■Company Overview
1. Company Overview
Media Seek ＜4824＞ was founded in 2000 and has built a track record in the system integration field for over 20 years. We aim to expand corporate value based on the management philosophy of “continuing to produce good things.” The company's services include the school management system “My Class,” which has celebrated its 20th anniversary and is growing in demand, and the barcode application “ICONIT,” which has recorded a cumulative total of 36 million downloads with a track record of over 10 years. These symbolize the history of the company's technology and services, and it is planned to continue developing while preserving that tradition in the future. In recent years, efforts have also been made to create venture companies, aiming to create high-quality businesses and companies in addition to excellent systems and services. Amidst a changing social environment, we are actively advancing into new technology fields, such as Braintech DTx, based on a stable financial foundation. The company group consists of 3 companies: the parent company MediaSeek (same company), Start Media Japan Co., Ltd., and MediaSeek Capital Co., Ltd.
2. HISTORY
It was established in March 2000 in Minato Ward, Tokyo, and was listed on the Tokyo Stock Exchange (hereafter, Tokyo Stock Exchange) Mothers Market nine months later in 2000/12. Embedded barcode reader software for mobile devices was developed in 2003/6. After that, Start Media Japan, which is the current subsidiary, was established in 2003/7. It obtained the “Privacy Mark” in 2005/4, and received the “BREW 2005 Developer Awards,” which is the highest evaluation in the world for embedded programs for mobile phones, in 2005/6. Shipments of “barcode readers & makers,” which can create QR codes with mobile phones, began in 2005/12. In 2007/3, the investor Diamond Dining Co., Ltd. (currently DD Group ＜3073＞) was listed on the Osaka Stock Exchange Hercules Market. In 2008/6, “My Class,” a packaged product for school businesses, was developed and sales began. In 2012/1, a new barcode reader “Iconit” was developed, and free downloads began. Media Seek Capital, which is a current subsidiary, was established in 2019, and in 2022/4, due to a review of the market division of the Tokyo Stock Exchange, it transitioned from the Tokyo Stock Exchange Mother's Market to the Growth Market.
3. Business content
The company has developed a system development business centered on two businesses, the corporate business and the consumer business, but in the 2022/7 fiscal year, it reviewed its business portfolio with the aim of maximizing growth for the future, and carried out targeted business restructuring targeting the five business areas of “corporate DX,” “image analysis/AI,” “lifestyle DX,” “brain tech DTx,” and “venture incubation.”
In the business portfolio for the second quarter of the fiscal year ending 2024/7, the sales composition ratio is 33.9% for “corporate DX”, 26.6% for “image analysis/AI,” 39.0% for “lifestyle DX,” and 0.4% for “Braintech DTx.”
(1) Corporate DX
“Corporate DX” provides support to existing customers such as education-related companies and service companies. It is the company's main business, and in line with market trends, it is expanding new areas such as “EdTech,” “corporate business solutions,” and “corporate DX support,” which are new educational styles utilizing digital technology. The company uses high technical capabilities, ability to respond to a wide range of fields, mobile terminal knowledge, etc., and provides one-stop consulting, system design/development, system operation, etc. to customers, and receives rewards for that.
(2) Image Analysis/AI
“Image Analysis/AI” combines advanced image analysis capabilities with research and development of AI technology, centering on the barcode and QR code reading application “Iconit,” and pursues a wide range of application possibilities. The application has recorded over 36 million downloads (2024/4), and has achieved stable advertising revenue through partnerships with major ad networks. It features user-friendly functions that can be used safely and securely without contact, and in addition to being deployed to the BtoB market based on an abundant user database, efforts are also being made to expand use in the medical field and expand the types of barcodes to be scanned. Regarding AI technology, we are focusing on research and development that performs trend prediction, sentiment analysis, anomaly detection, etc. from SNS text data, and we are also exploring applications to AI analysis and neurofeedback* of unreadable barcodes. Through these activities, we have accumulated research and development results for our own services, and we are considering providing AI engines to the outside world based on the results.
※ It is an activity to visualize the state of one's own brain by examining brain waves during meditation, etc., and control the relaxed state or concentrated state of the brain by oneself. It is used to improve developmental disabilities and depression.
(3) Lifestyle DX
“Lifestyle DX” targets 4 of a wide variety of lifestyle fields, and in addition to “EdTech,” they are developing “FanTech,” which creates new relationships between fans and athletes, artists, creators, etc., “HealthTech,” which uses technology to provide prevention and treatment, etc., and “FinTech,” which enhances the efficiency and accessibility of financial services by utilizing technology.
(a) EdTech
“EdTech” is a neologism that combines education (Education) and technology (Technology). Digital technology is being used to innovate systems such as methods and contents of education, bringing about changes in the education industry. It has become easier for companies to enter the education industry, and in addition to school education, various education-related businesses and ideas are being created, such as corporate training and learning to acquire hobbies and qualifications. The main platforms “My Class” and “Minecraft Remote” for school operators compete with services such as “Lesson” by Reefnet Co., Ltd. and “TechnoSMS” by TECHNOPIAN. Due to the spread of the novel coronavirus infection (hereafter, COVID-19), a free learning style through online has spread in addition to conventional face-to-face education. In response to this trend, “My Class” is proceeding with enhancements to services including an “AI recommendation” function that analyzes student activity data and makes learning proposals corresponding to each individual.
