[Special Discussion] The Future of the Content Business and "Beyond"

Japanese content attracts attention not only domestically but globally, now standing as one of the nation's representative industries. Its market size ranks third globally, with industrial exports reaching ¥4.7 trillion, a scale comparable to the steel and semiconductor industries (※1). As various video platforms emerge and data marketing evolves, we must reexamine the inherent value of content and what is necessary for the development of the content business. Moderated by Video Research Ltd. President Ishikawa, TBS Television President Ryuhou and dentsu Japan CEO Sano will discuss these topics.

This article is edited based on Session 1 of VR FORUM 2024 "Beyond Content: Expanding Horizons," held on Wednesday, November 27.
 

TBS Television: "From Tele Vision to Timeless Value"

Expanding Content

Ishikawa: Focusing specifically on the content business, I'd like to start by hearing about each company's initiatives. First, Ryuhou, please tell us about TBS Television's efforts.

Ryuhou: "Strengthening TV." I'd like to share this with everyone first. This was the message I sent to employees upon becoming TBS President this year. It reflects the reality we face: the TV we've traditionally worked with is no longer the same.

Mr. Masamine Ryuhou, President and Representative Director, TBS Television. After joining Tokyo Broadcasting System (now TBS Holdings), he gained experience in sales and media roles. He became a Director of Tokyo Broadcasting System Holdings in 2018. From 2020, he served as President of TVer. After holding positions including Director of TBS Television, he became President and Representative Director of TBS Television in 2024. He also serves as Vice President and Representative Director of TBS Holdings.

Amidst this, our guiding keyword is "Timeless Value." We aim to expand TV beyond just Tele Vision to TV=Timeless Value. We believe this content encompasses not just television programs, but all life experiences becoming content, and we will advance our business based on this. Furthermore, we want our interpretation of TV to be about expanding content not only across time but also across borders. Here are several initiatives based on this concept.

The Movie "Last Mile"
This film was created by the production staff behind the dramas "Unnatural" and "MIU404." It's a completely new type of film: while featuring a story entirely separate from the two dramas, it incorporates cast members from both. Not only did it achieve massive success with box office earnings of 5.8 billion yen, but "Unnatural" and "MIU404" are also gaining traction through streaming, and related merchandise sales are starting to pick up. We believe this content truly embodies Timeless Value.

Live Event "Ravit! Rock 2024"
The morning variety show "Ravit!" broke free from television to become a music event. With over 60,000 applications for a venue holding just over 10,000 people, and including the livestream, it became an immensely popular content enjoyed by a vast audience. I consider this a hugely successful example of Timeless Value, unlike anything seen before in variety programming.

We've discussed the expansion of content's Timeless Value, but at its core lies strong content production capabilities. At this year's Tokyo Drama Awards, the drama "VIVANT" won the Grand Prix. The finale of VIVANT was watched by 33 million people. At the awards ceremony, director Fukuzawa stated, "I'm delighted that creating something interesting proved it can reach that many people. Let's all work together to create interesting things." It was a moment that reaffirmed how the entertainment value and strength of content are paramount, and how we all want to achieve our shared vision together.

The foundation of this content's strength is the overwhelming trust we have as a broadcaster. In times of crisis, we have a mission: "To prioritize conveying information to society over our own interests." It is instinctive for a broadcaster to act on this mission. We are a news media outlet, and we must never forget that trust. Building on this trust, we aim to fulfill our mission by delivering content and strengthen television.

dentsu Japan: Building an Ecosystem to Become a Growth Partner for Content

Ishikawa: Next, Sano, please tell us about dentsu Japan's initiatives.

Sano: We aim to become an "Integrated Growth Partner" (IGP). IGP means striving to be a partner for the sustainable growth of our clients, media partners, and all our partners, working together to provide vitality and energy to society. We are focusing on three key areas to achieve IGP: the "Marketing" domain centered on advertising; the "Transformation" domain, including the growing areas of BX and DX; and "Content." We combine sports and entertainment into our content domain. This area continues to grow year after year and represents a crucial domain that is uniquely ours, something our competitors globally lack.

