1. 1 SONY PICTURES ENTERTAINMENT WORLDWIDE THEATRICAL RESEARCH Capabilities & Methodologies By: David Kaminow - EVP, Marketing & Research

2. 2 WORLDWIDE RESEARCH OVERVIEW  Research Philosophy at SPE  Research Process at SPE  Current Types of Research/Methods Conducted/Utilized by SPE  US and International Tracking overview

3. 3 SPE RESEARCH PHILOSOPHY  Movie market research is really its own unique entity in the research arena. It is specifically geared towards a business that needs accurate answers quickly, efficiently, with a sense of projectibility and the utmost confidentiality. In turn…  Research should be seen and used as a tool, in conjunction with other information, to direct, inform and enhance your decision- making process.

4. 4 SPE RESEARCH PROCESS  The SPE Worldwide Research Group works with essentially all operating divisions of the company, including:  Creative Advertising  Development/Production  International Marketing  Media  Distribution  On-line / Digital Marketing  Publicity  Promotions  Consumer Products  Licensing & Merchandising  Home Entertainment

5. 5 TYPES OF RESEARCH/ METHODS  Market Positioning Studies  Property / Franchise / Brand Studies  Recruited Audience Screenings  Trailer Testing  Ad Testing  TV  Print  Focus Groups  Pre-release Tracking  Post-release Exit Polls

6. 6 MARKET POSITIONING STUDIES Quantitative* Study: (By telephone or in-person “intercept”)  This research is conducted early in the marketing cycle, before any other testing is done, in order to guide marketing strategy and to provide direction for the development of the marketing materials.  Moviegoers are questioned on various movie content/story elements (including cast, director, concept, genres, F/X, title, etc.)  Results are then analyzed to determine the ideal positioning combination: What is the central storyline that has the best appeal to the widest demographic? What subplots and themes should be emphasized or avoided? * Based on a nationally representative sample of 800+ moviegoers

7. 7 FRANCHISE / BRAND STUDIES  Can be quantitative (by telephone or in- person “intercept”) or qualitative (focus group) in nature.  Utilized to determine the “health” of our franchise films (i.e. Spider-Man and 007) or brand projects (i.e. movies based on Dan Brown’s books) and to gauge “want-to-see” interest in the next installment.  Useful in determining the core fan base, as well as recognizing secondary and tertiary audience targets.

8. 8  Initial screenings get fairly wide demographic profiles to see where our strengths exist.  Subsequent screenings and/or certain titles may be more targeted.  The audience, utilizing questionnaires, rates the movie on a variety of measures including:  overall rating  recommendation  elements of the film such as the beginning, ending, story, cast/acting, music, pacing  most/least liked scenes.  The results of the screening help “fine-tune” who the target audience is for the movie and provide insights to aid in the creative campaign. RECRUITED AUDIENCE SCREENINGS

9. 9 TRAILER TESTING  Conducted via “in-person intercept methodology” (usually in shopping malls) or on-line with a nationally representative sample of 300 moviegoers, to assess just how effective a trailer is at increasing the audience’s “interest” in seeing the movie.  The results are used to pinpoint themes, elements and scenes that have the strongest recall/affinity among the target audience.  For the US market, the goal is to have a trailer that generates in the range of 55-65% “definite interest” and about 80% “positive interest” in seeing the movie. Internationally, “definite interest” should be 30-40% and 60-70% “positive interest.”

10. 10 TV SPOT TESTING  Tested among a nationally representative sample of 300 moviegoers per spot.  The results are used to pinpoint themes, elements and scenes that have the strongest recall/affinity among the target audience.  The testing results allow you to segment out by age (under and over 25) and gender to maximize the effectiveness of both the creative campaign and the media buy. The media group can then set out to specifically target programming.  The ideal for TV test scores for the US market is about 55-65% “definite interest” and about 70- 80% “positive interest”. Internationally “definite interest” should be 25-30%, with “positive interest” ideally reaching 55-60%.

11. 11 PRINT TESTING  Least common form of research conducted. Posters are extremely subjective, and studies have shown that the theatrical poster holds less influence over moviegoers’ decision-making process than A/V materials or publicity.  Conducted among a nationally representative sample of about 300 moviegoers via in-person intercept (usually in shopping malls) or on-line.  The goal is to determine which of a number of executions best communicates/sells the concept of the movie and also generates the most interest in seeing the movie.

12. 12 FOCUS GROUPS  The ideal compliment to traditional quantitative research.  Conducted to show/review marketing materials in the early, developmental stages.  Identifies various movie elements that appeal, or do not appeal to the target audience. It is ultimately used to fine tune marketing communications to the target audiences.

13. 13 PRE-RELEASE TRACKING  In the US, tracking is conducted 3 times per week (Sunday, Wednesday, and Thursday).  Supplemental tracking can be conducted among specific groups (family audience, African-American, Hispanic) to determine awareness and interest among these targeted groups.  A movie appears on tracking 3 1/2 weeks prior to the scheduled release date. A movie only qualifies if it is receiving a “wide” release (600+ theaters in the US).

14. 14 PRE-RELEASE TRACKING  Moviegoers are questioned on “unaided awareness,” “aided awareness,” “interest” in seeing a movie, and “first choice” among movies that are/or will (that weekend) be out in the marketplace.  Awareness, interest and first choice numbers are analyzed by audience segment (e.g., males/females under 25, males/females 25 & over) to determine if the marketing message is reaching the targeted audience segment.  US opening weekend “norms” for unaided awareness are 12%, total awareness 77%, definite interest 40% and first choice 12%.  Tracking and box-office projections: what is the connection?

15. 15 INTERNATIONAL ON-LINE TRACKING  Current territories in operation  Germany  UK  Australia  France  Spain  Mexico  Italy  Japan  Proposed additional territories  Russia

16. 16 METHODOLOGY  Panel-based sample  Dedicated panel for each territory  Recruited strictly from random sources  Opinion Points with prize incentives for participation  Respondents invited via e-mail to complete survey online  Sony owns the panels, and has proprietary rights, for every tracking territory except Japan.  A movie appears on tracking 4 weeks pre- release.

17. 17 METHODOLOGY  On-line survey  Questionnaire similar to industry-wide, domestic tracking with some custom additions (such as Source of Awareness)  Interviews: 400 – Japan 600.  Frequency: Weekly  Gender: 50/50 Male/Female  Ages: 13-49

18. 18 METHODOLOGY  Report delivery  Password protected on-line based system  Available in HTML, PDF, or Excel format  Other services  Tack-on/Pulse Checks  Family Tracking  Comparative Tracking Reports  Poster testing using proprietary panel members

19. 19 EXIT POLLS  Usually conducted the first weekend a movie opens, in any territory around the world.  Utilized to determine the audience composition on opening weekend, and to evaluate playability among key audience segments.  Aid in further targeting the marketing message for “post-open” media planning by evaluating the various channels of communication that worked best for each audience segment.  Provided to the home entertainment division to help determine what may be effective positioning and audience profiles for the VHS/DVD release.