Chapter 4

Business-Specific Strategies

Business Outline

Net Sales &Operating Profit
by Segment

2024/3

Media Content Business

TBS Group does business across three segments.
The Media Content Business is the group’s primary line, accompanied the Lifestyle Business aimed at supporting daily life, and the Real Estate and Other Business that generates stable profits.
Building on these three linked pillars, TBS seeks to strike an optimum balance for both growth and stability.

Business segment

Media Content
Business

P.34

LifestyleBusiness

P.36

Business outline
The Media Content Business is the most profitable segment of theGroup, which is built around six core companies: TOKYO BROADCASTING SYSTEM TELEVISION, INC., the nucleus of the TBS Group; TBS
RADIO, Inc. and BS-TBS, INC., the core broadcasting businesses; TBSSPARKLE, Inc. and TBS GLOWDIA, Inc., which comprise the Group’s
program production, and audiovisual and culture businesses; and TBS
ACT, INC., which handles technical, art and computer graphics related
work.
While we grow our primary broadcasting business value, we will
also focus on the three growth areas of streaming business, overseas
business, and live entertainment to achieve the goals of TBS GroupVISION 2030 and further strengthen profitability and drive the performance of the entire TBS Group.
We are also serving as content provider in the Akasaka Entertainment City Plan to help provide wonderful “moments” to everyone.

The StylingLife Group is developing a business based on “demand
creation” market development which develops new needs in themarket, centered around PLAZASTYLE COMPANY (retail household
goods) and BCL COMPANY (cosmetics development, production, andsales) along with LightUp Shopping Club Inc. (mail-order retail) and
CP Cosmetics Inc. (beauty salon business). We aim to keep developing
and providing products and services with superior profitability in our
main field of Beauty & Wellness by taking advantage of our uniqueintegrated manufacturing and sales approach, which combines thedevelopment and manufacture of products with a broad distribution
network that includes specialty stores, mass merchandisers, beautysalons, and mail order.

￥325.6

Lifestyle Businessbillion￥10.8

Real Estate andOther BusinessbillionNote: Net sales (outer circle)
are from sales to outside clients
Operating profit (inner
circle)Content Business built on astable operating base provided
by the real estate businessThis segment covers all the business involving real estate management, such as TBS Broadcast Center, Akasaka Sacas, and Midoriyama
Studio City.
TBS is also working on urban development to help turn Akasaka
into “the city offering the greatest emotional experiences in theworld” with the Akasaka Entertainment City Plan.

billionEstablish a foundation for new growth by
fostering growth from seeds sown earlier, as
well as achieving new business development• Television and radio content(Dramas, variety shows, news, sports, anime, etc.)• Performance content(Movies, theater, musicals, live music, etc.)• Program formats

￥550

20XX
billion￥38.5
billionFurther content expansion andbusiness acceleration in eachgrowth area

Primary KPIContent

Platform• Terrestrial & satellite broadcast• Radio broadcast• Web streaming platforms• Recorded media (DVD/BD etc.)• Terrestrial broadcast ratings• Viewer ratings• Number of videos distributed• Radio listener ratings•T heaters(TBS Akasaka ACT Theater, IHI Stage Around Tokyo, etc.)• Manga•P atents, intellectual property, andmusic• Intellectual training and education(SCHOP Inc., etc.)• Overseas broadcast & streaming company• Number of CS subscribers• Physical stores (TBS Store, THE MARKET, etc.)• Number of visitors• Licensed Retailers• Akasaka Sacas• Box office revenue• Number of purchasers &Unit purchase priceContent• Household goods, Apparel etc.

LifestyleBusiness• Cosmetics, Quasi-drugs etc.

Platform• Facial aesthetic care etc.

