Info
DoCoMo to buy stake in Tower Japan
Japan's largest mobile operator will become top shareholder in music retail chain; venture to roll out in-store promotions, services.
NTT DoCoMo has agreed to buy a top stake in Tower Records Japan, with the companies planning to roll out a series of in-store promotions and services for customers of that nation's largest wireless provider, the companies said today.
DoCoMo said it will invest $108 million (12.8 billion yen)--good for a 42 percent stake in Tower Records Japan, the privately held music retail chain that is independent from its US-based counterpart, which emerged from Chapter 11 bankruptcy in March 2004.
"We thought this would be the best way to provide users with a convenient and fun service while contributing to revenues," said Takeshi Natsuno, senior vice president and managing director of DoCoMo's multimedia services department, in a statement.
The companies said they expect the deal to close by late November.
At that time, they plan to launch a series of initiatives aimed at promoting mobile music services within Tower's stores and to give customers the ability to buy music in stores using DoCoMo's "wallet" phones embedded with smart cards.
The companies are also considering a partnership to offer a music download service. In mid-October, Tower Records Japan entered into a joint venture with subscription download service Napster. The service is expected to roll out in early 2006.
Tower Records Japan has more than 100 outlets in Japan, launching in 1979 and separating from its US parent in 2002.
Just added
