours (dramas)• Focusing on award-winning content (e.g., Damages)• Feeding new buyers of originals (e.g. Breaking Bad)• Taking advantage of our existing producer deals

– What producer deals are we targeting for alternative programming– How are we thinking creatively about developing / producing shows (e.g., producing in London and

bringing to the U.S.)

• List of additional program development outside of overall deals

15

SPT Programming Strategy

• Maintain portfolio approach to scripted development and reality

• Work closely with SPTI to create shows that take advantage of strong international demand

• Help ensure that Dr. Oz is a success in order to secure rights to distribute all future Harpo product

• Expand overall deals into Digital Programming (e.g., Brad Garrett, Kevin James) to help grow Crackle

• Take multi-prong approach to acquiring and developing game / reality formats (2waytraffic, Sony library, Embassy Row, 3rd parties)

• Leverage 2waytraffic for global distribution

16

SPT’s Current Program Lineup

Days of Our Lives

Lost in the 80’s (pilot]

Young & The RestlessRules of EngagementCan Openers (pilot)

Jesse Stone: Thin Ice (MOW)Comanche Moon (mini)Stone Cold 6 (MOW)

The Unusuals

Mayflower (MOW)

Peter Pan (mini)

Shark Tank (pilot)

All Star Mr. & Mrs. (pilot)

‘Til Death

Sit Down Shut Up

Wheel of FortuneJeopardy!

Dr. OzJudge Hatchett

Judge David YoungJudge Karen

10 Items or LessMy Boys

Dave Caplan Project (pilot)Gifted Hands (mow)Time Heals (pilot)

Breaking Bad

S.I.S. (pilot/mow)

Boondocks

The Gong Show

Gay Robot (presentation)

The ShieldRescue MeDamagesSpectacular Spider-Man

Dragon Tales

Syndication

The BeastDanny Fricke (pilot)

Drop Dead Diva (pilot)The Gathering (mini)Living Proof (MOW)

The 10th Circle (MOW)The Memory Keeper’s

Daughter (MOW)Sex & Lies in Sin City (MOW)

Flirting with Forty (MOW)

17

2008/2009 Development Snapshot

Writer/Producer Current In Development End Date

Tantamount Sit Down, Shut Up

Ab Fab Lost in the 80’s

Untitled Rob Pearlstein/Laird Hamilton Surfing Project

06/14/10

Michael Davies N/A The Dating Game The Newlywed Game American Bandstand

Make My Day Take the Money and Run All-Star Mr. & Mrs.

01/01/09

Happy Madison Rules of Engagement

Gong Show

Gay Robot Untitled Adam Goldberg

Project

Joe Dirt Back to School

08/07/11

Timberman/Beverly Productions

N/A Untitled Steinfelds Project Black List, Hitman

Untitled Wallace & Wolfe Project

06/08/09

Barry Sonnenfeld N/A Los Simuladores Things a Man Should Never

Do Past 30

Untitled Chelsea Handler Project

03/31/09

Neal Moritz N/A Untitled Dave Caplan Project

Vantage Point 02/06/10

Fanfare(Jamie Tarses)

My Boys Time Heals Eva Adams

Slummy Mummy 05/03/10

Russ Krasnoff / Quincy Jones

NA Its Not for You 06/30/09

Overbrook NA Pursuit of Happyness --

18

SPT Alternative Programming Strategy

Sony Assets

Embassy Row

3rd Party

Producer Relationships

• Harness the power of Sony assets to create shows with brand value

– Refresh and re-launch proven game shows from SPT’s extensive TV library

– Create new reality formats from film and TV properties

– User marquee talent / production companies to attract top reality producers

– Source international formats for domestic production from 2waytraffic

• Acquire Embassy Row

– Expand on ER’s extensive development pipeline

– Leverage Michael Davies’ international credibility to re-launch library product

• Acquire 3rd party formats for domestic and international production and distribution

– Seek global rights (format and distribution) to feed 2waytraffic pipeline

• Expand network of domestic producer partnership

– Invest $X-$Y in additional overall deals

– Target 2-3 additional relationships

– Invest in a one production company

[Zack & Jamie to Provide]

19

Development Status of Alternative Programming

• Hogs & Heifers • Your Kid is an Idiot

• The Empire • Worlds Strongest Celebrity

• National Bible Championships • Take the Money and Run

• Don’t Forget Your Toothbrush

• All Star Mr. & Mrs. (2waytraffic) • Super Market (Scott Sternberg)

• Shark Tank (Mark Burnett) • Harmony Wars (Deb Newmyer)

• American Bandstand (Dick Clark) • WARdrope (Kristi Kaylor)

• Love’s Roulette (Kalissa Miller)

Sony Assets

Embassy Row

3rd Party

Producer Relationships

• Producer 1

• Producer 2

• Producer 3

• Producer 4

• Gong Show (Happy Madison) • Back to School (Happy Madison)

• Newlywed Game (Michael Davies) • Power of 10 (Michael Davies)

• Dating Game (Michael Davies) • It’s Not for You (Quincy Jones)

• Pursuit of Happyness (Will Smith) • Gretchen Wilson project (Sony Music)

