USEN CORPORATION

Overview of the Karaoke Business

BMB Corp. handles commercial satellite karaoke equipment sales and maintenance, as well as karaoke room operations. BMB sells products mainly under the "UGA," "UGA-neonR2," and "UGA-RAKUEN" brands, boasting the top market share in the industry. Through BMB Corp., the Group is beginning a major push into overseas markets.

The History and Future of the Karaoke Business

While the number of clubs and bars in the "night entertainment" market has been declining, the "day entertainment" market has shown a slight recovery, driven by an increase in the number of individual consumers and an increase in per-customer unit prices. This is also a period of increased demand for replacements of previously installed equipment, presenting a chance to expand our business. Accordingly, the Group has launched an advertising campaign to enhance recognition of the "UGA" brand, pushing to capture an even greater share of the market. At the same time, the Group continues to optimize the operations of its karaoke room network, and to add new locations. In China, where growth in the karaoke business particularly significant, we have opened two karaoke rooms, completing our strategic entry into the market. The Group is working to expand sales and enhance competitive capacity in order to establish our brand more firmly in the Chinese market.