spt business overview november 27, 2012 1. sony pictures television business overview 2 production...

SPT Business Overview

November 27, 2012

1

Sony Pictures Television

Sony Pictures TelevisionSony Pictures Television

Business Overview

2

ProductionProduction NetworksNetworksDistribution & Ad Sales

Distribution & Ad Sales

SPT Organization Overview

3

Steve MoskoPresident, Sony

Pictures Television

Andy KaplanPresident, Worldwide

Networks

John WeiserPresident, Distribution

Michael DaviesPresident, Embassy Row

Corii BergSr. EVP, Production

Business Affairs

Harry FriedmanExecutive Producer

Zack Van AmburgPresident, Programming

Jamie ErlichtPresident, Programming

Keith LeGoyPresident, Distribution

Amy CarneyPresident, Ad Sales, Strategy & Research

Chris ElwellEVP, Distribution Business

Operations

Andrea WongPresident, Int’l Production

Paula AskanasEVP, SPT Communications

Sheraton KalouriaEVP and Chief Marketing

Officer

Organizational Change

• Pursued opportunities to drive organizational change around strategy, structure, processes and culture that drive sustainable growth

− Merged Domestic and International TV into one Worldwide TV Business− Eliminated regional matrix reporting structures− Consolidated Business Affairs under one head (Corii Berg)− Consolidated Marketing under one head (Sheraton Kalouria)− Consolidated Research under one head (Mumford and now Amy Carney)− Consolidated Contract Sales/Rights Admin under one head (Chris Elwell)− Consolidated International Production Format Sales under International Distribution− Reorganized and transformed a small start-up user generated dotcom (Grouper) into a multi-platform

digital network projected to deliver a revenue contribution of $113mm in FY 16

4

Talent Development

• Leveraged our high performing/high potential internal talent to create organizational agility in responding to shifting business objectives and market conditions globally in addition to providing individual growth opportunities

− Donna Cunningham – EVP Operations – International Production (moved from Culver City to Miami to London)− Maria Smirnova – Managing Director International Production Russia & Ukraine− Mike Wald – EVP Distribution EMEA (moved from Culver City to London)− Jane Dockery – SVP Distribution Global Formats − Ed Louwerse – SVP Production Management, Distribution − Selina Nederhand – VP Distribution LATAM (moved from the Netherlands to Miami) − James Farrell – SVP Distribution, Japan (moved from Canada to Japan)− Simon Bathe – Executive Director Digital Distribution LATAM (moving from Germany to Miami )− Kylie Munnich – SVP Distribution LATAM (moved from Australia to the UK )− Mark Young – SVP Distribution Australia/NZ (moving from UK to Australia)− Angel Orengo – EVP Distribution Asia (moved from Miami to Hong Kong)− Superna Kalle – SVP Networks & GM Sony Movie Channel− Kate Marsh – SVP Western Europe – Networks− Lyle Stewart – SVP CEEMA – Networks− Amy Carney – President Ad Sales, Strategy and Research (moving from NY to Culver City)− Sheraton Kalouria – EVP and CMO Marketing − Philip Martzolf – EVP Syndication Sales− Flory Bramnick – EVP Cable Sales 5

Talent Acquisitions

• Effectively increased organizational capability with key strategic hires

− Andrea Wong – President International Production (Lifetime Networks)− Wayne Garvie – EVP & Chief Creative Officer International Production (All3Media)− Veronica Pimstein – SVP Creative International Production – Miami (Univision)− Kevin Byles – SVP Distribution – Canada (AVTEL Media Communications Inc)− Lucia Cottone – SVP Development & Current Programming – Networks (Lifetime Television)− John Rossiter – General Manager AXN HU – Networks (HBO)− James Smith – SVP Digital Ad Sales – Crackle (Disney Interactive Media Group)− Rene Santaella – General Sales Manager – Crackle (Disney Interactive Media Group)− Jeff Meier – SVP Programming Sony Movie Channel (Lionsgate Entertainment)

6

Television Business is Growing

Se-ries1

0

100

200

300

400

500

600

700

800

900

11

Monetization$MM

FY13Frcst

FY14Current

FY15 Current

FY16 Current

7

15% CAGR

• Networks – Networks projected to have an EBIT CAGR of 23% across the plan, expected to break earnings records in each year. The growth comes from all regions across the world as newer channels mature to profitability and more mature channels grow or maintain their margins

