Strengthening Collaboration with the CATV Business by Making Japan CableCast a Subsidiary

「During the period, orders for municipal data-broadcasting services and Regional and Disaster-Prevention DX Services increased against a backdrop of more active use by local governments of the New Grant for the Creation of Local Economies and Living Environments, resulting in revenue of ¥660 million, up 11.5% year on year.」

「Against a backdrop of more active use by local governments of the New Grant for the Creation of Local Economies and Living Environments, orders for data-broadcasting services for municipalities and Regional and Disaster-Prevention DX Services increased, resulting in revenue of ¥470 million, up 36.8% year on year.」

「Beginning with the first quarter of the current consolidated fiscal year, the Company changed the revenue classification within the Media Solutions business into “Content Platform,” “Information Platform” and other categories because the information platform had become more important. The comparative figures below have been reclassified under the revised categories. The information platform provides services centered on JC-data and Regional and Disaster-Prevention DX Services. Against a backdrop of more active use by local governments of the New Grant for the Creation of Local Economies and Living Environments, orders for data-broadcasting services for municipalities and Regional and Disaster-Prevention DX Services increased, and revenue was ¥344 million, up 11.1% year on year. As a result, total Media Solutions revenue was ¥1,730 million, down 4.4%, due to lower content platform revenue. Operating profit was ¥234 million, up 124.5%, supported by higher information platform revenue and reduced costs related to the distribution platform in the content platform business.」

「Content platform services saw lower revenue due to a decline in the number of users of cable television operators’ multichannel broadcasting services. Information platform services secured new orders and increased revenue against a backdrop of more active use by local governments of subsidies related to the Digital Garden City Nation Vision. As a result, Media Solutions revenue was ¥1,810 million, up 0.1% year on year, mainly due to higher information platform revenue. Operating profit was ¥104 million, up 102.3%, reflecting reductions in selling, general and administrative expenses and other costs.」

「Content platform services centered on JC-HITS were affected by a decline in the number of users of multichannel broadcasting services provided by cable television operators, while information platform services saw lower sales due to insufficient new orders. As a result, revenue from the media solutions business was ¥866 million, down 5.3% year on year, mainly due to insufficient new orders for information platform services, and operating income was ¥18 million, down 50.9%. To improve these conditions, the use of subsidies related to the Digital Garden City Nation concept by local governments has become more active in the environment surrounding the media solutions business. The company is currently pursuing vigorous sales promotion activities for information platform-related services with the aim of increasing revenue.」

「The content platform business centered on JC-HITS saw lower revenue due to a decline in the number of users of cable television operators’ multichannel broadcasting services. In the information platform business, comprising JC-data and related services using Hybridcast technology, JC-data revenue increased. As a result, revenue in the Media Solutions business declined to ¥2,688 million, down 32.6% year on year, due to the transition of 沖縄ケーブルネットワーク株式会社 to an equity-method affiliate in October last year, the decline in JC-HITS users, and insufficient orders for municipal DX projects. Operating profit was ¥61 million, down 55.9%, due to lower revenue resulting from the decline in JC-HITS users and insufficient orders for municipal DX projects.」

「Under the Regional Disaster-Prevention DX Solution, which delivers municipal announcements and various emergency information, JCC and 北海道テレビ放送株式会社 (HTB) launched a new service in April to distribute information from municipalities across Hokkaido through HTB’s data-broadcasting screen, using Hybridcast, a data-broadcasting service linking broadcasting and telecommunications.」

「Following an agreement to jointly promote 沖縄ケーブル’s growth by introducing TOKAI Cable’s expertise and other resources and jointly developing a model station for the transformation of the IP business that ジャパンケーブルキャスト has developed to date, ジャパンケーブルキャスト decided to transfer 70% of its shares in 沖縄ケーブル to TOKAI Cable.」

「Following the transfer of the shares, ジャパンケーブルキャスト will hold a 30% stake in 沖縄ケーブル, which will become an equity-method affiliate of the Company.」