(b) FanTech
“FanTech” is a neologism that combines fan (fan) and technology (technology), and provides technology products for fans. They are developing methods such as increasing engagement by delivering the latest information on artists and athletes to fans using smartphone applications and SNS, increasing the sense of realism of events and games using VR and AR, and optimizing marketing by analyzing fan preferences and behavior. Specifically, “S-applico” and “Scenario HARU” services are provided. “S-applico” is an application for creators to provide video content to fans, and it aims to monetize it through subscriptions and advertisement revenue. The company functions as a revenue share partner ※. The mindfulness meditation application “RussellMe” was relaunched in 2023/9. “Scenario HARU” is a package that supports the production of content on the theme of interaction with talents and artists, including dating simulation games, and provides a wealth of experience and systems related to operation and production.
* It means a partner that shares (shares) revenue (revenue), shares rewards and risks with each other, and has signed an agreement to share rewards in the form of success rewards.
The new content “BOYS MEETING from Thailand,” which features 5 popular Thai actors, was launched in 2023/3. The same content provides browser games, LINE stickers, and camera applications that won 1st place on Google Play.
(c) HealthTech
“HealthTech” is a neologism that combines health (Health) and technology (Technology), and provides efficient and high-quality medical services utilizing the latest technology. There are medical services “telehealth” from remote locations, “wearable devices” that manage health conditions, “big data analysis” of medical data, and “VR/AR technology” for surgery and education. Products related to the company's “HealthTech” include “home training,” “beautiful butt salons,” etc. “Home training” provides a full-scale training program that can be done at home to relieve lack of exercise and changes in body shape, and “beautiful butt salons” support users in achieving specific fitness goals through a 9-week training program aiming for an ideal beautiful butt. These are designed so that they can be practiced at home under the guidance of a professional trainer for the purpose of maintaining health and beauty.
(d) FinTech
“FinTech” is a neologism that combines finance (Finance) and technology (Technology), and utilizes the latest technology to provide financial services with enhanced efficiency and accessibility. IT, digital technology, cryptocurrency, blockchain, big data, artificial intelligence (AI), machine learning, cloud computing, mobile technology, etc. are being utilized. The product offered by the company is “ESCOLE,” which was announced in 2023/5. It is a credit card continuous billing system with a deferred payment function, and provides a one-stop solution for centrally managing customer personal information, application information, billing and sales management, monthly continuous billing, convenience store payments, etc.
(4) Braintech DTx
“Brain tech,” which is a neologism that combines “brain (brain)” and “technology (technology),” combines neuroscience and IT, analyzes data from brain measurements and tests, analyzes brain functions and activities, and develops and applies new technology. The focus is on the development of medical devices (SaMD) as software and the development of smartphone applications, and in particular, they are working on evidence-based program development for chronic pain treatment. Additionally, we are developing a neurofeedback service developed in-house to be used in osteopathic clinics and fitness gyms. Braintech focuses on prevention and treatment of central nervous system diseases such as dementia and depression, and is promoting the application of technology to medical care and health care. The company has been actively working in the braintech area since 2016, developing applications such as “ALPHA SWITCH” and “ALPHA SWITCH PRO” for enterprises, and is developing competition with competitors in the same field. Since it was approved as a medical device manufacturer in 2022, cooperation with universities and pharmaceutical companies has been strengthened, and research is being repeated targeting central nervous system diseases such as chronic pain, epilepsy, dementia, Parkinson's disease, depression, and ALS*. Ultimately, we are aiming for regulatory approval and insurance coverage for therapeutic applications.
※ Amyotrophic lateral sclerosis. It is a disease that causes damage not to the muscles themselves but to the nerves of the motor system, and muscles such as hands and feet and muscles necessary for breathing become thin and thin.
(5) Venture incubation
We provide not only investment but also all necessary support, such as finance, human resources, and system construction, to startup companies and venture companies that have invested in it. After carrying out strict screening, investments are focused on 1 or 2 companies per year. We provide incubation services with support systems in place to work together until an IPO is realized to promising startup companies and venture companies with unique technology, and ultimately, profits are obtained from capital gains due to the realization of IPOs.
Until now, the company group has led 6 companies, Bandai Networks Co., Ltd. (currently absorbed and merged with Bandai Namco Entertainment Co., Ltd.), Trust ＜3347＞, Diamond Dining (currently DD Group), JIG-SAW ＜3914＞, Link-U Group ＜4446＞, and Delivery Consulting ＜9240＞, and delivery consulting ＜9240＞, and we have a track record of buying out 1 of them.
(Written by FISCO Visiting Analyst Hiroshi Nakayama)