Privileged and Confidential Sony Pictures Entertainment and Sony Network Entertainment: Project Update February 1, 2012

Privileged and Confidential 1 Since meeting in December, we have made progress on three initiatives that will help differentiate Sony from competitors in the digital network entertainment space –Unique transactional models, including “PVOD with ownership” –Programmed video service called Crackle Plus on Sony platforms with exclusive originals and exclusive films to drive usage –Marketing and promotional content to drive traffic Completed milestones include –Specifics of unique transactional offerings identified –Crackle Plus content volumes identified and costed in more detail –Preliminary marketing and promotional opportunities identified, several in progress Critical next steps include –Incorporate in budgets –Completion of preliminary technical feasibility analysis on each project –Continue execution, including investment in content and technical build-out Executive Summary

Privileged and Confidential 2 Unique Transactional Models

Privileged and Confidential Exclusive “PVOD with Ownership” Product Concept 3 2-day rental of hit films such as MIB 3 streamed to a Sony connected device (e.g., PlayStation) for approximately $25 (1) ; available roughly (1) days after theatrical debut and/or (1) days before the DVD is released Digital copy automatically populates personal UltraViolet locker roughly 2 weeks prior to DVD release at no additional cost (1) Pricing under discussion, PVOD availability may vary by title.

Privileged and Confidential 4 Potential Roll-out of “PVOD with Ownership” Title Theatrical Release Potential PVOD Window Tentative DVD Street Date Pirates! Band of Misfits (Release date under discussion) AprilJune or JulyJuly or August MIB 3 May 25 th Late AugustDecember 11 th I Hate You DadJune 15 th Mid AugustOctober 9 th The Amazing Spider-ManJuly 3 rd Early OctoberDecember 4 th Total RecallAugust 3 rd Early NovemberDecember 18 th Note: All availability dates subject to change. “PVOD with ownership” only on SEN “PVOD with ownership” through SEN and others

Privileged and Confidential “PVOD with UltraViolet Ownership” Integration Requirements 5 By Summer Launch PVOD Enhanced Security: –Forensic watermark requirement lifted on first 4 titles to accelerate time-to-market –Turn off analog outputs; already enabled on PS3 and connected Blu-ray players UltraViolet Roles / Compliance: “SEN Lite Integration” –SEN generates to PVOD consumers with redemption code and link to SPE site –SPE as a “UV Retailer” handles UV account creation via PC, code redemption, and adds titles to UV locker –SEN initially only as a “UV LASP”: enable access to UV locker via service link; enables streaming of all titles in locker from all studios By October PVOD Security –Forensic water-marking enabled UltraViolet Roles / Compliance: “SEN Full Integration” –SEN as a UV Retailer / DSP, LASP and Client Implementer –SEN sells UV EST, create UV accounts and adds rights to UV locker –Sony enables playback of UV CFF on PS3 –Can also enable DVD-to-Locker conversions via PS3 / service

Privileged and Confidential 6 Crackle Plus

Privileged and Confidential 7 Free to consumer originals and exclusives with video experiences optimized for the Sony networked device audience –Ad-supported / free-to-consumer to attract largest audience –Develop slate of original content: “TV quality” series –License exclusive film avails (i.e., recent and library titles) –Highly curated experience run by experts who program target audiences worldwide –Initial U.S.-only launch with later international expansion Integrated with and driving up-sell to SEN’s paid services : Summary of Concepts

Privileged and Confidential 8 Invest in Content Exclusive to SEN (i.e., “Only on Crackle Plus, Only on Sony”) Original Shows 2-3 TV caliber series annually (i.e., approximately 26 episodes in FYE13 and approximately 39 episodes in FYE14 / steady state) Shows released weekly for regular programming Differentiated and premium (i.e., Pan Am / Breaking Bad level quality) to attract and engage consumers on a regular basis Curated Films 15 additional 2-3 yr old, exclusive driver titles in the network window like District 9, Salt, Battle L.A. refreshed monthly Approximately 100 incremental library titles (i.e., incl. SPE and 3 rd party titles) relative to current Crackle service (i.e., 300 total) Inside Looks, Music, and Events Behind the scenes, movie and pilot premieres, new game releases, and coverage of most relevant pop culture gatherings (e.g., Comic-Con, E3, SxSW) Live concerts, music festivals, unplugged sessions with artists, “secret” shows Include Crackle’s Existing Base of Content to Offer Scale : Content on SEN Films Approximately 200 library titles (i.e., predominantly SPE titles) with 5 additional 2-3 year old driver titles in the network window like Step Brothers, Talledega Nights, Pineapple Express refreshed monthly Television and Originals Approximately 1,800 full-length and short-form television episodes including Seinfeld and Married With Children Over 40 original series featuring notable talent including Neil Patrick Harris, John Hamm and Christina Applegate

Privileged and Confidential 9 MilestoneMonth Budgets submitted that reflect funding of all contemplated initiativesFeb / March Launch in-depth research related to original content creation[February] Original content greenlitMay Crackle Plus Service and show-specific marketing campaigns begin[August] Crackle Plus service launchedOctober 1 st original content aired on Crackle Plus serviceNovember : Timing

