Internet
ò Market sources indicated that Softbank is looking to TV broadcasting as its next area of expansion. The decision brings Softbank into the fold with other companies in the country looking to deliver content via the Internet. According to SoftbankÆs top official, a service integrating Internet content and on-demand video with live terrestrial television programming could be a logical step for the company.
ò MySpace, the highly popular social networking site, launched a video sharing service on its Japanese web site. The move is seen as directly competing against domestic rivals as well as YouTube. With the service, MySpace Japan follows Japan's popular social services network Mixi, which allows members to upload an unlimited number of their own videos on the Internet. MySpace entered the Japanese market in November with a joint venture between News Corp and Japanese Internet giant Softbank Corp, hoping to entice customers away from Mixi.
Media, Entertainment and Gaming
ò TV Tokyo Corp. said it has adopted a package of measures to defend itself against hostile takeover bids, with the company saying the measures are aimed at enhancing TV Tokyo's corporate value and shareholder benefits. An independent panel of three or more people will decide when TV Tokyo should consider a bid hostile and activate the defensive measures, which include a poison pill that issues equity warrants to dilute a buyer's target stake. Any buyer that wants 20 percent or more of the broadcaster will have to give the panel a report on the reasons for acquiring the stake.
Hardware
ò Sony disclosed a 68 percent decline in its operating profit to 71.8 billion yen ($596.5 million) for the year ended March 31, with the company ascribing the results to factors such as large losses from its game segment. The company posted an 11 percent rise in sales to a record 8.2 trillion yen ($67.5 billion). The company also attributed the rise in sales to the performance of its PlayStation 3 console even as increasing development expenses resulted in a loss of more than 200 billion yen ($1.6 billion) for the game segment. Sony said its net profit climbed 2 percent to 126.3 billion yen ($1 billion), attributing the results in part to the strong earnings performance of equity-method affiliate Sony Ericsson Mobile Communications AB.
ò According to asset management company Sparx Group, Pentax Corp., a precision instrument maker, is prepared to accept a proposal to merge with glass and lens maker Hoya Corp. The proposal is seen as part of the takeover plan of Hoya. As a condition of accepting the takeover, Pentax is demanding a guarantee of management independence and the removal from the board of directors of former senior managing director Katsuo Mori and former president Fumio Urano, who had spearheaded the merger talks with Hoya.
Telecommunications
ò Fujitsu Ltd announced that it has secured a contract for the upgrade of the Japan-U.S. Cable Network, a submarine fiber-optic cable system, with a consortium representing seven telecommunication carriers, including AT&T Corp, KDDI Corp, NTT Communications Corp, Qwest Communications International Inc, Reach Global Networks Ltd, Softbank Telecom Corp, and Verizon Business. Under the contract, Fujitsu's FLASHWAVE S650 submarine line terminal equipment will be implemented at three landing points each in Japan and the U.S. The FLASHWAVE S650 series is capable of providing a significant capacity upgrade to existing systems, more than doubling the original design capacity of 640Gbps of the Japan-US Cable Network beyond 1.28Tbps. The equipment was selected for its compact size, multiplex transmission capability, low power consumption and high reliability.
Korea
Internet
ò Google Korea revealed plans to introduce an age-verification system to its search engine later this year, which is expected to restrict adult-themed searches to those 19 years of age and older. Under the rule, users will be asked to verify their age when searching for any of about 700 words in Korean judged to be adult and supplied to the portal by the Korean government. Users will have to enter their name and national resident registration number, which will be checked against a database to verify the user. The company said the system will be combined with a localized version of the SafeSearch system that is already used on Google's main English-language search engine. Google Korea said it aims to enable the system by Sept. 1. Similar systems are in use by all of Korea's major Internet search portals.
Mobile/Wireless
ò Motorola Inc. said it will start selling the next generation of its popular and ultra-slim Razr cell phone next month in South Korea. The launch was earlier scheduled for July. The new phone, called Razr 2, has a slimmer frame, larger screen and improved call quality compared with its predecessor. Motorola said it will be available via SK Telecom Co., South Korea's largest wireless carrier. In a related development, U.S.-based Motorola announced that it has sold nearly 100 million Razr phones. According to ATLAS Research Group, Motorola accounted for 11.5 percent of the South Korean handset market as of the end of April, with Samsung holding 55 percent and LG Electronics 19 percent.
Media, Entertainment and Gaming
ò Industry sources said KT and the Orion conglomerate have entered into agreements on various joint projects, which include a media content venture with capital of 40 billion won ($42.8 million). On Media, an affiliate of the Orion group, supplies popular channels such as Orion Cinema Network (movies), Toonibus (cartoons), On Game Net (games) and others. Showbox, a movie production company and Megabox, a theater chain, are also Orion subsidiaries. Under the partnership, KT said it is looking to set up a distribution venture with On Media to secure programming for its Internet TV and satellite broadcasts. Another KT project with Orion is a content fund estimated to be worth 100 billion won that will be used to produce movies and soaps. To make films and TV, KT will work with production company Sidus FNH, an affiliate of KT, and Showbox, an affiliate of Orion. In a separate development, KT said it will also set up a distribution venture with SkyLife, an affiliate and a digital satellite broadcaster, at the end of this month.
Hardware
ò Samsung Electronics reported for the first-quarter domestic sales reaching 3.8 trillion won ($4 billion), results considered to be the highest in five years. Samsung attributed the strong performance to greater local demand for cell phones and home appliances. With the first quarter seeing a decline in the prices of memory chips, the company said its total sales were down to their lowest level. In a separate development, Samsung Electronics revealed plans to invest some $423 million in a new LCD assembly plant in Slovakia. Samsung said it looks to the setting up of the Slovakian LCD plant to help cut costs and expand its presence in the European flat-screen TV market. Currently, Samsung has two TV production plants in Europe, one in Slovakia and another in Hungary.
Ventures/Investments
ò General Electric said it may invest in the Korean broadcasting market following the free trade agreement between Korea and the U.S, with the company disclosing its interest in the local broadcasting sector. The announcement did not disclose which companies GE is considering and when this investment will take place. An official with GE Korea said the company is not planning any immediate investments considering that it will take about two years before the FTA goes into effect.
Information Technology
ò LG-Nortel, an LG Electronics and Nortel joint venture announced the unveiling of three new innovative unified communications (UC) devices compatible with Microsoft Office Communications Server 2007 and Microsoft Office Communicator 2007. The company said the devices are designed to help enterprises drive increased productivity by simplifying the way employees communicate. LG-Nortel's new family of UC devices enable unified communications with advanced collaboration and information sharing features such as VoIP, directory dialing, calendar integration, call diversion and presence checking. LG-Nortel's innovative family of UC devices includes three models optimized for Office Communications Server 2007 and Office. Established in 2005, LG-Nortel provides leading edge telecommunications equipment and network solutions, spanning wired and wireless technologies, to service provider and enterprise customers in Korea and around the world. LG-Nortel is also actively developing next generation solutions for global markets, with over 1,000 skilled R&D engineers currently focused on wireless broadband technology evolution and the development of powerful new product lines. Nortel is a recognized leader in delivering communications capabilities.
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