India Sports Channel Opportunity September 17, 2009

Executive Summary  SPT currently has three sports properties (IPL Cricket, NZ Cricket, FA Cup Soccer) on MAX and could better leverage these on a dedicated sports channel –Sports represents an opportunity to build equity in a new channel and reach an attractive demographic –Our sports properties on MAX (a film channel) dilute the MAX brand and would be more valuable on a sports channel  BCCI Cricket rights are up for bid in Mid-October and would be the cornerstone of a sports channel –BCCI Cricket includes all matches of the 10 ICC teams played in India –Bid is expected to be $420MM  Based on preliminary analysis, we recommend bidding on BCCI with the intent of launching a Sports channel in August 2010 –If bid is won, 3 existing sports properties would also be moved to new channel –Incremental investment would be made in ancillary “filler” properties, G&A, headcount, and marketing, –Key economic assumptions (BCCI price, cash flow timing, cost of new IPL teams) are preliminary but imply modest incremental profits over current approach

 The sports channel can mitigate downside risk to IPL –Rating declines, if any, can be offset with frequency of spots provision across all properties  The Sports channel will allow better monetization of NZ and FA cup  Sports channel will help ensure continued growth in distribution revenues –Easier to monetize distribution on a sports channel than on MAX –The Sports channel will reinforce bouquet strength and increase diversity making “One Alliance” a must have  The sports channel will enable us to eliminate confusion of MAX positioning –Increasing number of IPL teams will increase number of cricket days, which will further dilutes MAX’s film-oriented brand  The sports channel will create a large revenue opportunity for MAX –Shifting of IPL to the sports channel will create Net Ad Income of $44.6 mm  A sports channel will enhance the value of the MSM networks for customers: –Access to hard to reach male audiences, southern customers –Ensure coverage in all major categories, other than news  The sports channel timing is right: –Major rights (BCCI & EPL) are coming up for bid –IPL is increasing the number of teams to 10 (from 8) from Season 4 Strategic Rationale

Scenario 1: License fees are paid 100% upfront

Scenario 2: License fees are paid 50% upfront; 50% post collection

FPC