2. An Introduction to the Music Market

Contents
1. Executive Summary
p. 4
2. An Introduction to the Music Market
p. 6
3. The Entertainment Environment
p. 7
(I)TV
p. 8
(II) Radio
p. 9
(III) Mobile
p. 10
(IV) Online
p. 12
(V) Print
p. 13
(VI) Record Labels
p. 14
(VII) Music Publishing
p. 15
(VIII) Local Talent
p. 16
(IX) Clubs and Dance
p. 17
(X) Live Performance
p. 18
4. The Digital Landscape
p. 21
Mobile Music
p. 22
Internet Music Downloads
p. 24
Digital Music Services
p. 26
5. Market Entry Recommendations
p. 26
6. Appendices
p. 28
Top 10 Selling Domestic Albums in 2011
p. 28
Top 10 Selling International Albums in 2011
p. 28
Market Statistics
p. 28
Music-related Trade Bodies and Associations
p. 29
2
CONFIDENTIALITY NOTICE & DISCLAIMER
This document was prepared for internal use by Canadian Government and CAAMA members plus
Canadian Music Week attendees only and is not for forwarding or distribution to any third party.
It may not be posted on any website.
All details referenced are the latest available to us at the time of writing, and all information utilized is
believed to be accurate and reliable at the time of submission. However, Swat Enterprises Pte. Ltd.
accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions
3
1. Executive Summary
Japan, an archipelago of 6,852 islands with 47
prefectures, has the world’s tenth largest
population with over 127 million people. Its area
of 377,873 km2 is close to that of Germany and
Switzerland. The greater Tokyo area is the
largest metropolis in the world with a population
of around 36 million, more than the entire
population of Canada. The city of Tokyo alone
has 13.6 million people and the highest
population density at 6,017 persons per km2,
almost 18 times more than the national average.
Prefectures of Kanagawa (capital: Yokohama),
Osaka, Aichi (capital: Nagoya) and Saitama each
have a population of more than 7 million. Per the
last census conducted by the Statistics Bureau of
Japan in 2010 there are 50.93 million
households in Japan and 57% of which are a
nuclear-family (two or more persons) households.
The country is the world’s second largest music market valued at US$4.09 billion, just US$280 million
less than the US. In recent years Japan has fallen a notch to become the third largest economy after
being surpassed by China. Per the World Bank its GDP per capita in 2011 is US$45,903 ahead of
Germany, France and the U.K.
Latest Indicators
Population (m), 2011
127.8
Internet Users (m), 2011
101.23
Internet Households (m), 2011
33.8
Broadband Subscriptions (m), Q1 2012
35.6
Mobile Subscriptions (m), Q1 2012
128.2
Recorded Music, Total Revenue (US$m), 2011
4,087.7 (7%)
Recorded Music, Physical Revenue (US$m), 2011
3,050.8 (4%)
Recorded Music, Digital Revenue (US$m), 2011
902.4 (16%)
Royalty Revenue (US$m), 2011/12
1, 341.7
4
In a significant development for the music industry, overall sales generated from which were down 7% in
calendar 2011, the Japanese government on June 20th 2012 revised its copyright law to include harsher
penalties for illegal downloading offences. With effect from October 2012, if found guilty, one could face a
fine of up to 2 million yen (US$25,000) or a jail term of up to two years. This also applies to those in
possession of pirated material (e.g. DVD, Blu-ray disc). Unauthorized uploading of copyright content is
punishable by up to 10 million yen (US$126,000) in fines or 10 years in prison. This amendment is much
welcomed by the country’s music industry, as the Recording Industry Association of Japan (RIAJ)
estimated that the number of illegal music downloads in 2010 were 10 times more than the legal ones in
2010. This statistic alone has significantly impacted the 16% year on year downturn in digital revenues
(see page 7). In conjunction with these harsher penalties, the association has also proposed the
implementation of an automated mechanism for internet service providers to track user traffic for
suspicious activity and block illegal uploads.
The earthquake and accompanying tsunami in 2011 undoubtedly tested Japan and its people’s ability to
deal and recover from devastation. As the country grapples with the costs of reconstruction the silver
lining came in the form of US$230 billion in funds mutually agreed by the government and the opposition.
Such public investment has helped lift the economy, and for January – March this year it grew at an
annual rate of 4.1%.
The country’s tourism industry is expected to bounce back, and according to the World Travel & Tourism
Council, will contribute US$129 billion in 2012. Business travelers were the first to return, with inbound
arrivals during the second half of 2011 approaching 2010 levels. The Japan National Tourism
Organization echoed the same positive sentiment and aims to top the 2010 record of 18.6 million tourist
arrivals in this year.
Japan may be struggling from the 2011 disaster and global economic downturn but as a result of the
incremental growth in various sectors such as exports and domestic consumption, together with the
resilient nature of the Japanese people, the country is expected to recover sooner than later.
More importantly, for the music industry’s second largest world market, the recently introduced harsh
penalties on copyright abuse are anticipated to slow (better yet, halt) the decline of mobile music
revenues, where piracy is rampant as a result of users swapping songs via message boards (instead of
PC file sharing which is common in the rest of the world). The 24% increase in online sales illustrates a
growing trend in purchasing habits which can only benefit new and catalogue sales of international music
in the future.
The IMF estimates that the country’s GDP will grow 2.9% in 2012.
5
2. An Introduction to the Music Market
In comparison with the rest of Asia, Japan has an advanced music culture and a well established industry
infrastructure which has been a signatory to most international copyright treaties for more than 100 years.
The RIAJ and Japanese Society for Rights of Authors, Composers and Publishers (JASRAC) are
recognized internationally and have affiliations and reciprocal agreements with major societies worldwide.
Music fans from this market
are among the most
knowledgeable and dedicated
in the world. They are exposed
to western culture and
influences through trade,
tourism, media and the
Internet, and the levels of their dedication and cultural sophistication are strong. Japanese fans have diverse
music tastes (Bluegrass, Emo, House, Metal, Gospel, Latin and etc) and the perceived ‘niche’ groups can
be large. Canadian Christian Rock/Hip Hop artist Manafest has sold 30,000 records in Japan. Music fans in
the 30 to 40 age group do not tend to follow trends or charts and their open minded demands can potentially
be targeted and met by Canadian artists and repertoire. Catalogue demand also runs deep, for example,
Roxy Music’s Phil Manzanera has his entire range of solo albums available via one company.
International friendly indie labels in Japan are equipped and experienced in liaising with the West,
providing marketing, promotion, distribution and localization (e.g. translation) of physical products and
digital content. Some also have publishing arms to administer/manage publishing copyright.
6
Despite the country’s shrinking economy, Japan remains one of the top music markets in the world and is
the global leader in terms of physical sales. It represents close to 25% of the global trade value of
US$16.6 billion and almost all genres of music will find fans here.
According to the IFPI Japan ranks number 3 for both performance rights and synchronization revenues in
2011, collecting US$102 million and US$32.4 million respectively.
With the contracting global music market being “Big in Japan” is no longer a cynical jab, but a very
sustainable and essential objective. Non-Japanese repertoire has a market share of about 18% and
valued at US$497.2 million, more than the total recorded revenues of Canada (US$434 million) and
Australia (US$475 million), it makes this market hugely attractive to international labels and artists.
