1. Mid Range Plan
Fiscal Years
November 2007

2. Agenda Executive Summary Core Programs Programming
Ad-Supported Digital Networks
Strategic Investments
Distribution and Licensing
SPHE & SPTI Contribution to SPT Product
Ad Sales
APPENDIX: Financial Slides

3. Strategic Investments Distribution & Licensing
Executive Summary
Plan addresses strategic challenges and takes advantage of growth opportunities
Core Programs
Maintain revenues as core programs age
Translate the value of traditional TV brands into the digital space
Partner with networks to ensure strong marketing support for our shows
Continue to create hit shows to satisfy a high-level of international demand
Forge partnerships to encourage viewing of our programs on DVR
Programming
Digital Networks
Increase monetization of Crackle, expand onsite audience and increase distribution
Grow fledgling brands to scale despite competition from established competitors
Strategic Investments
Expand VOD and broadband distribution to sustain FEARnet’s initial momentum
Evaluate ongoing support for GSN as company transforms its business model
Explore increased ownership in ITN to drive greater operating leverage
Distribution & Licensing
Manage increasingly complex rights and windowing strategy
Balance needs of traditional partners with emerging digital/mobile distributors
Ad Sales
Grow business to maintain scale/leverage in an expanding advertising universe

4. SPT Financial Summary EBIT Revenue ($ in MM) ($ in MM) $218 $218 $209
$201
$203
$203
$197
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
NOTE: Traditional television excluding Digital Networks and Crackle

5. Digital Networks & Distribution Financial Summary
EBIT Before Contribution
Revenue
($ in MM)
($ in MM)
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
EBIT After Contribution
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
($ in MM)
NOTE: Digital Networks excluding Crackle

6. Crackle Financial Summary
EBIT
Revenue
($ in MM)
($ in MM)
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP

7. SPT Total Revenue
From all sources of Domestic TV, Internet and Mobile revenue
($ in MM)
$1,690
$1,621
$1,581
$1,491
$1,432
$1,448
$1,408
Main Points:
These are highly stable franchise properties that generate practically risk free profitability and cash flow
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
($ in MM)
Est. MPG/ACQ. Profit
$295/$295
$265/$266
$322/$327
$335
NOTE: Before Seinfeld producer share

8. Net G&A Expenses & Headcount
Main Points:
These are highly stable franchise properties that generate practically risk free profitability and cash flow
(1) PY MRP G&A & headcount restated for headcounts included in SPHE/SPD which has since been transferred to DSD ($3.7M / 7 HC in PY09 and $4M / 7 HC in PY10)

9. CORE PROGRAMS

10. Core Programs Strategy
Aggressively seek renewals to capitalize on the demand for digital rights
Introduce innovative marketing programs to keep shows top-of-mind
Continue to aggressively sell SPT Library product
Seek additional revenue sources to help maintain historic revenue levels
Grow ancillary revenues through additional merchandising
Broaden revenue base through digital distribution of full episodes
Expand product offering with online games, DVD games and ringtones

11. “Seinfeld” Strategy MRP Assumptions EBIT
In discussions with Turner regarding 4th cycle renewal, which includes additional digital rights
Approach News Corp and NBCU for a deal that includes Fox stations, NBC or Fox cable outlets, and Hulu
Releasing DVD compilation in November 2007
Begin DST discussions (iTunes, Amazon) after DVD release
Support show through digital marketing (Yahoo viewers’ choice, digital elements for local station’s websites)
($ in MM)
$55
$40
$38
$38
MRP Assumptions
Despite ad sales inventory being priced among highest in syndication, expect gradual ratings erosion
3rd cycle cleared in 99% HH, guaranteed double run in 86%
Domestic DVD sales through FY08:
$320MM since inception
$31M from Season 8 and 9 releases in June and November 2007
Projected sales: FY09: $23MM, FY10: $11M and FY11: $9MM
FY08 assumes TBS renewal of $400K per episode
FY10 assumes Fox renewal of $1.1mm per episode
$20
$21
$18
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP

