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Mid Range Plan Fiscal Years 2009 – 2012 October 2008

[DRAFT – as of 9/12]. Mid Range Plan Fiscal Years 2009 – 2012 October 2008. Executive Summary Core Programs Programming Digital Networks Strategic Investments Distribution & Licensing SPHE & SPTI Contribution to SPT Product Ad Sales Appendix. Executive Summary.

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Mid Range Plan Fiscal Years 2009 – 2012 October 2008

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  1. [DRAFT – as of 9/12] Mid Range PlanFiscal Years 2009 – 2012October 2008

  2. Executive Summary • Core Programs • Programming • Digital Networks • Strategic Investments • Distribution & Licensing • SPHE & SPTI Contribution to SPT Product • Ad Sales • Appendix

  3. Executive Summary • Adjust timing of broadcast sale of Seinfeld due to challenging local station economics • Create efficiencies and cost controls for soaps by moving to the lot and using new technology • Secure renewals for WOF / Jeopardy! and introduce new brand extensions Core Programs Programming • Grow our reality / format business through Embassy Row, 2waytraffic, and other producers • Develop new hit syndication shows in partnership with Harpo Productions • Build Crackle.com into an online entertainment destination and attractive outlet for advertisers • Integrate Crackle into overall studio and leverage marketing and content resources • Expand existing base of digital network distribution partners Digital Networks • Expand FEARnet into a linear network • Create new, targeted shows on GSN and integrate skill-based gaming • Explore HD as an entry point for a broader Sony linear network Strategic Investments • Use the successful launch of Dr. Oz to become official distributor of all future Harpo shows • Seek extension of Starz deal • Distribute additional product through our digital distribution network Distribution & Licensing Ad Sales • Aggressively build our digital ad sales business with Crackle as the foundation • Continue to pursue third party representation and acquisition of complementary businesses • Leverage our content and ad sales assets to build a cross-platform Sony ad network

  4. SPT Financial Summary EBIT Revenue ($ in MM) ($ in MM) $218 $218 $209 $203 $203 $201 $197 [$ TO BE UPDATED] [$ TO BE UPDATED] FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP NOTE: Traditional television excluding Digital Networks and Crackle

  5. Digital Networks and Distribution Financial Summary [$ TO INCLUDE CRAKCLE] EBIT Before Contribution Revenue ($ in MM) ($ in MM) [$ TO BE UPDATED] [$ TO BE UPDATED] FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP EBIT After Contribution ($ in MM) FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP [$ TO BE UPDATED]

  6. SPT Total Revenue From all sources of Domestic TV, Internet and Mobile revenue ($ in MM) $1,690 $1,621 $1,581 $1,491 $1,448 $1,432 $1,408 [$ TO BE UPDATED] FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP ($ in MM) $295 $265 $322 $335 Est. MPG/ACQ. Profit NOTE: Before Seinfeld producer share

  7. Net G&A Expenses & Headcount Net G&A Headcount [$ TO BE UPDATED] (1) PY MRP G&A & headcount restated for headcount included in SPHE/SPD which has since been transferred to DSD ($3.7M / 7 HC in PY09 and $4M / 7 HC in PY10)

  8. Executive Summary • Core Programs • Programming • Digital Networks • Strategic Investments • Distribution & Licensing • SPHE & SPTI Contribution to SPT Product • Ad Sales • Appendix

  9. Core Programs Strategy • Adjust timing of Seinfeld sale to approach broadcast partners under more favorable market conditions • Cultivate next generation of fans with digital / interactive offerings • Explore opportunities to move both shows to the Sony lot • Leverage digital technologies to produce daytime programming more efficiently CorePrograms • Secure station renewals and look to take back international distribution rights • Launch new mobile applications console games, and digital extensions to increase interactivity and drive viewership • Aggressively pursue Jay Leno to become the cornerstone of our TV business

  10. “Seinfeld” Strategy EBIT • Closed 3rd cycle cable renewal with Turner • Digital rights are non-exclusive • SPT retains ad inventory to sell or release back to Turner • Approaching Fox, Tribune, and new media outlets for 4th cycle broadcast renewal • Launching cross country Seinfeld college tour • Creating digital assets to keep audience engaged online and introduce program to new generation of viewers • Looking to exploit DST with iTunes, Amazon, etc [Sean] ($ in MM) MRP Assumptions • Despite ad sales inventory being priced among highest in syndication, expect gradual ratings erosion • 3rd cycle cleared in 99% HH, guaranteed double run in 86% • Domestic DVD sales through FY08: • $320MM since inception • $31MM from Season 8 and 9 releases in June and November 2007 • Projected sales: FY09: $23MM, FY10: $11MM and FY11: $9MM • FY10 assumes Fox renewal of $[XXX] per episode [$ TO BE UPDATED] [TO BE UPDATED]

