1. CONFIDENTIAL Project Big Fish: Acquisition Opportunity July 2006 CHANGED TO JULY

2. page 2 Agenda Executive Summary Detailed Analysis: Digital Distribution Landscape Appendix

3. CONFIDENTIAL Executive Summary

4. page 4 Executive Summary Digital distribution is critical to SPE –Digital video distribution is reaching critical mass, changing the distribution landscape and creating new opportunities for Sony Pictures –Other studios are investing heavily to capitalize on these opportunities Sony Pictures is developing solutions for digital distribution and has three alternatives for market entry –Build an entirely home-grown solution –Partner with technology vendors and online destinations –Acquire for technology, management, and/or user base An acquisition would best address technology challenges and accelerate speed- to-market by providing a platform –“Big Fish”, a leading destination for user-generated content, is a target which could be a cornerstone for SPE –Acquisition criteria include access to technology, management expertise, content and revenue potential –Potential risks relate to retaining and growing customer base and incorporating commercial content

5. page 5 Digital Video Distribution is Reaching Critical Mass Infrastructure is nearly in place –Roughly 50% broadband penetration of U.S. households –Compression technologies continue to improve –Content owners digitizing libraries Consumers are engaging with more content, in ways that are unique to a two-way, interactive medium –Over half of Internet users have visited a social networking site –U.S. video downloads exceeded 18 BN in 2005 Traction is being demonstrated by multiple players, large and small, new and old –Leading online destinations extending brands to video –Traditional networks establishing online presence –Start-up video and social networking sites building large audiences

6. page 6 Changing Distribution Landscape and User Behavior Create Opportunities for Sony Pictures IP-delivery is decreasing control exerted by traditional distribution partners and increasing the importance of two-way communications –Consumer time spent watching cable and network TV forecast to remain roughly flat while time spent with interactive media (online, games, mobile) will grow 10%-30% annually Unlimited shelf space is increasing the importance of niche content –Major studio content composes 95% of volume for brick-and-mortar retailers but only 80% for online retailers Advertising is becoming increasingly important in the online space –Online advertising grew 30% in 2005 (compared with 6% for traditional media) –Online advertising expected to reach 25% of the $115 BN domestic advertising market SPE is creating digital video services to capitalize on these trends and strengthen our position in the market –Increase control of distribution and build direct, two-way relationships with consumers –Broaden base of content to include user generated and short-form –Increase ownership of ad-supported content FIXED TYPO IN TITLE, TWEAKED WORDING

7. page 7 Evolving Infrastructure Represents an Opportunity to Build Direct Relationship with End-users and Increase Control of Distribution Broadcast Model Cable Model Digital Distribution – Licensing/Syndication Broadcast Network Broadcast TVLocal Affiliate ProductionCustomerDistributionAggregation SPE Cable Network Cable TVCable MSOSPE PortalPC or TV Broadband ISP SPE Customer-facing Service SPE-owned Service PC or TV Broadband ISP SPE

8. page 8 Sony’s Efforts to Date Demonstrate the Challenges in Building Core Technology and the Need to Invest Appropriately Learning and ImplicationsSony Efforts to Dates Nanofilms Chat Cinema Broadband Channels Sony Connect Marketing partnerships –“When a Stranger Calls” on MySpace Bundling films on digital media –Memory Sticks –Flash Memory –Computer Hard Drives Initial efforts were ahead of market appetite; current efforts demonstrate market readiness Social Networking and User Generated Video sites are effective marketing platforms –“When a Stranger Calls” has 115K friends on MySpace Success requires a significant investment in marketing and infrastructure Sony faces challenges in developing differentiated technologies in-house Acquiring established brands and technology can be more cost efficient Screen Blast SoapCity iFilm (early investor) MovieLink Current Previous

