1. DRAFT Outline for Networks Deck December 16, 2010 Draft as of 12/1/10

2. DRAFT page 1 (1) ScreenDigest 2010. (2) Strategy Analytics 03.10, SEL. (3) Parks Associates 08.10. WW Broadband HHs (1) (MM) WW Smartphone Shipments (2) (MM) WW Connected Game Console HHs (3) (MM) WW Internet Connected TV HHs (3) (MM) CAGR: 6% CAGR: 38% CAGR: 14% CAGR: 51% Growth in Digital Access Expanding Beyond the PC

3. DRAFT page 2 Video Viewing by Platform In Progress

4. DRAFT page 3 Small But Growing Group Of Consumers Says Online Video Has Them Seriously Thinking About Canceling Cable/Satellite Subscription Source:2010 Frank N. Magid Associates Base: Respondents 18-64 with a basic or digital TV service, N=1,720 10.3 How much do you agree with the following statement: Now that online video is available, I am seriously thinking about canceling my cable/satellite subscription. Agree (4+5) 2010: 16% agree (4+5) 2007: 6% agree (4+5)

5. DRAFT page 4 Available Models for Viewing Film (Post Theatrical) Theatrical + (in days) Example ProvidersPricingSelection of Content Blu-ray DVD Sell- thru EST (Non-HBO) EST (HBO) Day & Date VOD Traditional VOD Pay TV 1 Pay TV 2 Subscription Rental – Physical Subscription Rental – Streaming (during Pay 1) Subscription Rental – Streaming (Library) Kiosk Broadcast In Progress

6. DRAFT page 5 TV Viewing Options Today Broadcast +Example ProvidersPricingSelection of Content Live Broadcast Live Online Next Day Ad- Supported Next Day Purchase Next Day Rental Delayed Ad- supported DVD Purchase Subscription Streaming In Progress

7. DRAFT page 6 Leading Services Are Known for Providing the Most Content Under a Well-defined Payment Model Segment Dominant Player Customer Value PropositionSupported DevicesNumber of UsersCountries Video TV-Library Unlimited streaming access to 600 TV series on multiple devices ($7.99/mo.) PC, Xbox, TV, BD, Roku 20.2MM Monthly US Uniques US TV-Catch Up Streaming access to ~900 TV series (free ad-supported or $7.99/mo. subscription) PC, TV, BD, Xbox, PS3 19.7MM Monthly US Uniques US TV-Real TimeNo dominant player to date Home Video- Library Unlimited streaming access to 5,000 films on multiple devices ($7.99/mo.) See above Home Video- New User interface & integration with apple devices (Computers, iPad, iPhone, etc.) PC, Apple TV, iPod, iPhone, iTouch, iPad 11.5MM Monthly US Uniques US, CA UK, DE, AU, JP, 5 EU, 2 APAC Music Radio 40 hours of free streaming with ads PC, TV, BD, Western Digital, Boxee, Mobile 20MM Monthly US Uniques (300K paying subs) US MusicSee above Video Games [Need input from SNEI re: whether it is fair to say there is no dominant player. PSN owns Playstation; Xbox Live owns Xbox] Need SNEI Input (Red Text Below)

8. DRAFT Device Manufacturers Broaden Range of Content and Purchase Models to Drive Adoption Case Study: Apple TV Generation 1Generation 2 Device Price$229 - $299$99 1 st Party Business ModeliTunes purchase (buy-and-store)iTunes streaming rental only (no storage capability) 1 st Party Content Pricing TV: $2.99 purchase NR Film: $14.99 - $19.99 purchase TV: $0.99 rental NR Film: $4.99 rental 3 rd Party OfferingsFlickr, Mobileme, YoutubeNetflix, Flickr, Mobileme, Youtube Media Server Functions/Device Integration PC Only Remote Control: iPhone, iPad, or iPod Airplay: Stream videos, music and photos from computer, iPhone, iPad, iPod to Apple TV Units SoldEstimated 2MM+ in the first 12 months (1) Estimated 4.5MM in the first 12 months (2) page 7 (1) News articles and blogs (2) Stifel Nicolaus estimates, September 2, 2010 Generation 2 is roughly a quarter of the size of Generation 1

