1. Privileged and Confidential Sony Pictures Entertainment and Sony Network Entertainment: Project Update February 1, 2012

2. Privileged and Confidential 1 Since meeting in December, we have made progress on three initiatives that will help differentiate Sony from competitors in the digital network entertainment space –Unique transactional models, including “PVOD with ownership” –Programmed video service called Crackle Plus on Sony platforms with exclusive originals and exclusive films to drive usage –Marketing and cross-promotional content to drive traffic Completed milestones include –Specifics of unique transactional offerings identified –Crackle Plus content volumes identified and costed in more detail –Preliminary marketing and promotional opportunities identified, several in progress –Completion of preliminary technical feasibility analysis on each project Critical next steps include –Incorporate in budgets –Continue execution, including investment in content and technical build-out Executive Summary

3. Privileged and Confidential 2 Unique Transactional Models

4. Privileged and Confidential Exclusive “PVOD with Ownership” Product Concept 3 2-day rental of hit films such as MIB 3 streamed to a Sony connected device (e.g., PlayStation) for approximately $25 (1) ; available roughly 60-90 (1) days after theatrical debut and/or 30-45 (1) days before the DVD is released Digital copy automatically populates personal UltraViolet locker roughly 2 weeks prior to DVD release at no additional cost (1) Pricing under discussion, PVOD availability may vary by title.

5. Privileged and Confidential 4 Potential Roll-out of “PVOD with Ownership” Title Theatrical Release Potential PVOD Window Tentative DVD Street Date Pirates! Band of Misfits (Release date under discussion) AprilJune or JulyJuly or August MIB 3 May 25 th Late AugustDecember 11 th I Hate You DadJune 15 th Mid AugustOctober 9 th The Amazing Spider-ManJuly 3 rd Early OctoberDecember 4 th Total RecallAugust 3 rd Early NovemberDecember 18 th Note: All availability dates subject to change. “PVOD with ownership” only on SEN “PVOD with ownership” through SEN and others

6. Privileged and Confidential “PVOD with Ownership” Integration Requirements 5 By Summer Launch PVOD security –Normal watermark requirement lifted on first 4 titles to accelerate time-to-market –Shutdown analog outputs; already enabled on PS and connected Blu-ray players UltraViolet Delivery: “Lite” UV –SEN generates e-mail with code –SPE handles UV account creation via PC and puts title / token in UV locker –SEN as a “UV LASP”: makes UV locker visible on device; enables streaming of titles in locker By October PVOD security –Water-marking in place UltraViolet Delivery: “Robust” UV –SEN as a UV retailer –SEN able to handle UV account creation and provide tokens to populate UV lockers with purchased titles

7. Privileged and Confidential 6 Crackle Plus

8. Privileged and Confidential 7 Free to consumer originals and exclusives with video experiences optimized for the Sony networked device audience –Ad-supported / free-to-consumer to attract largest audience –Develop slate of original content: “TV quality” series –License exclusive film avails (i.e., recent and library titles) –Highly curated experience run by experts who program target audiences worldwide –Initial U.S.-only launch with later international expansion Integrated with and driving up-sell to SEN’s paid services : Summary of Concepts

9. Privileged and Confidential 8 Invest in Content Exclusive to SEN (i.e., “Only on Crackle Plus, Only on Sony”) Original Shows 2-3 TV caliber series annually (i.e., approximately 26 episodes in FYE13 and approximately 39 episodes in FYE14 / steady state) Shows released weekly for regular programming Differentiated and premium (i.e., Pan Am / Breaking Bad level quality) to attract and engage consumers on a regular basis Curated Films 15 additional 2-3 yr old, exclusive driver titles in the network window like District 9, Salt, Battle L.A. refreshed monthly Approximately 100 incremental library titles (i.e., incl. SPE and 3 rd party titles) relative to current Crackle service (i.e., 300 total) Inside Looks, Music, and Events Behind the scenes, movie and pilot premieres, new game releases, and coverage of most relevant pop culture gatherings (e.g., Comic-Con, E3, SxSW) Live concerts, music festivals, unplugged sessions with artists, “secret” shows Include Crackle’s Existing Base of Content to Offer Scale : Content on SEN Films Approximately 200 library titles (i.e., predominantly SPE titles) with 5 additional 2-3 year old driver titles in the network window like Step Brothers, Talledega Nights, Pineapple Express refreshed monthly Television and Originals Approximately 1,800 full-length and short-form television episodes including Seinfeld and Married With Children Over 40 original series featuring notable talent including Neil Patrick Harris, John Hamm and Christina Applegate

