1 SONY PICTURES ENTERTAINMENT THEATRICAL RESEARCH Capabilities & Methodologies In the United States and Around the World Presented On January 31st, 2002 By: Bruce B. Friend - SVP, Worldwide Research

2 PRESENTATION OUTLINE  Research Philosophy at SPE  Research Process at SPE  Current Types of Research/Methods Conducted/Utilized by SPE  In the U.S.  In Key International Territories  Further/Future Development of International Research Capabilities  The Germany Test  The Next Phases of Development

3 SPE RESEARCH PHILOSOPHY The SPE Research Philosophy is a simple one: The SPE Research Philosophy is a simple one:  Our goal is to innovate, develop and produce the best, most accurate consumer-based research/information and interpretation possible, in a timely and actionable manner!  And as such, research should be seen and used as a tool (in conjunction with other information) to direct, inform and enhance your decision-making processes.  However, it should not be seen as being the only tool or reason upon which to make or base decisions.  In other words …I/we are not here to tell you what to do, but rather to better help you do what you already do!

4 SPE RESEARCH PROCESS The SPE Worldwide Research Group works with and supports practically all operating divisions of the company.  Development/Production  Distribution  Creative Advertising  Media Planning  On-line Marketing  Publicity & Promotions  Consumer Products  Licensing & Merchandising  Home Video/Home Entertainment  And last, but certainly not least, International This provides us with an holistic perspective on the industry and our product, which in turn enhances our overall research capabilities and insights.

5 TYPES OF RESEARCH/ METHODS  Recruited Screenings (for Production & Marketing)  Market Positioning Studies (Ad Hoc)  Phone/or In-person Intercept (“quantitative”)  Focus Groups (“qualitative”)  Trailer Testing  Commercial Testing  Print  TV  Pre-release Tracking (& Tracking “Pulse Checks”)  Post-release Exit Polls

6 Markets Conducted In For Sony:  United States (for all movies, with almost no exceptions)  United Kingdom (local productions & limited, ad hoc)  Germany (local productions & limited, ad hoc)  And other International Territories (limited, ad hoc) NRG can conduct Screening in almost any country, but “norms” are not necessarily available for all countries. RECRUITED SCREENINGS

7 Research Process: (with the National Research Group - A.K.A., NRG)  A movie is shown to a recruited audience that meets the specifications of the target demo(s) for the movie.  The audience scores the movie overall on a variety of measures including:  “overall rating,” (excellent, very good, good, fair, poor)  “expectation ratings,” (better, or not as good), and  “recommendation” (definite) word-of-mouth scores.  The audience also evaluates elements of the film such as the beginning, ending, story, cast/ acting, music, pacing, etc., and indicates most and least liked scenes. RECRUITED SCREENINGS

8 Research Outcome/Results: Production  Based on performance of the movie in comparison to established norms, the various elements are evaluated,  And, if the performance is below norms, or company expectations, revisions are often made to the movie. Research Outcome/Results: Marketing  These results help “fine-tune” who the target audience is for this movie, and what they responded to best:  Conceptually (providing insights for positioning)  And in terms of specific scenes that were appealing (which can then be used in Trailer, Print and TV) RECRUITED SCREENINGS

9 MARKET POSITIONING STUDIES Markets Conducted In For Sony:  “Quantitative” Market Positioning Studies are only conducted in the U.S., and only for select, usually bigger budget, films such as:  Ali  MIB2  Spider-man  “Qualitative” or Focus Group Positioning Studies are also only conducted in the U.S., but are usually done for most “wide release” movies.

