1. Agenda
Executive Summary
Core Assets
Programming
Networks
Distribution
Ad Sales
Financial Appendix

2. Short-form Programming by Channel and Content Type
Library
New Access
Acquisition
Original
UGV
[Emphasize that Minisode and Screening Room will leverage library; most original content will be against Funny Bone / AXN; Crackle will be mostly UGV with potential for some premium content]

3. Agenda
[CONSOLIDATION OF 5-6 MARKET SLIDES IN “DIGITAL NETWORKS” SECTION PROCESS]
Executive Summary
Core Assets
Programming
Networks: Digital
Distribution
Ad Sales
Financial Appendix

4. Without Digital Networks, SPT Loses Influence and Revenue
SPT content continues to build and benefit other parties’ networks, replicating the current creation-distribution ecosystem
Talent, seeking multi-platform exposure and marketing of productions, turns elsewhere
Opportunity cost to not making library available online
Content
Traditional networks aggressively build online & mobile audiences, replicating position & distribution advantage in the digital world
Difficult to secure real estate on digital MSOs for SPT’s a la carte content, with limited spots available in digital MSO tiers
Digital MSOs increasingly dictate business models and product development without SPT input
Distribution
Ad dollars shifting from traditional TV to online
By 2011, TV content captures largest share of online ad spending:
TV: $568 m
Advertising
Music Video: $447 m
News & Sports: $433 m
Other: $145 m
UGV: $137 m
Source: Adams Media Research, 2007

5. Strategy: Create Digital Networks to Address Digital Landscape
Why Digital Networks?
Build Assets
Generate Revenue
Establish 21st century network / distribution assets for SPT
Build foundation for SPTAS to bring-in new partners and expand lines of business
Provide long-term distribution leverage for SPT content
Provide outlets for new content and talent
Capture share of developing revenue streams (IP and mobile)
Unlock and monetize SPT’s vast library
Give SPT seat at table to shape digital products and business models
Create program franchises with follow-on windows (e.g. DVD, Direct to Mobile)

6. Four Networks Will Activate SPT’s Multi-Billion Dollar Library*
Your favorite feature length, contemporary classic films across all major genres: comedy, action, drama, family, sci-fi and cult
Episodes from the heyday of sit-coms
Outrageous shorts and busted pilots
Originals by contemporary comedians
SPT’s “middle tail” content is hard to find
Deep classic comedy library
Demand for short form, original comedy exploding online
Classic hard-hitting action TV series and original takes on today’s favorite action movies and stars
Deep action-themed library
SPE relationships with celebrity action stars and film franchises
Key young male action demo also early adopter of digital tech- nology
What: 2 Popular Genres, 2 Popular Formats
Favorite retro TV shows told in in 4-6 minute “minisodes”
Why: We matched our assets with market demand
Extensive library of much-loved shows
SPE’s 3,500+ feature library
Format appeals to today’s “bite sized” video consumption
Edited to meet the demo’s ironic, camp sensibility
Popular TV format (Turner, USA, AMC, etc.) embraced by audiences but not yet translated to digital
*Five including SPT’s investment in FearNet and SPT Mobile’s distribution of FearNet Mobile

7. Programming Philosophy Based on 4 Building Blocks
SPE Film
Library
SPT TV
Busted Pilots
New Access
Short-Lived Series
Acquisition
Prosumer
Short & long form
Original Production
New Shows
Star-Driven
WTF with Penn Jillette
Credence Walker
Traffic Creating
Branded Ent.

8. Distribution Philosophy
Network Distribution Approach
Partners
D2C
Online
Mobile
Other
Online
Mobile
Portals / Aggregators
Syndicators
Social Networks
Virtual Worlds
Carriers
Non-Carrier Aggregators
MSOs & IPTV
SCE: PS3, PSP
SEL: Bravia, VAIO
Vertical sites
Originals sites
WAP
Application
Text
Emphasis on Syndication

9. Digital Networks and Crackle Complete SPT’s Offering
Library play
Original programming will also appear on Grouper
User involvement play
User involvement occurs on and is enabled by Grouper
Distribution
Networks are syndicated to digital “MSOs” (e.g., Joost, AOL, MySpace, Yahoo, MSN) in their player/environment
Crackle’s website and Crackle player central to the strategy
Originals
Original programming is more linear in nature, uses high-end talent and is professionally selected and produced
Short-form programming is largely meant to spur UGV development for the purposes of individual exposure / fame
Content - selection
Content is all pre-screened for quality (like a network) – an “upfront” mentality where we are the buyer
Editorial and user-based rankings of content drive pyramid