• Family Business (Eric Tannenbaum)

[Zack & Jamie to Provide]

20

The Power of a Format-Based Show

LinearProgram

• Station license fees and advertising revenue generate approximately 70% of total revenues

• Brand integrations and sponsorships provide valuable prizing, promotions, and product support

• Reruns on cable / GSN

DigitalExtensions

InternationalSales

Other

• Online casual, console (PS2), portable (PSP), and PC games drive revenues and promote viewership of the linear program

• Launching PlayStation 3 and online skill-based game in FY09

• Currently #3 mobile game in US with new title (WOF Road Trip) launching in FY09

• Slot machine license (IGT) generated $228MM lifetime to date

• Rights also licensed for terminal-based state lotteries, board games, and various merchandise

• Currently licensed in 15 territories for broadcast (including new distribution deal in Canada)

• Formatted in 22 countries generated $81MM in revenue to-date

Wheel of Fortune demonstrates the international and cross-platform potential for game show formats

[FORMAT LIKE PAGE 9?]

21

Overall Term Deal Financials

1716 1616

0

2

4

6

8

10

12

14

16

18

FY08 FY09 FY10 FY11

(# of Term Deals)

# of Term Deals

($10)($10)

($12)

($10)

($0)

($1)

($2)

($3)

($4)

($5)

($6)

($7)

($8)

($9)

($10)

($11)

($12)

($13)

FY08 FY09 FY10 FY11

($ in MM)

Net Cost Per Year

NOTE: Deals with total gross commitments of $1MM or more


22

SPT Production Assumptions

Network:• DAYS OF OUR LIVES / THE YOUNG & THE RESTLESS continuing throughout plan• RULES OF ENGAGEMENT and ‘TIL DEATH continue throughout the plan (6 seasons)• SIT DOWN, SHUT UP continues throughout the plan (4 seasons)• 7 pilots in 09/10 and 9 pilots per season thereafter, resulting in 3 series per year• One new series succeeds – 10/11 TBD Drama

Cable:• RESCUE ME is ordered for a 6th season• THE BOONDOCKS continues throughout the plan (5 seasons)• DAMAGES and BREAKING BAD continue throughout the plan (5 seasons)• MY BOYS is ordered for a 4th season• THE BEAST continues throughout the plan (4 seasons)• 5 pilots per year, resulting in 2 series per year• One drama series succeeds in FY10

First-Run Syndication:• WHEEL OF FORTUNE & JEOPARDY! continue throughout plan• JUDGE KAREN MILLS and DAVID YOUNG continue throughout the plan (4 seasons and 5 seasons,

respectively)• DR. OZ launches in 09/10 and continues throughout the plan (3 seasons)• TBD SYNDICATION launches in 10/11 and continues throughout the plan (2 seasons)

Animation:• One new season produced each year

MOW:• 9 movies and 1 miniseries per year

23

Programming – New Series Investment & Development

($49) ($47) ($47) ($50)

($29)($25) ($25)

($26)

($22)($23) ($23) ($19)

($0)

($20)

($40)

($60)

($80)

($100)

($120)

FY08 FY09 FY10 FY11

($ in MM)

Pilot/Series Investment Development Allocated Overhead

($95)($95) ($95)($100)

Budget/Prior MRP ($90)

Variance ($10)

($82)

($13)

($83)

($12)

[$ TO BE UPDATED]

24


2. Core Programs

3. Programming

4. Digital Networks




8. Ad Sales

9. Appendix

25

Additional Items to Address – Digital Networks

Following section needs to address

• Open with a crisp, simple explanation of “What is Crackle?” What does the Crackle brand stand for / why do people come to the site

– The one place online to see Sony movies, TV shows, minisodes, trailers, clips, and originals– Content / experience available on every screen / device– A place where the studio to discovers new talent and experiments with new ideas

• Emphasize leveraging existing Sony content for much of our programming– Consider the HBO analogy

• At launch, almost entirely studio movies• But the small percentage of originals grew quickly and defined the voice of the channel

• How do we turn Crackle into a desired outlet for advertisers

• Be clear that all other “digital network” brands (like Pix) live on Crackle first. Use a visual / diagram

• Include a screen shot and explain where the site is headed

• Describe other ways Crackle will use Sony’s resources– Exclusives– Relationships / talent– Marketing / promotions

26

Crackle.com Overview

Purpose

• Online entertainment destination

• Hub of our distribution network

• Deeper, richer & more robust user experience

• High-quality, advertiser friendly inventory

• SPE digital originals developed specifically for Crackle

• Film and TV library repurposed for Crackle’s target demo

• Acquired / licensed content

• Originals debut on Crackle

• Programmed in series and genres

• New shows released daily

• Packaged into brands that can be easily syndicated

Programming

Content

• Single, streamlined organization located in Culver City

• Better integrated into overall studio to take advantage of existing marketing and content resources

Integration

27

Crackle’s 4 Tier Content Strategy

Tent Pole• Angel of Death• Boom Studios• Quentin Tarantino

• High production value, talent-driven vehicles with significant revenues in ancillary markets