Visiting the market and making in-person connections, while a time consuming exercise that usually
requires sponsorship, is paramount to ensure success. Many countries (e.g. Finland and the UK) have
sponsored and organized multiple trade missions to Japan for this purpose.
Physical formats accounted for 75% of total recorded music sales in Japan during 2011. This figure
includes revenue from the sale of Music Videos, which did very well due to the dramatic 294% increase in
the Blu-ray Disc shipments.
In 2006 Japan became the first market where digital music sales fully compensated for the sales decline
in physical formats. Despite the fact that since 2010 its digital music market has contracted, it is still
ranked number two in the world. Revenue from mobile represents the larger portion (83%) of the total
digital music income but is also on the decline. Internet downloads on the other hand, have recorded a
healthy 24% increase in 2011 and this figure is likely to increase following the recent copyright ruling.
Source: IFPI, World Bank, JASRAC, Informa Telecoms & Media
3. The Entertainment Environment
According to PricewaterhouseCoopers (PwC), Japan is the world’s second largest entertainment and
media market (just behind the US) with E&M spending at US$193 billion, accounting for 42% of total
spending in Asia Pacific. Its advertising market is also ranked number two in the world, with expenditure
in 2011 estimated as being US$48.7 billion and growing at a 3.2% compound annual rate. Japan’s
consumers spent US$79 billion in 2011, more than those of China, Germany and the UK.
JASRAC, the country’s dominant musical copyright administration society has more than 15,000
members and trustors, and manages the rights of over 7 million musical works. It has reciprocal
agreements with 117 copyright societies around the world. Besides JASRAC there are two other (much
smaller) collecting societies in the market – e-License Inc and Japan Rights Clearance (JRC). In 2009
The Fair Trade Commission (FTC) believed that JASRAC was obstructing its competitors, particularly
with its blanket fee collection system and ordered it to stop this perceived monopolistic practice. The
ruling was however retracted in June this year as the FTC was unable to find evidence that the society
7
had flouted the anti-monopoly law. Under this collection system TV and radio stations are expected to pay
a flat fee of 1.5% of their annual revenue for unlimited use of JASRAC administered music.
In 2011 JASRAC collected approximately US$356 million from broadcasting alone, the largest source of
performing rights collection in this market. According to SOCAN, over US$1.8 million in royalties was
collected from JASRAC in 2011 which made Japan the 6th largest international market for the Canadian
society. With Canada’s continued international music successes this ranking can and should improve.
(I) TV
In July 2011 Japan became the first country in Asia to cease analog TV broadcasts and journey into
digital transmission (except for the Iwate, Miyagi and Fukushima prefectures which were severely affected
by the earthquake and tsunami). This has freed up a spectrum for new channels triggering an increased
demand for (original) content, especially for pay-TV broadcasters. The number of broadcast satellite
channels is expected to increase to 37 which will include new Disney and Fox channels. Pay-TV
penetration still has a long way to go, as subscription packages are expensive and have limited content.
NHK (Japan Broadcasting Corporation) is Japan’s public broadcaster with 2 free-to-air TV channels (NHK
and NHK Educational) and 2 satellite channels (BS1 and BS Premium) which are commercial-free and
offer mainly dramas, news, sports and documentaries. All TV households have to pay a compulsory
monthly “receiving” fee of 1,345 yen (US$17) to the broadcaster as stipulated in the Broadcast Law.
Besides NHK, there are five other terrestrial TV networks namely market leader Fuji Television Network,
TV Tokyo Corporation (TXN), Nippon Television Network Corporation (NTV), Tokyo Broadcasting System
(TBS) and Asahi Broadcasting Corporation.
The pay-TV market in Japan is rather small as subscription charges are high. As at end of June 2012 there
were about 27.5 million cable subscribers served by approximately 700 service providers, and most pay the
lowest fee to facilitate reception of major terrestrial TV channels only. According to the Japan Cable
8
Television Engineering Association only 8 million households have multichannel (premium) cable TV
subscriptions. More than 5 million of these have access to the top 29 basic pay TV channels (CASBAA).
Satellite pay-TV and IPTV subscription numbers are even smaller, at 4 million and 1 million respectively.
WOWOW Inc is the first private satellite pay-TV broadcasting company in the country. It has three
channels – WOWOW Prime, WOWOW Live and WOWOW Cinema, and over 2.6 million subscribers as
at June 2012 while rival Sky PerfecTV! has 3.8 million subscribers. It has 255 standard definition and 85
HD channels (such as BBC World News, MTV Japan, Discovery, National Geographic, FOX, Disney, etc)
and has plans to increase the number of HD channels to 120 in Q3 of this year.
There are also numerous multiservice operators (MSOs) in Japan providing a combination of digital TV,
voice and data services, e.g. J:COM which charges 4,980 yen (US$63) monthly for its digital TV service
and NTT Group’s Hikari TV charges 7,560 yen (US$96) monthly for its basic broadcast plan. These
platforms are hoping to benefit from the country’s digital switchover as they anticipate more subscribers
and opportunities to bundle their data and voice services to new customers.
TV is the most impactful promotional medium, especially for music tie ups in drama series and
commercials where in majority of collaborations the former music owners have historically been expected
to waive performance fees in exchange for the exposure generated.
Nevertheless, while there is a good number of music channels and programs on TV, only a handful
features international music regularly, i.e. MTV Japan, Space Shower TV and Music On! TV as well as
music program Music Station (local TRL / Top of the Pops equivalent).
Japan is the second largest media and entertainment producer in the world – between 2006 and 2008
local companies exported 16 formats to 18 markets. Cultural influences have made Japan a difficult buyer
of foreign programming content, and over the same period only one format was imported. With the
current economy and realization that the local market can no longer generate enough returns Japanese
producers are now looking to overseas markets as well as seeking co-production opportunities. The local
industry does however require guidance in this area which historically it has been reluctant to embrace.
(II) Radio
When it comes to promoting international music in Japan radio has a very limited effect compared with print
and online. There are about 215 AM, 89 FM and 21 shortwave radio stations in Japan. The major radio
broadcasters are Japan FM Network (JFN), Japan FM League (JFL) and Megalopolis Radio Network
(MegaNet).
NB: The above are radio networks in a loose, vague sense; they are basically alliances between stations
in various regional markets that share content.
Others in the market include AM stations NHK Radio 1, NHK Radio 2, Japan Radio Network (JRN) and
National Radio Network (NRN).
9
Due to strict government regulations
Japan has a rather short FM band and a
relatively small number of radio stations.
In Tokyo there are only 4 FM stations –
InterFM (MegaNet), J-Wave (JFL), and
Tokyo FM (JFN) and NHK-FM.
Radio therefore has a reduced role as a
promotional medium in this market.
J-Wave is widely recognized as the
most popular FM station in Tokyo. It has
a music chart programme called “Tokio
Hot 100” hosted by Chris Peppler that
features both international and local
music, and MTV Japan is its official TV
partner. This programme also has an
award show every year – in 2010
Charice beat Justin Bieber, Bruno Mars and Ke$ha to win the Best New Artist award (the 2011 show was
cancelled due to the earthquake and tsunami).