• U.S. Production– EBIT projected to grow 21% over the plan from $290MM to $351MM driven by a pipeline of programming sold to SVOD and Off-net syndication

• International Production – International Production projected to have an EBIT CAGR of 78% across the plan. Moderate organic growth from existing operating companies is supplemented by EBIT contributions from recent acquisitions Left Bank and Silver River as well as the inclusion of a hit format starting in FY15

$564

$625

$765

$859

553

SPT EBIT projected to grow at a rate of 15% CAGR

SPT Consolidated EBIT

FYE13Gross

FYE13Net

FYE16Gross

FYE16Net

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$5,217

$3,648

$6,972

$5,389

Sony Pictures Television

Revenue and EBIT – Today and Tomorrow

Revenue EBIT($MM) ($MM)

8FYE13 FYE16 $-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$553

$859

Note: EBIT excludes monetization of $11MM in FY13 and 3NET EBIT of ($6MM) in FY13 and ($2MM) in FY16.

Gross Revenue Net revenue EBIT($MM) FYE13 FYE16 FYE13 FYE16 FYE13 FYE16

U.S. Distribution 778 632 48 40 34 25 Int'l Distribution 1,630 1,895 9 5 (45) (54) Int'l Production 233 513 294 573 6 34 U.S. Production & Ad Sales 1,058 1,450 1,761 2,191 290 351 Networks 1,518 2,482 1,536 2,580 268 503 Total 5,217$ 6,972$ 3,648$ 5,389$ 553$ 859$

U.S. Production

9

What We Do Well, Where We Need Improvement-U.S. Production

10

• Develop broadcast network hits

• Keep a broadcast drama on the air

• Collaborate better with International Production in development/exploitation of scripted and unscripted formats

• Lead assertively in control of production costs and in improving series economics vis-à-vis network buyers

What we need to improve

• Receive consistently strong pilot orders, pilot to series conversions and series renewal rates

• Launch and monetize cable dramas

• Grow series on air on a modest development budget

• Produce a broad range of diversified content, including for new media

• Align production and financial goals

• Combine business strategy with entrepreneurship and creativity

• Position SPT as most entrepreneurial TV studio

What we do really well

U.S. Production: Forecast

Projected Earnings Growth

11

FY13 FY14 FY15 FY16 -

200

400

600

800

1,000

1,200

1,400

1,600

-

20

40

60

80

100

120

1,144 1,289 1,352

1,500

68 78

113 101

Current Series, Pilots & Development Costs

FY13 FY14 FY15 FY16 -

50

100

150

200

250

300

350

400

450

500

-

20

40

60

80

100

120

140

160

180

402 397 411 429

151 144 155

167 Wheel of Fortune, Jeopardy! & Daytime Dramas

FY13 FY14 FY15 FY16 -

10

20

30

40

50

60

70

80

90

-

1

2

3

4

5

6

7

8

9

33

53

76 83

5 6

7

8 Embassy Row

Revenue EBIT

($MM)

Library

FY13 FY14 FY15 FY16 150

155

160

165

170

175

180

40

50

60

70

80

90

100

110

175

163 160

163

102 104 103 104

U.S. Production: Organization Overview

12


Pictures Television

Jamie ErlichtPresident, U.S. Programming

Zack Van AmburgPresident, U.S. Programming

Holly JacobsEVP, U.S. Reality &

Syndication Programming

Suzanne Patmore GibbsEVP, U.S. Drama

Development

Glenn AdilmanEVP, U.S. Comedy &

Animation

Dawn SteinbergEVP, U.S. Talent & Casting

Helen VernoEVP, U.S. MOWs / Minis

Steve KentSr. EVP, U.S. Format

Production

Kim RozenfeldEVP, U.S. Current

Programming

Ed LammiEVP, U.S. Production

13

Charlie’s AngelsPan Am

UnforgettableNecessary Roughness

Re-ModeledSubstitute

Breaking InFranklin & BashHappy Endings

The Big CNate BerkusCommunity

Rules of EngagementShark Tank

The Sing-OffThe BoondocksBreaking Bad

DamagesDrop Dead Diva

HawthorneJustified

Rescue MeDr. Oz

Newlywed Game

2011–2012

24 series

14$(86)MM

• Rules sold in syndication in 97% of U.S.• 7 shows on 2011 primetime fall schedule (most since 2002)• SPT has broadcast programming on 6 of 7 nights of the 2011