Takeshi Sano, CEO of Dentsu Japan, Representative Director, President and Executive Officer of Dentsu Inc. After joining Dentsu Inc., he handled diverse responsibilities primarily in sales. He became an Executive Officer at Dentsu Inc. in 2021. Subsequently, he served as a Director of domestic group companies and oversaw the marketing/promotion, BX, and DX domains. From 2022, he served as an Executive Officer at Dentsu Inc. and an Executive Officer at Dentsu Japan Network (now dentsu Japan). From 2023, he concurrently served as Global BX CEO. He has held his current position since 2024.

Today, I want to share four key perspectives for our content business. The foundation is creating and amplifying "① Passion." Content has the power to move people and generate passion. To ensure this passion doesn't fade as a fleeting trend, we believe it's crucial to build "② Social Value" and create "③ Co-creation Relationships" with sponsors and media partners. The result is building an "④ Ecosystem" where the economy circulates properly, fostering creators of next-generation content, and enabling a cycle of new content creation. We advance our business prioritizing these four perspectives for sustainable growth and societal vitality.

Here are some concrete examples.

"King of Conte 2024" and "M-1 Grand Prix 2024"
We support program promotion from various angles to help build excitement. Beyond simply selling program sponsorships, we collaborate with sponsors to create original commercials and build momentum, helping to create stronger content and deliver laughter across Japan.

"J.League KICK OFF! Project"
We support the launch of the regional soccer support program "KICK OFF!" in every broadcast area nationwide. This initiative not only boosts the J.League but also, in collaboration with local broadcasters, creates excitement by connecting with residents, businesses, and local governments, contributing to regional economic revitalization.

"Hokkaido Ballpark F Village"
This project represents the new home stadium for the Hokkaido Nippon-Ham Fighters, while also realizing a "stadium-centered community development" initiative encompassing the surrounding area. We provided support across diverse domains, from investment and vision design to facility planning, recruitment support, and launch communications. This too is an example of co-creation with various stakeholders contributing to regional revitalization.

"B.LEAGUE GROWTH PARTNER Appointment"
We signed a Growth Partner agreement to commit to the B.LEAGUE's growth and maximize its social value, going beyond traditional rights sales. Leveraging our assets and network, we will support strategy development and commit to the league's growth from a management perspective.

"House of Creators"
Supporting content creators is crucial for sustaining the ecosystem. As our first initiative, we've partnered with Roblox, a social platform operator, to launch a program for discovering and supporting content creators.

As IGP, we aim to advance the content business through the four perspectives mentioned earlier and contribute to revitalizing society.

Content moves people's hearts and creates "passion."

Ishikawa: Moving forward, please share your thoughts on the themes. First, could you explain the significance of focusing on the content business?

Ryuhou: As a company rooted in broadcasting, the significance of focusing on the content business is, in essence, everything. Rushing to deliver to society in times of need, creating great content and sharing it with the world—that is our way of life, our instinct. It's not so much that we're focusing on it as a business; rather, it is the very starting point of everything.

Sano: One reason is that the power of content to generate excitement and invigorate society aligns perfectly with our vision of providing vitality and energy to society as a whole. Another reason is its importance in marketing. Even if data enables sophisticated marketing—like highly precise persona targeting—sales won't increase and brand value won't grow unless consumers' hearts are truly moved. Content is what stirs people's emotions and creates passion. Content is crucial in both these ways.

Ishikawa: Moving people's hearts and creating enthusiasm might be the keyword for content. We have fans of "Ravit!" mentioned by Ryuhou-san at our company too. It's not just about becoming fans; communities among fans are forming. The same goes for Nippon Broadcasting System's Audrey Tokyo Dome live event. When content breaks through the screen to become an event and even creates communities, I believe this phenomenon occurs precisely because it possesses the power to move people's hearts.

Cultivating Sports "Culture" Through Content

Ishikawa: Next, the theme is "Fostering Sports 'Culture'." Ryuhou, please tell us about next year's World Athletics Championships at the National Stadium.

Ryuhou: We've been broadcasting the World Championships since 1997. Back then, Japanese athletes rarely made an impact. But now, we have so many athletes who could win medals. This might sound a bit presumptuous, but I believe the broadcasts sparked a movement among fans who watched – inspiring them to try the sport themselves or aim for the world stage. This likely contributed to athlete development. I firmly believe our continuous free broadcasts have played a significant role.

