J:COM adds 85k digital TV subscribers in 3Q09

Jupiter Telecommunications (JASDAQ: 4817) has announced results for the third quarter of the fiscal year ending December 31, 2009.

J:COM’s total number of subscribing households (the number of households that subscribe to one or more services) of consolidated managed system operators as of September 30, 2009 rose to 3,247,300 households, an increase of 344,000 households (12%) from September 30, 2008.

By type of service, cable television subscribers grew by 241,100 households (10%) from September 30, 2008 to 2,587,900 households as of September 30, 2009. Of this total, the number of J:COM TV Digital subscribers rose by 495,900 households (28%) to 2,263,500 households as of September 30, 2009, accounting for 87% of all cable television subscribers.

Consolidated Quarterly Operational Data

                              Mar 31     Jun 30     Sep 30     Dec 31
                                2008       2008       2008       2008
                           ---------  ---------  ---------  ---------
CATV                       2,224,300  2,245,500  2,346,800  2,557,000
of which digital service   1,563,500  1,640,300  1,767,600  1,997,000

                              Mar 31     Jun 30     Sep 30
                                2009       2009       2009
                           ---------  ---------  ---------
CATV                       2,554,700  2,574,600  2,587,900
of which digital service   2,085,300  2,178,400  2,263,500

Total STB with Internal Hard Disk Drive (HDR) Distribution:

Mar '08  Sep '08  Mar '09  Sep '09
-------  -------  -------  -------
353,800  284,500  424,500  468,000

Recognizing the complete changeover to terrestrial digital broadcasting in July 2011 as a significant business opportunity, the J:COM Group continued to implement appropriate measures. In specific terms, the J:COM Group seeks to capture new customers by providing retransmission service of terrestrial broadcasts using J:COM Group network to the estimated 1,000,000 unconnected communal reception households* within its service area. To this end, the Company succeeded in negotiating contracts with selected firms for cession of their communal reception facilities.

J:COM strengthened and expanded its high-definition (HD) channels provided through the J:COM TV Digital service while reinforcing and augmenting its Video-on-Demand (VOD) and other service capabilities. Complementing the addition in April 2009 of one optional channel to its existing lineup of HD channels, the J:COM Group introduced four additional HD channels (two of which are optional) in July 2009 and four more HD channels in October 2009, respectively, encompassing movie, drama and other genres. As a result, the number of new offerings in the J:COM Group’s lineup of HD channels since the beginning of the year totaled nine as of the date of this report. Taking into consideration these nine channels, the J:COM Group plans to boost its lineup by an aggregate of 10 channels during 2009. This will bring the ratio of HD channels to total J:COM TV Digital service channels including terrestrial and BS broadcasting to approximately 40%.

In its VOD services, J:COM endeavored to increase usage by enhancing lineup attractiveness and subscriber usability. As one example, the Company included within its J:COM on Demand service the latest dramas broadcasted by FOX channel as well as variety and animation programs by Fuji Television Network, Inc. In this manner, J:COM is providing a platform for viewers to catch up on programs that they were unable to watch at initial broadcast.

* Communal reception households are defined as households that receive television broadcasts through communal reception facilities, which were set up to solve poor reception in shadow areas created by buildings, transmission lines and related structures.

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