fall schedule

• Rules sold in syndication in 97% of U.S.• 7 shows on 2011 primetime fall schedule (most since 2002)• SPT has broadcast programming on 6 of 7 nights of the 2011

fall schedule

• Only studio to get a new series on each of the 5 broadcast networks

• Rules of Engagement becomes primetime’s #2 comedy

• SPT becomes the #1 producer of scripted cable series

• SPT achieves 29 Emmy nominations

• The Shield becomes SPT’s first cable-to-cable series sale; $32MM

• SPT successfully launches Dr. Oz• Rescue Me sells into U.S. syndication

and has an ultimate profit of $55MM

• Highest volume year in SPT history with 13 stand-alone profitable series

• Three primetime broadcast reality series• SPT has more new broadcast comedy series than

any other studio

11 series

Book of DanielEmily’s Reasons

Love MonkeyBeautiful PeopleThe BoondocksKing of Queens

HuffRescue Me

Strong MedicineThe Shield

Judge Hatchett

16 series

SPT Timeline: 2005 – 2012(excluding Wheel of Fortune, Jeopardy!, Days of Our Lives,Young & The Restless)

PilotsInv. Pool

16$(96)MM

2007–2008

17 series

Canterbury’s LawCashmere Mafia

Power of 10Spider-Man

Viva LaughlinBreaking Bad

DamagesJudge David Young

Rules of Engagement

Til Death10 Items or LessThe Boondocks

My BoysRescue MeThe Shield

Judge HatchettJudge Maria Lopez

15$(78)MM

2008–2009

17 series

Sit Down, Shut UpThe Unusuals

The BeastNewlywed Game

Judge KarenRules of

EngagementSpider-Man

Til Death10 Items or LessThe BoondocksBreaking Bad

DamagesMy Boys

Rescue MeThe Shield

Judge David YoungJudge Hatchett

8$(63)MM

2009–2010

17 series

BrothersCommunityShark Tank

The Sing-OffDrop Dead Diva

HawthorneJustified

Make My DayDr. Oz

Rules of Engagement

Til DeathThe BoondocksBreaking Bad

DamagesMy Boys

Rescue MeNewlywed Game

12$(72)MM

Happy EndingsMad Love

Mr. SunshineBreaking InPlain JaneThe Big C

Franklin & BashNate BerkusCommunity

Rules of EngagementShark Tank

The Sing-OffThe BoondocksBreaking Bad


HawthorneJustifiedMy Boys

Rescue MeNewlywed Game

Dr. Oz

2010–2011

22 series

14$(85)MM

16$(81)MM

25 series

9$(80)MM

• Community sold to SVOD and Cable


• 4 new series premiering on all 4 major broadcast networks

• Community sold to SVOD and Cable


• 4 new series premiering on all 4 major broadcast networks

Big DayHeist

KidnappedRules of

EngagementRunawayTil Death

10 Items or LessMy Boys

Judge Maria LopezGreg BehrendtThe Boondocks

HuffKing of Queens

Rescue MeThe Shield

Judge Hatchett

Mob DoctorLast Resort

Made In JerseySave MeThe Job

Men At WorkMasters of Sex

Client ListPyramid

Franklin & BashHappy Endings

The Big CNecessary RoughnessCommunity

Rules of Engagement

UnforgettableShark Tank

The BoondocksBreaking Bad


JustifiedSubstitute

Dr. OzNewlywed Game

2012–20132005–2006 2006–2007

Current Series, Pilots & Development Costs:Challenges and Opportunities

14

OpportunitiesChallengesMRP Assumptions

• Invest in A-list writers, directors and producers for future drama / comedy / unscripted development

• Develop series with broad international appeal with globally marketable talent to sell in the US and abroad

• Grow international revenue through exploring co-production opportunities and maximizing tax credits

• Improve production cost controls• Position SPT at the forefront of the

burgeoning subscriptions VOD market (Netflix, DirecTV) to sell and develop series

• Further identify and develop businesses around Shark Tank, Dr. Oz, and Queen Latifah

• Keep shows on network to reach syndication

• Compete to get shows commissioned, networks pressured to use their own studios

• Receive proper promotion from networks

• Produce programming that responds to the evolving consumer viewing habits

• Combat decline in broadcast network total output (26 this season vs. 30 last season) and new series pick-ups (-3)

