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.