1. CONFIDENTIAL SPE Service Opportunities Draft

2. page 1 Traditional Studio Content and Distribution Businesses are Fragmenting Studio User Generated Games On-demand Linear Broadcast Cable Satellite IP Wireless Television PC Portable Media Player Game Console Mobile Phone Established Emerging Content ProductionDelivery InfrastructureContent ServicesPlayback Devices

3. page 2 Hypothesis for High Level Focus Areas Studio User Generated Games On-demand Linear Broadcast Cable Satellite IP Wireless Television PC Portable Media Player Game Console Mobile Phone Established Emerging Content ProductionDelivery InfrastructureContent ServicesPlayback Devices SPE Focus on Content and Adjacent Service Businesses Third Party Partnerships Sony Hardware

4. page 3 Growth Potential by Content and Service Type Studio User Generated Games Content ProductionContent Services 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Amateur: 2006: $X 2009: $X CAGR: X% “Prosumer” 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% Nascent market with early signs of potential –Current / Yahoo! as early entrants –No dominant player in place Large, established market with limited growth potential No established market, questionable potential Early stage with significant growth –Investment focus for studios –Early validation for advertising opportunities Early stage with significant growth –Infrastructure now in place –User adoption accelerating Continued growth opportunities –Mobile, PC, and console games Considerations

5. page 4 Hypothesis for Detailed SPE Focus Areas Original content production Repurpose library, archives, and stock footage Extensions of in-market properties User generated video (entry-level and “prosumer”) Third-party aggregated Branded/ad-based ContentOwned Services Ad Sales Syndicated digital video service for online affiliates, offering: –Programming of original SPE content and 3 rd party aggregated content –Technology (video player, server) –Bundled ad sales TV affiliate web sites as early customer base Business-facing Grouper for user generated video Grouper / Backlot for “prosumer” video Grouper and/or new services for ad-supported premium content Grouper and/or new services for sell-through premium content Consumer-facing Advertiser driven content –New forms of short, tailored ads –Sponsor contests for user created ads Ad sales for affiliates Online ads pre-sold against syndicated online channels Ads sold against Grouper & other owned inventory Allow advertisers to target ads; track impressions

6. page 5 Questions to Address All Opportunities (Content, Ad Sales, Services) Content Ad Sales Which new forms of content represent the best opportunity for investment? What is the required level of investment to reach critical mass with new forms of content from SPE and third parties? What role should each division play in the overall digital production portfolio? What is the appropriate greenlighting process for digital productions? Which business models are most attractive (growth, margin, competition)? Which opportunities best fit with SPE’s expertise? How can SPE best organize to minimize duplication and share common infrastructure and resources across services? What incremental investment in headcount and infrastructure is required? Which current and new advertisers represent the best clients for cross- platform ads? What new forms of advertising are required to best address the opportunity?

7. page 6 Questions to Address Business Facing Services (“Syndicator”) Can technology serve as a key differentiator? What technologies should be licensed or acquired? What is the appropriate mix between SPE and aggregated content? How many affiliates are required to make the service economically viable? How can SPE best build its affiliate network (e.g., leverage TV affiliates; acquire an established video Syndicator)? Consumer Facing Services (Grouper, Others) What additional service capabilities should Grouper expand to address (e.g. premium content, prosumer content?) When? What additional services should be built as standalone brands (e.g., Backlot)? Can these services leverage Grouper’s infrastructure? What additional services should SPE partner or acquire to address? What is the impact of owned services on SPE’s ODE licensing business? How do owned services and licensee partners interact? Should content be handled differently between owned services and licensees (e.g., exclusive content)?

8. page 7 Desired Outcome Detailed plan to address the transition from traditional to digital distribution Define areas of investment for new forms of content –Create budgets and secure resources for content development –New forms of owned content in-market –Initial stable of aggregated content in-place Expand expertise in cross-platform ad sales –Ad sales for Grouper live (starting January 2007) –Ad sales for licensing partners continue (e.g., AOL) Expand range of owned services –Grow Grouper and enhance functionality –Build and launch Syndicator model –Complete analysis, plan, build, and launch currently identified services (e.g, Backlot) –Identify new opportunities and be in early stages of building or acquiring

9. page 8 Preliminary Timeline