JAPAN'S NTT, KADOKAWA TO JOINTLY LAUNCH ONLINE VIDEO SERVICE

Nippon Telegraph and Telephone Corp. (TSE:9432) and major publisher Kadokawa Group Holdings Inc. (TSE:9477) plan to join hands to offer fee-based online video distribution starting in the spring of 2010.

The two companies are to establish a joint venture capitalized at several billion yen next month, with the NTT group taking a majority stake.

Users will be able to watch videos on any device that is connected to the Internet. For example, a user could watch part of a movie on a television set at home and then enjoy the remainder on a cellular phone while outdoors.

The video distribution system created by the joint venture will offer recommendations based on users' past purchases. Kadokawa plans to produce original videos that are about five minutes long for viewing on cell phones. This will set this business apart from other video distribution services, which often simply reuse TV shows and movies.

The joint venture will call on companies in the movie, music and publishing industries to provide content. It aims to offer video from some 100 firms in three years.

(Nikkei) rw

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