Overview of Sony Pictures Television Networksand

Indian Regional Channels Opportunity

Materials Presented to Sony Corporation’sBoard of Directors

July 18, 2011

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TV Networks are a key contributor to SPE’s overall profitability and growth, driven in large part by the success of Indian Networks

SPE’s portfolio of Indian Networks primarily targets Hindi and English speaking audiences in Northern India

Regional language channels in Southern India are forecast to have the fastest growth in ad revenues

Expanding into regional language channels would:− Give SPE’s networks a national footprint and improve competitive

positioning− Facilitate further growth in revenues− Enable the Sony brand to better connect with 40% of the Indian

population

SPE has an opportunity to acquire a controlling stake in ETV, the second largest group of regional channels in Southern India

Executive Summary

120 Feeds

159 Countries543+ Million HH

22 Languages

Sony Pictures Television Networks Portfolio

Highly successful network brands benefiting from a global infrastructure

Networks Importance to SPE Earnings and Growth

• Diversifies revenue and profit base with higher growth and margins than content business lines

• Provides steady cash flow from dual revenue streams of subscriber fees and advertising revenue

• Delivered 10-year CAGR of 17% for revenue and 43% for EBIT, with current EBIT margins of 21%

• Further exposes the Sony brand and builds long-term asset value

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($MMs)

SPT Networks Revenue and EBIT growth 2002-2010

FYE02 FYE03 FYE04 FYE05 FYE06 FYE07 FYE08 FYE09 FYE10 FYE110

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

Revenue EBIT

High Potential Indian Market• Strong economic growth

– India is expected to be among the top 3 economies in the world by 2050

– As GDP grows, consumers are attaining higher levels of disposable income

– India is the largest youth market in the world, comprised of approximately 340MM individuals under the age of 15

• High growth potential for TV market– Media Industry grew at a 12% CAGR for the last five years

– With an expected 10% revenue CAGR through 2015, Television is expected to be a primary driver of media growth

– India represents the third largest television audience in the world

– Today, of the 212MM households in India, 61% (130MM) are television households, leaving room for further penetration

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Indian Media Revenues Growth of Television Households

Source: PWC Report – Indian entertainment and media outlook 2010, FICCI-KPMG India Entertainment and Media Report

180 185 190 195 200 205 210 212

102 109 112 115 119 123 128 130

0

50

100

150`

200

250

2004 2005 2006 2007 2008 2009 2010 2011

Mill

ions

Households TV Households

194 129 512 161

10,506

3,6714,962

344 3231,580

571

3,4772,045

5,716

0

4,000

8,000

12,000

Television Film Print Radio Ad InternetAd

Animation& Gaming

Music

2009 2014

Hindi Movies and CricketLaunched in 1999

Family, Comedy, Entertainment Launched in 2005

Hollywood MoviesLaunched in 2006

(Channel 8)Bengali Movies

Launched in 2008

A bouquet of channels targeting Hindi, Bengali and English speaking audiences

Flagship General Entertainment Network

Launched in 1995

• Distribution through OneAlliance, 3rd largest platform in terms of number of channels, 2nd in terms of revenue

• One of the largest aggregators of Hindi programming in the world - over 12,000 hours in library

SPT Indian Networks

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• MSM: has two of the top five Hindi GE channels, making MSM a compelling offering for advertisers, and the two channels combined offer the same Gross Rating Points (GRPs) as the #1 channel

– SET: MSM India’s flagship channel has doubled its ratings over the last 18 months; SET fluctuates between being the #3 and #4 ranked general entertainment channel

– SAB: #1 channel among the tier 2 general entertainment channels (overall #5 position) and has taken over all of its competitors (Imagine TV, Star One, Sahara One)

– SET MAX: Consistently ranked the #1 movie channel in India

– PIX: Executing on a strategy to move from #3 to #2 by maximizing on a new output deal with SPT

• Distribution: Bouquet makes MSM highly desirable to cable operators

MSM Financial Performance ($MM)Revenue EBIT

Leader in the Indian Market

FYE09 FYE10 FYE11 FYE12 Bud-20

0

20

40

60

80

100

($13)

$16

$65

$91

FYE09 FYE10 FYE11 FYE12 Bud0

100

200

300

400

500

600

700

$261

$360 $397

$621

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High growth market: Highest forecast growth in ad revenues and combined viewership greater than the Hindi market

Diversification: Expanding footprint into regional language channels taps into a growing local advertising market that is different and more stable than the national market

Distribution: Strengthens MSM’s OneAlliance distribution bouquet by adding regional channels and making it a compelling offering in all parts of the country

Efficiencies: Ad sales, distribution infrastructure, and management services to be provided by MSM

Sony brand exposure: Re-branding channels with the Sony name would allow Sony to better connect with over 40% of the Indian population, many of whom are striving to own higher-end brands

Competitive positioning: SPE’s Indian Network holdings are at a competitive disadvantage without a larger portfolio of regional channels

Indian Regional Language Channels Represent an Opportunity to Drive Further Growth in SPE’s Indian Networks Business

• SPE has an opportunity to acquire a controlling stake in ETV, the second largest group of regional channels in Southern India

• ETV has 6 general entertainment channels which all rank in the top 3 in their markets, including Telugu, the second largest regional ad market

• All channels have successfully converted to subscription channels and generate dual revenue streams

ETV Investment Opportunity

MSM

SPE/ETV

ETV

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