「The JC-data data-broadcasting service for cable television community channels provides locally focused information on community safety, security, crime prevention and disaster preparedness. This year, 3 additional cable television operators began using JC-data to distribute local information.」

「The JC-data data-broadcasting service for cable television community channels provides locally focused information on community safety, security, crime prevention and disaster preparedness. This year, 3 additional cable television operators began using JC-data to distribute local information. In addition, the retail electricity business in Okinawa Prefecture, “Nirai Electricity,” began in June this year on an agency-sales basis, followed by the launch in July of Japan’s first 4K slow-TV channel, “Natural Window Channel.” JCC programs this channel and distributes it using the ACAS system, featuring ultra-high-definition, high-quality 4K footage of natural scenery and other content (Natural Window®).」

「The IP Notification System, which communicates announcements from local governments and various emergency information, has been approved for introduction in Kimobetsu Town, Shimamaki Village, Ozora Town, and Shakotan Town in Hokkaido. Infrastructure was completed in Kimobetsu Town in July this year, and services began in August. As a new initiative, JCC and 北海道テレビ放送株式会社 (hereinafter “HTB”) entered into a basic agreement in September this year toward commercializing a service that distributes various information through HTB’s data-broadcasting screen using the next-generation data-broadcasting service Hybridcast. Preparations are under way for the service launch next year.」

「The IP Notification System, which delivers municipal announcements and various emergency information, is provided in 5 municipalities in Hokkaido, and its introduction has also been decided in Mukawa, Hokkaido. In addition, Kimobetsu, Hokkaido, which uses the same service provided by JCC, entered into an agreement in March this year under the Ministry of Internal Affairs and Communications’ Regional Revitalization Corporate Exchange Program to dispatch an employee from JCC to the Kimobetsu Town Office. Through this dispatch, the parties will promote personnel exchanges and human-resource development while working to disseminate Kimobetsu’s local and tourism information inside and outside the town and resolve local issues. JCC will work with municipalities to provide services that make life more convenient in communities facing local challenges, rather than limiting its services to those delivered through cable television.」

「The five companies 凸版印刷株式会社, JCC, the Company, 株式会社秋田ケーブルテレビ and 株式会社ALL-A, a subsidiary of 秋田ケーブルテレビ, completed a demonstration test of high-quality 4K video distribution to elderly care facilities and private residences in Akita City, which aims to become an age-friendly city, and will continue working toward launching a full-scale service.」

「In addition, the Company and JCC decided to consolidate their offices to generate further synergies, and JCC relocated its head office on 2 November of this year to the Company's office in Uchisaiwaicho, Chiyoda-ku, Tokyo. The Company and JCC will continue to deepen their collaboration and work to provide services that make life more convenient in areas facing challenges, extending beyond services delivered through cable television and across media.」

「JCC built the “ICT Life Support Channel” system using Hybridcast technology for the community channel “Ina Tele 12” on Ina Cable Television Co., Ltd.’s service in Ina, Nagano Prefecture. In addition, five companies—凸版印刷株式会社, JCC, the Company, 株式会社秋田ケーブルテレビ, and 株式会社ALL-A, a subsidiary of 秋田ケーブルテレビ—are conducting a pilot project in Akita City, which aims to become an age-friendly city, to deliver high-quality 4K video to senior care facilities and private homes in the city. 沖縄ケーブル began out-of-area rebroadcasting of 7 Nippon Television Network programs last year to prevent cancellations and acquire new customers, and began broadcasting an additional 3 Nippon Television Network programs and 4 TOKYO MX programs in April this year.」