Most DJs at InterFM are bilingual and the station offers a mix of Japanese and English programming.
Depending on the DJ on shift, the playlist can feature repertoire from the Beatles to Aerosmith and Chris
Brown to Noel Gallagher.
TFM, the remaining FM station in Tokyo has its own long running chart show for International music
called “Cosmo Pops Best 10”. The top song on this chart in 2011 was Lady Gaga’s “The Edge of Glory”.
JFN also has affiliates in major cities such as in Osaka (FM Osaka), Okinawa (FM Okinawa), Aomori (FM
Aomori) and Kobe (Kiss-FM Kobe). MegaNet operates in Osaka and Fukuoka via FM Cocolo and Love
FM respectively. JFL has FM802 in Osaka, Cross FM in Fukuoka, Zip FM in Nagoya and FM North Wave
in Hokkaido.
(III) Mobile
Japan has one of the largest mobile access markets in the world. On the strength of this it is the leading
territory in overall Internet access with spending at US$65 billion, ahead of the US (per PwC). It has a
projected 4.2% compound annual growth and the spending in 2012 is estimated to increase to US$69 billion.
70.8% of the >128 million mobile phone subscriptions are 3G which, in its tenth year in the market
remains popular. Leading telcos are NTT DoCoMo with about a 47% market share, followed by KDDI
(27%) and Softbank (22%). Other smaller mobile operators include Willcom and eMobile.
10
Softbank, with 29.7 million subscribers as at June 2012, had an early opportunity to make up on market
share by positioning itself as the first telco to carry the iPhone, but this margin has now closed as it no
longer has a monopoly and other operators have been aggressively promoting Android smartphones.
Currently NTT DoCoMo is the only mobile operator that does not carry the iPhone but it is targeting the
nation’s growing ‘grey’ population in an effort to win more market share. In July its Raku-Raku (“easyeasy” in Japanese) smartphone was launched to woo the elderly. It is simple, easy-to-use, comes with
friendly features such as larger fonts and voice recognition application “Shabette Concier”, and has since
attracted more than 21 million users. The company has 60.4 million subscribers as of June 30th 2012, and
hopes to return its smartphone market share to 50% with the Raku-Raku.
At present “high specification feature phones” with advanced capabilities such as mobile wallet features
and GPS, dominate the market with a 63% share. Per comScore, Sharp leads the market with a 23.5%
share followed by Panasonic (13.8%) and Fujitsu (11.8%).
As mobile phone penetration illustrates, operators are pushing the adoption of smartphones. One in five
of mobile phone users in Japan own a smartphone, and Google’s Android platform accounts for the
majority of the smartphone market (61.4%) followed by Apple with 34.2%. By 2016 smartphones are
anticipated to account for 83% (92 million) of Japan’s mobile phone users (eMarketer).
A survey by comScore has found Japanese mobile phone users to prefer using applications (55.4%) than
internet browsers; almost 20% have accessed social networking and blog sites, a little over 18% watched
TV or video and about 12% listened to music on their mobile phones.
11
(IV) Online
Per the Internet World Stats there are over 101 million internet users in Japan, representing an 80%
penetration rate. It is ranked third in the world behind the US and China, with more than 35 million
broadband lines (72.8% household penetration). There is a long list of Internet Service Providers in Japan,
and the main ones include NTT East, NTT West, Asahi Net, OCN, Yahoo BB, @nifty and Biglobe offering
a variety of broadband connection types, from fiber optics (FTTH), ADSL, cable, etc.
Blogs are very popular in Japan and, according to comScore, more than 80% of the internet population
visited a blog site in June. Users spent an average of more than 62 minutes on blogs per month. The
leading blog site is FC2 with more than 46 million visitors per month. Other top blog destinations are
Livedoor Blog (>33 million visitors), Ameblo (>32 million), Seesaa (>25 million) and Yahoo! Blogs (>16 million).
It is projected that there will be over 44 million social networking site users by the end of 2012 and this
number will reach 50 million within two years. The main local sites include Mixi, with more than 27 million
registered users, as well as mobile social/gaming sites GREE and DeNA’s Mobage Town both of which
are thought to have around 20 million users. Manga-based social games such as Gundam Royale, which
recorded 1 million players in just six days, are very popular.
The uptake of Facebook in this market has been slow – most industry experts are of the opinion that
Japanese people are uncomfortable with the lack of anonymity as FB requires users to use their real
names. Nevertheless recent user growth has shown promise, its active user base between September
2011 and March 2012 was 10 million, the majority of which are believed to access the site from their
personal computers. By December 2012 this number is forecast to reach 11.5 million.
Twitter entered the market in 2008, and has fared better than Facebook. It has registered 29.9 million user
accounts and has a partnership with social networking site Mixi to jointly develop new services and
advertise products. Japan is the third largest market in the world for Twitter after the US and Brazil; and
Japanese is the second most used language on this platform. On December 14th 2011 the company
announced that Japanese users had recorded the highest number of tweets at 25,088 times per second.
Japan is also a major focus for many international online video platforms. Many (such as Ooyala and Hulu)
have entered the market to compete with local giants GyaO and Nico Nico Douga. It is estimated that there
are more than 60 million consumers in Japan who watch videos for an average of 12 hours a month. The
growth rate for consumption is anticipated as being 25% per year. It is nevertheless a very competitive and
tough market – local terrestrial broadcasters such as TV Asahi, Fuji TV and TBS already offer their content
on either a subscription or ad-support basis. Dentsu, the country’s largest advertising agency, joined the fray
in August 2011, via a partially advertising funded venture (together with terrestrial TV broadcasters Nippon
TV, TV Asahi, TBS, TXN and Fuji TV) to jointly promote their pay-per-view and VOD services on internet TV
thus allowing consumers to view content online via one source without having to access the individual
broadcasters’ sites. Together they offer viewers 6,500 programmes such as dramas and documentaries at
about 300 yen (US$3.80) per episode.
12
(V) Print
Newspapers may be experiencing decline in circulation worldwide however this is not the case in Japan,
with readership reaching 92% of the population. According to World Press Trends it is the world’s number
three newspaper market behind China and India, selling 50 million copies a day. The most widely read
dailies are Yomiuri Shimbun (daily circulation >10 million), the Asahi Shimbun (8 million) and Mainichi
Shimbun (4 million). English language dailies in the market include The Japan Times, The Daily Yomiuri,
The Nikkei Weekly, The Asahi Evening News and Mainichi Daily News. The latter two now publish their
English editions online only.
