JVC 2006 Annual Report Download - page 23

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Victor Company of Japan, Limited 21
CD: SMAP
Sample Bang!
CD: Kanjani Eight
Osaka Obachan Rock/Osaka Romanesque
CD: Southern All Stars
Killer Street
CD: Remioromen
“Konayuki” (Powder Snow)
Music Entertainment Business
JVC’s Music Entertainment business comprises a number of key companies, including
Victor Entertainment, Inc., and Teichiku Entertainment, Inc., which produce and sell
music and video content, and Nippon Record Center Co., Ltd., a logistics company.
In fiscal 2006, music CD production costs in Japan rose for the first time in seven years,
signaling that the downturn is nearing an end. Although sales of pre-recorded DVDs
reached an all-time high, the rate of growth for these products is slowing. There was, how-
ever, marked growth in the music distribution market—mainly for mobile phones.
In this period of transformation, Victor Entertainment released new albums by such
major artists as the Southern All Stars, SMAP, Dragon Ash, and Love Psychedelico and
saw its artist Remioromen become a smashing success, and Teichiku Entertainment
launched new hits by the popular artists Kimimaro Ayanokouji, Kanjani Eight, and
Nakanomori BAND, contributing to year-on-year growth in sales for the Software business.
In fiscal 2007, the Software business will build on the reinforcements made to its prof-
it structure over the past three years through structural reforms, working to establish an
even stronger revenue base by expanding the focus of its operations from pre-recorded
music software to a wide range of entertainment products and developing one-source,
multiuse licensing operations.
In addition to seasoned artists, Victor Entertainment is developing such new talent as
Haruka Ayase, Shonen Kamikaze, SunMin, and Yadokari, and Teichiku Entertainment is
developing such new names as indigo blue, Takeshi Matsubara, and Shota Nagayama,
with an eye to turning these artists into huge stars that will produce blockbuster hits.
Furthermore, we are working to achieve even greater growth by boosting music distribu-
tion sales. In this way, we have positioned “discovery” and “development” of artists at
the heart of the Software business and will strengthen these core functions to transform
the business into a community of creative producers.
Moreover, as one of the few companies with both hardware and software offerings,
JVC will promote collaboration between its businesses to create new added value that
highlights the Company’s strengths.