9. page 9 Competitors See Value in User Generated Video Sites and are Investing Heavily in the Space Online Destinations Acquired iFilm for $49 MM Acquired Intermix / MySpace for $580MM Acquired IGN and Scout for $X Acquired iVillage for $592MM Promoting new series on YouTube Acquired Lightningcast for video advertising technology Licensing content through BitTorrent and Guba (social network) Social Networks Generate Value for Traditional Content Owners  Large audiences provide a legitimate alternative distribution channel  Increasingly supported by advertising revenue  Two-way medium with high degree of interactivity, customer engagement and feedback  Provide opportunities to create popular derivatives of existing properties  Harness users’ creativity to identify and develop new concepts  Large audiences provide a legitimate alternative distribution channel  Increasingly supported by advertising revenue  Two-way medium with high degree of interactivity, customer engagement and feedback  Provide opportunities to create popular derivatives of existing properties  Harness users’ creativity to identify and develop new concepts Fixed typo (extra space in WB section)

10. page 10 User Generated Content Sites are Attracting Large Audiences Social NetworkStoreChannelPromotional Source: Nielsen NetRatings. Figures as of 6/21/06. * Grouper unique user numbers as provided by company. Number of unique users represents US base of direct and embedded. Worldwide unique users total approximately 8 million. Predominantly short video clips that promote the site owner’s content, merchandise, and brand May include some advertising, and minimal commerce capabilities, but is promotional in nature Includes on-demand videos available in programmed micro-channels, on a show- by-show basis, or in a traditional channel lineup Business model primarily includes advertising, with some upsell to subscription Aggregates video across content providers for purchase Uses a range of models including sell-thru, rental, and subscription Generally consists of short video clips from users of the service May also provide tools for creating video clips or interacting with video content Primarily ad-based business models Monthly Unique Users (mm) Changed title

11. page 11 Acquisition Targets Must Meet the Following Criteria Focus on these criteria and reasonable valuation to:  Accelerate time-to-market  Decrease cost of entry  Gain access to new content  Create potential for growth in advertising revenue  Accelerate time-to-market  Decrease cost of entry  Gain access to new content  Create potential for growth in advertising revenue Proven track record Domain expertise Strong Management Service operation and design Tools / software development Consumer data usage Differentiated Technology Large and growing base of user-generated content Breadth of Complimentary Content

12. page 12 SPE Target and Competitive Landscape Technology Capabilities LowHigh Low (< 3mm) High (> 3mm) Existing Service Penetration Google (97.2) Yahoo (105.5) AOL (72.0) YouTube (20.1) MySpace (51.4) Grouper* (2.8) Brightcove (0.2) Veoh (0.1) FOX.com (8.5) ABC.com (8.0) MLB.com (9.3) Facebook (7.7) Connect (1.2) iTunes (20.5) CBS.com (5.4) MTV Overdrive (4.4) (Monthly Unique Users in millions) Source: Nielsen NetRatings. Figures as of 6/21/06. Grouper unique user numbers as provided by company. Number of unique users represents US base of direct and embedded. Worldwide unique users total approximately 8 million. Blinkx (0.01) Metacafe (1.6) Friendster (0.8) AddictingClips (1.7) iFilm (3.2) Revver (0.1) Dailymotion (0.4) vidiLife (0.7) VideoEgg (NA) vimeo (0.4) MovieLink (0.6) CinemaNow (0.3) vSocial (0.5) Guba (0.9) Roo Media (0.6) Moved movielink and cinema now higher

13. page 13 Big Fish Company Overview Multi-platform Video Network dedicated to watching, sharing, and creating user generated video #2 independent video community (Hitwise May report) Service Summary Technology Differentiators Current Status Partners and Affiliates Video distribution technology enables video portability to multiple devices (iPod, PSP, mobile phones) Proprietary software client with P2P file sharing Supports all major video formats and encodes to Flash Video 8, WMV9, MP4 Desktop video creation technology featuring video editor, video optimizer, webcam recorder, miniDV transfers and client-side Video Plug-and-play rich video functionality on partner sites that enable users to watch, search, upload and share video Affiliate agreements with MTV, Friendster, Buy.com, Everyone’s Connected, Logitech, and Pure Digital Launched beta version of site and attracted 7MM global UU’s (2.8MM US) Pre-revenue; developing version 3 of the service Received [quang verify $5M?] of funding to date Received a competitive acquisition bid and provided valuation guidance of $50MM Currently employees [28] full-time; [X] contractors tweaked

