Dentsu Inc. has begun joint discussions with five of Japan’s major broadcasting companies—Nippon Television Network Corporation; Tokyo Broadcasting System, Incorporated; Fuji Television Network, Inc.; TV Asahi Corporation; and TV TOKYO Corporation—aimed at developing a television-like interface that will allow users to easily select and view video content using a broadband Internet connection, and establishing an operating company to promote the distribution of such content. The service will be based on the on-demand, Internet video distribution businesses operated by each broadcasting company, and the new company will consider new service models for both free and premium content.

Broadcasting and data transmission have become more mutually complementary in terms of hardware and infrastructure, reflected in the spread of broadband networks, improvements in video compression technology, internet connectivity in television sets, and television tuners in personal computers. The environment surrounding the Internet allows for the distribution of a greater amount of video content.

Such factors require measures to provide high-quality content on demand via broadband connections, and for broadcasting companies to jointly develop and establish an Internet-based, highly convenient interface that will allow users to easily select content suited to their particular tastes, as well as to develop distributable content.

The parties will discuss the specifics of this business further, considering a wide variety of opinions.