Privileged and Confidential Sony Pictures Entertainment and Sony

Privileged and Confidential Sony Pictures Entertainment and Sony Network Entertainment: Project Update February 1, 2012

Privileged and Confidential Executive Summary • Since meeting in December, we have made progress on three initiatives that will help differentiate Sony from competitors in the digital network entertainment space – Unique transactional models, including “PVOD with ownership” – Programmed video service called Crackle Plus on Sony platforms with exclusive originals and exclusive films to drive usage – Marketing and cross-promotional content to drive traffic • Completed milestones include – Specifics of unique transactional offerings identified – Crackle Plus content volumes identified and costed in more detail – Preliminary marketing and promotional opportunities identified, several in progress – Completion of preliminary technical feasibility analysis on each project • Critical next steps include – Incorporate in budgets – Continue execution, including investment in content and technical build-out 1

Privileged and Confidential Unique Transactional Models 2

Privileged and Confidential Exclusive “PVOD with Ownership” Product Concept 2 -day rental of hit films such as MIB 3 streamed to a Sony connected device (e. g. , Play. Station) for approximately $25(1); available roughly 60 -90(1) days after theatrical debut and/or 30 -45(1) days before the DVD is released Digital copy automatically populates personal Ultra. Violet locker roughly 2 weeks prior to DVD release at no additional cost (1) Pricing under discussion, PVOD availability may vary by title. 3

Privileged and Confidential Potential Roll-out of “PVOD with Ownership” Theatrical Release Potential PVOD Window Tentative DVD Street Date April June or July or August MIB 3 May 25 th Late August December 11 th I Hate You Dad June 15 th Mid August October 9 th July 3 rd Early October December 4 th Title Pirates! Band of Misfits (Release date under discussion) The Amazing Spider-Man Total Recall August 3 rd Early November Note: All availability dates subject to change. 4 December 18 th “PVOD with ownership” only on SEN “PVOD with ownership” through SEN and others

Privileged and Confidential “PVOD with Ownership” Integration Requirements • PVOD security By Summer Launch – Normal watermark requirement lifted on first 4 titles to accelerate time-to-market – Shutdown analog outputs; already enabled on PS and connected Blu-ray players • Ultra. Violet Delivery: “Lite” UV – SEN generates e-mail with code – SPE handles UV account creation via PC and puts title / token in UV locker – SEN as a “UV LASP”: makes UV locker visible on device; enables streaming of titles in locker • PVOD security – By October Water-marking in place • Ultra. Violet Delivery: “Robust” UV – SEN as a UV retailer – SEN able to handle UV account creation and provide tokens to populate UV lockers with purchased titles 5

Privileged and Confidential Crackle Plus 6

Privileged and Confidential : Summary of Concepts • Free to consumer originals and exclusives with video experiences optimized for the Sony networked device audience • – Ad-supported / free-to-consumer to attract largest audience – Develop slate of original content: “TV quality” series – License exclusive film avails (i. e. , recent and library titles) – Highly curated experience run by experts who program target audiences worldwide – Initial U. S. -only launch with later international expansion Integrated with and driving up-sell to SEN’s paid services 7

Privileged and Confidential : Content on SEN Invest in Content Exclusive to SEN (i. e. , “Only on Crackle Plus, Only on Sony”) • 2 -3 TV caliber series annually (i. e. , approximately 26 episodes in FYE 13 and approximately 39 episodes in FYE 14 / steady state) Original Shows • Shows released weekly for regular programming • Differentiated and premium (i. e. , Pan Am / Breaking Bad level quality) to attract and engage consumers on a regular basis Curated Films • 15 additional 2 -3 yr old, exclusive driver titles in the network window like District 9, Salt, Battle L. A. refreshed monthly • Approximately 100 incremental library titles (i. e. , incl. SPE and 3 rd party titles) relative to current Crackle service (i. e. , 300 total) Inside Looks, Music, and Events • Behind the scenes, movie and pilot premieres, new game releases, and coverage of most relevant pop culture gatherings (e. g. , Comic-Con, E 3, Sx. SW) • Live concerts, music festivals, unplugged sessions with artists, “secret” shows Include Crackle’s Existing Base of Content to Offer Scale Films • Approximately 200 library titles (i. e. , predominantly SPE titles) with 5 additional 2 -3 year old driver titles in the network window like Step Brothers, Talledega Nights, Pineapple Express refreshed monthly • Approximately 1, 800 full-length and short-form television episodes including Television and Seinfeld and Married With Children Originals • Over 40 original series featuring notable talent including Neil Patrick Harris, John Hamm and Christina Applegate 8

