Crackle and Digital Channels OTT Infrastructure June 20, 2013 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential Agenda Recap Findings Recommendations 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential Recap Objective “Provide a three or four year vision around potential common architecture and/or processes, at a high level view, for MRP” Methodology Business Model/Process Analysis Tools and Architecture Analysis Document Pain Points (Current and Forward Looking) Deliverables As-Is Process Analysis Reference Architecture Short-Term MRP Cost Analysis and Implementation Timeline Recommendations and Potential Future Roadmap 1/12/2019 Sony Pictures Entertainment Confidential

Conceptual Architecture Digital Networks Crackle 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential Findings Initial Recommendations Common Spec for Source Delivery Common Process for Content Acquisition Common Asset Repository Package Archive Manage Asset Preparation Further Recommendations Technical Operations “Content Librarians” Non-Linear scheduling Rights Management and Metadata Leverage Architectural Investments Ad Coordination Common CMS Common Delivery 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential Considerations Rapid Change The business and technology landscape is changing rapidly Must be agile to meet changing consumer preferences Distributed International Business DigiNetworks’ business is very regional due to ties with linear networks Crackle is moving towards greater regionality; three instances in use today Process change is difficult to introduce due to distributed workforce Centralized vs. Decentralized Organization and Infrastructure Benefits: Economies of scale, Consistent processes Challenges: Less regional specialization, regional business requirements missed 1/12/2019 Sony Pictures Entertainment Confidential

Initial Recommendations 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential The Challenge Diverse processes for gathering content Content is received from many sources Source materials vary in format and quality Files are received through a number of transfer mechanisms Processes vary by region Work is difficult to track Assets are difficult to locate, identify, and track Work is repeated to re-create or re-gather content 1/12/2019 Sony Pictures Entertainment Confidential

Recommendation #1: Content And Workflow A common package specification should be defined Published standards for Video, Audio, Images, Metadata Both for source material vendors and in-region normalization A common delivery platform to receive content Aids in asset tracking and consistency of process Aspera Shares provides a central area for receiving and packaging content as well as moving to a single reliable transfer method 1/12/2019 Sony Pictures Entertainment Confidential

Recommendation #2: Common Asset Repository A common area for both centralized working storage and long-term archive would streamline processes Two-Phased Recommendation Short Term – Central Storage – Managed Manually, Aided with Tools Long Term – Full DAM System – Integrated with metadata and workflow tools Estimated ~$4 million cost over 3 years Both on-premise and cloud-based solutions should be considered An evaluation of needs after implementation of short term solution should be conducted 1/12/2019 Sony Pictures Entertainment Confidential

Common Asset Repository As-Is Proposed 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential Estimated Timeline Quarters from Project Start 1 2 3 4 5 6 7 9 Common Repository   Gather Requirements Define Package Specification Central Working Storage Package Creation and Data Entry Tools Update Procedures for Central Storage Central Archive Utilization By Crackle Evaluate Needs Asset Management System Update Procedures To Account For DAM Integration with OVP & CMS Key Process Technology 1/12/2019 Sony Pictures Entertainment Confidential

Further Recommendations 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential Shared Operations Technical Operations Crackle current uses WPF and external vendors to receive and prepare content DigiNetworks leverages Linear Networks staff to receive and prepare content As more content is licensed from distributors that do not flow through WPF or the Linear networks, demand for content preparation will grow There is potential opportunity for cooperation where skills overlap “Content Librarians” A group dedicated to ensuring the library is clean and complete Package consistency and readiness Content normalization Metadata entry and upkeep Regional responsibilities across channels in support of various languages 1/12/2019 Sony Pictures Entertainment Confidential

