Citi Corporate & Investment Banking

Company Overview November 9, 2012

Strictly Private and Confidential Situation Update

 In August 2012, Liberty Media announced plans to separate the assets of Starz through a spin-off

Situation Update – Form 10 has been filed with the SEC and spin-off is expected by YE 2012

 We understand Liberty would entertain any acquisition proposals for Starz

 #3 premium TV Network, with 55mm subs across 17 networks

 Subscriber growth rates and overall ratings remain stable

 Core content agreements with Sony and Disney have been successfully extended through 2016 and 2015, respectively Highlights  Starz recently announced it is renewing deals with 2 key distributors who cover 30% of its footprint at lower rates, resulting in a 3% reduction in revenue. After the initial cuts, rates paid by these distributors are expected to resume growing

 Developing digital subscription services (i.e. PLAY)

 Ability to develop quality original programming vs. HBO/Showtime

Considerations  Ongoing dependency on studios for content

 Long term subscriber growth rates

 Recent Wall Street sum-of-the-parts analysis point to a value for Starz of approximately 7.0x

Valuation Estimate  Other premium pay TV networks valued at higher multiples including HBO (8.5x) and Showtime (9.3x)

1 Liberty Media Structure Overview

Liberty Media 0

1 Liberty Capital 0 Liberty Interactive Liberty Starz 2 (LCAPA Tracking Stock) (LINTA Tracking Stock) Assets include: Atlanta Braves, (LSTZA Tracking Stock) Assets include: QVC, HSN, SiriusXM, positions in Assets include: Starz, which Expedia, TripAdvisor Live Nation, Time Warner, includes Encore and Starz Media and other investments and other investments Liberty Interactive Liberty Capital formally and Starz separated tracking stocks combined into Liberty Interactive Liberty Media Corp. Liberty Media (LINTA asset-backed stock) (LMCA asset-backed stock) asset-backed

1 stock 1 0 2 Liberty Capital Liberty Starz (Subsidiary) (Subsidiary) Asset-backed Starz to be spun stock has off as new become two standalone tracking asset-backed stocks stock Liberty Interactive New Liberty Starz (New asset-backed stock) (New asset-backed stock)

Key Assets Ownership Key Assets Ownership

Atlanta Braves 100% Starz 100%

2 SiriusXM 49 1

0 Liberty Interactive Liberty Ventures

2 (LINTA tracking stock) (LVNTA tracking stock) Live Nation 26 Viacom 1 Key Assets Ownership Key Assets Ownership Time Warner 1 QVC 100% Expedia (1) 17% Time Warner 1 HSN 36 TripAdvisor (1) 18 Cable

Source: Company filings and Wall Street research. 2 (1) Represents an approximate 55% voting interest. Liberty Starz Overview

 Flagship network with 6 premium channel offerings – All 6 channels offered in HD

 Growing line-up original programming – Original programming hits include shows Spartacus, Boss and Torchwood

 First run output and library films

 20.7 million subscribers as of June 30, 2012

 8 premium channel offerings

 Based on genre themes

 First-run movies and classic contemporary movies

 34.2 million subscribers as of June 30, 2012

 3 premium channel offerings

 Indieplex and Retroplex offered in HD

 Variety of library content, art house, independent films and classic movies

 24.1 million subscribers as of June 30, 2012

3 Liberty Starz Content Agreements

Overview Summary of Key Agreements

 Starz’s first-run movie content comes primarily from  Extended agreement through 2015 (1) arrangements with Disney, Sony, and Liberty subsidiary  Pays programming fees for films that have been Overture Films released theatrically, but are not available for exhibition until a future date – Starz also licenses library content comprised of older, previously released theatrical films from many of  Extended agreement through 2016; includes Hollywood’s major studios, including Sony, Fox, Warner Columbia, Screen Gems, and Brothers, MGM and Universal Classics

(1) Excludes Dreamworks live action films.  In August 2011, Starz entered into an agreement with BBC Worldwide Productions to co-develop, finance, and produce original content Studio Deals amongst Premium Pay TV Networks

– Deal lowers Starz’s production costs and increases the  Starz gains some protection when negotiating studio deals as it is not expected number of content hours owned or affiliated with a major competitor of one of the other studios

 In March 2010, renewed agreement with Disney-ABC Studios Studio Owner Affiliation Owner / Network Domestic for access to all Disney releases except those Warner Bros. Time Warner HBO Common Ownership under DreamWorks and Miramax banners (goes to 2015); 20th Cent. Corp HBO -- also renewed deal with Sony in January 2009 (goes to 2016) Paramount Viacom Common Ownership Buena Vista Disney Starz -- Columbia Sony Starz -- Universal NBC / HBO -- DreamWorks Animation Public HBO -- MGM Private Epix Common Ownership DreamWorks SKG Disney Showtime -- The Weinstein Company Private Showtime -- Public Epix Common Ownership

4 Original Programming Investment Driving Ratings Higher

Significant Investment in Original Series Liberty Starz Programming Costs ($ in millions)  Hired Chris Albrecht as CEO in January 2010 $1,000.0 – Oversaw creation of Sex & The City, The Sopranos, Entourage, 2% R: ~2 and The Wire among others during 22 year tenure at HBO . CAG Prog $800.0 Orig.  The company expects to create five to six series/year or 50-60 hours ) of programming through 2014, which will be a source of s $600.0 n o differentiation and branding i l l i M

n $400.0  Spartacus debuted in 2009 and will air its last season in 2013 I (

 Torchwood premiered to 2 million viewers in July ’11 $200.0 – Co-produced with BBC Worldwide $0.0 5 6 7 8 9 0 1 E E E E E E E E E E