Privileged and Confidential Status Technical teams have met Agreed integration is feasible for October launch General agreement that Crackle Plus free-to-consumer content needs to be: –Searchable within the Crackle Plus experience and the PlayStation store –Include dynamically inserted ads “Must haves” for launch include: Prominent “what’s new” placement for service, originals, and free movies Dedicated CRM that facilitates ongoing pushes to engage and update customers with content Open Issues Determining best placement of the Crackle Plus app / experience (e.g., either free-standing app with deep links to store or all Crackle Plus content inside the store) Next Steps Wire framing potential alternatives Proposed solution to be completed by next update meeting 10 : Integration

Privileged and Confidential Crackle Plus Budget Impact 11 FYE13 is a partial year due to fall launch timing and includes investment, revenue benefits and cost-savings related to the shift of SNEI resources to this initiative –Estimated incremental investment does not quantify benefit to hardware sales –Includes impact to SPE and SNEI, before any corporate marketing ($MM)FYE13 Gross Investment Content($49) Headcount/Tech(7) Sub-total($56) Uplift and Cost Savings EBIT Uplift on Services[$12] SPE Incremental Revenue3 Sub-total$15 Net FYE13 Investment / EBIT Impact($41) (1)$49MM and $7MM represent FYE13 partial year impact for content and headcount/tech costs, respectively. The following full year costs would be $88MM and $13MM, respectively. (2)Based on approximately $300MM of domestic SEN revenues, 20% uplift, and 20% contribution margin. Note that FYE14 revenue impact likely to be greater but not yet estimated in detail. (3)$3MM represents FYE13 partial year impact for international and advertising revenues. The following full year revenue would be $19MM. (3) (1) (2) [SNEI INPUT ON THIS PAGE IS REQUESTED]

Privileged and Confidential Crackle Plus Budget Impact 12 Economics would be incorporated in SPE and SNEI FYE12 budget submissions; specifics being resolved but preliminary proposal is: SNEI Pays SPE a flat fee equal to estimated content costs less estimated ancillary revenues (e.g., international, video etc.) and also bears bandwidth, data center and cloud costs Retains uplift in service revenues SPE Responsible for its own investment in headcount and infrastructure Retains ad revenue Bears actual content cost and execution risk on ancillary revenue opportunities –SNEI content license fee intended to offset content costs, but SPE bears risk and upside associated with content costs and international revenue

Privileged and Confidential Marketing Considerations and Benchmarks 13 Objectives Successful launch of compelling free-to-consumer content that drives trial among existing device owners Create recurring incentive for audience to consume Sony content on Sony devices Launch Spend Comparables Implications Show Off-Air Spend ($MM) Avg HBO 1-hr~$15 Boardwalk Empire~$20 Avg 1-hr Cable Drama~$10 Avg ½ hr Bcast Comedy~$7 Price of awareness for comparable launches, excluding use of on-air inventory and spend on 3 rd party networks is a material expense Need to discuss potential use of Corporate Strategic Marketing funds to support initiative (1) (1) Note: SPE Corp Dev estimates.

Privileged and Confidential 14 Marketing and Promotional Content

Privileged and Confidential Marketing and Promotions Marketing and promotional opportunities will serve to: –Drive awareness of the SEN brand and service –Drive traffic to the SEN site –Enrich the SEN experience with unique content SPE will provide a range of assets, including: –Exclusive trailer launches –Home entertainment “extra” content –Marketing avails on DVDs and BDs including package inserts and sizzle reels –Advertisement inventory on SPE channels in key SEN markets –Brand placement on film one sheets and other field promotion items Early success with the December trailer launch for Men in Black 3 across SEN and other platforms –[Launched in 34 countries in 20 different languages] –[20 million online trailer views to date (13 million in the first week)] –Became a global trending topic on Twitter within the first half hour of our launch 15 In process

Privileged and Confidential Marketing and Promotions 16 Initiative First Avail First Title / Property Other Potential Titles / Frequency DRAFT in process Exclusive Content (Trailer launches) DVD & BD Marketing Avails (Inserts, sizzle reels) TV Ad Avails (Channels and channel websites) Theatrical Field Promotions (One sheets, postcards) Full Sony United launch: Dec 2011 Other launches: Jan 2012 September 2012 Full Sony-United launches: 2-4 per year Additional launches with strategic titles Other potential titles include Planet B- Boy and additional Screen Gems titles 1 Target frequency: 1-2 titles per quarter 1. Subject to contractual obligations with other studios, production companies, etc. March/April 2012 Includes TV and digital platforms from: Territories include: U.S., U.K., Spain, Italy, Germany, Australia, Canada and Japan (full) IN PROCESS

Privileged and Confidential 17 Update on SPE Licensing Activity

Privileged and Confidential Update on SPE Licensing Activity 18 To come from SPT Bus Dev

Privileged and Confidential 19 Incorporate in budgets Completion of preliminary technical feasibility analysis on each project Continue execution, including investment in content and technical build-out Schedule next Executive update meeting for March Next Steps