  11. “The Young & the Restless” and “Days of our Lives” Strategy EBIT Overall • Create operational efficiencies and lower overall production costs • Integrate new digital production technology / equipment • Move shows to the lot to improve coordination and cost control • Work closely with SPTI to secure renewals and international sales The Young & The Restless • Close CBS renewal by end of 2009 • Continue nationwide talent search to generate publicity and boost ratings in key markets • Build on success of online magazine Restlesstyle.com by incorporating advertising / merchandising • Shoot on location in Paris to help grow local audience Days of Our Lives • Close three-year license fee agreement with NBC • Upgrade show to Hi-Def and improve overall production quality ($ in MM) $44 $42 $41 $41 $40 $40 $38 [$ TO BE UPDATED] MRP Assumptions The Young &The Restless: • Show renewed through August 2012 • License fees increase to 15% to $85MM while costs decrease [10%] • Show moves to Sony lot and ATL and BTL cross-collateralized Days of Our Lives: • Show renewed through March 2012 • License fees equal costs throughout period FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP

  12. “Wheel of Fortune” and “Jeopardy!” Strategy Overall • Wheel of Fortune celebrating its 5000th episode • Jeopardy! celebrating its 25th year in syndication • Both will be fully distributed in Canada under new 4-year deal • Look to take back int’l distribution rights from King World Wheel of Fortune: • Use brand integrations for prizing, promotions, and production support • Launch new game element (One Million Dollar Bonus Round) and home viewing prizes to further engage audience and keep show fresh • Introduce new cross-platform games, including WOF on PS3, World Winner skill-based online game, and WOF “Road Trip” on mobile • Wheel Watcher’s Club now has over [4.5MM] active users Jeopardy! • Introduce new show elements highlighting 25th season, including 2th anniversary sweepstakes and new features and vignettes • Tape first ever TV show live from the floor of CES in 2009 • Launch new PS3 game, World Winner skill-based game, and new Rock & Roll Jeopardy! mobile game • Distribute new mobile application (Play Jeopardy! Live) enabling viewers to play real-time • Show recently….[insert stat from Mumford] EBIT ($ in MM) $118 $102 $96 $92 $91 $91 $85 [$ TO BE UPDATED] MRP Assumptions • Production costs and CPM/ratings assumed at levels necessary to hold consistent profit margins • Contractual licenses through 11/12 FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP NOTE: FY10 variance to prior plan result of FY08 IGT advance

  13. Executive Summary • Core Programs • Programming • Digital Networks • Strategic Investments • Distribution & Licensing • SPHE & SPTI Contribution to SPT Product • Ad Sales • Appendix

  14. Additional Items to Address - Programming Following section needs to be updated to address: • Summary of TV market conditions • Opportunities (2way / demand for reality, increased demand for drams, Harpo relationship) • Challenges (successful broadcast drama, cost control on pilots / deficits; flat TV viewership) • Overall programming strategy • What are our specific areas of emphasis • By outlet • By genre • Why are these our areas of emphasis. Is it: • Expanding on genres where we’ve had success / have a strong reputation (network comedies) • Areas of increasing demand by cable and broadcast nets; areas with good economics, content that feeds 2way (reality) • Genres with great economics and syndication potential (comedies) • Filling gaps in our own product offering (network dramas) • Focusing on content that represents the greatest percentage of network hours (dramas) • Focusing on award-winning content (e.g., Damages) • Feeding new buyers of originals (e.g. Breaking Bad) • Taking advantage of our existing producer deals • What producer deals are we targeting for alternative programming • How are we thinking creatively about developing / producing shows (e.g., producing in London and bringing to the U.S.) • List of additional program development outside of overall deals

  15. SPT Programming Strategy • Maintain portfolio approach to scripted development and reality • Work closely with SPTI to create shows that take advantage of strong international demand • Help ensure that Dr. Oz is a success in order to secure rights to distribute all future Harpo product • Expand overall deals into Digital Programming (e.g., Brad Garrett, Kevin James) to help grow Crackle • Take multi-prong approach to acquiring and developing game / reality formats (2waytraffic, Sony library, Embassy Row, 3rd parties) • Leverage 2waytraffic for global distribution

