1. Hancock on BIVL May 2008 DRAFT – PENDING SPE SR. MGMT REVIEW

2. 1 Executive Summary SPT has been asked to participate in an early window VOD test, making Hancock available exclusively on Sony Bravia TVs through the BIVL service This test provides SPT with an opportunity to achieve two goals –Support a Sony United initiative to generate market awareness for Bravia/BIVL –Establish market terms that support SPT’s efforts to launch an early window VOD offering with cable, MSO, and DBS partners We recommend moving forward with the test based on the following terms –Deemed Price: $19.99 –Viewing Period: 24 hour rental (streaming) –Availability: 4 weeks prior to DVD/Blu-ray street date –Length of window: 2 weeks –Split: The greater of 85% of the deemed price or actual retail price –Blu-ray: Promote availability of Hancock on Blu-ray at start of video stream –Theatrical: Include trailer for a SPE theatrical release at start of video stream –Backend: Preferred approach is to use Sony infrastructure; however, if outside services are required, name of 3 rd party provider should not be publicized

3. DRAFT – PENDING SPE SR. MGMT REVIEW 2 Pricing Magid Early Window Analysis Optimal day-and-date pricing is $7.99 to $8.49 per Oliver Wyman study Early window HD should clearly be at a premium to day & date Between $14.99 and $34.99, buy rates for HD early window are comparable to standard VOD at $3.99 (1-4% depending on title/genre) At this stage, HD early window test pricing should at least be in the mid-range of early window analysis (e.g., it’s too early to go low) We recommend a price point of $19.99 for the Hancock early window test Oliver Wyman Day-and-Date Analysis (1) Offer Price Incremental Revenue ($MM) Buy Rates Offer Price (1) Relative to 2006 actuals, HD day-and-date rental at $8.49 yields net increase of $375MM (10%) in SPE U.S. Studio Revenue Optimal at $8.49

4. DRAFT – PENDING SPE SR. MGMT REVIEW 3 Wholesale PricingFormatModelSplit $ to Service Provider $3.99Standard DefStandard VOD60/40$1.60 $4.99High DefStandard VOD70/30$1.50 $4.99Standard DefDay-and-Date VOD70/30$1.50 $7.99 -- $8.49High DefDay-and-Date VOD70/30$2.40 -- $2.55 $19.99High Def Bravia / BIVL Early Window (1 month early) 85/15$3.00 = Proposed pricing and split, no deals currently in place SEL would pay SPE on the same terms as MSOs and DBS partners Greater of 85% of the deemed or actual retail price is generally consistent with the $ value retained by service providers in the HD day-and-date window ($3.00 at $19.99 price point)

5. DRAFT – PENDING SPE SR. MGMT REVIEW 4 Recommendation SEL would offer a $25 Sony Style gift card with purchase of a new BIVL and a $25 e-mail code for existing BIVL owners [legal confirming that this does not conflict with Starz Pay TV deal] Benefits Creates compelling offer for BIVL customers Addresses infrastructure challenges (e.g., does not require PC or credit cards) Sets acceptable precedent for subsequent partner tests SPE Constraints Gift card can be used to purchase any Sony hardware / software or Hancock stream Gift card concept must not interfere with Starz contract For future tests, MSOs and other partners –Must pay SPE greater of 85% deemed or actual retail price –Are entitled to offer a premium to customers (e.g., one free month of HBO w/ purchase of early window stream) Gift Card Approach

6. DRAFT – PENDING SPE SR. MGMT REVIEW 5 Overall Recommendations for Early VOD Window ParameterRecommendation Rationale Deemed Price$19.99  At premium to day-and-date; within “Home Theater” pricing range Discounting SPT to have approval rights over coupons / promotions (recommend no coupon on first offers)  A completely “free” offering (via a coupon or other promotion) would conflict with Starz deal  Value-added offers by distributor generally acceptable if SPT is made whole Viewing Period24 Hours  Viewing period longer than 24 hours would conflict with Starz deal Availability 4 weeks, prior to DVD/ Blu-ray window  Price and HD format are the primary drivers of consumer interest  Timing is less of a driver and 4 weeks early appears to be sufficient to generate interest and drive demand Duration2 Weeks  Retain ability to lengthen window  Allows for blackout period before DVD/Blu-ray release window Split Greater of 85% of the deemed or actual price  Maintain same $ split for distributor as HD day-and-date window Timing Distributor to announce availability no earlier than +60 days from theatrical  Market practice to not announce VOD before announcing DVD street date Terms for the Bravia / BIVL test will set a market precedent and therefore must support SPT’s long-term interests with respect to an early VOD window Terms must not trigger existing Starz Pay TV or other PPV/VOD deals Under existing contracts, cable / MSO / DBS partners have a matching right for an “equivalent” early window test

7. DRAFT – PENDING SPE SR. MGMT REVIEW 6 Hancock Windows 20082009 JulAugSeptOctNovDecJanFebMarAprMayJun Standard Hancock Windows Theatrical Release 7/2 Hotel 10/1  4/11 Home Ent. 11/11 PPV / VOD (shortest time post-DVD; +30 days) 12/11  4/11 Starz (through 8/10/2010) 5/11  FX (starts 10/11/2010 – 10/10/2015) Early Hancock VOD Window VOD on BIVL (2 wks) 10/14 10/28 Starz Window 5/11  Proposed Early VOD to run for 2-week period between Oct 14-28, 2008 – VOD must be dark for the two weeks immediately preceding HE release (11/11/08) Early VOD window does not affect Starz as long as it starts later than 9/11/08 – Starz is the earlier of 6 months from HE release date, 8 months from VOD, or 12 months from theatrical release

8. DRAFT – PENDING SPE SR. MGMT REVIEW 7 Other Issues Messaging Hancock will be the first blockbuster movie streamed directly to TVs and available in an early window Must address the quality and timing of this offer relative to the ultimate HD offering (Blu-ray) Blu-ray and theatrical trailer to run at the start of the stream Press release needs to clearly identify Hancock / BIVL as a test SPT will contact its cable / MSO / DBS partners one week in advance of the release in order to minimize any potential backlash At SPE’s discretion, the test may be announced prior to the black-out period that extends 60 days from theatrical release for standard distribution partners (announcement currently planned for no earlier than June 25 th ) Release should not mention the name of any 3 rd party backend provider for hosting / e-commerce (e.g., PayPal) Exclusivity Our ability to offer this exclusively on BIVL is based on our ability to position as a test and our partners’ inability to match our security requirements (i.e., they are unable to block their analog outputs)