GDH Implements an Open-Pricing Model in the Online Distribution of New Titles

Mar 31st 2008
Pioneering a new means of revenue generation in the content business
2008.03.31
GDH K.K. (Head Office: Shinjuku-ku, Tokyo, CEO: Shinichiro Ishikawa, Securities Code: TSE Mothers 3755, hereinafter GDH) has announced that it will use an open-pricing model as one of the options in the online distribution of The Tower of Druaga: The Aegis of Uruk- and BLASSREITER, two new animated series produced by its main production subsidiary GONZO K.K. (Head Office: Nerima-ku, Tokyo, Managing Director: Junji Fujita, hereinafter GONZO).

The two new titles will be available online for viewers overseas on the same day of their Japanese TV broadcast. With the launch of this new service in April, GDH will test an open-pricing system with one of the distribution websites, Crunchyroll.com. This system allows users to determine the price they pay in exchange for downloading the high quality animated episodes. This model is designed to services the more market-oriented direction developing in online distribution. And by allowing the users to determine the value of the product and make their voices be heard, GDH derives valuable feedback directly from consumers. Popular titles could generate high offers, with revenues going back to the content providers to offset the costs of distribution and development of future projects.

Crunchyroll aims to offer to its community a legal alternative to illegal file-sharing and downloading, and at the same time establish online distribution business models such as ad-supported streaming and open pricing for download, in which content providers are able to generate revenue from the market. As the first content holder to embrace a "pay-what-you-want" model, GDH will study its feasibility to advocate it as a key to further cultivate the Japanese content business backed up by anime fans all over the world.

GDH has been actively pioneering new business schemes in the animation industry. By this new experiment of open pricing, it will pursue new business possibilities for content holders, as well as further promoting GONZO titles on a global level.

[About Crunchyroll]
Crunchyroll is the largest online community and destination focused on Asian anime, drama, manga, music, gaming, and car content. Crunchyroll's distribution channel and partnership program helps content providers monetize and deliver content to over 3.9 million passionate fans worldwide. Founded in September 2006, the company is headquartered in San Francisco, CA and backed by Venrock. Check it out at http://www.Crunchyroll.com.

[About GDH K.K.]
GDH is a globally-focused Japanese media company founded in February 2000. The group produces cutting edge entertainment for teens and young adults through its GONZO animation brand. Kids and family product is distributed through the GONZO FILMS and GONZINO brands. GDH is a world leader in content development targeting both domestic and international audiences with Japan's trend-setting animation culture and, usually, GDH controls licensing management and international distribution for the content it produces.
For additional information, visit www.G.D.H.co.jp/english (for GDH) and www.gonzo.co.jp (for GONZO - Japanese only).
GDH group companies include GONZO Rosso K.K., GONZO K.K., Future Vision Music K.K., GONZINO K.K., GDH Capital K.K. and GK Entertainment K.K.
## Company names and service names in this document are trademarks or registered trademarks of their respective owners. ##
*Please note, this release is a direct translation from Japanese language release.
It may be replaced with a slightly re-edited version within next 5 working days.

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