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The Impact of Digital Distribution on the Japanese Music Market

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COVER STORY • 7 The Impact of Digital Distribution on the Japanese Music Market By Onouchi Megumi USICAL performances and listen- been fused with music distribution via tunes, or to use different melodies to M ing styles have been changed over digital networks, and musical styles are identify each friend that is calling. It is a the decades in line with development of about to undergo yet another transfor- new development in music history to technologies. At one time, the only way mation – to a style in which people use songs as a fashion accessory. to listen to music was to be present dur- enjoy music via cell phone. Up until two years ago, melody ring- ing an actual performance. Then print- tones consisted of only certain hits and ing of musical scores enabled different URRENTLY, 68.7% of the standard songs that had been recreated audiences and performers to enjoy same C Japanese population (83 million using electronic sounds, which were dis- music at different times and places. people) are cell phone subscribers. It tinguished from the original recordings In 1877, Thomas Edison invented the seems almost everyone in the country in CD format. But users were not satis- recording systems. This gave rise to an has a cell phone as a mobile digital tool. fied with these electronic tones, and the industrial system where musical record- Two or three out of every 10 people lis- music creators and copyright holders of ings are purchased and listened to on ten to headphone stereo devices during the original music recordings were not playback machines, and people any- their morning and evening rail com- happy either, as only the composers were where in the world can enjoy the same mutes. By contrast, three to five out of being compensated under this form of performance whenever they like. While every 10 people send and check e-mail song distribution. In 2002 the carrier these industrial systems and technologies or play games with their phones. Cell KDDI began its “Chaku-Uta” (song ring- originated mainly in Europe and North phones in Japan are not only used for tone) services, which enables users to America, technology and products from telephone conversations, but also for a download part of the original recordings, Japan have also played a major role in wide range of functions, including e- in cooperation with Label Mobile Inc. the transformation of music worldwide. mail, surfing websites, e-commerce, tak- KDDI now provides about 100,000 songs, In the late 1970s and 1980s, DJs in ing photos, exchanging still and video and a total of 170 million copies have dance clubs used turntables to play rap images, playing games, as well as map been downloaded so far. In 2004 the and hip-hop music, and developed the and local information services. “Chaku-uta Full” service was launched, scratch and remix methods for music Around 1998, when the mobile phone offering complete songs, and two million performance. The concept of using a usage rate was about 40%, it became copies were downloaded in three months. playback device as an instrument to per- popular for users to input their favorite This has promoted a shift in the billing form music was an important milestone melodies using the phone push buttons method for IP access to unlimited use for in music history. Most of the record as a replacement for the regular ring- a fixed monthly fee. Cell phones with players used at that time were tone. Users have previously been able to digital audio player functions have also “Technics” turntables from Panasonic choose from several different chimes or been released. While using ringtone with turning speed-control systems, and jingles based on popular songs instead of melodies as an accessory, users also can even today Japanese-made turntables are the standard ringtone. However, since download and listen to music for their standard equipment for DJs. the three Japanese mobile phone carriers own personal enjoyment (Table 1). Launched in 1979, the Sony head- launched digital IP services in 1999, the In addition to services operated jointly phone stereo “Walkman” led to a major downloading of digital ring melodies with record companies, Microsoft, por- change in the way that people listen to (Chaku-Melo or melody ringtones) has tal sites, carriers, mobile phone service music. Audio equipment up to that become widely popular. Phone carriers companies and music information ser- time was based on the concept of play- handle everything from phone sales to vice companies have all entered the ing back music in a certain place. service subscription and fee collection, online music distribution market in However, through the development of a and this has helped to accelerate the Japan, creating intense competition in small portable cassette tape player with popularization of digital ring melodies. 