Media, Entertainment and Gaming
ò Announcing a shift in its strategy, Sony reported that it is planning to close its online music store and forego its proprietary digital audio format. The company said it will focus on MP3 and other open format options. The online music store called Connect sells music in Sony's ATRAC format. Like most other online music shops, Connect has struggled in competition with Apple's iTunes. Sony said its new line of flash memory-based digital Walkman portable music players will play in formats including MP3, Microsoft's popular Windows Media Audio and Advanced Audio Coding (AAC). In a separate development, Apple, which controls more than 75 percent of the portable digital music player market, is expected to announce new versions of the hard-drive-based iPod and a flash memory-based iPod Nano soon.
ò Nippon Telegraph and Telephone Corp revealed its plans to integrate three video distribution services that provide content via fiber-optic lines. The company said the integration of the services is aimed at boosting its efficiency and countering the slow growth of its membership. The plan will see NTT combining the services of OCN Theater, 4th Media, and On Demand TV Inc., which allow users to access video, high-speed Internet connections and low-priced Internet Protocol phone services by installing special tuners between their television sets and the fiber-optic lines of NTT East Corp and NTT West Corp.
ò Jupiter Telecommunications Co (J:COM), the largest multiple cable TV systems operator in Japan, and Home Box Office (HBO) announced plans to offer HBO programming on the J:COM On Demand service starting October. The new license agreement between Jupiter VOD Co, VOD content provider for CATV systems, and HBO, Time Warner Inc's premium television programming subsidiary, is expected to bring HBO's programming to Japanese audiences in high definition via the VOD service. Under the agreement, J:COM On Demand will offer four HBO original programs each month, with 80 episodes available at any given time. The programming line-up is seen as giving consumers choices as what to enjoy under the HBO offering.
Internet
ò According to a top government official, Japan will start research on new network technology to replace the internet. Industry sources note that US and European researchers have already started research to rebuild the underlying architecture of the internet. The change is seen as affecting networking equipment as well as computer software. The countryÆs communications ministry said it is now setting up a committee to work on the post-internet network technology by fall next year. Industry sources said the Japanese government may consider the new network running parallel with the internet or eventually taking its place.
ò According to the Japanese office of Skype, the number of Japanese users of Skype's peer-to-peer internet telephony network will go beyond 8 million by the yearend. At the end of July, the number of registered users in Japan totaled 5.7 million, with the figure still increasing by 9,000-11,000 daily. Skype, a Luxemburg-based unit of US internet auction service firm eBay Inc, allows registered users to call other users from their computers free of charge. Software for the service is also provided free. In the fee-based premium service, offered in Japan by Fusion Communications Corp, users can get Internet Protocol phone numbers. An official of Skype in the country clarified also that the Fusion's service will remain the same even though its parent company has changed to Rakuten Inc from Tokyo Electric Power Co.
ò Mizuho Bank announced that it will launch an online Ferris wheel in a three-dimensional virtual world called "Second Life" as a novel way to promote its services and products. According to the unit of the Mizuho Financial Group Inc, it will be the first major Japanese bank to open a service in Second Life, the virtual world run by the U.S.-based Linden Lab. With the offering, clients can ride the Ferris wheel, which will open in early October in a virtual city operated by advertising giant Dentsu Inc, when they correctly answer certain questions about Mizuho Bank's services and products. The Ferris wheel will open in October.
Mobile/Wireless
ò According to industry sources, NTT DoCoMo is in the final stage of talks with Acca Networks to work on the next-generation, high-speed data communication services business. NTT DoCoMo is reportedly planning to invite other companies to form a large alliance, with Tokyo Broadcasting System Inc., Mitsui & Co and East Japan Railway said to be among the companies considering joining the alliance. Under the alliance, new services will be provided based on the Worldwide Interoperability for Microwave Access standard, or WiMAX. Acca Wireless, a subsidiary Acca has set up in June, will be the core entity for the DoCoMo-Acca business. The partners are expected to increase the subsidiary's capital to around 70 billion yen ($604.6 million) from the current 300 million yen ($2.5 million). Under the deal, Acca will hold about a 45 percent stake in Acca Wireless, DoCoMo about 25 percent and the rest will be shared by other partners. According to the countryÆs Ministry of Internal Affairs and Communications, the next-generation data communication services will use the 2.5-gigahertz bandwidth, with the ministry set to begin accepting applications for licenses to use the bandwidth soon. Sources said Acca aims to enter the advanced communications business because the market for ADSL services is saturated; DoCoMo is seeing a business opportunity in the new area for its technology for communications facility and equipment.
ò Japan Communications Inc, the countryÆs first mobile virtual network operator (MBVNO) announced that it has requested KDDI Corp to open its third-generation mobile phone service network. Japan Communications described the request as aimed at boosting data communications services in Japan and the U.S.
Hardware
ò TDK Corp, a manufacturer of electronic parts, announced that it has signed an agreement with Singapore's Magnecomp International Ltd to acquire a 74.3 percent stake in the Singaporean firm's Thai unit. The deal is valued at 14.2 billion yen ($123 million). Under the deal, the Thai firm, Magnecomp Precision Technology PLC, will become a TDK subsidiary producing key components of magnetic heads for hard disk drives. Magnecomp posted sale of 32.7 billion yen ($282.4 million) in 2006.
Semiconductors
ò Industry sources said that Sanyo Electric Co has accepted final bids from companies seeking to acquire a majority stake in its semiconductor business. The company is expected to select the successful buyer by the end of September. A number of firms, including an investment fund, submitted bids for Sanyo Semiconductor Co. Industry sources placed the amount offered for the takeover as being less than 100 billion yen ($863.7 million).
Information Technology
ò The Tokyo Stock Exchange Group Inc disclosed that it will be getting technological advice from NYSE Euronext. The advice will come under its strategic alliance accord with the world's largest stock exchange group. Under the agreement, engineers from NYSE Euronext will provide recommendations to the TSE on various areas including network management and operation, exchange system capacity and performance management. Earlier this month, TSE became a holding company.
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