12. “The Young & The Restless/Days of Our Lives”
Strategy
EBIT
Overall
Preparing for renewal discussions, complete by end of FY09
Closely monitoring ratings to immediately address any ratings erosion
Working closely with Soapnet, CBS, and NBC on coordinated traditional/non-traditional publicity plans
Using new media platforms (Facebook, MySpace, YouTube, Crackle) to attract new and younger viewers
Working with international to increase overseas sales revenues
The Young & The Restless
Conducting a "nationwide" talent search to generate publicity
Launching Minisodes on CBS.com and other outlets
Enhanced digital strategy including behind-the-scenes footage and chats with the actors - posted across the web
Using Sony technologies (e.g., may change Y&R to 24p; may use hi-def portable cameras to shoot outdoors)
Working closely with SPTI to export creative, operational, and technical knowledge to our Russian production company
Days of Our Lives
Working with NBC to implement needed creative changes
Exploring minisode opportunities
Facilitating the integration of the new EP into the show
($ in MM)
$44
$42
$41
$41
$40
$40
$38
MRP Assumptions
The Young &The Restless:
Contractual license fees through 08/09
Renewal assumed at 08/09 fee
No production cost growth assumed
Days of Our Lives:
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP

13. “Wheel of Fortune/Jeopardy!”
Strategy
EBIT
Overall
Both shows renewed through the 2011/ 2012 season
5th version of both mobile games to be released in Q1 2008
Explore game-based JV opportunities with leading publishers of console/mobile/online games
Wheel of Fortune:
25th anniversary (07/08 season) initiatives include:
Cross-promotion agreement with PEOPLE and their ad clients
Viewer sweepstakes throughout the month of February offering a total of $1 million in cash prizes, provided by Sony Card
In talks with QVC for major cross-promotion including a branded week and sales of Wheel of Fortune products under license to Franklin Mint
Development of the Wheel of Fortune Lottery Game under license to Scientific Games
Launched DVD game to capitalize on additional revenue opportunities
Jeopardy!
Introduced JEOPARDY! EXP (Extended Play), the first-ever daily extension of a TV property where viewers go to their affiliate's website to play additional/exclusive content
Licensed DVD game from MGA has 250,000 advance orders
Renewed content and cross-promotion partnerships with New York Times, National Geographic, Discovery and PBS
Summer 2008: release of ESPN Jeopardy! board game
2008/2009: release of Rock & Roll Jeopardy! mobile game; possible release of other special interest editions in 6 month intervals
Expanded visibility of the brand through Classroom Jeopardy! presentations by the Clue Crew in key markets
Renewed agreement with Winnebago for Jeopardy! Brain Bus
($ in MM)
$118
$102
$96
$91
$91
$92
$85
MRP Assumptions
Production costs and CPM/ratings assumed at levels necessary to hold consistent profit margins
Contractual licenses through 11/12
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
NOTE: FY10 variance to prior plan result of FY08 IGT advance.

14. SPT Library Product Revenue EBIT
Budget/ Prior MRP
Budget/ Prior MRP
$178
$204
$186
$72
$85
$74
Variance
($9)
($20)
($32)
Variance
($13)
($1)
($6)
Coordinating with other SPE divisions to identify additional opportunities to sell SPT Library product
Initiating discussions with new partners to expand distribution of library product (e.g., Shout! Factory)

15. PROGRAMMING

16. SPT’s Programming Strategy
Network/Cable
Expand relationship with Embassy Row (through acquisition, JV or extended deal) to create a worldwide format business using Michael Davies as an anchor
Maintain a portfolio approach to balancing mainstream scripted development with measured, high concept programming
Continue to work with network marketing teams on all of our network/cable series
Work closely with our international division to develop shows that take advantage of strong international demand
Expand our cable footprint and continue to develop new markets by creating programs for emerging networks
Produce high-profile, tent-pole MOWs (Mayflower, Raisin in the Sun, Broken Trail)
Syndication
Digital
Prepare a Power of 10 syndication pilot and sales strategy
Work with Michael Davies, Yahoo, and Pepsi to bring The 9 to television syndication
Examine new 1st run syndication opportunities and partnerships with Tribune and other station groups in order to guarantee access to key time periods
Maximize court TV expertise to create and exploit efficiencies between multiple programs
Expand overall deals into Digital Programming relationships (e.g., Barry Sonnenfeld)
Establish digital sandbox for talent to participate across emerging platforms
Produce original content for our networks
Expand on the new Minisodes concept to leverage our existing content for digital distribution
Adding animation and game show blocks
Exploring “10 minute” movie opportunity
Licensing 3rd party content for Minisodes (e.g., Voltron)

