WW-178 -- Targeting the PC-less with the AU BOX

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Issue No. 178 Thursday October 02, 2008
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Targeting the PC-less with the AU BOX.

KDDI will introduce a set top box targeting its PC-less
subscriber base. The box is a media station with a built in
CD/DVD-player, an internet browser, and software to use the
KDDI LISMO music and video download services. It can be plugged
into a broadband router for internet access. Both the television
and mobile phone can be connected to the set top box. The service
starts on November 1 and will be branded as AU BOX.

Are there so many Japanese without a PC? According to research
from KDDI, only 43.5% of the Japanese have their own PC at home,
while 82% has an own television. Of high school students, 80%
does not have a PC. KDDI targets the 10-30 year old user segment
with the AU BOX which has a rental fee of only 315 yen (3 dollar)
per month. A penalty fee of 5,250 yen will be charged when the
service is canceled within 13 months.

The set top box is manufactured by Motorola. It has a 1GB flash
memory of which 200MB can be used to store contents - enough for
200 full length songs. Internet can be accessed through an Opera
browser. KDDI has limited the internet browsing functionality.
The AU BOX does not allow to install software. Only the
pre-installed LISMO music and video player can be used which
do not work for viewing popular video services like YouTube
and Niko-Niko.

LISMO allows KDDI subscribers to purchase and download music
and video content through their personal computer or handset
from the LISMO store. Since the start of LISMO in 2006, more
than 200 million full-length songs were downloaded. Less than
1% of the songs were directly downloaded onto the PC. KDDI hopes
to further grow LISMO usage with the AU BOX. Up to now, KDDI
provided 'LISMO Port' software for the PC to access the store,
playback the videos and music, and upload content to the phone.
With the introduction of the AU BOX, a PC is not required anymore.

The AU BOX fits in KDDI's strategy to link its mobile and
fixed-line services. We expect the coming month more
announcements. Together with Motorola, KDDI could offer a
service to allow the mobile phone to be used as a VOIP-phone
connecting through the broadband network at home. The set top
box becomes then a base station which links to the phone over
Bluetooth or Wifi technology. Stay tuned to read more about
KDDI's plans.

By Arjen Van Blokland

------------------------- JMEC ----------------------------
The Japan Market Expansion Competition (JMEC) will conduct
information sessions for attendees to learn about the
fifteenth year of this experiential business training program.

Sessions are free but registration is required.
Sep 18th, Oct 1, October 14, 7:30pm-9:00pm,
Temple University Japan Campus.
www.jmec.gr.jp to register.
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The Silver Market Phenomenon: Business Opportunities
and Responsibilities in the Ageing Society

International Symposium on October 3 and 4

If you have been wondering how demographic change is going
to affect your business in Japan, find out more in this
international symposium by the German Institute for Japanese
Studies, United Nations University and Tokyo Institute of
Technology in Tokyo.
This is a unique opportunity to discuss Japan's silver market
phenomenon with renowned experts from around the globe and to
meet the inventor of 'Paro,' a robot for therapeutic treatment,
as well as the inventor of the Robot Suit HAL, Dr. Kawashima
from the worldwide success 'Dr. Kawashima's Brain Training'
and many more.

Space is limited, so register quickly.

For more details:
www.dijtokyo.org
www.dijtokyo.org/doc/DIJ-Silvermarket0810_faxform.pdf
Or contact us by phone or e-mail:
03-3222-5077
silver@dijtokyo.org

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Entrepreneur Association of Tokyo-Seminar
- Tuesday, October 7th

Speaker: Einosuke Sumitani, CEO of Kids City Japan K.K.

Mr. Sumitani is the driving force behind the wildly
popular indoor amusement park, KidZania Tokyo.

He initially worked with Fujita Kanko K.K. and went on to
become a founding director at WDI Inc., which introduced
several U.S. restaurant chains to Japan, including Kentucky
Fried Chicken, Hard Rock Cafe and Spago.
It now operates more than 10 restaurant chains in the U.S.
and Japan.

Please sign up early while seats are available.

Date/Time: Tuesday, October 7th 7:00 pm
Location: Foreign Correspondents' Club of Japan
Language: English
Website: http://www.ea-tokyo.com

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