Nippon Television Holdings, Inc.

Business Details

Centered on Nippon Television Network Corporation, this segment maintains diverse revenue sources including sales of terrestrial TV advertising slots, video streaming (TVer/Hulu), pay broadcasting (BS/CS), video and music royalties, package media sales, film and event promotion, theme park operations, contract content production, IT services, and character merchandise sales. The revenue base has expanded through the consolidation of Studio Ghibli Inc., la belle vie Co., Ltd., and Rights Inc. as subsidiaries. This is the flagship segment, accounting for approximately 93% of the Group's total external customer sales. Note that from this fiscal year, the segment name has been changed from the former "Media & Content Business" to "Content & Media Business" (no substantive change).

Recent Overview

Spot advertising, digital advertising, and contract production drove a significant increase in operating profit, up 28.6% year on year

In the Content & Media Business for FY2026 (ending March 2026), strong spot revenue (up 9.2%) and digital advertising revenue (up 13.0%), expanded content production revenue from Murayama Co., Ltd. and others (up 19.6%), and increased event promotion revenue (up 14.7%) contributed in combination, resulting in external customer sales of ¥452,656 million (up 5.0%) and operating profit of ¥67,114 million (up 28.6%). Profit improvement was also supported by the absence of the large-scale impairment loss (¥4,903 million) recorded in the prior period at Hulu-Japan (HJ Holdings Co., Ltd.). The company maintained the core ratings triple crown for the 14th consecutive year, solidifying the foundation of its advertising competitiveness. As a subsequent event, on April 24, 2026, the company made KANAMEL Co., Ltd. (the domestic leader in advertising video production) a wholly owned subsidiary at an acquisition cost of ¥49,754 million, and a substantial strengthening of content production capabilities is expected from the next fiscal year.

Key Products

Growth Drivers

• Expansion of spot advertising revenue: increased to ¥127,637 million (up 9.2% year on year) due to higher regional ad volume and a high share gained among Tokyo key stations
• Continued growth in digital advertising revenue: ¥11,890 million (up 13.0% year on year) driven by strong TVer video advertising sales, with the overall TV media-related video advertising market also growing 23.3%
• Expansion of contract content production: ¥34,747 million (up 19.6% year on year) due to steady orders for various facility projects at Murayama Co., Ltd. and increased contract drama production
• Strong performance in events and theme park business: box office revenue up 14.7%, driven by the stage production "My Neighbor Totoro," "Joe Hisaishi Concert 2025," and "Ghibli's Three-Dimensional Sculpture Exhibition"
• Continued core ratings triple crown: achieving the triple crown for the 14th consecutive year contributed to maintaining a high share of spot advertising
• Making KANAMEL Co., Ltd. a wholly owned subsidiary (subsequent event): acquisition of the domestic leader in advertising video production, with a Cannes award-winning track record, at an acquisition cost of ¥49,754 million, expected to accelerate IP creation and global content expansion from the next fiscal year

Risks

• Gradual decline in terrestrial TV advertising time revenue: time revenue decreased to ¥104,109 million, down 0.9% year on year, with sluggish regular program sales and the continuing reversal effect from major sporting events
• Accelerating shift to internet advertising: internet advertising expenditure (¥4,045.9 billion) expanded to approximately 2.5 times TV advertising expenditure (¥1,633.3 billion), with advertisers' budget allocation continuing to shift
• Intensifying competition with global video streaming platforms: the entry of well-funded foreign companies into Japan and the consolidation of domestic streaming businesses are increasing content acquisition costs and subscriber acquisition costs
• Goodwill and integration risk associated with making KANAMEL Co., Ltd. a subsidiary: the amount of goodwill and amortization period relative to the acquisition cost of ¥49,754 million are yet to be finalized, and whether integration effects can be realized will affect future performance
• Rising broadcasting rights fees: broadcasting rights fees are increasing, particularly for major sporting events such as the Olympics, which is a factor pressuring profitability
• Increasing costs for AI and new technology adoption: AI implementation and technology investment in content production and planning are required, increasing the cost burden
• Deteriorating competitive environment for Hulu (HJ Holdings Co., Ltd.): the challenging competitive environment surrounding the internet video streaming business continues, and the risk of additional impairment remains