Privileged and Confidential Sony Pictures Entertainment and Sony Network Entertainment: Strengthening and Differentiating the Sony Entertainment Network January 2012

Privileged and Confidential 1 Our goal is to take advantage of Sony’s common ownership of entertainment, networked devices, and network platform assets to differentiate Sony’s products and services We’ve agreed on key points of differentiation We’ve identified three initiatives that will help achieve this differentiation –Unique transactional models that include an exclusive “PVOD with ownership” offering for SPE films –Launch a free-to-consumer programmed video service (Crackle Plus) on Sony platforms with exclusive originals to drive usage –Marketing and cross-promotional opportunities to drive traffic, several of which are in progress PlayStation’s capabilities and footprint will make it a central focus of a 2012 launch of these initiatives Agreeing how best to coordinate with Sony Computer Entertainment is a key next step Executive Summary

Privileged and Confidential We seek to better differentiate SEN, drive brand awareness and attract customers through: –Programming: a carefully selected base of content that is regularly updated and targets the right demographic –Exclusive content: original and exclusively licensed (both from SPE and 3 rd parties) –Early access to content –Low barrier to adoption: include content that is free and encourages initial trial –Ease-of-use: differentiated user interface with powerful easy search functionality that cuts across: Content type: video, music, games Business models: purchase, rental, ad supported / free –Leveraging SPE’s creative experience and talent in marketing to this demographic Agreed Desired Points of Differentiation SPE and SNEI have identified a range of opportunities to drive these points of differentiation 2

Privileged and Confidential Unique Transactional Models –SEN as exclusive launch partner for a new “PVOD with ownership” model –Offering to launch in summer 2012 Free to consumer originals and exclusives: Crackle Plus service with content exclusively available to Sony customers on a free basis –Ad-supported / free-to-consumer to attract largest audience; should incorporate in hardware marketing (i.e., “Only on Sony”) –Develop slate of original content: “TV quality” series –License exclusive film avails (i.e., recent and library titles) –Integrated with and driving up-sell to SEN’s paid services –Initial U.S.-only launch with later international expansion Marketing and Promotional Content: Leverage SPE marketing and existing base of content –SEN branding / messaging on SPE platforms (i.e., theatrical, home entertainment, TV) –Early / exclusive access to red band / extended trailers and DVD extras High-level Summary of Initiatives 3

Unique Transactional Models

Privileged and Confidential Exclusive “PVOD with Ownership” Product Concept 5 2-day rental of hit films such as MIB 3 streamed to a Sony connected device (e.g., PlayStation) for approximately $25 (1) ; available roughly (1) days after theatrical debut and/or (1) days before the DVD is released Digital copy automatically populates personal UltraViolet locker roughly 2 weeks prior to DVD release at no additional cost (1) Pricing under discussion, PVOD availability may vary by title.

Privileged and Confidential Program Specifics (US only) Consumer Model Proposed SPE Titles SEN Exclusivity PVOD rental + UV ownership bundle Pirates, MIB 3, I Hate You Dad*, Amazing Spider-Man, Total Recall Pirates, MIB 3, I Hate You Dad (1), Amazing Spider-Man (Total Recall non-exclusive) Other distributors would not have access to PVOD / UV bundle prior to Total Recall SEN Requirements Forensic watermarking for Total Recall only (i.e., watermark forbearance on first 4 titles to accelerate time-to-market) Support for “lite” UV at launch Support for “robust” UV by October SEN Windows days after theatrical and/or days before DVD for PVOD window; specifics under discussion and TBD by title 2 weeks before DVD for UV (i.e., digitally delivered ownership copy at no extra cost) (1) Title under review pending discussions with producers.

