1 Dual Consumer Profile: “A” Consumption CONSUMPTION OVERVIEW Apathetic account for: 9% of total consumption volume Average units/month: % of total illegitimate consumption volume Substitution Rate: 51% Illegitimate 48% Legitimate 52% CONSUMPTION TIMELINE Illegitimate Legitimate Knowing Unknowing DEVICES USED DVD player 64% TV 53% High Definition TV, 3D- capable TV, or IPTV 52% Computer 50% Digital cable, satellite or IPTV service47% Blu-Ray disc player 39% Internet connected set top box 36% TOP OFFICIAL METHODS TOP UNOFFICIAL METHODS METHODS OF VIEWING CONTENT NON-USA FILMS Average Accessed/ Viewed Past Month 3.3 Past 3 Mo.’s 7.6

2 Dual Consumer Profile: “A” Methods of Consumption Base: 281 Models of Consumption Methods of Consumption CurrentlySubstituted From Theater/ Cinema PPV/ VOD Download Stream DVD/ Blu-ray Buy (Illegitimate) Free (Illegitimate) 51% Substitution Rate Theater/ Cinema Rent (Legitimate) Buy (Legitimate) Legitimate Illegitimate Subscribe (Legitimate) Free (Legitimate)

3 Dual Consumer Profile: “A” Behavior PIRATING Digital/Hardcopy of Obtained Newly Released Movie? COPYING To Access Across Electronic Devices (1) WATCHING ON TV By Connecting Electronic Device to TV Yes No Yes, Succeeded Yes, Did Not Succeed Do Not Know Onto USB54% Hard drive53% Disc42% Portable electronic device 13% TERMS OF USE Read Digital Copy Terms Method Free download64% Purchased download49% Free stream34% DVD/Blu-Ray23% Purchased stream22% Digital copy purchased with a DVD/Blu-Ray 10%

4 Dual Consumer Profile: “A” Piracy Motivations PRIVE- VALUE FACTOR SHARING FACTOR CONVEN- IENCE FACTOR USAGE FACTOR TIMING FACTOR SUPERIO- RITY FACTOR SOCIAL FACTOR Completely AgreeSomewhat AgreeNeither Agree Nor DisagreeSomewhat DisagreeCompletely Disagree

5 Pirate Only Consumer Profile: Overview PIRATE ONLY COMPOSITION Males / FemalesM: 57% / F: 43% Age13-17: 19% 18-25: 25% 25-34: 27% 35-54: 29% Married?Yes: 52% / No: 48% Children in Household?Yes: 62% / No: 38% Average Yearly IncomeRs. 55,670 Education DEFINING ATTRIBUTES SCORED LOW ON: I often use social network sites to write about or rate the newly released movies I enjoyed or disliked I like to be part of the elite crowd that watches an american movie in the theater Digital media should enable me to watch movies on any device I own SCORED HIGH ON: I prefer to watch American movies dubbed in my language I don't mind waiting for a newly released movie to come to Blu-Ray disc or DVD before I watch it Feel the thrill and excitement of watching movies that have not been released yet Get to see movies before everyone else sees them Transfer a movie to other devices PIRACY MOTIVATIONSSOCIAL NETWORKING HABITS Do not visit Watch videos, read, and share posts (at least once a week) Comment on other posts (at least once a week) Create original posts, reviews, videos, etc. Comprise 4% of Total Consumers – xxx Visit ( less often than once a week)

6 Consumer Profile: NON-PIRATE “A” Methods of Consumption Legitimate 100% Models of Consumption Methods of Consumption Theater/ Cinema PPV/ VOD Download Stream DVD/ Blu-ray Theater/ Cinema Rent (Legitimate) Buy (Legitimate) Subscribe (Legitimate) Free (Legitimate) Base: 640

7 Social Networking Habits of Consumers Dual Consumers Do not visit Watch videos, reader and share posts (at least once a week) Comment on other posts (at least once a week) Create original posts, reviews, videos, etc. Legitimate Only Consumers Visit (less frequently than once a week)