Business Day

Sega to Begin Cable Ventures

Published: June 08, 1994

Sega Enterprises Ltd., a leading Japanese game maker, said today that it would soon begin joint ventures to distribute game software through cable television in both Japan and the United States.

Subscribers to some cable networks in Japan will be able to receive Sega game software through their cable system and play the games on their television sets for 3,000 yen ($28) a month, Hiroyuki Mori, a Sega spokesman, said.

Sega Digital Communications, the company that will distribute the new service, will be set up on July 1, the spokesman said.

The venture will provide about 30 different game software titles each month. It will be the first such game-software distribution company in Japan, Mr. Mori said.

He said Sega would start a similar distribution business soon in 12 or more United States states and territories through a joint venture with Time Warner and Tele-Communications Inc.

More than 70 percent of households in the United States subscribe to cable television, but in Japan only 132,000 households get cable, which is mostly limited to locally operated channels.