JapanMusic Industry Presentation

Jarrod Faria

The State of Japan

Population – 127.3 Million

Currency – YEN 1GBP : 132.502

Chart Compiler – RIAJ

Economy – The economy of Japan is the third largest in the world after the United States and the People's Republic of China

Government - The government of Japan is a constitutional monarchy Power is held chiefly by the Prime Minister of Japan and other elected members of the Diet; Japans Legislature – Upper and Lower Houses

The Japanese Market

The Second Largest Music Market in the World

Accounts for 20% World Wide Digital sales

78% World Wide Physical Sales

Global Share of Sales Recoded Music

RepertoireDomestic 80% – Pop, Traditional, Children's, Animation, Classical, Karaoke and Rock

International 20% – Pop, Rock, Disco, Jazz and Fusion

Repertoire – Domestic + International

Domestic Artists

A consistent growth area in the Japanese Market both with debut artist and second debuts

Japanese Music Distribution System

Recorded Music + Digital Music Delivery

Steady Growth of Digital Music Delivery from 12% to 20% and Slow Growth in Music Video Recordings from 12% - 15% in 2008

While Audio Recordings Production has dropped 76% - 65%

Piracy Issues

Piracy issue is unlicensed copying in Taiwan of Japanese Music

Unauthorized file-sharing

81 million music files were illegally downloaded in 2004.

258 million CDs were burned with music in 2004, compared with 200 million CD albums purchased.

Number of illegal music downloads annually is estimated to be more than 407.14 million files in Japan

State of the Local Industry

Between 2000 and 2004 audio music sales fell by 30% - a loss of 200 billion yen ($US 1.8 billion).

The under 20's consumer made up about 60% of CDs sales back in 1998, by 2004 this has dropped to about 40%.

In 2000, 26 albums sold over 1 million copies in Japan, by 2004 this had dropped to 10 albums selling over 1 million.

Millions of Album Sellers - 2008

Digital Music Sales

Digitally in 2008 only One album sold over 3 million copies, Five albums sold a million +

Three Mobile Singles sold over a million digitally

Legitimate Services

There are at least eleven legal sites in Japan, including: Mora, Excite Music Store, OCN Music Store, Listen Music Store, Love Music Store, Ongen, MSN Music, Yahoo! Music Download, ORICON STYLE, music.jp, reco-choku full

Future Growth Areas

In Japan, a predominantly mobile music market, digital sales helped overall trade revenues to growth in the first half of 2008.

140 million mobile singles were sold in 2008, an increase of 26% on the prior year (RIAJ).

Digital was 20% of the overall music market and continuously growing.

Research conducted by RIAJ showed the number of illegal music downloads annually is estimated to be more than 407.14 million files in Japan.

The End

Questions?