RIAJ YEARBOOK 2015 Statistics Trends The Recording Industry in Japan 2015 Contents Overview of Production of Recordings and Digital Music Sales in 2014 ........................... 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. Recorded Music — Production on Unit Basis .......................................................................... 10 15. Recorded Music — Production on Value Basis ....................................................................... 11 16. Newly Released Audio Recordings .......................................................................................... 12 17. Newly Released Audio Recordings (1957-2014) ..................................................................... 13 18. Audio Recording Catalogue Listings ........................................................................................ 14 19. Audio Recording Catalogue Listings (1971-2014) ................................................................... 15 20. Newly Released Music Videos ................................................................................................ 16 21. Music Video Catalogue Listings .............................................................................................. 16 22. Number of Domestic Debut Artists .......................................................................................... 17 23. Number of Record Rental Shops ............................................................................................. 17 Related Data ........................................................................................................................................... 18 24. 29th Japan Gold Disc Award 2015.......................................................................................... 18 25. Certified Million-selling Titles .................................................................................................. 20 26. Certified Million-selling Titles in 2014 ..................................................................................... 21 27. Amount Collected for Sound Recordings and Others ............................................................... 22 28. 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. 3. The categories of digital music sales have been changed since 2013. Overview of Production of Recordings and Digital Music Sales in 2014 In 2014, the total production value of recorded music (audio and music videos) decreased 6% versus the previous year to 254.2 billion yen while unit production posted a year-on-year decline of 9% to 226 million units. In contrast, sales of digital music were up 5% from the previous year to 43.7 billion yen, marking the first year-on-year increase in five years since 2009. As a result, the production value of recorded music and digital music sales decreased 5% to 297.9 billion yen. Audio Recordings million units and 11% to 49.1 billion yen, respectively, while In terms of audio recordings, unit production declined 10% to unit production of music Blu-ray Discs rose 16% year-on-year 172.31 million units and decreased 6% to 186.4 billion yen on to 6.60 million units and value rose 10% to 18.6 billion yen. a value basis from the previous year. Specifically, unit produc- As a result, the percentage of music DVDs and music Blu-ray tion and value of CD albums declined 10% to 114.93 million Discs was 88% and 12% (versus 90% and 10% in the previous units and 7% to 142.3 billion yen, respectively, while unit pro- year) on a unit basis and 73% and 27% (versus 76% and 24% duction and value of CD singles also declined 8% to 55.46 in the previous year) in terms of value as the scale of the market million units and 3% to 41.8 billion yen, respectively, versus for music Blu-ray Discs steadily is expanding. Although the per- the previous year. Unit production and value of international centage for music Blu-ray Discs is rising, this increase has been recorded music rose from the previous year. Moreover, unit unable to cover the decline in music DVDs and therefore the production and value of vinyl discs jumped 49% and 66%, total for both unit production and value for music DVDs respectively. The composition of domestic and international declined from the previous year. recorded music was 84% and 16% (versus 85% and 15% in the previous year) on a value basis, while the percentage of Digital Music domestic and international repertoire for music videos in terms Digital music sales increased 5% to 43.7 billion yen on a value of both unit production and value was 96% and 4% (versus basis, the first year-on-year increase in five years since 2009, 95% and 5% in the previous year). Although these figures thanks to the contribution of sales via PC and smartphones, show an uptrend in the percentage of domestic repertoire, the which continue to perform favorably. For sales via PC and smart- Industry in Japan The Recording percentage of domestic repertoire versus the total for recorded phones, both single tracks and albums posted year-on-year music (the total of audio recordings and music videos) remained double-digit growth, as single tracks rose 19% on a unit basis unchanged from the previous year as well as the year before and 18% in terms of value while albums increased 17% on a last at 87% and 13% on a value basis. unit basis and 21% in terms of value. The ratio of sales via PC and smartphones compared with feature phones changed from Music Videos 60% and 40% in 2013 to 76% and 24% (both exclude results Production of music videos declined to 53.68 million units with related to “Others”), which shows that the market for sales via a value of 67.7 billion yen, representing a 6% decrease on both PCs and smartphones is expanding. The subscription market also a unit and value basis from the previous year. Specifically, unit is expanding every year and stood at 7.9 billion yen on a value production and value of music DVDs declined 8% to 47.07 basis, marking an increase of 157% from the previous year. (Millions/Billions of yen) Units vs. prev. yr Value vs. prev. yr Audio 172 90% 186.4 94% Music Videos 54 94% 67.7 94% Recorded Music (Total of Audio/Music Videos) 226 91% 254.2 94% Digital Music 197 91% 43.7 105% Total of Recorded Music and Digital Music — — 297.9 95% [Reference] Composition of Recorded Music and Digital Music — Value Basis ● Composition of Recorded Music ● Composition of Domestic and ● Composition of Digital Music by by Format in 2014 International Recorded Music in 2014 Format in 2014 — Value Basis — Value Basis — Value Basis Master Ringtones 3% Music Videos Ringback International 2% Others Tones 13% 21% Music Videos 9% 27% Albums Audio Domestic 19% 73% 87% Single Tracks 47% RIAJ Yearbook 2015 1 Overview of Production of Recordings and Digital Music Sales in 2014 ● Recorded Music — Unit Basis ● Recorded Music — Value Basis Millions of units Billions of yen 400 300 291 256 260 310.8 73 248 300 46 60 226 283.6 281.9 270.5 200 57 83.1 254.2 54 58.6 70.2 72.0 200 67.7 218 100 210 200 225.0 227.7 191 172 100 211.7 198.5 186.4 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Audio Music Videos Audio Music Videos ● Digital Music — Unit Basis ● Digital Music — Value Basis Millions of units Billions of yen 441 86.0 400 2 80 2.1 9 3.4 3 367 3.2 72.0 5 2.1 9 300 182 60 3.1 3 272 3.8 54.3 164 3 2.4 5 216 53.9 1.7 41.7 43.7 200 5 197 40 45.5 5.2 4.2 9.2 113 3 1.0 135 7 2 6.9 0.7 33.6 8.4 99 120