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Sony Digital Cinema Business

Sony Digital Cinema Business. Topics for Today Market Outlook ; Digital Conversion VPF (Virtual Print Fee) Business Opportunities beyond Cinema. Toshihiko Ohnishi Senior Vice President Professional Solutions of America Sony Electronics Inc. 1. Market Outlook.

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Sony Digital Cinema Business

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  1. Sony Digital Cinema Business • Topics for Today • Market Outlook ; Digital Conversion • VPF (Virtual Print Fee) • Business Opportunities beyond Cinema Toshihiko Ohnishi Senior Vice President Professional Solutions of America Sony Electronics Inc. 1

  2. Market Outlook Worldwide Number of Screens (2009 Estimation, digital screens in ( )) World Wide : 149,300 (16,405, 11%) Korea 2,800 (300) Europe China North America Japan 2,100 (400) 37,800 (4,580) 35,200 (1,300) 3,400 (300) 39,600 (7,900+) S.E. Asia India 4,000 (200) Source: Screen Digest May. 2009 Latin America 10,100 (150) Australia 9,000 (300) 1,900 (200) Source: Screen Digest Dec. 2009 (# of Europe is updated based on Screen Digest Mar. 2010) 2

  3. Market Outlook US Box Office Trend $7.50 ($Million) (Million) $5.39 UPDATING / VERIFYING Source: Box Office Mojo (http://boxofficemojo.com/) 3

  4. Market Outlook 3D movies deliver x3 revenue per screen in opening weekend WW Digital Projector (‘000) ($M) 44% 28% UPDATING / VERIFYING 20% 10% 2009: 17 3D movies released 2010: 14 3D movies scheduled Source: Screen Digest May 2009 Presentation 4

  5. Market Outlook Movie Industry in US - Overview - Studios Exhibitors 2000+ Hollywood Major ～2000 Independent/Others 5

  6. Overview of “VPF Program” VPF Products Supplier • Total Cost of Ownership for Digital Equipment Consists of ; • Projector & Peripherals (incl. Shipping, Installation) • Server & Peripherals (Initial + Replacement) • Replacement Parts (Lamps. Reflectors, Lenses) • On-going Maintenance • Interests 2K Projector Manufacturers SONY 4K Projector VPF (Virtual Print Fee) Server & etc. Manufactures • Products Supply Studio Integrator/Service Provider VPF SONY DCSS (Digital Cinema Solutions & Services) DCIP Cinedigm • Lease • Integration/Maintenance • (Solutions & Services) • Source of Funding ; • Studios VPF (per title, per screen) • Exhibitor Contribution (Maintenance, Replacement Parts, etc.) Exhibitor/Theater Chain Digital Content Distribution 6

  7. Overview of “VPF Program” VPF Products Supplier • Total Cost of Ownership for Digital Equipment Consists of ; • Projector & Peripherals (incl. Shipping, Installation) • Server & Peripherals (Initial + Replacement) • Replacement Parts (Lamps. Reflectors, Lenses) • On-going Maintenance • Interests VPF agreement signed with all 6 major studios and 2 mini-majors 2K Projector Manufacturers SONY 4K Projector VPF (Virtual Print Fee) Server & etc. Manufactures • Products Supply • SEL-DCIP-AMC Purchase agreement signed • SEL-DCIP-Regal Purchase agreement signed • DCIP-JPMC financing closed ($660M, 10,000 systems) Studio Integrator/Service Provider VPF SONY DCSS (Digital Cinema Solutions & Services) DCIP Master Lease agreement signed with 10 theatre chains Cinedigm • Lease • Integration/Maintenance • (Solutions & Services) • Source of Funding ; • Studios VPF (per title, screen) • Exhibitor Contribution (Maintenance, Replacement Parts, etc.) Exhibitor/Theater Chain Digital Content Distribution 7

  8. Business Opportunities beyond Cinema • Simultaneous in 4 cities - Chicago, LA, San Francisco & Seattle • 2 Day Event, Monday/Tuesday • Sold Out All Available Seats 8

  9. Business Opportunities beyond Cinema Live Music Events In Theater At Home Premium events, DVD sale on site 9

  10. Sony Offers Variety of Services to the Theatres Business Opportunities beyond Cinema Gaming lounges Digital Infrastructure 4K Projector Menu Boards Digital Signage Big Screen Gaming Alternative Content: Music Series 10

  11. Business Opportunities beyond Cinema Pre-show Ad. Gaming Event Live 3D Content Security System Managed Service Digital Signage Big Screen Gaming Managed Service CRM/Loyalty Managed Service Alternative Content CRM/Loyalty Digital Signage PS Hardware Auditorium Digital Signage PlayStation Lounge Concession Stand Lobby Installation & Maintenance VPF Security System Other Digital Equipment Managed Service 4K Projector CRM/Loyalty Projector Booth Digital Signage Box Office Theater Floorplan 11

  12. Realize Total 4K Workflow Production/Post Production Distribution Viewing MAY ELIMINATE THESE SLIDES 12

  13. Thank you!! 13

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