Magazines that regularly feature international artists, music and events include:
Publication
Metropolis
Publisher
Metropolis KK /
Japan Inc
Holdings
Tokyo Weekender
Bulbous Cell
Media
Fukuoka Now
Fukuoka Now Ltd
Kansai Scene
Mojo Print
El Magazine
Rockin’ On
Foss Publishing
House
Locking-On
Inrock
In Rock Co
Crossbeat
Shinko Music
Entertainment
Burrn
Woofin’
Jazz Life
Japan Jazz
Original Confidence
Jazz Life
Yamaha Music
Media
Oricon Inc
Grind House
Grind House
Description
English language – Weekly, Free. 1,000 distribution points
throughout Tokyo, Yokohama and China, including
selected retail outlets, hotels, embassies and F&B
establishments. Circ: 30k
English language – Fortnightly, Free. Over 300 distribution
points in Tokyo including selected retail outlets, hotels,
embassies and F&B establishments. Circ: 20k
Bilingual – Monthly, Free. Over 500 distribution points in
northern Kyushu including train stations, hotels, retail
outlets and F&B establishments. Circ: 15k
English language – Monthly, Free. Distributed through
over 500 points in the Kansai region which include
Osaka and Kyoto. Circ 15k
English language – Monthly, Free. Over 290 distribution
points in Tokyo.
Japanese language – Monthly. Features artists from Rock,
Alternative and Indie genres.
Japanese language – Monthly. Features mainly Pop and
Rock artists.
Japanese language – Monthly. Features artists and
music from Rock, Alternative and Indie genres.
Japanese language – Monthly. Features Metal music.
Japanese language – Monthly. Features Hip Hop music.
Japanese language – Monthly. Features Jazz music.
Japanese language – Monthly. Features Jazz music.
Japanese language – Weekly. Trade magazine with chart
and sales information. Will feature International artists,
music news and run features on individuals and indie cos.
Japanese language – Monthly. Features Rock/ Metal
artists.
13
(VI) Record Labels
The RIAJ is in its 70th year and had 59 members at March 2012. The Japan Gold Disc Award established
by the association in 1987 annually honors artists and musical works based on their sales. In 2012
Universal Music artists Lady Gaga and LMFAO respectively walked away with the “Artist of the Year” and
“New Artist of the Year” awards in the International category.
The cumulative output of audio recording to June 30th 2012 in value terms was 100.1 billion yen (US$1.2
billion) per RIAJ, and domestic repertoire accounted for 84% of the market share.
According to Oricon’s H1 2012 listing of top ten grossing record companies, Avex Group Holdings was
ranked first with the highest market share (15.9%); Sony Music Entertainment followed with a 14.3%
share, and together with Universal Music (9.9%), Toys Factory (6.2%) and King Records (6.2%) they
represented the top five grossing companies in Japan. Other local labels on this list include J-Storm,
Victor Entertainment and Pony Canyon. The remainder of the international majors, EMI and WMG had
almost equal market shares last year: EMI just edged WMG, with a 5% share, with the latter claiming a
4.8% share, together with Universal and Sony they represented a total of 34%, highlighting local indie
dominance.
Top independent labels in Japan (alphabetical listing)
Avex Marketing Inc
Being Inc
Columbia Music Entertainment Inc
Dreamusic Inc
Forlife Music Entertainment
Geneon Universal Entertainment Japan LLC
King Records Co Ltd
Nippon Crown Co Ltd
Pony Canyon Inc
Teichiku Entertainment Inc
Tokuma Japan Communications Co Ltd
VAP Inc
Victor Entertainment Inc
Yamaha Music Communications Co
Yoshimoto R and C Co Ltd
Source: RIAJ, 2011
14
In July 2012 the FTC granted Universal Music clearance to acquire EMI Music without conditions in
Japan. This makes the country the second in the world to do so after New Zealand, subsequently the EU
and US have also approved the deal.
There is a wide variety of small and medium sized local independent record labels in Japan which provide
opportunities for international artists and labels. Those notably active in the licensing and release of
international music include P-Vine (represents Stax, Alligator) Beat Records (Warp, Ninja Tune), King
Records (Naïve, Vanguard Records), Victor Entertainment (E1 Music), Columbia Music Entertainment
(Nuclear Blast/RED) and Hostess Entertainment (Beggars Group, Domino Records). Between them these
companies have released albums in a variety of genres such as Blues, Jazz, Latin, Funk, Dub, Electronic,
Alternative Rock, etc. They also work with overseas labels on “one-off” album licenses, and all have at least
one staff within their establishments who is efficient in the English language and acts as point person.
(VII) Music Publishing
The Music Publishers Association of Japan (MPAJ) was established in 1973 and is the only organization
representing the Japanese music publishing industry in the market. It currently has about 300 members
which include both publishers and record producers. Its chairman Haji Taniguchi, who started his career
at Sony Publishing but spent much of it in Records (also at Avex) is now President of Avex Music
Publishing.
In 2010 together with the Japan Association of Music Enterprises (JAME) and the Federation of Music
Producers Japan (FMPJ), the MPAJ founded the “Sync Music Japan” project which aimed to promote
Japanese artists and their music to the world. The project’s official page on MySpace has to date featured
more 300 artists.
With the exception of Universal Music Publishing and Sony/ATV the majors are represented by local
giants – e.g Nichion represents Warner/Chappell Music while Fujipacific Music manages catalogues of
EMI Music Publishing and BMG Rights Management. These two companies are the biggest in the country
and both are affiliates of major conglomerates (Tokyo Broadcasting System and Fujisankei
Communications respectively). Besides the majors they also work with well known independent
publishing houses such as Mushroom Music Publishing, Conexion Media Group, Imagem Music,
Peermusic and Bourne Co.
Other local publishing ‘majors’ include TV Asahi Music, Nippon Television Music, Taiyo Music, Victor
Music Publishing, Watanabe Music Publishing and Seven Seas Music. The latter four have experience in
sub-publishing international catalogues and represent the likes of Sergio Mendes, Lee Ritenour, Brian
Wilson, Black Eyed Peas, Kelly Clarkson, Gilberto Gil, and Esperanza Spalding.
It is possible for Canadian companies to do pan-Asian publishing deal with companies such as Taiyo
Music and Fujipacific Music which are equipped to administer and managed catalogues in this region
through their network of subsidiaries and affiliates.
15
(VIII) Local Talent
Music production and talent management companies such as market leader Johnny & Associates (which
manages super groups SMAP, KinKi Kids, KAT-TUN, Arashi), together with Burning Production,
Watanabe Productions, Up-Front Group/Hello! Project, Amuse and Being have an integral role in the
music business in Japan. Besides developing and managing artists/talents these agencies also actively
scout for new faces to feed the constant demand from the entertainment industry for idols and celebrities.
Many are 360 degree companies involved in management, A&R and record production and have
distribution deals with record labels. They however do not participate in international music business.
Japanese artists are hired as salaried employees and earn far less than their counterparts in the West.
Monthly salaries generally start from around 200,000 yen (approximately US$2,500). The management
companies who provide full ‘baby sitting’ services, have total control and take a huge cut (100% is
actually not uncommon) of the artists’ income derived from commercial engagements, media
appearances, music sales etc. The logic of this claim is that they have invested in the development of
the talent into all round entertainers (lessons in singing, dancing and acting, personal grooming) often
to the minimum of 30 to 40 million yen.
The term J-Pop is believed to have been coined
in the nineties when Japanese popular songs
were booming in popularity, and many artists
managed to sell more than 2 million records
individually. Through Anime (Japanese
animation), TV shows and video games the genre
and its artists managed to amass fans from
around the world.