14. page 14 Big Fish Service Highlights Watch Home page with “video wall” of user generated content; 80% click-through Content can be discovered through: –Rotation in video wall –Search –Channels Ability to download content to multiple devices in appropiate format –iPod –PSP Share Create Easy upload of user videos Add video comments to video from other users One click publishing to other sites, including MySpace Import address from MSN, Hotmail, and Yahoo to create email groups P2P client enables download of original, high quality files (not just streams) Real-time recording and upload from web cams and mobile phones Proprietary client with easy-to-use editing tools –Select video –Select photos and tracking / panning effects –Select music UPDATE

15. page 15 Big Fish Management Team Josh Felser, CEO & Co-founder –President & Co-founder Spinner (Sold to AOL for $320M); GM AOL’s music brands; Business development at News Corp Dave Samuel, President & Co-founder –CEO and Co-founder Spinner; VP Technology AOL, MIT Aviv Eyal, CTO & Co-founder –CTO and Co-founder Friskit; Lead engineer Microsoft Multimedia Mike Sitrin, VP Revenue & Co-founder –Director Marketing and Commerce AOL, Director of Sales Spinner Jonathan Shambroom, VP Product –VP Product Jumpstart, Director Product: Evite (Sold to IAC), When.com (Sold to AOL), PF.Magic (Sold to Learning Co)

16. page 16 Big Fish Performance Against Competitors Ease of Use Community Connections Features Quality of Content P2P Client Technology Content Management Strength of Leadership Monthly Unique Users (mm) 2.8 1.7 0.4 0.9 3.2 1.6 NA 0.1 0.7 0.4 0.5 20.1 Strong, experienced team Unknown Weak team Strong (but captive to Viacom) Unknown Average Unknown Young, limited experience

17. page 17 Cross-Sony Opportunities for Big Fish Connect service primarily acts as a digital store, aggregating commercial content for Sony devices Big Fish expands service capabilities, adding user-generated content and distributing across all device types Big Fish technology built to support ad-based and transactional business models Big Fish can expand to become the lead brand for Sony’s broadband channels or support additional channels with new brands Big Fish has positioned itself to meet the high demand for online video advertising (supports ad insertion in both streamed and downloaded content) SPE ad sales team could sell ad space Technology As A Platform for Growth SPE Ad Sales Opportunities Complementary to Connect

18. page 18 Risks and Mitigation MitigationRisks Customer retention / increased competitionDifferentiated technology provides a better user experience than competitors Leverage strategic partners for growth (less dependent on “fads” in user taste) Inability to offer commercial contentEnsure SPE appropriately programs content for the channel Create new, more interactive content for the Big Fish Integration challengesStructure incentives for acquired management Allow new management to retain decision-making authority Lack of interest by advertisersBig Fish struck first deal with MTV AOL and Google report sold-out ad inventory

19. page 19 Valuation Based on Multiple of Unique Users for Comparable Companies Based on Big Fish’s current 2.8MM US unique users and based on multiples in comparable transactions, initial valuation guidance includes a discount for the company’s pre-revenue status

20. page 20 Valuation Based on Venture Funding of Comparable Companies Venture funding in this space has also been extremely active, and can provide an implied valuation range considering the percentage of the company given (ranging from 10% to 40%)

