1. Digital Networks Strategy and Ad Sales Discussion August 2007

2. 2 Traditional TV Networks Grabbing Digital Real Estate Traditional Networks are expanding into digital Leveraging assets to create digital versions and new brands Fully programmed experiences, predominantly long form Locking up prime placement on Digital MSO’s Locking up scarce sub fees and MGs from Digital MSO’s Traditional TV Networks Digital Networks Digital MSOs

3. 3 “Traditional” Content Aggregators Two Types of Digital MSOs are Emerging Next-Gen / UGV-Driven Aggregators Mostly programmed digital networks with established, professionally created content EPG-like experience, typically organized by genre, and network brands drive navigation Mostly short form, UGV Some professional content, but mostly one-off or limited series Navigation more discovery driven and viral (Comedy vs. Comedy Central) User-involved (e.g. community posting, voting)

4. 4 Content Without Digital Networks, SPT Loses Influence and Revenue Distribution Advertising Traditional networks aggressively build online & mobile audiences, replicating position & distribution advantage in the digital world Difficult to secure real estate on digital MSOs for SPT’s a la carte content, with limited spots available in digital MSO tiers Digital MSOs increasingly dictate business models and product development without SPT input SPT content continues to build and benefit other parties’ networks, replicating the current creation-distribution ecosystem Talent, seeking multi-platform exposure and marketing of productions, turns elsewhere Opportunity cost to not making library available online Source: Adams Media Research, 2007 TV: $568 m Music Video: $447 m News & Sports: $433 m Other: $145 m UGV: $137 m Ad dollars shifting from traditional TV to online By 2011, TV content captures largest share of online ad spending:

5. 5 Strategy: Create Digital Networks to Address Digital Landscape Why Digital Networks? Generate Revenue Build Assets Capture share of developing revenue streams (IP and mobile) Unlock and monetize SPT’s vast library Give SPT seat at table to shape digital products and business models Create program franchises with follow-on windows (e.g. DVD, Direct to Mobile) Establish 21 st century network / distribution assets for SPT Build foundation for SPTAS to bring-in new partners and expand lines of business Provide long-term distribution leverage for SPT content Provide outlets for new content and talent

6. 6 Current Strategy Tailored to Meet Budget Requirements DistributionBudget No net investment in digital networks in FY2008 –Breakeven to positive cash flow in year 1 Minimal incremental headcount Limited marketing and music clearance allocations Content Rely heavily on library Targeted slate of original programming using high-end and pre-screened talent Selective music clearance Distribute and build awareness through partners’ large, built-in audiences before attempting to drive traffic to SPT sites Multi-platform approach: broadband and mobile Networks Limit number and scope of networks to manageable level Build brands on back of content and partners’ traffic

7. 7 Four Networks Will Activate SPT’s Multi-Billion Dollar Library* Your favorite feature length, contemporary classic films across all major genres: comedy, action, drama, family, sci-fi and cult Episodes from the heyday of sit-coms Outrageous shorts and busted pilots Originals by contemporary comedians SPT’s “middle tail” content is hard to find Deep classic comedy library Demand for short form, original comedy exploding online Classic hard-hitting action TV series and original takes on today’s favorite action movies and stars Deep action-themed library SPE relationships with celebrity action stars and film franchises Key young male action demo also early adopter of digital tech- nology SPE’s 3,500+ feature library What: 2 Popular Genres, 2 Popular Formats Why: We matched our assets with market demand Favorite retro TV shows told in in 4-6 minute “minisodes” Extensive library of much-loved shows Format appeals to today’s “bite sized” video consumption Edited to meet the demo’s ironic, camp sensibility Popular TV format (Turner, USA, AMC, etc.) embraced by audiences but not yet translated to digital *Five including SPT’s investment in FearNet and SPT Mobile’s distribution of FearNet Mobile

8. 8 Digital Networks and Crackle Complete SPT’s Offering Distribution Networks are syndicated to digital “MSOs” (e.g., Joost, AOL, MySpace, Yahoo, MSN) in their player/environment Distribution Crackle’s website and Crackle player central to the strategy Originals Original programming is more linear in nature, uses high-end talent and is professionally selected and produced Originals Short-form programming is largely meant to spur UGV development for the purposes of individual exposure / fame Content - selection Content is all pre- screened for quality (like a network) – an “upfront” mentality where we are the buyer Content - selection Editorial and user-based rankings of content drive pyramid Library play Original programming will also appear on Grouper User involvement play User involvement occurs on and is enabled by Grouper

