Medium-term Management Plan for FY2008 November 21th, 2006 November 21th, 2006 Nippon Television Network Corporation
Implement Medium- -term Management Plan term Management Plan Implement Medium � Reorganization of subsidiaries to combine NTV Group's comprehensive strengths NTV Eizo Center, NTV Video, NTV Enterprises and NTV Art will be divided by the corporate division method according to industry sector and functional categories to be reclassified into these four companies. NTV Comprehensive Production Business Company (holdings company) Technology Company Production Company Events Company Art Company “NTV Technical” “NTV Dream Content” “NTV Events” “NTV Art” (provisional name) (provisional name) (provisional name) � Strengthening content production capabilities to achieve "total success" � Reorganizing by functional categories to maximize Group revenue 2
Strengthening Content Production Capabilities Strengthening Content Production Capabilities � Quickly produce high success rate for programming reforms � Without waiting for usual April reform, move forward with January reform (if necessary) � Fortifying Golden and Prime time slots is the proposition for April reform � Non-Prime time reform in October Solidify all programming time periods by April 2008 ▪ Further strengthen popular dramas � Raising not only viewer ratings, but program quality also (NTV’s ingenuity) � ”Special Drama Marking 60 Years After the War: Tombstone for Fireflies” Second Annual “Japan Broadcast Culture Awards” ▪ “The Queen’s Classroom” The National Association of Commercial Broadcasters in Japan (NAB) Outstanding TV Drama Award ▪ “Mother at Fourteen” despite serious theme, solid viewer ratings � Project Development ▪ Aggressively utilize Saturday and Sunday daytime slots ▪ Movies, special dramas, sports, intelligent entertainment 3
Expansion of Non- -broadcasting Sales broadcasting Sales Expansion of Non ► Growth of content business sales � Assertive approach to movie business revenue of 3.6 billion yen from first half of year (+2 billion yen compared to same period of previous year) Positive effect of investment in blockbuster movies smash hits “DEATH NOTE” and “TALES from EARTHSEA” mainstream hit DVD “ALWAYS—Sunset on Third Street” revenue from TV broadcasting rights of “Howl’s Moving Castle” � Steady expansion of media commerce business revenue of 2.3 billion yen from first half of year (+1.4 billion yen compared to same period of previous year) profit grew 5.8 times compared to same period of previous year E xpansion of sales programming slots and introduction of original merchandise in collaboration with programs 4
Challenge to Maximize Content Value Challenge to Maximize Content Value � Generate maximum revenue through multiuse of movies, terrestrial broadcasting, DVDs and program sales overseas ① Movie “DEATH NOTE” prequel released June 17 box-office revenue 2.8 billion yen flood of overseas offers from over 60 countries; agreements reached with seven countries Just four months after movie release, “DEATH NOTE” prequel shown on terrestrial broadcasting, earning viewer rating of 24.5 ％ ② Movie “DEATH NOTE” sequel released November 3 97,000 moviegoers over 3-day holiday weekend with box office revenue of 1.2 billion yen set 2006 record for opening weekend for Japanese movies 250,000 moviegoers box-office revenue 3.1 billion yen (as of November 19) ③ DVD “DEATH NOTE” to be released next spring from VAP Inc. ④ Animation “DEATH NOTE” began October 3 on terrestrial broadcasting LLP with NTT DoCoMo First investment initiative DVD （ part 1 on sale in December ） plus program sales overseas 5
NTV2 Strategy NTV2 Strategy • First year commemoration campaign underway • Number of subscribers 500,000 （ As of Nov.20) • Male-Female ratio 6 ： 4 higher female ratio • Viewer submission site began in November • Strengthen access of sports content across various media platforms “Tokyo Big6 Baseball League” “All Japan High School Soccer Tournament” “Hakone Ekiden” • New and improved usability of top page from December • Lower hurdle to allow easier video viewing from January and raise value as free advertising vehicle Provide both content requiring and not requiring subscription • Aim for 1 million subscribers and site with high rate of downloads 6
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