• Customer base

• Physical stores (PLAZA, VECUA Honey)• Shops, mail order membership,
membership base

• Wholesale (Domestic drug stores)• Number of shops (retailers,
wholesale customers, etc.)• Number of licensed beautysalons• Licensed retailers (CP Salon)• Character licenses• E-Commerce & Catalog sales• Number of beauty salons• Overseas general trade• Ratio of overseas sales (BCL)• Ratio of operating profit to net
sales

Content

Real Estate andOther Business￥370
billion
20XX￥18.5

Main content and platforms

Media
Content
Business

2030/32021/3

Real Estate
and OtherBusiness

Platform• Building leasing• Akasaka Biz Tower, The Hexagon etc.

• Capacity rate

• Residential condominiums• Akasaka The Residence• Occupancy rate

• Studios, parking lots

• Midoriyama Studio, Kinuta Studio• Renewable energy rate

• Heating & cooling, electricity• CO2 reduction rate

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TBS Group Integrated Report 2021

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Chapter 4

Business-Specific Strategies

Offering timelessand beloved content
and services to people
all over the world

Media
Content
Business■ Segment Strengths and Issues

Strengths • L argest reach in the media industry• Content production and comprehensive promotion capabilities cultivated over years•C ompany owned theaters

Risks• F ormat sales expertise

Dependence on terrestrial TV advertising revenue and domestic economic fluctuations
Television advertising revenue accounts for a large percentage of Group revenue, but it is strongly linked to advertising
company performance and the domestic economy, and so issusceptible to sharp downward trending.

Issues •D ependence on advertising income in terrestrial TV•C ontraction of the TV advertising market■ Growth Trajectory and Overview for FY2020

Growth trajectory • As a broadcaster built around a core of television and radio, where
television remains a media king, the company has been deliveringhigh-quality content to viewers through a variety of platforms•With widespread internet adoption, there has been a shift to “digitalfirst” broadcasting along with terrestrial and satellite broadcasting• Our comprehensive production capabilities allow us to offer entertainment through not only audiovisual content but on the live
stage as well
• Started the subscription video streaming service Paravi (from April
2018)

Operating profit(Billions of yen)

位入ル）(Billions of yen)300

20,000

20

250
15

200

15,000150

10,000

10

100

5,000

5

50

0

0

34

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20

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TBS Group Integrated Report 2021

/3
22 )20rojected(P

0Intermedia competition and content acquisition
As we shift from broadcasting to streaming, the number ofcompetitor services has increased and competition intensified, and the demand for quality content has led to greater
competition in content acquisition.
Film and event businessDespite initial profitability assessments before any decisions
on planning, production, and investment, there is a risk thatfunds might become uncollectable due to issues with audience attraction or merchandising.
Copyrights and other intellectual property rights
Many people, like original authors, scriptwriters, and performers are bound up with copyright and adjacent intellectual rights. If the appropriate measures are not taken whendeveloping multi-use products, there is a risk that broadcast-• IHI Stage Around Tokyo (From March 2017)■ Growth Strategies• S ASUKE: Developed in 165 nations around the world

Opportunities

Overview for FY2020 • 2020 advertising expenditures in Japan(calendar year, as per Dentsu)- Total advertising expenditures in Japan: ¥6,159.4 billion (-11.2% YoY)
- Terrestrial TV advertising expenditures: ¥1,538.6 billion (-11.3% YoY)
- Internet advertising expenditures: ¥2,229 billion (+5.9% YoY)
• Spot sales revenues decrease due to contraction of spot advertising market- Spot sales revenues: ¥69.8 billion (-11.9% YoY)
- Kanto area advertising broadcast decrease: -13.6% YoY- Share among 5 stations: 19.7% (up 0.4 points YoY)

• Strong performance in streaming and shopping businesses due to home nesting demand-C ontent revenue: ¥15.8 billion (+45.7% YoY)
• Free catch-up streaming: First of the five Tokyo stations with
32.85 million monthly views- Licensing business revenue: ¥2.2 billion (+76.8% YoY)

■ Market Overview• TBS Group content strength concentrated through Group reorganization

