Creating New Value for Television The Vision Behind Founding HAROiD (Part 1)

HAROiD (Haroid) was established through a partnership between Nippon TV, which possesses expertise in viewer-participation programs like JoinTV, and Basquille, known for its strength in interactive content production.

Dentsu Inc. is also providing expertise in advertising, marketing, and content through its investment. They will support the development of new solutions and advertising products originating from television.

This time, HAROiD President and CEO Seiya Ando, Basquille Representative and HAROiD CCO Masayoshi Park, and Dentsu Inc.'s Hideaki Haruta, involved in business development, discussed the future of HAROiD and the path ahead for television.

 

HAROiD: Creating New Value for Television

Haruta: Today, we'll be asking Mr. Ando and Mr. Park about their vision for HAROiD and what kind of future changes they hope to bring to television and viewers through HAROiD.
I understand HAROiD aims to maximize television's inherent strengths by providing various mechanisms, services, and initiatives that bring interactivity and participation to broadcast content through internet-connected TV devices and smartphones. This expands the possibilities for communication and content, creating new value.
Its predecessor was Nippon TV's "JoinTV." It created a new TV viewing style combining television and SNS. Did your relationship begin at that time, Mr. Ando and Mr. Park?

 

Ando: The first project we collaborated on with Mr. Park was for Friday Road Show!'s "Evangelion: 1.0 You Are (Not) Alone." It was a project where viewers tapped buttons on their smartphones or remotes to gather electricity, matching the "Operation Yashima" scene where electricity is gathered from all over Japan to defeat the enemy. While this didn't change the movie's content, hundreds of thousands of people participated, gathering about 300 million taps.
From a traditional TV perspective, the focus tends to be on how it impacted viewership or ratings. But what caught our attention was the behavior of audiences who went to see the new movie released in theaters the following week. Remarkably, one in four people who participated in the tapping event ended up paying to see the movie in theaters. This means one in four people were willing to pay to go to the cinema. It shows that by leveraging the mass reach of TV, we could gather a highly loyal audience online and successfully guide them into the real world. At HAROiD, we believe we can better leverage this kind of value inherent in the internet.

Haruta: It's a great example that also amplified the experiential value for users who actually took action through the synergy of TV and digital. What do you think, Park?

Park: With online campaigns, the numbers are very clear. You're judged on how many users you can drive and what the final conversion rate is. For example, if you say, "We reached hundreds of thousands of unique users in three months," that's commendable in itself. But at the same time, you feel the limits of scale. That's precisely why I wanted to challenge myself: how big can we make things in this interactive world? What happens when we communicate with an unprecedented number of people all at once?
That's when we collaborated with JoinTV on Friday Road SHOW!. Witnessing firsthand how hundreds of thousands of people could gather in a single second and gaining experience handling that transaction volume was an enormous learning opportunity for us.

Haruta: I understand HAROiD's establishment represents an evolution from JoinTV to the next stage. Could you share the background leading to its founding?

Ando: The concept itself is something I'd been discussing with Mr. Park for quite some time. As for why now? It's because the relationship between TV and the internet has changed dramatically.
Take the Evangelion new theatrical version we mentioned earlier as an example. With the spread of smartphones and social media, it's no longer unusual to watch TV while connected to the internet.
Online program viewing is also a key factor. Changes in the TV viewing environment itself include Nippon TV's acquisition of Hulu's domestic operations, Netflix's entry into Japan, commercial broadcasters offering free catch-up streaming under their advertising models, and NHK's simultaneous terrestrial broadcast streaming.
Online program distribution is a model that monetizes by allowing users to engage with content's appeal anytime, anywhere, tailored to their needs. The key here is leveraging content strength, not reach. Conversely, connected viewing models like the Evangelion Rebuild project are business models that leverage television's reach.
All too often, discussions about streaming become one-sided, either focusing solely on streaming itself as the goal or neglecting TV's inherent strengths like reach and content power. That's precisely why we aim to present a new framework that leverages both reach and content power, both for entertainment and business.

 

Haruta: Beyond "the power of the content itself," the reach you're referring to here is essentially about "simultaneous experience value" and the resulting "empathy value," isn't it?

Park: Until now, the emotions of people in their living rooms never surfaced in real time. Of course, events like the broadcast of "Castle in the Sky" where the number of people tweeting "Bals" in sync with the line set a world record were picked up as topics. But when a broadcaster takes the lead, like with the new Evangelion theatrical release, I believe it can create a new form of entertainment.

The proliferation of smartphones has changed the relationship between television and its viewers.

 

Haruta: I feel HAROiD also serves to connect today's viewers—whose viewing habits have undergone various changes—with television. What changes do you think are currently occurring in the relationship between television and its audience?

