SPE INTERNAL Channel Acquisition Opportunities September 2008

1 Executive Summary As we begin informal discussions, we need to confirm SPE and SCA’s appetite for a significant investment (e.g., up to $200MM-$400MM for 50% of a mid-size channel) These trends provide us with several options for expanding our domestic channel presence –Lower investment “HD build” strategy: Use library to secure carriage and minimize investment; new channel on-par with MGM HD –Lower investment “HD partner” strategy: Invest in a smaller HD player (e.g., HD Net, Mojo); use the Sony brand and library to reinvigorate and grow the channel –Significant investment in a mid-size channel: Invest in a sizable channel (e.g., G4); better define the channel’s voice and grow the audience by leveraging all Sony assets Recent market trends have created new opportunities for SPT to invest in US channel assets –Demand for HD content has opened the window for new channels –Smaller start-up channels are seeking investment or acquisition at reduced valuations –Established mid-size channels are seeking strategic investment partners to support growth Our current hypothesis is that investing in a partnership would lead to greater returns –Library-only plays like MGM are not getting immediate traction –Partnership/investment will significantly increase speed-to-market

2 Demand for HD Content has Opened the Window for New Channels Available SlotsDrivers Both DBS providers are increasing capacity by launching new satellites in 2008 DirecTV > 150 national Dish > 100 national DirecTV is launch partner of choice for HD channels IPTV based on fiber to the home allows hundreds of HD channels Verizon plans over 150 HD channels by 2008 and has capacity for up 500 AT&T capacity expected to reach 250+ HD channels Conversion of analog channels to digital/HD will create new channel capacity for MSOs Switched Digital Video (SDV) technology, which will be deployed in select markets, theoretically allows infinite number of HD channels Number of available slots will vary by market and MSO

3 80% Median Age 70 Median Age 5 Median Age 40 20%50%Percentage Female-Oriented Analysis of the Network Demographic Landscape Suggests a Younger, Male-Skewing Network is an Attractive Opportunity and Fit with Sony’s Strengths Target Opportunity: Younger; Male Skewing

4 Sony’s Capabilities and Assets Would Enable us to Create Significant Value for a Network with a Male-Slanted Programming Voice Branding Programming Distribution/ Syndication Re-brand channel to leverage the strength and relevance of the Sony brand with the targeted male demographic Proposed Approach Leverage the development, production, and programming expertise of the Sony Pictures Television to create distinctive original programming that resonates with the male audience Syndicate channel content on key Sony assets that share the target male demographic (e.g., PSN, Crackle) Given its brand, programming and distribution strengths, Sony is uniquely positioned to invest in and re-program a network to target the male demographic

5 We Have Identified Four Potential Targets 2007 Subscribers Seller’s Likely Valuation Target Demographic 2007 Cash Flow* Male 18-34Male Affluent, early adopters Male/Female 18-49“Males and Movie Lovers” 66.6MM9.0MM83.3MM8.1MM $58MM$18MM$46.5MM$1MM $ MM<$100MM$ MM “Partner Small” Investment Advantages/ Challenges Excellent fit with Sony target demo and brand Asking price may be prohibitively expensive Provides access to targeted male demo; Ad sales relationship already in place High subscriber count and strong channel placement on with most affiliates Carriage agreements may limit our ability to rebrand/reprogram channel After initial conversations with Marc Cuban, HDNet is currently a lower priority Network is being shut down and thus carriage opportunity may not exist *Cash Flow as reported by SNL/Kagan; Defined as Net Operating Revenue less SG&A and Programming Expenses. These numbers seem high and are subject to further review <$100MM “Partner Large”

6 NEXT STEPS Continue discussions with target channels, including value expectations and critical diligence areas (financial, operational/carriage agreements) –G4: Initial discussions with Comcast complete; diligence commencing –TV Guide: Approaching in conjunction with Constellation Ventures; diligence commencing –Mojo HD: Need to initiate discussion with Comcast immediately to confirm if investment is feasible prior to December ’08 shutdown –HDNet: Completed initial conversations with Mark Cuban; currently lower priority for diligence Confirm SCA support for an approximately $200MM-$400MM channel investment