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20 Victor Company of Japan, Limited
Media Business
In fiscal 2006, the tide turned even faster toward digital recordable media, and, although
the quantity of DVD recordable media sold grew, prices continued to fall. This did not
bode well for JVC’s flagship DVD-RW media, and, as a result, total sales of recordable
media edged down from the previous fiscal year.
Despite a sharp downturn in sales in North America, total sales of pre-recorded soft-
ware held steady from the previous fiscal year as a result of growth in sales of music
software in Japan, including sales of products produced by the Company’s artists.
In fiscal 2007, the market for recordable DVD media is projected to grow more than
40% year on year on a quantity basis. In this operating environment, JVC will concen-
trate on developing such high-value-added DVD media as the world’s first dual-layer
DVD-RW discs, 8cm DVD discs for video cameras, and other high-durability, high-grade
DVD discs to bolster sales while working to expand sales channels.
In addition, we will employ small-lot, multi-product manufacturing, which is becoming
mainstream, to enhance the efficiency of our pre-recorded software operations.
DVD-RW Discs (12cm)
JVC’s years of experience in disc molding and
recording layer formation technologies are the
foundation for these high-quality DVD-RW
discs that deliver reliable and stable recording
performance.
Mini-DV Tapes
These high-quality mini-DV tapes with unique
JVC technology bring out the best performance
in any mini-DV camcorder.
DVD-RW Discs (8cm)
These 8cm DVD-RW discs feature JVC’s origi-
nal Ultra Hard Coat surface protection technol-
ogy and are manufactured in Japan to ensure
outstanding reliability and quality.
Software & Media
500100 150 200
’06
’05
’04
’03
’02
95.9
148.0
167.5
177.0
103.9
Sales (Billions of yen)
% of Total FY2006 Sales
12.9%
The Consumer Electronics segment is the primary engine driving us toward our goal of becoming a top niche player, the Music
Entertainment business is our main source of fuel, and the Media business generates synergies with these two core businesses by manufac-
turing and selling recordable media and pre-recorded software. Recordable media ties in with such products in the Consumer Electronics
segment as recorders and video cameras while pre-recorded software forms a value chain with the Music Entertainment business.
In fiscal 2006, sales for the segment climbed 8%, to ¥103.9 billion, and operating income rose ¥0.2 billion, to ¥2.6 billion.