1. Mission To present entertainment that helps young people become better human beings – by changing the world; by making important positive, lasting, broad, global social changes To support mission – by producing entertainment that makes a difference in the lives of young people. Multi-platform delivery of meaningful content

2. Meaningful Content Secret Life of Words Mighty Joe Young North Country American Blackout Amazing Grace Paradise Now Shut Up & Sing Sweet Mother Tour An Inconvenient Truth Bulworth The Daily Show Fast Food Nation Half Nelson Girl in the Café

3. Objectives: by 2010 Create the premier brand for socially relevant films & music Develop or produce 10 films per year Develop or sponsor 10 albums per year Produce 1 TV series per year Produce 100 webisodes concurrently Net $10M

4. Scope of SLE Entertainment Entertain ArtMediaEducateActivate

5. Scope of SLE ProfessionalStarsRepeatableCongregateParticipateAmateurReal peopleUniqueIsolateObserve

6. Scope of SLE ArtHeadEmotionCraftBodyIntellect

7. Scope of SLE Craft Enter tain ment Enter tain Activ ate Repe atabl e Obse rve Profe ssion al Cong regat e Ment al Emot ions Art Medi a Educ ate Uniq ue Parti cipat e Amat eur Isolat e Physi cal Intell ect IN Films Television Music Dance Theater Live performance Web television Multimedia + Live events Circus OUT Sports Games RPG Home video 2D or 3D visual art Books Educational media Video games Comic books

8. Our Audience US teen boysUS young adults Global young adultsUS teen girls Global Youth

9. Strategy: Content Development Participant Productions model – Develop in-house with outside collaborators – Star-driven – Meaningful content both fiction & non-fiction – Distribution through major channels Co-branded model – Partner to promote externally-produced content

10. Strategy: Entertainment 2.0 What is Entertainment 2.0 – Agile – Participatory – On demand – Searchable – Simultaneous mult-platform – Mashups – Viewer-influenced stories

11. Strategy: Cross-Platform Brand Penetration Content available across all SL platforms – Original venues – SL Metaverse – SL Lounges / Discovernauts – Licensed merchandise – SL Sports – SL Games – SL House parties/ Action Centers – SL marches, events, rallies, mobilizations – SL Educational media Challenge youth to excel

12. Strategy: Revenue Portfolio of products – Balance risk Cross-merchandise with other SL Divisions Focus on revenue from sale of content Secondary revenue streams

13. Focus of Media Projects By youth Young writers & directors About youth Stories about young people For youth Messages targeted at young people, even though the performers may be adults

14. Matrix of Products FictionalNon-fictionParticipatory Big ScreenExperimentalDocumentary Little ScreenNarrativeReality TV Mobile ScreenFlexibleMobile doc 3 rd ScreenFlexibleConcert video Face-to-FaceLive + Film Film + Art Live + Art Music + Theater Spoken Word

15. Consumer spending Size of total market Spend by segment Spend by product type

16. Revenue Streams Sale of content-primary distribution Sale of content-ancillary distribution Participatory revenue Advertising & placement Licensing Cross-merchandising with other SL platforms

17. Revenue Streams: Sale of Content through Primary Distribution Channel Film box office, US & International Original network (or cable) broadcast Original webcast access fees Performance tickets, US & International

18. Revenue Streams: Sale of Content through Ancillary Distribution Channels DVD CD Memory sticks Download Network & cable re-sale Subsidiary markets

19. Revenue Streams: Participatory Revenue Text to vote Online participation fee Real-world participation fee Competitions License to mashup (on SL Metaverse)

20. Revenue Streams: Advertising & Placement. “Campaign Placement” Web CPM Web graphic ads Mailers Film product placement Musician/performer logo wear Musician /performer endorsements – Presupposes star value – Television – Billboards – Radio

21. Revenue Streams: Licensing Presupposes stars or franchises Toys Action figures Games Lunchboxes Clothing & accessories Cell phone accessories Pet accessories Recycling tools-can smashers, sorters

22. Partners Current TV Participant Productions See Jane NAMAC Etc.