• Broadcast networks struggle in the ratings and addition complications arise due to Live vs. Live + Delayed viewing (i.e. VOD, DVR)

• Grow a steady pipeline of programming sold to SVOD and off-net syndication: Last Resort, Happy Endings, Justified

• Premier 3 new broadcast network series every year with 1 returning every year for multiple seasons

• Premier 2 new cable series each year with all returning for multiple seasons

Wheel of Fortune, Jeopardy!, Daytime Dramas:Challenges and Opportunities

15


• Extend brands into cable and digital through ancillary programs Sports Jeopardy!, Rock and Roll Jeopardy! and/or Kid's Wheel

• Expand brands into other arenas including physical gaming devices (slot machines), branded lottery tickets and other technologies

• Exploit digital rights in numerous categories online and on multiple devices

• Establish an international gaming platform using the branded shows with the anticipation of legalization of digital gaming in the U.S.

• Maintain viewership levels and high licensing fees for mature assets in the face of declining syndicated television viewing

• Maintain viewer loyalty when on-air talent retires

• Continue to grow despite the lack of direct control over domestic and international sales organizations at CBS


• Keep these 4 series on air through the MRP period with little change in economics over the period

• Renew with IGT in FY16

16

Embassy Row: Challenges and Opportunities


• Capture additional opportunities for unscripted programming on certain networks

• Develop broad appeal series / minimize work-for-hire

• Build a West Coast based unscripted development brand


• Develop broad appeal series

• Utilize capacity (work-for-hire projects have lower margins)

• Grow IP / owned series production with limited development fund

• Develop docu-reality series, talent-based, and real-life competitions

• Grow international revenue through exploring opportunities and maximizing tax credits

• Shift product mix towards IP / owned series which grow from 6 to 10 over the MRP period

Library: Challenges and Opportunities


17

• Expand integration / collaboration with International Distribution for maximum global impact of U.S. product

• Monetize library through expanded distribution into new platforms (SVOD, FOD)

• Continue to identify new distribution windows/opportunities through robust sales planning

• Receive premium pricing on aging assets

• Appeal to changing consumer preferences and viewing habits

• Grow distribution revenue

International Production

18

What We Do Well, Where We Need Improvement-International Production

19

• Develop global hit format

• Achieve scale and pipeline in major format generating territories (UK, Netherlands, Scandinavia)

• Foster a more creative culture across the organization

• Collaborate better with U.S. Production in the development/exploitation of scripted and unscripted formats


• Expand footprint of international production businesses

• Enter growth markets (e.g., Russia, LATAM)

• Streamline production administration and collaboration within and across territories


International Production: Forecast

Int’l Production Projected Revenue and EBIT

FY13 FY14 FY15 FY16 -

100

200

300

400

500

600

700

-

5

10

15

20

25

30

35

40

294

433 530

573

6

13

28

34

Revenue EBIT($MM) ($MM)

Note: EBIT excludes FY13 monetization of $11MM

20

International Production: Organization Overview

21


Pictures Television

Wayne GarvieChief Creative Officer

Donna CunninghamEVP Operations

Mary ChanVP Production – Asia

Nathalie CivraisSVP Production – France

Andrea WongPresident, Int’l

Production

Astrid QuentillSVP & MD – Germany

OpenSVP & GM – Latin America

/ U.S. Hispanic

Maria SmirnovaMD Production – Russia

and Lean M

Ziad KebbiPresident, SPT Arabia

Jeff LernerSVP, Scripted Dev &

Production

International Production: Challenges and Opportunities

22

• Continue to exploit Millionaire, develop a stable base of other successful formats

• Make more focused and sustained investment in development, executives, producers, production companies, and new content especially in the UK

• Foster a more creative culture to develop intellectual property by:

− Realigning the organization, including a new President and a creative head

− Combining the print sales and format sales teams to better serve our buyers

− Creating a strategically centralized development fund

− Implementing a competitive incentive plan

• Simplify admin, operational process

• Explore opportunities in emerging markets

Opportunities

• Excel in an increasingly competitive marketplace

• Operate in a challenging economic climate in key markets

Challenges

• Achieve moderate growth from existing operating companies supplemented by EBIT contributions from recent acquisitions Left Bank and Silver River