「JCC’s core business, the JC-HITS digital multichannel distribution platform service, began providing an advanced cable self-broadcasting service compatible with ACAS, the CAS system newly adopted for 4K/8K broadcasting, in October last year (2019), supporting cable television operators’ transition from C-CAS to ACAS as multichannel broadcasting services advance toward higher image quality. The IP public-information system, which transmits administrative broadcasts such as local government announcements and various emergency information, was installed in 厚岸町, Hokkaido, and 鶴居村 in March of this year. Including municipalities where it had already been installed, the service is now provided to 5 municipalities.」

「At JCC, the company completed construction of a digital multichannel distribution platform compatible with ACAS, the CAS system newly adopted for 4K and 8K broadcasting. It will continue to promote the adoption of next-generation high-definition broadcasting and expand service functionality. Okinawa Cable launched new services in April this year, including an ultra-high-definition 4K satellite broadcasting service and data broadcasting providing local disaster-prevention and crime-prevention information around the clock. From August, it also began retransmitting 7 NTV-affiliated programs outside their designated service areas.」

「From April of this year, we began providing an IP public-information system service to the 5 municipalities participating in the Hokkaido Information and Communications Infrastructure Promotion Council, delivering emergency and regional information through easy-to-operate devices with integrated handsets and other equipment.」

「As a new initiative, in March of this year, 凸版印刷株式会社, JCC and our company began a demonstration project aimed at providing a service that delivers 4K video, including ultra-high-definition, high-quality landscape footage expected to have healing effects, to home 4K-compatible televisions. We will continue promoting the spread of next-generation high-definition broadcasting and expanding platform functions. 沖縄ケーブル has worked with JCC to provide ultra-high-quality, ultra-high-definition 4K satellite broadcasting and data broadcasting services through which regional disaster-prevention and crime-prevention information can be viewed at any time, 24 hours a day, to increase the number of cable television subscribers in Okinawa. These services began in April of this year.」

「The share transfer agreement entered into on 20 September 2018 by our consolidated subsidiary Japan CableCast Co., Ltd., which had been disclosed as a material subsequent event in the previous consolidated fiscal year, with Kuniba-gumi Co., Ltd. was completed on 3 October 2018, and Japan CableCast Co., Ltd. acquired all shares issued by Okinawa Cable Network Co., Ltd.」

「In addition, following the acquisition of Okinawa Cable as a subsidiary in October last year, the company is promoting the development of a model station for transforming the IP business through IP video streaming services and other initiatives, and will propose the accumulated expertise to cable television operators nationwide. It is also upgrading distribution center equipment and other facilities to promote the spread of next-generation high-definition broadcasting, including preparations for future new 4K/8K satellite broadcasting, as well as to expand platform functions and improve operational efficiency.」

「JCC, which operates communications network businesses for cable television operators and program suppliers throughout Japan, provides a range of services for cable television operators, including the JC-HITS digital multichannel distribution platform service, while also working to promote the adoption of next-generation high-definition broadcasting and expand platform functions. As a result, revenue in the Media Solutions Business was ¥2,788 million, up 4,441.4% year on year, and operating income was ¥221 million, compared with an operating loss of ¥166 million in the same period of the previous year.」

「The Media Solutions Business is conducted by IoTスクエア and JCC. JCC operates a communications network business for cable television operators and program suppliers throughout Japan and provides a variety of services to cable television operators, including the JC-HITS digital multichannel distribution platform service. As a result, sales in the Media Solutions Business were ¥1,904 million, up 4,132.6% year on year, and operating profit was ¥140 million, compared with an operating loss of ¥132 million in the same period of the previous year.」

「The Company made JCC, which operates a communications network business for cable television operators and program suppliers throughout Japan, a consolidated subsidiary in October last year and has reflected it in consolidated results from the second quarter.」

「The Company acquired shares in ジャパンケーブルキャスト株式会社 on 29 September of this year, bringing its ownership interest to 38.3%, and included the company within the scope of equity-method accounting. The Company subsequently acquired additional shares in ジャパンケーブルキャスト株式会社 on 10 October of this year, increasing its ownership interest to 50.4%, and the company became a specified subsidiary of the Company on the same date.」