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Avex Powers Geo Channel SVOD

Avex Group Holdings Inc. (the “Company”) announces that Avex Digital Inc. (head office: Minato-ku, Tokyo; president: Masato Matsuura), a wholly owned subsidiary of the Company, has decided to provide its expertise in system development and the procurement and management of content for GEO CHANNEL, a flat-rate online video distribution service (“SVOD*”) that Geo Corporation (head office: Naka-ku, Nagoya, Aichi; president: Yasushi Yoshikawa) and Geo Networks Corporation (Toshima-ku, Tokyo; president: Toshiki Hayashi), wholly owned subsidiaries of Geo Holdings Corporation, plan to commence. Details are as follows.

*SVOD = Subscription Video on Demand

1. Background and purpose of the service

Due to the development of communications infrastructure and innovations of content viewing devices and other equipment, the environment surrounding video entertainment has been changing significantly, and the trend in the online video distribution market, which distributes video content that can be viewed anywhere, anytime, is attracting attention. In this environment, the Company will propose a lifestyle of enjoying video content in different ways by providing the Avex Group’s expertise in system development and the procurement and management of content for GEO CHANNEL, an SVOD service that is going to be launched by Geo, which has around 1,200 stores in Japan and over 16 million unique users.

2. Outline of GEO CHANNEL

Name : GEO CHANNEL

URL : http://geo-online.co.jp/

Start date : February 2016 (scheduled)

Plans & fees :
Basic plan: ¥590 (exclusive of tax); unlimited viewing of distributed content
*There are some pay-per-view content offerings
Optional plans:
- Store rental option: The basic plan + monthly charge of ¥590 (exclusive of tax)
* Up to 20 Catalog DVDs / Blu-rays rental at stores.
- Delivery rental option: The basic plan + monthly charge of ¥590 (exclusive of tax)
* Up to 8 Catalog DVDs / Blu-rays rental for home delivery (can be rented for 14 nights and 15 days).
(The optional plans will be offered after the commencement of the service.)

Devices : Smart phone, tablet, PC, Television (via Chromecast or HDMI cable for connection.)

Video quality : SD (standard definition) and HD (high definition)

Payment : Credit card

Features :
(i) Up to Twenty catalog titles maximum per month can be rented at stores and eight catalog titles maximum per month can be rented through home delivery (for 14 nights and 15 days) if optional plans are chosen.
(ii) Five devices per account can be registered. Users can view content anywhere, anytime, using a device they like.
(iii) Over 80,000 videos will be distributed. They are classified into 13 categories: foreign dramas, Japanese dramas, South Korean and Chinese movies and dramas, kids programs, animes, foreign movies, Japanese movies, music videos, live videos, karaoke, cultural and variety programs, pay-per-views, and videos for adults*.
*Videos for adults will be procured by Geo.
(iv) Contents will be able to be downloaded to smartphones.

Operation : Geo Corporation, Geo Networks Corporation

3. Outlook

The impact of the commencement of the service on the Company’s consolidated results in the fiscal year ending March 31, 2016 will be minor, but we expect that the service will contribute to an improvement in earnings in the medium and long term.

Source: Avex Group Holdings Inc.