Stars of Today• Series for studio-level talent (actors,

producers)

• Dating Brad Garrett• Jason Alexander• Barry Sonnenfeld

Stars of Tomorrow

• Shows from online “stars” witha proven audience

• Owen Benjamin• Michael Jai White• Sebastian Foucan

Library• Leverage SPT’s deep TV and film

assets

• Men-in-Black (PIX)• Silver Spoons (Vault)• 3 Stooges (Minisodes)

DescriptionTier Examples

Ori

gin

al

Co

nte

nt

28

Crackle Programming Strategy

• Being programmed as a true network, not just a website

• Combines traditional TV scheduling with the on-demand aspects of the web

• Programming in seasons and by genre

– 4 seasons with at least one tent pole each season

– Original series focused on three genres (comedy, action, reality) that are in-line with studio’s strengths

– Premium content (TV and movies) programmed specifically for Crackle

• New episodes debut daily, giving viewers multiple reasons to come back

– Mix of series that debut new episodes same day each week (e.g., Video Village on Fridays) and daily shows (e.g., Rocket Boom, Penn Says)

29

Leveraging Studio Assets to Further Expand Reach

Commitments

• MPG committed to spending $2MM over next 16 months on Crackle

• Live streaming of premieres

• Streaming HD trailers

• Producing / programming podcasts

Opportunities for Further Support(expand marketing support across divisions)

• Original behind the scenes content from theatrical releases

• DVD inserts

• Promotion on www.sonypictures.com

• Viewer-focused contests

• Crackle provides SPE with promotional opportunities unavailable on 3 rd party sites

• SPE promotional elements provide Crackle with compelling and differentiated content

• Consolidation of Crackle in Culver City will facilitate additional cross-studio opportunities

30

Network Brands & Distribution

• Crackle is the brand for all original programming

• Library content (film & TV) is programmed into 3 network brands

– PIX: Full length movies from SPE’s library

– Minisodes: All your favorites TV shows, only shorter

– SPT Vault: Classic action series and TV sitcoms

• Each brand is broadly distributed across partners and platforms

– Already secured premium placement on major outlets(e.g, Hulu, MySpace, YouTube, AOL)

– Working with corporate technology / WPF to create scalable approach to further expand footprint

• Each brand is programmed specifically for each distribution partner

• Collaborating with PSN to create a specific version of Crackle

– PSN receives compelling originals and repurposed content

– Crackle receives valuable exposure

Vault

31

Distribution of our Networks

• 40 implementations to-date with 16 online and mobile partners

• Expanding to include all scale players and more high growth sites

Vault

Tie

r I

In-P

roce

ss

Tie

r II

Exi

stin

g

32

Distribution Example

• Show how the content / experience differs for original programming on Crackle versus the same content distributed to our partner sites (e.g., Video Village on Crackle vs. Video Village on YouTube)

[PLACEHOLDER]

33

Traffic Forecasts

Monthly Figures for the Last Month of the Fiscal Year

(MM)July ‘08 Actuals

FY09 FY10 FY11 FY12

Crackle.com

Unique Users

Streams

Network Streams

Total Streams

[PLACEHOLDER]

34

Revenue Plan for Digital Networks [CARNEY / COUPER TO PROVIDE]

35

Digital Networks Financials

EBIT Before Contribution Revenue

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

$6

($3)

($4)

$0.1

$5

($0)

$3

($6)

($4)

($2)

$0

$2

$4

$6

$8 $19

$10

$3

$2

$14

$4

$7

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

[$ TO BE UPDATED]

[$ TO BE UPDATED]

($ in MM) ($ in MM)

36

Crackle Financial Summary

EBIT Revenue

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

($ in MM)

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

($ in MM)

$10

($10)

($18)

$0

$28

($18)

$10

($20)

($15)

($10)

($5)

$0

$5

$10

$15

$20

$25

$30

$50

$31

$15

$4

$84

$11

$52

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

[$ TO BE UPDATED]

[$ TO BE UPDATED]

37


2. Core Programs

3. Programming

4. Digital Networks




8. Ad Sales

9. Appendix

38

GSN Summary

Challenges

Improvements

CompanyPlans

Next Stepsfor SPT

• Strengthen programming with the introduction of new, hit shows• Add more general rate advertisers

• Stronger management team in place • Strategy to embrace older female demo has halted ratings erosion and laid the foundation for growth

in both ratings and VPVH• Close coordination with FUN Games has transformed GSN Digital into a profitable growth platform

for the channel• Redesigned and expanded GSN Live programming getting traction with both viewers and advertisers

• Continue close coordination with FUN Games (likely through merger) and build properties that increase interactivity and enable multiplatform sponsorship

• Increase investment in original programming to drive ratings/demo improvement• Refresh aging prime strips with contemporary acquired programming to increase ratings and

support original series launches • Invest significantly in re-branding the look and feel of the network to target core demo and embrace

game show fans• Improve affiliate positioning and minimize migrations through pricing and marketing initiatives

• Negotiate fair value at which to acquire 50% of FUN Games or structure an arms length partnership between FUN and GSN