Net sales- T ime sales revenues: ¥78.4 billion (-10.0% YoY)
- E vent & box-office revenue: ¥2.6 billion (-63.2% YoY)

• Information reliability in the midst of information overload•E xtensive program video materials & archives

Media Content Business
Net Sales and Operating Profit• Cancellation or reduction of sporting and live events dueto the COVID-19 pandemic

ing and distribution could be stopped or that liability fordamages could arise.
Capital expenditures
In addition to maintaining and updating our broadcasting
infrastructure, the expansion of digital media will require
investment in new technologies, but those additional costs
may not be commensurate with revenues and so may not be
fully recovered.
Technology, systems, security
We are updating and renovating core systems in the terrestrial and satellite broadcasting business, developing systems
in the video streaming business, and responding to new technologies such as 5G, but we may need to reinvest more thaninitially planned in order to respond to the speed of technological innovation and changes in consumer needs.
In addition, although we have taken security measuresagainst the recently increasing precision and sophisticationof cyber-attacks, there is a risk that even more significant
investment and costs for response and countermeasures
may be required in the event of new, even stronger security
threats, or if any risk such as a personal information breachis exposed.

• Development and expansion of digital business, including streaming• Borderless content distribution• “Goods - Time - Emotion” consumption behavior, experience, and fulfillment needs• Corporate, organizational, and individual social issue initiatives

Issuesneeding
addressing• Enhancing and expanding content• Platform diversification• Innovation acceleration• Responsibilities as a broadcaster• Staff education & workstyle improvements• Human resources investment & organizational reform• Growth strategy investment & R&D

As seen in
TBS Group
VISION 2030

• Growth in video streaming business and earnings expansion• Business development through XR content, etc.
• Content creation for global distribution• Taking live entertainment at Akasaka Sacas to the next stage• Expanding broadcasting business in existing regions• Increasing value of broadcast business• Growing Intellectual training and education business

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Chapter 4

Business-Specific Strategies

Bringing customers
a more comfortable,
more individual
lifestyleLifestyleBusiness■ Segment Strengths and Issues

Strengths • Leveraging integrated manufacturing and sales for improved profitability- Leveraging BCL’s development and manufacturing strengths to introduce
private brand products (retail business)- Develop products using retail business data (cosmetics business)■ Market Overview

Risks
Response to changes in demographics and lifestyle
As Japan’s population ages and decreases, and domestic lifestyles change, resulting impacts on product development andsales could impede Group growth, even as it responds withreinforced expansion into overseas markets.

•T arget Generation Z by leveraging PLAZA’s name recognition

Issues •Enhance digital functions for emergency situations, such as the
COVID-19 pandemic- Encourage shop customers to adopt e-commerce, and offer greater supplementary service to regions with no shops- Maintain customer contact through reinforced web and social media presence• Compensate for rural gaps in the currently urban-focused networkof directly managed shops- Promote franchise (FC) business•A ccelerate overseas business to reduce Japanese business focus■ Growth Trajectory and Overview for FY2020

Growth Trajectory • Retail Business: PLAZASTYLE COMPANY, which operates the general merchandise retail store PLAZA, has seen sales growth driven inpart by an increase in young female customer numbers and strong
sales in the cosmetics field.

Lifestyle Business
Net Sales and Operating Profit
Net sales

位入ル）

20,000Operating profit(Billions of yen)(Billions of yen)

75

8

60

15,000

645

10,000

4

30

5,000

2

15

0

0

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TBS Group Integrated Report 2021

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22 )20 ctedje(Pro0• Cosmetics Business: BCL COMPANY which develops, manufactures,and sells cosmetics generated significant sales and profits aroundthe major hit “Saborino,” which created demand in the new market for morning face masks.