Ando: Simply put, it's the change in how people engage with content due to the smartphone proliferation we discussed earlier. One factor is location. The common sense that TV is watched at home has shifted; smartphones have freed up where we watch. Then there's time. It's becoming the norm to access content on your own schedule.
However, smartphone viewing isn't the only way people watch TV. Another key point is the diversification of devices used across generations. Some people primarily watch content on PCs, while others only have a TV. It's no longer feasible for a single device to cover the entire population. This is also a significant change.

Park: I founded Bascule because I fundamentally believed "TV won't remain king forever." In that sense, I feel we've finally entered the next era.
But the internet evolves even faster. We might leap straight into an even more advanced era, and those of us who thought we were on the internet side are already starting to get blown away.
Traditionally, television's role was fundamentally to gather information, filter it, and deliver it to viewers as public content. But now, people and things connected to the internet continuously broadcast information 24/7. Traditional media, including television, is clearly unable to keep up. This is something no one could have imagined. Yet precisely because no one imagined it, forces have emerged that see this as an opportunity and are making bold challenges.

Haruta: I believe the common view shared by both of you is that "television is the most powerful medium, but changes are occurring within it. The biggest factor driving this is the evolution of the internet environment, with the proliferation of smartphones serving as the trigger." Specifically, how has the smartphone changed the very nature of television?

Ando: Television used to fulfill a much broader range of roles. Take product pricing, for example. Back in the day, TV commercials would actually state the price. Now, due to factors like open pricing, commercials announcing prices have become less common. So, how do viewers find out the price instead? They probably check sites like Kakaku.com on their smartphones. It seems viewers themselves might be taking on the role of finding out prices. Just looking at this one aspect, it's clear television's role has narrowed significantly.

Haruta: What about you, Mr. Park?

Park: I think the resolution of information is constantly increasing. For example, my smartphone constantly tracks my location via GPS. If I check in the moment I arrive at Dentsu Inc., it syncs with my SNS and instantly shares that info with my friends. I'll get a message like, "Got a bit of time later?" The smallest unit of information has been broken down to the individual level. I'm not saying this applies to the entire population, but for active clusters of people, the information that defines their daily lives has shifted to this level. Television isn't the vessel to capture that.
Of course, I don't think it needs to be, but considering this networking will only accelerate further, I believe we're entering an era where we must ask: what can only be done on television? Inevitably, both television and the internet will consolidate into what they do best.

 

Ando: It's not so much that the content broadcast by TV is becoming less suitable, but rather that the TV device itself is becoming less suitable.
Today's TV serves the role of delivering the same information simultaneously and accurately, so content must be created that everyone knows. However, that doesn't necessarily mean it's the optimal information for each individual. What HAROiD should focus on going forward is addressing this gap. It's about figuring out how to fuse personalized content tailored to each individual with traditional TV content. By bridging this gap, we might be able to deliver equally valuable content whether you use a TV device or a smartphone device.

Park: For people, watching "interesting content" on TV also served the purpose of creating shared topics that facilitated smoother communication with those around them. But now, we live in an era where close friends can communicate 24/7 via smartphones. Today's television feels disconnected from "this very moment," and perhaps it no longer fulfills that purpose. I believe filling that void is HAROiD's role.

Partnering with TV could reach even more people

 

Haruta: Is what we're discussing now similar to the challenges television as a medium faces? Certainly, in fragmented, surface-level phenomena, there are moments when the power of the internet replaces television. On the other hand, the overwhelming majority of things that gain traction on social media and elsewhere are sparked by television broadcasts.
For example, the explosive power generated when large numbers of people simultaneously experience something on TV, like a major sporting event, feels entirely different from the organic connections formed through everyday tweets.
In that sense, I think there's power in television and limitations in the internet. What are your thoughts on that?

Park: I believe there's a division of roles. The internet's strength lies in its ease of instantly sharing information. However, because it's fundamentally personal, it's difficult to create content that makes everyone happy simultaneously. The inability to create something with a large scale is the internet's limitation, or rather, its characteristic.
In contrast, television meticulously crafts its content to delight tens of millions of people nationwide. It's precisely this power that enables the creation of compelling dramas, variety shows, and sporting events. Conversely, it's quite challenging for the internet to cultivate the fortitude needed to engage such a broad target audience.
Lately, I feel television has acquired an incredible culture through its longstanding role as mass media and its sense of mission to create public content. That is, a high level of consciousness in content creation. Compared to the internet industry, it's incredibly serious. I used to think the TV industry was more frivolous, influenced by variety shows, but that was a huge misunderstanding (laughs).

Ando: Maybe not everyone, but they are probably more serious than I imagined (laughs). I don't particularly like separating the internet and TV, but if I had to assign roles, a clear example would be "going viral."
We often call things that become popular online "going viral," and it usually starts when a medium closer to the mass audience picks it up. The explosive "going viral" happens after the mainstream media picks it up. This is probably the scale limit of the internet; once something gains enough traction, it gets passed off to mass media like TV.
In short, television isn't suited for delivering information to niche segments, but its ability to deliver the same information simultaneously makes it highly effective at triggering explosive "buzz." The internet can reach various segments in detail, but precisely because of that, it struggles to generate explosive "buzz" across the entire audience. It's precisely these distinct characteristics that I believe HAROiD should leverage.

