General

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Questions

• General
• What do we most need to be more successful?
  Clear goals? Clear priorities? Identification
  of challenges? Organizational changes that
  address those challenges?
• Technology / control
• If PlayStation is a hero / priority platform,
  are there challenges that need to be addressed
  with regard to control of PlayStation services,
  firmware, client development, etc.
• Do we have a plan for apps
• Content
• How do we best manage content initiatives and
  engage the content Cos.
• Organization
• General description of organization and
  responsibilities
• How do we address the trade-offs between content
  resources close to content cos. (credible, near
  expertise) vs. in service co (better able to
  translate content into service)
• Economics of current services
• What direct costs keep services from being
  profitable today
• What level of marketing budget moves the needle
• Current initiatives
• Who can help us model a VOD uplift for Crackle
• Can we launch UV in-time to support titles in
  June

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STRATEGIC CONSIDERATIONS
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Fundamentals
Acquire Customers
Retain/Monetize

• Differentiated content
• Marketing

• Integrated service offering across Music, Video,
  Games
• Each offering is fully competitive (music
  competitive with Spotify)
• Killer UI (competitive with XBOX)

Execution

• Goals
• Priorities
• Success on one platform and territory first, then
  broaden

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Tactics

• Customer Acquisition
• Free / easy to discover content for customer
  acquisition
• Increased marketing spend
• Incorporation in Electronics TV ads
• Increased SNEI budget
• Increased support by SPE, SME, SCE
• Monetization
• Improved underlying services to capitalize on and
  monetize newly acquired customers
• Improved User Interface
• Single promotional landing page with clearly
  highlighted content for Music, Video, Games
• 3rd party services on PlayStation behind a pay
  wall (in-line with XBOX Live Gold)

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Customer Value Proposition Why Try / Why Buy
Music
PS (On PlayStation Only)
Video
Crackle (Free) Heavily Promoted and Exclusive
Films (Early EST, PVOD, UV)

• Why Try (Customer Acquisition)

Vivo (Free)
Gateway to well-known 3rd party services (e.g.,
Netflix)
Cross-Sell
Gateway to Other Services
Cross-Sell
Why Buy (Monetization)
Compelling Service (Music Unlimited)
PS required to access premium services
VOD EST
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Goals and Priorities

• Economic goals
• Discuss willingness to accept significant
  near-term investment to ensure we can create a
  highly competitive service which will eventually
  yield
• Significant service-level profits
• And, provide ancillary benefits to hardware
• Service and hardware prioritization
• First Convert more customers to active, paying
  SEN customers
• New accounts Increase of Sony Hardware
  customers that have SEN accounts
• Increase of current accounts that are active /
  paying
• Increase revenues from current active / paying
  accounts
• Then Use the service, content offerings, and
  customer enthusiasm to drive hardware sales

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Goals and Priorities

• Platform Goals
• First Establish a superior service with
  differentiated content on a hero platform,
  namely the PlayStation
• Then Broaden that service in a uniform fashion
  across device platforms
• Geographies for differentiated content
• First Introduce new offerings in U.S.
• Shortly after (a matter of months) Launch in 2-3
  other key markets Japan, Europe?
• Then Roll-out globally at a realistic pace

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Preliminary Timelines

• February Announce support for UV
• February Significant SPE and SME marketing
  support of existing services in the market
• May Announce Crackle concept and upcoming
  originals
• June First Exclusive and Early title
  available UV support necessary
• Fall Crackle and Vivo launch
• Biggest Exclusive and Early titles security
  needed by October
• Discuss Planned UI changes
• Planned improvements to the music service

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Areas to be Managed
Content
Platform
Service
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Must Haves

• Organizational
• Engage and leverage the entertainment companies
  and content initiatives discuss best method
• Single point of ownership over elements critical
  to SENs success discuss if this includes
  PlayStation services and firmware
• Financial
• Marketing budgets (in SNEI and Hardware with
  in-kind support from SPE and SME) sufficient
  to
• Generate wide-spread brand awareness for SEN
• Generate a specific understanding of what the
  service offers
• Promote specific content opportunities
• Technical
• Compelling UI roll-out (competitive with XBOX)
• Improvements to the music service

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Potential Service Changes to Discuss

• Potential Changes
• Vivo (current ad-supported version) on
  PlayStation immediately
• Build a solution for apps
• On the PlayStation, move the 3rd party services
  behind the PS pay wall keep Video Unlimited and
  Music Unlimited as peers to PS (not behind the
  PS pay wall) Crackle starts in front of pay
  wall
• Music service switches from 180 day trial of the
  light product, to a 30 day trial of the full
  product (and service is improved)
• Launch integrated search and UI across Music,
  Video, Games
• UV support by June
• Security for PVOD by October
• Projects that may now be duplicative
• Movie-a-day service (Crackle offering has
  greater volume free to consumer)
• Crunchy roll (incorporate Anime in Crackle)
• Discuss
• SEN TV

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