GEO HOLDINGS CORPORATION

Media Business

Media

We GEO Group have been running Media Business since day one. And today, approx 1,200 media-store outlets network nationwide, based on direct-managed stores are the mainstay of our business. These outlets will function as channel to develop our new business (e.g. Mobile Business), along with further challenge to expand the sales share in the Video Rental and Video Game market.

An expansion of nationwide GEO Shop network based on direct-managed outlets

The GEO Group has been actively expanding its nationwide retail network by creating GEO Shops in all prefectures throughout Japan, from Hokkaido to Okinawa. Our mission is to provide people with easily accessible and affordable home-entertainment media close to where they live and work.

Although the GEO Shop network has already exceeded 1,200 outlets, we believe that there is still plenty of room to open new GEO Shops nationwide. We aim to offer the same kind of inexpensive home-entertainment media to many more customers in the near future.

Developing our retail outlet network based on direct-managed stores allows efficient centralized management by controlling prices and inventory. The directly managed outlet system also enables an efficient scrap & build policy that allows us to flexibly shift GEO Shop assets wherever necessary, resulting in concentrations of highly profitable outlets in the best locations.

メディア

Multiple-Package & Multiple-Supply

GEO Shops are one-stop shops that offer a diverse lineup of in-home amusement software, including DVDs, CDs, game titles, and books through three different service formats: rental, resale of previously owned items, and sell-through.

By handling highly profitable DVD rentals and sales of used software games as well as launching timely sales of new products, we achieve a well-balanced revenue structure. From the customer’s point of view, GEO Shops offer all the services they want under one roof. GEO Shop customers are men and women of all ages, from elementary school students to senior citizens.

Although these days customers can easily obtain almost anything by shopping online, people still want to go to stores for certain items, and they want to see a wide selection of goods lined up on a shelf for them to choose from. Thus, GEO Shops are committed to continuing to attract customers as one-stop shops offering a variety of packaged media in different formats. This physical “bricks and mortar” aspect of our business is actually one of its greatest strengths.

Development of GEO Shops Franchise Chains and GEO Agents

With direct-management of retail outlets forming the basis of our business, the GEO Group is also pursuing the development of franchise chains and agencies.

Agents

Agents are adding a packaged part of GEO Shop’s business to their own outlets such as bookstores, which they or their staff operates directly, and sharing the benefits from these sales based on rates previously agreed between themselves and GEO. This structure allows both the agents and GEO to benefit from reduced operating costs, lower inventory risks, and other efficiencies of scale.

Franchise chains

“GEO Online” is GEO Holding Corporation’s portal site, filled with entertainment media information, not only about GEO Shops, but also discussing movie, music, video game, etc. The portal also distributes our mail magazine, providing GEO Net members with online rental coupons good at GEO Shops, news about sales campaigns, up-to-date information on the newest video and music releases, and so on. GEO also appraises and purchases video games, DVDs, CDs etc. directly from customers at their homes. In addition, GEO provides an online rental delivery service that uses the same log-in ID as the customer’s GEO Shop membership ID.