Haruta: I completely agree with the sentiment that "I don't like separating TV and the internet." It feels like these two have repeatedly been discussed as opposing axes in industry discourse. But fundamentally, no planner at an advertising agency, starting with Dentsu Inc., should be making selective choices about whether internet or TV is better or worse. The fundamental premise is always: what usage and combination will yield the maximum effect in solving the client's challenges?

 

I look forward to what emerges when the unique strengths of TV and the internet fuse together.

Haruta: So, regarding the establishment of HAROiD, please tell us what aspects of each other you find appealing and what kind of synergy you expect. First, what does Mr. Ando expect from Mr. Park's Bascule?

Ando: We're looking at the internet from the world of television. I thought I understood the internet, but it's different. When people from TV stations think about online expansion, it inevitably becomes a setup that relies on TV. To put it more bluntly, there's a lot of expansion that leans too heavily on TV.
But Mr. Park and his team are the opposite. Despite not having television as a medium, they've used creativity and technology to do interesting things solely on the internet.
The TV industry is, naturally, a gathering of people who came to do television. That's precisely why, to truly tackle the internet, we need people like Mr. Park—who had no prior connection to the TV industry—to come up with the ideas. Of course, the internet industry has all kinds of talent too, but Bascule was the one thinking most seriously about the potential when TV and the internet converge.
Television, which excels at instant explosive impact and entertainment enjoyed simultaneously by everyone, meets the know-how, talent, and experience of people like Mr. Park, who grew up with the internet. I'm excited about what will emerge from this completely different approach.

 

Haruta: So, what kind of value do you hope to create by having Park join HAROiD?

Park: For example, leveraging smartphones gave rise to services like Airbnb for private home stays and Uber for taxi hailing. Both started as ventures by small startups completely unrelated to the telecommunications industry, yet they now command market capitalizations in the trillions of yen. Using smart TVs as the stage, there's potential for such major services to emerge. If companies outside the TV industry also see such opportunities, I believe it could spark a truly new wave of innovation.
Airbnb and Uber are fundamentally matching services. In other words, they are communication services. Many companies around TV, including Dentsu Inc., excel at planning communication strategies. I feel this environment could spark various ideas. If we don't act first, someone else surely will. Looking beyond 2020, I can envision this landscape. So, I'd be delighted to see projects emerge now that look a little further ahead, not just focusing on the short term. Perhaps Mr. Haruta's team at Dentsu Inc. is the one to support such ventures as a business.

Haruta: HAROiD isn't just about solving clients' communication challenges by presenting new angles through the fusion of the internet and TV. I sense a mindset focused on collectively building a new information environment for society as a whole, beyond 2020.
That's where Dentsu Inc. can offer significant support. While our TV specialists are key, it would be incredibly exciting if people across magazines, online, and beyond—anyone thinking "I want to try this"—would reach out. Creators, planners, anyone with ideas is more than welcome.

Ando: In terms of how we create, television might just be a tool for output or arrangement. It's about "○○ × TV," and I think ○○ can be anything.

Park: Since this is a good opportunity, I'll share what I expect from Dentsu Inc. in the near future. For instance, when creating content for big events like sports that effectively uses the internet and technology to make it fun for both participants and viewers, smartphone utilization is a given. However, this often leads to sponsorship coordination issues. As a result, if you can't get everyone's approval, the project can't be implemented, and you can't gain experience. This happens far too often. I believe such cases will increase going forward. Therefore, I would be delighted if you could plan for such developments from the initial planning stages, enabling a flow where we can repeatedly create unprecedented, groundbreaking showcases.

Haruta: Sounds like a worthwhile challenge (laughs).

Ando: What we're trying to do is invent something new—a new service, a new business model, and even a new culture. That means we have to create a win-win-win situation, or rather, a win-all-all scenario for everyone involved: the TV viewers, the interactive participants, and the clients. In that sense, Dentsu Inc. interacts with various industries, so I'm hopeful we can collaborate on groundbreaking initiatives that make everyone happy.

Park: iTunes was truly groundbreaking for the music industry. Google also changed the advertising system in a remarkably unconventional way. If we just sit back, someone else will do something unconventional. So, frankly, we might as well be the ones to do it.
From an internet perspective, Dentsu Inc. and the TV industry folks show incredible consideration—or rather, they're remarkably mindful of the circumstances (laughs). What can't be done by just one industry—ad agencies, internet, TV—can be achieved when all three collaborate simultaneously. That's how we can achieve what Mr. Ando calls "inventing new culture."

Haruta: I'm flattered you're praising Dentsu Inc.'s greatest strength (laughs).

 

(Continued in Part 2 )

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Check out HAROiD's latest initiatives and releases here.
http://www.haroid.co.jp/
http://www.haroid.co.jp/img/20151109.pdf