10 MARKET POSITIONING STUDIES Quantitative* Study: (By telephone or in-person “intercept”)  In a “quantitative*” market positioning study, movie-goers are questioned on various movie content/ story elements (including cast, director, concept, genres, F/X, title, etc.)  Results are then analyzed to determine the positioning combination, and specific elements/attributes that yield the highest interest in the movie in the expected competitive environment (other movies it’s against).  This research is conducted very early in the marketing cycle in order to guide marketing strategy and to provide direction for the development of the marketing materials. * Based on a nationally representative sample of 1,000+ movie-goers

11 MARKET POSITIONING STUDIES Qualitative Study: (Focus Groups: in-person group discussions)  In a “qualitative” market positioning study, “focus group” discussions are conducted to show/ review marketing materials in the early, developmental stages.  This research helps to identify various movie elements that appeal, or do not appeal to the target audience, and is ultimately used to fine tune audio/ visual marketing communications to the various target audiences.  Additionally, this research is used to determine whether the marketing message/ strategy is being clearly communicated to the audience, and to assess the specific strengths and/ or weaknesses in the materials.

12 TRAILER TESTING Markets Conducted In For Sony:  United States (for all movies, with almost no exceptions)  United Kingdom (limited, ad hoc & local productions)  Germany (local productions only to date, via internet testing) NRG can conduct Trailer Tests in almost any country, but “norms” are not necessarily available for all countries.

13 TRAILER TESTING  Trailer Testing is conducted via “in-person intercept methodology” (usually in shopping malls*) with a nationally representative sample of 300 movie-goers, to assess just how effective a trailer is at increasing the audience’s “interest” in seeing the movie.  For the U.S. market, the goal is to have a trailer that generates about 50-65% “definite interest” and about 80% “positive interest” in seeing the movie.  Trailer Testing is also used to pinpoint the scenes of the movie that have the strongest recall/ affinity among the target audience, for use in TV spot development. * Note: We have begun testing an “internet” methodology in Germany.

14 PRINT TESTING Markets Conducted In For Sony:  United States (for select movies only)  Germany (local productions only to date, via internet testing) NRG can conduct Print Tests in almost any country, but “norms” are not necessarily available for all countries.

15 PRINT TESTING  Print Testing is usually conducted, when we’re unable to achieve creative consensus on one approach/ look, or we need quantifiable justification for filmmakers.  Like Trailers, Print Tests are also tested among a nationally representative sample of about 300 movie- goers via in-person (usually in shopping malls), or via the on-line Internet Testing (more on this later).  The overall goal for a Print Test is to determine which of a number of executions best communicates/sells the concept of the movie and also generates the most “interest” in seeing the movie.

16 TV SPOT TESTING Markets Conducted In For Sony:  United States (for ALL movies, no exceptions!)  Germany (local productions only to date, via internet testing) NRG can conduct TV Spot Tests in almost any country, but “norms” are not necessarily available for all countries.

17 TV SPOT TESTING  TV Spot Testing typically starts after Trailer Testing.  TV spots (either 30” and 60” in length) are also tested among a nationally representative sample of about 300 movie-goers per spot.  The goal for TV test scores for the US market is about 50-60% “definite interest” and about 70-80% “positive interest”.  The overall goal of the testing is to obtain spots that generate high awareness and high interest so that it translates to high awareness and interest numbers as the movie appears on tracking.

18 Markets That NRG Conducts Syndicated Tracking In:  United States  United Kingdom  Germany  Australia  Japan Note: These are the only markets in which NRG conducts syndicated movie tracking. MOVIE TRACKING

19 MOVIE TRACKING  In the U.S., Movie Tracking is conducted 3 times/ week (Sunday, Wednesday, and Thursday), and once a week in International markets among a nationally representative sample of 400 movie-goers per day.  In the U.S., if a movie is targeted towards a family audience, or an African-American audience, “supplemental tracking” is conducted among the specific groups to determine awareness and interest among the targeted groups.  A movie appears on tracking 3 1/2 weeks prior to the scheduled release date, but only qualify if they are receiving a wide release (600+ theaters in the U.S.).

20 MOVIE TRACKING  Movie-goers are questioned on “unaided awareness,” “aided awareness,” “interest” in seeing a movie, and “first choice” among movies that are/or will (that weekend) be out in the marketplace).  U.S. “norms” for unaided awareness are 12%, total awareness 77%, definite interest 40% and first choice 12%. For International markets, these “norms’ vary significantly.  Awareness, interest and first choice numbers are analyzed by audience segment (e.g., males/females under 25, males/females 25 & over) to determine if the marketing message is reaching the targeted audience segment.

