Curtis Marvis, President of Digital Media, Lionsgate, reveals how film studios are getting into the business of tackling the digital space. Learn about the creation of the Weeds Social Club and the Dirty Dancing Social Game, which became the #2 fastest growing facebook game in the world within two weeks of its launch. Lionsgate produces critically acclaimed television titles Mad Men, Weeds, and Nurse Jackie, and has released numerous box office hits including THE EXPENDABLES, THE LAST EXORCISM, SAW 3D, and PRECIOUS. Lionsgate continues to lead the way as an independent producer and distributor of motion pictures and television programming as it explores new opportunities in multi-platform and digitally delivered content.

4. Digital Media: Growth and Market Opportunity MONETIZATION Providers of web, EST, and OTT content are successfully monetizing this growing online viewer base The OTT market will grow into a $16B+ industry by 2016 Total OTT market size ($B) Source: IMS Research, “Over the Top Video – Service Delivery and Business Models” 43% CAGR Online advertising spending is expected to grow significantly, thereby supporting free-to-view (e.g. YouTube) models Total Online Advertising spend worldwide ($B) Note: includes banner ads, search, rich media, video, classifieds, sponsorships, lead generation, and email; excludes mobile ad spending Source: eMarketer, June 2010 10% CAGR Electronic Sell-Through spend is likewise expected to grow, driven by adoption of Ultraviolet and digital locker platforms Total Electronic Sell-through (EST) spend ($M) Ultraviolet is the digital locker initiative supported by Lionsgate, Paramount, Fox, Warner, Sony, and Universal, as well as Netflix, Comcast, Best Buy, Roxio, and many CE companies “ Buy once, play anywhere”: UV allows user to upload digital copies of content from disc or EST into a locker to view from nearly any device Source: Adams 21% CAGR

5. *Total screens available to US consumers (M) 46M 60M 79M 90M 169M 281M 330M 811M 1.9B Massive Growth in OTT Distribution to connected devices, including tablets and smartphones More Screens = More Content The typical home of 2.6 people has an average of 24 gadgets, including at least one smartphone. There are now more wireless devices in the US then there are people: 327.6M

6. TV is WHAT You ’ re Watching Not HOW you ’ re watching

7. Growth around Apps and Social Games New content model for consumers ($38B by 2015)

9. U.S. Smartphone Users Now Spend More Time with Mobile Apps than they do Using the Desktop and Mobile Web

10. “ Every 12 to 18 months, the Amount of Information Being Shared by People on the Web will Double.” ZUCKERBERG’S LAW

12. Facebook PLATFORM POWER CITYVILLE REACHED 100,000,000 NEW USERS IN JUST 30 DAYS

13. The New Online Currencies As of July 1, 2011 – USING FACEBOOK CREDITS WILL BE “MANDATORY” FOR INJECTING REAL MONEY INTO GAMES

14. WHO SHOULD YOU TRUST?

17. Brand to Consumer Offerings Digital Media Content and Distribution Original & derivative Web series, Branded Channels, Micro-nets and specials Facebook Social Games and Apps/Games Transactional EST and VOD via B to C

19. STREAMING MOVIES ON FACEBOOK THE WISDOM OF “ FRIENDS ” HAS TURNED OUT TO BE FAR MORE VALUABLE THAN THE WISDOM OF CROWDS

23. Games Rewards Commerce International Entertainment On-Demand Theatrical LIVE Music Sports Advertising Brands Social/Mobile Online/Casual Hard-core TV LIVE Cloud-Based Mobile & Wireless Online, TV Electronic Coupons Check-in Social Networking Text Alerts Geo-Location Promotions Affinity Cards Discounts Mileage Plus (DISTRIBUTION) Over-the-Top National Retailers PC & iPad Services BD Live Disc Social Networks Cable & Telco Operators Gaming Consoles Consumer Electronic Manufacturers DBS Web Online Product Placement Direct Response Data Analytics The Integrated Digital Franchise 7 Principles Mobile Social Influence Sharing Reward Curation Entertainment BRAND X

24. Long-term INNOVATION: The Five-Year Plan The Next Five Years: Transition from Adaptation to Innovation The short-term tactical plan is Lionsgate’s adaptation to the digital media landscape… ..but does a long-term opportunity exist for Lionsgate to be a true innovator in this space? Short-term ADAPTATION: The One-Year Plan Innovation engine (Digital incubator / Lionsgate Labs / or venture fund) + New digital operating model and strategy + +Partnerships with Silicon Valley companies + Appropriate resource investments Individual initiatives driven out of Digital Media group based on market needs and opportunities Launch of LG-branded micronetworks New social games roll-out New partnerships and games with mobile app developers Facebook monetization Lionsgate-branded social experience platforms Gamification of existing content (e.g. interactive Mad Men on iPad) Fully interactive storytelling (e.g. using Microsoft Kinect) Innovative advertising delivery models Sample initiatives Sample initiatives

25. Thank You! Open Q and A