  16. SPT’s Current Program Lineup Young & The Restless Rules of Engagement Can Openers (pilot) Jesse Stone: Thin Ice (MOW) Comanche Moon (mini) Stone Cold 6 (MOW) The Unusuals Mayflower (MOW) Peter Pan (mini) Shark Tank (pilot) All Star Mr. & Mrs. (pilot) ‘Til Death Sit Down Shut Up Days of Our Lives Lost in the 80’s (pilot] Syndication Wheel of Fortune Jeopardy! Dr. Oz Judge Hatchett Judge David Young Judge Karen 10 Items or Less My Boys Dave Caplan Project (pilot) Gifted Hands (mow) Time Heals (pilot) Boondocks The Gong Show Gay Robot (presentation) Breaking Bad S.I.S. (pilot/mow) Drop Dead Diva (pilot) The Gathering (mini) Living Proof (MOW) The 10th Circle (MOW) The Memory Keeper’s Daughter (MOW) Sex & Lies in Sin City (MOW) Flirting with Forty (MOW) The Shield Rescue Me Damages The Beast Danny Fricke (pilot) Spectacular Spider-Man Dragon Tales

  17. 2008/2009 Development Snapshot

  18. SPT Alternative Programming Strategy Sony Assets • Harness the power of Sony assets to create shows with brand value • Refresh and re-launch proven game shows from SPT’s extensive TV library • Create new reality formats from film and TV properties • User marquee talent / production companies to attract top reality producers • Source international formats for domestic production from 2waytraffic • Acquire Embassy Row • Expand on ER’s extensive development pipeline • Leverage Michael Davies’ international credibility to re-launch library product Embassy Row 3rd Party • Acquire 3rd party formats for domestic and international production and distribution • Seek global rights (format and distribution) to feed 2waytraffic pipeline • Expand network of domestic producer partnership • Invest $X-$Y in additional overall deals • Target 2-3 additional relationships • Invest in a one production company Producer Relationships [Zack & Jamie to Provide]

  19. Development Status of Alternative Programming Sony Assets Embassy Row 3rd Party Producer Relationships [Zack & Jamie to Provide]

  20. The Power of a Format-Based Show [FORMAT LIKE PAGE 9?] Wheel of Fortune demonstrates the international and cross-platform potential for game show formats • Station license fees and advertising revenue generate approximately 70% of total revenues • Brand integrations and sponsorships provide valuable prizing, promotions, and product support • Reruns on cable / GSN LinearProgram • Online casual, console (PS2), portable (PSP), and PC games drive revenues and promote viewership of the linear program • Launching PlayStation 3 and online skill-based game in FY09 • Currently #3 mobile game in US with new title (WOF Road Trip) launching in FY09 DigitalExtensions • Currently licensed in 15territories for broadcast (including new distribution deal in Canada) • Formatted in 22 countries generated $81MM in revenue to-date InternationalSales • Slot machine license (IGT) generated $228MM lifetime to date • Rights also licensed for terminal-based state lotteries, board games, and various merchandise Other

  21. Overall Term Deal Financials Net Cost Per Year # of Term Deals [$ TO BE UPDATED] [$ TO BE UPDATED] NOTE: Deals with total gross commitments of $1MM or more

  22. SPT Production Assumptions Network: • DAYS OF OUR LIVES / THE YOUNG & THE RESTLESS continuing throughout plan • RULES OF ENGAGEMENT and ‘TIL DEATH continue throughout the plan (6 seasons) • SIT DOWN, SHUT UP continues throughout the plan (4 seasons) • 7 pilots in 09/10 and 9 pilots per season thereafter, resulting in 3 series per year • One new series succeeds – 10/11 TBD Drama Cable: • RESCUE ME is ordered for a 6th season • THE BOONDOCKS continues throughout the plan (5 seasons) • DAMAGES and BREAKING BAD continue throughout the plan (5 seasons) • MY BOYS is ordered for a 4th season • THE BEAST continues throughout the plan (4 seasons) • 5 pilots per year, resulting in 2 series per year • One drama series succeeds in FY10 First-Run Syndication: • WHEEL OF FORTUNE & JEOPARDY! continue throughout plan • JUDGE KAREN MILLS and DAVID YOUNG continue throughout the plan (4 seasons and 5 seasons, respectively) • DR. OZ launches in 09/10 and continues throughout the plan (3 seasons) • TBD SYNDICATION launches in 10/11 and continues throughout the plan (2 seasons) Animation: • One new season produced each year MOW: • 9 movies and 1 miniseries per year