21. page 21 Deal Memorandum to SCA and Tokyo Submit non-binding term sheet Initial feedback on status of bids Tokyo approval to negotiate binding terms Initiate negotiations of binding terms Deal Memorandum to SCA and Tokyo Submit non-binding term sheet Initial feedback on status of bids Tokyo approval to negotiate binding terms Initiate negotiations of binding terms Due Diligence Analyze due diligence materials Meet with Company Finalize acquisition valuation Due Diligence Analyze due diligence materials Meet with Company Finalize acquisition valuation Process Timeline Activities/Worksteps Timeline Acquisition Rationale Review drafts with Calkins and Carey Present to Feingold Present to Lynton and Hendler Present to SCA (Wiesenthal and Kanagawa) Acquisition Rationale Review drafts with Calkins and Carey Present to Feingold Present to Lynton and Hendler Present to SCA (Wiesenthal and Kanagawa) 6/26 6/27 6/28 6/29 6/30 7/3 7/4 7/5 7/6 7/7 7/10 7/11 7/12 7/13 7/14 7/17 7/18 7/19 7/20 7/21

22. CONFIDENTIAL Detailed Analysis Digital Distribution Landscape

23. page 23 Broadband Access and Content Availability Are Driving Growth in Digital Video Source: SG Cowen Research dated June 7, 2005, Morgan Stanley Broadband Update, April 2005 30%38%46%52%57%61% 33.2 42.6 51.0 58.9 69.6 65.1 Broadband-enabled U.S. Households (MM)Video Downloads (BN) 0.28 18.0

24. page 24 Downloadable Video Should Drive Growth in Filmed Entertainment Pay TV/ SubscriptionVHS/ RentalDVD/ Sell thru Evolution of Content Distribution & Revenue Growth of Filmed Entertainment Industry in the US* New consumer benefits Introduction drivers Movies without advertising Consumer controlled viewing Ownership, high quality, additional features New cable network entrants Consumer electronics manufacturers Warner Home Video & CE industry 100%=$4Bn 100%=$18Bn Complete library, convenience & control Technology Companies IP Delivery $37Bn $47Bn 2004 2008e $2Bn $9Bn Video /DVD 7% TV 41% Box Office 52% Video /DVD 41% TV 32% Box Office 27% Source: Entertainment Industry Economics Vogel 4 th ed., PricewaterhouseCoopers Global Entertainment & Media Outlook 2004-2008. Models with unique consumer benefits have been consistently adopted by Hollywood Adoption has often been led by outside entrants and new industry players Double digit annual growth has doubled the market approximately every 7 years 1995 1980 * Includes revenue generated by films from major studios across content distribution windows – box office, video (rental, sell thru), television (ppv, pay, network, made for TV), and foreign revenues for each

25. page 25 Digital Video Delivery Represents an Opportunity to Reach a Younger Demographic Source: Pew Internet & American Life Project, December 2005 Percent of Each Age Group Downloading Video (18-28)(29-40)(41-50)(51-59)(60-69)

26. page 26 SPE Can Best Reach Younger Demographics with Models that Include Two-way Interactivity and Social Networking Source: Pew Internet & American Life Project, December 2005 Percent of Each Age Group Participating in Online Activity (18-28)(29-40)(41-50)(51-59)(60-69) Instant MessageRead a Blog

27. page 27 Consumers are Shifting Time Away from Traditional Media Toward Online and Interactive Media Note: Consumer Internet includes both dial-up and broadband Source: Veronis Suhler Stevenson, Val Morgan, Harris Interactive, L.E.K. Analysis, Jupiter analyst interview, Corporate Development Analysis Cable and satellite TV hours rise slightly due to increase in channels, VOD and PPV services Consumer time spent on broadcast TV may flatten with emerging technologies (a la TiVo) But the real growth is in Interactive/wireless, home video, internet and games

28. page 28 New Distribution Models are Shifting Consumer Consumption toward “Long-Tail” Titles

