The new challenge of operating "Ariake Arena"

This series introduces the efforts of employees challenging new frontiers at Dentsu Inc.'s Content Business Design Center (CBDC), which handles content business. In the second installment, Shuji Hitomi from the Live Entertainment Business Development Department discusses the business concept for Ariake Arena.

TOKYO ARIAKE ARENA INC. Image provided by Tokyo Metropolitan Government, January 2019 (post-event rendering)

Japan's first arena built through a concession model, bringing together leading companies from various industries

TOKYO ARIAKE ARENA INC., newly constructed for the Tokyo 2020 Games. This Tokyo Metropolitan Government-owned facility will host volleyball for the Olympics and wheelchair basketball for the Paralympics. Here, CBDC's Shuji Hitomi discusses Dentsu Inc.'s new venture into arena business.

Ariake Arena is drawing attention as Japan's first arena operated under a "concession model." "Concession" refers to the sale of operating rights for public facilities to private companies. While numerous examples exist domestically for public infrastructure like airports and roads, this marks the first adoption for public facilities like arenas, where demand forecasting for utilization rates is challenging.

Nevertheless, the Tokyo Metropolitan Government adopted the concession model to maximize the utilization of private companies' expertise and ingenuity. This aims to enhance services for Tokyo residents, create valuable legacies, and establish TOKYO ARIAKE ARENA INC. as "Tokyo's new hub for sports and culture."

This project will be implemented by a consortium of 10 companies: lead company Dentsu Inc., members NTT DOCOMO, Inc., Nippon Kanzai Co., Ltd., Amuse Inc., Live Nation Japan, Dentsu Live Inc., and ASICS Japan Co., Ltd., and supporting companies NTT FACILITIES, Inc., Cross Sports Marketing Inc., and Mitsubishi Research Institute, Inc.

The operating company, TOKYO ARIAKE ARENA INC. ( https://www.ariake-arena.tokyo ), is a special purpose company (SPC) established with investments from the consortium's lead company and members. It will manage the arena's operations for 25 years, from June 2021 to March 2046.

Cutting-edge communication infrastructure enables the "Smart Arena"

The floor of the main arena, which seats 15,000 people, is concrete rather than wood, enabling it to host diverse events beyond sports, such as music concerts. Now, let me share our vision for Ariake Arena.

Entrance Image

Upon stepping into the main entrance, large video screens and projection mapping immediately catch your eye. Powerful visuals tailored to each event are projected, creating an extraordinary atmosphere.

Additionally, the seating areas will include wheelchair-accessible amenity seats and VIP terrace seats. We are designing the arena so that everyone who visits can enjoy it in a way that suits their purpose.

Facility Interior Image

Furthermore, a smartphone-based arena app is planned for introduction to enhance visitor convenience. Backed by NTT Docomo, the arena will provide cutting-edge communication environments, including high-density Wi-Fi and future 5G implementation, realizing a "Smart Arena."

A Platform for Delivering Compelling Content

Ariake Arena's operational concept is "An arena chosen by the world and cherished by the community." Under the motto "From venue rental to content curation," we will not only ensure high utilization rates for venue rentals but also attract and curate compelling content year-round. This will achieve a balanced content lineup integrating sports, entertainment, public value, and profitability. Furthermore, beyond attracting existing tournaments and music events, we will expand the arena's function as a platform for creating and disseminating new content.

We now live in an era where smartphones provide access to any information and platforms like YouTube offer any video. Precisely because everything can be seen online, the demand for "experiential value" – seeing sports live with your own eyes, hearing a singer's voice with your own ears – is undeniably growing. As an arena, maximizing this experiential value and translating it into business is where we truly shine.

Above all, the most important thing is the urban development of the "Ariake Legacy Area" starting from the arena.

The paramount goal of this project is to ensure the legacy extends beyond the confines of Ariake Arena itself, radiating outward to contribute to the urban development of the Ariake Legacy Area.

We are exploring various initiatives, such as new transportation networks centered around Ariake Arena and lively events utilizing the waterfront.

We are also planning to organize sports volunteers based at Ariake Arena. Seizing this moment of heightened volunteer spirit, we envision revitalizing the entire neighborhood by uniting local residents and students to support sporting events and other activities.

Moving forward, to ensure Ariake Arena is selected as a venue for various international competitions, we will pursue proactive and continuous facility investments. We will also develop compelling content, foster a volunteer spirit, and invigorate the entire area. We aim to leave behind not only the physical legacy as a competition venue but also a solid intangible legacy.