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Content Industry Current Status and Direction of Future Development

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Content Industry Current Status and Direction of Future Development Content Industry Current Status and Direction of Future Development April, 2016 Media and Content Industry Division Commerce and Information Policy Bureau Ministry of Economy, Trade and Industry JAPAN 1 I. Current status of Japanese Content Current status of Japan’s content industry 2 The content industry deals with production and distribution of videos (movies, animation, TV programs), music, games, books, etc. As Japanese content is highly evaluated overseas as a part of “Cool Japan”, Japan’s content industry has great potential to penetrate foreign markets further. The market size of Japan’s content industry is around JPY 12 trillion, which is second only to the USA (2013). Currently, the growth rate is moving sideways due to the decreasing domestic population. For sustainable growth of Japan’s content industry, it is important to gain profits from foreign markets by taking advantage of Japanese content value. Outline of the content market in Japan Content market of major nations Videos Music/Audio Games Publication/Newspaper （Unit：US$B） JPY 4.5 Trillion JPY 1.3 Trillion JPY 1.6 Trillion JPY 4.6 Trillion 700 Asia Pacific Games 600 Video Packages Audio Packages Books Packages USA JPY 0.5 T JPY 0.4 T JPY 0.8 T JPY 0.2 T 500 Movies Karaoke Online Games Magazines JPY 0.2 T JPY 0.5 T JPY 0.9 T JPY 1.1 T 400 Broadcasting Performance Sales Mobile Games Free Papers 300 JPY 3.5 T JPY 0.2 T JPY 0.1 T JPY 0.2 T Japan Radio-related 200 Others Arcade Games Newspaper Services （online distribution, JPY 0.4 T JPY 1.5 T China JPY 0.1 T theatrical shows） 100 JPY 0.3 T Korea Mobile Phones Others India & Internet JPY 1.0 T 0 JPY 0.1 T 2007 2008 2009 2010 2011 2012 2013 2014 2015 PWC ”Global Entertainment and Media Outlook:2012-2016” Digital Content Association of Japan “Digital Content White Paper 2015” Potential of Japanese Content 3 Popularity of the content of Japan, Korea, USA and Europe in major Asian cities FY Which countries’ Which countries’ Which countries’ animation and comics are Which countries’ drama is familiar? movies are familiar? familiar? music is familiar? Taiwan Hong Kong Shanghai Bangkok Jakarta Singapore Japan USA & Europe Ho Chi Minh Mumbai Korea 2015.2 Sales ratio of Japanese content in foreign markets 4 Total sales ratio of Japanese content in foreign markets is around 2.5%, $13.8billion. Sales ratio of Japanese content is different in each sector. Manga > Game > Character Merchandise > Animation > Movie, Music, Broadcast Size of foreign content market and sales ratio of Japanese content ( Unit： US$ Billion) 2.5% ( 13.8) Breakdown 19.3% ( 11.0) 0.1% ( 0.1) 0.0% (0.1 ) Game Movie (57) (57) 0.1% ( 0.0) 1.4% ( 0.2) Total (550) Broadcast (385) Music Animation (17) (17) 24.1% 7.9% ( 0.9) ( 1.5) ： Size of foreign market Character Manga (11) (6) ：Sales of Japanese content Merchandise Research by A.T.Kearney based on PwC Global Entertainment and Media Outlook: 2014-2018, www.pwc.com/outlook, etc. （Reference）Animation 5 Unit： JPY hundred million 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total 1,366 1,406 2,084 2,232 2,120 1,872 1,812 1,457 1,488 1,532 1,643 1,834 1,847 Sales Income from 224 253 290 313 312 268 248 153 172 160 144 169 195 Overseas 2,500 2,232 2,084 2,120 2,000 1,872 1,812 1,834 1,847 1,643 1,532 1,457 1,488 1,500 1,366 1,406 1,000 500 290 313 312 224 253 268 248 153 172 160 144 169 195 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Sales: Estimated total sales of all anime-production companies. 市場規模 海外収入 Income from Overseas : Overseas income from video sales, license Total Sales Income from Overseas fees and so on. Source： “Animation Industry Report 2015”, The Association of Japanese Animation （Reference） Video game software 6 Unit: hundred million yen 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Shipment Value 4,729 5,377 5,669 5,628 5,779 5,174 4,747 4,299 4,685 4,871 6,742 8,486 10,240 7,586 6,706 5,309 4,244 14,306 15,596 （domestic＋foreign） Foreign Shipment 1,227 1,478 2,141 2,343 2,848 2,532 2,255 1,993 2,327 2,528 3,629 5,600 7,230 5,061 4,115 2,930 2,042 12,341 13,747 Value Unit：hundred million yen 18,000 15,596 16,000 14,306 13,747 14,000 12,341 12,000 10,240 10,000 8,486 7,586 8,000 7,230 6,742 6,706 5,669 5,628 5,779 5,600 6,000 5,377 5,174 5,061 5,309 4,729 4,747 4,685 4,871 4,299 4,115 4,244 3,629 4,000 2,848 2,930 2,343 2,532 2,528 2,141 2,255 1,993 2,327 2,042 1,478 2,000 1,227 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 出荷額（国内＋海外）Shipment Value 海外出荷額Foreign Shipment Value (domestic＋foreign) * From 2013, research method was changed. Source： “White Paper of Game Industry”, CESA （Reference）Movies 7 Unit： JPY hundred million 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Sales 1709 2002 1968 2033 2109 1981 2029 1984 1948 2060 2207 1812 1952 1942 2070 Income from 71 97 84 84 73 87 77 79 85 68 79 69 64 78 91 Overseas 2500 2207 2109 2060 2,070 2002 2033 2029 1968 1981 1984 1948 1952 1,942 2000 1812 1709 1500 1000 