1. U.S. Production: Challenges and Opportunities Continued investment in A-list writers, directors and producers for future drama/comedy/unscripted development Develop series with broad international appeal with globally marketable talent to sell in the US and abroad International co-production partnerships Continue to be on the forefront of the burgeoning subscription VOD market (Netflix, DirecTV) to sell and develop series Production cost control and reduction efforts continue on all programs Expand our prime time broadcast and cable reality slate Opportunities Continued network reliance on self produced shows Declines in Broadcast and Cable ratings Challenges

2. Ad Sales: Challenges and Opportunities Diffuse volatility in TV ad revenue market by growing a strong digital base Continue to drive additional revenue for first run through advertiser integrations Expand current base of advertisers for :30s and :10 to off-nets Develop emerging Cable Networks business Find new 3rd party representation opportunities Continue to support cable/network properties through Branded Entertainment Opportunities Year-over-year growth in TV ad revenue is limited by available shows Opportunities for 3rd party ad sales representation in TV are declining Challenges

3. International Production: Challenges and Opportunities Continue to exploit Who Wants to Be a Millionaire and develop a stable base of other successful formats Make more focused and sustained investment in development executives, producers, production companies, and new content especially in the UK Foster a more creative culture to develop intellectual property by: − Realigning the organization, including a new President and a creative head − Combining the print sales and format sales teams to better serve our buyers − Creating a strategically centralized development fund − Implementing a competitive incentive plan Simplify administrative and operational processes Opportunities Competitive marketplace Challenges

4. US Distribution: Challenges and Opportunities Opportunity to renegotiate Starz output deal Sell library film and TV series into non- exclusive subscription deals Split library windows, license multiple rights, structure non-exclusive deals Aggressively sell slate carve-out windows utilizing more aggressive inventory tracking and planning Develop consistent flow of first-run product with top talent Opportunities Starz spin-off and uncertain future of their original strategy Less reliance on library product Challenges

5. International Distribution: Challenges and Opportunities Broaden scope of broadcaster relationships to explore English language, European content, co-production opportunities Take full advantage of opportunities with emerging SVOD players Close long-term deals in key markets over the plan Focus on select emerging markets to expand SPT’s presence and better capitalize on opportunities (Netherlands, Scandinavia, Poland, Hungary, South Africa) Opportunities Shift in MPG film slate Lack of a breakout/hit Drama Ensure we keep rights to key revenue- driving feature film franchises Challenges

6. Networks: Challenges and Opportunities Buy out Indian partners and realize an Indian regional opportunity Focus next 18 months on maximizing efficiencies in existing operations Continue to selectively launch channels in new and existing territories Increase investment in Crackle U.S. advertising and technical infrastructure Continue to secure programming supply through studio output deals and investment in original programming (The Firm). Increase 3rd party acquisitions for US businesses Maximize value in Crackle US and expand internationally (Latam, Brazil, Canada) Expand SPTL Asia facility to service EMEA channels Opportunities Global pressure on ad sales and subscriber fees Volatility of foreign currencies has had a particularly harsh impact on Networks earnings Rising content costs, increased broadcasting costs from HD roll outs and the investment in ad sales and affiliate infrastructure keeps margins in check Lack of a sports channel in India Challenges