Japan's 5 TV Stations to Start Webcast With Dentsu
Posted on: Saturday, 26 November 2005, 18:00 CST
Tokyo, Nov. 26 (Jiji Press)--Japan's five major television networks, including Tokyo Broadcasting System Inc. , plan to team up with advertising giant Dentsu Inc. to distribute their programs over the Internet from next spring, informed sources said Saturday.
The plan calls for Dentsu to arrange ads for TV programs and to set up a new company to distribute the programs free of charge, the sources said. The five TV stations will provide the new company with programs for the Webcast.
TBS has already agreed to invest in the new company, and the four others-- Fuji Television Network Inc. , TV Asahi Corp. , Nippon Television Network Corp. and TV Tokyo Corp. --are studying their capital participation.
The scheme comes at a time when TBS is accelerating its efforts to tie up with Internet service firms such as mobile phone content provider Index Corp. , to shrug off pressure from Rakuten Inc. , an Internet shopping mall operator that holds about 19 pct in TBS, to agree to its business integration proposal.
TBS is slated to turn down Rakuten's proposal Wednesday on the ground that the broadcaster's basic policy is to form alliances with a wide range of information technology companies, according to a senior TBS official.
The new company to be set up by Dentsu will distribute TV programs via an Internet portal site and is also planning to make programs available to mobile phone users as well, the sources said.
By forging an alliance with Dentsu, the broadcasters expect to establish a business model that makes ad-financed Webcasting profitable and to attract many online viewers.END
Source: Jiji Press English News Service
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