  23. Programming – New Series Investment & Development ($100) ($95) ($95) ($95) [$ TO BE UPDATED] Budget/Prior MRP ($82) ($83) ($90) Variance ($13) ($12) ($10)

  24. Executive Summary • Core Programs • Programming • Digital Networks • Strategic Investments • Distribution & Licensing • SPHE & SPTI Contribution to SPT Product • Ad Sales • Appendix

  25. Additional Items to Address – Digital Networks Following section needs to address • Open with a crisp, simple explanation of “What is Crackle?” What does the Crackle brand stand for / why do people come to the site • The one place online to see Sony movies, TV shows, minisodes, trailers, clips, and originals • Content / experience available on every screen / device • A place where the studio to discovers new talent and experiments with new ideas • Emphasize leveraging existing Sony content for much of our programming • Consider the HBO analogy • At launch, almost entirely studio movies • But the small percentage of originals grew quickly and defined the voice of the channel • How do we turn Crackle into a desired outlet for advertisers • Be clear that all other “digital network” brands (like Pix) live on Crackle first. Use a visual / diagram • Include a screen shot and explain where the site is headed • Describe other ways Crackle will use Sony’s resources • Exclusives • Relationships / talent • Marketing / promotions

  26. Purpose Programming Content Integration Crackle.com Overview • Online entertainment destination • Hub of our distribution network • Deeper, richer & more robust user experience • High-quality, advertiser friendly inventory • SPE digital originals developed specifically for Crackle • Film and TV library repurposed for Crackle’s target demo • Acquired / licensed content • Originals debut on Crackle • Programmed in series and genres • New shows released daily • Packaged into brands that can be easily syndicated • Single, streamlined organization located in Culver City • Better integrated into overall studio to take advantage of existing marketing and content resources

  27. Crackle’s 4 Tier Content Strategy Examples Description Tier • Angel of Death • Boom Studios • Quentin Tarantino • High production value, talent-driven vehicles with significant revenues in ancillary markets Tent Pole • Dating Brad Garrett • Jason Alexander • Barry Sonnenfeld • Series for studio-level talent (actors, producers) Stars of Today Original Content • Owen Benjamin • Michael Jai White • Sebastian Foucan Stars of Tomorrow • Shows from online “stars” witha proven audience • Men-in-Black (PIX) • Silver Spoons (Vault) • 3 Stooges (Minisodes) • Leverage SPT’s deep TV and film assets Library

  28. Crackle Programming Strategy • Being programmed as a true network, not just a website • Combines traditional TV scheduling with the on-demand aspects of the web • Programming in seasons and by genre • 4 seasons with at least one tent pole each season • Original series focused on three genres (comedy, action, reality) that are in-line with studio’s strengths • Premium content (TV and movies) programmed specifically for Crackle • New episodes debut daily, giving viewers multiple reasons to come back • Mix of series that debut new episodes same day each week (e.g., Video Village on Fridays) and daily shows (e.g., Rocket Boom, Penn Says)

  29. Leveraging Studio Assets to Further Expand Reach • Crackle provides SPE with promotional opportunities unavailable on 3rd party sites • SPE promotional elements provide Crackle with compelling and differentiated content • Consolidation of Crackle in Culver City will facilitate additional cross-studio opportunities • Commitments • MPG committed to spending $2MM over next 16 months on Crackle • Live streaming of premieres • Streaming HD trailers • Producing / programming podcasts • Opportunities for Further Support • (expand marketing support across divisions) • Original behind the scenes content from theatrical releases • DVD inserts • Promotion on www.sonypictures.com • Viewer-focused contests

  30. Vault Network Brands & Distribution • Crackle is the brand for all original programming • Library content (film & TV) is programmed into 3 network brands • PIX: Full length movies from SPE’s library • Minisodes: All your favorites TV shows, only shorter • SPT Vault: Classic action series and TV sitcoms • Each brand is broadly distributed across partners and platforms • Already secured premium placement on major outlets(e.g, Hulu, MySpace, YouTube, AOL) • Working with corporate technology / WPF to create scalable approach to further expand footprint • Each brand is programmed specifically for each distribution partner • Collaborating with PSN to create a specific version of Crackle • PSN receives compelling originals and repurposed content • Crackle receives valuable exposure