17. Partnering to Drive DVR Viewership
Challenge
DVR viewing is eroding traditional network viewership
Today 21% of TV Households have DVRs and it is estimated that by 2010 that number will rise to 33%
DVR viewing is now incorporated into Live+3 ratings
Identify opportunities to engage viewers within the growing DVR community to record SPT programs and view them within the Live+3 window
Strike partnerships with TiVo, MSOs and satellite companies to drive viewership of our content on DVR within the Live+3 window
Create marketing opportunities for viewers to record full seasons or offer alternative marketing ideas
Opportunity
As of October 2007 SPT has met with TiVo and has had discussions with Echostar, Comcast, and DirecTV
TiVo is the only business model that currently offers a clear interactive solution to reach consumers who watch time-shifted programming
Echostar is interested in exploring possibilities around a "cross promotional" on-air campaign using our talent and brands. Comcast has licensed the TiVo Platform and will have similar opportunities as the TiVo model
Status

18. SPT’s Current Program Lineup
Young & The Restless
Rules of Engagement
Power of 10
The Kingdom (pilot)
My Best Friend’s Girl (pilot)
Jesse Stone: Thin Ice (MOW)
Comanche Moon (mini)
Days of Our Lives
The Watch (pilot)
‘Til Death
Canterbury’s Law (01/16/08)
Hackett (pilot)
Cashmere Mafia (11/27/07)
Literary Superstars (pilot)
Raisin in the Sun (mini)
Mayflower (MOW)
Syndication
Wheel of Fortune
Jeopardy!
Judge Hatchett
Judge Maria Lopez
Judge David Young
10 Items or Less
My Boys
Family Man (pilot)
The Company (miniseries)
Boondocks
Held Up (pilot)
Breaking Bad (01/08)
S.I.S. (pilot/mow)
Family Practice (pilot)
The Gathering (miniseries)
Spectacular Spider-Man
The Shield
Rescue Me
Damages
The Beast (pilot)
Danny Fricke (pilot)

19. SPT’s Key Writer/Producer Deals
Current
In-Development
End Date
Darren Star, Inc.
Cashmere Mafia
Literary Superstars, BBDO Project, The Ethicist, Flyswatters, Diary of a Manhattan Call Girl
05/30/08
25c (Sarah Timberman)
N/A
Hackett, Danny Fricke, Raffic, Unt Wallace & Wolfe, Brooklyn Pediatricians
06/08/09
Happy Madison
Rules of Engagement
Unt Adam Goldberg, Gay Robot, Robin Hood Medical, Unt Brad Copeland, Unt Warren Bell
08/07/08
Fanfare (Jamie Tarses)
My Boys
The Watch, Held Up, Drop Dead Gorgeous, 30x30, Unt Lee Flemming
05/31/08
Apostle
Rescue Me, Canterbury’s Law
Confidence, Unt Jim Manos
06/30/10
Neal Moritz
Unt Dave Caplan, Unt Carter Covington, Unt Mike Bender
06/26/08
Matthew Carlson
Hackett, Unt Carter Covington
05/29/08
Michael Davies
Power of Ten, Chain Reaction, Grand Slam
The Dating Game, The Newlywed Game, World’s Strongest Celebrity
01/01/09
Tantamount
Candy, Diva, Unt Christopher Guest, 80’s Cop Show, Sit Down Shut Up
06/15/10
BBC
Hotel Babylon, Cutting It, The Visit, Some Mothers Do ‘Ave ‘Em, Ab Fab
11/30/08

20. Overall Term Deal Financials
# of Term Deals
Net Cost Per Year
NOTE: Deals with total gross commitments of $1MM or more.

