Media Service SectorOutline of Business and Priority Measures

Media Service Sector

Media Business

With the aim of enhancing the capacity to provide solutions, JVCKENWOOD has implemented an organizational change effective April 1, 2016. The organization has been realigned into departments by business models to promote the three areas of Solutions Business, Products Business, and Imaging Devices Business, from the conventional organization that was segmented vertically by product category.

Solutions Business

In the content creation area, we carry out development and sales of high-value-added products, including 4K/2K video cameras, high-definition monitors, professional Blu-ray recorders and industrial image systems that meet the needs of the professional sectors, such as broadcasting, video production, education and sports.

In the projector area, we are engaged in the development and sales of projectors based on our unique D-ILA LCOS (Liquid Crystal On Silicon) devices optimized with high contrast, such as full-fl edged home projectors, high-resolution projectors for professional use such as fl ight simulators as well as projectors corresponding to the HDR (high dynamic range) that are used for automobile design.

Customer needs are rapidly changing, as an effect of the diversifi cation of broadcasting and business forms due to the Internet of Things (IoT) and the advancement of high-quality video technologies such as 8K/4K imaging technologies.
In order to respond to such needs flexibly, in addition to providing equipment, at JVCKENWOOD we are promoting a transformation to a solutions business that enables us to promptly respond to customer needs through systemization and customization.

Products Business

While the video camera market continues to contract on a global basis, our imaging area maintains a strong presence in the market owing to such efforts as promoting a shift to a proposal-based and high-value-added product lineup, including long playback models and all-weather models.

In the AV Accessory area, which handles products such as headphones, JVCKENWOOD will strive to improve its presence in the principal markets around the world by strengthening the lineup of high-value-added products, such as high-resolution audio models that leverage the Group’s unique advanced acoustic technologies, and special-purpose products, such as headphones for sports and kids, and by providing new products that meet a variety of needs.

Imaging Device Business

JVCKENWOOD is striving to expand its businesses in global markets by expanding external sales of its proprietary LCOS devices, achieving full-scale production of Pico devices, launching next-generation image devices such as HUD and releasing projectors compatible with 4K/2K and 8K/4K. In addition, we will aim to achieve full-scale deliveries in the imaging device business through cooperation with AltaSens, Inc., a subsidiary handling CMOS sensors.

Future Outlook

In order to shift our focus for growth onto the professional business from the consumer business as a profit-base business, we will accelerate the change from technology and product deployment for industrial use while also promoting transformation to the solution business by growing out of standalone sales.

Entertainment Business

Content Business

The Content Business, which has as its core Victor Entertainment, Corp., is endeavoring to enhance its core Music Business in two ways. The first is by responding to changes in the entertainment industry environment, such as the diversification of user preferences and the popularization of the Internet and mobile phone distribution as a result of improved infrastructure. The second is by making enterprising investments in talented new artists to discover and foster such artists and promote a partnership strategy to create hits. Victor Entertainment is the second-oldest record company in Japan and has continued to deliver excitement to people through artists and music for over 85 years. Also, in anticipation of the popularization of the online music distribution market featuring high sound quality, we set up VICTOR STUDIO HD-Music, a high-resolution audio online music distribution site in February 2014. Further, we will aim to make an entry into new music distribution services, such as flat-rate services. In December 2012, JVCKENWOOD entered the Space Sound Production Business on a full-scale basis by launching its KooNe Space Sound Design Solution, which uses a high-resolution audio sound system. We have introduced the system to many locations, such as corporate offices, commercial and entertainment facilities, libraries and residential facilities.

OEM Business

In the OEM Business that specializes mainly in the production of packaged software, such as CDs, DVDs and Blu-ray products, we fully support customers and meet their requests, from the production of content to the creation of package media. In 2016, we will relocate the Rinkan Business Center (Yamato City, Kanagawa Prefecture) of JVCKENWOOD Creative Media Corporation, a subsidiary engaged in the contract manufacturing of packages, to the Yokosuka Plant to enhance the corporate value of the entire Group. Going forward, we will aim at strengthening and improving the efficiency of marketing/sales activities by concentrating the Group’s capabilities.

Future Outlook

JVCKENWOOD will aim to make a transition to the total entertainment business, including the management business, live concert/event business and merchandising business, by connecting the appeal of artists and music to various businesses in a range of fields. In addition, we will enhance the comprehensive capabilities of the Group by expanding new B-to-B domains and making the most of our music, video technologies and know-how.

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