U-NEXT President Yasuhide Uno’s Turning Point: From 100 Million Yen Losses to a Remarkable Comeback

Flesh and Blood Interview
From Expulsion to IPO in Just Four Years—How He Built a Video Streaming Service with Over 4.5 Million Subscribers

“Management must not run away.”

In the rapidly growing video streaming market, U-NEXT holds the second-largest share domestically, just behind the global giant Netflix.

For a monthly fee of 2,189 yen (tax included), U-NEXT offers not only movies, dramas, sports, music, and stage performances, but also magazines and manga. The business is thriving, and the number of subscribers is approaching 5 million, nearly doubling over the past three years.

“In fact, we started our video streaming service even before Netflix. The competition is intense, but we will continue to create unique value that only we can provide,” reveals Yasuhide Uno (61), CEO and President of U-NEXT HOLDINGS, with a wry smile.

At just 25, Uno co-founded the staffing agency Intelligence (now Persol Career), and at 34, he succeeded his father as president of Osaka Cable Broadcasting (formerly USEN). He led both companies to successful public listings, expanding his business ventures one after another. Uno became a well-known figure in the early 2000s, as one of the leading entrepreneurs during Japan’s venture boom.

As a successful CEO, Uno became known as a “big brother” figure to prominent figures like Takafumi Horie (52) and Susumu Fujita (51), members of the so-called “Hills Tribe” of entrepreneurs. But in 2008, the Lehman Shock struck.

“At that time, venture companies were growing their market capitalization to secure funding for rapid business expansion. We, too, were exploring new fields, but the Lehman Shock worsened our performance, resulting in losses of over 50 billion yen for two consecutive years. We were forced to sell off our prized businesses one after another, and I had to step down as president of the former USEN in what felt like an ousting.”

In 2010, Uno suddenly disappeared from the spotlight. Reflecting on that time, he recalls how the decline in stock value caused a shift in the attitudes of financial institutions.

“They demanded that we repay the loans urgently. I had to let go of companies we had acquired for future growth, as well as businesses we had nurtured, including Intelligence, the first company we took public. It was as if I was forcibly made to descend the mountain after reaching the seventh station.”

Once celebrated as a star entrepreneur, Uno was suddenly labeled a “failed CEO.”

“The media published harsh articles daily, and my family had to see them too. It was frustrating and humiliating. At one point, I even thought I might as well hang myself… But in the end, my desire to prove that the business I believed in was right, to contribute to society, and to show that my efforts were not in vain won out.”

Among the businesses financial institutions instructed him to sell was the video streaming service that later became the foundation of U-NEXT.

“I’ve always loved movies. During my student days, I rented videos almost daily, but I often forgot to return them and incurred late fees. I thought it would be great to have a service where you didn’t need to return the videos. I’ve always wanted to promote that kind of service.”

In fact, during his time at the former USEN in 2001, Uno launched a high-speed commercial internet service using fiber optics, ahead of its time. As a bonus service for subscribers, he offered the ability to watch movies and dramas online.

Shutting down the business was never going to happen

Uno first launched the free video streaming service “GyaO,” but was forced to let it go following the Lehman Shock.

“Around the same time, we had also quietly started a subscription-based paid service called ‘GyaO NEXT,’ which is now U-NEXT. Financial institutions pressured us to sell this business as well, and although we began the sale process, no buyers emerged. The only option left was to shut down the service, but I thought that would be too much of a waste.”

Determined not to let the business die, Uno made the decision to personally invest his own money and buy it out.

The financial institution representatives bluntly dismissed the idea, saying, 

“There’s no way that will ever be a hit.” 

At the time, U-NEXT was losing one billion yen per month. Friends and colleagues advised Uno to step down from management.

“Some people told me, ‘You’ve worked hard enough and suffered enough. There’s no need to put yourself through more hardship.’ But about 300 staff members had left the old USEN to follow me. I felt it was my responsibility, and I switched gears entirely, deciding I had no choice but to continue.”

At 47, Uno was once again launching a venture from scratch. The challenges were overwhelming: securing video content, overcoming technical issues, ensuring smooth streaming, and preventing illegal copying.

Perhaps because of these hurdles, there were no significant competitors in Japan at the time. Still, Uno was convinced that the business would succeed.

“I had no doubts. I believed that the era of watching videos via streaming services would definitely come. I just didn’t know when. The question was whether we could survive long enough to see it.”

Subscriber numbers steadily grew, and within just three years of becoming an independent company, U-NEXT became profitable. Four years later, in 2014, the company went public, marking Uno’s third successful IPO. U-NEXT’s growth accelerated from there.

“I believe there were two key factors that sparked our growth. One was the explosive adoption of smartphones, which made it easier for people to watch videos. The second was the COVID-19 pandemic. With more free time, even people who hadn’t been familiar with streaming services began to try it out. It was a turning point for streaming services to become more widely accepted nationwide.”

Of course, the quality of U-NEXT’s service played a major role in its success. One key strategy was what Uno calls the “department store strategy”—offering a vast selection of content.

“One thing users often tell us is, ‘I couldn’t find this title anywhere else, but U-NEXT had it.’ That’s why we have no plans to change this model. Our goal is to offer everything that can be digitized, not just films and TV shows but also books and other content.”

Competition with overseas giants like Netflix and Amazon Prime Video has intensified, with many rivals focusing on producing original content. However, Uno has a different approach.

“When you look at the production of visual works, an incredible number of films are being made. Many movies, even those made with great effort and resources, only have a short run in theaters. I think it’s more important to provide a platform where these overlooked works can still be seen.”

The words that pierced my heart

In the midst of an era that could be called one of overproduction in the entertainment industry, how does Uno view the future of entertainment?

“I feel the trend of eliminating half-hearted works will accelerate. There will likely be a growing divide between high-quality, painstakingly crafted pieces of art and casual, short-form works like short dramas that can be produced quickly.”

Fifteen years ago, Uno lost everything except for the deficit-ridden business that financial institutions had turned their backs on. Like a phoenix, he made a remarkable comeback. What was the key to his revival?

“I think it was because I took on things that society needed. More than anything, I loved U-NEXT’s business more than anyone else. That passion and commitment is what made me pursue it wholeheartedly.

A CEO must never run away. There was someone who came from McKinsey to join us during the old USEN days. When I asked him why he came to our company, he said, ‘Because I feel like you won’t run away no matter how tough things get, Uno.’ That one statement stuck with me and gave me the strength to take on the challenge of U-NEXT.”

When asked about his favorite motto, Uno answered without hesitation: “Every cloud has a silver lining.”

“I’ve believed in these words since before I started my business, and now I truly feel they are right. Even during the Lehman Shock, I came to see that no matter how unfortunate things seemed, the suffering was for the future. That might be one of the reasons I was able to overcome those hardships.”

His goal is to build a company worth 1 trillion yen. On that path, taking the crown in the streaming industry seems inevitable.

(Honorifics omitted in the text)

From the March 14-21, 2025 issue of “FRIDAY”