Non-Linear Scheduling There is no single system managing non-linear scheduling across the digital properties Managed using documents, spreadsheets, and email This has implications for: Work tracking Ensuring rights are fully utilized Fulfilling contractual obligations Catch-up service scheduling can be derived from Linear schedules Common interface with Linear systems facilitates easier integration of new regions Non-linear properties (e.g. Animax, Crackle) require a different system approach The aggregation of non-linear scheduling information would give visibility to all regions for global planning/coordination Integration with rights, metadata, asset repository, CMS, and MAM systems become possible IT is taking initial steps to address this problem for linear-attached digital channels 1/12/2019 Sony Pictures Entertainment Confidential

Utilization of Upcoming IT Systems Rights Management Currently rights are identified and managed through emails and PDFs of contracts IT is selecting a new rights management solution Complex business rules for non-linear must be addressed Correctly structured data can be utilized to feed non-linear scheduling Requires data entry of rights information from contracts into system Title Metadata Management Metadata arrives inconsistently and is massaged to fit needs Complete Title metadata in GPMS (Global Product Management System) flows to other systems 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential Ad Coordination Freewheel Utilized by Crackle Freewheel not interested in supporting DigiNetworks Freewheel allows for improved tracking and reporting, access to networks Rich Media Ads Collaborative development, sales, and usage across sites/platforms Ad Sales for DigiNetworks SVOD Current model bundles non-linear, linear deals Unbundling sales of ads to non-linear channels may be beneficial 1/12/2019 Sony Pictures Entertainment Confidential

Technical Coordination Technical Sharing Group Monthly engineering discussion proposed Knowledge exchange Awareness of new developments in technology or requirements Format Testing Leveraging Investments Mobile/Platform Apps Internal Tools (e.g. Analytics Tools, Data Entry) 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential Common Platform (1/3) There are three main functions of the business after the content package has been created and scheduled OVP Transcode to user formats Handling of Content Protection Distribution to CDN CMS Web site layout and management Content discovery CDN Edge Content Distribution to end users 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential Common Platform (2/3) These functions overlap and differ in solutions between the groups. Commonality could provide benefits such as: Focused investment Fewer required integrations Reduced support expenses Considerations Ability to adapt to rapidly changing technology e.g. Brightcove  MPX Modular design is key There is no single perfect product or service over the long-term Generic interfaces between the modules allows for swappable technologies Common platform needs to support all business models 1/12/2019 Sony Pictures Entertainment Confidential

Sony Pictures Entertainment Confidential Common Platform (3/3) How do we decide if we should move to a common platform? Evaluate longevity of existing investments May be able to fill individual functions within a forward looking architecture Focus on near term business needs and developing modularity Weigh costs of building/maintaining vs. contracting SaaS vendors at projected volumes It makes sense at a low volume to use a SaaS provider and pay per-unit There is likely an inflection point where fixed in-house investment beats SaaS Model on business volume and complexity Evaluate timing of inflection point against the implicit costs/inertia of entrenchment with vendors 1/12/2019 Sony Pictures Entertainment Confidential

Digital Networks OTT + Crackle QC & Prep Repository Title Metadata Content from Linear Content from SPE Content from Distributors Promo Crackle Platform Consumer 3rd Party Platforms External post houses Contractual Rights Crackle Scheduling Crackle Have Proposed Will Need IT Services Key Digital Networks OTT + Crackle QC & Prep Repository Title Metadata Content from Linear Content from SPE Content from Distributors Promo Common Platform Consumer 3rd Party Platforms (incl. MVPD) Contractual Rights Scheduling from Linear Crackle Scheduling Digital Networks Scheduling QC & Prep Repository MPX Contractual Rights Scheduling from Linear Digital Networks Scheduling Title Metadata Content from Linear Content from Distributors Promo Web CMS (Drupal) Consumer MVPD

Sony Pictures Entertainment Confidential Appendix 1/12/2019 Sony Pictures Entertainment Confidential

Strawman Architecture 1/12/2019 Sony Pictures Entertainment Confidential

Agreed “Business Models” Promotional MVPD Access AVOD SVOD Second Screen TVOD Currently rental Could move into EST in the future 1/12/2019 Sony Pictures Entertainment Confidential