TOKYO, Nov. 3, 2009 (Kyodo News International) --
(Editors: ADDING INFO)

JVC Kenwood Holdings Inc. is considering selling its music software group company Victor Entertainment Inc. as part of efforts to rehabilitate its struggling businesses, sources familiar with the matter said Wednesday.

Candidates the holding company of Victor Co. of Japan, known as JVC, and Kenwood Corp. are considering as the possible buyer include major video game software developer Konami Corp. (NYSE:KNM) , the sources said.

Victor Entertainment, a wholly-owned subsidiary of JVC, is widely known for the raft of famous bands and artists on its books, such as Southern All Stars and SMAP.

JVC Kenwood, established via management integration between JVC and Kenwood in October 2008, has been suffering from poor earnings as it has taken a blow from the global recession, the sources said.

The holding company is keen to rehabilitate its profitability by limiting the number of business segments into which it will go on funneling its resources, they said.

The music software industry is taking a beating from the growing tendency of consumers buying music online, rather than buying CDs. JVC Kenwood's move may accelerate the realignment of the industry.