BI Expansion – Super Universe May 29th 2012

Executive Summary Marketplace Complex and dynamic: Evolving rapidly driven by secular and cyclical factors, with more paths to reach the consumer Margin pressure: Shifting focus from top to bottom line performance with increasing price pressure in sell through and rental business models High stakes: Large potential swing in outcomes – almost $0.5B between the Benevolent Divide and Red Storm Rising in 2012 (SPHE modeled future scenarios) Home Entertainment Operating Model Strategic Imperatives: Ability to pull commercial levers to navigate to the Benevolent Divide Product and Channel Frameworks: Rationalize resource and financial investments Commercial Framework: Integration Product and Channel Frameworks Consumer demand: Understand dimensions for product and channel Performance management: ROI focus on key cost drivers: Trade spend, COGS, Cost to Serve, Marketing Internally, BI represents the foundation for much stronger commercial planning and productivity – commercial framework / sales and marketing / and efficiency – eliminating data scavenger hunts, increasing accuracy, repeatable processes, and normalized global views of performance. Our current Business Intelligence platform is not able to support the key objectives for the business and requires us to make an investment to be able to provide the business with the right insight at the right moment to make the right decisions.

Proposed Solution Build a new Horizon universe, “Super Universe”, that will provide: Global reporting and analytics Unified view of the data (Internal & Market) by aggregating multiple universes for flexibility and improved analytical performance New data elements not currently available in existing production universes. Performance necessary for the business to conduct rapid analysis Foundation for key business processes (Title Goal Setting & Global KPIs reporting) Productionalize current data roll ups to a repeatable, automated and single version of the truth, isolated from errors and offline management issues. Support long term strategic IT initiatives (Data Model Rationalization).

Financial Summary

Benefits Category $ Benefit Description Revenue Enhancement $1,000,000 $5,000,000 Year 1 Benefits 5 Year Benefits Cost Efficiencies $0 Risk Mitigation

Competitive Analysis What are other studios/corporations doing to address this issue? Fox and Warner are industry leaders in market share and have developed strong BI capabilities since the mid 2000’s. At the core of their capabilities, is an ability to understand different dimensions of demand which allows a studio to be more competitive in the marketplace. In SPHE annual customer surveys, Warner & Fox are consistently rated high because of their ability to utilize consumer/shopper insights to drive their business.

Timeline FY13 June July August September October November Development and Unit Testing System Integration Testing User Acceptance Testing Knowledge Transfer to Support Team Deployment & Go Live Support

Appendix

Budget Details FY12 FY13 Total Project Description Actuals Apr May Jun Jul Aug Sep Oct Nov Dec Total FY 13 Cost External Contractor/backfill BI Expansion Analysis, Design & BO Development $ 97,280.00 $ 12,800.00 $ 12,800.00 $ 12,800.00 $ 9,600.00 $ 112,000.00 $ 209,280.00 TeraData BI Expansion - Design Phase for High Level SuperUniverse Datamodel & BI expasion, title goal setting, global KPI's, Data acquisition strategy $ -   $ 124,856.00 TeraData BI Expansion - Super Universe Development. Deliverables will include source to target mapping, phsyical datamodel, ETL design, semantic layer model, superuniverse design, overall development, system integration testing, KT to TCS & Project Management $ 98,500.00 $ 394,000.00 TeraData Travel & Expenses $ 10,000.00 $ 40,000.00 Travel & Expenses: SME from Europe to LA x 3 trips $ 30,000.00 $ 137,656.00 $ 131,300.00 $ 121,300.00 $ 630,856.00 $ 798,136.00 Spent $ 97,280.00 Committed $ 150,456.00 Forecasted spend $ 550,400.00 $ 798,136.00 External Labor $ 209,280.00 TD phase 1 $ 124,856.00 TD phase 2 (current SOW) $ 434,000.00 Travel $ 30,000.00   $ 798,136.00