In our Character Development business, we focus on strengthening the appeal of existing characters all over the world while also developing our own original digital characters. We see rapid progress in the digitalization of various platforms in the entertainment industry, such as DVDs and highly promising interactive televisions. Given these trends, we expect digital content-based characters to have significant growth potential.
Presently the main sources of income in this business are the sales of merchandize featuring digital characters, for example stuffed toys, and copyright and patent royalties received through the licensing of registered trademarks and patent rights. To drive further growth in this business, we plan to develop content for games, TV animation and comics featuring our original characters.