[PLACEHOLDER – Contacting Brunell for GSN View]

39

FEARnet Summary

Challenges

Initiatives

Cable VODRatings

Web Ratings

• America’s #1 horror site

• Average uniques for 2Q08 up 226% over 2Q07

• Uniques hit a historic high in July 2008, up 250% from July 2007

• FEARnet.com ranked as one of the top 15 movie sites by PCMagazine.com

• VOD only model is not viable long-term

– Limits potential viewers, ad opportunities, and distributors capable of VOD

• Need to increase ad sales across all platforms

• Dynamic ad insertion required to maximize revenues

• Continue to exploit FEARnet’s recent move to LA to improve coordination

• Launch FEARnet linear with DirecTV investment as the critical first step

• Ensure Comcast also launches linear version

• Significantly expand ad sales

– Expand inventory through linear channels

– Need Comcast to provide leadership in dynamic ad insertion

• Comcast’s #1 VOD provider for Free Movies

• 5 of the top 10 free movie titles on Comcast in 2008 are FEARnet titles

• 2Q08 VOD views increased 50% over 2Q07

• Averaging 10M views per month

40

HD Channel Opportunity

• Near-term demand for HD has re-opened window for carriage of new networks

– Increased capacity through new satellites and services (e.g., IPTV)

– HD content being used as a differentiator among service providers

– Limited window as more SDTV will become HDTV

• Although HD could serve as an entry point, the opportunity lies in evolving to a true “Sony Entertainment Television Network”

– Leverage the strength “Sony” as the brand for HD

– Build on our expertise in original content, ad sales, and large film and TV library

– Share programming with our digital assets, including Crackle and eventually PSN

• We are evaluating three potential methods of entry

– Lower investment “build” strategy: Use library to secure carriage and minimize investment; new channel on-par with MGM HD

– Lower investment “partner” strategy: Invest in a smaller HD player (e.g., HD Net); use the Sony brand and library to reinvigorate and grow the channel

– Significant investment “buy” strategy: Invest in a sizable channel (e.g., G4); better define the channels voice and grow the audience by leveraging all Sony assets

[NEED TO UPDATE ENTRY METHODS]

41

Game Show Network – Financial Summary

SPT Share of Net Income SPT Share of Dividends/(Funding)

$21$21

$15

$31 $31$31

$15

$0

$5

$10

$15

$20

$25

$30

$35

($ in MM)

$15

$20

$15

$18

$20 $20

$18

$0

$5

$10

$15

$20

$25

($ in MM)

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP


42

FEARnet Financial Summary

SPT Share of Net Loss/Income SPT Share of Cash Funding

($6)

($5)

($1)

$1

($7)

($1)

($6)

($8)

($7)

($6)

($5)

($4)

($3)

($2)

($1)

$0

$1

$2

($ in MM)

($4)

($5)

($2)

$0

($3)

$0

($4)

($6)

($5)

($4)

($3)

($2)

($1)

$0

($ in MM)

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP


43


2. Core Programs

3. Programming

4. Digital Networks




8. Ad Sales

9. Appendix

44

Distribution Strategy Overview

• Leverage “all rights under one roof” to create additional revenue opportunities through new assets, rights, and windows

• Launch Dr. Oz as the anchor for our first run syndication business and grow partnership to include all future Harpo shows

• Secure additional double runs and better time slots for our court shows

• Use marketing and new product offerings (HD, early windows) to grow demand for VOD and improve economics

• Renew Starz Pay TV deal to extend our above-market relationship

• Expand footprint of digital product and partners; continue to outperform our competition in merchandising and operations

45

World-Class Execution

• Established systematic approach to maximizing value of assets across windows and partners

– Evaluate each right separately to determine its fair value and best use

– Carve-out rights, where appropriate, to benefit our digital networks

– Enabled negotiations of both digital and linear rights for third cycle cable sale for Seinfeld

• Institutionalizing approach of managing “all rights under one roof”

– Developing backend platform (Ventana) to manage avails

– Creating new offer template to facilitate cable sales

– Launching dual windows, early / HD VOD, and digital extensions to drive revenue

• Applying approach to an expanding base of content

– Off broadcast (Rules of Engagement, Power of 10)

– Off cable (Rescue Me, Damages, My Boys)

– 1st run (Judge Karen Mills)

– Internet developed shows (Angel of Death)

– Library product online and on mobile (Who’s the Boss?, Monty Python)

– Third party acquisitions (Just for Laughs)

– New library strategies (Minisode network, Cinemactive)

46

Distribution Sales – Total Licensing Revenue

SPT will generate [$745] million in total current and library sales for SPE

$704 $708$637

$693

$873

$695 $706

$41 $40

$43$58

$64

$104 $87

$0

$200

$400

$600

$800

$1,000

TV Sales Online/Mobile Sales($ in MM)

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

$745 $748

$680

$751

$937

$799 $793

[$ TO BE UPDATED]

47

Syndication

Market Dynamic MRP Initiatives

• While national ad sales growth is flat, local advertising is struggling

• Local station market is challenged with stations generally decreasing license fees

