Privileged and Confidential Questions General What do we

Privileged and Confidential Questions • • • General – What do we most need to be more successful? Mission / purpose? Priorities? Organizational changes? Entertainment Co. support? Technology / control – From technology and services standpoint, what does SNEI fully control vs. what does SCE/Play. Station own and control – What else does SNEI need to control to be successful (PS+? , Firmware? ) – Do we have a plan for apps Content – How do we best manage content initiatives – How do we best engage content Cos. Organization – General description of organization and responsibilities? [review org charts Wed? ] – How can a role that supports content efforts help? And how do we handle the intersection of content and services? Economics – – • Expected services to be profitable after direct costs on $1 BN of revenues What level of marketing budget moves the needle; and what is in place with Current initiatives [Wed? ] – Can we model a VOD uplift for Crackle+ – Can we launch UV in-time to support titles in June 0

Privileged and Confidential STRATEGIC CONSIDERATIONS 1

Privileged and Confidential Preliminary Thoughts on Priorities • The most realistic and impactful near-term goal for content initiatives and service improvements is to better leverage the installed base of hardware; more so than to sell more hardware – – • • • First: Convert more customers to active, paying SEN customers • New accounts: Increase % of Sony Hardware customers that have SEN accounts • Increase % of current accounts that are active / paying • Increase revenues from current active / paying accounts Then: Use the service, content offerings, and customer enthusiasm to drive hardware sales Platform Goals – First: Establish a superior service on with differentiated content on a “hero” platform, namely the Play. Station – Then: Broaden that service in a uniform fashion across device platforms Demographic – First: Succeed with Play. Station core customers (males 18 -34) – Then: Broaden to reach other demographics Geographies for differentiated content – First: Introduce new offerings in U. S. – Shortly after (a matter of months): Launch in 2 -3 other key markets [Japan, Europe? ] – Then: Roll-out globally at a realistic pace 2

Privileged and Confidential Tactics Customer Acquisition • Free / easy to discover content for customer acquisition • Increased marketing spend – Incorporation in Electronics TV ads – Increased SNEI budget – Increased support by SPE, SME, SCE Monetization • Improved underlying services (e. g. , Music Unlimited at parity or better than Spotify) to capitalize on and monetize newly acquired customers • Improved User Interface (directly competitive with the new XBOX launch) – • Single promotional “landing page” with clearly highlighted content for Music, Video, Games 3 rd party services on Play. Station behind a pay wall (in-line with XBOX Live Gold) 3

Privileged and Confidential Customer Value Proposition – “Why Try / Why Buy” Why Try (Customer Acquisition) Why Buy (Monetization) Music Video PS+ (On Play. Station Only) Vivo+ (Free) Crackle+ (Free) Gateway to wellknown 3 rd party services (e. g. , Netflix) Heavily Promoted and Exclusive Films (Early EST, PVOD, UV) Cross-Sell Gateway to Other Services Compelling Service (Music Unlimited) VOD & EST PS+ required to access premium services 4

Privileged and Confidential Preliminary Timelines • February: • February Onward: Significant SPE and SME marketing support of existing services in the market • May: Announce Crackle+ concept and upcoming originals • June: First “Exclusive and Early” title available • Fall: Crackle+ and Vivo+ launch Announce support for UV Biggest “Exclusive and Early” titles 5

Privileged and Confidential Must Haves Organizational • Engage and leverage the entertainment companies – • [Discuss whether this involves organizational change, and how to manage intersection of content and services so content initiatives aren’t on an island, or thrown over the wall] Single point of ownership over elements critical to SEN’s success [discuss if this includes Play. Station services and firware] Financial • Marketing budgets (in SNEI and Hardware; with “in-kind” support from SPE and SME) sufficient to: – Generate wide-spread brand awareness for SEN – Generate a specific understanding of what the service offers – Promote specific content opportunities Technical • Compelling UI roll-out (competitive with XBOX) • Improvements to the music service 6

Privileged and Confidential Potential Service Changes to Discuss Potential Changes • Vivo (current ad-supported version) on Play. Station immediately • Build a solution for apps • On the Play. Station, move the 3 rd party services behind the PS+ pay wall; keep Video Unlimited and Music Unlimited as peers to PS+ (not behind the PS+ pay wall); Crackle+ starts in front of pay wall • Music service should not be a 180 day trial of the “light” product, it should be a 30 day trial of the full product • Launch integrated search and UI across Music, Video, Games • Prioritize early EST engineering (UV) Projects that may now be duplicative • Movie-a-day service (Crackle+ offering has greater volume free to consumer) • Crunchy roll (incorporate Anime in Crackle+) Discuss • SEN TV concept with input from SPT 7