We do have some Korean and Chinese content. We are interested in expanding as well. We are preparing to announce the Russian drama series in Japan this year. It will take a while because we have to localise it and it’s pretty heavy. We have to add subtitles although we would like to prepare to dub at some point.
Korean dramas are common here on all platforms. We are not really keen as we are interested in acquiring content from all over the world, especially the hit series from each territory. We are interested in acquiring everything but we are very selective of course.
Amazon Prime is our biggest threat to our business model; it costs USD$35 for an annual subscription. It also has free shipping and early delivery. Our subscription is on the monthly basis. They have a very good line-up too.
We have some overlap but we are keen on acquiring selected number of premiere Japanese content from the studios and other independent production companies. We also have exclusive deals with HBO and FOX sports. More than 80% of our budget is allocated to buying content both English and Japanese. The rest of the 20% goes to production.
We have to realise the one-stop shopping for consumers, so it means pure export service may not be enough to satisfy all the need. We already introduced the live streaming function and we only covered PC so we’re thinking of expanding to TV and mobile. In terms of revenue, we are trying to break even in 2017. If we try to be profitable right away, it means spending less on the marketing and content. We have prioritised on the growth because the market is really crowded and competitive. The market is very crowded, but more importantly, the awareness of the name of Hulu is over 70%. But still, I’d say less than 10% know what it really is, what can be watched and how. So the real challenge is to educate consumers about the service. That will take a while.