GreenlightTheatrical Business Development works in conjunction withUSHE Finance, Strategic Planning, Brand Marketing andMedia to determine the financial profitability of a film based onthe script or pitch, genre, attached talent, etc. At this point,a box-office forecast is determined as well as USHE'sfinancial commitment for the eventual home entertain-ment release. If the analysis is favorable, the movie is"greenlit"- approved to go into production. Similaranalyses are performed for Universal Studios HomeEntertainment Productions releases.

ProductionMovie is filmed.

DVD Production captures footage for bonus features basedon initial concepts and begins any necessary clearances withBusiness & Legal Affairs.

Pre-release Planning Based on available pre-release information (Gross Box

Office (GBO) forecast, synopsis/script, talent, theatricalrelease date, etc.), Brand Marketing determines streetdate and begins to identify marketing opportunities.

Finance, using Strategic Planning comp analysisand unit estimates, provides a range of unit andP&L (profit and loss statement) estimates.

Theatrical ReleaseFilm is released in theaters.

DVD Production deliversbonus-feature elements.

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Technical Operationsreceives feature filmmasters from the studioand begins compressionand authoring for Blu-rayt",DVD, EST (Electronic SellThrough) and VOD (Videoon Demand).

Pitch Title to AccountsSales pitches title to sell-through andrental accounts utilizing insights,analysis and initial volume forecastsfrom Category Management andworks with Customer Marketing to Iidentify promotions for retailers.Salesprograms, Customer Marketing andconsumer promotions are reviewed withBusiness & Legal Affairs.

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Design Creative ElementsBased on direction from the CTCSand CWO, Creative Services designsrequired consumer and trade elements(packaging, point-of-purchase materials,TV spots, trade ads, digital assets forESTIVOD, etc.).

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Define Brand StrategyWith the addition of the actual box-officeperformance as well as any TheatricalMarketing learnings (exit polls, TheatricalMarketing Research, etc.) Brand Marketingdevelops and communicates positioning andoverall Brand strategy.

Brand Marketing issues the Consumerand Trade Communication Strategy (CTCS)and Creative Work Order (CWO) in theMarketing Communication System (MCS).

Title budget is developed with Finance. Research conducts purchase intent research

where consumers' enthusiasm for a title, theirreasons for interest and their reactions tocreative executions-is measured.

Publicity, Digital Marketing and Mediaidentify opportunities and begin executingkey campaign strategies.

Approve Business Plan and P&L To determine optimal street date, Brand Marketing

uses analysis from Strategic Planning and worksclosely with Sales to monitor competitive datesand gather account feedback.

Brand Marketing works with Strategic Planning,Sales and Finance to develop the title businessplan, which includes unit goal, price, product mixand consumer promotions.

Business Communications begins internal andtrade announce and solicitation process.

Master Data takes approved program informationand updates existing pre-planning data that feedsall downstream systems across the company.

Fulfillment sends out serialized, watermarked DVDscreeners to customers at trade announce.

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orldwide Mastering andCheck Disk ApprovalTechnical Operations assemblesall disc elements (trailer pod, menus,feature, bonus features, audio tracks,subtitles, etc.) to create the CuttingMaster Format (CMF)-the master fromwhich all discs will be manufactured.Check discs of these grand masters arecreated, reviewed (for functionality, playercompatibility) and approved.

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Pre-order CloseDeadline for accounts to submit orders toensure that product will arrive by street date.

Customer Service manages sales orderprocessing and data management for traditionaland Vendor Managed Inventory (VMI) customers.

Sales confirms account promotions, circular adsand in-store placement.

Retail Operations determines store-levelallocation for VMI accounts based onCategory Management's comp title analysis.

Inventory Planning determines build quantitiesbased on customer orders, replenishmentcapacity and comp titles.

Manufacturing COMPONENT SOURCING: Materials Managementworks closely with Creative Services from the earlydesign phase to purchase and manage the inventoryof all required consumer packaging (litho, insert, sticker,premium item, etc.) and corrugate components usedin the assembly of product.

REPLICATION: Discs are replicated from the approvedCMFs. Most DVDs are manufactured at a facility inGuadalajara, Mexico, and are then shipped to one ofthree assembly and distribution facilities: one in Memphis,Tennessee, and two near Detroit, Michigan.

ASSEMBLY: Manufacturing and Logistics ensures thatall dry goods are delivered by the in-plant date to theassembly and distribution facilities where finished goodsare assembled and packed out for shipment.

Marketing Campaign Digital Marketing campaign launchesapproximately two months before

street date with the updated theatrical website and social networkingcampaign. Then, closer to street date, additional elements like searchand the e-mail blast are launched.

Consumers begin to see the Publicity team's press coverage(broadcast, online, print), talent interviews, promotions, eventsand grassroots efforts approximately four weeks before street date.

Media launches its campaign (TV,radio, online, Hispanic, print, out-of-home, etc.) approximately one week before street date.

DistributionOrder Managementensures product isshipped and deliveredon time at the lowestpossible cost.

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Merchandising executes plans to ensure productends up on floor and on shelf with the optimal streetdate execution .

Strategic Planning determines 26-week net shipforecast based on initial performance, which Financethen uses to forecast profitability of the title.

Credit monitors and verifies that customersare within their credit line and that billing isoccurring as expected on shipments.

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ReplenishmentBased on analysis of consumer sales,Retail Operations determines replenishmentquantities to maintain appropriate inventory atstore level for VMI accounts.

Post AnalysisStrategic Planning and Researchanalyze performance data and inputsfrom Brand Marketing, Finance,Customer Marketing and Sales toidentify hits, misses and key learningsto be applied to future releases.

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