1 SET SPAIN PARTNERSHIP OPPORTUNITY OCTOBER 2009

2 Executive Summary DTT represents the largest channel distribution opportunity in Spain – Already at 96% coverage and 69% penetration – Compares to Pay TV at roughly 27% penetration Important to secure and maintain a foothold in this market today, but requires a significant investment – In the near-term:  Growth in ad revenues has been slower for smaller channels  Fixed fees for distribution (in excess of €4.5MM per year) is difficult to offset – In the long-term:  Ad revenues are expected to grow rapidly with the April ‘10 analogue changeover and full audience migration  Players that come late to the game will find a limited number of slots being bid-up. UK provides a relevant example of DTT slot prices increasing three-fold Partnering with Sony offers significant strategic advantages – Defray cost in the early, ramp-up phase – Combine programming resources to drive channel rank – Leverage Sony’s local expertise and relationships with advertisers

3 DTT in Spain Today 96% of population has DTT coverage – the highest coverage of principal European countries DTT penetration reaches 69% of Spanish households, with rapid growth driven by upcoming analogue changeover More than 21 million DTT devices sold 73.7% of buildings that share a community antenna are ready for DTT DTT viewing nationwide overtook analogue with DTT screen share at 43%, while analogue TV’s share dropped to 39% Source: implulsatdt Monthly Report Extract (September 2009), Sofres, Gfk, Abertis Telecom

4 DTT Penetration Growth DTT penetration in households is growing, with 96% coverage and 69% penetration in September ‘09 Source: implulsatdt Monthly Report Extract (September 2009), Sofres, Gfk, Abertis Telecom

5 DTT Equipment Growth Sales of DTT equipment are growing with fewer than 200 days remaining before April 3, 2010, which marks Spain’s transition to DTT Source: implulsatdt Monthly Report Extract (September 2009), Sofres, Gfk, Abertis Telecom Non-Integrated Integrated Total Monthly Units Sold

6 DTT Share (Analogue vs. DTT Share) DTT viewing nationwide overtook that of analogue in July ‘09 Source: implulsatdt Monthly Report Extract (September 2009), Sofres, Gfk, Abertis Telecom

7 Total Household Penetration DTT penetration eclipses Pay TV penetration # of Spanish Households % of Spanish Households

8 DTT Ad Revenue Opportunity Opportunity to capitalize on a growing ad market April 2010 analogue to digital changeover will help eliminate traditional impediments to growth in DTT advertising revenues – Entrenched channel oligopoly will lose incentive (and ability) to concentrate audience and ad revenue in analogue market – Media buyers will be offered a more robust bouquet of DTT channels Significant growth will be driven by: – Analogue TV viewers and channels will fully migrate to DTT – Ad revenues will migrate along with TV viewers and channels – Channels will be competing for TV viewers on DTT with compelling content offerings – Media buyers and advertisers will focus on channels that have a growing audience base

9 Spain TV Advertising Forecast Spain TV Ad Spend Thematic DTT Ad Spend CAGR 55%* Source: Infoadex, Zenith Media Vigia and SET Spain estimates. * CAGR based on In a large but likely flat overall TV advertising market, DTT represents the greatest opportunity for growth

10 Sony – A Global Leader in Networks 117 feeds, 140 countries, 400MM households, 22 languages Korea LATIN AMERICA Central Europe North America Brazil Spain Spain / Portugal Russia Singapore AFRICA Southeast Asia Japan ASIA Australia U.K. India Germany Italy Portugal

11 Sony Spain Overview Sony’s Spanish networks leverage Sony’s global resources – Sony’s networks reach 400MM households in 140 countries and are broadcast in 22 languages – Sony combines the strength of our content with operational excellence to make our channel brands leaders in local markets Sony is a leader in the Spanish market – 10+ year track record of success with AXN Spain – AXN is the #1 cable channel in Spain – Gives Sony brands high awareness with audiences and strong relationships with advertisers SET is an established general entertainment brand in Spain – Launched in Spain in September 2006 through a partnership with VEO TV – Digital free-to-air channel with revenue driven primarily by advertising – Offers high quality standards through digital technology and unique programming content

12 SET Spain Programming Overview General entertainment channel with programming in multiple genres (Comedies, Dramas, Reality, Film): SeaquestBrazil’s Next Top Model Da Vinci’s InquestMarried with Children Becker EdProvidenceV.I.P.Will & GraceAmazing Race

13 SET Spain Ratings Source: Sofres. Temáticos Concesión TDT. Ind 4+ SET Spain ranks in the top 10

14 Partnership Opportunity Access to one of a few available free DTT slots – Majority of current slots are captive to major broadcasters – Only limited additional free slots available for sub-license after digital changeover  8 of 12 new slots will likely go to major broadcasters used for their own stations (or if sub-licensed, likely at a much higher price than Veo is charging)  Portion of 4 slots for Veo and Net we expect will be used for themselves  1-2 slots may be available for sub-license for free channels and will require bidding against major U.S. media conglomerates Less expensive method of entry – Near-term opportunity to split expenses (including €4.5MM fixed fees per year to Veo, programming and other expenses) – Early entry significantly less expensive than when slots are bid up Ability to leverage Sony brand, market expertise, and content – SET established as a top 10 channel – Strong relationship with advertisers – Deep library of TV and film content that can be utilized for the channel Partnering with Sony provides…