June 20, 2007

Current Status of Content Production and Distribution in Japan Released

With a market scale of 11.3 trillion yen, Japan's content market is staying on the upward trend due to the penetration of network delivery
MIC has conducted research and analysis on content (media software) production and distribution via various media. For its most recent survey, it conducted additional research into the current status of terrestrial TV program exports as well. MIC has now compiled and released the results of its research and analysis.

<Key Points>
1. The scale of the content (media software) market in 2005 was 11.2947 trillion yen.
The content market, particularly the video market, stayed on the upward trend (up 2.1%, or 232 billion yen, from 2004).
Multiple use (secondary use) of content continued to show strong growth, expanding its share in the entire market to over 20%.
The network distribution market continued to experience rapid expansion (up 16.9%, or 116.6 billion yen, from 2004).


The market continued to grow in 2005, staying on the upward trend since 2003.
2000: 10.9214 trillion yen
2002: 10.8167 trillion yen
2003: 10.8604 trillion yen (0.4% above the previous year)
2004: 11.0627 trillion yen (1.9% above the previous year)
2005: 11.2947 trillion yen (2.1% above the previous year)

Video content (TV programs, films, etc.) as well as music content (music, radio programs, etc.) have expanded.
Video: 5.3090 trillion yen (up 4.6% from 2004)
Audio: 0.9630 trillion yen (up 2.0% from 2004)
Text: 5.0227 trillion yen (down 0.4% from 2004)

Secondary use of content (multiple use market) significantly grew by 8.7%, exceeding 20% of the entire content market.
Primary distribution market: 8.8967 trillion yen (0.4% above the previous year)
Multiple use market: 2.3980 trillion yen (8.7% above the previous year)

Network delivery using PCs and mobile phones continued two-digit growth, expanding to 7% of the entire content market in 2005.
2003: 536.8 billion yen (34.9% above the previous year)
2004: 690.1 billion yen (28.6% above the previous year)
2005: 806.7 billion yen (16.9% above the previous year)

Content production cost leveled off at 3.9135 trillion yen (down 0.1% from 2004). It is broken down by content type as follows:
Video: 2.1991 trillion yen (down 1.0% from 2004)
Audio: 0.3207 trillion yen (down 2.5% from 2004)
Text: 1.3938 trillion yen (up 1.9% from 2004)

2. About three-fourths of Internet users (with PCs or mobile phones) have used paid content. The type of paid content that boasted the highest spending per person was video.

Internet users who have used paid content accounted for 76.0%. Almost half of them have used the paid content with both PCs and mobile phones.

(Internet users who have experienced paid content)
With both PCs and mobile phones: 36.8%
Only with mobile phones: 26.9%
Only with PCs: 12.3%

Internet users spent an average of 1,299 yen on paid content per month. The most used content type was video, followed by audio and text. PC users spent 1,757 yen while mobile phone users spent 535 yen.
Video: 723 yen
Audio: 448 yen
Text: 129 yen

3. The scale of the terrestrial TV program export market was 10 billion yen. Animation, drama and variety programs held the dominant share.

The export amount for terrestrial TV programs is likely to reach 10 billion yen in 2006.

Export of Japan's terrestrial TV programs (Estimate)
  2004 2005 2006 (Estimate)
Export amount 8.2-8.7 billion yen 8.3-8.8 billion yen 9.5-10.0 billion yen

Major genres of the exported programs were animation, drama and variety (on an amount basis in 2005).
Animation: 31.8%
Drama: 30.2%
Variety: 20.0%

The key export destination was Asia, which accounted for 60% (on an amount basis in 2005).
Asia: 60.3%
North America: 18.3%
Europe: 16.9%

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http://www.soumu.go.jp/joho_tsusin/eng/contact.html

International Policy Division,
International Affairs Department
Telecommunications Bureau, MIC
TEL: +81 3 5253 5920 / FAX: +81 3 5253 5924