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The Recording Industry in Japan 2007 CONTENTS

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The Recording Industry in Japan 2007 CONTENTS RIAJ YEARBOOK 2007 The Recording Industry in Japan 2007 CONTENTS Overview of Production of Recordings and Digital Music Delivery in 2006 ....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. Sales Figures of Digital Music Delivery ..............................................................................8 14. Million Sellers in 2006 (Related Data) ..............................................................................9 15. Transition of Million Sellers (Related Data)........................................................................9 16. Transition of Recorded Music—Production on Unit Basis ..............................................10 17. Transition of Recorded Music—Production on Value Basis ............................................11 18. Recorded Music—Production on Monthly Unit Basis ......................................................12 19. Audio Recordings—Production on Monthly Unit Basis....................................................12 20. Music Videos—Production on Monthly Unit Basis ..........................................................12 21. Recorded Music—Production on Monthly Value Basis....................................................13 22. Audio Recordings—Production on Monthly Value Basis ................................................13 23. Music Videos—Production on Monthly Value Basis ........................................................13 24. Newly Released Audio Recordings..................................................................................14 25. Audio Recordings on Catalogues ....................................................................................15 26. Transition of Newly Released Audio Recordings ............................................................16 27. Transition of Audio Recordings on Catalogues................................................................17 28. Newly Released Music Videos ........................................................................................18 29. Music Videos on Catalogues ..........................................................................................18 30. Number of Domestic Debut Artists ................................................................................19 31. Number of Record Rental Shops ....................................................................................19 32. Distribution System in Japan............................................................................................19 Related Data....................................................................................................................................20 33. The 21st Japan Gold Disc Award 2007 (March 2007)....................................................20 34. Global Share in Sales of Recorded Music........................................................................23 35. Global Sales of Recorded Music by Country in 2005 ....................................................24 RIAJ Member Companies (In chronological order as of the date of joining RIAJ or Company foundation) ........................................................25 Overview of Production of Recordings and Digital Music Delivery in 2006 In 2006 ( January to December), the total production of recorded music (audio and music video recordings) amounted to 346.78 million units at a value of 408.4 billion yen. Although overall production of recorded music declined 6 million units and 13.8 billion yen in terms of value, the overall value of recorded music and digital music delivery increased for the second consecutive year and was up 101% versus the previous year. Audio Recordings Music Videos Production of audio recordings unfortunately decreased for the Unit production of music video recordings has been steadily eighth consecutive year. Nonetheless, the rate of decline increasing since 2002 when statistical data was first compiled. improved and singles exceeded previous year results for the Despite a decline in value in the previous year compared with first time in three years, indicating a synergistic effect with digital 2004, the production of music video recordings achieved a record music delivery. high in terms of value in 2006. Digital Music Delivery Efforts Toward Expanding Demand of As a follow-up to 2005, which is recognized as the initial year of Music Users delivery of digital music services, digital music delivery in 2006 also Discovering and nurturing new creative music artists as well as achieved a phenomenal increase of 156% over the previous year. continuing to produce and provide music that responds to various Among digital music delivery, the value of downloads achieved via user needs are necessary for expanding the music market. Based the Internet jumped 272%, nearly double the increase of 149% for on an improvement in the declining rate of production of recorded downloads for mobile phones. However, the percentage of Internet music, record manufacturers are aiming to realize further downloads in terms of overall digital music delivery was 9% (5% in improvement via the debut of 324 new artists (groups), an even 2005), still remaining at a lower rate compared with Western greater number than in 2006, as well as by introducing 19,201 new countries. Conversely, downloads via mobile phones accounted for recording titles, including music for middle-aged and older persons, more than 90% of overall digital music delivery, in which single track which have currently become a core segment in the market. downloads service grew significantly by 250%. Units (millions) vs. prev. yr (%) Value (billions of yen) vs. prev. yr (%) Audio 298 96% 351.6 96% Music Videos 49 114% 56.8 103% Recorded Music (Total of Audio/ Music Videos) 347 98% 408.4 97% Digital Music Delivery 368 137% 53.5 156% N.B. The current year’s results are compiled results of the 43 member companies of RIAJ. Above figures also include recorded music imported by RIAJ members as well as OEM sales by RIAJ members for non-RIAJ members. [Reference] Composition of Recorded Music and Digital Music Delivery — Value Basis ●2005 ●2006 Digital Music Delivery Digital Music Delivery 8% 12% Music Videos Music Videos 12% 12% Audio Audio 80% 76% RIAJ Yearbook 2007 1 Overview of Production of Recordings and Digital Music Delivery in 2006 ●Recorded Music Trend—Unit Basis ●Recorded Music Trend—Value Basis Millions of units Billions of yen 500 400 481.5 37.7 456.2 358 361 347 353 347 431.3 422.2 400 56.5 408.4 15 32 43 53.9 300 35 49 55.0 56.8 300 200 443.8 343 328 200 399.7 313 310 298 377.4 367.2 351.6 100 100 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Audio Music Videos Audio Music Videos ●Digital Music Delivery Trend— ●Digital Music Delivery Trend— Quarterly Unit Basis Quarterly Value Basis Thousands of units Millions of yen 100,000 96,667 15,000 15,076 88,964 90,493 91,939 0 13,641 88 17 0 2 82,378 12,173 12,588 70 80,000 74,448 14 12,000 24 30 10,474 31 9,543 58,924 7,623 34 13,640 60,000 52,151 86,205 90,352 9,000 24 83,031 10 84,553 8 6,644 17 12,378 40,000 77,402 6,000 17 11,294 9,569 72,069 10,929 9,082 51,035 57,870 7,373 6,316 20,000 3,000 1,044 4,962 233 437 870 1,108 2,349 6,314 310 1,348 0 5,916 5,940 5,732 0 1,220 1,265 1,193 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Internet Downloads Mobile Digital Contents Others Internet Downloads Mobile Digital Contents Others ●Composition of Recorded Music ●Composition of Domestic and ●Composition of Digital Music by Format in 2006—Value Basis International Recorded Music in 2006— Delivery by Format in 2006— Value Basis Value Basis Others Internet Downloads 1% Music Videos 9% 14% International 24% Audio Domestic Mobile Digital Contents 86% 76% 90% 2 RIAJ Yearbook 2007 ●Production of Recorded Music in 2006 Units Share vs. prev. yr Value Share vs. prev. yr Item (thousands) (%) (%) (millions of yen) (%) (%) D. 1,502 1 85 339 0 84 3" CDs I. 191 0 105 45 0 220 T. 1,693 1 87 383 0 90 D. 65,417 22 105 50,144 14 105 Singles 5" CDs I. 443 0 69 320 0 68
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