• To succeed, new shows need to be established brands

• Transition to digital (Feb ’09) opening up valuable real estate

• Stations looking to build websites through exclusive and sponsorable content

• Launch Dr. Oz in Fall ’09 as the cornerstone of our first run syndication business– Sell on market-by-market to maximize

show value (best time slot, station, etc)– Partner with stations to create a Dr. Oz

network (combining linear, digital, and physical reach)

• Build off recent successes of court shows and secure additional double runs and better time slots in key markets

• Provide local stations with non-exclusive streaming rights (with inventory hold backs at our discretion)

• Leverage digital transition as opportunity to increase library sales

48

Harpo / Dr. Oz

EBIT

$86

$64 $59$53

$59$71

$60

$32$32

$32$32

$31

$32

$32

$0

$20

$40

$60

$80

$100

$120

$140

Wheel of Fortune Jeopardy!

[$ PLACEHOLDERS]

MRP Assumptions

Strategy

• SPT has entered into a distribution relationship with Harpo, one of the most successful independent producers in TV history

• Dr. Oz will be the first Harpo show distributed by SPT

– Show launches in the Fall ’09; will benefit from the power of the Oprah platform

– Complemented by an immersive online experience that will generate meaningful traffic and revenues

• Dr. Oz will serve as a foundation for a deeper partnership that has the potential to redefine SPT’s first run syndication business

– Provides access to top talent and shows through MRP time horizon

– Gets us in business with top 3 affiliates

• Assumption 1• Assumption 2• Assumption 3• Etc.

49

Syndication - Revenues

$108 $114

$305

$154

$106 $113 $122

$0

$50

$100

$150

$200

$250

$300

$350

FY08 FY09 FY10 FY11

Q2/MRP Budget/Prior MRP

[$ TO BE UPDATED]

($ in MM)

50

Free TV / Basic Cable


• Library product faces challenges

– Networks are more selective in what library product they buy due to increased appetite for original programming

– Our library continues to age

– Increasing number of viewing opportunities in earlier windows limits ability to maintain value in Free TV

• Network audiences continue to fragment

– Continued growth in the number of cable platforms and original programming

– Increased competition from emerging digital platforms and new entertainment options

• To remain competitive, networks seeking new digital assets, rights, and windows

• Aggressively sell theatrical releases and library product

– Set individual library sales goals for each sales person

– Sell King of Queens in second cable cycle

– Sell showcase packages

– Create new market by targeting smaller cable networks with tailored packages

• Create additional windows, assets, and rights

– Dual windows (e.g., Married with Children)

– Multi-platform simulcasting and multiplexing

– Streaming rights to existing episodes

– New digital assets (e.g., Minisodes)

– Interactive games (e.g., Cinemactive)

51

Free TV / Basic Cable - Revenues

$239

$206$219

$145

$234

$282

$198

$0

$50

$100

$150

$200

$250

$300

FY08 FY09 FY10 FY11

Q2/MRP Budget/Prior MRP($ in MM)

[$ TO BE UPDATED]

52

Pay Per View / Video On Demand

$683 $727 $761 $796 $825

$1,587

$2,093

$2,613

$3,074

$3,470

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2008 2009 2010 2011 2012

($ in MM) PPV VOD

17% CAGR

Market Dynamic

MRP Initiatives

Source: SNL Kagan, 2007; excludes adult content and events

• Cable VOD will continue to drive overall growth

• Satellite providers aggressively competing against Cable VOD with push/pull products and HD

• All cable and satellite players are enhancing offerings through IPVOD

• Studios continue to explore Day-and-Date VOD as opportunity to charge increase margins

• Telecos are rapidly expanding into VOD but only expected to contribute 10% of total market revenues

• Drive views with major partners (DirecTV, Dish, and iN Demand) through marketing initiatives

• Exploit demand for 1080i and 1080p HD content to improve traditional VOD economics and studio copy protection / security

• Continue to explore Day-and-Date as an opportunity to charge premiums and test earlier windows to determine price, timing, and other key terms

– Benefits must outweigh DVD cannibalization

Forecasted Market Growth

$2,270

$2,820

$3,374

$3,870

$4,295

For notes, include how long PPV/VOD deals go; what HD rights we give

53

Pay per View / Video on Demand - Revenue

$85

$73$70

$82

$95

$77 $78

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

FY08 FY09 FY10 FY11


[$ TO BE UPDATED]

54

Pay TV Strategy


• Paramount recently terminated output deal with Showtime over declining renewal fees

• Paramount’s new Pay TV joint venture (MGM, Lionsgate, and Viacom) has yet to secure distribution– In near term, major titles may not have

Pay TV window

• HBO, Starz, and Showtime are opportunistically buying individual titles on the open market for pennies on the dollar

• All players are investing in original content, making fewer slots available for studio titles– Showtime enjoying recent success– Starz trying to define voice– HBO struggling to replace Sopranos

• HBO, Starz, and Showtime seeking cross-platform rights as a differentiator and to help secure carriage