Privileged and Confidential

Video experiences optimized for the Sony networked device audience Free service creates largest user base and “out of the box” premium content experience Integrated upsell to PSN, PlayStation Plus, Video/Music unlimited (no 3 rd party services can do this) Highly curated experience run by experts who Program target audiences worldwide Premium TV caliber original series to differentiate the network 8

Privileged and Confidential Curated Content Original Shows Music and Live Events Inside Looks The service offers a selection of premium movies with exclusive content and TV quality original series Behind the scenes, movie and pilot premieres, new game releases, and coverage of most relevant pop culture gatherings (e.g., Comic-Con, E3, SxSW) Live concerts, music festivals, unplugged sessions with artists, “secret” shows 2-3 TV caliber series annually that leverage existing and related IP (e.g., PlayStation games) or build new IP for the company Differentiated and premium series to attract and engage consumers on a regular basis Leverage short avails of 2-3 year old movies in the Network window (free TV only) to have continuous current and driver titles Free to Consumer Programming Highlights 9

Privileged and Confidential Actions on Crackle Plus……Drives Actions on SEN Search: Gracenote drives discovery of paid content Watch Spider-Man as an ad- supported movie option Watch a sneak peek of the upcoming film Watch episode from prior seasons of Community Search also recommends: –Similar films for purchase or rental –Sign-up for PlayStation Plus to get Spider-Man game content –Buy Spider-Man Shattered Dimensions –Listen to the soundtrack on Music Unlimited –Purchase recent TV episodes View original series Watch series on Crackle based on a PlayStation game Promotion spots encourage exploration on SEN –Buy the game –Sign-up for PlayStation Plus View a collectionExplore themes tied to: –Game content (e.g., “Assassins,” “Heroes” etc.) –Music content (e.g., celebrity playlists) –For sale / rental titles included in collection –See related games on PlayStation Plus –Explore the artist on Music Unlimited Watch a concertColdplay concertAdd Coldplay to your Music Unlimited favorites Preliminary Product Integration Concepts to Drive Up-Sell 10

Privileged and Confidential Sony already owns a premium content network, among only a handful in the market An Out-of-the-Box Premium Video Experience, exclusive to Sony Devices Newer, high-quality, more movies Premium TV caliber original series Exclusive TV syndication window HD video delivery Fully integrated products driving up-sell to other SEN services (transactional movie, games, video / music subscriptions) Branded exclusively to Sony A light version of the Network that provides network and marketing scale Smaller selection of movies No or second window original series Older, library TV Standard Def video delivery Marketing driver back to Sony from high-traffic platforms Keeps brand in competitive / mindshare space with Netflix, Hulu, Amazon, etc. Crackle Plus, Exclusive to Sony 11

Marketing, Promotional and Additional Content

Privileged and Confidential Potential Opportunities: In-Process and Prospective 13 Content Exclusive to SEN Trailers (e.g., Resident Evil launched1/18, MIB 3 launched12/12 reaching 750MM Sony consumers throughout devices, platforms networks) Value-added content such as outtakes, behind the scenes, cast profiles Subset of DVD extras available prior to DVD release Feature SEN Messaging On… Theatrical one-sheets and other field promotional materials that highlight service and/or related content (e.g., library titles for franchise releases, soundtracks etc.) DVD/Blu-ray inserts and packaging that highlights service, related content and/or drives trial through a voucher Sizzle/spot on head of product that highlights value proposition of SEN Sizzle/spot on BD Live accessed via click-through of branded banners that highlights value proposition of SEN Dedicated worldwide TV spots when advertising inventory is available Display and video messages on 100+ channel websites Sony Times Square billboard Sony Spotlight Newsletter Sony Facebook page, Twitter handle and SPE websites

Privileged and Confidential Next overall project meeting February 1 st (LA Time), with detailed review of plan for initiatives requiring shared investment –Post February meeting: Regular updates with SONY, SNEI, SPE and SCE Crackle Plus: –Post February meeting: Continue budget discussions; kick-off process for identifying original content –March: Budgets submitted that reflect funding of all contemplated initiatives –May: Original content greenlit –October: Crackle Plus service launched –November: 1 st original content aired on Crackle Plus service Unique Transactional Models: –Post February meeting: Engage with existing SPE distribution partners (e.g., exhibitors) on new models –Summer: Launch “PVOD with ownership” with first SPE title (i.e., Pirates!) Marketing and Promotional Content –January: Launch Resident Evil trailer on SEN service –Post February meeting: Continue executing on cross-promotional opportunities and conduct periodic check-in calls with all participants to review progress and new opportunities Major Milestones 14