Monday 1 February 1995.
Yasuhiko Hata, the young owner of TV Tokyo, had inherited the company from his father. Currently, the station heavily benefited from ZAGE's popular anime and shows, with their ratings largely dependent on that content. Although ZAGE still allowed their programs to air on TV Tokyo, they had recently launched their own subscription-based television service called YaDo TV. Operated by their anime-focused subsidiary, YaDo, this move signaled a clear shift in ZAGE's broadcasting strategy.
Now, Yasuhiko sat in the waiting room of the ZAGE offices, sighing deeply. He thought to himself, "I can't let ZAGE give up on us — if they do, we're doomed." Ever since video games surged in popularity again in 1991, the television industry had been in steady decline. Viewership numbers continued to fall year after year, which meant fewer companies were willing to advertise on TV. The recent release of Philips' DVD player had only worsened the situation, drawing more people away from traditional broadcasts. And on top of all that, the rise of subscription-based channels was quickly becoming another major blow to conventional TV networks.
Yasuhiko Hata shook his head, frustrated by the overall decline of television — a downfall he and many major broadcasters in Japan blamed on ZAGE. First, ZAGE revolutionized the entertainment landscape by popularizing video games, which significantly reduced traditional TV viewership. Then came their subscription-based channel, YaDo TV, pulling even more eyes away from broadcast networks. As if that wasn't enough, ZAGE also partnered with Philips to produce the powerful PZ-DVD player, further accelerating the shift away from scheduled programming.
Most TV executives knew the government strongly favored ZAGE, making it nearly impossible to blackmail them. On top of that, persistent rumors circulated about ZAGE having the backing of one of Japan's largest Yakuza syndicates — a group supposedly reformed into a legitimate business under ZAGE's influence. That, in turn, only strengthened the government's support for the company, leaving traditional broadcasters like TV Tokyo feeling more cornered than ever.
Before long, Yasuhiko was invited into Zaboru's meeting room. The two men sat down across from each other. Yasuhiko extended his hand, and Zaboru shook it warmly—this wasn't their first meeting.
"Zaboru-san," Yasuhiko greeted.
Zaboru smiled and returned the gesture. "Yasuhiko-san."
With a quick nod, Yasuhiko got straight to the point.
"Zaboru-san, I'll be direct — it seems like you're putting more focus on YaDo lately, isn't that right?"
Zaboru feigned confusion. "What do you mean, focus on YaDo? It's a ZAGE subsidiary — of course we're paying attention to them."
Yasuhiko sighed, visibly tense. "Zaboru-san, please don't play around. You know exactly what I mean. It's the YaDo subscription channel — it's pulling focus away from our network, TV Tokyo. Your shows aren't getting the same spotlight with us anymore, and I'm asking you to consider that. Please… you know the situation we're in."
Zaboru sighed, fully aware of Yasuhiko's situation at TV Tokyo. Yasuhiko had managed to hold firm as CEO after taking over from his father, largely because of his decision to prioritize ZAGE content. For years, any show ZAGE submitted or advertisement they wanted to run was treated as a top priority by the network. This partnership had existed even before ZAGE's anime truly exploded in popularity. However, despite this shared history, Zaboru knew he couldn't make exceptions — subscription-based TV was clearly the future, and that was the path ZAGE had committed to.
Zaboru then said, "Well, honestly, there's nothing we can do about it, Yasuhiko-san. Subscription TV is the future of our shows, and to be frank, in the near future, we might stop using TV Tokyo's services altogether."
Yasuhiko's eyes widened. "Please, Zaboru-san, don't do this... TV Tokyo is heavily dependent on ZAGE's shows. Our highest ratings come from your content. If you pull out, it will cause serious trouble for us."
Zaboru sighed and recalled his father's advice: in business, never compromise on anything, no matter how long-standing the relationship may be. He leaned back slightly, his fingers tapping the edge of the chair as the weight of the conversation settled over him. ZAGE owed no debts to TV Tokyo; if anything, the network had reaped massive benefits from airing ZAGE's content. Their ratings had soared thanks to ZAGE's consistent supply of high-performing shows and timely advertisements. In return, ZAGE had always fulfilled its end — contracts were honored, payments made promptly, and promotional efforts delivered with precision.
That past loyalty, however, didn't change the reality of the present. In the future, ZAGE would definitely outgrow the need for traditional broadcasters. Their audience had already begun shifting toward subscription platforms, where engagement could be measured more accurately, content delivery was on-demand, and creative control remained in-house. The benefits were undeniable — better revenue tracking, direct user feedback, and the ability to shape programming without interference.
With YaDo TV steadily gaining momentum, continuing to rely on outdated systems like TV Tokyo no longer made strategic sense. The gap between the old guard and the new wave was widening fast. Traditional networks were bound by rigid schedules, limited interactivity, and a declining ad base. Meanwhile, YaDo offered flexibility, data-driven programming, and a global reach that broadcast TV couldn't match.
The emotional tie to TV Tokyo lingered — years of partnership, shared successes, and mutual growth. But that sentiment couldn't override business logic forever. If ZAGE no longer truly needed TV Tokyo's services, severing that connection wasn't just possible — it was rapidly becoming the most practical and forward-thinking decision available.
However, subscription-based TV in Japan is still in its growth stage, which means maintaining a connection with conventional TV channels might still be necessary. "Alright then, Yasuhiko-san," Zaboru said, "in the future, there's a real possibility that YaDo TV will become our primary focus. But in the future we can still produce specific shows exclusively for TV Tokyo—special programs that won't be available on the YaDo subscription channel. How does that sound?"
Yasuhiko's eyes lit up with a flicker of hope, but his expression quickly turned cautious. He leaned forward and asked, "You're not going to give us low-quality shows just to tank our ratings further, are you? I mean, you won't sabotage us on purpose, right?"
Zaboru shook his head with a calm and steady tone. "Of course not, Yasuhiko-san. That would be foolish. Undermining TV Tokyo would damage ZAGE's reputation as well — it would be a lose-lose situation. You have my word, any content we deliver to your network will meet the same standard of excellence that ZAGE is known for. Just because our main focus is shifting doesn't mean our quality will suffer — we intend to keep our brand strong no matter where it airs."
Yasuhiko nodded, and the two exchanged a few more polite words before the conversation naturally wound down. After a moment, Yasuhiko stood, politely excused himself, and left the room with a respectful bow. As the door clicked shut behind him, Zaboru remained seated, his thoughts already drifting inward.
Then Zaboru smiled to himself. "I'm really not cruel enough to just dismiss them like that. Yasuhiko is a good man — he genuinely supported ZAGE Animation .And honestly, TV Tokyo was a major pillar for us in the early days. Without their platform, we might not have reached the audience we did. So maybe… maybe we owe them a little loyalty."
He leaned back in his chair, deep in thought. "Still, times are changing fast. Conventional TV might truly disappear within the next decade. Subscription-based viewing is becoming the norm, and YaDo is just the beginning. But if TV Tokyo starts to fall apart — if they really struggle in this new media landscape — maybe there's a future where we step in. Maybe I could acquire it, reshape it into something that works with our vision. Who knows... the future is wide open. Let's just wait and see."
With that Zaboru continue to work again.
To be continue
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