• Starz to remain our primary output partner through MRP time horizon– Recently exercised the option; deal will

now expire December 31, 2013

• Starz seeking reductions in existing deal in exchange for extension through 2016– Proposing a reduced but still above-

market ratecard for 2014-2016– Seeking annual cap on titles that

exceeds our historical and anticipated output

• Overall market conditions support renewal– Deal ratecard remains above market– Pay TV license fees expected to decline– Starz in litigation with other major studio

partner– Opportunity to leverage digital rights to

improve negotiating position

55

Pay TV - Revenues

$272

$244

$279

$325

$273

$221

$297

$0

$50

$100

$150

$200

$250

$300

$350

FY08 FY09 FY10 FY11


[$ TO BE UPDATED]

56

SPT Library

Revenue EBIT

$72 $77 $77 $80

$43

$68$44 $46

$51

$37

$30 $25

$169

$184

$154 $153$1$2

$1

$2 $1$1

$1

$1

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

FY08 FY09 FY10 FY11

($ in MM)

SPTI SPT SPHE SPT Digital Merchandise

Budget/Prior MRP

Variance

$178

($9)

$204

($20)

$186

($32)

• Coordinating with other SPE divisions to identify additional opportunities to sell SPT Library product• Initiating discussions with new partners to expand distribution of library product (e.g., Shout! Factory)• Assuming no demand for TV product on Blu-ray

Budget/Prior MRP

Variance

$72

($13)

$85

($1)

$74

($6)

$69$68

$84

$59

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

FY08 FY09 FY10 FY11

($ in MM)


57

Library Sales Targets by Market

• 3 year annual average of $101MM in FY08-FY10, and $100MM in FY09-FY11

• 4 year annual average of $97MM

$82

$104

$75 $78

$5

$7

$22$7

$3

$2

$2

$2

$0

$20

$40

$60

$80

$100

$120

FY08 FY09 FY10 FY11

($ in MM) Free/Basic Pay TV PPV/VOD

$90

In-House $38MM

$113

$99

$87

[$ TO BE UPDATED]

58

Library Revenue by Division

$33 $33

$91

$52$29 $27 $30

$46 $44

$46

$46

$51 $48 $43

$32 $34

$28

$26

$17 $26$17

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200 TV MPG Acquired Product

In-House $91MM In-House

$86MM


$26MM

NOTE: (1) Before net present value adjustment (2) Acquired product revenue in-process as a result of recently revised slate information

($ in MM)

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

$111 $111

$165

$124

$97 $101

$90

[$ TO BE UPDATED]

59

Library Revenue by Market

$83 $83

$131

$92

$63 $67 $63

$17 $16

$16

$19

$14$17

$6

$11 $12

$18

$13

$20$17

$21

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200 Free/Basic PPV/VOD Pay TV


$86MM


$26MM

($ in MM)

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

$111 $111

$165

$124

$97 $101

$90

NOTE: Before net present value adjustment

[$ TO BE UPDATED]

60

Distribution Sales – FY10 Slate

SPT will generate over [$451] million in sales from the FY10 slate

Title PPV Pay TV Free TV

THE OTHER BOLEYN GIRL $2,500 $9,290 $4,000

MADE OF HONOR $3,470 $11,540 $8,940

YOU DON'T MESS WITH THE ZOHAN $5,500 $17,650 $22,750

HANCOCK $4,900 $20,000 $24,380

STEP BROTHERS $5,500 $17,650 $22,750

PINEAPPLE EXPRESS $3,470 $11,540 $8,250

THE INTERNATIONAL $3,600 $12,530 $9,750

I KNOW WHAT BOYS LIKE $2,840 $10,190 $7,310

PASSENGERS $760 $3,060 $1,380

NICK AND NORAH $1,890 $7,550 $4,880

SEVEN POUNDS $3,500 $16,920 $15,000

ANGELS AND DEMONS $4,900 $20,000 $17,500

Total Columbia $42,830 $157,920 $146,890


PROM NIGHT $1,720 $8,420 $4,060

LAKEVIEW TERRACE $2,660 $8,840 $4,810

ARMORED $1,800 $7,550 $4,500

STEP FATHER $1,860 $8,510 $4,380

PHENOM $2,240 $8,650 $4,380

Total Screen Gems $10,280 $41,970 $22,130


SOP $250 $1,580 $700

REDBELT $190 $1,220 $230

THE CHILDREN OF HUANG SHI $60 $380 $250

ASHES OF TIME $40 $290 $100

BRICK LANE $90 $600 $190

DANCING WITH SHIVA $0 $4,090 $300

TBD#1-2009 $60 $380 $150

TBD#2-2009 $470 $2,450 $300

TBD#3-2009 $320 $1,900 $200

TBD#4-2009 $150 $1,000 $230

TBD#5-2009 $30 $190 $100

TBD#6-2009 $40 $290 $100

TBD#7-2009 $630 $2,990 $750

TBD#8-2009 $150 $480 $280

TBD#9-2009 $190 $1,220 $240

TBD#10-2009 $60 $380 $130

TBD#11-2009 $140 $972 $280

TBD#12-2009 $30 $190 $100

TBD#13-2009 $40 $290 $100

TBD#14-2009 $60 $380 $250

Total Sony Pictures Classics $3,000 $21,272 $4,980

[TO BE UPDATED]

