1. CONFIDENTIAL SPE Service Opportunities High-level Overview Draft

2. page 1 Traditional Studio Content and Distribution Businesses are Fragmenting Studio User Generated Games On-demand Linear Broadcast Cable Satellite IP Wireless Television PC Portable Media Player Game Console Mobile Phone Established Emerging Content ProductionDelivery InfrastructureContent ServicesPlayback Devices

3. page 2 Hypothesis for High Level Focus Areas Studio User Generated Games On-demand Linear Broadcast Cable Satellite IP Wireless Television PC Portable Media Player Game Console Mobile Phone Established Emerging Content ProductionDelivery InfrastructureContent ServicesPlayback Devices SPE Focus on Content and Adjacent Service Businesses Third Party Partnerships Sony Hardware

4. page 3 Growth Potential by Content and Service Type Studio User Generated Games Content ProductionContent Services 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Amateur: 2006: $X 2009: $X CAGR: X% “Prosumer” 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% 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, PC, and console games Considerations Initial estimates of market size complete Refining before including here

5. page 4 Hypothesis for Detailed SPE Focus Areas Original content production Repurpose library, archives, and stock footage Extensions of in-market properties User generated video (entry-level and “prosumer”) Third-party aggregated Branded/ad-based ContentOwned Services Ad Sales Syndicated digital video service for online affiliates, offering: –Programming of original SPE content and 3 rd party aggregated content –Technology (video player, server) –Bundled ad sales TV affiliate web sites as early customer base Business-facing Grouper for user generated video Grouper / Backlot for “prosumer” video Grouper and/or new services for ad-supported premium content Grouper and/or new services for sell-through premium content Consumer-facing Advertiser driven content –New forms of short, tailored ads –Sponsor contests for user created ads Ad sales for affiliates Online ads pre-sold against syndicated online channels Ads sold against Grouper & other owned inventory Allow advertisers to target ads; track impressions