500 71 97 84 84 73 87 77 79 85 68 79 69 64 78 91 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Income from Overseas : The income that the companies related to the Motion 市場規模Total 輸出額Income Picture Producers Association of Japan can get from the rights related to Sales from Japanese movie such as the rights of distribution, screen, remake, broadcast, Overseas secondary use and merchandising in foreign countries. Income from Overseas: 1USD= 120JPY Source：Motion Picture Producers Association of Japan, Inc. 8 II. Policies for the Content Industry “Cool Japan” Strategy 9 The Cool Japan Strategy aims to capture growing demand from emerging countries and activate Japan’s economic growth (reinforcing business activities and creating jobs), by turning the appeal of Japanese culture and lifestyle, not only animation, manga, drama, music, and other content but also Japanese “food”, “clothing” and “shelter”, into value-added. For the above purposes, overseas demand should be captured under the government initiative in the following three stages: (1) creating a Japanese boom in overseas markets by promoting Japanese appeal (2) selling relevant products and services in overseas markets (3) encouraging foreign tourists and business persons to purchase products and services in Japan by cooperating with Japan’s tourism policy. (1) (2) (3) Creating a Selling in overseas Purchasing Japanese boom markets in Japan Effectively communicating Building platforms Encouraging foreigners the appeal of Japan for earning locally to come to Japan Policies for Japan’s content industry conducted by METI 10 Support for Distribution ①Localization and Promotion Support（J-LOP） Supporting localization (adding subtitles, dubbing, etc.) and promotion of Japanese content to foreign markets. ②CoFesta Holding “CoFesta”, the combination of various content-related events, to appeal Japanese content. ③Cool Japan Fund Supporting business activities aiming at promoting Japanese unique products, services and creativity in overseas market. ④Asia Content Business Summit (ACBS) Holding the international conference combining public and private sectors of Asian countries/regions to discuss common issues of each content industry and to find solutions together. ⑤Anti-piracy Measures Promoting anti-piracy measures by collaborating with the Content Overseas Distribution Association (CODA). Support for Marketing ⑥Ambassadors by international students Promoting Japanese content to foreign countries through international students who understand and love Japanese culture and content. Maintaining Business Platform ⑦Development of Human Resources for Producer Subsidizing the study in foreign film schools and conducting training at foreign private companies to produce experts in the content industry. ⑧Strategy for Content Technology Promoting and cultivating digital content technology. ①J-LOP: Content Localization and Promotion Support 11 1. Localization support Television Channel Animation Digital Comic “Channel JAPAN” “WAKUWAKU JAPAN” “Chibi Maruko chan” “Doraemon” Distribution: Asia region Distribution: Indonesia Distribution: China Distribution: English-speaking countries Nikkei-TBS Smart Media SKY Perfect JSAT Corporation Nippon Animation International Fujiko F. Fujio Production 2. Promotion support Sales Promotion Trade Fairs Events Festival De Cannes Tokyo Girls Collection Content Trade Fairs（BtoB, BtoC) Doraemon x Home Electronics JAPAN EXPO ・MIPTV, MIPCOM (France) ・AFM : American Film Market (USA) ・AFA : Animation Festival Asia (Singapore, Indonesia) ②CoFesta (Japan International Content Festival) 12 CoFesta is the largest comprehensive content festival in Japan. Events connected with the content industry, including games, animation, comics (manga), characters, broadcast, music and films, and content-related industrial events like fashion and design, are held in cooperation with each other. Various segments of the content industry work together to promote their content overseas with powerful public relations. Past CoFesta Events CoFesta 2015 Official Events ［All events］ ［TIFFCOM] CoFesta2008 Participants: Contract amount: Official event (15), Partner event (10), 820,000 USD19 million Original event (11) CoFesta2009 Official event (18), Partner event (16), Participants: Contract amount: Original event (6) 1 million USD45 million CoFesta2010 Official event (17), Partner event (9), Participants: Contract amount: Original event (2) 1.3 million USD38 million CoFesta2011 Participants: Official event (18), Partner event (14), Contract amount: 2.3 million Original event (2) USD45 million CoFesta2012 Participants: Contract amount: Official event (18), Partner event (12) 1.80 million USD52 million CoFesta2013 Participants: Contract amount: Official event (17), Partner event (11) 2.0 million USD65 million CoFesta2014 Participants: Contract amount: Official event (18), Partner event (15) 1.34 million USD51 million ②International Content Fair “Japan Content Showcase (JCS)” 13 Japan Content Showcase (JCS) is a comprehensive international content fair integrating films, broadcasts (TV and other programs), music and animation.
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