9. 9 Programming Philosophy Based on 4 Building Blocks Acquisition Original Production Library New Shows Star-Driven Branded Ent. Traffic Creating New Access SPE Film SPT TV Prosumer Short & long form Credence Walker WTF with Penn Jillette Busted Pilots Short-Lived Series

10. 10 The Minisode Network Programming* Currently Playing Coming Soon *Minisode Network cross-programmed with AXN and FunnyBone to drive additional viewing

11. 11 Screening Room Programming Men in Black Men in Black II Ghostbusters Bruce Lee’s Secret Godzilla vs. Destroyer Godzilla vs. Space Godzilla Mothra Rebirth of Mothra The 7th Voyage of Sinbad The Blob The Golden Voyage of Sinbad Starman Black Dragon Journey to the Center of Earth Underworld Evolution The Howling Mary Shelley’s Frankenstein Swept Away Urban Legends Cup-a-JoeLunch CrunchAfternoon SnackDrive ThruOpen All Night Men in Black Men in Black II Ghostbusters My Best Friend’s Wedding Groundhog Day Sleepless in Seattle Tootsie Fools Rush In Manhattan Murder Mystery High School High Multiplicity Blind Date Jury Duty Just One of the Guys Krull Real Genius The Adventures of Baron Munchausen The Freshman The Toy Anaconda As Good As It Gets Close Encounters of the 3rd Kind Air Force One The Fifth Element The Net The Cable Guy Ghostbusters 2 Ultraviolet The Freshman In the Line of Fire Taxi Driver Wild Things Something’s Gotta Give Adaptation Deuce Biglow: European Gigolo Donnie Darko Slackers The Karate Kid Series Annie Baby Geniuses Look Who’s Talking Too Muppets from Space My Girl 2 Short Circuit Groundhog Day Soccer Dog The Indian in the Cupboard The Muppets Take Manhattan Last Action Hero Brian’s Song Fly Away Home Bingo The Adventures of Baron Munchausen High School High Philadelphia The Natural On the Waterfront Laurence of Arabia Awakenings Anatomy of a Murder Gandhi La Bamba The Buddy Holly Story The Remains of the Day A Passage to India My Best Friend’s Wedding Sleepless in Seattle Tootsie Manhattan Murder Mystery Easy Rider The Fisher King The Last Picture Show Closer In the Cut Classic comedy and lighter action films targeting the morning commuter and those viewers looking to ease into their day Re-fuel with a shot of adrenaline through edgier comedy and action movies Out and about with the kids? Drop in and allow the whole family to snack on feel-good films that keep everyone engaged Get wrapped up in other people’s wrenching and gripping lives – a block of classic dramas While others sleep, become engulfed by the endless possibilities contained in our unique cult/sci-fi classics

12. 12 FunnyBone Programming Original Production & Acquisition Library WTF with Penn Jillette Gaytown Hobo Joe & Big Head

13. 13 AXN Programming Original Production & Acquisition Library Credence Walker

14. 14 Distribution Philosophy Network Distribution ApproachPartners D2C OnlineMobile OnlineMobile Portals / Aggregators Syndicators Social Networks Virtual Worlds Carriers Non-Carrier Aggregators Other MSOs & IPTV SCE: PS3, PSP SEL: Bravia, VAIO Vertical sites Originals sites WAP Application Text

15. 15 Review of Networks to Date We have only made a limited number of shows available on FunnyBone and AXN FunnyBone: NewsRadio, Who’s the Boss, Action, Lenore AXN: Charlie’s Angels, Starsky & Hutch, SWAT, Animated Spider-Man, Astro Boy Strong placement + limited programming + no brand recognition = limited traffic Minisodes launch more indicative of go-forward plan Wide selection of shows Dedicated marketing support Broad cross-platform rollout We are dramatically increasing the number of classic shows available on each network FunnyBone: Bewitched, Diff’rent Strokes, What’s Happening, Benson, I Dream of Jeannie, Married with Children, Muddling Through, Dana Carvey Show, Great Scott, The Partridge Family, The Tick, Barney Miller, Over the Top, What’s Happening Now AXN: Fantasy Island, Forever Knight, Hart to Hart, Hex, Police Woman, Sledge Hammer, The Rookies, Kidnapped We will cross-program Minisodes with FunnyBone and AXN across common outlets in the expanded Minisode launch We will begin to add original programming to the networks FunnyBone: WTF Penn, Gaytown, Groundlings AXN: Action Theater, Afterworld

