May 29, 2006
Fuji Television Network, Inc.
Sumitomo Corporation and Fuji Television to jointly buy into Indonesian IT firm
Full-fledged launch of services linking TV-shows& mobile-phones
Sumitomo Corporation (President and CEO: Motoyuki Oka; Head office: Chuo-ku, Tokyo) and Fuji Television Network, Inc. (President and COO: Koichi Murakami; Head office: Minato-ku, Tokyo) are to take equity stakes in major Indonesian IT firm Jatis Solutions (CEO: Jusuf Sjariffudin; Head office: Jakarta, Indonesia) to develop a business that integrates television programs with mobile phones. Between them, the two companies will acquire 49.7 percent of Jatis's outstanding shares for around 1 billion yen, and Sumitomo Corporation will get involved in the management of the company by dispatching its executive.
Jatis has been leveraging its Indonesian IT business and mobile-phone-content distribution business to provide commercial television stations with systems that enables viewers to take part in television shows, and the company now has subsidiaries in Singapore and Malaysia. After Fuji Television and Sumitomo Corporation take their stakes, Jatis will establish a new media division that will start developing programs, based on Fuji Television shows, which viewers can take part in using their mobile phones. Jatis will also secure program sponsors, send advertising to viewers in its database, and develop payment systems, aiming to establish the business as an integrated broadcasting and telecommunications operation. If sales from its IT business are factored in, Jatis expects to register sales of 3.5 billion yen in 2009.
Mobile-phone-linked television programs feature a system that enables viewers to use their mobile phones to take part in the shows. Viewers can answer questions on quiz shows, vote for potential stars on audition-type shows, and so on. They are charged a flat fee every time they answer a question or send in a vote, some of which goes to the television station or the program producers. In Europe, this business model is garnering attention as providing a source of revenue that is second only to advertising, and is also spreading rapidly in Asia. However, this will be the first time that a Japanese television station has made a concerted entry into this business. In Indonesia, locally produced versions of Fuji Television shows like Ryori no Tetsujin (Iron Chef) and Hyakuman Otoko (Easy Money) have already become popular among viewers. After securing this content production base in Indonesia, the two companies intend to export this business model to major markets such as Russia, India, and the Middle East.
With around 240 million people, Indonesia is the fourth most populous nation in the world, and with an impressive economic growth rate of 5.6 percent in 2005, its consumer market is expanding rapidly and offers huge potential for the future. Mobile phone subscribers numbered 42 million people at the end of 2005, a figure that is expected to reach 90 million in 2009. The country is already an important market for Sumitomo Corporation, which owns around 40 business investment companies there involved in fields such as electric power and industrial parks. With its investment in Jatis, Sumitomo Corporation will strengthen its foothold in the Indonesian IT and telecommunications sector and the country's consumer market. Fuji Television, meanwhile, will build on its sales of television shows by securing a continental Asian base for producing local versions of its programs, while at the same time engineering an expansion in the market for this new, mobile-phone-linked business.
Profile of Jatis Solutions (information correct as of April 1, 2006):
|1. Company name:||PT. Jati Piranti Solusindo (Jatis Solutions)|
|2. Location of head office:||Jakarta, Indonesia|
|3. Representative:||Mr. Jusuf Sjariffudin|
|4. Date established:||September 1997|
|5. Capital:||Approx. ¥750 million|
|6. Ownership of the company after this investment:||Firium Solutions (Singapore):||50.27%|
|Fuji Television Network, Inc.:||6.00%|
|7. No. of employees||474|
|8. Principal operations:||(1)||IT services (IT consulting, business software, systems development and operation)|
|(2)||Value-added services for mobile phones (distribution to mobile phones of information, ring tones, wallpaper, games)|
|9. Annual sales:||¥1.2 billion (2005)|
Corporate Communications Department,