JVC 2013 Annual Report Download - page 23

The Entertainment Software Business consists of the content
segment, which has as its core Victor Entertainment, Inc. and
Teichiku Entertainment, Inc., and the OEM Business that
specializes mainly in the production of CDs, DVDs, and BDs. The
second and fourth oldest record companies in Japan, Victor
Entertainment and Teichiku Entertainment, respectively, have
continued to deliver excitement to people through artists and
music for over 80 years. In 2011, Victor Entertainment relocated
all its previously far-flung group companies to a new office in
Shibuya, Tokyo, thereby increasing operational efficiency and
enhancing the Groupʼs overall strength.
The OEM Business has fully supported customers and met
their requests — from the production of content to the creation of
package media — centered on Victor Creative Media Co., Ltd. and
JVC America, Inc.
As the content business of the JVCKENWOOD Group, the
Entertainment Software Business will expand to become a total
Entertainment Business, promote the expansion of the OEM
Business, and utilize music and video technologies and know-how
to strengthen the Groupʼs overall ability.
The Content Business will endeavor to enhance its core Music
Business in two ways: by responding to changes in the
entertainment industry environment, such as the diversification of
user preferences and the popularization of Internet and mobile
phone distribution as a result of improved infrastructure; and by
making enterprising investments in talented new artists to
discover and foster such artists and promote a partnership
strategy to create hits.
The Content Business will also promote the realization of total
entertainment by enhancing B-to-B as well as Artist- and Anime-
Related Businesses to expand its business areas, and promote the
expansion of the OEM Business. In its B-to-B operations, Victor
Entertainment and Teichiku Entertainment have made deep
inroads into the B-to-B world, a domain different from its core
business of music and video content sales, and have engaged in
new business services through which expertise in the
Entertainment Software Business marketing and promotion, as
well as in music and video content production, are turned into hits
and utilized in different industries and business categories. In
December 2012, Victor Entertainment launched Space Sound
Design Solution “KooNe™,” which uses a high-resolution sound
system storing about three times more data than CDs and
enabling the reproduction of music with 96kHz/24bit high-quality
broadband sound, and has also entered the Space Sound
Production Business on a full-scale basis.
With regard to Artist-related Businesses, we will enhance
events and concerts, as well as the sales of goods and property
rights-based businesses, such as music publishing. We will also
continue to expand Anime-related Businesses and strive to
enhance the partnership strategy to further expand our business
domains.
With a view to expanding the OEM Business, we will adopt a
three-pronged approach by: (i) enhancing the Non-package
Business, which makes the most of highly experienced staff, who
have provided excellent facilities and equipment, cutting-edge
technologies, know-how, and assets; (ii) improving the Fulfillment
Business, which covers all processes, from planning to distribution;
and (iii) increasing productivity further.
■Major Products
Planning, Production and Sales of Audio and Video Content including CDs and DVDs,
Production and Sales of CDs and DVDs (prerecorded)
■Net sales and operating income (Billions of yen)
100.5
107.8
108.4 107.3
2.5
4 .1
7.9
6.3
4.0
-1. 3
3.6 3 .1
1.1
-10 . 8
-0.8
1.7
2.0
-1.7
2.2
1. 2
91.8
91.4
92.5 93.5
68.8
141.8
100.1 77. 5
40.9
44.9
42.9
36.7
FYE
3/'10
FYE
3/ '11
FYE
3/ '12
FYE
3/'13
FYE
3/'10
FYE
3/ '11
FYE
3/ '12
FYE
3/'13
FYE
3/'10
FYE
3/ '11
FYE
3/ '12
FYE
3/'13
FYE
3/'10
FYE
3/ '11
FYE
3/ '12
FYE
3/'13
■ Net sales

Operating
income
21
JVC KENWOOD Corporation
Business Overview