9. DRAFT page 8 Expansion of iTunes from music to video 1 Strong Service Brands Have Expanded Beyond Their Traditional Core Offerings 1) Source: ScreenDigest. ScreenDigest reports 1 bundled transaction as 1 TV transaction, although 1 bundle actually converts to multiple single episodes purchased as a package 2) Source: FastCompany, Netflix CEO: We’re a Streaming Company, 10/21/2010 Expansion of Hulu from free/ad-supported model into paid model –Hulu launches in 2008 and with ad- supported model and hits 100mm video streams first year –By 2010, Hulu reached over 900mm streams –Hulu Plus (monthly subscription) launches 2010 Service includes commercials, but offers expanded library of content and use on a wider range of platforms Expansion of Netflix from physical to digital rental –“By every measure, we are now primarily a streaming company that also offers DVD-by- mail.” 1 – Reed Hastings 66% of subscribers have streamed content, up from 41% year-over-year 1 “next quarter the majority of members will watch more content streamed than delivered on DVD.” 2 iTunes Hulu Netflix

10. DRAFT page 9 Overview of Samsung’s Third Party Service Offering

11. DRAFT page 10 Overview of Xbox’ Third Party Service Offerings (1) 3 rd Party Service Offerings Live FreeLive Gold ($50/year)CountryAdditional Requirements NoYesUS & CanadaNetflix subscription NoYesUSHulu subscription NoYesUK & IrelandSky TV subscription NoYesWorldwideFacebook account NoYesWorldwideTwitter account NoYesUS & UKlast.fm account Yes PortugalVodafone Casa TV subscription NoYesUSESPN3 affiliated ISP Yes Australia Foxtel On Xbox Live subscription (1) Does not include other 1 st party features such as voice chat, video chat, avatars, Xbox arcade point results, and Zune, among others.

12. DRAFT page 11 Overview of Xbox’ Owned Service Offerings Zune Video –A la carte film & TV rental and purchase (2,500 films and 900 TV series) –Users have the ability to purchase and access content across three screens: the TV through Zune on Xbox LIVE, the PC through Zune Marketplace, and on the Zune HD device Zune Pass (Music) –Streaming access to millions of songs for $14.99 / month –Ability to download 10 MP3s per month Kinect Voice and Gesture Controls for Xbox Zune –User can use gestures and voice commands to find and play music and videos and control playback without using a game controller or remote control

13. DRAFT page 12 Comparison of Digital Video Services (streaming) Dominant in: N/A Purchase of recent and library film and TV N/A Subscription film and TV Purchase of recent and library film and TV Next day TV (ad- supported and, likely subs) N/A Major Studio Support Yes, Worldwide No Fox/Dis in EU No DisneyYes, US only Yes, but no new releases Yes, Worldwide Yes, Worldwide (no CBS) Yes, Worldwide # of Films6,1342,50019,5732,300+Approx 5000 Approx 11,000+ 9574,4588,352 # of HD Films 3,0711,100++1000Approx 1000Approx 800+0350+2,000+ # of TV Series 700 (19,000+ episodes) 900 (23,000+ episodes) 4,700+ (80,000+ episodes) 170 (4,000+ episodes) 600 (12,000+ episodes) 3,000 + (50,000+ episodes) 927 (23,700+ episodes) 151 Titles (13,000 + episodes) N/A Next Day TVYes LimitedN/AYes N/A Countries/ Regions US, UK, FR, DE, SP, JP US CA, UK, FR, DE, AU, IT, IR, 6 EU, 2 APAC US AU US US, CA UK, DE, AU, JP, 5 EU, 2 APAC USN/AUS Supported Devices PS3, PSP, PC, TV, BD Xbox, Zune PC, TV (SONY, Samsung, Vizio, Panasonic) PC, TV (Vizio, Samsung), STB (Tivo) PC, Xbox, TV, BD, Roku PC, Apple TV, iPod, iPhone, iTouch, iPad PC, TV, BD, Xbox, PS3 PC, TV, BD, Tivo Archos TV, BD, VUDU devices, PS3 Need SNEI to validate

14. DRAFT page 13 Exclusive Content on Select Digital Offerings (1) Exclusive ContentNotesExclusive 3 rd Party ServicesNotes Xbox PSN / Qriocity Samsung iTunes Netflix (1) As of November 2010 (2) Reality TV series Note: Exclusive content are examples only and not comprehensive In Progress Needs input from SNEI

15. DRAFT page 14 Third Party Services Are Widely Available Across Connected Devices NetflixHuluPandora Connected TVs LG, Sanyo, Sharp, Sony, Toshiba, Vizio Samsung, Sony, VIZIO LG, Mitsubishi, Panasonic, Sanyo, Toshiba, Vizio Mitsubishi, Samsung, Toshiba, Vizio Mitsubishi, Panasonic, Samsung, Sharp, Toshiba, Vizio Home Theater Systems (Includes BD Players) Insignia, LG, Samsung, Sony, Vizio Samsung, Sony, VIZIO Insignia, LG, Panasonic, Sony, Vizio Samsung, Sony Game ConsolesXbox 360, PS3, WiiXbox 360, PS3PS3Xbox 360, PS3 (1) Digital Media Players Roku, Boxee, Seagate, TiVo Premiere, WD TV Live Roku, Boxee, Tivo Premiere Roku, Boxee, Tivo Premiere, WD TV Live Boxee, Tivo Premiere (1) Accessible through PS3’s web browser (compared to direct links on Xbox Live) Devices are examples only and not comprehensive