16. 16 Issues / Topics Adding dedicated personnel to expand our Networks All Original Programming now MUST support one of SPT’s Digital Networks Many Original Programs will be dually located on Networks WTF Penn on FunnyBone and Crackle We will have multiple Networks on common distribution outlets FunnyBone, AXN and Minisodes on AOL / Joost We will launch direct.com sites for the Networks (minisodenetwork.com will be first) We will expand the Networks to mobile Source: Adams Media Research, 2007

17. 17 Issues / Topics What to do with current channels on AOL and Joost? Sell the SPT Digital Network? Can we leverage the MInisode launch to sell ads and/or sponsorships across all of the Networks? Add FunnyBone, etc to overall Crackle packages? Do we want to let AOL and/or Joost sell until we have more traffic? Is there a remnant-type deal (e.g., advertising.com) that makes sense? What can we collectively do to help / expand / improve Additional IP outlets to discuss Expanded Minisodes distribution AOL, Joost, Yahoo, YouTube GAIA Deal FunnyBone, AXN, Minisodes and Screening Room (Launching 10/1) Screening Room on Yahoo! Inventory that may work? Source: Adams Media Research, 2007

18. 18 Issues / Topics Mobile Advertising Current Deal Strategy (e.g., secure rights for future) Limited current inventory but will become much more significant in near future Can we include in larger IP packages? Technologies to support business? Specific Opportunities Off deck - Minisodes WAP Minisodes, FunnyBone and Crackle on Verizon Wireless Screening Room, Crackle on Cingular Screening Room, Crackle on Sprint Source: Adams Media Research, 2007

19. 19 Online Partners PartnerRationaleStatus AXN, FunnyBone Live Minisodes (Q2) Early leader in online video in a content owner- friendly branded environment; heavily-trafficked Minisodes Live Others TBD FunnyBone, AXN, Minisodes Theaters (Q2) Screening Room and Minisodes in (Q2-Q3) Opportunistically Groundbreaking online TV platform with lots of buzz and an ad-friendly business model #3 in video streams, #2 in unique streamers, instant viral “citizen syndication” platform Heavily-trafficked virtual world with Chat Cinema functionality #2 in video streams #1 in unique video streamers and minutes viewed Portfolio approach to catching the next hot Internet video startups Close competitor to Joost with an attractive interface and greater focus on niche, long tail & original programming AXN, FunnyBone Live Minisodes (Q2) Heavily-trafficked parent site with growing branded video opportunities and expanding ad networks Minisodes (Q2) Others TBD FunnyBone, AXN, Minisodes (Q3-Q4) TBD

20. 20 Mobile Partners PartnerRationaleStatus Screening Room (Q2-Q3) Minisodes, AXN (Q2-Q3) Screening Room, MinisodesF(Q3-Q4) FQ4 TBD FQ4 Leading mobile video application provider allows for D2C offering without carrier. Provider of MediaFLO service cross-carriers, seeking additional network. Subscriber base open to mix of business models: subscription, transaction and advertiser. Open to differentiated video offerings, especially originals. Current mobile video partner with SPT’s Inside Sony Pictures and Sprint Movies services. Market leading mobile video provider: first to market with V-CAST and MediaFLO and the most video subs. Cross-platform opportunity with FiOS. Most mobile subscribers. Have expressed interest in SPT programming for CV and MediaFLO platforms. Cross-platform opportunity with U-verse.

21. 21 Other Partners: PartnerRationaleTiming Q3-Q4 Q2-Q3 Opportunistically Other OEM Partners Playstation installed base large and growing; SCE looking to provide networked video services to users Differentiate on-demand IPTV content offering. Cross-platform opportunity with AT&T Wireless. BIVL offering provides direct route for SPT online video offerings to the living room TV OEM partners looking to differentiate media-focused hardware with content Differentiate on-demand IPTV content offering. Cross-platform opportunity with Verizon Wireless.