V model 01 alue CyberAgent’s Value Creation Model creation CyberAgent's Value Creation Model CyberAgent's Value Creation Model Focusing on the internet, a high-growth industry, CyberAgent pursues sustainable growth by taking advantage of its adaptability to change. Superior Technology Research Institutions Academia-Industry Cooperation Sustainable business expansion Market Superior Talent competitiveness Active Participation Development Hiring Contribution to Superior Creation New businesses local communities Business management Creation system 10 CyberAgent's Value Creation Model Superior Technology Technology is the cornerstone of internet companies' competitiveness. The wide range of CyberAgent services ― which include video distribution through AbemaTV, music distribution through AWA, over 50 smartphone games, and advertising products and creative work that meet advertisers’ expectations ― are created and supported by some 2,000 engineers and creators who have a sense of ownership and passion for advanced technical skills and creativity. Our development structure is characterized by a free and open-minded culture in which each development team is given broad discretionary power, and by combining this with the synergistic effect of our various shared resources and built-up knowledge, CyberAgent is dedicated to continuing to improve the utilization of data and AI technology, and boosting our technical advantages in priority areas. 11 CyberAgent's Value Creation Model Superior Technology Superior Talent Superior Creation Director Creating Completely New Value and Technical Development Division Business Opportunities through Technology Norishige Nagase Delivering Absolutely Uninterrupted, moment, and the server shut down being High-Quality Video Content unable to withstand the overwhelming traffic. The vision of AbemaTV is to "create unique internet-based mass media." Since that time, a variety of improvements Since the launch of AbemaTV, we have have been made to deliver stably, a core worked to improve the video, delivery, and element of AbemaTV's technology, and playback technology to deliver we have evolved it into today's uninterrupted high-quality video that, like highly-robust system that does not go conventional TV, is able to deliver a down even during high viewer access seamless viewing experience regardless concentrations. This is a huge advantage of the number of simultaneous viewers. on which we intend to continue focusing Essentially, internet-delivered content was investment in the years to come. premised on a "best effort" approach since people generally assumed it AbemaTV's Development Policy is wouldn’ t play smoothly. Against this Consistently "simple" backdrop, it was a huge challenge to provide a crisp image and comfortable For AbemaTV, we place the highest viewing experience to many people priority on a simple UI/UX design that is simultaneously with the state of easy for users to understand. While many technology at the time. features tend to pile up as the result of running an internet service for this many In May 2017, during a show broadcast on years, we have always pursued simplicity AbemaTV called "Win 10 Million Yen, If at AbemaTV by making the tough You Can Beat Koki Kameda," which pit decisions to let go of some things as new entrants against the former pro boxer, the ones are added. server went down right at the beginning of the match. Traffic reached around 20% of When AbemaTV first launched, we had all Japan's internet communications at the assumed that linear viewing would play 12 the central role, but more recently we includes an increasing number of those have found that linear news and sports who are "technology users" with business broadcasts can coexist with on-demand As our President Fujita often says, to sensibilities and unique ideas. These programming such as dating reality shows succeed in a new business, there are only human resources are playing active roles and anime. For the major overhaul of the two choices: either be the fastest to in the company. UI/UX we are currently working on, we are market, or deliver the best quality. keenly focused on how to display content When AbemaTV was first launched, the Although compensation tends to grab the that contains both linear and on-demand core of its technology strategy was that it attention of potential engineers when programming, in a manner that is simple could not be imitated by other companies. hiring, it is also essential to provide overall and easy for users to understand. With using existing solutions out there, satisfaction such as a rewarding work, AbemaTV could not be completed. professional growth, and colleagues that As for the subscription service, its However, it took us just four months, by one can improve together with. success depends on improving user ourselves, to create a system that kept CyberAgent is the opposite of the ‘one satisfaction so it is used regularly. To competition from entering the market for company, one product’ model. We offer achieve this, we need to continue making years. opportunities for growth through the improvements in three key areas: regular development of numerous projects ensuring a seamless and comfortable This was made possible not only due in the fields of media, advertisements, and viewing experience for linear and to our engineers' advanced technical games while using a broad spectrum of on-demand programming; providing skills, but also due to the passion and technologies. By communicating highly-accurate recommendations that sense of ownership each had during CyberAgent's appeal to students, each utilize user behavior data; and offering development―treating the product almost year we are improving our recruitment content that users want to watch. By as if it were their own child. We consider abilities, which are the basis of our drawing on our strengths that span all these technical strengths and passion the technological advantage. Ultimately, since stages from content planning to most important factors in developing our our engineering teams and human distribution, we are confident that the own technology, as well as a key source resources are the company's competitive number of paid members will increase as of our competitiveness. edge, we are dedicated to focusing on the natural result of ensuring that users building teams by leveraging our enjoy AbemaTV even more. advantage of scale and boosting satisfaction for each and every engineer. At the same time, we are also reviewing the technology for delivering advertisements. We are developing ads As AI technology becomes increasingly that can achieve targeted delivery in real universal, it will be important to know how time during linear program broadcasts, to use new technologies to boost the and if realized, we will be able to create value of services and solve business advertising value that is unique to issues. In addition to engineers who "have AbemaTV with delivery that is highly amazing technical skills" or "create new efficient and accurate. technologies," our engineering team also For AbemaTV, we place the highest priority on a simple UI/UX design that is easy for users to understand. While many features tend to pile up as the result of running an internet service for this many years, we have always pursued simplicity at AbemaTV by making the tough decisions to let go of some things as new ones are added. When AbemaTV first launched, we had assumed that linear viewing would play CyberAgent's Value Creation Model Superior Technology Superior Talent Superior Creation the central role, but more recently we "Fastest or Best" includes an increasing number of those have found that linear news and sports who are "technology users" with business broadcasts can coexist with on-demand As our President Fujita often says, to sensibilities and unique ideas. These programming such as dating reality shows succeed in a new business, there are only human resources are playing active roles and anime. For the major overhaul of the two choices: either be the fastest to in the company. UI/UX we are currently working on, we are market, or deliver the best quality. keenly focused on how to display content When AbemaTV was first launched, the Although compensation tends to grab the that contains both linear and on-demand core of its technology strategy was that it attention of potential engineers when programming, in a manner that is simple could not be imitated by other companies. hiring, it is also essential to provide overall and easy for users to understand. With using existing solutions out there, satisfaction such as a rewarding work, AbemaTV could not be completed. professional growth, and colleagues that As for the subscription service, its However, it took us just four months, by one can improve together with. success depends on improving user ourselves, to create a system that kept CyberAgent is the opposite of the ‘one satisfaction so it is used regularly. To competition from entering the market for company, one product’ model. We offer achieve this, we need to continue making years. opportunities for growth through the improvements in three key areas: regular development of numerous projects ensuring a seamless and comfortable This was made possible not only due in the fields of media, advertisements, and viewing experience for linear and to our engineers' advanced technical games while using a broad spectrum of on-demand programming; providing skills, but also due to the passion and technologies. By communicating highly-accurate