In recent years K-Pop has gained major inroads
2PM
to the neighbouring Japanese market with idol
groups like 2PM, 2NE1, SNSD (known as ‘Girls’ Generation’ in the English-speaking world and as
‘Shojou Jidai’ in Japanese), KARA and Big Bang. These, though manufactured, have a “cooler and more
sophisticated” image benefitting, particularly throughout Asia, from the increased popularity of Korean
soap operas which feature K-Pop artists’ music synchronized around individual characters.
This widespread exposure throughout the region, together with the influence of Korean fashion and culture
has resulted in pan-Asian success for K-Pop on a different level to that previously enjoyed by J-Pop.
Moreover, K-Pop records are better produced with R&B/Hip Hop influences. The country’s close proximity to
Japan enables K-Pop artists to make regular appearances in the market. In 2011 K-Pop artists accounted
for 24.4 billion yen (7.8% increase) in sales and KARA and SNSD were the top sellers (per Oricon).
Since World War II due to the strained diplomatic relationship between these two countries they have
long kept out each other’s culture from their respective entertainment industries. It was only in the early
16
2000’s that country ties began to normalize and Japan finally caught on to the Korean Wave. Today’s
common opinion is that J-Pop is stuck in the nineties musically (cute adolescence bland) and there has
not been as many big stars produced since Ayumi Hamasaki, SMAP and Namie Amuro, who all are no
longer young. The exception for J-Pop is the rise of girl group AKB48, the world’s largest pop group with
48 members, they grossed about US$215 million in record sales last year and all of their five singles
released have sold over a million copies.
(IX) Clubs and Dance
There’s something for everyone in Japan’s
vibrant nightlife, especially in Tokyo, and Osaka
which are teeming with bars, clubs, karaoke, and
host/hostess clubs. The main entertainment
“zones” in Tokyo are Roppongi, Shibuya and
Shinjuku, and there are venues that cater to
almost every music style, from pop to dancehall
to R&B/Hip Hop to Electronic Dance Music (EDM).
Top DJs from Japan such as Towa Tei, Ken Ishii,
WOMB
Satoshi Tomiie, DJ Krush, Shinichi Osawa, and
Tomoyuki Tanaka are high profile, have toured the world and have released albums and mixed
compilations through international record labels.
There is a good number of venues in Tokyo that can accommodate 1,000 pax or more. Womb in Shibuya is
one of these, on four levels (and the biggest mirror ball in Japan!) and a regular stopover for many
international DJs such as Jeff Mills, John Digweed, Sasha, Richie Hawtin, Steve Aoki and Diplo. ageHa
(also known as AGH), is an entertainment complex with arena sized dance floors, an outdoor patio and a
pool, and has hosted many big names in EDM such as Tiesto, Armin van Buuren and Danny Tenaglia. Its
location is a bit far flung in Shin-Kiba an industrial district, but the club runs a complimentary shuttle service
(about 30 minutes) from Shibuya for revelers. Depending on the lineup (previously drawn Deadmau5, David
Guetta, Paul van Dyk, Fatboy Slim) the
average cover charge is around 4,000
yen (US$51). Other mega clubs in
Tokyo include Warehouse702 and
Sound Museum Vision.
Medium-sized clubs such as AIR and
eleven (formerly known as Space Lab
ageHa
Yellow) can house up to 800 people.
Small venues like Module and Loop can accommodate roughly 300 or less.
For those into hip hop and dancehall/reggae, there is Harlem, Club Jamaica, Club Cactus, Open and The
Room.
17
(X) Live Performance
Japan’s well developed and vibrant live music market makes it one of the world’s main touring destinations
for international artists. As per the All Japan Concert & Live Entertainment Promoters Conference (ACPC)
1,705 out of the
18,442 live
performances in
Japan last year
were by international artists, up
from 1,305 in 2010. The Rock and
Pop genre represents more than
half of all international
performances. Attendance at
these performances last year also
increased to 4.2 million from 3.3
million in 2010.
Summer music festivals such as Fuji Rock
and Summersonic have an average of about
45,000 attendees per day, and are key
events in the international circuit. Fuji Rock
2012 was held from July 27th to 29th, with
acclaimed indie headliners such as
Radiohead, The
Stone Roses,
Noel Gallagher’s
High Flying Birds,
Jack White,
Caribou, James
Blake and Justice playing to a record 140,000-strong attendance which included visitors from China,
Hong Kong as well as Singapore. Summersonic, known for its eclectic lineup of mainstream and indie
genres featured over 100 acts this year including international artists Green Day, Rihanna, Franz
Ferdinand, New Order, Sigur Rós, Adam Lambert, Tears For Fears, Pitbull among many others. It took
place on August 18th to 19th in Tokyo and Osaka. The annual Tokyo Jazz Festival will take place from 7th
to 9th September across three venues in Tokyo, and features 40 artists including Burt Bacharach, Ben E.
King, Ellis Marsalis, Take 6 and Esperanza Spalding.
Sponsorship in conjunction with concerts and festivals is commonplace. Fuji Rock, for example, was
supported by Pocari Sweat this year and Summersonic involved Chevrolet and Jack Daniel’s as sponsors.
18
Beyond Tokyo, other main touring cities in Japan include Osaka, Fukuoka, Nagoya and Kyoto. On top of
the widely attended music festivals there is also a secondary (though relatively small) market for
alternative/indie live music.
Besides big arenas and
stadiums such as the Tokyo
International Forum (capacity
5,000), National Yoyogi
Gymnasium (13,000),
Yokohama Arena (17,000),
Nippon Budokan (20,000),
Saitama Super Arena (37,000)
and Tokyo Dome (55,000),
there are also hundreds of live
venues/houses in Tokyo, most
with capacities ranging from 50
to 200 people. Some larger
Nippon
establishments have seating
capacities for about 1,000 with
excellent PA and lighting equipment. Notable live venues in Tokyo include O-Nest, Club Quattro, Liquid
Room, DUO Music Exchange, Zepp Tokyo, Unit, Bay Hall and Billboard Live; this year alone they have
hosted indie acts of varied sounds, e.g. Asobi Seksu, The Wombats, The xx, St. Vincent, Morrissey,
Bombay Bicycle Club, Simple Plan and Suzanne Vega. Famed Jazz/Latin musicians the likes of Vincent
Gallo, David Benoit and Florin
Niculescu have also played at
well known live clubs such as
Blue Note, Cotton Club, JZ Brat
and B Flat.
Several of the venues
mentioned above such as Club
Quattro, Blue Note, Billboard
Live and Zepp also have
branches in other cities (e.g.
Osaka and Nagoya). Big arenas
and mid-sized halls outside of
Tokyo where concerts are
regularly held include Nagai
Osaka Kyocera Dome
Stadium (Osaka, capacity
50,000), Osaka Kyocera Dome (48,000), Nagoya Dome (40,500), Osaka-Jo Hall (16,000), Nippon Gaishi
Hall (Nagoya, 10,000), Kobe World Kinen Hall (Osaka, 8,000), Grand Cube Osaka (2,700) and Diamond
Hall (Nagoya, 1,000).
19
Promoters such as UDO Artists, Kyodo Tokyo, Creativeman, Ynos (‘live’ arm of Hostess Entertainment)
and H.I.P. are well reputed and have extensive experience in working with international agencies and
artist management companies.
