KDDI and TV Asahi announced on December 1 that it will establish a joint venture "LDEX" for the purpose of developing a new video distribution service.
KDDI established LDEX Establishment Preparation Co., Ltd. on December 11. As of March 2, 2020, LDEX will inherit the business related to the planning and operation of “Video Pass” [flat-rate and paid video distribution service] among the video distribution business operated by KDDI through absorption-type split. . In addition, the two companies will jointly run LDEX on March 2, 2020 [planned] by transferring half of LDEX shares from KDDI to TV Asahi [50%: 50% shareholding ratio].
TV Asahi will make a full-fledged entry into the fixed-rate video distribution service business that it has not worked on until now.
Both companies see the changes in the business environment for video distribution due to the spread of 5G in the future as an opportunity. Through LDEX, the two companies will focus on advanced technologies such as KDDI 5G, video rendering technology, customer base, and TV Asahi terrestrial programs. The assets of both companies, such as distinctive video content and appealing power such as terrestrial broadcasting, are merged. It will provide a new video viewing experience with unprecedented service loyalty.
Furthermore, the company says it will work to expand the market for new content using communications, digital advertising, and advanced technologies.