1. CONFIDENTIAL SPE Service Opportunities Draft 4

2. page 1 Traditional Studio Content and Distribution Businesses are Fragmenting Studio User Generated Games On-demand Linear Broadcast Cable Satellite IP Wireless Television PC Portable Media Player Game Console Mobile Phone Established Emerging Content ProductionDelivery InfrastructureContent ServicesPlayback Devices

3. page 2 Hypothesis for High Level Focus Areas Studio User Generated Games On-demand Linear Broadcast Cable Satellite IP Wireless Television PC Portable Media Player Game Console Mobile Phone Established Emerging Content ProductionDelivery InfrastructureContent ServicesPlayback Devices SPE Focus on Content and Adjacent Service Businesses Third Party Partnerships Sony Hardware

4. page 3 Growth Potential by Content and Service Type Studio User Generated Games Content ProductionContent Services 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Amateur: 2006: $X 2009: $X CAGR: X% “Prosumer” 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% 2006: $X 2009: $X CAGR: X% Linear On-demand 2006: $X 2009: $X CAGR: X% Nascent market with early signs of potential –Current / Yahoo! as early entrants –No dominant player in place Large, established market with limited growth potential No established market, questionable potential Early stage with significant growth –Investment focus for studios –Early validation for advertising opportunities Early stage with significant growth –Infrastructure now in place –User adoption accelerating Continued growth opportunities –Mobile, PC, and console games Considerations

5. page 4 Hypothesis for Detailed Focus Areas Original short-form (webisodes) Repurpose library (2 min minisodes) Branded / ad-based User-generated Prosumer Channel extensions (fearnet, GSN) Content Production Content Services Develop cross- platform sales capabilities Hire dedicated new media sales team Combine new content and ads for “Syndicator” offering Ad Sales ODE Licensing directly to large, established video services –Amazon –AOL –CinemaNow –Guba –MovieLink –Sprint 3 rd Party Services Develop digital video Syndicator service –Sony and 3 rd party video –Adds Leverage relationships with TV affiliates Address needs of smaller sites Affiliate Sites Grouper for user generated video Grouper / Backlot for “prosumer” video Grouper and/or new services for ad- supported and sell- through premium content Owned Services

6. page 5 Desired Outcome By March of 2007, move SPE to a position of leadership in digital media Establish new content production capabilities –Create budgets and secure resources for content development –New forms of content in-market Develop expertise in cross-platform ad sales –Ad sales for Grouper live (starting January 2007) –Ad sales for licensing partners continue (e.g., AOL) Effectively partner with third party services –Continue licensing to third parties –Pending approval, build and launch Syndicator model Expand range of owned services –Grow Grouper and enhance functionality –Complete analysis, plan, and (pending approval), build and launch new services (e.g, Backlot) –Identify new opportunities and be in early stages of building or acquiring

7. page 6 Questions to Address All Opportunities (Content, Ad Sales, Services) Content Production Ad Sales Which new forms of content represent the best opportunity for investment? What is the required level of investment to reach critical mass with new forms of content from SPE and third parties? How can we ensure that we invest efficiently in new content production? Which business models are most attractive (growth, margin, competition)? Which opportunities best fit with SPE’s expertise? How can SPE best organize to minimize duplication and share common infrastructure and resources across services? What incremental investment in headcount and infrastructure is required? Which current and new advertisers represent the best clients for cross- platform ads? What new forms of advertising are required to best address the opportunity?

8. page 7 Questions to Address Services ODE Licensing Services Syndicator for Affiliate Sites Services Owned Services What investment in licensed or acquired technology is required? What is the appropriate mix between SPE and aggregated content? How many affiliates are required to make the service economically viable? How can SPE best build its affiliate network (e.g., leverage TV affiliates; acquire an established video Synidicator) Which services are best addressed by licensing vs. an owned service? How can SPE best prioritize licensing partners? Which customers (if any) merit preferential treatment (e.g., exclusivity on a subset of content, long-term partnerships)? What additional service capabilities should Grouper expand to address (e.g. premium content, prosumer content?) When? What additional services should be built as standalone brands (e.g., Backlot)? Can these services leverage Grouper’s infrastructure? What additional services should SPE partner or acquire to address?

9. page 8 Preliminary Timeline