Notice Regarding the Establishment of a New Video Streaming Platform Company

The text of the Dentsu Inc. news release distributed on May 23 is as follows.

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May 23, 2017

Notice Regarding Establishment of New Video Streaming Platform Company

Tokyo Broadcasting System Holdings, Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Shinji Takeda; hereinafter "TBSHD"), Nikkei Inc. (Headquarters: Chiyoda-ku, Tokyo; President and CEO: Naotoshi Okada; hereinafter "Nikkei"), TV Tokyo Holdings, Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Yuichi Takahashi; hereinafter "TXHD"), and WOWOW Inc. (Head Office: Minato-ku, Tokyo; President and CEO: Akira Tanaka; hereinafter "WOWOW"), Dentsu Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Toshihiro Yamamoto; hereinafter "Dentsu Inc."), and Hakuhodo DY Media Partners Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Hisashi Omori; hereinafter "Hakuhodo DYMP") hereby announce that they have agreed today to jointly establish a new company, tentatively named "Premium Platform Japan Inc.", whose primary business will be paid video streaming services and other related services.

1.Purpose of Establishing the Joint Venture

The purpose is to contribute to the development of Japan's video culture by providing a new style of viewing experience, combining the strengths of six of Japan's leading media groups: TBSHD, Nikkei, TXHD, and WOWOW, who will lead the establishment and operation, along with Dentsu Inc. and Hakuhodo DYMP.

The Japanese video streaming business market (according to Nomura Research Institute) is a growing industry projected to expand from approximately ¥149.5 billion in 2015 to ¥209.2 billion in 2021, attracting successive entries from companies across various sectors including media and IT.

In this environment, the six companies determined that by collaborating as media groups each possessing unique strengths, they could provide viewers with a more compelling video streaming service as they launch this new video distribution business.

The new company will build a service platform for video streaming and related services. Utilizing various IP infrastructure, it will provide viewers with new forms of service that go beyond the boundaries of conventional video streaming services.

2.Features of the New Platform and Service Concept

Features

(1) Providing carefully selected premium content trusted by viewers
(2) Regular updates featuring content leveraging each shareholder company's strengths (dramas, variety shows, sports, live music, economic news, etc.)
(3) Production (including co-productions) and distribution of original content aimed at expanding the viewer base (spin-off projects from broadcast programs, short content, etc.)
(4) Distribution of 4K content ahead of BS4K broadcasting
(5) Utilizing cutting-edge technologies such as AI
(6) Broadly acquiring programs from various content holders, including other broadcasters

Service Concept

3.New Company Overview

(1) Name: Premium Platform Japan Co., Ltd. (tentative name)
(2) Location: Minato-ku, Tokyo
(3) Representative Title and Name: President and Representative Director Yasuhiro Takatsuna
　　Senior Managing Director: Takashi Funaki
(4) Business Activities: Platform operation for video streaming and other services; content distribution utilizing IP infrastructure (including 4K); production of original programming for distribution; acquisition of high-quality domestic and international content; technological development for new distribution services, etc.
(5) Capital: 8 billion yen (4 billion yen capital stock, 4 billion yen capital reserve) (planned)
(6) Date of Establishment: July 3, 2017 (planned)
(7) Fiscal Year End : March 31
(8) Shareholder Structure and Ownership Ratios:
　　TBSHD: 31.5%
　　Nikkei: 16.6%
　　TXHD: 14.9%
　　WOWOW: 14.9%
　　Dentsu Inc.: 14.8%
　　Hakuhodo DYMP: 7.3%

4.Schedule

Service Launch Date: April 2018 (planned)
(Pre-service launch planned for fall 2017 or later)
*Details regarding the business and services will be announced promptly as soon as they are finalized.

End

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Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2017/0523-009296.html