USEN CORPORATION

Overview of the Broadcasting Business

Since its inception in 1961, the USEN Group has contributed to the development of Japan’s music culture through its main business of cable music broadcasting. At present, the business provides music broadcast services to 1.2 million subscribers. The Broadcasting Business forms the core of this service. Using dedicated coaxial cable and communications satellites, the Broadcasting Business offers subscribers music, information and other broadcast services.

The History and Future of the Broadcasting Business

Recent declines in the number of restaurants and other retail stores as well as the diversification of new viewership environments in the individual subscriber market have led to a contraction in the market as a whole. However, the Group continues to protect its overwhelming share in the cable broadcast market, garnering high praise for both our "SOUND PLANET" communications satellite music broadcast service and our "MobaHO!" service for individual subscribers, seeking to gain an even greater share of the market. The Group recognizes the need to maintain and reinforce the stable revenue underpinning of the Broadcasting Business. Accordingly, the Group intends to build greater profitability in the individual subscriber market by expanding sales and reducing costs.