Starz Deal Overview of Benefits for Sonyowned Platforms

Starz Deal Overview of Benefits for Sony-owned Platforms January 9, 2009 Confidential

Starz Deal Overview • In exchange for substantial license fees, our previous Starz deal licensed exclusive rights to our films during the Pay window through 2013 • Like other Pay TV channels (HBO, Showtime) Starz’ exclusivity placed certain restrictions on the studio’s ability to offer on-demand services through traditional customers (MSOs, DBS) and owned platforms (BIVL, PSN) • Under our new deal through 2016, we have significantly improved our ability to offer on-demand services including some new rights specific to Sony-owned platforms – PPV / VOD / EST ØCable / broadband / IPTV -- Broadened our rights to offer PPV / VOD / EST for final 3 months Pay 1 and Pay 2 ØNew media – Retained ability to offer PPV / VOD / EST over the internet at any time (including during Starz window) and clarified that we can offer PPV / VOD / EST on mobile services at any time – PPV / VOD viewing period -- extended viewing period from 24 hours to 72 hours – Free on-demand -- Secured right to bundle 2 “free on demand” titles per year with Sony hardware – Subscription on-demand on Sony platforms -- Secured MFN, ensuring Sony can offer the Starz subscription ondemand channel on Sony platforms with favorable terms – Mobile -- obtained right to exhibit 6 titles (<$50 m DBO) per year on our mobile SOD channels during network window – EST -- Reduced EST pricing floor during Pay 2 – Open Market -- Clarified our right to offer digital locker re-delivery of PPV / VOD / EST Confidential 1

PPV / VOD / EST During Starz Window Previous Starz Deal Terms • Deal prohibited PPV / VOD / EST on cable, satellite, and IPTV platforms during Starz window • Permitted PPV / VOD / EST on internet and new media services any time during Starz window Implications • If BIVL or PSN is delivered over the open internet (i. e. , not a closed system) or operated as a traditional open internet / web site service they could offer PPV / VOD / EST titles at any time, including during the Starz window • If BIVL or PSN morphed into IPTV providers (effectively cable competitors) they were prohibited from offering PPV / VOD / EST titles during Starz window Confidential New Starz Deal • Secured rights to offer PPV / VOD / EST on cable, satellite, and IPTV platforms during last 3 months of Pay 1 and last 3 months of Pay 2 • Retains rights for PPV / VOD / EST on internet (and adds rights for mobile) at any time during Starz window • Retains BIVL and PSN right to offer PPV / VOD / EST when operating as an open internet service • Adds rights for BIVL and PSN PPV / VOD / EST offerings to overlap with Starz windows for six months if these services become IPTV providers • Strengthens our mobile offering 2

PPV / VOD Viewing Period Previous Starz Deal Terms Implications • Sony’s PPV / VOD offerings (through MSOs, DBS, and owned platforms) was limited to a 24 hour viewing period • Sony’s PPV / VOD offerings (through MSOs, DBS, and owned platforms) extended to a 72 hour viewing period • Limited the value of potential VOD offerings on BIVL and Play. Station • Significantly increases the appeal of PPV / VOD offerings on Sony platforms and 3 rd party providers • Limited our ability to drive PPV / VOD revenue through 3 rd parties Confidential New Starz Deal 3

Free On-demand Implications for Sony Hardware Bundles Deal Terms Previous Starz Deal New Starz Deal • Sony was not allowed to offer pictures on a free-on demand basis prior to the network window • Sony is allowed to exhibit 2 pictures per year on FOD basis if bundled with a Sony consumer electronics product priced > $100 and promotion can be up to 2 months per picture • No box office restriction (can offer our best titles) • No timing restrictions (can offer at any time after theatrical release) Implications Confidential • “Hancock” was not able to be bundled “free” with the purchase of a BIVL • Going forward, Sony can bundle a free on-demand viewing of our two biggest titles each year with the purchase of a BIVL, Play. Station, or other Sony hardware 4

Subscription on-demand during Starz Window Previous Starz Deal Terms Implications Confidential New Starz Deal • Starz could make subscription on-demand offerings available on its own platforms (e. g. , Vongo) or through third parties (e. g. , Fancast for Comcast cable customers) without allowing Sony to offer Starz Play on our own platforms • Starz must make Starz Play available for Sony platforms (e. g. , Play. Station and BIVL) directly or through partners • Created risk of Starz Play channel being available in multiple places online, yet not on PSN and BIVL • Ensures BIVL and Play. Station will be able to offer a subscription on-demand offering (Starz Play) and provides leverage for favorable deal terms • MFN on service terms is in place through February 2012 5

Mobile SOD Previous Starz Deal New Starz Deal Terms • Subscription on-demand was not allowed during the network window (between Pay 1 and Pay 2) • Obtained right to exhibit 6 titles (with under $50 MM in domestic box) per year on Crackle / Pix mobile SOD channels during the network window Implications • Crackle and Pix mobile could only have library titles on non-ad supported channels • Enables Crackle and Pix to introduce quality titles into subscription mobile channels earlier Confidential 6

EST Pricing Floor During Pay 2 Previous Starz Deal Terms • EST was allowed in Starz window but with pricing floors New Starz Deal • Wholesale pricing floor during Pay 2 reduced to $3. 48 • Wholesale pricing floor during Pay 2 was $6. 95 Implications Confidential • Pricing floor was unrealistically high for older (Pay 2) titles, limiting the EST business • More realistic pricing will help grow EST during the Pay 2 window 7

Digital Locker and the Open Market Philosophy Previous Starz Deal Terms Implications New Starz Deal • Prohibited an Open Market “digital locker” redelivery of a film purchased via the internet • Allows an Open Market “digital locker” redelivery • Titles initially purchased from BIVL and PSN could not later be re-delivered through other services (e. g. , cable STB or mobile carriers to cell phones) • Improves the value of EST on BIVL and PSN platforms • Provides benefits for the Open Market initiative • Restrictions limited the feasibility of the Open Market initiative and created a confusing consumer offering Confidential 8