61

Digital Licensing


• Digital pure plays offer a more compelling experience than service from traditional retailers

– Apple continues to dominate digital licensing

– Verizon, Sprint, and Netflix are growing

– Brick and mortar retailers (e.g., Wal-Mart, Best Buy) are not competitive online

• Technologies that create new viewing experiences are also gaining traction

– Netflix Roku box sold out at retail

– Connected consoles (PS3, Xbox) are increasingly being used for video

– Apple TV is gaining popularity

• Data on DST / VOD mix is limited, but has skewed toward DST to-date

– With same titles available on DST and VOD, roughly [xx%] of units have been DST

– Mix may shift toward VOD as services migrate to set-top-box devices

• Continue to expand overall content offering across business models and platforms

– Renew Netflix SVOD agreement

– Broaden selection of film and TV product on VOD and DST basis

– Continue to find new ways to reach consumers on emerging platforms and devices

• Maximize value of assets through merchandising, operations, and windowing

– Work directly with partners to promote SPE content and secure valuable real estate

– Leverage operational efficiencies to improve title and partner performance

– Coordinate closely with SPT distribution team to maximize value of windows

62

Digital Licensing Revenues

$24$27

$41

$54

$22

$32

$64

$0

$10

$20

$30

$40

$50

$60

$70

$80

FY08 FY09 FY10 FY11


Apple/Microsoft Opp. $10 $40 $60 $80

($ in MM)

($ in MM)

• Variance to PY MRP is the result of key DST partners not entering the business (Best Buy, Target, Google, Yahoo) and higher than anticipated Apple/Microsoft market share

[$ TO BE UPDATED]

63

Mobile Games & Video

Market Dynamic MRP Initiatives• Overall market is large and expanding

– 280MM domestic subs (vs. 246MM TV viewers ages 12+)

• Mobile video adoption increasing with significant growth potential– Expected to increase from 17MM domestic

consumers in 2008 to 26MM by 2010

• Mobile game market continues to expand– Mobile game consumers expected to increase

from 35MM to 44MM by 2011– Domestic revenues forecasted to increase from

$1.0BN to $1.3BN in 2011

• Handsets are rapidly evolving into entertainment devices

– Increased memory (16GB = 40 hours of video)– Better access to content (full Internet browser,

Wi-Fi, 3G) – Greatly improved user experience, led by

iPhone (3” screens, video out to TV, stereo Bluetooth)

• Continuing to lead in game publishing

– Continue to steal market share with superior product and operations; SPT now #5 in 2Q08

– Refine product offering to support bigger brands; WOF now the #3 game in 2Q08 (#13 in 2Q07)

– Leverage distribution to start representing third party product

• Expanding video service to become a true Mobile Entertainment company

– Monetize feature film library through pay-per-view, subscription, licensing and memory cards

– Drive Crackle’s evolution into a leading mobile video service

• Launching new platforms and creating new mobile business models

– Customize and enhance our game offerings for the iPhone platform and SmartPhones

– Innovate with new interactive mobile gaming experiences, such as JEOPARDY! Live (AirPlay)

– Create new “off-deck,” D2C video networks with dynamic ad-serving capabilities

64

Mobile Games & Personalization – Financial Summary

EBIT Before Contribution (1) Revenue

$4

$6

$11

$6

$7

$11

$10

$0

$2

$4

$6

$8

$10

$12

FY08 FY09 FY10 FY11

($ in MM)


$19

$12

$14$13

$14

$27

$14

$0

$5

$10

$15

$20

$25

$30

$35

FY08 FY09 FY10 FY11

($ in MM)

MRP Budget/Prior MRP

(1) PY MRP mobile costs restated for development costs incurred by SPD now incurred by DSD as a result of the transfer of game production to DSD ($4.4M in PY09 and $0.8M in PY10)

• Variance to PY MRP is the result of a reduced game slate (more than off-set by costs) and lower D2C

[$ TO BE UPDATED]

65

VOD vs. DVD

Physical Digital

Sale Rental Sale Rental

Revenue

New Release $ $ $ $

Library $ $ $ $

Titles

New Release $ $ $ $

Library $ $ $ $

Revenue

New Release % % % %

Library % % % %

Titles

New Release % % % %

Library % % % %

[PLACEHOLDER]

66


2. Core Programs

3. Programming

4. Digital Networks




8. Ad Sales

9. Appendix

67

SPHE Contribution to SPT Product

Revenue Net Contribution

Budget/Prior MRP

Variance

$154

$0

$123

($15)

$119

($24)

• MRP reflects declining demand for TV Library product on DVD; securing additional distribution partners that focus on library product (e.g., Shout! Factory)

• MRP does not assume Blu-ray sales for TV Library 0

Budget/Prior MRP

Variance

$49

($4)

$40

($2)

$37

$0

$51$37 $30 $25

$60

$23

$11$9

$43

$47

$54$48

$0

$20

$40

$60

$80

$100

$120

$140

$160

FY08 FY09 FY10 FY11

($ in MM)

