Japanese and US Companies Launch Joint Cable TV Venture in Japan

A group of major Japanese and US companies have announced plans to establish a cable TV firm that will operate several stations across Japan. The new joint venture, which will be the second of its kind in Japan, is expected to capitalize on deregulation in the country's communications and broadcast market. The company will initially open three cable TV stations in greater Tokyo and plans to increase the number to around 10 nationwide over several years.

Key Takeaways:

• The new joint venture is a collaboration between Itochu Corp. and Toshiba Corp. of Japan, and Time Warner Inc. and U.S. West Inc. of the United States.
• The company will be the second cable TV joint venture in Japan, following a similar venture announced between Sumitomo Corp. and Telecommunications Inc. in late 1993.
• The joint venture will initially operate three cable TV stations in greater Tokyo and plans to expand to around 10 stations nationwide over several years.
• The company will be capitalized at several billion yen and is expected to grow to around 40 billion yen ($396 million) by the time it establishes 10 stations.
• The ownership structure of the venture is as follows: Itochu and Toshiba will each own approximately 29% of the company, while the US companies will each take around 16% stakes, and Time Warner Entertainment Japan Inc. will own around 10%.

Statistics:

• Initial investment in the joint venture: several billion yen
• Projected growth to 40 billion yen ($396 million) by the time the venture establishes 10 stations
• Number of cable TV stations planned in greater Tokyo: 3
• Number of cable TV stations planned nationwide: around 10
• Ownership structure:

+ Itochu Corp. and Toshiba Corp. (Japan): 58%

+ Time Warner Inc. and U.S. West Inc. (US): 32%

+ Time Warner Entertainment Japan Inc. (Japan): 10%

Sources:

• Nihon Keizai Shimbun
• Itochu Corp.
• Toshiba Corp.
• Time Warner Inc.
• U.S. West Inc.