10. Digital Networks Financials
EBIT
Revenue
[Placeholder Numbers]

11. [CONSOLIDATION OF 5-6 MARKET SLIDES IN “CRACKLE” SECTION PROCESS]
Agenda
[CONSOLIDATION OF 5-6 MARKET SLIDES IN “CRACKLE” SECTION PROCESS]
Executive Summary
Core Assets
Programming
Networks: Crackle
Distribution
Ad Sales
Financial Appendix

12. Crackle’s Strategic Focus
Discuss high-level market issues / trends
Outline Crackle’s position in marketplace

13. Crackle Strategy Overview
Content /
Channels
Summary level
strategy for
these key issues
Goals
Platform /
Product
Differentiate service
Build audience
Generate revenue
Partners /
Distribution
Monetization

14. Evolution of Crackle Channels
FY07
FY08
FY09
FY10
Channels
Identify Specific Channels / Concepts
Discuss evolution of content on Crackle (e.g. premium content?)
The Line-Up
Identify Specific Partners
Fame
Partners
Improv
SPA
SPT

15. Crackle Platform Development
FY07
FY08/09
Expansion of embedded player
Integrate search, upload, comments and “shoutout” features into player
Syndication via 1-Click publishing (e.g., Digg, EBay)
Online editing functionality
Branded channel templates (framework for premium producers, sponsors)
Family Filter
Continue expansion of embedded player
Add real-time community features including chat
Add geographic data and search
Personalized recommendations/channel
Customized functionality
User profiles, instant messaging
New Features
Device Support
Initial camera integration (Pure Digital)
Initial R&D for Sony devices: PS3, VAIO
Mobile phone integration
Hardware integration (e.g., PCs, Cameras, Camcorders, Cell Phones, Set-top Boxes)

16. Expansion of Crackle’s Distribution Network
Cross-Sony
Partnerships
User Driven
“1 Click”
Distribution
Partners
Marketing
Power video uploads
Embed screensaver and software
Users syndicate playlists via embedded player
Embed Grouper player on partner sites
Distribute content “pyramids”
Purchase advertising on high traffic web sites
Drive users back to Grouper.com
Digital Imaging

17. Crackle Revenue Plan
Overall trends in sales of advertising against UGV content
Ad units (pre-roll / post-roll, overlays, banners)
Sales strategy
Sponsorship concepts
Traction to-date with advertisers

18. Key Crackle Metrics
[Include Key Crackle Metrics]
[Placeholder Numbers]

19. [Placeholder Numbers]
Crackle Financials
EBIT
Revenue
[Placeholder Numbers]

20. Agenda
Executive Summary
Core Assets
Programming
Channels
Distribution
Ad Sales
Financial Appendix

21. Digital Distribution Landscape: Growing Demand
U.S. Consumer/Advertiser Spending ($M)
CAGR%
Media conglomerates have licensed their content for digital sell-through
Networks/labels have extended their brands online
ABC.com: ad-supported full episodes of primetime shows
Launched AOL In2TV, ad-supported classic TV episodes
Warner Music Group to distribute library of music videos via YouTube
CBS to offer wide variety of short-form video programming (news, sports, entertainment) on YouTube
$4,934
Total
79%
Subscription VOD
131%
IP-VOD
120%
$3,040
DST
254%
$1,812
Online video advertising
$829
51%
Online video advertising will be the largest market (exceeding DST) driven by 1) traditional media players distributing their ad-supported content via the web 2) ads inserted in user-generated video streams
Digital sell-through will be a $1 billion market by 2009 with key internet companies (Amazon, iTunes) leading consumer conversion to digital ownership
$477
Source: Adams Media Research, Veronis Suhler, eMarketer

22. SPT Strategy & Financials
Digital Distribution
SPT Strategy & Financials
Aggressively build the distribution network
Strike partnerships across the complete spectrum of traditional and on-line players
Continue to expand the overall content offering
Broaden selection of film and TV product
Introduce the most compelling short-form/original content into the offering
Continue to lead the market in innovating the digital product offering and usage models
Focus on Digital Sell-Through as foundational/core product
Build a strong, retail-focused organization
Create innovative marketing and promotional programs
Continue to lead the industry with respect to asset delivery and digital operations
Total Revenue

23. SPT Strategy & Financials
Mobile Overview
SPT Strategy & Financials
Taken responsibility for game development from SPDE and coordinating greenlights with SPTI
Slating 8 games per year
Now directly responsible for personalization products focusing on
Tones/graphics based on film/TV properties
Packages based on compelling brands/themes
Market approach
Close carrier relationships and marketing support
Consistent product development
Reinvigorate the library
EBIT
Total Revenue
Q2/MRP
Budget/Prior MRP
[Placeholder Numbers]