Library Seinfeld Current

$11 $10$7 $5

$9

$3

$2$1

$24

$25$28

$24

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

FY08 FY09 FY10 FY11

($ in MM)

Library Seinfeld Current

$154

$107$95

$82

$44

$38 $37

$30


68

SPTI Contribution to SPT Product

Revenue Net Contribution

$159$143 $148 $153

$77 $77$80

$231$220 $225

$232

$72

$0

$50

$100

$150

$200

$250

FY08 FY09 FY10 FY11

($ in MM)

Current Library

Budget/Prior MRP

Variance

$200

$31

$174

$46

$183

$42

$136$121 $125 $129

$64 $64 $66

$197$185 $189 $195

$61

$0

$50

$100

$150

$200

$250

FY08 FY09 FY10 FY11

($ in MM)

Current Library

Budget/Prior MRP

Variance

$167

$30

$146

$39

$152

$37


69


2. Core Programs

3. Programming

4. Digital Networks




8. Ad Sales

9. Appendix

70

Expanding SPT’s Advertising Footprint

Syndication :10 SpotCable /

SatelliteDigital / Mobile

PlayStationSony Ad Network

Current Business Lines Emerging Opportunities

SonyElectronics

Direct Response

PS.com

OnlineGames

Wireless

71

Traditional Advertising Market Overview

All Other50%

TV37%

Online & Mobile

13%

$48 $47 $50 $49 $54

$29 $30$31 $32

$35

0

20

40

60

80

100

2008 2009 2010 2011 2012

($ in BN) Broadcast Cable

2008 Ad Market Forecasted to be $205BN (1)

Growth in TV Advertising (1)

• Growth in TV advertising expected to remain relatively flat through 2012 (4% CAGR)

• Syndication generally more resistant to DVR erosion

• Advertisers challenged to create new ad units Increases in upfront CPMs offset declining inventory

• 08/09 upfront was solid, but scatter market could be showing signs of weakness

(1) PWC, 2008 (excludes direct mail)

• Effective use of C3 ratings and Nielson Fusion data to demonstrate effectiveness of SPT shows

• Explore acquisitions to expand advertising footprint (e.g., World Link)

• Expand third party representation

• Maximize advertiser interest in Dr. Oz through product integrations and sponsorships

• Identify ways for traditional and digital ad sales teams to collaborate on cross-platform buys

Marketplace Dynamics MRP Initiatives

$76 $76$81 $82

$89

72

Digital Advertising Market Overview

$19 $20 $24 $26 $28

$7$9

$10

$12

$1.4$1.9

$2.8$3.9

$4.9

$11

0

10

20

30

40

50

2008 2009 2010 2011 2012

($ in BN)All Other Online Video & Display Mobile

Growth in Online & Mobile Advertising (1)

(1) PWC, 2008 (excludes direct mail)

• Online video proven to be complement and not a substitute to traditional TV

• Online video and display ad market forecasted to grow at 40% CAGR over next 4 years to $12BN

• Majority of ad dollars being spent with branded content on traditional network sites (e.g., “Lost” on ABC.com or “The Office” on Hulu)

• Mobile and in-game advertising are projected to be significant in near future, but growth has been slower than expected

• Continue penetration of blue chip advertiser base

• Expand and scale back office to support an increasing range of partners and platforms

• Secure additional 3rd party rep opportunities, including FEARnet

• Leverage growth in emerging platforms through PSN ad sales business and building a cross-Sony ad network

All Other50%

TV37%

Online & Mobile

13%

2008 Ad Market Forecasted to be $205BN (1)

Marketplace Dynamics MRP Initiatives

$25$29

$33$37

$40

73

Sony Ad Network

Ad SalesContent

Devices / Platforms Opportunity

Challenge

Assets

“90% of all Sony devices will have wireless capability by 2010”

- Sir Howard Stringer, June ‘08

• SPE lacks a unified backend and standardized ad units that can provide targeted reach across platforms and content

• Premium TV, movies, music, and digital content

• Large, scalable ad sales organization with expertise selling across platforms

• Relationships with blue chip advertisers

SONY AD NETWORK

Leverage strengths in devices, content, and ad sales to create multi-platform Sony ad network

74

Advertising Sales Net Revenue (non digital)

$244$234

$224$237$232

$247 $247

$0

$50

$100

$150

$200

$250

$300

FY08 FY09 FY10 FY11

($ in MM) Q2/MRP Budget/Prior MRP

[$ TO BE UPDATED]

75

Digital Ad Sales

$4$11 $15

$52

$31

$84

$50

$4$2

$11

$8

$23

$17

$2$0

$20

$40

$60

$80

$100

$120 Crackle Digital Networks($ in MM)

FY08Q2/BDGT.

FY09MRP/PRIOR

FY10MRP/PRIOR

FY11MRP

$6

$15 $17

$63

$39

$107

$67

[$ TO BE UPDATED]

76


2. Core Programs

3. Programming

4. Digital Networks




8. Ad Sales

9. Appendix

mid range plan fiscal years 2009 – 2012 october 2008 [draft – as of 9/12]

Documents