2004 (Table 2). However, the biggest headphones, a new way to enjoy music Today, there are innumerable sites offer- rival to these services is music distribu- was invented that allowed listeners to ing melody ringtone services, with prices tion via mobile phones. move around while enjoying music pri- ranging from ¥15 per song, to ¥300 per The Japanese music market consists vately inside their own heads. This month for unlimited use, with some not only of fans listening to music on proved to be a huge hit among young sites even offering free downloads. personal headphone stereo devices, but people all over the world. The purpose of melody ringtones for also of those who enjoy music as a Today in Japan, this personal and users is not to listen to music, but to mobile phone accessory, as well as those mobile style of listening to music has personalize the ringtone with favorite who would rather sing songs than listen 22 JAPAN SPOTLIGHT • May / June 2005 COVER STORY • 7 Table 1 Mobile Phone Music Distribution Services. Researched by Fukagawa Yasuto Number of Songs Carrier and Service / Status of Music Distribution Service Service Provider Service Launch Content Price Per Song Data Format Offered • ¥100 per month / up to 7 songs Giga Networks Sept. 1999 12,000 Melody Ringtone• ¥200 per month / up to 15 songs MLT • ¥300 per month / up to 25 songs NTT DoCoMo • Purchasing points for ¥31, ¥105, or ¥315 Infocom Oct. 21, 2002 Melody Ringtone and redeeming them for songs • ¥310 per month / unlimited songs March 1, 2000 20,000 Melody Ringtone Yamaha ¥315 per month / up to 21 songs 3GPP Number of Melody Ringtone and Chaku-Uta sites: 177 June 21, 2004 2,000 Chaku-Uta Chaku-Uta service launch: Feb. 6, 2004 20,000 Melody Ringtone MIDI Chaku-Uta data format: AAC and AMR Dwango June 2001 1,600 ¥315 per month / 30 points (as of Feb. 2005) Chaku-Uta Mp3 • ¥315 per month / 315 points 6,000 (initially) Label Mobile Feb. 6, 2004 Chaku-Uta • ¥525 per month / 525 points Infocom Melody Ringtone • ¥15 to ¥25 per song au (KDDI) • ¥300 per month / unlimited songs Chaku-Uta Chaku-Uta Full March 1, 2000 Melody Ringtone Yamaha 20,000 • ¥300 per month / up to 20 songs AAC Number of sites: 227 Number of sites: 10 Jan. 16, 2004 2,000 Chaku-Uta • ¥78 or ¥105 per song Service launch: Nov. 18, 2002 Service launch: Nov. 19, 2004 20,000 Melody Ringtone MIDI Number of songs offered: About 100,000 Number of songs offered: 13,000 Dwango June 2001 1,600 ¥315 per month / 30 points Total number of downloads to date: Total number of downloads to date: (as of Feb. 2005) Chaku-Uta Mp3 171.25 million (as of Feb 2005) 2 million (as of Feb. 2005) Dec. 2002 Chaku-Uta ¥52 to ¥210 per song Label Mobile 20,000 for all Chaku-Uta HEAAC Data format: AAC Data format: HEAAC Nov. 2004 Chaku-Uta Full ¥200 to ¥300 Infocom Sept. 2000 Melody Ringtone • ¥15 to ¥25 per song Vodafone ¥300 per month / unlimited songs Sept. 2000 Melody Ringtone Yamaha 20,000 • ¥300 per month / up to 20 songs MP4 Number of Melody Ringtone and Chaku-Uta sites: Unknown April 1, 2004 2,000 Chaku-Uta • ¥210 per month / up to 10 songs Melody Ringtone service launch: Nov. 1998 20,000 Melody Ringtone MIDI (Voice guidance format) Dwango June 2001 1,600 ¥315 per month / up to 30 songs Chaku-Uta service launch: Dec. 2003 (as of Feb. 2005) Chaku-Uta Mp3 Chaku-Uta data format: AAC Label Mobile Dec. 2003 2,500 (initially) Chaku-Uta ¥52 to ¥210 per song Source: ©HUMANMEDIA Figure 1 Japanese Music Market by Table 2 Main Online Music Distribution Services in Japan Distribution Method (2003) Service Number of Songs Price Per Data Service Overview Launch Offered Song Format Launched in April 2004, and is a record label gate with the capital participation of Mora 18 companies including avex, Sony Music Entertainment, and Victor April 1, 2004 100,000 ¥210 to ¥270 ATRAC3 Entertainment. (as of Dec. 1, 2004) Started to coincide with the release of Windows Media Player 10. Songs can also 50,000 MSN Music be purchased directly through this software. Oct. 20, 2004 (initially) ¥158 to ¥367 WMA 60,000 Excite Operated by the major portal site, Excite. Users can purchase whole albums and transfer the music to a portable player that is compatible with Windows Media May 20, 2004 (as of Jan. 2005) Around ¥270 WMA Music Store Target 100,000 DRM. (by the end of 2004) 60,000 OCN MUSIC This service targets members of the OCN Internet service provider, which is managed by NTT Communications. Music can also be transferred to a portable June 7, 2004 (as of Feb.
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