Entertainment as Infrastructure
– Second Year Progress Report
The world has been fighting the COVID-19 pandemic for more than one year and the number of infections is continuing to climb. Our lives have been severely impacted by this crisis. As a result, Koshidaka must operate in a business climate with challenges of an unprecedented magnitude.
In September 2019, we announced our medium-term vision “entertainment as infrastructure” and began working on three key initiatives linked to this vision. First is building a network of Karaoke Manekineko stores that covers every area of Japan. Second is making entertainment a vital part of everyone’s life. Third is recruiting and training the people required for these first two initiatives. We have been making consistent progress regarding all three goals and the benefits of this progress are beginning to appear. In this message, I will discuss the actions we are taking and our accomplishments.
Our activities to build a nationwide Karaoke Manekineko network raised the number of karaoke rooms to 11,900 as of the end of August 2020. The goal of the medium-term vision is 30,000 rooms. During the first half of the current fiscal year, which ends in August 2021, we opened 17 karaoke stores in Japan and acquired 43 karaoke stores from Daisyo Corporation on March 10. Based on this progress, I expect to reach our goal for the end of this fiscal year of 13,400 rooms.
Making entertainment a vital part of everyone’s life is centered on activities to achieve the goal of raising monthly sales per karaoke room to at least 300,000 yen. To accomplish this goal, we are increasing the appeal of our karaoke business and adding new forms of entertainment. These measures give customers reasons to visit our stores more often. In the first half of this fiscal year, we started our own live entertainment viewing network encompassing all our karaoke stores. We also started offering at all locations the Mira Pon! service that allows customers to watch content stored in their smartphones on large karaoke screens. Another significant event was our March 22 announcement of the launch of KARASTA×ONEREC, a karaoke video recording service we developed with mixi, Inc.
To continue expanding our karaoke store network while adding more innovative and appealing services, we must hire more people and give them the training needed to contribute to our growth. This is why human resources will remain one of our highest priorities.
As I have explained, the Koshidaka Group has established clear goals and is making steady progress in many ways. I am confident that our ongoing initiatives will allow us to even better meet the expectations of our customers, shareholders and all other stakeholders.