Strengthening and Differentiating the Sony Entertainment Network February 1, 2012

1. Strengthening and Differentiating the Sony Entertainment Network February 1, 2012

2. Key Initiatives and Status In December, SME had identified five initiatives to grow SEN Initiative Status For 12 months, charge fees which represent SME out-of-pocket costs only Price changes in effect starting Jan. 1 for full calendar year 1 Support SEN with thorough review of Music Unlimited service Focus group scheduled for week of Feb. 13; results to be ready by end of month 2 Leverage SME artists and content to further market and promote service Some programs already executed, and several more being developed; details follow 3 Leverage Vevo environment for marketing and potential integration Have further developed idea of Vevo channel on SEN; details follow 4 SME has account director in San Fran. whose primary focus is SEN; core senior mgmt team focused on pushing initiative in organization Assign dedicated infrastructure/ resources to support Music Unlimited 5 SME has also identified a sixth potential initiative Initiative just recently identified; details follow Insert QR code cards into SME CDs at a major retailer to drive to SEN service/app 6 1

3. Leveraging SME Artists & Content 3 SME has already started leveraging premier artists in SEN campaigns and events… Hot Chelle Rae M.U. Promo Event Natasha BedingfieldM.U. Promo Event/Demo Kellie Pickler Promo of SEN at CES • Large Music Unlimited branded session held in NYC • Passed out 5x7 cards with free SEN service trials • Reached younger demographic • Attendance of over 2000 to L.A. music session and Music Unlimited demo event • Generated interest within family demographic • SEN-branded performance and autograph signing at Sony CES booth • Interviews with Kellie (and Earth, Wind, & Fire) to be used in SEN social media

4. Additional Ideas to Leverage SME Artists & Content 3 …and is in discussions with its owned and distributed labels and artists for additional innovative programs • Exclusive content or pre-release streaming windows – currently in discussions with Mike Posner, The Dandy Warhols, and others • Curated playlists/radio channels– currently in discussions with Roc Nation about their artists; RED interested in creating monthly RED/Mustache Mania branded indie playlists; RED labels also interested in creating playlists in return for cross-promotion • Pre-release listening events with free-trial giveaways • Festival sponsorships: SEN already at Fan Fest, CMJ, etc. but could expand to major festivals such as Coachella (iTunes no longer partners with them), SXSW, Vans Warped, Mayhem, Bonnaroo, Lollapalooza; could promote channels with festival artists content (potentially live captured content) and hand out free trials

5. Additional Ideas (cont.) 3 • Create on-going series of live performances at Sony Style instead of only one-off events and capture exclusive content and stream on service; Fearless Records and The End Records (2 RED labels) and others interested in Sony Style events • Sponsor artist tour; can create channel with exclusive tour content (live performances, interviews) and hand out free trials at events • SEN can further leverage SME content for on-going marketing and to build awareness for programs above: • Sync licensing for use in promotional spots • Standard advertising and custom marketing programs on SME artist websites or RED branded consumer web properties

6. Unique VEVO/SEN Partnership 4 Opportunity to integrate a VEVO channel application across devices on Sony Entertainment Network • VEVO is the destination for premium music videos – library of more than 50,000 videos • Market leading position and massive user base • Online: #1 music platform by unique visitors over past 10 months, averaging 63M/month • Mobile: 13M app downloads, ~5M monthly active users • Engaged users – VEVO viewers watch an average of 15 music videos/month • VEVO brand synonymous with premium music video content

7. The VEVO Opportunity 4 • Create customized over-the-top VEVO channel application within Sony Entertainment Network service • On-demand access to VEVO’s 50K videos within the app • Creation of exclusive content and/or exclusive content windows for Sony VEVO application • Music related original programming • Current examples include VEVO24s, VEVO Stylized, and ASK:REPLY • Programming can be targeted toward key demographics for Sony Entertainment Network • Co-production and sponsorship of exclusive live streaming events

8. QR Code Cards in CDs – Consumer Experience 6 • Consumer purchases CD in store • Inside CD album is card with unique QR code • When QR code is scanned from user’s smartphone, user is sent to Sony Music Unlimited service where they can: • Download 2nd copy of album • Redeem 3 month free trial to Sony Music Unlimited service As easy as can be… Consumer benefits • Consumer gains digital copy of album • Value added benefit of Sony Music Unlimited free trial

9. Next Steps • Presentfocus group service review • RED planning demos of service with distributed labels • Continue to leverage SME marketing assets to help drive awareness and customer acquisition for SEN • Develop implementation plans for SEN / VEVO collaboration • Identify potential retailer for QR code promotion and then work towards implementation in next quarter