Overview for FY2020 • The StylingLife Group faced difficult market conditions due to temporary closures and shortened business hours in response to emergency declarations and other factors related to the COVID-19 pandemic, as well as a significant trend towards a stop in human traffic
because of telework and remote classes.
• Under these circumstances, LightUp Shopping Club Inc. (mail-orderretail) and CP Cosmetics Inc. (beauty salon business), both of whichtarget the Group’s membership-style customer base segment, performed well. LightUp Shopping Club Inc., in particular, successfully
captured consumers’ home nesting demand and achieved a significant increase in sales and profits over the previous year, mainly inthe food and household goods fields.

■ Growth Strategies

Response to increased frequency and severity of disasters
and increase in unseasonal weather
We can assume that future disasters like earthquakes, typhoons, and new pandemics may halt production, logistics,
or operations, and although we have countermeasures inplace, they could have a significant impact on our financial
position and business performance.

Opportunities• Respond to changes in consumer mindset or behavior- Strengthen targeting for younger demographic, which has increasing demand for cosmetics, by integrating production and sales- Expand customer contact opportunity and time through enhanced
coordination between retail shops and web/social media presenceIssuesneeding
addressing• Early recovery into a growth trajectory
after the COVID-19 pandemic• Recreating profitability through
PLAZASTYLE COMPANY restructuring• Expanding highly profitable fields (beauty& wellness)• Strengthening proposals to major distributors in the reorganized drugstore market• Response to market changes- Life Post-/With-COVID: Enhanced mail-order and regional (FC) development- Reorganized drugstore market: Faster proposals to major distributors

As seen in
TBS Group
VISION 2030

• Expansion of “lifestyle proposal” style business: food, clothing, home, and beauty• Accelerate digital (web/social media/e-commerce) measures• Identify and nurture “seeds” within the group• Increase brand value• Strengthen overseas development (production & sales)• Establish alliances outside the group

StylingLife Holdings Group Organization

StylingLife Holdings Inc.
Number of shops

StylingLife Holdings Inc.
Group Management Platform

PLAZASTYLE COMPANYBCL COMPANY

General merchandise retailsales business

Beauty & wellness businessDirect-managed retail household
goods shops

Development, manufacture and salesof cosmetics and quasi-drugs, etc.

Franchise business, licensing business

Manufacture and sale of cosmetic
tools, hairdressing equipment, andscientific equipment

CP Cosmetics

LightUp Shopping Club Inc.

Beauty & wellness business

Mail order business

Development, manufacture and sales of cosmetics and quasi-drugs, etc.

Mail order and retail shop sales of clothing,electronics, homewares, watches, shoes,
liquor, etc.

Manufacture and sale of cosmetic tools, hairdressing equipment, and scientific equipment

PLAZA

CP Salon

LightUp

122

1,240

4

BCL

(VECUA・ROA)

28

PLAZA PASS

PLAZA
Members

PLAZA
App

4.16million

3.5million

105％ YoY

186％ YoY

Note: All figures are current as of the end of March 2021; PLAZA App
number is the total number of downloads.

TBS Group Integrated Report 2021

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Chapter 4

Business-Specific Strategies

TopicsReal Estate
and OtherBusiness

Transforming Akasaka
to provide wonderful“moments” to every
visitor■ Segment Strengths and Issues

Strengths •P roperty owned in the Akasaka area, including Akasaka Biz Tower•A chieving profit generation from stable tenantsIssues 

The Group is seeing a variety of seeds sprouting that explore and usher in the TBS Future Vision.
They are creating a vision of TBS that pursues content to appeal to a wide, global audience;a TBS which nurtures practical creativity in the children who will shape our future;
and a TBS which embodies the group’s inherent spirit of challenge. Here, we introduce three examples.

Topic

1

Signing a strategic partnership agreement with
Korea’s CJ ENM

CJ ENM is South Korea’s largest content creator. It invested in and distributed the film
Parasite, winner of numerous awards at the Cannes Film Festival and US Academy
Awards, and it is parent company to Studio Dragon, which created the popular Netflix
series Crash Landing on You.
Moving forward, CJ ENM and TBS Group’s top creators will collaborate in developing and producing television dramas, variety shows, movies, and other content targeting the global market, and the two companies will cooperate in fields where bothhave strengths, such as live entertainment (music, theater, etc.), anime, and manga. In
addition, they will work together to promote multifaceted initiatives such as mutual
exchange of creators.