21. SPT Production Assumptions
Network:
• DAYS OF OUR LIVES / Y&R continuing throughout plan
• RULES OF ENGAGEMENT and CANTERBURY’S LAW continue throughout the plan (5 seasons and 4 seasons, respectively)
• POWER OF 10 continues for 3 seasons
• 9 pilots per season, resulting in 3 series per year
• One new series succeeds
– 09/10 TBD Drama (co-production)
Cable:
• RESCUE ME is ordered for a 5th season
• THE BOONDOCKS continues throughout the plan (4 seasons)
• DAMAGES, BREAKING BAD, and MY BOYS continue throughout the plan (4 seasons and 5 seasons, respectively)
• 4 pilots per year, resulting in 1 new series in FY09 and FY11 and 2 series in FY10
• One drama series succeeds in FY10
First-Run Syndication:
• WHEEL OF FORTUNE & JEOPARDY! continue throughout plan
• JUDGE MARIA LOPEZ and DAVID YOUNG continue throughout the plan (5 seasons and 4 seasons, respectively)
• TBD COURT SHOW launches in 08/09 and continues throughout the plan (3 seasons)
• THE NINE launches in 08/09 and continues throughout the plan (3 seasons)
• POWER OF 10 launches in 09/10 and continues throughout the plan (2 seasons)
Animation:
• One new season produced each year
MOW:
• 9 movies and 1 miniseries per year
Culver Entertainment:
• Production levels sufficient to generate $2MM in profits per year
Main Points:
These are highly stable franchise properties that generate practically risk free profitability and cash flow

22. Programming – New Series Investment & Development
($100)
($95)
($95)
($95)
Main Points:
These are highly stable franchise properties that generate practically risk free profitability and cash flow
Budget/Prior MRP
($90)
($82)
($83)
Variance
($10)
($13)
($12)

23. Programming – New Series Investment & Development
FY08
FY09

24. AD-SUPPORTED DIGITAL NETWORKS

25. Strategy Overview
Focus Crackle on high quality short-form content to differentiate the service and drive monetization of the site
Addresses advertisers’ need for quality and control and users’ desire for higher quality content
Shifts competition away from the entry-level “UGV” segment where YouTube is a clear leader
Launch new digital networks to create valuable channel brands and retain value currently captured by our distribution partners
Launched Minisodes, Funny Bone, AXN
Launching Screening Room this fiscal year
Share resources across our networks, increase programming to build scale
Create programs that build depth within our existing networks
Share programming, technology, advertisers, and distribution partners across networks
Evaluate strategic alternatives to increase scale in light of increasing competition from traditional network brands
Considering the creation of a single “umbrella” brand across our networks
Evaluating acquisition and partnership opportunities 25

26. Shared Resources Across Digital Networks
Crackle
New Channels
scrambler
highwire
Launching new channels
Sharing content
Distributing channels as a network
shorts
wet paint
moving target
Content
Distribution
Ad Sales
Infrastructure

27. Programming Philosophy Based on 4 Building Blocks
Library
SPE Film
SPT TV
New Access
Busted Pilots
Short-Lived Series
Acquired
Prosumer
Short & long form
Original Production
New Shows
Star-Driven
Penn’s Rant
Traffic Creating
Branded Ent.

28. Crackle Content and Programming
Elevate short-form video the way HBO redefined “made for cable”
Create truly compelling and “destination” content
Edgier content than what’s on TV, higher quality than YouTube
5 premium channels with targeted base of quality shows
Deepen stable of shows across all premium channels
Broaden fame partner network to continue to attract top talent

29. Distribution Philosophy
Today
Future
Leverage Shared Distribution Relationships

30. Revenue Plan for Digital Networks
As online video advertising grows, SPTAS has demonstrated early traction but significant growth is still needed
Crackle relaunch attracting top advertisers who seek quality content and a controlled environment
Integrated with 4 international rep partners covering a large % of monetizable inventory
Secured 4 Blue-chip advertisers: Pepsi, Honda, Sony and Epson
$1MM in booked Crackle revenues; additional $750K in the pipeline
SPTAS must address the challenges of a young, evolving digital advertising market to drive further revenue growth
Integrate our new networks and leveraging our content to deliver larger-scale audience and experience to advertisers
Focus on sponsorships; continue to modify ad units and targeting tools to meet advertiser needs
Drive additional revenue through international rep firms