29. page 29 Studio Content May not Be as Dominant in Emerging Channels Sources: Nielsen Videoscan data, Wired 2.0, Industry Interviews, select store visits across Los Angeles area Product Mix of Units Books Music Home Video  Surveyed 6 B&N and Borders stores  Calculated number of SKU’s for a sample of fiction titles  Reviewed 8 to 12 stacks  Counted the number of separate SKU’s  Determined which titles were major (including sub-labels)  Amazon figures are units sold in 2005 (source Wired 2.0 and Bain consumer study)  Publishing analysts from First Research conclude that there is a strong correlation between SKU’s and units sold Methodology Niche (All Others) Major (RH, TW, Simon, HC, Pearson) Niche (All Others) Major (Uni, War, Sony/BMG, EMI) Niche (All Others) Major (7 Majors)  Surveyed 5 Borders and Best Buy stores  Calculated number of SKU’s for a sample of new release and catalog titles  Reviewed 6 to10 stacks  Counted the number of separate SKU’s  Determined which titles were major (including sub-labels)  Digital figures are units sold in 2005 (source Wired 2.0 and Bain consumer study)  Units sold figures for music via traditional stores is being researched through Nielsen Musicscan data  Surveyed 7 WalMart, Best Buy and Target stores  Calculated number of SKU’s for a sample of new release/catalog titles  Reviewed 12 to15 racks  Counted the number of separate SKU’s  Backed-up SKU findings with units sold data from Nielsen VideoScan  Digital figures are units sold in 2005 via Amazon & other online retailers

30. page 30 Media spending does not yet reflect consumption Advertising dollars are shifting online to address the current gap 2003-’05 US Advertising CAGR Contribution to Growth Television: TV Stations1.5%2% Cable Networks15.6%19% Cable MSOs8.1%3% CBS Net, FOX Net5.8%9% Total Television7.0%34% Magazines8.9%5% Newspapers3.4%11% Radio0.2%0% Outdoor7.1%5% Online50.4%45% Total8.4%100% SUMMARY Traditional Media5.1%55% Online50.4%45% Total8.4%100% Ad Market is Changing Significantly as Ad Dollars Following Consumers and Two-way Infrastructure Becomes Available 1999 2005

31. page 31 SPE Currently Has Limited Ability to Capitalize on the General Growth in Ad Revenues, Particularly in the Online Space US $ (Billions) Overall ’05 – ’09 Projected CAGR: 10.1% Broadcast ’05 – ’09 Projected CAGR: 4.9% Cable/Sat ’05 – ’09 Projected CAGR: 11.4% Online ’05 – ’09 Projected CAGR: 22.3% TV & Online Advertising Spend Source: Veronis Suhler, 2005 Note: Cable/satellite growth expected to be driven by increasing audience share of prime time ratings, ability to target within specific demographic groups, improved sales system; broadcast growth expected to be driven by sustained ratings and ad rates, continued appeal as optimal means to reach large audiences Online %:12%10%12%13%16%18%21%23%25% 57.9 60.7 63.2 71.7 78.3 87.6 95.1 106.0 114.9

32. CONFIDENTIAL Appendix

33. page 33 Digital Video Offerings Can be Divided into Four Main Categories PromotionalChannelStore Social Network Predominantly short video clips that promote the site owner’s content, merchandise, and brand May include some advertising, and minimal commerce capabilities, but is promotional in nature Includes on-demand videos available in programmed micro- channels, on a show- by-show basis, or in a traditional channel lineup Business model primarily includes advertising, with some upsell to subscription Aggregates video across content providers for purchase Uses a range of models including sell-thru, rental, and subscription Generally consists of short video clips from users of the service May also provide tools for creating video clips or interacting with video content Primarily ad-based business models

34. page 34 Examples of Online Video Destinations by Category CBS.com Fox.com NBC.com Sonypictures.com ABC.com Atomfilms CBS.com / innertube ESPN.com iFilm In2TV MLB.com MTV Overdrive Yahoo Google iTunes Facebook Friendster Google Grouper Metacafe MySpace YouTube Yahoo PromotionalChannelStore Social Network Larger Audience Smaller Audience Blinkx Innertube Multi-media Networks Singingfish CinemaNow Connect MovieLink Dave.TV Fleapit Gather Tag World Varsity World

