Privileged and Confidential

SNEI and SPE discussion of next stepsJanuary 6, 2012

Privileged and Confidential

Discussion Topics

• Timing

• Content licensing

• Original content development

• Application development

• Integration on PlayStation and launch plan for BIV (assuming no tablet or phone at launch)• SPE, SNEI, PlayStation, and BIV responsibilities and who is involved

• Are there any issues with integrating into universal sign-on and common wallet

• How Crackle+ is presented/discovered from launch pages

• How Crackle+ content links to / promotes paid content (VU, MU, PS+)

• How Crackle+ content appears alongside other content in search results

• Economics

• SPE refining cost estimates for content and incremental SPE headcount

• SPE creating revenue estimates for ancillary revenue for originals and ad revenue

• SEN to identify any incremental costs for data center/cloud, bandwidth, and dedicated headcount

• SEN to create revenue and margin uplift estimates for EST, VOD, etc

• Discuss marketing support through Sony Hardware avails / advertisements

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Privileged and Confidential

Video experiences optimized for the Sony networked device audience

• Free service creates largest user base and “out of the box” premium content experience

• Integrated upsell to PSN, PlayStation Plus, Video/Music unlimited (no 3 rd party services can do this)

• Highly curated experience run by experts who Program target audiences worldwide

• Premium TV caliber original series to differentiate the network

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Privileged and Confidential

Curated Film and TV ContentCurated Film and TV Content

Original ShowsOriginal Shows

Music and Live Events

Music and Live Events

Inside LooksInside Looks

The service offers a selection of premium movies with exclusive content and TV quality original series

• Behind the scenes, movie and pilot premieres, new game releases, and coverage of most relevant pop culture gatherings (e.g., Comic-Con, E3, SxSW)– Cost: $2MM for video coverage

• Live concerts, music festivals, unplugged sessions with artists, “secret” shows– Cost: $3MM for video streaming and licensing

• Two TV caliber series annually that leverage existing and related IP (e.g., PlayStation games) or build new IP for the company

• Differentiated and premium series to attract and engage consumers on a regular basis– Cost: $30MM per series for each season

• Leverage short avails of 2-3 year old movies in the Network window (free TV only) to have continuous current and driver titles

• Pick up select shows in syndication window– Cost: $10-20MM to license more content for variety and volume

Free to Consumer Programming Highlights

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Privileged and Confidential

Actions on Crackle Plus… …Drives Actions on SEN

Search: Gracenote drives discovery of paid content

• Watch Spider-Man as an ad-supported movie option

• Watch a sneak peek of the upcoming film

• Watch episode from prior seasons of Community

• Search also recommends:– Similar films for purchase or rental– Sign-up for PlayStation Plus to get

Spider-Man game content– Buy Spider-Man Shattered Dimensions– Listen to the soundtrack on Music

Unlimited– Purchase recent TV episodes

View original series

• Watch series on Crackle based on a PlayStation game

• Promotion spots encourage exploration on SEN– Buy the game– Sign-up for PlayStation Plus

View a collection • Explore themes tied to:– Game content

(e.g., “Assassins,” “Heroes” etc.)

– Music content (e.g., celebrity playlists)

– For sale / rental titles included in collection

– See related games on PlayStation Plus– Explore the artist on Music Unlimited

Watch a concert • Coldplay concert • Add Coldplay to your Music Unlimited favorites

Deep Product Integration Drives Up-Sell

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Privileged and Confidential

Sony already owns a premium content network, among only a handful in the market

An Out-of-the-Box Premium Video Experience, exclusive to Sony Devices

• Newer, high-quality, more movies

• Premium TV caliber original series

• Exclusive TV syndication window

• HD video delivery

• Fully integrated products driving up-sell to other SEN services (transactional movie, games, video / music subscriptions)

• Branded exclusively to Sony

A light version of the Network that provides network and marketing scale

• Smaller selection of movies

• No or second window original series

• Older, library TV

• Standard Def video delivery

• Marketing driver back to Sony from high-traffic platforms

• Keeps brand in competitive / mindshare space with Netflix, Hulu, Amazon, etc.

Crackle Plus, Exclusive to Sony

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