Performing live is considered the best form of promotion for artists and bands, and tour
support/commitment is common. There are opportunities for non A-list International acts from a variety of
genres such as Jazz and Indie Rock to book shows in Japan in intimate venues such as “rai-bu” (live)
houses and nightclubs. It is not unusual for promoters and record labels to bring 3 to 5 bands/artists
together for “multiple-bill” type tours and showcases to share the expense, e.g. the Hostess Club
Weekender organized by Ynos in June featured 10 indie acts over two nights with considerable success,
selling out their 2-day passes which costs 13,900 yen (US$180).
Regular music festivals that feature international acts include:
Festival
Fuji Rock
Organizer
Smash
Dates (2012)
27~29 July
The Labyrinth
Loud Park
Metamorphose
Punk Spring
Sapporo City Jazz
Mindgames
Creativeman
Metamorphose
Creativeman
Sapporo City Jazz
Executive Committee
Creativeman
15~17 September
27 October
12 May
31 March~1 April
7 July~23 August
Genre
Pop, Rock, Alternative,
Indie, Dance
EDM
Metal
Indie, EDM
Punk Rock
Jazz
18~19 August
Pop, Rock, Indie, Dance
2~3 June
7~9 September
Indie, EDM
Jazz
25 August
EDM
Summersonic
Taicoclub
Tokyo Jazz Festival
Wire
Taicoclub
Tokyo Jazz Executive
Committee
Wire
Indie acts such as the Arctic Monkeys (UK), The Strokes (US), MGMT (US) as well as Canadian acts
Broken Social Scene and Crystal Castles have enjoyed reasonable success in Japan, having toured the
country on numerous occasions and some have even entered the local charts.
Examples include:
Arctic Monkeys – Japan Oricon Albums Chart – Zepp 2007, Summersonic 2007, Budokan 2009, Fuji
Rock 2011
The Strokes – Japan Hot 100 Chart – Summersonic 2003, Fuji Rock 2006, Summersonic 2011
MGMT – Japan Hot 100 Chart, Shangri-La 2008, Summersonic 2008, Fuji Rock 2010, Studio Coast 2011
Broken Social Scene – Fuji Rock 2006, Liquid Room 2008, Fuji Rock 2010
Crystal Castles – Summersonic 2008, Liquid Room 2011, Club Quattro 2011
20
4. The Digital Landscape
Japan represents a great opportunity for international artists with a digital music market ranked second in
the world, and valued at close to a billion dollars. Revenue from digital has always been dominated by
mobile based sales although revenue has declined 22% in the last year. PC-based downloads on the
other hand have been steadily increasing and recorded a very healthy growth percentage of 24% in the
same year. Industry players are also hopeful that the recently enhanced copyright laws will contribute to
an increase in future sales.
Digital Indicators 2010 vs 2011
4393.2
4087.7
3177.9 3050.8
2010
2011
1078.4 902.4
99.1 101.2
Internet Users
(m)
117.1 129.4
Mobile
Recorded Music Recorded Music Recorded Music
Subscriptions (m) Sales, Total
Sales, Physical
Sales, Digital
(US$m)
(US$m)
(US$m)
Source: IFPI, Internet World Stats
The RIAJ believes that there is widespread digital piracy in the market from songs being illegally traded
over messaging forums through mobile phones, which is a rather unusual practice in the rest of the world.
The number of illegal music downloads was estimated to be more than 4 billion in 2010, valued at around
US$8.6 billion in lost sales. The industry is hopeful that with the amended copyright law that was passed
in June would-be offenders will be deterred from this practice by the harsh punishments threatened.
Despite Japanese record labels’ history of being very pro-DRM this is gradually changing. In July 2012 it
was intimated that Victor Entertainment, Avex Group Holdings and Warner Music Japan would be totally
foregoing copy protection on their content by the year end.
21
Digital Music Sales, H1 2012
Mobile (US$m)
252.4
Internet (US$m)
102.3
Source: RIAJ
Sales by Format (Value)
70.3%
28.5%
1.2%
Mobile
Internet
Others
Source: RIAJ, H1 2012
Note:“Mobile” include mastertone, RBT, single track and music video downloads as well as subscriptions.
“Internet” include single track, album and music video downloads as well as subscriptions.
Mobile Music
Despite the much reported decline in revenues from mobile in recent years the undisputed fact is that this
sector still accounts for over 80% of the digital music market. Simple billing by the mobile operators is
attractive to music consumers as they pay for their purchases as part of their monthly bills by direct debit
through their banks. Japan is a predominantly cash driven society with credit card penetration rate at only
12% of total consumer spending in a year (per Visa).
RecoChoku (formerly known as Label Mobile) established by the major labels in Japan (including Avex,
Victor Entertainment, Sony Music Entertainment, EMI and Universal Music) is the market’s leading mobile
music service with about 65% market share. Recently there has been an unconfirmed report that Sony
Music Entertainment would be making its domestic repertoire available to iPhone and iPod users through
this service and not via iTunes Japan. It is thought that this is due to the longstanding rivalry between
Sony and Apple on the Japanese company’s home turf.
22
In May 2012 telcos NTT DoCoMo and KDDI announced the launch of their unlimited streaming services
Music Store Selection and Uta Pass respectively. Both offer subscribers access to their catalogues at 315
yen (US$4) per month.
Sony Corporation’s cloud-based music streaming service Music Limited was first launched in the UK in
2010. Sixteen or so countries later it finally arrived in Japan in July 2012, and is reported to have a
catalogue of more than 10 million songs from all the majors as well as leading Japanese independent
labels. Users can stream music on both internet connected mobile devices such as Android-based
phones and tablets plus the PlayStation and PC.
According RIAJ’s latest data on digital music delivery, single track was the best performing format for
mobile music at US$156.4 million (>36 million downloads) as at H1 of 2012, followed by RBT at US$46.3
million (>42 million downloads).
Mobile Sales by Format (Value)
62.4%
13.3%
18.5%
RBT
Mastertone
2.5%
Single
3.3%
Music Video
Others
Source: RIAJ, H1 2012
In 2011 more than 87 million units of mastertones (chaku-uta in Japanese) were sold. RBTs (machi-uta)
and single tracks sold over 108 million and 99 million units respectively. Typically, Japanese record labels
will release mastertones a month (or two) ahead of their physical releases to access market potential and
to build up sales of the physical formats. This works well especially for titles that have small or no budget
for promotions.
23
Top Selling Mastertones in Japan (H1 2012)
TITLE
ARTIST
Be…
Ms. OOJA
Misenainamidaha, Surely Someday
GReeeeN
Give Me Five!
AKB48
Sakura, I Love You?
Kana Nishino
We
Kana Nishino
Rising Sun
EXILE
Love Story
Namie Amuro
Te Woman Correctly People
Golden Bomber
Orbit of Tears - Prayer
Mr. Children
Happiness
AI
No Matter How
Kana Nishino
I Wanted To Meet You
Naoto Inti Raimi
Source: Recochoku.jp
NB: International (western) artists who entered RecoChoku’s Top 100 chart for H1 2012 were Lady Gaga
with Born This Way at #57, LMFAO (Party Rock Anthem, #63) and Whitney Houston (I Will Always Love
You, #75).