16. DRAFT page 15 Overview of Samsung’s App Store In March 2010, Samsung opened the first ever HDTV-based application store for its TV sets, Blu-ray players, and home theater systems Apps Store Apps available for download today span information, video, lifestyle, games, and sports (both free and paid) Pricing for premium apps will be similar to smartphone apps Popular free apps include Netflix, Blockbuster, Hulu, YouTube, Napster, ESPN, Cinemanow, Pandora, Facebook, Twitter, Vudu, and soon-to-come Amazon VOD Samsung is projecting over 200 apps by the end of 2010 Application Platform Open platform that encourages anyone from premium content owners to individual developers Store is aimed at letting content owners and developers gain access to multiple device types for one development effort

17. DRAFT page 16 Sony / Google Partnership Overview Deal Summary Non-exclusive agreement; however, Sony has a six-month non-contractual lead time before competing devices and TV makers gain access to Google TV’s open software platform No monetary exchange; however Google will pay Sony a rev share on the sale and distribution of Sony apps (as with all app developers in general) Source:News articles. Need additional detail from SNEI First-mover advantage to get a leg up on competitors (i.e., Apple) to establish presence in the “Smart TV” market Alleviate downward pressure on TV hardware profitability by incorporating differentiating products (i.e., services into our hardware) Opportunity to partner with Google on a broad array of non-TV products (i.e., game consoles, PCs, new mobile handsets) Deal Motivation Concerns in Media Positive Media Reaction First to market Breadth of supported services Complexity of set-up and remote control Networks have blocked streaming access

18. DRAFT page 17 UGC Music & Video Music & Video 3 rd Party 3 rd Party 3 rd Party 3 rd Party Qriocity PSN BIV for all partnership PS Experience Sony Experience Fragmented value proposition Duplicated contents category offer UGC separately managed 3 rd party not well integrated Relationship between Qriocity and PSN: Today Qriocity Limited exposure PSN Marketing vehicle

19. DRAFT page 18 UGC Qriocity – as a platform/venue Enhance Sony Value Proposition Relationship between Qriocity and PSN: FY2013 Reading Contents Reading Contents Music & Video Music & Video App & Other App & Other “PS” Game “PS” Game 3 rd Party 3 rd Party 3 rd Party 3 rd Party 3 rd Party 3 rd Party PS Non- game PS Non- game “xxx powered by Q”“PlayStation” Registration/ID Security Reporting Recommendation Drive additional Revenue & traffic BIV for legacy partnership Qriocity Clear brand definition PSN Gaming experience

20. DRAFT page 19 Near-term Alignment of Qriocity and PSN Service Brands ServicePlaystationTVBlu-ray Playstation Video powered by Qriocity (“Powered by” branding will be launched on [ ]) Qriocity Video-on-Demand Playstation Games Music Unlimited powered by Qriocity (Qriocity branded service available across devices, starting on [ ]) Needs input from SNEI

21. DRAFT page 20 Sony Network Services Roadmap Sony Owned Services3 rd Party Services on Sony Devices Segment Dominant Player CurrentPlannedCurrentPlanned Video (1) TV-LibraryNetflix PSN Video, Qriocity VOD N/ANetflix, Vudu (Limited) Cinemanow, HBO Go, Showtime, Crackle TV-Catch UpHulu PSN Video, Qriocity VOD N/AHulu/Hulu PlusN/A TV-Real Time-N/A MLB.TV, NHL Gamecenter NBA Game Time, NFL, Turner March Madness, MLS, UFC Home Video- Library Netflix PSN Video, Qriocity VOD N/ANetflix, Vudu Cinemanow, HBO Go, Showtime, Epix, Crackle Home Video-NewiTunes PSN Video, Qriocity VOD N/AVuduCinemanow Music RadioPandoraN/A Pandora, SHOUTcast (Asia) N/A MusiciTunesN/A Music Unlimited powered by Qriocity N/A Vevo (ad-supported music videos) Video Games -PSN GamesN/A (1) Excludes 23 current 3 rd party services and 7 planned 3 rd party services in Asia Need SNEI to validate

22. DRAFT page 21 3rd Party Services Currently Available on Sony Networked Devices 3 rd Party Services Offered on PSN and Qriocity