31. Digital Networks Financials EBIT Before Contribution
Revenue
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP

32. Crackle Financial Summary
EBIT
Revenue
($ in MM)
($ in MM)
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP

33. STRATEGIC INVESTMENTS

34. GSN and FEARnet Summary
Challenges
Audience remains small and demographics skew toward an older-female audience, which is less valuable to advertisers
Limited reach to launch hit or demo-changing shows
Improvements more difficult due to: declining ratings, fragmentation, return of game shows to broadcast and affiliate pressures
Attempt to broaden beyond traditional demographics with younger-male skewing poker programs proved unsuccessful
Company Plans
David Goldhill brought in as the new President & CEO
Proposed a merger between GSN and FUN Technologies to facilitate interactive strategy
Embracing existing older-female demographic, gradually seeking to get marginally younger
Expanding business to capitalize on growth of casual games
Making accessible participation and interactivity central to all programming
Seeking multi-platform games business model: packaging, online ad sales, online fees, formats, mobile, etc.
Next Steps for SPT
Evaluate potential success of new strategy
Determine interest in further investment or exiting GSN investment
Challenges
Launch was strong but must secure additional distribution deals (e.g., cable carriage or online)
Need to increase ad sales, including push by Comcast to provide leadership in dynamic ad insertion
If these don’t happen, revisit business model and ownership structure
Initiatives
Closed deals with Verizon and Cox
Need to close carriage agreements with TWC and others; increase the number of web unique users through syndication ops
Boost ad sales by:
Hiring sponsorship marketing person to focus on multi-platform sponsorships
Move focus from VOD ad sales to web advertising
Working to extend distribution to mobile with Verizon through SPT Mobile Group representation
Pursing additional horror inventory verticals to aggregate unique viewers e.g., bloodydisgusting.com
Developing original productions with Ghost House
Cable VOD Ratings
Available in 12.2 million homes
Top 10 network 11 mos. running with 6.7M views a month
74 million views to date (launch through 9/29)
Top 5 network in set-top box use with 2.2M boxes per month
Average time spent viewing of 48 minutes
Web Ratings
#1 Horror site in America (registered users)
200% Growth since February
7 straight months of growth
Hitting projections for unique users

35. Game Show Network – Financial Summary SPT Share of Dividends/(Funding)
SPT Share of Net Income
SPT Share of Dividends/(Funding)
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP

36. FEARnet – Financial Summary
SPT Share of Net Loss/Income
SPT Share of Cash Funding
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP

37. DISTRIBUTION AND LICENSING

38. Strategy Overview
Coordinating expanded digital rights across distribution partners and windows
Offering “all rights under one roof” (broadcast, cable, IPTV, satellite, Internet and mobile) to ensure close coordination and maximize revenue per account
Capitalizing on the opportunity to offer a broader range of rights to a wider range of buyers
Non-traditional competitors (Comcast, AT&T) are buying content and rights for emerging platforms (VOD/Internet/Mobile); established players are expanding rights to stay competitive
We are strategically tailoring rights and product offerings to customers’ business objectives
We are providing advertisers new opportunities to connect with a more targeted audience
Distributing more content across more platforms to drive revenue growth
Off broadcast (Rules of Engagement, Power of 10)
Off cable (Rescue Me, Damages, MyBoys)
1st run (Judge David Young)
Internet developed shows (The 9, Buried Alive)
Library product online and on mobile (Who’s the Boss?, Monty Python)
3rd party acquisitions (G.B.B., Just for Laughs)
New library strategies (Minisodes network)
Work with feature acquisitions to monetize product

39. Integrating Digital with Traditional TV
Traditional Partners
Digital Partners
Networks
Cable
Syndication
Pay TV
PPV / VOD
Optimized Rights
Portals
Social Networks
Mobile Carriers
Internet Retailers
Virtual Worlds
Shared / Expanded Resources
Deal & Rights Management
Manage terms and rights across digital and TV deals
Integrate deals into contract and financial systems / processes
Manage avails, pricing, MFNs, and other key terms
Preserve, optimize, and allocate value to traditional and digital rights
Research & Business Dev
Identify new business models across platforms
Create bundled rights in traditional media and new windowing strategies
Develop interactive ad sales models and technologies (online video ads)
Enter new licensing markets (virtual worlds)
Marketing
Create integrated marketing campaigns
Develop materials to market both offline and online content
Build digital experiences with partners to promote core assets (Damages)
Create digital experiences of our own (Seinfeld.com)