© CultureDepot.
© STUDIO DRAGON Corp. ALL RIGHTS• L imits to future growth due to limited tenant capacity• Significant impact from external environmental changes, such as
the decline in occupancy due to the slump in the restaurant business and the trend toward office-less work due to the pandemic■ Growth Trajectory and Overview for FY2020

Growth Trajectory • The company has been generating stable profits in the real estateleasing business• We have continued acquiring land and buildings in the Akasaka
area, including The Hexagon• We established TBS HEXA Inc. to promote a stronger real estate
operation and management system

Overview for FY2020 • Decrease in tenant occupancy and rent income due to the COVID-19
pandemic• Further capital expenditures in relation to the Akasaka Entertainment City Plan

■ Market Overview

Topic

2

Fostering Practical Creativity: Fulfilling
intellectual training and education businesslike Schop School

TBS established Schop, a next-generation education development company,in collaboration with Dentsu and Edusol.
At Schop School, children not only learn, but also develop the essential
skills to survive and thrive in an uncertain society through understanding
the essence of issues and how they work, and then letting their imaginations run to explore new ideas.
This school will bring in a growth cycle for of “practical creativity”
through our uniquely designed methods. Those methods are based on both educational theories from around the world, and the efforts of creators with the real-world
achievements and knowledge, who are engaged in socially-relevant education.
In addition, TBS’s intellectual training and education business supports learning fora wide range of generations through investments in Place Holder, Inc., which plans andoperates experience-based digital theme parks, and through a business alliance with
UZABASE, known for the social, economic media NewsPicks.

Risks • Impact on rental income due to changes in the real estate & leasemarketReal Estate and Other Business
Net Sales and Operating Profit
Net sales

位入ル）• Increase in capital expenditures due to soaring real estate market
value in the Akasaka area

Operating profit• Increase in operating costs due to real estate acquisitions(Billions of yen)(Billions of yen)17

9

20,000

Opportunities 

16.5• Increase in rent income due to the acquisition of properties in the
Akasaka area

15,00016

10,000

7.5

15.5

5,000
0

15

38

■ Growth Strategies• Increase in revenues from attracting customers to existing facilities
because of the Akasaka Entertainment City Plan
Issues needing
addressing

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As seen in TBS GroupVISION 2030

• Current state of “the city offering the greatest
emotional experiences in the world”• Efforts to address global environmental problems• Completion and operation of Akasaka
Entertainment City Plan
• Making Asakasa another Broadway

Topic

3

Connecting cross-organizational ideas
JNN Business Challenge

Based on the starting question “What will ittake to survive in the general media industry in five years?”, we launched the businessproposal system “TBS Group Business Challenge” in 2018 with two goals: 1) create
new business models and 2) foster businessmindsets in our staff.
We have adopted two proposals eachfrom the three past sessions, and commercialization for each is underway. From 2021,
the call for proposals will be extended beyond the TBS Group to JNN affiliate stations, and the name will be changed to JNN
Business Challenge (details on page 45).

List of Adopted Proposals
FY2018 Smartphone-first Video Content Event
Business (PURPOSE)
VR/AR Business (Kaiju no Sumika Kaiju
Haven VR Adventure)
FY2019 A n i m a l C o n t e n t - b a s e d E d u c a t i o n a lEntertainment Business (Amazing Animals/WAKUWAKU YouTube Channel)
Wellness Business Offering the Wonderful “Moments” (Akasaka Sauna
Project)
FY2020 Rental Space Service to Relive TV Drama
Experience (The Full-Time Wife Escapist
Space)
Video Upload Service for Dance Lovers(CYPHER (Provisional Name))

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