 Boss, starring Kelsey Grammar, premiered to 659 thousand viewers 0 0 0 0 0 1 1 2 3 4 5 8 9 0 1 6 7 0 0 0 0 0 0 0 1 1 1 1 1 2 1 1 1 2 2 2 2 2 2 2 2 0 0 0 in October 2011 (currently in second season) 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 Original Programming Movie Acquisition Costs  Da Vinci’s Demons’, a new original series, is set to premier in the spring. Starz has an agreement with the BBC to distribute Da Vinci’s Source: Wall Street research. Demons starting Spring 2013 Ratings Improvement (Average Primetime Rating)

0.60

0.50

0.40

0.30

0.20

0.10

0.00 Sep-07 Jul-08 May-09 Mar-10 Jan-11 Nov-11 ShowTime Starz HBO

Source: Company filings, Wall Street research, Nielsen. 5 Liberty Starz Distribution Agreements Most distribution contracts have been renegotiated to include digital content rights and have roughly 3-5 years remaining.

Disclosed Distribution Agreements

Distributor Renewal Date (1) Expiration Date Description / Background

 Contract expired in December 2009, carriage currently on month a to Dec-09 In Discussions month basis

 New deal with AT&T expands U-verse’s opportunity to stream Starz Feb-12 2017 programming online

May-03 Undisclosed  Last agreement signed in May-03; likely to renew shortly

 In June ’10, Starz originally extended through 2015 and allowed Encore to be shown on a month to month basis Jun-10 2015  Deals renegotiated in Oct ’10 to cover both Starz and Encore; new deal gave Comcast digital rights to content

May-12 2017  Launched Starz Play and Encore Play with Cox

Jun-09 Jun-15  Carrying full suite of Starz Encore movie channels

 New deal provides for DIRECTV to continue to offer the Starz Entertainment premium channels, HD, and on-demand services, and grants May-12 2017 DIRECTV the rights to offer Starz Online and Encore Online services on its DIRECTV Everywhere service

FiOS May-08 May-13  Exclusive consignment deal covering all FiOS subscribers

Source: Company filings and public news articles. (1) Represents date of last publicly disclosed agreement between Starz and each content distributor. 6 Premium TV Comparison

&

Starz Encore Showtime HBO EPIX

2012E Subscribers55.3 75.6 40.0 10.3 '09A - '12E Growth5.2% 7.2% (0.9%) NM

2012E ARPU$2.46 $1.75 $9.62 $3.59

'09A - '12E Growth(3.1%) 1.2% 6.5% NM

Revenue

2012E Revenue$1,632 $1,587 $4,616 $444

'09A - '12E Growth2.0% 8.5% 5.5% NM

12E - '15E Growth0.2% 3.1% 5.5% 7.3%

EBITDA

2012E EBITDA$439 $746 $1,494 $175

EBITDA Margin26.9% 47.0% 32.4% 39.5%

2013E EBITDA$399 $784 $1,622 $237

EBITDA Margin24.6% 47.2% 33.3% 44.7%

12E - '15E Growth(5.0%) 3.5% 3.2% 5.7%

2011 Avg Primetime Ratings0.23 0.10 0.31 NA

Source: Kagan, Wall Street research. 7 Starz – Operating Metrics Subscribers ARPU (in millions) CAGR: (1.8%) CAGR: 2.9% $2.70 $2.66 $2.55 $2.46 55.3 55.7 56.1 56.5 $2.43 $2.42 $2.42 51.0 52.8 47.5

2009A 2010A 2011A 2012E 2013E 2014E 2015E 2009A 2010A 2011A 2012E 2013E 2014E 2015E

Revenue / Adjusted EBITDA Capex ($ in millions) ($ in millions) $10 Adjusted EBITDA Revenue ’09-’15 CAGR: $8 $8 $8 $8 $8 $7

$1,615 $1,632 $1,626 $1,622 $1,632 $1,641 1.1% $1,540

$449 $439 $283 $343 $399 $388 $376 4.8%

2009A 2010A 2011A 2012E 2013E 2014E 2015E 2009A 2010A 2011A 2012E 2013E 2014E 2015E EBITDA Margin: EBITDA – Capex:

18.4% 21.1% 27.8% 26.9% 24.6% 23.8% 22.9% $273 $336 $441 $431 $391 $380 $368

Source: Wall Street research. Note: Adjusted EBITDA adds back stock based compensation cost. 8 Wall Street Valuation Perspectives

Starz: Sum-of-the-Parts Summary Other Premium Pay TV Sum-of-the-Parts Summary ($ in millions) ($ in millions)

FV/ Date Broker FV 2013E EBITDA FV / Date Broker FV 2013E EBITDA 11/8/2012 Morgan Stanley $20,015 8.7x

10/9/2012 Deutsche Bank $3,416 7.6x 11/7/2012 Barclays Capital 13,449 8.3

8/13/2012 Morgan Stanley 2,975 6.2 Average $16,732 8.5x

8/6/2012 Macquarie 3,337 7.3

Average $3,243 7.0x

FV / Date Broker FV 2013E EBITDA

11/8/2012 Barclays Capital $7,414 8.3x

10/25/2012 Morgan Stanley 8,310 10.3

Average $7,862 9.3x

Source: Wall Street research. 9 Potential Buyers

Other Premium Pay TV Studios Digital Content Distributors

(1)

(2)

(1) Universal agreement with HBO expires in 2015.

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