40. Distribution Sales – Total Licensing Revenues
SPT will generate $745 million in total current and library sales for SPE
($ in MM)
$937
$799
$793
$745
$748
$751
$680
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP

41. Free TV / Basic Cable Market Dynamic MRP Initiatives
Networks are more selective on what they buy due to increased appetite for original programming
Networks need more rights to compete with emerging digital platforms
Increasing number of viewing opportunities in earlier windows (digital rental, PPV) makes it more difficult to maintain value in the Free TV window
Utilizing newly-developed ratings and competitive database to support library sales
SPT is employing new strategic initiatives for movies and TV shows, and licensing new rights
Updated internal system for tracking ratings
Shorter and dual windowing
Inclusion of barter
Repurposing
Multi-platform simulcasting and multiplexing
Network VOD/SVOD
Network-branded MSO VOD
EST
Converting “event” movie buyers and non-movie buyers into ongoing buyers
“Event” movie buyers like Hallmark, G4, and E! transitioned to ongoing buyers
Close initial sales of films with current non-movie buyers like TV Land, Nite, and Soapnet

42. Free TV / Basic Cable – Revenues
($ in MM)

43. Syndication Market Dynamic MRP Initiatives
Consolidation of buyers has created the need to partner and co-develop first-run programming
Off-net programming continues to be a highly desired product that commands premiums
For library sales, new clients are emerging through Spanish language channels and digital second channel owners
Local stations and cable networks are seeking rights to stream episodes on their web sites
Aggressive sales efforts of library & new shows
King of Queens 2nd cycle
4th cycle renewal of Seinfeld
Upgrades and renewals for Judge Maria Lopez and Judge David Young
New first run syndication shows (The 9; Power of 10)
Steve Harvey as an ad-supported strip in 2008
Stream products on local TV station/cable network sites
Secure additional 3rd party products
Add new clients from digital second channel owners (GTN) and ION Television and Spanish Language channels (Telemundo, etc.)
Exploit the relationship with WGN+ for new library sales
Pursue co-development deals with NBC, Tribune and other station groups

44. Syndication – Revenues
($ in MM)

45. Pay Per View / Video On Demand
Cable Market
MRP Initiatives
Cable MSOs continue to focus on the triple play and are committed to being the single provider of TV, voice, and data into the home
Eager to improve the traditional PPV/VOD offerings through earlier windows, HD rights, and content for broadband services
FOD not a priority for buyers
Primary product is traditional PPV/VOD rights
Locked a 3 year ext output deal for PPV/VOD rights (exp.12/31/10) with iN DEMAND
Leveraging Cable MSO’s need for earlier windows and HD to secure better placement, higher prices, and better splits for SPT
Expanding licensing discussions to on-line rental VOD and EST based on MSO focus on broadband services
Satellite Market
MRP Initiatives
Satellite trying to catch-up with cable on VOD and broadband
Creating new products for their home customers to compete with the triple play
DIRECTV and EchoStar are building push VOD, closed IP delivered products
Committed to launching new HD channels
FOD not a priority for buyers
Leveraging satellite's need to provide VOD, SPT is in negotiations for PPV/VOD output deals with both DIRECTV and EchoStar
Securing commitment from DIRECTV for SPT FOD product
Negotiating with EchoStar to carry The Minisode Network and to offer direct-to-video product

46. Pay Per View / Video On Demand – Revenues
($ in MM)

47. Pay TV – Strategy Market Dynamic MRP Initiatives
Starz remains our primary output partner
Pay partners, including Starz, are seeking cross-platform rights
Multiple customers have demonstrated interest in a mix of library and newer, short-form content
To keep pace with market leader HBO, Showtime and Starz are placing an increased priority on original programming relative to library deals
Just exercised the Starz option – deal will now expire December 31, 2013
Starz wants to discuss additional changes to their deal in exchange for an extension beyond 2013
Leveraging Starz’ desire for digital content and cross-platform plays to expand our relationship into VOD, carriage for Minisodes, and new SPT digital channels
Close library deals with Showtime and HBO

