CONFIDENTIAL SPE Service Opportunities Draft 2

page 1 Traditional Studio Content and Distribution Business are Fragmenting Studio User Generated Games On-demand Linear Broadcast Cable Satellite IP Wireless Television PC Portable Media Player Game Console Mobile Phone Established Emerging Content ProductionDelivery InfrastructureContent ServicesPlayback Devices

page 2 Hypothesis for High Level Focus Areas Studio User Generated Games On-demand Linear Broadcast Cable Satellite IP Wireless Television PC Portable Media Player Game Console Mobile Phone Established Emerging Content ProductionDelivery InfrastructureContent ServicesPlayback Devices SPE Focus on Content and Adjacent Service Businesses Third Party Partnerships Sony Hardware

page 3 Hypothesis for High Level Focus Areas Studio User Generated Games Content ProductionContent Services 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Amateur: 2006: $X 2009: $X CAGR: X% “Prosumer” 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% Nascent market with early signs of potential –Current / Yahoo! as early entrants –No dominant player in place Large, established market with limited growth potential No established market, questionable potential Early stage with significant growth –Investment focus for studios –Early validation for advertising opportunities Early stage with significant growth –Infrastructure now in place –User adoption accelerating Continued growth opportunities –Mobile, PC, and console games Considerations

page 4 Areas of Analysis ContentAdvertisingService Evaluate new forms of digital content to be developed by SPE –Short-form –Mobile Recommend organizational approach to content digital production –Business Unit responsibilities –Budgeting and green light process Identify opportunities to re- purpose user generated (prosumer) content –Process to identify best content –Economics of user revenue sharing TBDAnalyze and recommend ad sales organizational structure –Dedicated new media ad sales team –International team Assess needs for new infrastructure for digital ad sales –Ad insertion –Ad server –Geo-filtering Identify new forms of ads tailored to emerging services –Interactive advertisements –User generated ads