Privileged and Confidential STRATEGIC CONSIDERATIONS 0

Privileged and Confidential –Differentiated content –Marketing Fundamentals 1 Acquire CustomersRetain/Monetize Execution –Goals –Priorities –Success on one platform and territory first, then broaden –Killer UI (competitive with XBOX) –Each offering is fully competitive (music competitive with Spotify)

Privileged and Confidential UI management –SNEI owns “content, service, platform” but each hardware group (PlayStation in particular) still has control of its UI and each has priorities that compete with SEN’s Marketing of the service –Need to determine how SEN is marketed; inside hardware ads is more valuable than in SPE ads or standalone SEN ads Notable Issues to Address 2

Privileged and Confidential Notable Issues to Address: Organization Today 3 Content Mixed: SNEI licenses in; SPE and SME support Platform SNEI Service SNEI UI Mixed: Hardware groups (e.g., PlayStation) have much control; SNEI has input not control

Privileged and Confidential Content and Service need to be managed as one; platform may be managed separately –Ineffective – Content for services becomes a new, standalone organization –Ineffective – Content expertise moves into SNEI but without oversight of service –Potentially feasible – Content expertise moved into SNEI with oversight of Content and Service aspect; platform managed by current SNEI leadership –Potentially feasible – Content and Service responsibilities moved into SPE; platform managed by current SNEI leadership UI needs to be a single organization that is “content service” led; not multiple “hardware group” led UIs –Ineffective – multiple UI groups in various hardware organizations, each with competing priorities –Potentially feasible – SEN takes direct control over a subset of each hardware group’s UI relating directly to network services –Potentially feasible – a single UI group is formed (or placed in SEN) that cuts across all hardware organizations Organizational Considerations 4

Privileged and Confidential Economic goals –Discuss willingness to accept significant near-term investment to ensure we can create a highly competitive service which will eventually yield: Significant service-level profits And, provide ancillary benefits to hardware Service customer acquisition vs. hardware sales goals –First: Convert more customers to active, paying SEN customers New accounts: Increase % of Sony Hardware customers that have SEN accounts Increase % of current accounts that are active / paying Increase revenues from current active / paying accounts –Then: Use the service, content offerings, and customer enthusiasm to drive hardware sales Recommended Goals 5

Privileged and Confidential Platform prioritization –First: Establish a superior service with differentiated content on a “hero” platform, namely the PlayStation –Then: Broaden that service in a uniform fashion across device platforms Geographic prioritization –First: Introduce new offerings in U.S. –Shortly after (a matter of months): Launch in 2-3 other key markets [Japan, Europe?] –Then: Roll-out globally at a realistic pace Demographic prioritization –First: The PlayStation demographic; males –Then: Broader Recommended Priorities 6

Privileged and Confidential Without changes in organization and priorities, we may be forced to prioritize improvements as 1.Improve existing services (Music Unlimited, Video Unlimited, PS+) 2.Add additional services and content (Crackle+; exclusive films) 3.Overhaul UI on various hardware platforms But to be impactful, all of these need to be handled simultaneously, ensuring a simple, compelling and differentiated service at launch in the fall of CY2012 Prioritization Challenges: Service Improvements 7

Privileged and Confidential EXECUTION 8

Privileged and Confidential Customer Acquisition Free / easy to discover content for customer acquisition through SPE and SME Increased marketing spend –Incorporation in Electronics TV ads –Increased SNEI budget –Increased support by SPE, SME, SCE Monetization Improved underlying services to capitalize on and monetize newly acquired customers Improved User Interface –Single promotional “landing page” with clearly highlighted content for Music, Video, Games 3 rd party services on PlayStation behind a pay wall (in-line with XBOX Live Gold) Execution Overview 9

Privileged and Confidential Why Try (Customer Acquisition) Customer Value Proposition – “Why Try / Why Buy” 10 Why Buy (Monetization) Vivo+ (Free) Compelling Service (Music Unlimited) Crackle+ (Free) Heavily Promoted and Exclusive Films (Early EST, PVOD, UV) VOD & EST PS+ required to access premium services Music Video PS+ (On PlayStation Only) Cross-Sell Gateway to Other Services Gateway to well- known 3 rd party services (e.g., Netflix) Single, Simple, Unified UI

Privileged and Confidential Potential Changes Vivo (current ad-supported version) on PlayStation immediately Build a solution for apps On the PlayStation, move the 3 rd party services behind the PS+ pay wall; keep Video Unlimited and Music Unlimited as peers to PS+ (not behind the PS+ pay wall); Crackle+ starts in front of pay wall Music service switches from 180 day trial of the “light” product, to a 30 day trial of the full product (and service is improved) Launch integrated search and UI across Music, Video, Games UV support by June Security for PVOD by October Projects that may now be duplicative Movie-a-day service (Crackle+ offering has greater volume free to consumer) Crunchy roll (incorporate Anime in Crackle+) Discuss SEN TV Execution – Tactics to discuss 11

Privileged and Confidential February:Announce support for UV February :Significant SPE and SME marketing support of existing services in the market May:Announce Crackle+ concept and upcoming originals June:First “Exclusive and Early” title available; UV support necessary Fall:Crackle+ and Vivo+ launch Biggest “Exclusive and Early” titles; security needed by October Preliminary Timelines 12