Techlogger: a practical application… Sony Pictures Technologies Jason Brahms 08/02/11

Techlogger a practical application: Background: The PMC is currently expanding their operation to include new services as well as continuing to offer SPE traditional post services. The following list represents some of the services currently provided to SPE: –J2K Master Encoding (New Release Feature) –Foreign Title Reel Creation –Foreign language master creation (New Release and Library) –Audio conform services (Traditional / DBB related) There are hidden opportunities / benefits within these new and established services that have yet to be realized. These are benefits that SPE, PMC and DBB will all enjoy. The “Techlogger” opportunity: Provide the PMC with a toolset that will enhance their traditional workflows while at the same time support the creation of relevant metadata required for advanced automation within the DBB. This deck will outline the benefits of using the Frame Matching / Light Editing” features in Techlogger to complement the current FLM tape workflow.

Techlogger a practical application Current - “FLM / Textless Editing” workflow: WPF currently does this work with the PMC and 3 rd party vendors. If WPF were to only use the PMC for this work the PMC would need to scale to meet the following demand: FY11 Volumes: 5200 Units Market Rate:$1,135,000 PMC Cost:$775,000 (labor – 10,000 man hrs) PMC Profit: $360,000 (annual) To get there using the current workflow / technology the PMC would need to invest in: Equipment / Build:$ 1,200,000 (Avid units / new edit rooms / etc) Staff:Hire 6 dedicated heads Total:~$1,200,000 Note: this is for “Editing” only (does not include layback or encoding service opportunities)

Techlogger a practical application Proposed - “FLM / Textless Editing” workflow: Using Techlogger will increase efficiency and allow the PMC to complete the 5200 units faster with less resource (i.e. does not require expensive gear or highly trained resources) FY11 Volumes: 5200 Units Market Rate:$1,135,000 PMC Cost:$116,000 (labor – 1,500 man hrs) PMC Profit: $1,019,000 (annual) To get there using Techlogger the PMC would need to invest in: Dev Costs:$ 300,000 Equipment:$ 100,000 Total:$400,000 (one time costs)

Techlogger a practical application Comparative P&L - Current vs. Techlogger CURRENT - Editing ServiceFY13FY14FY15Total 3Yrs Revenue $ 1,135, $ 3,405, Cost of sales (Labor) $ 775, $ 2,325, Depreciation $ 400, $ 1,200, Profit $ (40,000.00) $ (120,000.00) PROPOSED - Techlogger Editing ServiceFY13FY14FY15Total 3Yrs Revenue $ 1,135, $ 3,405, Cost of sales $ 116, $ 348, Depreciation $ 133, $ 400, Profit $ 885, $ 2,657, DELTA (NET BENEFIT) $ 925, $ 2,777,000.00

Techlogger a practical application Additional opportunities / benefits: -Additional Encoding / Transcoding service opportunities for PMC until eliminated by Techlogger/DBB assembly features -File QC services (i.e. Gameshow project) -Audio conform services (Traditional / DBB related) – The PMC could enhance their existing DBB conform workflows by utilizing audio conform functionality in Techlogger. -Tape layback service opportunities for PMC until decreased by Techlogger/DBB assembly features -Increased throughput means higher volumes = higher revenues -Lower WPF / OPC costs (3 rd party spend) while maintaining PMC margins -Line of business benefits from a decreased time to market / more product in the marketplace at a decrease cost -Allows SPE to be proactive in manufacturing with less risk