1. Confidential Starz Deal Summary January 5, 2009

2. Confidential 1 Deal Overview

3. Confidential 2 Deal Summary Secured 3 year extension to the Starz deal Original deal expired December 2013; New deal provides Sony security of a Pay TV deal through December 2016 (Disney through 2012; Paramount, MGM, Lionsgate – no Pay TV deal) License fees and bonus continue to be above market New deal provides framework for Starz services on the internet, ensuring premium access and premium messaging –Minimum bundle pricing –Also available on a la carte basis Rate card for “Open Internet” subscribers only –Cap on number of subscribing households

4. Confidential 3 Overall Deal Terms License Fees and Bonus Current term (2009 – 2013) Rate card unchanged 2009 – 2011; Rate card reduced 12.5% 2012 – 2013 Annual Bonus of $47.5MM unchanged Sony maintains the only studio bonus in the industry Rate card remains well above market throughout current term Although reduced, rate card in extension continues to be above market Extension term (2014 – 2016) Rate card reduced 35% Annual Bonus of $38.7MM Extension valued at $500MM - $600MM Annual Qualifying Films Up to 50 films per yearAll studios have Pay TV title caps; ours is the highest and offers greater flexibility within our slate Cap exceeds historical and projected SPE slates Internet SOD Premium pricing / access Premium branding Incremental fees Structure is in the spirit of traditional Pay TV flat fee mode l; but provides clear definition for “Pay TV on the internet” Potential additional upside for Sony Other Benefits 72 hour PPV/VOD viewing Reduce Pay 2 EST Floor to $3.50 Pay 2 Black Periods eliminated Mobile/Cellular rights for Sony subscription offering between Pay 1 & 2 for up to 6 pictures /year at less than $50MM DBO SCA allowed to exhibit up to 2 pictures /year on FOD basis if packaged with a Sony consumer electronics product >$100 / transaction Increases Sony value in pre-Pay TV windows Creation of 1 additional month of network window for Sony to monetize Improves Sony’s mobile/cellular offering Improves Sony’s consumer electronics offering Terms Comments

5. Confidential 4 Title Caps / Qualifications [Thanda / Chris] Section would include one or two slides explaining the applicable title caps, Qualifications, ability to move between “A” and “B” – through 2013 and thereafter

6. Confidential 5 Rate Card and Bonus [James]

7. Confidential 6 Rate Card CREATE TABLES FOR THE FOLLOWING Current rate card; note that it is unchanged (except for elimination of supercaps?) and how long it is in effect 12.5% reduced rate card and when it’s in effect 35% reduced rate card and when it’s in effect

8. Confidential 7 Bonus $47.5MM and when it’s paid (note this is not a change) $38.7MM vs. $40MM (what are the options, when would it be paid)

9. Confidential 8 Bonus Show the financial (DCF / Revenue) impact of selecting the various payment options

10. Confidential 9 Internet Terms [Jim and James Update / Complete / Streamline]

11. Confidential 10 Overview of Internet Approach Overall philosophy is to ensure that online Starz is offered on a premium basis, primarily by video-based services A cap on total digital subscribers ensures service is offered to no more than roughly half of broadband households Suggested retail prices ensure service is positioned as premium –Online services may offer below suggested retail prices; however doing so will use the cap more quickly Marketing and messaging further ensures premium positioning [Jim and James to Draft]

12. Confidential 11 Examples Incremental Compensation Premium TV + BroadbandDSL Only Open Internet (cable TV + broadband) (DSL) Starz Play only marketed as part of packages that include TV (e.g., double play / triple play). MUST INCLUDE AN ALC OFFER WITH SUGGESTED PRICING NO “FREE” OFFERS Available as an a la carte “add-on” or part of a premium tier EACH with SUGGESTED minimum pricing NO “FREE” OFFERS Available as a la carte “add-on” or part of a premium tier EACH with SUGGESTED minimum pricing NO “FREE” OFFERS SUBSCRIBER Caps to Ensure Premium Internet SOD: Overview

13. Confidential 12 Suggested Retail Prices CableDSLOpen Internet Bundles Not applicable; but may only bundle with packages that include basic cable Greater of $33 ($29.99 Verizon) or Basic+$5.99+$.01 $33 threshold moves up and down with market changes $13.99 through 2012 $16.99 thereafter A La Carte in addition to a video service N/A $5.99 through 2012 $7.99 thereafter A La Carte without an underlying video service $5.99 through 2012 $7.99 thereafter $13.99 through 2012 $16.99 thereafter Note: through June 2009, Netflix SRP will be $7.99 ALC, $8.99 bundled. Thereafter, Netflix SRP will be the same as other Open Internet services

