Hancock on BIVL June 12, 2008

1 Executive Summary BIVL test provides SPE with an opportunity to achieve two goals –Establish market terms that support SPT’s efforts to launch an early window VOD offering with cable, MSO, and DBS partners –Ancillary benefit of supporting a Sony United initiative to generate market awareness for Bravia/BIVL Prior to announcement (June 26), the following issues must be addressed –SPE to discuss the offering with talent, Starz, and VOD partners Talent payments in excess of wholesale may be required Agreement with SEL/SCA for indemnification of SPE and approach to transaction tracking / watermarking Determine whether DirectTV, iN DEMAND, Verizon, Movielink are able to opt-in to the test –Agreement on price List price of $29.99 (or $19.99) Viewers pay $7.99 (or $3.99) after any coupons / discounts –Viewing Period: 24 hour rental via streaming (agreed) –Availability: 4 weeks prior to DVD/Blu-ray street date for a two week period (Oct 14-18) –Offer to include promotional trailer for Blu-ray and other titles –Confirm overall comfort with quality of service

2 Recommended Offering and Rationale ParameterRecommendation Rationale Deemed Price$29.99 (or $19.99)  At premium to day-and-date; within “Home Theater” pricing range Cash Charge$7.99 (or $3.99)  After any discounts or coupons, users must pay at least this amount with a cash equivalent to validate testing parameters  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 likely a more sensitive issue to exhibitors than customers Duration2 Weeks  Allows for 2 week 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 Potential User Experience Discover Hancock channel Click movie Coupon pays balance to $29.99 Confirm rentalEnjoy movie Payment Service examples: PayPal Amazon FPS Google Checkout Enter Payment Service credentials to pay $7.99

4 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 $29.99 for the Hancock early window test Oliver Wyman Day-and-Date Analysis (1) Offer Price Incremental Revenue ($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

5 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 $29.99 (or $19.99)High Def Bravia / BIVL Early Window (1 month early) 85/15$4.50 (or $3.00) = 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

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 would 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 Additional constraint of 3 month post-theatrical release (not before October 2, 2008)

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 not commence before 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 support our messaging of Hancock / BIVL as a test