21 TRACKING “PULSE CHECKS”  “Pulse checks” (pre-tracking tack-ons) are conducted among the tracking sample before a scheduled movie appears on regular tracking. (This info is also proprietary)  Pulse checks are used to obtain early information regarding “awareness,” “interest” and “discrete choice” (against competitive films) and to:  evaluate effectiveness of trailer play and in-theater print,  or to fine-tune media plans,  or make determinations for appropriate release dates.  We typically do pulse checks now for all films now in the U.S, and some almost as early as a year prior to release (e.g. Spider-man)

22 TRACKING “PULSE CHECKS”

23 EXIT POLLS Markets Conducted In For Sony:  United States (for ALL movies, no exceptions!)  International Markets (local productions only to date) NRG can conduct TV Spot Tests in almost any country, but “norms” are not necessarily available for all countries.

24 EXIT POLLS  Exit polls are usually conducted the first weekend that a movie opens at 5-6 representative U.S. cities nationwide (Usually only one city for International).  Exit polls are conducted to determine the audience composition on opening weekend, and to evaluate the movie’s playability among key audience segments.  Additionally, exit polls aid in further targeting the marketing message for “post-open” media planning by evaluating the various channels of communication that worked best for each audience segment.

25  Proposed Further/Future Development of International Research Capabilities:  The Germany Test  Possible Next Phases of Development  UK  Australia  Asia - Key Territories  Spain/Spanish Speaking Territories INTERNATIONAL RESEARCH

26 INTERNATIONAL DEMONSTRATION “Test” Research Site In Germany “Test” Research Site In Germany (Translation: “That’s What I Think”.de) Background Web-site Home Page Recruiting & Registration Testing Sites

27  Das-meine-ich.de testing site was developed in September of  Working closely with the German Marketing Group to coordinate site development, language translation, panel recruitment, and questionnaire design.  To date we have tested the following for the upcoming German film, Was Tunn, Wenns Brennt?  Three Print “One-sheets  Two Trailers, and  One TV Spot  Next steps include: continuing to build panel of German movie-goer respondents, possible “tracking test” and work on Big Girls Don’t Cry. GERMANY INTERNET TEST

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31 GERMAN - Pop-up Website Recruiter

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34 GERMAN - Print Survey

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36 GERMAN - Trailer Survey

37 GERMAN - TV Commercial Survey

38 Possible Next Phases/ Roll-Out Into Other Territories: Possible Next Phases/ Roll-Out Into Other Territories: –Finalize “English-language” Version by 1Q 2002 For use in non-U.S. English language territories (UK, Australia, Asia, etc.)For use in non-U.S. English language territories (UK, Australia, Asia, etc.) Set up UK testing site for “Swept Away” research (1Q 2002)Set up UK testing site for “Swept Away” research (1Q 2002) Set up possible tracking test site in Australia (2Q 2002)Set up possible tracking test site in Australia (2Q 2002) –Asian Territories (mid-to-late 2002): Presenting/Proposing possible service at CTF Asia Regional Marketing Conference...here today.Presenting/Proposing possible service at CTF Asia Regional Marketing Conference...here today. Roll out possible “first test” in TBD market by January, 2002.Roll out possible “first test” in TBD market by January, Roll out in additional markets (prioritized) by March, 2002.Roll out in additional markets (prioritized) by March, –Spanish Language Service: Begin Development in 4Q 2002 Primary focus for Columbia-Espania (Spain) utilizationPrimary focus for Columbia-Espania (Spain) utilization Secondary focus for “Key” Latin American TerritoriesSecondary focus for “Key” Latin American Territories SONY INTERNATIONAL SONY INTERNATIONAL Internet-based Ad Testing

39 THANK YOU!