  31. Vault Distribution of our Networks • 40 implementations to-date with 16 online and mobile partners • Expanding to include all scale players and more high growth sites Tier I Existing Tier II In-Process

  32. Distribution Example [PLACEHOLDER] • Show how the content / experience differs for original programming on Crackle versus the same content distributed to our partner sites (e.g., Video Village on Crackle vs. Video Village on YouTube)

  33. Traffic Forecasts [PLACEHOLDER]

  34. Revenue Plan for Digital Networks [CARNEY / COUPER TO PROVIDE]

  35. Digital Networks Financials EBIT Before Contribution Revenue ($ in MM) ($ in MM) [$ TO BE UPDATED] [$ TO BE UPDATED] FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP

  36. Crackle Financial Summary EBIT Revenue ($ in MM) ($ in MM) [$ TO BE UPDATED] [$ TO BE UPDATED] FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP

  37. Executive Summary • Core Programs • Programming • Digital Networks • Strategic Investments • Distribution & Licensing • SPHE & SPTI Contribution to SPT Product • Ad Sales • Appendix

  38. GSN Summary [PLACEHOLDER – Contacting Brunell for GSN View] Challenges • Strengthen programming with the introduction of new, hit shows • Add more general rate advertisers • Stronger management team in place • Strategy to embrace older female demo has halted ratings erosion and laid the foundation for growth in both ratings and VPVH • Close coordination with FUN Games has transformed GSN Digital into a profitable growth platform for the channel • Redesigned and expanded GSN Live programming getting traction with both viewers and advertisers Improvements • Continue close coordination with FUN Games (likely through merger) and build properties that increase interactivity and enable multiplatform sponsorship • Increase investment in original programming to drive ratings/demo improvement • Refresh aging prime strips with contemporary acquired programming to increase ratings and support original series launches • Invest significantly in re-branding the look and feel of the network to target core demo and embrace game show fans • Improve affiliate positioning and minimize migrations through pricing and marketing initiatives CompanyPlans Next Stepsfor SPT • Negotiate fair value at which to acquire 50% of FUN Games or structure an arms length partnership between FUN and GSN

  39. FEARnet Summary • VOD only model is not viable long-term • Limits potential viewers, ad opportunities, and distributors capable of VOD • Need to increase ad sales across all platforms • Dynamic ad insertion required to maximize revenues Challenges • Continue to exploit FEARnet’s recent move to LA to improve coordination • Launch FEARnet linear with DirecTV investment as the critical first step • Ensure Comcast also launches linear version • Significantly expand ad sales • Expand inventory through linear channels • Need Comcast to provide leadership in dynamic ad insertion Initiatives • Comcast’s #1 VOD provider for Free Movies • 5 of the top 10 free movie titles on Comcast in 2008 are FEARnet titles • 2Q08 VOD views increased 50% over 2Q07 • Averaging 10M views per month Cable VODRatings • America’s #1 horror site • Average uniques for 2Q08 up 226% over 2Q07 • Uniques hit a historic high in July 2008, up 250% from July 2007 • FEARnet.com ranked as one of the top 15 movie sites by PCMagazine.com Web Ratings

  40. [NEED TO UPDATE ENTRY METHODS] HD Channel Opportunity • Near-term demand for HD has re-opened window for carriage of new networks • Increased capacity through new satellites and services (e.g., IPTV) • HD content being used as a differentiator among service providers • Limited window as more SDTV will become HDTV • Although HD could serve as an entry point, the opportunity lies in evolving to a true “Sony Entertainment Television Network” • Leverage the strength “Sony” as the brand for HD • Build on our expertise in original content, ad sales, and large film and TV library • Share programming with our digital assets, including Crackle and eventually PSN • We are evaluating three potential methods of entry • Lower investment “build” strategy: Use library to secure carriage and minimize investment; new channel on-par with MGM HD • Lower investment “partner” strategy: Invest in a smaller HD player (e.g., HD Net); use the Sony brand and library to reinvigorate and grow the channel • Significant investment “buy” strategy: Invest in a sizable channel (e.g., G4); better define the channels voice and grow the audience by leveraging all Sony assets

  41. Game Show Network – Financial Summary SPT Share of Net Income SPT Share of Dividends/(Funding) [$ TO BE UPDATED] [$ TO BE UPDATED] FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP

  42. FEARnet Financial Summary SPT Share of Cash Funding SPT Share of Net Loss/Income [$ TO BE UPDATED] [$ TO BE UPDATED] FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP

  43. Executive Summary • Core Programs • Programming • Digital Networks • Strategic Investments • Distribution & Licensing • SPHE & SPTI Contribution to SPT Product • Ad Sales • Appendix

  44. Distribution Strategy Overview • Leverage “all rights under one roof” to create additional revenue opportunities through new assets, rights, and windows • Launch Dr. Oz as the anchor for our first run syndication business and grow partnership to include all future Harpo shows • Secure additional double runs and better time slots for our court shows • Use marketing and new product offerings (HD, early windows) to grow demand for VOD and improve economics • Renew Starz Pay TV deal to extend our above-market relationship • Expand footprint of digital product and partners; continue to outperform our competition in merchandising and operations

  45. World-Class Execution • Established systematic approach to maximizing value of assets across windows and partners • Evaluate each right separately to determine its fair value and best use • Carve-out rights, where appropriate, to benefit our digital networks • Enabled negotiations of both digital and linear rights for third cycle cable sale for Seinfeld • Institutionalizing approach of managing “all rights under one roof” • Developing backend platform (Ventana) to manage avails • Creating new offer template to facilitate cable sales • Launching dual windows, early / HD VOD, and digital extensions to drive revenue • Applying approach to an expanding base of content • Off broadcast (Rules of Engagement, Power of 10) • Off cable (Rescue Me, Damages, My Boys) • 1st run (Judge Karen Mills) • Internet developed shows (Angel of Death) • Library product online and on mobile (Who’s the Boss?, Monty Python) • Third party acquisitions (Just for Laughs) • New library strategies (Minisode network, Cinemactive)

  46. Distribution Sales – Total Licensing Revenue SPT will generate [$745] million in total current and library sales for SPE ($ in MM) $937 $799 $793 $748 $751 $745 $680 [$ TO BE UPDATED] FY08 Q2/BDGT. FY09 MRP/PRIOR FY10 MRP/PRIOR FY11 MRP

  47. Syndication Market Dynamic MRP Initiatives • While national ad sales growth is flat, local advertising is struggling • Local station market is challenged with stations generally decreasing license fees • To succeed, new shows need to be established brands • Transition to digital (Feb ’09) opening up valuable real estate • Stations looking to build websites through exclusive and sponsorable content • Launch Dr. Oz in Fall ’09 as the cornerstone of our first run syndication business • Sell on market-by-market to maximize show value (best time slot, station, etc) • Partner with stations to create a Dr. Oz network (combining linear, digital, and physical reach) • Build off recent successes of court shows and secure additional double runs and better time slots in key markets • Provide local stations with non-exclusive streaming rights (with inventory hold backs at our discretion) • Leverage digital transition as opportunity to increase library sales

  48. Harpo / Dr. Oz Strategy EBIT • SPT has entered into a distribution relationship with Harpo, one of the most successful independent producers in TV history • Dr. Oz will be the first Harpo show distributed by SPT • Show launches in the Fall ’09; will benefit from the power of the Oprah platform • Complemented by an immersive online experience that will generate meaningful traffic and revenues • Dr. Oz will serve as a foundation for a deeper partnership that has the potential to redefine SPT’s first run syndication business • Provides access to top talent and shows through MRP time horizon • Gets us in business with top 3 affiliates [$ PLACEHOLDERS] MRP Assumptions • Assumption 1 • Assumption 2 • Assumption 3 • Etc.

  49. Syndication - Revenues ($ in MM) [$ TO BE UPDATED]

  50. Free TV / Basic Cable Market Dynamic MRP Initiatives • Aggressively sell theatrical releases and library product • Set individual library sales goals for each sales person • Sell King of Queens in second cable cycle • Sell showcase packages • Create new market by targeting smaller cable networks with tailored packages • Create additional windows, assets, and rights • Dual windows (e.g., Married with Children) • Multi-platform simulcasting and multiplexing • Streaming rights to existing episodes • New digital assets (e.g., Minisodes) • Interactive games (e.g., Cinemactive) • Library product faces challenges • Networks are more selective in what library product they buy due to increased appetite for original programming • Our library continues to age • Increasing number of viewing opportunities in earlier windows limits ability to maintain value in Free TV • Network audiences continue to fragment • Continued growth in the number of cable platforms and original programming • Increased competition from emerging digital platforms and new entertainment options • To remain competitive, networks seeking new digital assets, rights, and windows

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