JVC 2001 Annual Report Download - page 18

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< 16 VICTOR COMPANY OF JAPAN, LIMITED 17 >
COMPETITIVENESS STEMS FROM HIGH-QUALITY CONTENT
JVC has built a solid reputation in entertainment software in Japan. Our approximate 20%
share of the domestic music market highlights our presence, as does our approximate 15%
share of video sales in Japan. In addition, we account for 70% of such visual software products
as pre-recorded videocassettes and DVDs and 45% of CDs sold in Japan, in terms of the
volume of software distributed and handled.
Music, which accounts for around half of earnings in software operations, is positioned as
a cornerstone of earnings. We will seek to acquire master recording rights, enabling us to use
content in manifold ways. At the same time, we will raise our return on investment by nurturing
new artists and signing up popular stars. We already have a number of leading domestic
artists on our books and have produced, particularly in recent years, a string of million sellers.
This success is supported by a framework that nurtures new artists by tapping our content
development capabilities and through tightly focused marketing.
Our video operations are also designed to raise our return on investment. We are embracing
a “best-mix” strategy for international and Japanese movies, while identifying Japanese
movies that have potential for export overseas. In this way, we are locking in the high-quality
content and high profitability that will underpin our competitiveness in the networked era. By
crafting a framework for the distribution of this content through all media channels, we will
establish JVC as one of Japan’s foremost entertainment companies.
DIGITAL CONTENT & MEDIA STRATEGY—FROM DIGITAL CONVERSION TO DISTRIBUTION TO ALL MEDIA
As one of Japan’s leading owners of content, we are championing a Digital Content & Media
Strategy that encompasses all aspects of a content business from media conversion systems
that convert content into formats to match the requirements of each medium to mobile,
networked and digital broadcasting distribution businesses. This approach also targets DVDs
and D-VHS formats.
One of Japan’s foremost