Top Selling Mastertones in Japan (All-time)
TITLE
ARTIST
Story
AI
Sakura
Kobukuro
Anpanman’s March
Dreaming
Chu-Lip
Ai Otsuka
Michi
Exile
Peach
Ai Otsuka
Ainouta
Koda Kumi
Ai Wo Komete Hanatabawo
Superfly
Ginga Tetsudou 999
Exile
Ichibu to Zenbu
B’z
Best Friend
Nishino Kana
Kimitte
Nishino Kana
Source: RIAJ
Internet Music Downloads
PC-based music services have been experiencing slow but steady growth over the past years with
revenues having increased from 5.9 billion yen (US$75.6 million) in 2007 to 7.9 billion yen (US$102 million)
in H1 2012. The top selling format is the single track download which recorded a little over 33 million
downloads (US$68 million in value), followed by album downloads at 2 million units (US$27.2 million).
24
Internet Sales by Format (Value)
68.3%
4.8%
26.9%
Single
Album
Music Video
Source: RIAJ, H1 2012
Japan was the first market in Asia to have iTunes, and on the back of healthy iPod sales the company
managed to record over a million downloads within its first four days in the market. Its high profile launch
is thought to have given the weak PC-based music market a much needed boost as, prior to this, the
market’s existing services only managed to sell a few hundred thousand songs collectively. It is
interesting to note that Sony Music only made its international repertoire available on iTunes in 2012,
almost seven years after iTunes was first launched here. The growth potential of this service is becoming
hard to ignore and with the sales of the iPhone reaching 7.25 million units in 2011 iTunes sales are
expected to benefit.
Napster Japan, a joint venture with Tower Records Japan, was the first subscription based music service
in launched in 2006 but, unfortunately, it never gained traction, closing in May 2010. It was believed that
the record labels rejected the DRM free model and were not convinced on the subscription model hence
making it impossible for Napster to license enough content to attract subscribers.
Amazon is one of Japan’s top online retailers with strong CD sales. Its online MP3 store was launched in
2010 though does not have the support of the majors (except for EMI) who are not keen on Amazon’s
DRM free policy.
Label Gate, which operates the internet music service Mora, was established in 2000 by Japanese record
labels with its major shareholder Sony Music Entertainment.
25
Digital Music Services
The entry of Music Unlimited heralds a new era for digital music in Japan, indicating industry players are
now ready to embrace the subscription-based model which is already growing rapidly in the rest of the
world’s mature music markets. Below are digital music services in the market as recognized by the IFPI.
Anlloco
Beatport
Best Hit J-Pop
ClubDAM
Dwango
Hudson
ICJ
iTunes
Lismo
Listen Japan
Mora
Mora win
Music Airport
Music.jp
Music Unlimited
Musico
Musing
Naxos Music Library
Oricon ME
OnGen
RecoChoku
Yamaha Music Media YouTube
5. Market Entry Recommendations
Japan being largely a domestic market, media reach is limited. Advertising on traditional media such as
TV is too expensive for the majority of independent releases and radio has a restricted impact in
stimulating consumer demand and in popularizing artists and their songs.
Most promotional initiatives will require Canadian companies to initially make their content (particularly of
new/unknown artists) available for free, as in the case of placement opportunities in TV drama series,
shows, and Anime where production companies expect fees to be waived in exchange for the exposure.
It is possible to pitch for inclusion after securing a sub-publishing which in turn helps to leverage a master
license. Aggressive local publishers are also in a position to secure Japanese covers of English songs.
The latest album of UK recording artist Adele only managed to reach Gold status (100,000 units) in Japan
despite phenomenal worldwide success. However, in July it was announced that her songs will be
featured in Fuji TV’s new drama serial “Iki mo Dekinai Natsu”. While details of this tie-in are still
undisclosed, this development is expected to have a major impact if the drama is as popular as expected.
A similar initiative in the 90’s generated 3 million sales for the Backstreet Boys.
Japanese TV commercials also frequently feature music from relatively unknown artists, e.g. Nikon used
the track “Welcome Home” by American indie band Radical Face. There are also opportunities for
catalogue music – Softbank’s recent advert featured Julee Cruise’s “Falling” which was originally released
in 1989. Hence the need for aggressive Japanese representation capable of making the necessary
pitches to secure such tie-ups for Canadian repertoire.
Social networking sites have become an important promotional medium for music in recent years and
indie acts (domestic and international) can aggressively promote their music through them. For labels
without local representation creating an online presence in local language means that music fans can
access music and news easily which can help build a foundation. By creating a blog/website in Japanese
(preferably mobile friendly as many access the internet via their mobile phones) it is possible to attract
consumers to sample or even buy music, follow artist/release news and reach out to the artist/company in
26
their own language. Promotion efforts for the appropriate product can also include mail outs to local DJs
which, if sent direct from Canada, can have a big impact.
Pre-recorded documentaries with the flexibility to overdub or subtitle in Japanese can be placed both with
international airline carriers and within an increasingly hungry TV programming market. This initiative
would benefit from a Canadian industry approach towards a series on the history of Canadian music.
A “digital only” strategy can also be explored especially for companies that are already selling content
through international affiliated iTunes, Music Unlimited and Amazon MP3, and are in a position to
negotiate the inclusion of Japan in their existing licensing deals. However it should be noted that in
order to sell mobile content such as the chaku-uta, companies will need to have a label partner and
translator or a distributor. This is due to the fact that aggregators like RecoChoku (Label Mobile) only
deal with local companies.
As with physical releases, international labels will require the assistance of a local label or distributor to
translate and customize content (e.g. Japanese liner notes, obi, press releases, biographies etc) for
local use. Special Japanese versions (nihonban in Japanese) with bonus material and different
packaging from their international releases are the norm and expected. If without representation, the
export of physical CDs through retailers with online presence such as Disk Union, HMV/Lawson,
Amazon and Tower Records is another option but it is unlikely that volume will be high.
As for live opportunities, the best starting point is to secure a slot on the festival lineups. Approaching
those festivals and organizers listed on the Live section on page 18 would be a good place to start as
they have a lot of experience working with foreign bands and are able to communicate in English. Artist
agents using the leverage of their more established acts can be particularly helpful in this regard. For
artists unknown in Japan that cannot secure performance fees, travel and accommodations are
sometimes covered. Live appearances and forthcoming visits help secure both physical releases and
local representation. We strongly recommend that any showcase type visits incorporate a set-up period
that factor in some of the above initiatives.
27
6. Appendices
Top 10 Selling Domestic Albums in 2011
Artist
Title
Arashi
Beautiful World
AKB48
Koko ni Ita Koto
EXILE
Negai no Tou
Namie Amuro
Checkmate!
