1. Hancock on BIVL June 2008

2. 1 Executive Summary SPE has been asked to participate in an early window VOD test, making Hancock available exclusively on Sony Bravia TVs through the BIVL service This test provides SPE with an opportunity to achieve two goals –Support a Sony United initiative to generate market awareness for Bravia/BIVL –Establish market terms that support SPT’s efforts to launch an early window VOD offering with cable, MSO, and DBS partners We recommend moving forward with the test based on the following terms –Deemed Price: [$19.99] –Threshold Price: Users must pay (with a cash equivalent) a minimum price of $9.99 to ensure there is no risk to the Starz relationship –Viewing Period: 24 hour rental (streaming) –Availability: 4 weeks prior to DVD/Blu-ray street date for a two week period –Split: The greater of 85% of the deemed price or actual retail price –Promote the availability of Hancock and other Blu-ray titles and include a trailer for a SPE theatrical release at start of stream

3. 2 Pricing Magid Early Window Analysis Optimal day-and-date pricing is $7.99 to $8.49 per Oliver Wyman study Early window HD should clearly be at a premium to day & date Between $14.99 and $34.99, buy rates for HD early window are comparable to standard VOD at $3.99 (1-4% depending on title/genre) At this stage, HD early window test pricing should at least be in the mid-range of early window analysis (e.g., it’s too early to go low) We recommend a price point of [$19.99] for the Hancock early window test Oliver Wyman Day-and-Date Analysis (1) Offer Price Incremental Revenue ($MM) Buy Rates Offer Price (1) Relative to 2006 actuals, HD day-and-date rental at $8.49 yields net increase of $375MM (10%) in SPE U.S. Studio Revenue Optimal at $8.49

4. 3 Wholesale PricingFormatModelSplit $ to Service Provider $3.99Standard DefStandard VOD60/40$1.60 $4.99High DefStandard VOD70/30$1.50 $4.99Standard DefDay-and-Date VOD70/30$1.50 $7.99 -- $8.49High DefDay-and-Date VOD70/30$2.40 -- $2.55 [$19.99]High Def Bravia / BIVL Early Window (1 month early) 85/15$3.00 = Proposed pricing and split, no deals currently in place SEL would pay SPE on the same terms as MSOs and DBS partners Greater of 85% of the deemed or actual retail price is generally consistent with the $ value retained by service providers in the HD day-and-date window

5. 4 Requirements New and existing BIVL customers must pay for offering with a cash equivalent The price paid with a cash equivalent (after all coupons, gift cards, etc.) must be at a premium to HD day-and-date VOD pricing of $7.99 - $8.49 Minimum price of at least $9.99 (“Threshold Price”) is justified as this is an early window offering relative to HD day-and-date Options As long as the above requirements are met, SPE can be flexible in several areas Both PayPal and credit cards are acceptable forms of a cash equivalent payment SEL can offer SonyStyle cards / credits of any value; however, they must either (a) be redeemable for other Sony products or (b) only discount Hancock down to Threshold Price SEL can also promote offering as a [$19.99] “value” and discount to threshold price Cash Payment Requirement

6. 5 Overall Recommendations for Early VOD Window ParameterRecommendation Rationale Deemed Price[$19.99]  At premium to day-and-date; within “Home Theater” pricing range Discounting SPT to have approval rights over coupons / promotions (recommend no coupon on first offers)  A completely “free” offering (via a coupon or other promotion) would conflict with Starz deal  Value-added offers by distributor generally acceptable if SPT is made whole Viewing Period24 Hours  Viewing period longer than 24 hours would conflict with Starz deal Availability 4 weeks, prior to DVD/ Blu-ray window  Price and HD format are the primary drivers of consumer interest  Timing is less of a driver and 4 weeks early appears to be sufficient to generate interest and drive demand Duration2 Weeks  Retain ability to lengthen window  Allows for blackout period before DVD/Blu-ray release window Split Greater of 85% of the deemed or actual price  Increased percent split over current offerings is justified by increased revenue retained by distributor Timing Distributor to announce availability no earlier than +60 days from theatrical  Market practice to not announce VOD before announcing DVD street date Terms for the Bravia / BIVL test will set a market precedent and therefore must support SPT’s long-term interests with respect to an early VOD window Terms must not trigger existing Starz Pay TV or other PPV/VOD deals Under existing contracts, cable / MSO / DBS partners have a matching right for an “equivalent” early window test

7. 6 Hancock Windows 20082009 JulAugSeptOctNovDecJanFebMarAprMayJun Standard Hancock Windows Theatrical Release 7/2 Hotel 10/1  4/11 Home Ent. 11/11 PPV / VOD (30-45 days post DVD) 12/11 or 12/26  4/11 Starz (through 8/10/2010) 5/11  FX (starts 10/11/2010 – 10/10/2015) Early Hancock VOD Window VOD on BIVL (2 wks) 10/14 10/28 Starz Window 5/11  Proposed Early VOD to run for 2-week period between Oct 14-28, 2008 – VOD must be dark for the two weeks immediately preceding HE release (11/11/08) Early VOD window does not affect Starz window as long as it starts later than 9/11/08 – Starz is the earlier of 6 months from HE release date, 8 months from VOD, or 12 months from theatrical release

8. 7 Messaging Process SPE to have approval rights over the announcement SPE to preview the terms of the initiative with Starz in advance of the announcement and reserves the right to modify the terms or withdraw support based on its discussions At SPE’s discretion, the test maybe announced prior to the black-out period that extends 60 days from the theatrical release for standard distribution partners (announcement currently planned for June 26 th ) Message Elements Hancock will be the first blockbuster movie streamed directly to TVs and available in an early window Must address the quality and timing of this offer relative to the ultimate HD offering (Blu-ray) Blu-ray and theatrical trailer to run at the start of the stream Press release needs to clearly identify Hancock / BIVL as a test Release should not mention the name of any 3 rd party backend provider for hosting / e-commerce (e.g., PayPal)

9. 8 Next Steps and Other Issues Next Steps Finalize details regarding cash equivalent requirements with SEL SEL to verify mechanism to charge a cash equivalent (currently evaluating PayPal) Review early draft of announcement Discuss draft terms with Starz [date] Finalize internal approvals and announcement [date] Exclusivity Our ability to offer this exclusively on BIVL is based on our ability to position as a test and our partners’ inability to match our security requirements (i.e., they are unable to block their analog outputs)