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F.A.Qs
 
  Choose one of the question listed below.
 
Q1 : What is the size of the Japanese music market?
Q2 : What kind of distribution system exists for records in Japan?
Q3 : What were some of the characteristics of the Japanese music market in 2000?
Q4 : What are the major purchasing groups for musical records?
Q5 : How much do records cost in Japan?
Q6 : What musical genres are there and how many newly released titles are there?
Q7 : What about Internet use?
Q8 : What about electronic delivery of music?
Q9 : What types of record awards and certification systems are there?
Q10 : What is the condition and impact of record rentals in Japan?
Q11 : How about music piracy?
Q12 : Is there a system for protecting the right of records?
 
Q1 : What is the size of the Japanese music market?
  It is the second largest market in the world following the U.S. Sales reached 704,516 million yen (US$6,535.3 million) in 2000 and accounted for 17.7% of the world wide sales, which covers more than 83 % of the total amount of sales in Asian region.
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Q2 : What kind of distribution system exists for records in Japan?
  There are two major channels for supplying products in the general market. The first involves record companies with their own sales divisions directly contracting with record stores. The second involves sales and distribution via wholesalers. The record companies store their records at one of two warehousing firms and deliver the records from there.
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Q3 : What were some of the characteristics of the Japanese music market in 2000?
  As for the pre-recorded music carrier, CDs comprised 96% of the quantity and 97% of the sales amount. As for the origin, Japanese repetoire comprised 81% of units sold and 79% of value. Although international repertoire only has 20% share in the market, the value counts about US$1,307 million in 2000.
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Q4 : What are the major purchasing groups for musical records?
  Overall, men and women in their teens and twenties purchase the greatest number of records and Japanese pop and rock music is particularly popular among them. However, recently the purchasing rate among people aged 30-59 has been rising.
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Q5 : How much do records cost in Japan?
  A full priced new CD album costs between JPyen2,500 (US$23) and 3,000 (US$28). The unique Japanese resale price maintenance system (price designation by record companies) remains and there has been no dramatic drop in prices.
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Q6 : What musical genres are there and how many newly released titles are there?
  Among Japanese music, there is enka (Japanese country), pops, traditional Japanese folk music, educational and children's music based on fairy tales, animation music, easy listening music (instrumental), karaoke and such. As for overseas, rock, disco, jazz, pops, soundtracks, classical and other records are sold at stores. The number of newly released titles in 2000 were about 15,800.
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Q7 : What about Internet use?
  The number of registered users with the internet services providers are about 23 million as of March 2001 and the pace of increase is expected to accelerate with the penetration of broadband.
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Q8 : What about electronic delivery of music?
  Many Japanese record companies are operating electronic music delivery services for downloading music through a portal site called Label Gate. In addition, the sites of the respective companies provide music for listening through streaming and artist related information. Furthermore, there is also a business format that uses a Kiosk like machine to enable individuals to download music from a server onto an MD or other medium.
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Q9 : What types of record awards and certification systems are there?
  Japan has the Gold Disc Awards. The ceremony for these awards is held once a year by RIAJ as the organizer and the ceremony is broad casted on satellite and terrestrial TV broadcasting programs. As for certification systems, the industry has the Gold Disc, Platinum Disc and other certifications. These are announced once a month through industry magazines, websites and such.
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Q10 : What is the condition and impact of record rentals in Japan?
  There are about 3,700 record rental shops in Japan and more than 85% of these rent records along with videos and game software. There are almost no shops that illegally rent records. The shops pay a use fee in accordance with their contracts and the system is working smoothly.
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Q11 : How about music piracy?
  There are basically no pirated copies of records produced in Japan. As for overseas, a recently widespread method for piracy has been utilized to obtain music via the internet, and made pirate CDs using CD-R burners. However, this type of pirated CD is not seen in Japan. The piracy problem for Japan is really a problem of unlicensed copying in Taiwan of Japanese music. The current problem involves is that these products being imported into and sold in Japan.
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Q12 : Is there a system for protecting the right of records?
  In Japan, the right of records are protected by the system of the neighboring right of copyright system. This includes exclusive rights of reproduction, transfer, making transmittable and lending; and the rights to claim secondary use fee (broadcasting fee of records) and the remmuneration for rental record (right following 1 year rental right), and the right to receive compensation for private audio and video recording. These rights are equally granted to record producers of the countries that are members of international conventions covering record rights.
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