Confidential Draft

[DRAFT]

SPE Worldwide Format Business

May 2008

2

• Non-scripted television represents a compelling growth opportunity for SPE

• Success requires global coordination and further investment to reach scale

• We need to manage our investments as a unified global business, including:

– Expanded portfolio of content producers

Embassy Row will serve as the cornerstone of domestic development;

complemented by investments in third-party EP and production company deals

2waytraffic and our equity stakes in smaller production companies will provide

international development capabilities

– Global acquisitions team, including executives from Embassy Row and 2waytraffic

– Dedicated staff to manage global ad integration

– International distribution led by 2waytraffic

Executive Summary

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Demand for Game and Reality Formats Continues to Grow

NOTE: A 6-year trend of reality/game shows as a percentage of primetime hours for the 5 major networks.

Game / Reality as a % of Primetime Hours

Game/reality shows make up 14 of the top 40 primetime programs among Adults 18-49 and represent 30% of the top 20 primetime programs among Adults 18-49

8%

19%

13%

16%

21%

24%

0%

5%

10%

15%

20%

25%

30%

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Per

cen

tag

e %

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• Non-scripted programs are usually less expensive to produce

Business Dynamics are Attractive

Growth• Format business continues to grow as broadcasters increasingly rely on hit

non-scripted formats

Lower Cost

Interactivity• Polling, voting and games increase viewer engagement and time spent with

show brands

Global• International and domestic markets are closely linked (30% of scripted; 29% of

reality broadcast pilots are adapted from international formats)

Cross-Platform • Shows offer ancillary profits (mobile games, online games, SMS)

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Competitors are Investing Beyond Captive Production Arms

Network Production/Term Deals

Est. Production / Term Deal Budget

% primetime hours dedicated to reality/game shows (08-09 Season)

Notable Series on Primetime Lineup (08-09 Season)

None. Partners with Warner Horizon, BBC, Fremantle and Endemol

N/A 30%Dancing With the Stars, Wife Swap, Extreme Makeover: Home Edition

Magical Elves$10M (approx. over 2 years) 16% Biggest Loser, Deal or No Deal

None. Partners with Warner Horizon, BBC, Fremantle and Endemol

N/A 40%Idol, Moment of Truth, Are You Smarter Than a 5th Grader?

Tom Forman, Jay Bienstock, Laurie Girion, Allison Grodner, Scot Einziger

$12.85M (approx. over 2 years and

including Forman's deal over 3 yrs.)

9% Survivor, Amazing Race

Jay Bienstock and Laurie Girion (broken out from CBS’ overall term deals data)

$3.6M (approx. over 2 years) 31% America's Next Top Model

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Domestic

CategoryPotential Partners

Term (Yrs.)

Cost / Year (MM) Genre Notes

AcquisitionEmbassy Row (Michael Davies) Acquire $25-75

Game Show/ Reality

• Acquire Embassy Row • New York based global format and digital production

company • Created “Who Wants to be a Millionaire” & “Power of 10”

Executive Producers (1-3 of these partners)

Scott St. John 2 $3 Game Show • Executive Producer of Deal or No Deal

Tom Foreman 2 $2.25Reality/

Competition

• US based producer • Created “Kid Nation” & EP on “Extreme Makeover Home

Edition”

Allison Grodner 2 $2Reality/

Competition• Executive Producer of “Big Brother”

Lisa Levenson 2 $1.5Reality/

Competition• Executive Producer of “The Bachelor” and “The

Bachelorette”

Production Company

Ryan Seacrest 3 $2Reality/

Competition

• Hosts the morning show on 102.7 KIIS FM in LA, host of “American Idol”, “E! News” co-host and host of American Top 40

• Overall deal similar to “Old Reveille Deal”

Production Company

Rocket Science Laboratories

1 $2-5Reality/

Competition

• Creator of “Temptation Island”, “Joe Millionaire”, “My Big Fat Obnoxious Fiancé”

• Overall deal

SPE Will Continue to Expand its Network of Domestic Producer Partnerships

Acquisition

Annual Spend

$25–75MM (one-time)

$2–6MM

$2MM

$2-5MM

$6–13MM

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SPE Global Game/Reality Operational Structure

Embassy Row

Game/Reality

Domestic Dev. Execs Cross-genre

Domestic Pdtn Cos. (Partners)

Cross-genre

Domestic EP Partners Reality/

Competition

2waytraffic Game Focus

International Dev. Execs Cross-genre

International Pdtn Cos. (1) (Investments) Cross-genre

Embassy Row 3 new hires (UK/Scandinavia; Australia; South America)

2waytraffic

(1) SPTI’s worldwide production and distribution offices are complemented by investments in international production companies including: Starling, France, 75%; Lean-M, Russia, 51%; Shine, UK, 20%; Tuvalu, Netherlands, 51%; Huaso, China, JV

Dedicated Staff (New hires)

2waytrafficInternational Distribution

Ad Integration

Content

Development

International Acquisitions

Manage all assets as a single business with a dedicated P&L