48. Pay TV – Revenues
($ in MM)

49. Library Sales Targets by Market
$113
$99
$90
$87
In-House $38MM
Main Points:
These are highly stable franchise properties that generate practically risk free profitability and cash flow
3 year annual average of $101MM in FY08-FY10, and $100MM in FY09-FY11
4 year annual average of $97MM

50. Library Revenue by Division
($ in MM)
$165
$124
$111
$111
$101
$97
$90
In-House $91MM
In-House $86MM
In-House $35MM
Main Points:
These are highly stable franchise properties that generate practically risk free profitability and cash flow
In-House $26MM
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
NOTE: Before net present value adjustment.

51. Library Revenue by Market
($ in MM)
$165
$124
$111
$111
$101
$97
$90
In-House $91MM
In-House $86MM
In-House $35MM
Main Points:
These are highly stable franchise properties that generate practically risk free profitability and cash flow
In-House $26MM
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP
NOTE: Before net present value adjustment.

52. Distribution Sales – FY09 Slate
SPT will generate over $451 million in sales from the FY09 slate

53. Digital Licensing Market Dynamic MRP Initiatives
The paid digital market has developed slower than initial expectations
Technology just now being introduced
Significant retailers have yet to enter the market
Key digital players have focused on ad supported efforts
The DST market is currently dominated by 2 major players (Apple and Xbox)
Content owners are experimenting with a wide range of content offerings, business models and partnerships
Many new devices are being introduced, driving consumer demand
Continue to expand overall content offering across business models and platforms
Broaden selection of film and TV product
Introduce compelling, original short-form/original content into the offering
Continue to find new ways for consumers to consume our content on emerging platforms and devices
First to deploy paid and ad supported premium content inside virtual worlds (Gaia)
Expand global leadership of movies on memory cards/mobile phones
Optimize rights/windows / formats to create incremental revenue from library product (Netflix subscription service, Screening Room mobile, PS3 HD)
Secure premium real estate on emerging platforms and out-merchandise our competitors

54. Digital Video Market Growth
Spending for online and mobile video content is forecasted to grow at double-digit rates well into the next decade
Studios are continuing to make an increasing amount of premium content available for digital distribution
Primetime TV, movies, and original content
Historically game-based, mobile is also proving viable for video distribution
Adoption of 3G handsets continues to grow and is improving viewing experience
Carriers are seeking video content to attract and retain customers
Domestic Revenue ($MM)
$5,980
$4,600
$3,150
$1,950
$930
Online video advertising will be the largest market (exceeding DST) driven by 1) traditional media players distributing their ad-supported content via the web 2) ads inserted in user-generated video streams
Digital sell-through will be a $1 billion market by 2009 with key internet companies (Amazon, iTunes) leading consumer conversion to digital ownership
Sources: eMarketer; SPT Business Development *Includes DST and rental

55. Digital Licensing – Revenues
($ in MM)
($ in MM) $5
$19
$36
$70
Apple/Microsoft Deals

56. Mobile Games & Personalization
Market Dynamic
MRP Initiatives
Carriers are reducing the number of game publishers with which they do business
Video is becoming the largest product push for carriers
SPT Mobile group is capitalizing on these trends
Leveraging a combined video and mobile content offering
Grew to #7 mobile game publisher in market from #14 last year
Bringing media marketing capabilities to partners
Taking responsibility for game development from SPDE; coordinating greenlight process with SPTI
Controlling entire product pipeline (concept through development) to better align with market demand
Slating 8 games per year; significantly increased game efficiencies – fewer games with higher ROI / less overhead
Growing SPT franchises in market (e.g., Rock & Roll JEOPARDY!)
Increasing marketing support
Taking direct responsibility for personalization products (ringtones, wallpapers) from SPDE
Tones / graphics based on select TV and film properties
Packages and new content based on compelling brands and themes

57. Mobile Games & Personalization – Financial Summary
EBIT Before Contribution (1)
Revenue
(1) PY MRP mobile costs restated for development costs incurred by SPD now incurred by DSD as a result of the transfer of game production to DSD ($4.4M in PY09 and $0.8M in PY10).

