Chapter 505: The Dawn of DVD Era

[Chapter 569: The Dawn of DVD Era]

Arthur's West Pacific Investment Company has significant assets in Japan, particularly with its investments in Uniqlo and the management of pachinko machine businesses.

There's also Sky Entertainment, which oversees Freak Studios responsible for developing the Pokemon franchise and publishing the Detective Conan manga. Additionally, Sky Entertainment runs SJ Artist Agency, managed by Yasukato Sawaguchi, focused on advancing talent within the industry.

In Tokyo, at the offices of Sky Entertainment in Akasaka, Arthur sat back in his chair, exclaiming, "I can't believe how popular Tom Cruise's Mission: Impossible is in Japan, raking in an impressive 3.6 billion yen at the box office!" He added, "MGM's Twister only made 2.3 billion yen here, and The Rock hit 1.4 billion yen."

"Now, although the yen is depreciating, the exchange rate with the dollar is still just 110," Arthur remarked. "Luckily, Independence Day is still playing in Japan, and its box office has already surpassed 5 billion yen!"

"Hollywood blockbusters dominate the Japanese market these days," Oishi Megumi said affectionately as she sat on Arthur's lap. "However, in Japan, it seems like most people don't care for the typical popcorn flicks. They're more into thrillers or genuine special effects spectacles."

Arthur playfully squeezed Oishi Megumi, continuing, "12 Monkeys grossed 1.1 billion, just a billion more than our GoldenEye." He tapped his fingers on her shoulder, "The Hunchback of Notre Dame made 1.2 billion, and don't forget, the Se7en film we released a couple of years back did quite well too, pulling in 2.6 billion!"

He noted that narrative-driven films and action blockbusters were far more appreciated in Japan compared to mindless action flicks that overwhelmed other markets. Leaning down, he kissed Oishi Megumi on the cheek and smiled, "So, how come Japan's number one female anchor has decided to leave the network?"

"Hmm, I'm stepping into the film and television industry now, working on shoots for both TV and movies, plus participating in ad campaigns and magazine photoshoots," Oishi Megumi said, snuggling up to Arthur's neck. "But I'm nowhere near the level of our two senior predecessors."

She had 50,000 shares of Galaxy stock, worth more than $4 million, translating to about 450 million yen. Arthur chuckled, "Is Fujihara Norika considered your senior too?"

He knew that Norika was a bit older than Oishi but still thought of her as relatively new. "Of course! Norika started appearing in dramas last year, and she gets tons of ad and magazine work," Oishi Megumi whispered flirtatiously in his ear. "Onii-san, you know best just how incredible Norika's figure is, right?"

Arthur's fingers slipped into Oishi Megumi's blouse, feeling her softness, and thought of Norika's 34E bust. "No doubt about it, she's definitely a knockout!"

"Right? Mmm," Oishi said, leaning in for a spontaneous kiss, their lips dancing together.

As Japan, the world's second-largest economy after the USA, also boasted the second-largest entertainment market, the significance of MGM International's Japanese branch was undeniable. Additionally, due to Galaxy Music's investment in Avex group, they could leverage Avex to release albums from American artists in Japan.

...

With Panasonic launching the first DVD player, the DVD-A300, priced at 79,800 yen -- around $725 -- it marked the official start of the home entertainment era.

At Sony headquarters in Tokyo, Arthur sat on the couch with Sony President Nobuyuki Idei, discussing the future of DVDs. "With larger storage capacity, clearer images, and lower prices, DVDs are a market revolution against videotapes," Arthur mused.

Idei chuckled, "Arthur, how long do you think it will take for DVDs to completely surpass the videotape market?"

Arthur thought for a moment, "I estimate it won't take long. Other brands like Sony, Toshiba, Hitachi, Sanyo, and Philips are springing up like mushrooms with their DVD players. As for when it overtakes the market, that depends on when companies can continue to lower DVD prices."

Idei nodded, saying, "I previously spoke with Koichi Morita about this too. We need Hollywood's promotion to help drive this initiative."

Morita was the President of Panasonic, and to be frank, the DVD format's primary developers were Panasonic and Toshiba. However, with Sony's manufacturing prowess and the backing of Columbia TriStar and Sony Music for content, they had significant influence as well.

There was no doubt that the promotion of DVDs relied heavily on Hollywood studios. Today, Idei met Arthur to discuss getting MGM to introduce the first batch of DVDs in North America as soon as possible. MGM was the hottest film studio globally, proven by the massive success of Independence Day and Twister!

Arthur tapped his fingers on his knee, "By summer next year, MGM will launch the initial batch of DVD films, led by Independence Day and Twister. I hope you can quickly reduce the production costs for DVD players. After all, Hollywood has an enormous film library, and the market viability of DVD players will motivate everyone to produce DVD films."

Currently, 90% of households in North America owned VCRs. DVD player ownership levels needed to reach a certain threshold to reassure everyone, right? However, Arthur was confident it would happen soon, given that DVDs were considerably less expensive than videotapes.

The rollout of DVD players would undoubtedly be much quicker than the VCR adoption back in the day, likely within half a year.

...

That evening, Arthur and Yasukato Sawaguchi arrived at the Four Seasons Hotel at Chinzan-so in Bunkyo, Tokyo. "The environment here is quite nice, with lots of Japanese-style gardens!" Arthur noted.

He nodded, asking, "They've arrived, right?"

"Yes, they're here," Yasukato replied with a smile.

Arthur had come to specifically discuss establishing Yahoo Japan with representatives from Yahoo and SoftBank, preparing for Yahoo's upcoming Nasdaq listing at the end of the year. Since Arthur owned 40% of Yahoo, he was very interested in Yahoo Japan.

SoftBank only held a 5% stake in Yahoo but was extremely enthusiastic about launching Yahoo Japan. Arthur also recognized that Yahoo Japan would soon become the number one search engine and portal site in Japan!

*****

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