Keisuke Kuwata
MUSICMAN
SMAP
SMAP AID
Ikimonogakari
BEST selection
B’z
C’mon
Aiko
Summary I
Superfly
Mind Travel
Unit Sales (Physical only)
907,589
829,645
743,242
484,336
414,725
413,943
397,459
383,428
373,677
346,598
Source: Oricon
Top 10 Selling International Albums in 2011
Artist
Title
Lady Gaga
Born This Way
Shoujo Jidai (SNSD)
Girls’ Generation
KARA
Super Girl
Avril Lavigne
Goodbye Lullaby
Tohoshinki (TVVQ)
TONE
KARA
Girl’s Talk
Che’Nelle
Luv Songs
Red Hot Chili Peppers
I’m With You
VA
Songs For Japan
Shoujo Jidai (SNSD)
Hoot
Unit Sales (Physical only)
658,554
642,054
450,595
368,483
293,674
277,306
208,439
156,372
152,554
148,761
Source: Oricon
Market Statistics
1. Japan is forecast to be among the top five countries in the world with the most digital households
(50.7 million) by end 2017.
2. 134,164,000 units of album CDs were shipped in 2011 and 5,877,000 units of which were new
releases.
3. 62,399,000 units of single CDs were shipped in 2011 and 2,902,000 units of which were new
releases.
4. International CD albums shipped 37,495,000 units in 2011 and account for 28% of the market.
5. International CD singles shipped 1,374,000 units in 2011 and account for 2% of the market.
6. A total of 361 local artists debut in Japan last year.
28
7. Japan’s Anime market is estimated to be worth more than 200 billion yen (US$2.3 billion), with more
than 70 series being broadcast in a week. Top Anime studios include Madhouse Productions, Kyoto
Animation, Sunrise Inc and Toei Animation.
8. The top selling manga series for the first half of this year are One Piece, Naruto and Hunter X Hunter.
The top three manga publishers for the same period are Kodansha, Shueisha and Shogakukan.
9. Per the Japan Online Game Association (JOGA) the size of Japan’s online gaming market is worth
US$5.4 billion in 2011, and social gaming accounts for market share of more than 66% (US$3.6
billion). Morgan Stanley projects market to grow to US$5.2 billion in 2013.
10. Japanese online game developers had done US$111 million worth of business overseas in 2011.
11. The market size of karaoke in Japan was valued at 617 billion yen (US$7.8 billion) last year according
to the All-Japan Karaoke Industrialist Association. Daiichikosho Co. is the country’s biggest karaoke
equipment and software provider. Top karaoke establishments in Tokyo include Karaoke Kan, Big
Echo, and Shidax.
Music-related Trade Bodies and Associations
Japanese Society for Rights of Authors, Composers and Publishers (JASRAC)
3-6-12 Uehara, Shibuya-ku, Tokyo 151-8540
T: +81-3-3481-2121
www.jasrac.or.jp
Recording Industry Association of Japan (RIAJ)
2-2-5 Toranomon, Minato-ku, Tokyo 105-0001
T: +81-3-5575-1305
www.riaj.or.jp
Music Information on Neighboring Rights and Copyright (MINC)
Japan Association of Music Enterprises (JAME)
1-26-3 Sendagaya, Shibuya-ku, Tokyo 151-0051
www.minc.gr.jp
Music Publishers Association of Japan (MPAJ)
2-31-8 Minami-Aoyama, Minatu-ku, Tokyo 107-0062
T: +81-3-3403-9141
www.mpaj.or.jp
Japan Association of Music Publishing
Gakki Kaikan 4F, 2-18-21 Soto-Kanda, Chiyoda-ku, Tokyo 101-0021
T: +81-3-3257-8797
j-gakufu.com
Federation of Music Producers Japan (FMPJ)
5-48-1 Jingumae, Shibuya-ku, Tokyo 150-0001
T: +81-3-5467-6851
www.fmp.or.jp
The Japan Federation of Composers
No. 101 Mimori bldg, 1-19-4 Hatsudai, Shibuya-ku, Tokyo 151-0061
T: +81-3-6276-1177
www.composer.or.jp
29
Japan Composers’ Association (JACOMPA)
4-7 Roppongi 3-chome, Minato-ku, Tokyo 106-0032
T: +81-3-3585-4970
www.jacompa.or.jp
Agency For Cultural Affairs
3-2-2 Kasumigaseki, Chiyoda Ward, Tokyo 100-8959
T: +81-3-5253-4111
www.bunka.go.jp
Foundation for Promotion of Music Industry and Culture (PROMIC)
9F Kyodo Tsushin Kaikan bldg, No. 2-5 Toranomon 2-chome, Minato-ku, Tokyo 105-0001
T: +81-3-3560-9881
www.promic.net
All Japan Concert & Live Entertainment Promoters Conference (ACPC)
Ebisu LITE bldg, 3F, 3-1-19 Ebisu-minami, Shibuya-ku, Tokyo 150-0022
www.acpc.or.jp
Association of All Japan TV Program Production Companies (ATP)
Akasaka Konno Building, 4F, 7-10-6 Akasaka, Minato-ku, Tokyo
T: +81-3-3582-8520
www.atp.or.jp
Center for Performers’ Rights Administration (CPRA)
Tokyo Opera City Tower, 11F, 3-20-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-1466
T: +81-3-5353-6600
www.cpra.jp
Geidankyo (Japan Council of Performers’ Organizations)
Tokyo Opera City Tower, 11F, 3-20-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-1466
T: +81-3-5353-6600
www.geidankyo.or.jp
Japan Advertising Music Productions Federation (JAM)
Sarugakucho 22-1, Shibuya-ku, Tokyo 150-0033
T: +81-3-3470-5451
www.jam.or.jp
Japan Association of Professional Recording Studios (JAPRS)
2-1-11 Okubo, Monāku Okubo 3F, Shinjuku-ku, Tokyo 169-0072
T: +81-3-3200-3650
www.japrs.or.jp
Japan Video Software Association (JVA)
3F, No. 26 Tsukiji MF bldg, 2-12-10 Tsukiji, Chuo-ku, Tokyo 104-0045
www.jva-net.or.jp
Society for the Administration of Remuneration for Audio Home Recording (SARAH)
1-8-14 Kojimachi, Chiyoda-ku, Tokyo 102-0083
T: +81-3-3261-3444
www.sarah.or.jp
30
Society for the Administration of Remuneration for Video Home Recording (SARVH)
Akasaka Mitsuji bldg 6F, 5-4-6 Akasaka, Minato-ku, Tokyo 107-0052
T: +81-3-3560-3107
www.sarvh.or.jp
Association of Musical Electronics Industry (AMEI)
2-16-9 Misaki-cho, Ito Bldg. 4F, Chiyoda-ku, Tokyo 101-0061
T: +81-3-5226-8550
www.amei.or.jp
Japan Association of Culture on Common Music (JACCOM)
5-13-12 Minami Azabu, 2F, Minato-ku, Tokyo 106-0047
T: +81-3-3447-2175
www.jaccom.or.jp
Japan Society for Contemporary Music (JSCM)
501 Yamaichi bldg, 2-5-7 Higashi-Gotanda, Shinagawa-ku, Tokyo 141-0022
T: +81-3-3446-3506
www.jscm.net
Japan Popular Music Writers Association (JPM)
3-40 Daikyo-cho, Shinjuku-ku, Tokyo 160-0015
T: +81-3-3225-1234
www.jpm-nikkagei.com
Musicians Union of Japan
Geinokadensha 2F, 6-12-30 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-0023
T: +81-3-5909-3062
www.muj.or.jp
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