14. Confidential 13 YearHH Cap 200935MM 201040MM 201145MM 201250MM 201350MM Cap applies to all instances of Starz Play (TV+BB, DSL Only, and Open Internet) Household cap for Starz Play is 35MM in 2009; growing to 50MM in 2013 Post 2013, cap grows as a % of growth in high-speed internet households (but never less than 50MM) SubsRate Card Incremental/ Max Total 0-10MM$0.33/yr$3MM / $3MM 10-15MM$0.50/yr$3MM / $6MM 15-20MM$0.75/yr$4MM / $10MM 20-25MM$1.00/yr$5MM / $15MM 25-30MM$1.25/yr$5MM / $20MM Rate card applies to Open Internet subscribers only (i.e., excludes TV+BB and DSL Only and excluding Netflix) Total annual fees to SPE capped at $20MM (expected value is less than $20MM as much of cap likely to be filled by TV+BB and DSL Only subs) Separate Netflix settlement: $2MM per year for next 3 yrs (if Netflix terminates, SPE receives single $2MM payment) Rate CardHH Cap Internet SOD: Household Cap and Rate Card [Jim and James Combine with Next Page]

15. Confidential 14 YearHH Cap 200935MM 201040MM 201145MM 201250MM 2013+% growth Cap applies to all instances of Starz Play (TV+BB, DSL Only, and Open Internet) Household cap for Starz Play is 35MM in 2009; growing to 50MM in 2012 Post 2012, cap grows as a % of growth in high-speed internet households (but never less than 50MM) % Decrease from Retail Price Subscriber Multiplier 0 – 10%1.75x 10 – 20%2.5x 20 – 50%3.25x 50 – 80%4x 80 – 100%10x Subscribers purchasing below suggested retail price are subject to a lower cap than other subscribers Example: Subscriber Cap AdjustmentHH Cap Adjusted Cap Mechanism 10M subs at retail price10.0M 10M subs at 15% below retail price 25.0M (10.0 x 2.5 = 25.0) Total Subs35.0M

16. Confidential 15 May only be marketed as a bundle with offering that includes cable TV service Can not be marketed as a bundle with data only by cable companies A la carte pricing made available No pricing restrictions for Starz Play as a result of it being bundled with TV Must maintain Starz branding Household cap applies Rate card does not apply Acceptable Marketing Messages “Sign up for Comcast ‘Double Play’ and get TV, Starz Play, and Broadband” Unacceptable Marketing Messages “Get Starz Play when you sign up for HSIP” Bundling with TV likely within Starz’ rights; nearly all cable broadband households have cable TV service -May offer Starz Play to these households without incremental fees to SPE -Marketing must still focus on access included with TV or premium packages -Cap on total households reinforces premium access Basic TermsRationaleExamples SOD Scenario 1: TV (Cable/Sat/IPTV) + Broadband

17. Confidential 16 Cable and Telco owned Web Sites Explain what SRP and multipliers apply for sites run by Telcos and Web Sites

18. Confidential 17 Can be bundled with any tier above basic as long as minimum price is $33/month [$29.99 for Verizon] -Today, only allows Starz Play to be bundled with highest of 3 tiers on Verizon and highest of 4 tiers on AT&T Can be offered a la carte for $7.99 [$5.99] on top of any tier Can not be positioned as “free” to consumer; value must be clearly identified Must maintain Starz branding Household cap applies Rate card does not apply Current Verizon DSL Plans “Starter” plan: $19.99  Starz Play available a la carte at $7.99 [$5.99] “Power” plan: $29.99  Starz Play available a la carte at $7.99 [This price was grandfathered: Starz Play can be bundled at no extra charge] “Turbo” plan: $42.99  Starz Play can be bundled at no extra charge Potential Verizon DSL + Starz Bundled Plan “Power Plus” plan: $33.00  Starz Play plus “Power” plan DSL providers shifting to cable-like offerings of IPTV + broadband (e.g., FIOS) Starz views cable-like treatment as critical; rate card does not apply $33 minimum price ensures premium position even if DSL prices fall Basic TermsRationaleExamples SOD Scenario 2: DSL Only

19. Confidential 18 Basic TermsRationaleExamples Limited to content provider websites Can be offered a la carte for $7.99 [$5.99] in addition to basic video subscription of $4.99 Minimum bundled price of $16.99[$13.99] If website has no subscription, Starz Play can be offered a la carte for $16.99 [$13.99] Must maintain Starz branding Household cap applies Rate card applies Hulu (no base subscription) Starz Play costs $16.99 [$13.99] Blockbuster “1 at a time” minimum plan for $9.99  Starz Play available a la carte for $7.99 [$5.99] “2 at a time” premium plan for $16.99 [$13.99]  Starz Play can be bundled Applying rate card acknowledges that rights are incremental to output deal Subscription requirement is analogous to cable -Ensures Starz continues to bundle with content (not software) -Today, $4.99 basic video, $7.99 [$5.99] a la carte fee, plus $20 for BB requires customers pay ~ $33 before Starz Play is bundled -As BB prices decline, $16.99 [$13.99] price ensures Starz Play remains premium SOD Scenario 3: Open Internet (excluding Netflix)

20. Confidential 19 Windows

21. Confidential 20 Timeline of Current and Proposed Windows Theatrical Release DVD / VOD Day & Date PPV / VOD Standard 10 months from theatrical (was 12 months) 3.5 months from VOD (was 8 months; not necessary with home theater carve-out) 4.5 months from DVD (was 6 months) 3.5 months from PPV (was 6 months) Home Theater / Early Window Pay 1 Triggers Pay 1 Window: No Black; 16 mos. current, 18 mos. in extension (was 15 plus black) No Pay 1 trigger