Confidential Draft

[DRAFT]

Overview of SPT Non-Scripted Television Strategy

May 2008

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• SPE is committed to expanding our non-scripted (game/reality) business

• Success requires global coordination and additional investments to achieve scale

relative to competitors

• Investments in the non-scripted business should be incremental to our current

commitments in traditional scripted comedies and dramas

• In addition to our Embassy Row and 2waytraffic acquisitions, SPT will invest in

partnerships with several Executive Producers/Production Companies

• We have an immediate opportunity to structure a partnership with Ryan Seacrest

Executive Summary

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Demand for Non-scripted Content Continues to Grow

8%

19%

14%

17%

22% 23%

0%

5%

10%

15%

20%

25%

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Perce

ntage

%

NOTE: A 6-year trend of reality/game shows as a percentage of primetime hours for the 5 major networks.

Game / Reality as a % of Primetime

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• Coordinate global approach across SPT/SPTI resources

– Capitalizes on SPTI infrastructure– Exploits SPT strength in creative

development, ad sales, distribution– Utilizes worldwide talent pool and

relationships

• Pursue brand-driven strategy to exploit International, Original, and Library formats

• Fulfill growing need for first-run original programming

• Retain full ownership of formats and minimize profit-sharing

• Mitigate production costs while still yielding quality product

• Growth – Broadcasters increasingly relying on hit formats

• Lower cost – Non scripted programs are usually less expensive to produce

• Interactivity – Polling, voting and games increase viewer engagement and time spent with show brands

• Global – International and domestic markets are linked (27% of scripted; 29% of reality broadcast pilots are adapted from international formats)

• Cross-platform – Shows offer ancillary profits (mobile games, online games, SMS)

Non-scripted Content is an Attractive Segment and a Fit with our Resources

Market Dynamic SPE Approach

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Investment is Crucial in Order to be CompetitiveNetworks are investing heavily in order to be a big player in the game/reality television business

Game/reality shows make up 16 of the top 40 primetime programs among Adults 18-49 and represent 40% of the top 20 primetime programs among Adults 18-49

Network Production/Term Deals

Est. Production / Term Deal Budget

% primetime hours dedicated to reality/game shows (08-09 Season)

Notable Series on Primetime Lineup (08-09 Season)

None. Partners with Warner Horizon, BBC, Fremantle and Endemol)

N/A 30%Dancing With the Stars, Wife Swap, Extreme Makeover: Home Edition

Magical Elves$10M (approx. over 2 years) 16% Biggest Loser, Deal or No Deal

None. Partners with Warner Horizon, BBC, Fremantle and Endemol)

N/A 40%Idol, Moment of Truth, Are You Smarter Than a 5th Grader?

Tom Forman, Jay Bienstock, Laurie Girion, Allison Grodner, Scot Einziger

$12.85M (approx. over 2 years and

including Forman's deal over 3 yrs.)

9% Survivor, Amazing Race

Jay Bienstock and Laurie Girion (broken out from CBS’ overall term deals data)

$3.6M (approx. over 2 years) 31% America's Next Top Model

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SPT Game/Reality Operational StructureTBD

“Concept Slide/Flow Chart – Simran to provide”

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•Led by Michael Davies, Embassy Row:– Creates new formats– Develops international formats– Manages a 3 person international acquisition team– Manages 1-3 3rd party producers and production

company partners in conjunction with SPT management

Domestic Resources

SPT Team

Embassy Row

Producers

Production Co. (Partners)

Ryan Seacrest

•Holly Jacobs & SPT create and exploit reality formats for all domestic outlets

•SPT adds 1-3 Executive Producers / Creators / Executors to provide additional capacity; closely coordinate with Davies

•Primarily focused on Network product

•SPT enters into an overall deal with a domestic production company to develop and produce cable and network shows

•SPT enters into a production overall with Ryan Seacreast to create formats and revitalize library titles through radio, television, and digital outlets

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•Primary distribution vehicle for formats in international markets

•Exploits its catalog of content (e.g., Millionaire)•Acquires and exploits new formats

International Resources

SPTI Team

2waytraffic

Embassy Row

Production Cos.(Owned)

•Hayley Babcock, Anthony Root, and SPTI acquire and exploit formats

•Adds 3 executives to acquire formats in international territories– South America– UK / Scandanavia– Australia

•Continued development of new formats by wholly owned production companies (e.g. Tuvaloo) and partners (e.g., Shine)

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Domestic

Category NameTerm

(Years)Cost/Yr.

(MM) Recoup (1)

Deficit (Y/N) SPT % (2) Notes

Games

Embassy Row (Michael Davies) Acquire $25-75 100% N 100% (3)

• Acquire Embassy Row • New York based global format and digital

production company • Created “Who Wants to be a Millionaire” &

“Power of 10”

Scott St. John 2 $3 100% N 50% • Executive Producer of Deal or No Deal

Reality / Competition

Tom Foreman 2 $2.25 100% N 50%• US based producer• Created “Kid Nation” & EP on “Extreme

Makeover Home Edition”

Allison Grodner 2 $2 100% N 50% • Executive Producer of “Big Brother”

Lisa Levenson 2 $1.5 100% N 50%• Executive Producer of “The Bachelor” and

“The Bachelorette”

Production Company

Ryan Seacrest 1 $5 100% N 50%

• Hosts the morning show on 102.7 KIIS FM in LA, host of “American Idol”, “E! News” co-host and host of American Top 40

• Overall deal similar to “Old Reveille Deal”

Rocket Science Laboratories 1 $5 100% N 50%

• Creator of “Temptation Island”, “Joe Millionaire”, “My Big Fat Obnoxious Fiance”

• Overall deal

(1) Recoupable as a cost of production in calculating profit participation.

(2) SPT’s interest in created shows.

(3) Includes Davies participation.

Building a Talent PoolBy expanding our relationships with leading producers, SPT can build a robust Game/Reality portfolio

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Ryan Seacrest Productions

Deal Structure

Working Relationship /

Scope of Projects

Status and Next Steps

• 3 year deal

• $1 - $2MM per year, fully recoupable against EP fees

• 50% crossed back-end

• Seacreast is exclusive to SPT as a prodcer / production co. on all new projects (existing on-air commitments are carved out)

• Seacrest creates exposure and advertising tie-ins for our library game shows on his radio show (and potentially idol); develops new shows

• At end of 3 years, option for him to host WOF (6 year deal, $10MM per year)

• We believe Seacrest has received multiple partnership proposals

• To remain competitive, we will need to [make a verbal indication of interest]