Transcript Summary for 1.6.12

Privileged and Confidential
SNEI and SPE discussion of next steps
January 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
1
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 3rd 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
2
Privileged and Confidential
Free to Consumer Programming Highlights
The service offers a selection of premium movies with exclusive content and TV quality
original series
Inside
Looks
Music and Live
Events
Original Shows
Curated Film and TV Content
• 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
3
Privileged and Confidential
Deep Product Integration Drives Up-Sell
Actions on Crackle Plus…
…Drives Actions on SEN
Search: Gracenote
drives discovery of
paid content
• Watch Spider-Man as an adsupported 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
4
Privileged and Confidential
Crackle Plus, Exclusive to Sony
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
A light version of the Network that
provides network and marketing scale
• Newer, high-quality, more movies
• Smaller selection of movies
• Premium TV caliber original series
• No or second window original series
• Exclusive TV syndication window
• Older, library TV
• HD video delivery
• Standard Def video delivery
• Fully integrated products driving up-sell
to other SEN services (transactional
movie, games, video / music
subscriptions)
• Marketing driver back to Sony
from high-traffic platforms
• Branded exclusively to Sony
• Keeps brand in competitive /
mindshare space with Netflix, Hulu,
Amazon, etc.
5