1

$73

$296

$34

$77

$373

$107

$0

$50

$100

$150

$200

$250

$300

$350

$400

Actual Savings Inflation Adjusted Savings

Media Basics

Motion Pictures Marketing & Distribution Spend

($ In millions)

Marketing Savings – FYE11 Slate vs. Comparable FYE04 Slate

Budget Assumptions

• Actual marketing savings across the FYE11 slate total $107 million vs. comparable films released in FYE04

• Adjusted for inflation, the FYE11 marketing savings total $373 million vs. comparable films released in FYE04

Adjusted for inflation, marketing spend for the FYE11 slate is $373 million less than a comparable FYE04 slate

2

Motion Pictures Digital Cinema

Rollout Update

• 23,100 digital screens estimated to be installed worldwide by the end of 2010 with 32,900 projected by 2011o Today, there are over 8,000 digital screens in North America and

17,000 screens worldwide

• Easier access to capital has allowed deployment entities to gain financing for the installation of the digital screens o In North America, DCIP has received financing and will begin

rollout with AMC, Regal and Cinemark (comprises > 50% of the market)

• Digital 3D is now the standard with 16 3D feature releases from Hollywood slated for next year (SPE will be releasing Kenny Chesney Summer in 3D in April 2010, Resident Evil: Afterlife in September 2010 and Priest in January 2011)o Today, there are approx. 3,500 digital 3D screens in North

America and 8,300 digital 3D screens worldwide

3

Assuming 60-80% of box office from 3D and reasonable level of performance:• Box office increases 21-27%

based on higher ticket price*, before accounting for potential audience growth

• Studio theatrical revenue (net of glasses cost) is increased 13-17%**

• The net revenue uplift is generally greater than the $5-12M increase in production cost to shoot/convert the film to 3D

Motion Picture GroupPotential Gains from 3D Releases

Domestic Box Office of Recent 3D Releases

*Assumes long-term avg. ticket price premium of $2.50 (today’s average is $3.50). Excludes IMAX 3D, which has greater ticket price premiums.** Assumes 50% studio share of global box office and $0.40-$0.55 per ticket cost of glasses.

Recent 3D releases have seen significant share of box office from 3D ticket sales, driving higher revenue

DBO (to date) $113M $115M $721M

63%70%

82%

37%30%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cloudy with aChance ofMeatballs

Alice inWonderland

Avatar

3D Box Office 2D Box Office

Potential Uplift from 3D Release

Home EntertainmentNew Windows

• SPE is examining new windowing opportunities, including:

PPV/VOD window advanced to day/date with DVD release on selected titles

Evaluating potential for Premium Home Theater as an early, high-priced rental model

Exploring opportunity to create an early Blu-ray window, releasing titles on Blu-ray in advance of DVD

Identifying a subset of titles to be released earlier than the traditional 90-120 days post theatrical to take advantage of holiday buying and bring select titles into the fiscal year

Assessing impact of delay in selected rental models (Warner Brothers now delaying availability of films on Redbox and Netflix until 28 days after DVD street date)

30 60 90 120 150 180

Home Video(Theatrical + 90-

120 Days)Existing

Potential New

PPV / VOD(HV + 30-45 Days)

0

Premium Home Theater(Theatrical + 45-60 Days)

Earlier Blu-ray

Earlier Selected

DVD Titles

PPV / VODDay / Date

Delay Selected Rental Models

5

Digital ProductionsImageworks

• Serve SPA and Columbia as a dependable source of digital animation and VFX expertise

• Maintain industry leadership in quality

• Secured larger budget third-party work (Disney’s G-Force, Alice in Wonderland and now Warner Bros’ Green Lantern) as a means to reduce SPA and Columbia production cost (less gap cost, shared overhead, shared R&D, stronger talent pool)

• Developed an organization that provides expertise in 3D

• Dedicated in-house organization for VFX and animation saves SPA roughly $20 - $30 million per film

6

Cost Reductions driven by:

• Reducing labor costs through minimizing artist gap time and recruiting lower cost talent

• Simplifying production technology and standardizing software tools to increase efficiency

• Lowering real estate cost through more efficient use of Imageworks’ space

• Continue to shift work to satellites in tax and cost advantaged areas – New Mexico, India and soon-to-be opened facility in Vancouver

Digital ProductionsImageworks – Cost Reductions: FYE08 through FYE11

$12,761$13,961

$32,664

$46,152

$0

$10,000

$20,000

$30,000

$40,000

$50,000

FYE08 FYE09 FYE10 FYE11

FYE08-FYE11 Costs

($ In thousands)

Imageworks has dramatically reduced costs by $33.3 million (-53.4% CAGR)