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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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