1. CONFIDENTIAL SPE Service Opportunities Draft 2

2. page 1 Emerging Media Landscape Spans Content Production, Services, Delivery and Playback Devices

3. page 2 SPE Should Continue to Leverage Sony Hardware Groups for Devices and Third Party Partners for Content Delivery Third Party Partnerships Sony Hardware Traditional Focus Area

4. page 3 Emerging Forms of Content and Services Create New Growth Opportunities for SPE 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% N/A 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% ConsiderationsRecommended Investment Areas Nascent market with early signs of potential –Current / Yahoo! as early entrants –No dominant player in place Large, established market with limited growth potential No established market, questionable potential Early stage with significant growth –Investment focus for studios –Early validation for advertising opportunities Early stage with significant growth –Infrastructure now in place –User adoption accelerating Continued growth opportunities –Mobile games –Streamed and downloaded for PC –IP delivery to PS3 and XBOX Amateur: “Prosumer” Content –Studio-produced short form and user generated video Services –On-demand services across content types –Linear services for user generated video Advertising –Staff and infrastructure to monetize new services through ad sales

5. page 4 Areas of Analysis ContentAdvertisingService Evaluate new forms of digital content to be developed by SPE –Short-form –Mobile Recommend organizational approach to content digital production –Business Unit responsibilities –Budgeting and green light process Identify opportunities to re- purpose user generated (prosumer) content –Process to identify best content –Economics of user revenue sharing TBDAnalyze and recommend ad sales organizational structure –Dedicated new media ad sales team –International team Assess needs for new infrastructure for digital ad sales –Ad insertion –Ad server –Geo-filtering Identify new forms of ads tailored to emerging services –Interactive advertisements –User generated ads