35. page 35 Categories for Online Video Technology Providers Content Management Interactivity and Social Networking Consumer Tools Content preparation –Ingestion –Metadata / tagging –Ad insertion Content delivery –From content owners to aggregators –Onto P2P networks Content classification and discovery Tools and infrastructure for: –Chat –Instant Messaging –Blogs –Ratings –Recommendations –Clickable Video Video creation Video editing Media mixing software (integrate video, photo, audio) Video publishing (cross-platform) Personal channel creation DVD burning

36. page 36 Examples of Technology Providers by Category Grouper BrightCove Maven / The Platform Veoh Networks MLB Adanced Media Roo Media Grouper Sonic Sony Media Software Veoh Networks Content Management Interactivity and Social Networking Consumer Tools More Established Newer Entrant Extend Media Intent Mediaworks Kontiki Redswoosh Solid State Networks SyncCast Tandberg TV Zetools Avant Interactive Intent Mediaworks Imeem Kozuru vMix Dave.TV (Social Broadcast Network / MyChannels) Fleapit Intercasting / Rabble.com Oddcast Participatory Culture Video Publishing on Demand (vpod.tv) vMix

37. page 37 Key Attributes of Digital Video Services Content Accessibility 1 LowMediumHigh Content Value 2 Range of Content Providers 3 Content Breadth 4 Degree of Interactivity 5 ConnectedPortable Anytime, Anywhere PromotionalUser-Generated Produced Company Owned Aggregated Single GenreMulti Genre On-DemandAncillary (e.g., blogs and ratings) Real-Time (e.g., chat, story navigation) Business Model (Cost to Consumer) 6 FreeAd-Based Pay

38. page 38 Promotional Video Websites Overview Attributes Predominantly consist of short video clips to promote site owner’s content, merchandise, and brand May include some advertising, and minimal commerce capabilities, but is promotional in nature Content Breadth 4 Single GenreMulti Genre LowMediumHigh Content Accessibility 1 ConnectedPortable Anytime, Anywhere Content Value 2 PromotionalUser-Generated Produced Range of Content Providers 3 Company OwnedAggregated Degree of Interactivity 5 On-Demand Ancillary (e.g., blogs and ratings) Real-Time (e.g., chat, story navigation) Business Model (Cost to Consumer) 6 FreeAd-BasedPay

39. page 39 Content Breadth 4 Single GenreMulti Genre Broadband Video Channels Overview Attributes LowMediumHigh Content Accessibility 1 ConnectedPortable Anytime, Anywhere Content Value 2 PromotionalUser-Generated Produced Range of Content Providers 3 Company OwnedAggregated Degree of Interactivity 5 On-Demand Ancillary (e.g., blogs and ratings) Real-Time (e.g., chat, story navigation) Includes on-demand videos available in programmed micro-channels, on a show- by-show basis, or in a traditional channel lineup Business model primarily includes advertising, with upsell to subscription Business Model (Cost to Consumer) 6 FreeAd-BasedPay

40. page 40 Video Store (Content Aggregation) Overview Attributes Aggregates video across content providers for purchase Uses a range of models including sell-thru, rental, and subscription Content Breadth 4 Single GenreMulti Genre LowMediumHigh Content Accessibility 1 ConnectedPortable Anytime, Anywhere Content Value 2 PromotionalUser-Generated Produced Range of Content Providers 3 Company OwnedAggregated Degree of Interactivity 5 On-Demand Ancillary (e.g., blogs and ratings) Real-Time (e.g., chat, story navigation) Business Model (Cost to Consumer) 6 FreeAd-BasedPay

41. page 41 Social Network (User-generated Video Sites) Overview Attributes Consists of short video clips from users of the service May also provide tools for creating video clips or interacting with video content Primarily ad-based business models Content Breadth 4 Single GenreMulti Genre LowMediumHigh Content Accessibility 1 ConnectedPortable Anytime, Anywhere Content Value 2 PromotionalUser-Generated Produced Range of Content Providers 3 Company OwnedAggregated Degree of Interactivity 5 On-Demand Ancillary (e.g., blogs and ratings) Real-Time (e.g., chat, story navigation) Business Model (Cost to Consumer) 6 FreeAd-BasedPay