3 January 2018 HY Corporate Credit HY Multi Sector.Media. Cable & Satellite a compelling one for consumers, especially given increased competition for audience's attention and today's average ticket prices north of $8.40. After an active slate of M&A in 2016 compliments of AMC (it acquired the #4 US exhibitor Carmike Cinemas. UK-based Odeon & UCI Cinemas, and Stockholm-based Nordic Cinema Group), 2017 was a bit quiet until just recently. On December 5th, UK-based Cineworld announced plans to acquire Regal for -$3.6bn cash. We calculate that this represents a healthy -9x seller multiple of 2018 EBITDA (-7.3x post-synergies). Looking to 2018, with Regal off the market and AMC digesting its 3 acquisitions, it may be up to Cinemark to drive further material consolidation. Noise around the theatrical window quieted down for a while, but heated up at times during 2017. Some studios are reportedly pushing for a premium video- on-demand offering that could shrink the theatrical window in some cases to just 2 weeks (versus today's typical 90-day window). The offerings would be priced at a significant premium relative to current on-demand options Based on recent commentary, it doesn't appear that any consensus has been reached amongst the studios, let alone between the studios and the theater groups, on the amount of time after theatrical release, pricing, and revenue shares/incentives, among others. We ultimately see any move to tighten windows being a mutually agreed upon decision between theater owners and studios, but it may take some time to get there. So with 2017 almost in the books, we look ahead with an optimistic eye to what 2018 has in store. In our view, all roads for the sector lead back to the release slate. We have earmarked select upcoming movies in the following chart. Highlights of tlx: Upcoming Movie Release Slate 1019 2018 In AAer M Last Key pne • Lap 'Mimi. Lan••14 rn. Crynalef it Ow Wawa two fawn° "nano. 2 (MIA Own twine''