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Mid-term Growth Strategy

(December 13, 2010)

Group's Growth Strategy

Based on our principal "Without the growth of sales, there is no growth for the company", we work on the sales growth in mid-term by enhancing the strategy for both current and new business area as follow.

Current Business Areas
Record Company Business

We estimate continuous decline in the Record Company Business, such as physical and digital distribution of music, by restructure of the industry and the change of user's consumption method.
With the adjustment of structure for creating hits, as well as by promoting selection and concentration of release items, we aim to increase the market share in mid-term and minimize the decline of the sales as much as possible.

Agency Business + BeeTV Membership Business

Amid the decline of the physical music market, we were able to increase our sales by expanding the Agency Business, such as live, merchandising and fan club, and also managed to establish platforms, such as BeeTV (a mobile phone-based video contents distribution).
We aim to keep the same level of sales in mid-term with the above mentioned Agency Business and BeeTV Membership Business to compensate the decline of the Record Company Business.

New Business Areas

"Digital" and "Alliance" as our key words, we will create new business with our eyes on outside the entertainment industry.

We have been developing a 360 degree business centering the artists' music. However, by utilizing the technology and benefit that digital brings, we will shift the business core from artists' music to artists' individuality and talents (such as fashion, books, blog, food, etc) and aim to expand our business-universe infinitely.
For those areas where we intend to newly join, we actively make an alliance with the top players who are the experts in the each area and away from self-contained business at the same time.

New Business Areas

Digital Strategy - Basic concept

We take the information technology innovation a chance and shift our main business battlefield to digital.
By applying the know-how of 360 degree rights operation that we established in real word, we actively expand to neighboring business areas by having alliances with various players inside and outside the entertainment industry.
View the "Digital Agent Business" that accept on trust of the digital rights possessed by outside companies.

Digital Strategy - Basic concept