1 1. executive summary 2. networks 3. distribution & ad sales 4. production 5. appendix

1

1. Executive Summary

2. Networks

3. Distribution & Ad Sales

4. Production

5. Appendix

2

Goals

• Grow our first-run syndication business

• Maximize feature film revenues

• Deliver maximum ad revenue to signature properties – Seinfeld, Dr. Oz and Crackle

• Establish SPTAS as the primary ad sales organization across Sony

• Leverage international sales to secure strategically important network dramas

3

Distribution & Ad Sales Financial Summary

Profit Contribution RevenueEBIT

[U.S. & International (includes Ad Sales)]

[New Create]

4

U.S. Ad Sales – Goals

• Continue emphasis in evergreen programming (Seinfeld, Wheel of Fortune and Jeopardy!

• Bring on new high CPM advertising partners for Dr. Oz

• Develop new revenue opportunities with Branded Entertainment

• Leverage Ad sales strengths with content and devices to create multi-platform Sony Network (i.e. PlayStation store, BIVIL, PlayStation Home)

• Evaluate acquisition of ad serving platform to drive Sony Network as well as create additional revenue through licensing of the ad serving software

5

• 08/09 ad market tremendously challenged but national TV segment showed least decline

• 2nd and 3rd quarter scatter market very strong with pricing above what was sold in last years upfront

• 09/10 Upfront experienced some negative pricing and lower volume

• Historically, challenged National Advertising years are followed by robust advertising market [need to add empirical data]

• Digital market growing but pace slower due to economic situation

U.S. Ad Sales -- Market Environment

6

U.S. Ad Sales – Strategic Initiatives

• Drive revenue on signature properties– Stronger scatter market will help drive 09/10 ad revenues for key programs– Historically, down ad market years bounce back with solid markets the following

year

• Increase digital revenues– Advertisers are increasing embracing advertising on the web– Agencies are taking an holistic approach to advertising combining traditional,

digital and VOD– Sony Music online sales continues to be challenging

• Establish SPTAS as the primary ad sales organization across Sony– Creation of a Sony Network connecting ad sales, content and devices would be

greatly enhanced with a unified ad serving solution– Eliminate lack of scale challenges within Sony platforms scale through bundling

various platforms invenotry (i.e. PlayStation inventory with Crackle)

• Expand success with FEARnet digital advertising into VOD and Linear – Launch of linear channel and dynamic ad insertion technology will aid in

maximization of FEARnet VOD and digital inventory

7

U.S. TV Advertising Sales Net Revenue

Profit Contribution $XMM $XMM $XMM $XMM

TO B

E UPD

ATED

8

U.S. Digital Ad Sales

FY10Q2/BDGT.

FY11MRP/Prior

FY12MRP/Prior

FY13MRP

$7

$15$11

$37

$17

$61

$24

• Crackle includes global onsite/offsite ad revenue, not including licensing and integrated sponsorships• Digital Networks/Studio revenue excludes revenue share from Crackle

ProfitContribution

$XMM $XMM $XMM $XMM

TO B

E UPD

ATED