1. Sony Pictures Entertainment and Sony Network Entertainment: Project Update: Crackle Plus February 13, 2012

2. Crackle Plus Goals and Business Model 1 The Sony Experience Hardware Services Purpose / Considerations Economics Acquire customers Free; low barrier to trial/adoption Programmed experience focused on men 18-34 Primarily an investment Limited ad revenue Not profitable on standalone basis Retain customers Monetize customers Increases in service and hardware revenue ultimately offset Crackle Plus investment, albeit likely not in 1 st year

3. Crackle Today 2 Today The “Plus” in Crackle Plus can be one of several types of content Films ~200 library titles 2-3 year-old driver titles in the network window refreshed monthly Television ~1,800 full-length and short-form television episodes >40 original series featuring notable talent Reach 10MM+ monthly unique users across all platforms 10MM+ Crackle app downloads in 6 months TV Originals Off-Net TV Series Recent Films Crackle is a fully programmed and widely available service today

4. Crackle Plus Cost Considerations 3 Original Content Films Off- Network TV Behind the scenes, concerts, value- added content etc. Scripted, half-hour (i.e., web series) Scripted, one hour drama (i.e, TV quality) Library titles; non-exclusive Network window titles (i.e., 2-3 years old); non-exclusive Network window titles (i.e., 2-3 years old); exclusive Partial rights (e.g. AVOD); non-exclusive Partial rights (e.g., AVOD); exclusive Full off-network rights (except vis-à-vis commissioning network); exclusive $ $$ $$$ As Discussed Previously Additional Identified Opportunities

5. Crackle Plus Recommended Programming Mix 4 Behind the scenes, concerts, value- added content etc. 1 half-hour scripted dramedy, 13 eps 2 one hour drama series, 13 eps each ~100 non-exclusive library titles 15 exclusive network window titles 2 exclusive series on AVOD (perhaps SVOD as well) Note: Above is incremental to existing Crackle service. Original Content Films Off- Network TV As Discussed Previously Additional Identified Opportunities $ $$ $$$

6. 5 Original Series Assumptions Series TimingBudget Comparables (1) (1) Budget comparables represent season 1 production costs, net of any incentives, for all included titles. Source: product ultimates.

7. 6 Examples of “Driver” and Library Titles “Driver Titles”High Profile Library Titles Note: Representative titles only and subject to availability once licensing discussions commence. $ $$$ 100 lower cost non-exclusive library titles will bolster current Crackle offering 15 higher cost exclusive network-window titles will drive traffic for the enhanced service

8. 7 Off-Net TV Opportunities

9. 8 Windows for Television Content Early Years Later Years Linear Rights AVOD SVOD Licensed to a second network (e.g., TBS) and/or for broadcast syndication Linear Rights Sometimes split, with some eps to second network and some held back AVOD May or may not be licensed to a digital player (e.g., Netflix) SVOD Licensing all or a subset of these rights represents an opportunity for SEN On commissioning network (e.g. NBC) Limited number of episodes on commissioning network’s site (e.g. NBC, Hulu) Generally not made available Current Seasons Past Seasons Off-Net

10. SPT Off-Net Avails, Costs and Considerations 9 $ $$ $$$ Crackle already leverages partial, non-exclusive rights (e.g., Seinfeld) and could supplement with additional, recognizable titles (e.g., Rescue Me) at a relatively low cost Partial, exclusive rights (e.g., Boondocks, The Shield) are also available and can likely be accommodated in budget as previously presented Opportunity to buy full series, off-network rights (e.g., Justified) requires increased investment and is a decision for future years Title # of Eps at Avail Date (1) Avail Date Rights Partial rights; non-exclusive Partial rights (e.g. exclusive AVOD or narrow windows); exclusive Full off-net rights, including Linear, SVOD, AVOD; exclusive JustifiedHappy Endings 6575+ Q1CY2014Q3CY2014 Boondocks (2) The Shield (3) 4380+ Immediate (1)Note: Episode counts at date of availability represents estimate for early season titles. (2)Exclusive digital / on-demand rights subject to Turner approval; Turner would still retain linear rights. (3)Creates de facto exclusive against all rights if Spike does not air on linear network. 10 on Crackle today 18093 Immediate SeinfeldCommunityRescue Me 5 on Crackle starting 2015

11. 10 Additional Opportunities SPE can also explore opportunities around content under license, including: −TV shows that are in early seasons (e.g., Justified) and/or shows that have recently been licensed off-net (e.g., Breaking Bad) −Films before or as they enter the Pay TV window These opportunities require engaging with current licensees (e.g., Netflix for Breaking Bad, FX for Justified and Starz for films in the Pay window) If current licensees are interested, securing rights for SEN would require an investment in buying- back rights Films TV Shows

12. 11 Budget Considerations

13. 12 The investment levels presented here are based on the initial recommendation for Crackle Plus, inclusive of original series The initial investment can be decreased if the investment in originals is decreased or deferred The budget can also be adjusted up or down to pursue the other content opportunities recently presented In addition to discussing the investment level, we should discuss the resulting benefit to SNEI, SCEI, and CPSG

14. 13 ($MM)FYE13 Revenue SPE Incremental Revenue$6 Gross Investment Content($55) Headcount/Tech(7) Sub-total($62) Net Investment in SNEI and SPE Budgets($56) Marketing(15) Total Sony Investment($71) ($MM)FYE14 Revenue SPE International Sales$18 SPE Ad Revenue4 Sub-total$22 Gross Investment Content($88) Headcount/Tech(13) Sub-total($101) Net Investment in SNEI and SPE Budgets($79) Marketing(30) Total Sony Investment($109) $56MM investment to be incorporated in SNEI and SPE budgets as described on the next page SNEI and SPE anticipated budget impact excludes $15MM of marketing Need to discuss alternatives for addressing marketing, either as a dedicated Corporate effort, shared across Hardware and Service divisions, or housed in a single division To be mitigated by benefits not yet quantified including: ‒ New customer acquisition ‒ Service revenue per user uplift ‒ Hardware sales growth FYE13: Partial YearFYE14: Full Year Crackle Plus Economics

15. 14 Economics would be incorporated in SPE and SNEI FYE13 budget submissions; specifics being resolved but preliminary proposal is: SNEI Pays SPE a flat fee equal to estimated content costs less estimated ancillary revenues (e.g., international, video etc.) and also bears bandwidth, data center and cloud costs Retains uplift in service revenues FYE13 SNEI budget impact of this approach being finalized; currently estimated to be ($50MM) SPE Responsible for its own investment in headcount and infrastructure Retains ad revenue Bears actual content cost and execution risk on ancillary revenue opportunities FYE13 SPE budget impact of this approach being finalized; currently estimated to be ($6MM) Note: Above are SNEI and SPE specific budget impacts and are before the recommended $15MM of marketing. Need to discuss approach to marketing. Crackle Plus Budget Impact

16. Note: Consolidated Sony impact assumes elimination of license fee revenue for SPE and license fee expense for SNE Assumptions: (1)FY13 includes production costs for 19 episodes (1 entire series and half a season of second series and 70% of international revenue only of first series) (2)FY14 represents “steady-state” 39 episodes and captures production costs and associated revenue for all 3 series (2 one hour dramas and 1 half hour dramedy - each 13 episodes) Consolidated Sony View 15