The following information is true and accurate at the time of publication.
January 30, 2002
Sony and Dentsu Announce Cooperation to Create New
Communications Business for the Broadband Era
-Dentsu to acquire 40% stake in Intervision-
Sony Corporation and Dentsu Inc. have reached an agreement to develop a new communications business uniquely fitted to meet the needs of the broadband era. Specifically, Dentsu will take a 40% stake in Intervision, Sony's fully-owned advertising agency from April 1, 2002. On that date the company's name will be changed and it will start operations as a new entity.
The company aims to break completely new ground in developing a communications business for the media of the broadband era. It will creatively combine Sony's broadband network technology and the rich content of Sony group companies with Dentsu's marketing and communications expertise and human resources strength. As a member of the Sony group, the new company will handle the communications business needs of Sony companies. However, it will also actively seek other clients and develop new business outside the group.
1) Developing a Communications Business for the Broadband Era
By combining Sony's latest broadband technology and the rich content developed by its group companies with Dentsu's marketing expertise, an exciting new business field will be carved out.
1. Interactive Marketing - Broadband media allows the dissemination of rich and creative advertising content while simultaneously enabling interactive marketing opportunities with viewers. The company will develop a new marketing model for the broadband era
that fuses the highly effective Customer Relations Management made possible by internet interactive media with corporate and product advertising approaches equaling the creative strength employed in "traditional" mass media.
2. Content Business over the Broadband Network - A new business model will be developed exploiting the unique features of the broadband infrastructure. This will include: inviting and discovering new content over the internet; distribution of content through multiple digital media; developing internet sales channels for content; and giving financial and other support for content creation.
3. Technology Development for New Broadband Media - Intervision's current "PaSaTa" service allows video CMs precisely targeted at customers' profiles to be inserted into streaming content. The company will develop this direction further - distributing subscription-based content over the net fitted to individual tastes and as well as streaming video CMs. It will actively develop the new technology needed to support these services in the broadband media environment.
2) Account Planning (Brand-focused)
The new company will provide a range of services tailored to the individual needs of companies who are increasingly focusing on brand issues.
1. Provide advertising production and campaign plans which address corporate branding needs from analysis to strategy planning to create the best solutions.
2. Brand unit teams with all the relevant expertise will coordinate the proposals giving the fastest and most comprehensive service possible.
3) Media Planning and Buying
To create the best possible brand presence, centralized media planning and media buying will be implemented based on an optimal mix of traditional and broadband media. These activities will be coordinated on a corporate group basis for the most effective execution. The new company will be responsible for integrating the media business needs of Sony group companies in Japan and Asia.
Since its acquisition by Sony in 1997, Intervision (with Sony's support) has developed a range of new advertising tools based on the internet and digital media. With this agreement, the new company will accelerate its drive to create a communications business based on the digital media of the broadband era.
As part of Sony's overall strategy for global media consolidation, the company will play a central coordinating role for Sony's media planning and buying activity in Japan and Asia, in an attempt to create the most effective advertising operations possible. The Sony brand will also be strengthened through strong, distinctive advertising activity that reflects the respective marketing strategy of each group company while at the same time creating inter-company synergies.
- New Company Outline
- Announced by start of operations on April 1, 2002
- Ikuya Tanaka (present Director, Dentsu Inc. Sports Marketing Division)
- 6-1-24 Roppongi, Minato-ku, Tokyo 106-0032
- Net sales:
- Estimated 55 billion yen in first year of operation (FY 2002)
- 240 million yen