58. SPHE & SPTI CONTRIBUTION TO SPT PRODUCT

59. SPHE Contribution to SPT Product
Revenue
Net Contribution
$154
$44
$38
$37
$107
$95
$30
$82
Budget/ Prior MRP
Budget/ Prior MRP
$154
$123
$119
$49
$40
$37
Variance $0
($15)
($24)
Variance
($4)
($2) $0
MRP reflects declining demand for TV Library product on DVD; securing additional distribution partners that focus on library product
MRP does not assume Blu-ray sales for TV Library

60. SPTI Contribution to SPT Product
Revenue
Net Contribution
Budget/ Prior MRP
$200
$174
$183
Budget/ Prior MRP
$167
$146
$152
Variance
$31
$46
$42
Variance
$30
$39
$37

61. AD SALES

62. Overview of Ad Sales Environment
The market has improved recently, driven partly by the new C3 ratings system
C3 coincided with recovery in the up-front market
The new system decreased total ratings points, driving near-term price increases
C3 is also creating opportunities for product integration
We are addressing the aging of our core programs and continuing to seek growth in traditional TV categories
We are partially offsetting rating declines for our older shows by reformatting commercial placements and taking advantage of C3 benefits for syndicated shows
Expanding our cable business (Tennis Channel, Mojo) given the challenges of securing satellite representation
Selling program-by-program to grow the :10 business
We are also driving growth by expanding beyond our traditional TV business
Increased 3rd party representation
HD advertising marketplace still growing
Emerging opportunities in digital ad sales (e.g., Screening Room/MediaFlo)
Growth in new platforms, including in-game advertising

63. Advertising Market Overview Total Domestic Television Ad Sales Market
CY06 Sales ($ in Billions)
Total Domestic Television Ad Sales Market
Percent of Total Sales
$29.8
Network
48.0%
$29.1
Cable
46.9%
$2.8
Syndication
4.5%
$0.4
Digital
0.7%
Source: Network, cable and syndication figures from Nielson Ad Views. Digital figure from eMarketer report.

64. Expanding SPT’s Advertising Footprint
Network
Syndication
:10 Spot
Cable / Satellite
Digital
Mobile
In-Game

65. SPT’s Ad Sales Businesses Will Continue to Grow
Syndication
Hold back inventory and maximize dollars with higher scatter pricing
Bring on new advertisers, leveraging digital assets and new opps.
Developing custom metrics with Nielsen to acquire new ad partners
The :10 Solution
Expand client list with traditional :30 buyers
New program representation opportunities (Crosswords)
Create Upfront marketplace for :10 business
3rd Party Represent-ation
Continue to build Hi-Def ad sales with MOJO, seek new HD nets
Focusing on Cable: Tennis Channel, Ovation and Gospel Music Channel
MRP includes annual revenue of $13MM trending to $20MM
Digital
Create digital sales verticals: MUSIC, ENTERTAINMENT and GAMES
Position MINISODES as digital network across all platforms
Establish SPTAS as Sony’s digital ad sales group – currently representing SonyBMG, talking with Playstation

66. Advertiser Sales Net Revenue (non-digital)
Main Points:
These are highly stable franchise properties that generate practically risk free profitability and cash flow

67. Digital Ad Sales ($ in MM) $77 $67 $63 $39 $17 $15 Main Points:
These are highly stable franchise properties that generate practically risk free profitability and cash flow $9
FY08
Q2/BDGT.
FY09
MRP/PRIOR
FY10
MRP/PRIOR
FY11
MRP

68. APPENDIX: Financial Slides

69. SPT – Major Contributions to Earnings

70. SPT – Earnings Comparison (Year vs. Year)

71. SPT – Earnings Comparison (FY08 vs. FY11)

72. SPT – Earnings Comparison (Plan vs. Plan)

73. SPT – Major Contributions to Revenue

74. SPT – Summary Financials

75. Digital – Summary Financials

76. Digital – Earning Comparison FY08 vs FY11

77. Crackle – Summary Financials