Launch Of First DVD Software Rental Business In Japan Toshiba and
Matsushita to Invest In Culture Publishers Inc.
BusinessWire, Monday, December 15, 1997 at 00:17
(Published on Sunday, December 14, 1997 at 00:01)
(My comment...at least the JAPANESE like to invest in DVD
technology. Perhaps CUBE should re-list on the Tokyo exchange?)
TOKYO--(BUSINESS WIRE)--Dec. 15, 1997--Culture Convenience Club
Co., Ltd. (CCC), Japan's largest video and CD franchise rental
chain, its subsidiary, Culture Publishers Inc. (CP), and two of
Japan's leading electronics manufacturers, Toshiba Corp. and
Matsushita Electric Industrial Co., Ltd., today announced a
wide-ranging agreement covering DVD and the digital content business.
As the first program under the new partnership, CCC will launch
Japan's first rental business of DVD software throughout its
nationwide chain of stores.
Under the agreement, Toshiba and Matsushita will each invest
296.25 million yen in CP, giving each of them a 19.9% stake in the
company. The paid in capital of CP will be raised from 303.8 million
yen to 600.05 million yen.
CCC operates Tsutaya, Japan's largest franchise chain of video
and CD rental stores. Initial rental of DVD software titles will
start on December 19 at two of Tsutaya's major Tokyo stores, in
Shinjuku and Sangenjaya. The trial program will be extended to ten
stores early next year, including branches in the Kansai region (the
region around Osaka). DVD rentals will be introduced to Tsutaya's
nationwide franchise chain from Spring 1998.
The first DVD titles offered for rental will mainly be foreign
film titles already in the Japanese retail market. They include
titles released by Warner Home Video and other studios which CCC has
obtained the right to rent. The number of DVD titles available for
rent is expected to reach 200 to 300 by Spring next year, when
nationwide renting starts.
CP owns video publishing rights for an extensive range of films,
and is now expanding its business field into digital contents
publishing, including games. Under the new agreement CP will bring
titles in its own library to DVD, and also publish and distribute DVD
titles for other video copyright holders. Toshiba and Matsushita
will cooperate in CP's production of DVD by providing support for DVD
authoring, encoding and mastering technologies. Toshiba and
Matsushita will also accelerate production of their own DVD titles
and provide them for rental. The two companies have invested in CP
with the aim of promoting widespread distribution of popular titles
in the DVD format to boost the overall DVD market.
In Japan, sales of DVD-Video players and title software began in
November 1996. Since the launch, consumers have embraced DVD far
faster than any previously introduced home e ntertainment medium.
Between 500 and 600 DVD-Video titles are expected to be in the market
by the end of 1997, which is a highly favorable comparison with the
91 titles the Laser Disc player boasted in 1981 after its first year
in the market.
At present in Japan, DVD-Video titles are available only in the
retail market. By launching the DVD software rental business and
promoting increased availability of DVD software titles, Toshiba,
Matsushita, Culture Convenience Club and Culture Publishers will work
together to expand the DVD market.
Outline of Culture Convenience Club Co., Ltd.
Established: September 1985
Capital stock: 1338.18 million yen
Sales: 10.872 billion yen (1996)
Number of employees: 507
Chairman: Muneaki Masuda
President: Kazuaki Terao
Business: Operator of Tsutaya, a video and CD
rental franchise chain;
approx. 940 stores nationwide,
approx. 10 million members.
Entertainment business planning.
Outline of Culture Publishers Co., Ltd.
Established: June 1988
Capital stock: 303.8 million yen
Sales: 235.45 million yen (1996)
Number of employees: 35
President: Fumio Kurokawa
Business: Publisher of Visual Information Copyright,
Game and other digital content.
CONTACT: Press Contact
Culture Convenience Club Co., Ltd.
Ms. Rie Hayashi/Mr. Yuzo Ikeda
Tel: +81-3-5424-1937
Fax: +81-3-5424-0589
or
Culture Publishers Inc.
Mr. Shin Morita
Tel: +81-3-5424-1620
Fax: +81-3-5424-1621
or
Toshiba Corporation
Mr. Makoto Ueda
Tel: +81-3-3457-2105
Fax: +81-3-5444-9202
or
Matsushita Electric Industrial CO., Ltd
Mr. Yoshihiro Kitadeya
Tel: +81-3-3578-1237
Fax: +81-3-3437-2776
KEYWORD: NEW YORK
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS ENTERTAINMENT |