• Assume a hit format starting in FY15

• Assume $50MM annual investment fund for FY14-FY16

MRP Assumptions

23

U.S. Distribution and Ad Sales

What We Do Well, Where We Need Improvement-U.S. Distribution and Ad Sales

24

• Improve coordination with Networks and Finance

• Improve coordination between ad sales and syndication sales


• Distribute TV and movies using a product-centered approach: customized release plans and windowing across platforms for different types of TV series and features

• Manage sales planning, forecasting, analytics and business affairs

• Collaborate across SPT groups and SPE divisions− Ensure that Distribution deals support and coordinate

with Networks carriage deals− Leverage TV deals for home video deals where clients

are in both businesses− Rep inventory for PlayStation

• Position SPT as a syndication and ad sales leader outperforming others in market

• Leverage traditional TV ad sales along with digital inventories/platforms (FearNet, PlayStation)


U.S. Distribution & Ad Sales: Forecast

U.S. Distribution Projected Revenue and Profit Contribution

25

U.S. Ad Sales Projected Revenue and Profit Contribution

FY13 FY14 FY15 FY16 -

100

200

300

400

500

600

700

800

900

40 46 33 29

453 365 368 347

285 367

270 256

352 323 298 281

WWAG MPGTV Profit Contribution

($MM)

FY13 FY14 FY15 FY16 -

50

100

150

200

250

300

350

400

450

-

20

40

60

80

100

120

140

$184

$260

$330

$392

$34

$61

$103

$128

Revenue Profit Contribution($MM)

U.S. Distribution and Ad Sales: Organization Overview

26

Stuart ZimmermanEVP, Ad Sales

Richard BurrisEVP, Strategic Planning &

Analysis

Chris KiriakatisSVP, Digital Ad Sales

David MumfordEVP, Planning & Research

Amy CarneyPresident, Ad Sales, Strategy & Research

Travis HoweSVP, Digital Ad Sales


Pictures Television

John WeiserPresident, U.S.

Distribution

Thanda BelkerEVP, U.S. Pay & TV Sales

Flory BramnickEVP, U.S. Cable

Alan DanielsSVP, Distribution Planning

Phil MartzolfEVP, U.S. Syndication

Sales

U.S. Distribution: Challenges and Opportunities

27

• Renegotiate Starz output deal• Sell library film and TV series into

non-exclusive subscription deals• Split library windows, license

multiple rights, structure non-exclusive deals

• Sell slate carve-out windows utilizing more aggressive inventory tracking and planning

• Develop consistent flow of first-run product with top talent

Opportunities

• Maintain Starz relationship after spin-off and deal with uncertainty regarding Starz’s original programming strategy

• Achieve substantial library targets in a challenging marketplace

Challenges

• Increase feature library sales throughI. Strategic use of driver inventory

to leverage broad package sales

II. Hyper-targeted offerings with premium pricing

III. Multiple nonexclusive buyers and bulk buys to drive low-rated product

• Leverage SVOD licensing and strategic product planning for U.S. channel carriage

• Project revenue and corresponding profit contribution swings based on release timing, size of theatrical slate and timing of off-net syndication avails (e.g., Rules of Engagement, Community, Happy Endings)

MRP Assumptions

Ad Sales: Challenges and Opportunities

28

• Diffuse volatility in TV ad revenue market by growing a strong digital base

• Drive additional revenue for first run through advertiser integrations

• Expand current base of advertisers for :30s and :10 to off-nets

• Find new 3rd party representation opportunities

• Continue to support cable / network properties through Branded Entertainment

• Develop and pioneer high value-rich media placements on connected devices

Opportunities

• Grow within the limits of available shows

• Compete for limited opportunities for 3rd party ad sales representation

• Achieve projected pricing despite volatility in U.S. ad market and aging series

Challenges

• Drive additional revenue for first run through pricing increases and advertiser integrations

• Increase share in TV market upfront

• Expand list of advertisers for 30s / 10s

• Sell at levels of 70% or higher in upfront and sell remaining inventory at premium CPMs

MRP Assumptions

29

International Distribution

What We Do Well, Where We Need Improvement-International Distribution

30

• Improve and streamline marketing, business affairs, planning and admin support

• Integrate format and program sales


• Execute strong output agreements for film and TV

• Align with U.S. production better than competition

• Leverage across media/lines of business with large consolidated buyers on behalf of transactional, SVOD and traditional TV