Privileged and Confidential : Timing Milestone Month Budgets submitted that reflect funding of all contemplated initiatives Launch in-depth research related to original content creation Original content greenlit Feb / March [February] May Crackle Plus Service and show-specific marketing campaigns begin [August] Crackle Plus service launched October 1 st original content aired on Crackle Plus service November 9

Privileged and Confidential : Integration Status • Technical teams have met • Agreed integration is feasible for October launch • General agreement that Crackle Plus free-to-consumer content needs to be: – Searchable within the Crackle Plus experience and the Play. Station store – Include dynamically inserted ads “Must haves” for launch include: • Prominent “what’s new” placement for service, originals, and free movies • Dedicated CRM that facilitates ongoing e-mail pushes to engage and update customers with content Open Issues • Determining best placement of the Crackle Plus app / experience (e. g. , either free-standing app with deep links to store or all Crackle Plus content inside the store) Next Steps • Wire framing potential alternatives • Proposed solution to be completed by next update meeting 10

Privileged and Confidential Crackle Plus Budget Impact • FYE 13 is a partial year due to fall launch timing and includes investment, revenue benefits and cost-savings related to the shift of SNEI resources to this initiative – Estimated incremental investment does not quantify benefit to hardware sales – Includes impact to SPE and SNEI, before any corporate marketing ($MM) FYE 13 Gross Investment Content ($49) Headcount/Tech (7) Sub-total ($56) Uplift and Cost Savings EBIT Uplift on Services [$12] SPE Int’l Sales 3 Sub-total $15 Net FYE 13 Investment / EBIT Impact ($41) (1) Based on approximately $300 MM of domestic SEN revenues, 20% uplift, and 20% contribution margin. 11 (1)

Privileged and Confidential Crackle Plus Budget Impact • Economics would be incorporated in SPE and SNEI FYE 12 budget submissions; specifics being resolved but preliminary proposal is: SNEI • Pays SPE a flat fee equal to estimated content costs less estimated ancillary revenues (e. g. , international, video etc. ) and also bears bandwidth, data center and cloud costs • Retains uplift in service revenues • Responsible for its own investment in headcount and infrastructure • Retains ad revenue SPE • Bears actual content cost and execution risk on ancillary revenue opportunities – SNEI content license fee intended to offset content costs, but SPE bears risk and upside associated with content costs and international revenue 12

Privileged and Confidential Marketing Considerations and Benchmarks Objectives • Successful launch of compelling free-to-consumer content that drives trial among existing device owners • Create recurring incentive for audience to consume Sony content on Sony devices Show Launch Spend Comparables Avg HBO 1 -hr ~$15 MM Boardwalk Empire ~$20 Avg 1 -hr Cable Drama ~$10 Avg ½ hr Bcast Comedy Implications Off-Air Spend (1) ~$7 • Price of awareness for comparable launches, excluding use of on-air inventory and spend on 3 rd party networks is a material expense • Need to discuss potential use of Corporate Strategic Marketing funds to support initiative (1) Note: SPE Corp Dev estimates. 13

Privileged and Confidential Marketing and Promotional Content 14

Privileged and Confidential Marketing and Cross-Promotions • Marketing and promotional opportunities will serve to: – Drive awareness of the SEN brand service – Drive traffic to the SEN site – Enrich the SEN experience with unique content • SPE will provide a range of assets, including: – Exclusive trailer launches starting… – Home entertainment “extra” content starting… – Marketing avails on DVDs and BDs including package inserts and sizzle reels starting… – Advertisement inventory on SPE channels in key SEN markets starting… – Brand placement on film one sheets and other field promotion items starting… • Early success with the December trailer launch for Men in Black 3 across SEN and other platforms – [Launched in 34 countries in 20 different languages] – [20 million online trailer views to date (13 million in the first week)] – Became a global trending topic on Twitter within the first half hour of our launch 15

Privileged and Confidential Marketing and Cross-Promotions Initiative First Avail First Title / Property Other Potential Titles / Frequency Exclusive Content (Trailer launches, DVD & BD extras) December 2011 January 2012 MIB 3 Resident Evil 5 [1 -2 per quarter / TBD] [Upcoming titles TBD] DVD & BD Marketing Avails (Inserts, sizzle reels) TV Ad Avails (Channels and channel websites) Theatrical Field Promotions (One sheets, postcards) Note: All information in profess. 16

Privileged and Confidential Update on SPE Licensing Activity 17

Privileged and Confidential Update on SPE Licensing Activity To come from SPT Bus Dev 18