CONFIDENTIAL Grouper Reporting and Cross-Sony Coordination July 2006

page 2 Grouper Reporting Alternatives Options for Reporting Benefits Concerns SPHE (B. Feingold)End to end solution to market: Single organization manages distribution of TV and Film content and online services Minimal separation of service from licensing organization may create a “captive” service Service operation and advertising capabilities not resident in SPHE Distraction from broad licensing mission Perceived conflict by SPHE customers SPT (S. Mosko)Licensor/licensee relationship to SPHE Leverages ad sales and programming expertise Reduced complexity of managing avails Requires close coordination with SPHE to avoid third-party licensing conflicts SPD (Y. Landau)Leverages original content development, technology and distribution experience from prior online services Grouper and potentially all services seen as a standalone businesses unit Reduced access to SPHE or SPT content or market leverage Corporate (M. Lynton, or direct report) Grouper and potentially all services seen as a standalone businesses unit Licensor/licensee relationship to SPHE Visibility for integration with multiple business units, especially ex-SPE Reduced distraction to divisions Dedication of management time (if Michael) Reduced access to SPHE or SPT content or market leverage Management turmoil and divisional acceptance Reduced support by divisions

page 3 Ensuring a Managed Grouper Integration within Sony Defined Cross- Sony Liaison Designated SPE senior manager (potentially reporting relationship) to act as liaison between Grouper and other Sony divisions –Coordinate implementation of cross-Sony opportunities –Collaborate with SPE to prioritize new opportunities –Coordinate with T. Schaaff directly to identify software linkages SPE Integration within Key Divisions Monthly or as needed meetings with defined business unit team members (VP level) to identify and implement specific opportunities –Theatrical Marketing: Promote new releases –SPHE: Distribute film and TV content –SPT: Program new online / on-demand channels; promote new shows –SPD: Develop and distribute original content Senior SPE management meets quarterly to review progress and resolve issues –SPHE (B. Feingold, S. Carey), SPD (Y. Landau), SPT (S. Mosko), Corporate (Lynton) Defined Grouper Board To Facilitate Coordination Board meets with Grouper management quarterly to review progress and resolve issues –SPE (M. Lynton, B. Feingold or S. Carey, S. Mosko), SCA (T. Schaaff), Sony Hardware / Sony Connect (Y. Nakagawa or S. Banfield), SEL (S. Glasgow) Board reviews and prioritizes opportunities across Sony –Devices: Bundle Grouper with video cameras for editing and sharing –International Services: Support PSBG eyeVi initiative –Connect: Drive traffic to Connect for purchased music