• Collaborate on transactional businesses with SPHE


International Distribution: Forecast

Strong and consistent growth

Int’l Distribution Projected Revenue and Profit Contribution

31

FY13 FY14 FY15 FY16 -

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

-

100

200

300

400

500

600

700

800

160 170 175 180

960 975 963 1,008

510 567 634 707

634 653

662 685

WWAG MPG TV Profit Contribution($MM)

International Distribution: Organization Overview

32


Pictures Television

Keith LeGoyPresident, Int’l

Distribution

Ed LouwerseSVP, Product Management

Paul LittmanSVP, Global Sales

Mike WaldEVP, Distribution EMEA

Alex MarinSVP, Distribution, Latin

America

Angel OrengoEVP, Distribution,

Asia/Pacific

Kevin BylesSVP, Distribution, Canada

International Distribution: Challenges and Opportunities

33

• Broaden scope of broadcaster relationships to explore English language, European content, co-production opportunities

• Exploit opportunities for distribution into new platforms (SVOD, FOD)

• Close long-term deals in key markets

• Focus on select emerging markets to expand SPT’s presence and better capitalize on opportunities (Netherlands, Scandinavia, Poland, Hungary, South Africa)

• Broaden scope of broadcaster relationships to explore English language, European content and co-production opportunities

Opportunities

• Handle shifts in feature film slate• Ensure we keep rights to key

revenue-driving feature film franchises

• Access to breakout / hit drama

Challenges

• Drive TV product revenue growth through sustained delivery of network dramas

• Invest in International Distribution

• Drive revenue pipeline through new market entrants

• Establish stronger relationships in key markets

MRP Assumptions

Networks

34

What We Do Well, Where We Need Improvement-Networks

35

• Strengthen network brands and programming identities for existing channels

• Build a bouquet of digital networks

• Focus on hit shows, especially for mature networks (e.g. GSN, SET Brazil/LATAM)


• Launch new channels, move early in growth markets

• Grow revenue and EBIT

• Establish Crackle as a market leader in its category


Networks: Forecast

Projected Earnings Growth

FYE13 FYE14 FYE15 FYE16 $-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

-

100

200

300

400

500

600

$1,536 $1,961

$2,258

$2,580

268

328

410

503

Revenue EBIT

EBIT projected to reach over $500 million in FY16, projected to grow at a 23% CAGR over the MRP period

EBIT Margin: 17.4% 16.7% 18.2% 19.5%

($MM)

36

As a result of recent investments, North America and Europe projected to grow as a percentage of Networks’ EBIT from 24% in FY13 to 36% in FY16

North America; 17%

Europe; 7%

Latin America; 21%India; 39%

Rest of Asia/Australia; 16%

FY13 EBIT by Region

North America; 23%

Europe; 13%

Latin America; 16%

India; 36%

Rest of Asia/Australia; 12%

FY16 EBIT by Region

Networks: Organization Overview

37

Andy KaplanPresident,

Worldwide Networks

Eric BergerEVP, Digital Networks

Marie JacobsonEVP, Programming &

Production

George ChienSVP, Networks, Asia

Superna KalleSVP, GM, Sony Movie Channel & Cine Sony

Bob BilleciEVP, Technical Operations

T.C. SchultzEVP & MD, Latin America

Ricky OwEVP, Singapore


Pictures Television

Masao TakiyamaSVP, Japan

Kate MarshSVP, Western Europe

Lyle StewartSVP, Central EMEA

Networks: Challenges and Opportunities

38

• Launch channels in new and existing territories

• Increase investment in Crackle U.S. ad and technical infrastructure

• Maximize value in Crackle US and expand internationally (Latin America, UK, Canada)

• Expand SPTL Asia facility to service EMEA channels

• Consider portfolio synergies with GSN

• Grow digital through new or add-on acquisitions

Opportunities

• Grow ad revenues despite the global pressure on ad sales driven by macro economy

• Operate under economic volatility and political uncertainty in Latin America

• Develop growth strategies for smaller up-and-coming territories

• Keep content costs in line

Challenges

• Grow in all regions across the world as newer channels mature to profitability and more mature channels grow or maintain their margins

• Focus next 18 months on maximizing efficiencies in existing operations

• Increase investment in Crackle U.S. advertising and technical infrastructure

MRP Assumptions

Closing

39

Other Ideas for Change

• SPHE

• Management of the Lot

• Outside financing

• AMC

• Expand Embassy Row west coast

• Ad Sales synergies

• Airline sales

40

spt business overview november 27, 2012 1. sony pictures television business overview 2 production...

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