CONFIDENTIAL

Grouper Reporting and Cross-Sony Coordination

July 2006

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Grouper Reporting Alternatives

Options for Reporting

Benefits

Concerns

SPHE (B. Feingold) • End to end solution to market: Single organization manages distribution of TV and Film content and online services

• Minimal separation of service from licensing organization may create a “captive” service

• Service operation and advertising capabilities not resident in SPHE

• Distraction from broad licensing mission• Perceived conflict by SPHE customers

SPT (S. Mosko) • Licensor/licensee relationship to SPHE• Leverages ad sales and programming

expertise• Reduced complexity of managing avails

• Requires close coordination with SPHE to avoid third-party licensing conflicts

SPD (Y. Landau) • Leverages original content development, technology and distribution experience from prior online services

• Grouper and potentially all services seen as a standalone businesses unit

• Reduced access to SPHE or SPT content or market leverage

Corporate (M. Lynton, or direct report)

• Grouper and potentially all services seen as a standalone businesses unit

• Licensor/licensee relationship to SPHE• Visibility for integration with multiple

business units, especially ex-SPE• Reduced distraction to divisions

• Dedication of management time (if Michael)• Reduced access to SPHE or SPT content or

market leverage• Management turmoil and divisional

acceptance• Reduced support by divisions

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Ensuring a Managed Grouper Integration within Sony

Defined Cross-Sony Liaison

• Designated SPE senior manager (potentially reporting relationship) to act as liaison between Grouper and other Sony divisions

– Coordinate implementation of cross-Sony opportunities

– Collaborate with SPE to prioritize new opportunities

– Coordinate with T. Schaaff directly to identify software linkages

SPE Integration within

Key Divisions

• Monthly or as needed meetings with defined business unit team members (VP level) to identify and implement specific opportunities

– Theatrical Marketing: Promote new releases

– SPHE: Distribute film and TV content

– SPT: Program new online / on-demand channels; promote new shows

– SPD: Develop and distribute original content

• Senior SPE management meets quarterly to review progress and resolve issues

– SPHE (B. Feingold, S. Carey), SPD (Y. Landau), SPT (S. Mosko), Corporate (Lynton)

Defined Grouper Board

To Facilitate Coordination

• Board meets with Grouper management quarterly to review progress and resolve issues

– SPE (M. Lynton, B. Feingold or S. Carey, S. Mosko), SCA (T. Schaaff), Sony Hardware / Sony Connect (Y. Nakagawa or S. Banfield), SEL (S. Glasgow)

• Board reviews and prioritizes opportunities across Sony

– Devices: Bundle Grouper with video cameras for editing and sharing

– International Services: Support PSBG eyeVi initiative

– Connect: Drive traffic to Connect for purchased music