10. Privileged and Confidential 9 MilestoneMonth Budgets submitted that reflect funding of all contemplated initiativesFeb / March Launch in-depth research related to original content creation[February] Original content greenlitMay Crackle Plus Service and show-specific marketing campaigns begin[August] Crackle Plus service launchedOctober 1 st original content aired on Crackle Plus serviceNovember : Timing

11. Privileged and Confidential Status Technical teams have met Agreed integration is feasible for October launch General agreement that Crackle Plus free-to-consumer content needs to be: –Searchable within the Crackle Plus experience and the PlayStation store –Include dynamically inserted ads “Must haves” for launch include: Prominent “what’s new” placement for service, originals, and free movies Dedicated CRM that facilitates ongoing e-mail pushes to engage and update customers with content Open Issues Determining best placement of the Crackle Plus app / experience (e.g., either free-standing app with deep links to store or all Crackle Plus content inside the store) Next Steps Wire framing potential alternatives Proposed solution to be completed by next update meeting 10 : Integration

12. Privileged and Confidential Crackle Plus Budget Impact 11 FYE13 is a partial year due to fall launch timing and includes investment, revenue benefits and cost-savings related to the shift of SNEI resources to this initiative –Estimated incremental investment does not quantify benefit to hardware sales –Includes impact to SPE and SNEI, before any corporate marketing ($MM)FYE13 Gross Investment Content($49) Headcount/Tech(7) Sub-total($56) Uplift and Cost Savings EBIT Uplift on Services[$12] SPE Int’l Sales3 Sub-total$15 Net FYE13 Investment / EBIT Impact($41) (1) Based on approximately $300MM of domestic SEN revenues, 20% uplift, and 20% contribution margin. (1)

13. Privileged and Confidential Crackle Plus Budget Impact 12 Economics would be incorporated in SPE and SNEI FYE12 budget submissions; specifics being resolved but preliminary proposal is: SNEI Pays SPE a flat fee equal to estimated content costs less estimated ancillary revenues (e.g., international, video etc.) and also bears bandwidth, data center and cloud costs Retains uplift in service revenues SPE Responsible for its own investment in headcount and infrastructure Retains ad revenue Bears actual content cost and execution risk on ancillary revenue opportunities –SNEI content license fee intended to offset content costs, but SPE bears risk and upside associated with content costs and international revenue

14. Privileged and Confidential Marketing Considerations and Benchmarks 13 Objectives Successful launch of compelling free-to-consumer content that drives trial among existing device owners Create recurring incentive for audience to consume Sony content on Sony devices Launch Spend Comparables Implications ShowOff-Air Spend Avg HBO 1-hr~$15MM Boardwalk Empire~$20 Avg 1-hr Cable Drama~$10 Avg ½ hr Bcast Comedy~$7 Price of awareness for comparable launches, excluding use of on-air inventory and spend on 3 rd party networks is a material expense Need to discuss potential use of Corporate Strategic Marketing funds to support initiative (1) (1) Note: SPE Corp Dev estimates.

15. Privileged and Confidential 14 Marketing and Promotional Content

16. Privileged and Confidential Marketing and Cross-Promotions Marketing and promotional opportunities will serve to: –Drive awareness of the SEN brand and service –Drive traffic to the SEN site –Enrich the SEN experience with unique content SPE will provide a range of assets, including: –Exclusive trailer launches starting… –Home entertainment “extra” content starting… –Marketing avails on DVDs and BDs including package inserts and sizzle reels starting… –Advertisement inventory on SPE channels in key SEN markets starting… –Brand placement on film one sheets and other field promotion items starting… Early success with the December trailer launch for Men in Black 3 across SEN and other platforms –[Launched in 34 countries in 20 different languages] –[20 million online trailer views to date (13 million in the first week)] –Became a global trending topic on Twitter within the first half hour of our launch 15

17. Privileged and Confidential Marketing and Cross-Promotions 16 Initiative First Avail First Title / Property Other Potential Titles / Frequency Exclusive Content (Trailer launches, DVD & BD extras) DVD & BD Marketing Avails (Inserts, sizzle reels) TV Ad Avails (Channels and channel websites) Theatrical Field Promotions (One sheets, postcards) December 2011 January 2012 MIB 3 Resident Evil 5 [1-2 per quarter / TBD] [Upcoming titles TBD] Note: All information in profess.

18. Privileged and Confidential 17 Update on SPE Licensing Activity

19. Privileged and Confidential Update on SPE Licensing Activity 18 To come from SPT Bus Dev