=====================================================================<br> J@pan Inc Magazine Presents:<br> M U S I C M E D I A W A T C H<br> Commentary on Japan's music technology news<br>=====================================================================<br>
<br>Issue No. 120<br><br>Tokyo<br><br> ----------------------------------------------------------<br><br>CONTENTS<br><br>++ FEATURE: <br>RIAJ Releases 2007 Figures, Mobile Still Going Strong<br><br>++ EVENT: AMAZIA: ASIA'S ULTIMATE ENTERTAINMENT CONTENT MARKET<br>
<br>++ NOTEWORTHY NEWS: <br> ** Google settles with JRC over YouTube copyright royalties<br> ** DeNA puts out CD of winners from mobile auditions<br> ** Roland releases latest model in portable recorder series<br> ** RIAJ starts new TV campaign to combat mobile piracy<br>
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<br>On April 3, the Record Industry Association of Japan officially <br>released the 'RIAJ Yearbook 2008,' its annual roundup of sales <br>figures, statistics and trends from the previous year. As <br>expected, CD sales continued to decrease for the ninth straight <br>
year. However, total recorded music sales are up for the third <br>year running, thanks to strong growth from the digital sector - <br>or more specifically from the mobile sector, which still <br>accounts for the bulk of digital music sales in Japan.<br>
<br>Total music sales for 2007 in Japan came to JPY 466 billion <br>(US $4.66 billion). While CD/DVD sales declined 4% from the <br>previous year, digital downloads jumped up 41% to JPY 75.5 <br>billion (US $755 million), comprising 16% of all music sold <br>
in Japan. Mobile downloads accounted for JPY 68 billion <br>(US $680 million), more than 90% of the total figure for digital<br>sales. Within the mobile sector, full-track downloads showed the<br>strongest growth, rising 91% over the previous year.<br>
<br>So why, despite the popularity of the iPod and nearly three <br>years since the launch of the iTunes Music Store here, does <br>mobile still continue to so thoroughly dominate digital <br>downloads in Japan? <br><br>One of the main reasons is that the youth market here has long <br>
been accustomed to using their mobile phones to find music, and <br>sees no reason to change. The majority of this group was first <br>introduced to digital music through the polyphonic ringtone boom<br>back in 2000. Now in their teens and twenties, mobile is still <br>
the fastest and most natural way for them to find new music. <br>Faster networks, attractive handsets and flat-rate data plans <br>have all made it even easier to download large amounts of music <br>to the phone. In addition, the mobile sites run by Label Mobile <br>
(a joint venture of major record labels) have a far more <br>complete catalog of J-Pop music than any one PC-based online <br>music store.<br><br>Of course, the iPod has also proven to be highly popular in <br>Japan, and leads the market here for dedicated digital music <br>
players. However, this does not seem to have translated into <br>significant download sales for the iTunes Music Store in Japan, <br>or any other online store for that matter. One possible reason <br>is that iPod users here tend to be a bit older than the teens <br>
and twenty-somethings who use their phones for music. This older<br>iPod group would much rather just go to one of the many large CD<br>rental chain stores, rent the CD and rip the songs onto their <br>PCs.<br><br>Interestingly, the problems associated with P2P file-sharing <br>
services have never been as big in Japan as they have been in <br>other countries. This is due in part to the fact that the main <br>Japanese-language P2P application (called 'Winny') acquired an <br>early reputation for viruses, worms and spyware, and its <br>
developer was arrested and later fined JPY 1.5 million (US <br>$15,000). Unlike in most other countries, the decline in CD <br>sales has been caused not by illegal file sharing but by the <br>rise of mobile phone downloads - first in the form of polyphonic<br>
ringtones, then progressing to mastertones and full-track songs.<br>Fortunately for the Japanese recording industry, consumers have <br>paid for these downloads, and the decline in physical sales has <br>largely been made up for in mobile sales.<br>
<br>Over the past two years, however, piracy has emerged as a major <br>threat in Japan as well, in the form of mobile music file <br>sharing. The RIAJ estimates that more than 400 million mobile <br>tracks were illegally downloaded in Japan last year, mostly from<br>
anonymous BBS-type mobile sites. Piracy is mentioned as a major <br>problem in the RIAJ's annual report for 2008, and the <br>organization has recently embarked on a series of TV ad <br>campaigns featuring major Japanese artists warning their fans <br>
not to use illegal mobile sites for downloading music. Because <br>mobile has emerged as such a key part of the Japanese music <br>industry, we can expect to hear more a lot more about this issue<br>over the next year or so.<br>
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-----------------------------------------------------------<br><br><br>++ NOTEWORTHY NEWS<br><br>** Google reaches agreement with JRC over YouTube copyright <br>royalties<br>In brief: On March 27, YouTube's parent company Google announced<br>
it had signed a deal with Japan Rights Clearance (JRC), in which<br>it will pay an undisclosed royalty for videos posted on YouTube <br>of singers covering popular Japanese songs. The contract will <br>cover the use of about 5,000 songs from the catalog managed by <br>
JRC.<br>Source:<br><a href="http://tinyurl.com/2kp79w">http://tinyurl.com/2kp79w</a><br><br>** DeNA puts out CD of winners from mobile auditions<br>In brief: DeNA, which runs the popular Mobagei Town game/SNS <br>site, began selling a compilation CD featuring songs from 11 <br>
new artists who passed the auditions held on the 'Music <br>Creators' corner of the site, where amateur artists are <br>encouraged to submit their work. The new CD is called 'Mobagei <br>Music Creators Vol. 1', and will sell for 1,500 yen (US$15). <br>
Source:<br><a href="http://tinyurl.com/5afbf8">http://tinyurl.com/5afbf8</a><br><br>** Roland releases latest model in portable recorder series<br>In brief: On March 28, Roland Corporation began selling the R-09<br>HR portable digital recorder, the latest in the company's series<br>
of high-end handheld WAV/MP3 recorders. The R-09 HR features <br>24-bit 96 kHz sound recording, a larger display screen and <br>improved usability. Pricing is open, but expected to be around <br>40,000 yen (US$400).<br>Source:<br>
<a href="http://www.roland.co.jp/news/0373.html">http://www.roland.co.jp/news/0373.html</a><br><br>** RIAJ starts new TV campaign to combat mobile piracy<br>In brief: On March 19, the Recording Industry Association of <br>
Japan announced the start of a new campaign aimed at reducing <br>mobile piracy. The campaign includes a new TV commercial <br>featuring popular Japanese artists such as DJ OZMA, Bonnie Pink,<br>and mihimaru GT. The RIAJ estimates that over 400 million files <br>
were downloaded illegally to Japanese mobile phones in 2007. <br>Source:<br><a href="http://www.riaj.or.jp/release/2008/pr080319.html">http://www.riaj.or.jp/release/2008/pr080319.html</a><br><br>** Logitec releases iPod karaoke microphone<br>
In brief: Tokyo-based Logitec has started selling a special <br>'karaoke microphone' for the iPod. The mic includes a 'vocal <br>cut' feature that reduces the volume of the vocal part from any <br>song stored on the user's iPod, allowing the user to perform <br>
karaoke with tracks from their own music collection. The price <br>of the microphone is open, but is expected to sell for around <br>6,000 yen (US$60).<br>Source:<br>Nikkei Sangyo Shimbun (March 17, 2008)<br><br><br>