1DMG Confidential

Problem #1  Scalability Ingest and export processes not able to handle burst traffic loads Exponential growth in storage usage and related costs Peak sizing can result in excess capacity 2DMG Confidential

Problem #2  Development and maintenance Huge demand for DMG services plus focus on short-term benefits led to shortcuts in code development More time is now spent on maintenance and support activities than developing new features Current technology stack and code base does not support agile development Aging code base and technology stack is not adequate to meet current and future demands 3DMG Confidential

DMG’s Technical Debt  New features take longer to develop  Testing takes longer  Software deployments take longer  System has become less stable  Extremely difficult to troubleshoot issues  Code base is “brittle”  New developers take longer to ramp up  Not an attractive job for developers 4DMG Confidential

Scope of Complexity 5DMG Confidential

Scalability DMG Confidential6

Plan of Record with MCS  DMG looking to leverage MCS to obtain asset management back-end services and storage Migrate cineSHARE users/assets in phases Then migrate EAGL to MCS-DMR in one shot  DMG focuses on maintaining customer-facing applications  Expected benefits Better scalability and performance Increased agility to create innovative solutions Lower long-term storage costs Cost savings from reduced headcounts (back-end services and infrastructure) 7DMG Confidential

Assumptions  Necessary DMR services will be available in MCS solution  “MCS-DMR” services are functionally and architecturally adequate  MCS can meet new SPE feature requests in a timely manner  MCS charges SPE at cost 8DMG Confidential

Impacts of Assumptions  Focused on short-term fixes to DMR rather than implementing complete fixes that would be “thrown away” once DMR was re-platformed on to MCS Further contributes to technical debt  Deferred work on enhancements (e.g. review and approval) if those features were available or planned in MCS 9DMG Confidential

Concerns / Risks  “MCS-DMR” is built on the same legacy code base as EAGL  Less than 50% of DMR services are enabled in current MCS solution  MCS estimates for closing the DMR and cineSHARE feature gaps are troublesome from a timing perspective  Migration costs will increase due to complexity of a phased approach  The “MCS-DMR” integration is a moving target - both sides are drifting since the branch of code  Will MCS and SPE priorities stay aligned? 10DMG Confidential

Alternative Plan with MCS  Migrate client applications to MCS from both EAGL and cineSHARE as and when required features are available Attractive because avoids a big switch over and can be started soon Complex because of dependencies between features and because of sharing of assets Assumes Ci UI will work for migrated users  Use MCS for relevant new workflows, e.g. review and approval 11DMG Confidential

Development and Maintenance DMG Confidential12

New Platform  Needed to continue DMGs mission efficiently  Build a new digital media platform using modern web technologies, protocols and design practices  Leverage open source/best of breed technologies Ruby on Rails, ElasticSearch, Node.js, MongoDB  Benefits Timely response to customer needs Faster development Less maintenance Continuous Delivery ○ Continuous Integration/Automated Testing ○ Continuous Deployment 13DMG Confidential

Options 1. Replace entire stack (DMR, Eagl, etc) Complete split from MCS, development burden falls on DMG 2. Replace application layer, keep DMR (either DMG or MCS) Constrained by existing DMR interfaces, likely need a services layer to isolate them (imperfect solution) MCS carries on with plan of record 3. Explore with MCS a common path to a new platform Does MCS see same issues with code base? E.g. DMG moves application layer to new platform, MCS moves DMR to new platform. DMG Confidential14

15DMG Confidential

New Platform: Architectural Map  Insert diagram 16DMG Confidential

Benefits of New Technology Stack  Faster development – less lines of code to achieve functionality  Easier to maintain – Ruby and JSON  Easier to ramp up new developers  Better support for open source tools  Better integration for external apps  Better design for future demands  Support for continuous integration and deployment  Enhances collaboration and innovation 17DMG Confidential