1. Digital Services and Distribution Landscape
Content
Business Models
Distribution
Devices
Online Services
Digital Sell Thru (DST)
Owned
Partners
Video on Demand (IPVOD)
Subscription Video on Demand (SVOD)
Mobile Carriers
Partners
Ad Supported Channels

2. Build from Existing Assets and Produce Original Content
Recent releases & library assets
Film / TV
Professional Short Form
Original SPT content and 3rd party production
Quality UGV with proven audience appeal
Prosumer
Unfiltered content that leverages viral nature of UGV
UGV
Licensed and original titles
Mobile Games

3. Digital Sell-Through (DST)
Partners
User Value Proposition
User purchases individual titles, owns the content, and can watch an unlimited number of times on any “approved” device
FY07
Delivery
Downloaded through 3rd party sites with full DRM
FY08
Content
TV and film assets (both library and recent release titles)
Pricing
Retail prices for theatrical product generally range from $9.99 for deep library to $19.99 for new releases

4. User Value Proposition
Video on Demand
Partners
User Value Proposition
Users “rent” individual titles with defined usage rules (e.g., view within 30 days of download, complete within 24 hours of first viewing)
FY07
Delivery
Content downloaded from 3rd party sites
FY08
Content
Primarily film assets
Pricing
“Rental” fees range from $1.99 to $3.99 for most titles

5. Subscription VOD (SVOD)
Partners
User Value Proposition
Users have access to a wide variety of tiles on an “all you can eat” basis to be watched on demand during limited windows
FY07
Delivery
Content is either streamed or downloaded through 3rd party sites
FY08
Content
Primarily film assets
Pricing
Users pay a monthly fee or subscription is included as part of a package (e.g., Tier 1 service on mobile carriers)

6. User Value Proposition
Ad Supported Channels
Partners
User Value Proposition
Users watch genre-based, programmed channels for free (analogous to broadcast / cable TV)
FY07
Branded channels are owned and operated by SPT and streamed from 3rd party and owned sites
Delivery
FY08
Channels include library (TV and film) assets complimented with original programming and interactive elements
Content
Channels are ad supported (e.g. banners, video interstitials) with a revenue share back to channel partner
Pricing

7. Distribution to Multiple Devices / Across Platforms
Delivery
Examples
IPTV
Downloads
Streaming video
Embedded content
Memory cards
Crackle Service and IP promotional channels on Bravia
‘Funny Bone’ channel on AOL
Memory card bundles with games and films
TV library on iTunes
Crackle ‘Off the Hook’ channel on PSP
Downloads
Downloads
Streaming Video
Embedded Content
‘Hollywood Hits’ channel on Sprint
Mobile games on multiple carriers
Downloads
Embedded Content
Licensed content for digital delivery on PS3

8. Case Study: Gaia Online
An online virtual “hangout” with a targeted demographic
65% of demo are 18 years old or younger
85% of audience is domestic
Gaia has built an attractive and passionate community
7MM register users and ~2MM monthly unique users
Average 2-3 hours per day on the site (more than MySpace or Second Life)
An early stage company with significant upside potential
Previous focus on building audience, now beginning to monetize user base ($1.8MM in Q1 ‘07)
Raised ~$21MM to date; last round at $120MM valuation
Extremely interested in Sony as a strategic partner
An attractive site to build brands and sell SPE products with multiple revenue opportunities
Fees from films and TV product aired in virtual theaters
Ad inventory from branded digital channels (e.g. Minisodes)
Sale of virtual SPE products (and possibly digital goods)
Promote properties through immersive experience
Source: Gaia mgmt (traffic and demographics)

9. Gaia Revenue and Marketing Opportunities
Virtual Theaters
Virtual Goods
Other
Stream SPE films and digital channels in virtual theaters where users interact with each other and their environment
Titles/channels would air in exclusive branded theaters
Gaia charges a per-ticket or rental fee and shares “box office” with SPE for current and library titles
SPTAS sells video interstitial and display inventory for digital channels
Sell SPE branded virtual goods
New revenue stream for SPE with high margins
Branding and promotional opportunity providing a new consumer touch point
Ability to tie virtual goods to movie and product launches
Actual goods are TBD but conceptually could include Boondocks t-shirts, Spiderman masks, etc.
Merchandising
Sell SPE digital goods, including games, ring tones, and wallpaper
Sell SPE branded hard goods, including movie posters, DVDs, etc
Marketing / Promotions
Market SPE titles to a highly targeted and valuable demographic (14-24 year olds)

10. Gaia Cinemas

11. Case Study: Minisode Network
Currently Playing
Launched with significant press coverage in June
90 day exclusive first run on MySpace
Over 2 million views to-date
+300 episodes now playing with additional 300 coming soon
In process of securing wider distribution (Crackle, AOL, Google) and larger library of content – including 3rd party
Coming Soon