To: JEFF K who wrote (37301 ) 11/17/1998 5:40:00 PM From: John Rieman Read Replies (1) | Respond to of 50808
More Divi customers...............................................nikkei.co.jp Satellite Broadcaster Narrows Strategy With subscriber growth slow, DirecTV Japan pins its hopes on packages aimed at single genres Popular Japanese soccer player Hidetoshi Nakata, left, is going to appear in a DirecTV ad campaign aimed at boosting its subscriber numbers. DirecTV Japan Inc. plans to release in December lower-priced packages focusing on a single entertainment genre such as movies or sports. After succeeding in the U.S., the satellite broadcaster entered Japan a year ago but has seen subscription growth slow, leading it to adopt a business strategy tailored for the local market. DirecTV Japan Chairman Larry Hunter announced the new strategy Oct. 30 in Tokyo, where the company is based. The plan is a revised version of one that succeeded for DirecTV in the U.S. Hunter used to work for Hughes Electronics Corp. of the U.S., DirecTV Japan's top shareholder, and became chairman of the Japanese company in August. In the U.S. satellite-broadcast market, broadcasters mainly offer packages with a mix of movie, sports, news and many other channels. DirecTV has succeeded in signing up more than 4 million subscribers in the U.S., thanks to a strategy that offers packages with a wide variety of channels. DirecTV Japan has offered three types of packages of 30-40 channels, but the number of subscribers remained at 193,000 as of the end of October. So it concluded that packages with an exclusive focus on one entertainment genre will attract more Japanese consumers. In addition to the current packages, the company plans to offer 25 packages of two to 11 channels each, focusing on a genre such as movies, sports, cartoons or news. DirecTV Japan also began offering a digital interactive data-broadcast service, InteracTV, in late October. Subscribers can obtain a range of information, including weather and television listings, with a remote control. The company has incorporated InteracTV in all DirecTV tuners, in cooperation with major home-appliance makers. DirecTV Japan will also sharply raise its number of channels in releasing the new packages. It will carry out a major campaign to attract subscribers at the end of this year and the start of 1999. The company has selected Hidetoshi Nakata, a popular Japanese soccer player who now plays in the Serie A Italian league, for TV ads. DirecTV Japan is expected to spend 3-4 billion yen ($25-33 million) on the ad campaign and for system changes for the new packages. The company, said to have already used up more than half its original operating funds of 66 billion yen, is about to take a big risk, said an executive at rival Japan Digital Broadcasting Services Inc., the operator of Sky PerfecTV. DirecTV Japan in late September in effect dismissed then-President Muneaki Masuda, chairman of Culture Convenience Club Co., a major video-rental company that is its other top shareholder. DirecTV Japan hopes to reconstruct its business structure by unifying the posts of chairman and president under Hunter. The next two months are expected to be a turning point for the company.