Record industry to be integrated into 3 majors like Japanese Bank industry was
finally integrated into 3 majors:
1 Japan: Sony Music Group, AVEX group, Universal Group
2 US, EU: Sony Music group, Universal group, Warner/EMI group
Major / large scale artists/celebrity management companies tend to have more
power, enabling them to develop new artists, create new CD, as well as initiating
effective promotional scheme directly with useful media, distributors, etc.
They are also likely to get “master rights” as possible as they can.
3 majors, such as; Sony, AVEX, Universal to get all relevant rights belonging to
artists at the initial contract stage, plus enhancing their own artists management
New types of companies to enter in “music world” as effective marketing opportunities, such as;
* 2 nd ranked mobile operator has established their own artists firm as JV with one of
major artists management company.
** One of growing game company has just bought Columbia Music.
What will happen next? COZY MIZOGUCHI , All rights reserved
New trend *based on my personal assumption *There are some which we can already see. 1 BUT, still / more, ability + power to develop new artists + create new songs/genre are critical / siginificant. 2 In order to get potential new comers, “Scalability” as Majors is more important for appealing actual evidence in producing hit artists/songs to artists firms. *Probably, we will have 2 ways from now more on in either major, and/or small but having unique artists. 3 “FAN Club” to become as reliable revenue stream by web, especially Mobile / Smart-phone; Digital contents are profitable business, because we don’t have to consider stocks, distribution. 4 Live to be more prioritized as both; 1)effective communication opportunity with Fans, 2)selling CD, artists items directly, etc. 5 In Japan, CD, DVD packing to be survived at some level, due to; 1)Pricing remaining policy enacted by law 2)Premium DVD attached CD are really supported by Fans, among female. What will be required to Record company from now on? COZY MIZOGUCHI , All rights reserved
Japanese Mobile Download Trend Number of Mobile Download Entire Japanese mobile download market shows grim; Ring-tune = 70% size to compared with FY07, Full-track = showing sudden slowdown 0 10 20 30 40 50 60 70 0 50 100 150 200 250 300 （ million ） Last year comparison (%) Ring-tune Full track ＦＹ０８ ＦＹ０７ ＦＹ０６ １Ｑ ２Ｑ ３Ｑ ４Ｑ ＦＹ０５ １Ｑ ２Ｑ ３Ｑ ４Ｑ １Ｑ ２Ｑ ４Ｑ Resource from RIAJ, 08 COZY MIZOGUCHI , All rights reserved
Sluggish sales situation of Mobile Download in Japan
1 Ended special procurement demands at Sep / FY07 *Details attached #1.
2 Increasing illegal download markets;
- assumed 70billion in illegal mobile download according to the result of survey by RIAJ, 08.
3 Mobile users to tend to buy only Full-track;
- only 17% of monthly users buy both Ring-tune + Full-track according to Label Mobile, 08.
4 Price Competitiveness towards PC download;
- Average price for Mobile Full-track = 400 vs. 200 in PC download
5 i-Pod shares in Japan is quite larger with more than 50%;
- Even mobile download users tend to have i-Pod, other MP3 players. *Details attached #2.
6 Previous mobile users tend to shift their download activity from mobile to PC in accordance with their growing up + reasonable price of PC download, having MP3, etc. *Details attached #3 + #4.
Major reason / backgrounds for current sales performance COZY MIZOGUCHI , All rights reserved
Shares about Japanese MP3 Players Maker % by units % by Amounts APPLE SONY TOSHIBA PANASONIC KENWOOD COWON CREATIVE 58.7 23.3 1.1 0.7 0.2 0.3 0.1 54.0 26.7 1.8 0.8 0.5 0.3 0.2 Result of survey by BCN, 08 APPLE, SONY are 2 major dominant players in Japanese MP3 market. attached #2 COZY MIZOGUCHI , All rights reserved
Japanese Population of Distribution “ Past” Youngsters = “Previous” mobile main users grow up, shifting their behavior for music download from mobile to PC, presumably. Size of current younger bracket is relatively smaller than “Past” youngsters. attached #3 COZY MIZOGUCHI , All rights reserved
Growth of Japanese PC Download Simulation based on actual PC download performance / trends by RIAJ attached #4 - # of download in PC is up from 23,500k in Q1/FY07 to 25,000k in Q2/FY08. COZY MIZOGUCHI , All rights reserved 0 5,000k 10,000k 15,000k 20,000k 25,000k 30,000k 35,000k 40,000k 0% 5% 10% 15% 20% 25% 30% 35% Actual Simulation % of PC download # of Download ＦＹ０７ ＦＹ０８ ＦＹ０９ １ Ｑ ２ Ｑ ３ Ｑ ４ Ｑ １ Ｑ ２ Ｑ ３ Ｑ ４ Ｑ １ Ｑ ２ Ｑ ３ Ｑ ４ Ｑ Mobile Full-track PC Download