Executive Summary BIVL test provides SPE with an opportunity to achieve two goals Establish market terms that support SPT’s efforts to launch an early window VOD offering with cable, MSO, and DBS partners Ancillary benefit of supporting a Sony United initiative to generate market awareness for Bravia/BIVL Prior to announcement (June 26), the following issues must be addressed SPE to discuss the offering with talent, Starz, and VOD partners Talent payments in excess of wholesale may be required Agreement with SEL/SCA for indemnification of SPE and approach to transaction tracking / watermarking Determine whether DirectTV, iN DEMAND, Verizon, Movielink are able to opt-in to the test Agreement on price List price of $29.99 (or $19.99) Viewers pay $7.99 (or $3.99) after any coupons / discounts Viewing Period: 24 hour rental via streaming (agreed) Availability: 4 weeks prior to DVD/Blu-ray street date for a two week period (Oct 14-18) Offer to include promotional trailer for Blu-ray and other titles Confirm overall comfort with quality of service

Recommended Offering and Rationale Parameter Recommendation Rationale Deemed Price $29.99 (or $19.99) At premium to day-and-date; within “Home Theater” pricing range Cash Charge $7.99 (or $3.99) After any discounts or coupons, users must pay at least this amount with a cash equivalent to validate testing parameters Cash price would be in-line with current PPV offerings or proposed prices for new, day-and-date offerings Viewing Period 24 Hours Viewing period longer than 24 hours would conflict with Starz deal Availability 4 weeks, prior to DVD/ Blu-ray window Price and HD format are the primary drivers of consumer interest Timing is likely a more sensitive issue to exhibitors than customers Duration 2 Weeks Allows for 2 week blackout period before DVD/Blu-ray release window Split Greater of 85% of the deemed or actual price Increased percent split over current offerings is justified by increased revenue retained by distributor Timing Distributor to announce availability no earlier than +60 days from theatrical Market practice to not announce VOD before announcing DVD street date

Potential User Experience Discover Hancock channel Coupon pays balance to $29.99 Click movie Enter Payment Service credentials to pay $7.99 Payment Service examples: PayPal Amazon FPS Google Checkout Confirm rental Enjoy movie

Pricing Oliver Wyman Day-and-Date Analysis (1) Optimal day-and-date pricing is $7.99 to $8.49 per Oliver Wyman study Early window HD should clearly be at a premium to day & date Between $14.99 and $34.99, buy rates for HD early window are comparable to standard VOD at $3.99 (1-4% depending on title/genre) At this stage, HD early window test pricing should at least be in the mid-range of early window analysis (e.g., it’s too early to go low) We are evaluating $29.99 for the Hancock early window test Incremental Revenue ($MM) Optimal at $8.49 Offer Price Magid Early Window Analysis Offer Price Buy Rates (1) Relative to 2006 actuals, HD day-and-date rental at $8.49 yields net increase of $375MM (10%) in SPE U.S. Studio Revenue

Bravia / BIVL Early Window (1 month early) Wholesale SEL would pay SPE on the same terms as MSOs and DBS partners, satisfying obligation to participants Greater of 85% of the deemed or actual retail price is generally consistent with the $ value retained by service providers in the HD day-and-date window Pricing Format Model Split $ to Service Provider $3.99 Standard Def Standard VOD 60/40 $1.60 $4.99 High Def 70/30 $1.50 Day-and-Date VOD $7.99 -- $8.49 $2.40 -- $2.55 $29.99 (or $19.99) Bravia / BIVL Early Window (1 month early) 85/15 $4.50 (or $3.00) = Proposed pricing and split, no deals currently in place

Hancock Windows Proposed Early VOD to run for 2-week period between Oct 14-28, 2008 VOD would be dark for the two weeks immediately preceding HE release (11/11/08) Early VOD window does not affect Starz window as long as it starts later than 9/11/08 Starz is the earlier of 6 months from HE release date, 8 months from VOD, or 12 months from theatrical release Additional constraint of 3 month post-theatrical release (not before October 2, 2008) ` 2008 2009 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Standard Hancock Windows Theatrical Release 7/2 Hotel 10/1  4/11 Home Ent. 11/11 PPV / VOD (30-45 days post DVD) 12/11 or 12/26 Starz (through 8/10/2010) 5/11 FX (starts 10/11/2010 – 10/10/2015) Early Hancock VOD Window VOD on BIVL (2 wks) 10/1410/28 Starz Window

Messaging Process SPE to preview the terms of the initiative with Starz, Talent, and MSO/DBS partners in advance of the announcement; conversations may alter recommendations SPE to review the June 26 announcement Promotion of the offering would not commence before the normal black-out period extending 60 days from the theatrical release Message Elements Hancock will be the first blockbuster movie streamed directly to TVs and available in an early window Address the quality and timing of this offer relative to the ultimate HD offering (Blu-ray) Blu-ray and theatrical trailer to run at the start of the stream Press release should support our messaging of Hancock / BIVL as a test