RIAJ YEARBOOK 2014 The Recording Industry in Japan 2014 Contents Overview of Production of Recordings and Digital Music Sales in 2013 ........................... 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 (1957-2013) ..................................................................... 13 18. Audio Recording Catalogue Listings ........................................................................................ 14 19. Audio Recording Catalogue Listings (1971-2013) ................................................................... 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. 28th Japan Gold Disc Award 2014.......................................................................................... 18 25. Certified Million-selling Titles .................................................................................................. 20 26. Certified Million-selling Titles in 2013 ..................................................................................... 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 2013 In 2013, the total production value of recorded music (audio and music videos) decreased 13% versus the previous year to 270.5 billion yen while unit production in this segment also registered a double-digit decline with a year-on-year decrease of 15% to 247.7 million units. At the same time, sales of digital music were down 23% from the previous year to 41.7 billion yen, with the total value of recorded music and digital music sales falling 15% year-on-year to 312.1 billion yen in a reversal of the first increase in five years posted in the previous year. Audio Recordings terms of unit production and value, respectively, due to a 25% In terms of audio recordings, unit production decreased 12% to decline in unit production to 51.17 million units and a 22% 190.85 million units while performance was down 13% to decline in value to 55.1 billion yen. In contrast, music Blu-ray 198.5 billion yen on a value basis compared with the previous Discs, which are achieving steady growth, continued to post year. In addition to a year-on-year decline in results for CD strong performance with consistent market expansion as unit singles for the first time in five years following favorable production surged 43% to 5.68 million units and value performance since 2010, results for CD albums on both a unit increased 39% to 16.9 billion yen from the previous year. production and value basis fell 15% year-on-year despite signif- icant growth in the previous year. The composition of domestic Digital Music and international recorded music was 85% and 15% (versus Digital music sales decreased 23% versus the previous year to 84% and 16% in the previous year) on a value basis while the 41.7 billion yen on a value basis as a result of a 50% decline in percentage of domestic repertoire for music videos increased master ringtones and single tracks for feature phones from the further (95% and 5% both in terms of unit production and previous year. Whereas the ratio of sales via PC and smart- value compared with 93% and 7% in the previous year). The phones compared with feature phones was 35% to 65% on a percentage of domestic and international repertoire for the value basis in 2012, this turned around in 2013 with PC and total of audio recordings and music videos remained unchanged smartphones accounting for 60% and feature phones 40% from the previous year at 87% and 13% on a value basis, with (both exclude results related to “Others”). This shows that PC The Recording Industry in Japan The Recording domestic repertoire continuing to account for a high percentage. and smartphones have become key to the digital music market. Sales results via PC and smartphones were solid, with single Music Videos tracks increasing 31% and 22% and albums increasing 44% Production of music videos was down 22% versus the previous and 34% on units and value basis, respectively. In addition, the year to 56.86 million units with a value of 72.0 billion yen, rep- subscription market stood at 3.1 billion yen on a value basis, resenting a decrease of 13%. This was mainly attributable to a marking a 304% increase from the previous year. This market is significant turnaround in music DVDs, which represent 90% expanding every year and is expected to continue growing in and slightly less than 80% of the music videos segment in the future. (Millions/Billions of yen) Units vs. prev. yr Value vs. prev. yr Audio 191 88% 198.5 87% Music Videos 57 78% 72.0 87% Recorded Music (Total of Audio/Music Videos) 248 85% 270.5 87% Digital Music 216 80% 41.7 77% Total of Recorded Music and Digital Music — — 312.1 85% [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 2013 International Recorded Music in 2013 Format in 2013 — Value Basis — Value Basis — Value Basis Others 10% Master Ringtones 5% Music Videos 2% International Ringback 13% Tones Music Videos 12% 27% Albums 17% Audio Domestic 73% 87% Single Tracks 54% RIAJ Yearbook 2014 1 Overview of Production of Recordings and Digital Music Sales in 2013 ● Recorded Music — Unit Basis ● Recorded Music — Value Basis Millions of units Billions of yen 400 300 291 273 256 260 248 300 316.5 310.8 59 73 283.6 281.9 46 60 66.9 270.5 200 57 83.1 58.6 200 70.2 72.0 100 214 210 200 218 249.6 191 225.0 227.7 100 211.7 198.5 0 0 2009 2010 20112012 2013 2009 2010 2011 2012 2013 Audio Music Videos Audio Music Videos ● Digital Music — Unit Basis ● Digital Music — Value Basis Millions of units Billions of yen 468 91.0 2 441 86.0 10 2.2 400 2 80 3.4 2.1 2 9 3.1 3.4 3 367 3.2 72.0 185 5 2.1 9 300 182 60 3.1 3 272 3.8 54.3 164 3 2.4 5 56.0 53.9 200 216 40 1.7 41.7 112 5 0 45.5 5.2 4.2 113 3 1.0 135 7 6.9 120 33.6 100 99 20 9.8 10.1 157 79 22.6 64 8.8 131 87 16.4 4.9 13.3 6.9 0 45 22 0 8.7 4.6 2.0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Master Ringtones Ringback Tones Single Tracks Master Ringtones Ringback Tones Single Tracks Albums Music Videos Others Albums Music Videos Others The Recording Industry in