Privileged and Confidential SNEI and SPE discussion of next steps January 6, 2012.

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Presentation transcript:

Privileged and Confidential SNEI and SPE discussion of next steps January 6, 2012

Privileged and Confidential Discussion Topics Timing Content licensing Original content development Application development Integration on PlayStation and launch plan for BIV (assuming no tablet or phone at launch) SPE, SNEI, PlayStation, and BIV responsibilities and who is involved Are there any issues with integrating into universal sign-on and common wallet How Crackle+ is presented/discovered from launch pages How Crackle+ content links to / promotes paid content (VU, MU, PS+) How Crackle+ content appears alongside other content in search results Economics SPE refining cost estimates for content and incremental SPE headcount SPE creating revenue estimates for ancillary revenue for originals and ad revenue SEN to identify any incremental costs for data center/cloud, bandwidth, and dedicated headcount SEN to create revenue and margin uplift estimates for EST, VOD, etc Discuss marketing support through Sony Hardware avails / advertisements 1

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 2

Privileged and Confidential Curated Film and TV 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) –Cost: $2MM for video coverage Live concerts, music festivals, unplugged sessions with artists, “secret” shows –Cost: $3MM for video streaming and licensing Two 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 –Cost: $30MM per series for each season Leverage short avails of 2-3 year old movies in the Network window (free TV only) to have continuous current and driver titles Pick up select shows in syndication window –Cost: $10-20MM to license more content for variety and volume Free to Consumer Programming Highlights 3

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 Deep Product Integration Drives Up-Sell 4

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 5