Our goal for Tokyo 2025 is to fill every stadium. That's about 700,000 people over nine days. We want to mobilize that many people and loudly proclaim to the world from Tokyo: Japan is alive and well! We can deliver this kind of content! In that sense, I believe we can contribute to fostering sports and its "culture."

Ishikawa: Of course, the athletes and their teams' efforts are paramount, but how it's presented creates that fervor. That fervor broadens the base of sports participation, which in turn produces athletes aiming for the top. In creating this cycle, I believe the power of media has yielded tremendous results over the past 30 years.

Yutaka Ishikawa, President and CEO, Video Research Ltd.

The Potential of Content for Regional Revitalization

Ishikawa: Our next theme is "Regional Revitalization and Community Engagement." The J.League and Hokkaido Ballpark are prime examples of initiatives that have directly contributed to regional revitalization. I understand that land prices in Kitahiroshima City, where Hokkaido Ballpark is located, have risen due to its impact.

Sano: I think it's a great example of "moving from sponsorship to co-creation." The J.League, of course, works with broadcasters, but its title partner, Meiji Yasuda, also shares the same vision of revitalizing the region where the team is based, moving beyond simple sponsorship.

Many employees from various departments at our company are involved with Hokkaido Ballpark. More than just business profits, our members take great pride in knowing we are creating tangible value for society. Being able to offer our creativity and production capabilities in this way, and to contribute to society and local communities, is truly rewarding.

Ishikawa: How about TBS Television's initiatives for regional revitalization and community engagement?

Ryuhou: We operate " TBS NEWS DIG Powered by JNN." This initiative aggregates news from all 28 JNN affiliate stations onto a single media site, delivering vibrant local stories that typically don't appear in national online news. For example, a local news story like "Successful capture of a giant wild boar over twice the normal size," paired with impactful images and shared on NEWS DIG, went viral. We're expanding this new approach to news delivery together with our regional affiliate stations. While not directly regional revitalization, our business model prominently displays the affiliate station's logo and returns revenue to them.

Furthermore, through a partnership with Bloomberg Media, we have expanded to deliver global news. Conversely, this also opens the possibility of delivering Japanese content to the world. NEWS DIG advances with two core intentions: to energize Japan's local communities and to spread that energy globally.

Toward Further Content Development

Ishikawa: Finally, regarding "How can we invigorate the content business going forward?", I'd like to hear your thoughts, incorporating the perspective of talent development.

Sano: One key point is ensuring the ecosystem functions effectively. We discussed "House of Creators, " but continuously discovering and nurturing the next generation of talent is essential for invigorating the content business. Another strength of the social platform Roblox is its borderless nature. While Japan's content industry is expanding, its global market share is only 9%. In contrast, the US holds 40% (※2). A platform like Roblox, where people from all over the world gather, allows for content creation aimed at the global market from the outset.

Another challenge I perceive is whether creators are receiving fair compensation for their work. We need to establish a system that adequately rewards creators. To achieve this, we must promote the marketing utilization of content and ensure proper returns to the entire industry, thereby sustaining the overall ecosystem.

Ryuhou: Above all, I believe we must focus on creating powerful content and consciously use its force to spark movements. To expand into the "Timeless Value" I mentioned at the beginning, I want to cultivate as many "ambidextrous creator talents" as possible – individuals possessing both the ability to create content and the ability to distribute it.

I believe the power of content is crucial for revitalizing Japan. This content isn't just the dramas and variety shows we produce; the power of the commercials you all create also contributes to energizing Japan. I hope we can all work together here to revitalize Japan and make this effort sustainable.

Ishikawa: While Japan's economy is often described as having experienced "lost 30 years," I believe the worlds of sports and entertainment have undergone a completely different 30-year journey. I firmly believe the power of media and content has played a significant role in this. Listening to both presidents speak, I realized that by combining content, technology, economics, and the passion of those involved, a new "culture" is cultivated. Thank you very much.

※1 Cabinet Secretariat, Secretariat for the Headquarters for Realizing a New Capitalism, Basic Materials
https://www.cas.go.jp/jp/seisaku/atarashii_sihonsyugi/kaigi/dai26/shiryou1.pdf
※2 Cabinet Office Intellectual Property Strategy Promotion Office: Cool Japan Strategy Related Basic Materials

https://www.kantei.go.jp/jp/singi/titeki2/contents_wg/dai4/sankou1.pdf