Hancock on BIVL June 12, 2008 DRAFT – PRIVILEGED AND CONFIDENTIAL

1 Executive Summary SPE has been asked to participate in an early window VOD test, making Hancock available exclusively on Sony Bravia TVs through the BIVL service This test provides SPE with an opportunity to achieve two goals –Support a Sony United initiative to generate market awareness for Bravia/BIVL –Establish market terms that support SPT’s efforts to launch an early window VOD offering with cable, MSO, and DBS partners Prior to announcement, we will address the following issues –SPE to discuss the offering with Starz, Talent, and MSO/DBS partners –SPE agreement on list price ($19.99 or $29.99) and portion paid by viewers (e.g., $3.99 or $7.99) after any coupons / discounts –Final validation of hosting and payment service partners by SEL Once these issues are addressed, we recommend moving forward with the test based on the following terms –Viewing Period: 24 hour rental (streaming) –Availability: 4 weeks prior to DVD/Blu-ray street date for a two week period –Promote the availability of Hancock and other Blu-ray titles and include a trailer for a SPE theatrical release at start of stream

2 Recommended Offering and Rationale ParameterRecommendation Rationale Deemed Price$ $29.99  At premium to day-and-date; within “Home Theater” pricing range Cash Charge$ $7.99  After any discounts or coupons, users must pay at least this amount with a cash equivalent for the offering to be considered PPV/VOD offering  Cash price would be in-line with current PPV offerings or proposed prices for new, day-and-date offerings Viewing Period24 Hours  Viewing period longer than 24 hours would conflict with Starz deal Availability 4 weeks, prior to DVD/ Blu-ray window  Price and HD format are the primary drivers of consumer interest  Timing is less of a driver and 4 weeks early appears to be sufficient to generate interest and drive demand Duration2 Weeks  Allows for blackout period before DVD/Blu-ray release window Split Greater of 85% of the deemed or actual price  Increased percent split over current offerings is justified by increased revenue retained by distributor Timing Distributor to announce availability no earlier than +60 days from theatrical  Market practice to not announce VOD before announcing DVD street date

3 Pricing Magid Early Window Analysis Optimal day-and-date pricing is $7.99 to $8.49 per Oliver Wyman study Early window HD should clearly be at a premium to day & date Between $14.99 and $34.99, buy rates for HD early window are comparable to standard VOD at $3.99 (1-4% depending on title/genre) At this stage, HD early window test pricing should at least be in the mid-range of early window analysis (e.g., it’s too early to go low) We are evaluating $19.99 or $29.99 for the Hancock early window test Oliver Wyman Day-and-Date Analysis (1) Offer Price Incremental Revenue ($MM) Buy Rates Offer Price (1) Relative to 2006 actuals, HD day-and-date rental at $8.49 yields net increase of $375MM (10%) in SPE U.S. Studio Revenue Optimal at $8.49

4 Wholesale PricingFormatModelSplit $ to Service Provider $3.99Standard DefStandard VOD60/40$1.60 $4.99High DefStandard VOD70/30$1.50 $4.99Standard DefDay-and-Date VOD70/30$1.50 $ $8.49High DefDay-and-Date VOD70/30$ $2.55 $ $29.99High Def Bravia / BIVL Early Window (1 month early) 85/15$ $4.50 = Proposed pricing and split, no deals currently in place SEL would pay SPE on the same terms as MSOs and DBS partners, satisfying obligation to participants Greater of 85% of the deemed or actual retail price is generally consistent with the $ value retained by service providers in the HD day-and-date window

5 Potential User Experience Enter Payment Service credentials to pay $3.99 or $7.99 Coupon covers balance up to $19.99 or $29.99

6 Hancock Windows JulAugSeptOctNovDecJanFebMarAprMayJun Standard Hancock Windows Theatrical Release 7/2 Hotel 10/1  4/11 Home Ent. 11/11 PPV / VOD (30-45 days post DVD) 12/11 or 12/26  4/11 Starz (through 8/10/2010) 5/11  FX (starts 10/11/2010 – 10/10/2015) Early Hancock VOD Window VOD on BIVL (2 wks) 10/14 10/28 Starz Window 5/11  Proposed Early VOD to run for 2-week period between Oct 14-28, 2008 – VOD must be dark for the two weeks immediately preceding HE release (11/11/08) Early VOD window does not affect Starz window as long as it starts later than 9/11/08 – Starz is the earlier of 6 months from HE release date, 8 months from VOD, or 12 months from theatrical release

7 Messaging Process SPE to preview the terms of the initiative with Starz, Talent, and MSO/DBS partners in advance of the announcement; conversations may alter recommendations SPE to review the June 26 announcement Promotion of the offering would commence after the normal black-out period extending 60 days from the theatrical release Message Elements Hancock will be the first blockbuster movie streamed directly to TVs and available in an early window Address the quality and timing of this offer relative to the ultimate HD offering (Blu-ray) Blu-ray and theatrical trailer to run at the start of the stream Press release should clearly identify Hancock / BIVL as a test