RIAJ YEARBOOK 2013 The Recording Industry in Japan 2013 Contents Overview of Production of Recordings and Digital Music Sales in 2012 ........................... 1 Statistics by Format (Unit Basis — Value Basis) ........................................................................ 4 1. Total Recorded Music — Production on Unit Basis.................................................................... 4 2. Total Audio Recordings — Production on Unit Basis ..................................................................4 3. Total CDs — Production on Unit Basis ......................................................................................4 4. Total Recorded Music — Production on Value Basis ................................................................. 5 5. Total Audio Recordings — Production on Value Basis ............................................................... 5 6. Total CDs — Production on Value Basis .................................................................................... 5 7. CD Singles — Production on Unit Basis .................................................................................... 6 8. 5" CD Albums — Production on Unit Basis ...............................................................................6 9. Music Videos — Production on Unit Basis ................................................................................ 6 10. CD Singles — Production on Value Basis .................................................................................. 7 11. 5" CD Albums — Production on Value Basis .............................................................................7 12. Music Videos — Production on Value Basis .............................................................................. 7 13. Digital Music Sales ................................................................................................................... 8 14. Digital Music Sales by Contents ................................................................................................ 8 15. Recorded Music — Production on Unit Basis ..........................................................................10 16. Recorded Music — Production on Value Basis ....................................................................... 11 17. Newly Released Audio Recordings ..........................................................................................12 18. Audio Recording Catalogue Listings ........................................................................................ 13 19. Newly Released Audio Recordings (1957-2012) ..................................................................... 14 20. Audio Recording Catalogue Listings (1971-2012) ................................................................... 15 21. Newly Released Music Videos ................................................................................................ 16 22. Music Video Catalogue Listings .............................................................................................. 16 23. Number of Domestic Debut Artists .......................................................................................... 17 24. Number of Record Rental Shops ............................................................................................. 17 Related Data ........................................................................................................................................... 18 25. 27th Japan Gold Disc Award 2013.......................................................................................... 18 26. Certified Million-selling Titles .................................................................................................. 20 27. Certified Million-selling Titles in 2012 ..................................................................................... 21 28. Amount Collected for Sound Recordings and Others ............................................................... 22 29. Global Sales of Recorded Music ............................................................................................. 23 RIAJ Member Companies (in chronological order as of the date of joining RIAJ or Company foundation) ............ 25 N.B. 1. The current year’s statistics are compiled results of the member companies of RIAJ. The figures also include OEM sales by RIAJ members for non-RIAJ members. 2. Figures are rounded, hence the possible difference between breakdown and total. Overview of Production of Recordings and Digital Music Sales in 2012 In 2012, the total production value of recorded music (audio and music videos) achieved double-digit growth of 10% to 310.8 billion yen for the first time in 14 years. Unit production in this segment also recorded double-digit growth with a year-on-year increase of 12% to 290.66 million units, thereby realizing an increase for the second consecutive year. At the same time, although digital music was down 25% to 54.3 billion yen versus the previous year, the total value of recorded music and digital music sales increased 3% to 365.1 billion yen for the first time in five years. Audio Recordings Music Videos Regarding audio recordings, unit production increased 9% to Production of music videos recorded double-digit growth versus 218.03 million units and rose 8% to 227.7 billion yen on a the previous year for the second consecutive year and amounted value basis from the previous year. Specifically, in addition to to 72.63 million units with a value of 83.1 billion yen, repre- favorable results of CD singles that were maintained by surpass- senting an increase of 21% and 18%, respectively. Strong ing the previous year results both in terms of unit production growth continued in music DVDs with unit production increas- and value for the third consecutive year, unit production and ing 18% to 68.64 million units and value increasing 11% to value of CD albums also increased 12% to 150.31 million units 70.9 billion yen. Additionally, music Blu-ray Discs also contrib- and 9% to 180.2 billion yen, respectively. As a result, unit uted by achieving significant growth in unit production, which production and value of overall audio recordings respectively jumped 97% to 3.98 million units, and value, which increased achieved a year-on-year increase of 9% and 8% for the first 99% to 12.2 billion yen. As a result, the percentage of music time in 14 years. The composition of domestic and international DVDs and music Blu-ray Discs was 85% and 15% (versus 91% recorded music was 84% and 16% (versus 82% and 18% in and 9% in the previous year), respectively, which in turn indi- the previous year) on a value basis, whereby the trend shifted cated an increase in the percentage of music Blu-ray Discs slightly toward higher domestic recorded music and lower inter- among the total of music videos. national recorded music. However, the percentage of domestic and international repertoire for the total of audio recordings Digital Music The Recording Industry in Japan The Recording and music videos was 87% and 13% (versus 84% and 16% in Digital music sales decreased 25% to 54.3 billion yen in value. the previous year), respectively. This was attributable to various This was largely attributable to a 37% decline in unit production factors such as a growth in music videos, in which domestic and 40% decline in value of mobile digital contents that con- music videos have a high percentage (93% and 7% both in tinued from the previous year. Conversely, Internet downloads, terms of unit production and on a value basis). Consequently, including PC and smartphones, recorded double-digit growth the percentage of domestic repertoire among overall is of 26% on a unit basis and 43% on a value basis, thereby becoming larger every year. indicating a continuously shifting trend from mobile phones to Internet downloads. Consequently, the percentage of sales of Internet downloads and mobile digital contents was 34% and 66% (versus 18% and 82% in the previous year), respectively. (Millions/Billions of yen) Units vs. prev. yr Value vs. prev. yr Audio 218 109% 227.7 108% Music Videos 73 121% 83.1 118% Recorded Music (Total of Audio/Music Videos) 291 112% 310.8 110% Digital Music 272 74% 54.3 75% Total of Recorded Music and Digital Music — — 365.1 103% [Reference] Composition of Recorded Music and Digital Music — Value Basis ● 2010 ● 2011 ● 2012 Digital Music Digital Music Digital Music 23% 20% 15% Audio Audio Audio 61% 60% 62% Music Videos Music Videos Music Videos 16% 20% 23% RIAJ Yearbook 2013 1 Overview of Production of Recordings and Digital Music Sales in 2012 ● Recorded Music — Unit Basis ● Recorded Music — Value Basis Millions of units Billions of yen 400 303 300 291 361.8 273 56 256 260 300 65.6 316.5 310.8 59 73 283.6 281.9 46 60 66.9 200 83.1 58.6 200 70.2 248 296.1 214 218 249.6 100 210 200 225.0 227.7 100 211.7 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Audio Music Videos Audio Music Videos ● Digital Music — Unit Basis ● Digital Music — Value Basis Thousands of units Millions of yen 90,547 90,982 1,678 1,523 85,990 479,188 468,223 80,000 1,121 34 60 441,457 71,961 400,000 159 367,285 1,056 60,000 54,298 2,506 1,528 271,856 79,854 79,250 74,745 2,313 437,285 421,349 391,807 40,000 58,337 200,000 303,763 34,783 192,455 20,000 0 41,869 46,813 49,491 61,015 77,088 0 9,015 10,209 10,123 12,569 17,987 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Internet Downloads Mobile Others Internet Downloads Mobile Others The Recording Industry in Japan The Recording ● Composition