Avex Group Mid-term Business Plan “Next Era 2014”

Transcription

Avex Group
Mid-term Business Plan
“Next Era 2014”
December 1st, 2010
AVEX GROUP NEXT ERA 2014
1
1
Recognition of current situation
2
Restructure of existing business
３
Mid-term growth strategy
４
Reinforcement of management structure
５
Target guideline
2
Cooperate History
Avex Net Sales
（100 million JPY）
CD Market
Distribution Market
CD+Distribution
Market
Avex Consolidated Sales
1,400
7,000
1,200
6,000
1,000
5,000
800
4,000
600
3,000
400
2,000
200
1,000
0
0
1
8
98
1
9
98
1
0
99
91
19
92
19
Widespread of CDs（1988）
Industry
Avex
93
19
94
19
95
19
96
19
97
19
98
19
99
19
00
20
Launch of i-mode（1998）
01
20
02
20
From 1988
Started importing and
wholesaling records.
2
4
00
2
6
00
07
20
08
20
09
20
Cyaku-uta full service started （2004）
Launch of iPod（2001）
From 1993
Started business as a record company
Produced number of dance music + J-POP
hits.
Developed together with market growth.
2
5
00
Cyaku-uta service started （2002）
48 titles became million-hit (1998）
First HMV store opened in Shibuya （1990）
03
20
From 2001
Stagnation of growth
caused by CD
market ‘s shrinkage.
Launch of YouTube （2005）
From 2005
Expanded sales,
converting to an overall
entertainment company.
●We have flexibly changed our business style, not sticking to existing business lines.
●Our company has expanded growth, by challenging new business areas valiantly,
leading the competitors.
However...
3
Music distribution unable to offset the market decline anymore...
Music Distribution Market （every 3 month)
(100 million JPY)
250
200
150
PC
Mobile
100
50
0
Jan-Mar
2005
Jan-Mar
2006
Jan-Mar
2007
Jan-Mar
2008
Jan-Mar
2009
Jan-Mar
2010
According to research, 44% of people answered either they will stop
using paid distribution service or refrain its usage as much as they can.
Considering to
stop using
Stop
repeated use
Not sure to use
repeatedly
Will be using the
same way
Total
Male
Female
Can listen on
video site
Inconvenient to listen
to cyaku-uta only on
mobile phones
Much cheaper if
we rip the rented
CDs
Survey to 2,000 people （age from 10s to 30s) (July 2010)
（Source：Avex Group own survey）
4
Big change in users sense of value and method of obtaining
Symbolic events in digital era
Symbolic events in mega-hit era
Method of obtaining
Purchase CD was basic
Legal:
Listen via free video sites
Illegal:
Download from illegal
sites
Ripping the CD
Each possess CDs of their favorite artists
Source of information
TV programs
Drama, CM,
Music program
Search on interest based on
their own interest.
Sense of value
Desire to posses package, such as CD
jacket, lyric booklet.
Data is enough !
5
There is no decline in music listeners, however…
How often do you listen to the music ?
More than 50% of them listen to music everyday
Only 2% of them does not listen to music
90% of them listen to music more than once a week
almost everyday
4-5 days a week
2-3 days a week
Once a week
There is no decline in numbers with
music listeners
Less than above
Never
（50.4% listened to music everyday, 5 years ago)
What is your main method of obtaining?
Rental dictates the method of obtaining chart.
Purchase CD at CD/record store
The % of those obtaining for free (free download, borrow from
friends, record the broadcasting programs) is 23, quite the same %
as those who purchase CDs
Purchase CD by online store
Purchase from downloading site
Download for free
Rent CD from rental store
Borrow from friends
Record the broadcasting programs (radio,
etc)
Others
70% of the method (in chart) relates to
record company, but only 40% actually
selling to users directly.
Survey to 2,000 people （age from 10s to 30s) (July 2010)
（Source: Avex Group own survey)
6
Business targeting active users is firm
●Expansion of the concert market, increase of our revenue from merchandising and fan
club suggests that agency business is firm. Especially with the business targeting
active users who gather and share information to each other.
●This is considered part of the trend, polarization in consumption patterns , premium
consumption , where people save money by obtaining daily essentials economically
and spend the money thoroughly on what they like.
(100 million JPY)
Transition of concert market
（ten thousand
people)
1,400
5,000
annual
sales
年間売上
高
attendance
入場
者数
Percentage of “premium consumption”.
4,500
1,200
4,000
1,000
3,500
3,000
800
2,500
600
2,000
2003
18％
1,500
400
1,000
200
500
0
2000
13％
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
19
96
0
2006
19％
2009
20％
Source: All Japan Concert Tour Promoter’s Conference
（Source：Nomura research Institute, Ltd.
Survey to 10,000 people)
7
Internet became main focus in users life
Domestic internet users almost reach 100 million !
Time spent on Internet eightfold in 9 years !
Transition of domestic net users
Transition of time spend on Internet
（ten thousand
people）
(year 2001 as 100 unit)
800
12,000
775
662
10,000
600
562
8,000
494
401
400
6,000
303
4,000
232
200
157
2,000
100
0
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2001
（Source：Ministry of Internal Affairs and Communications）
2002
2003
2004
2005
2006
2007
2008
2009
（Data collected in March each year. Time spent on home PC）
（Source：Nielsen）
8
Chance arrived for contents holders
● Wireless network that was in predawn stage will start to speed up and have greater
capacity.
● This will lead to greater demand for contents (especially videos).
Till today
From now
Infrastructure
Speed up by adopting LTE
（3.9G）
Complete conversion to digital
terrestrial
Hardware
Speed up of communication
devices
Wider spread of smartphones
less border between mobile
phones and PCs
Wider spread of net books
Wi-Fi-enabled appliance
Software
Developing and improving network
infrastructure, correspond devices,
and service.
Socialization
Development of cloud computing
Open market
Globalization
9
Mobile market will expand with an average growth rate of 15%!
4 trillion JPY !
45,000
40,000
35,000
Wireless/Broadband
Advertisement
Payment system
EC
Contents
Solution
30,000
25,000
2 trillion JPY !
20,000
15,000
10,000
5,000
0
2009
2010
2011
2012
2013
2014
Source: Nomura Research Institute Ltd.
10
Avex’s Mid-term Growth Image
EXISISTING BUSINESS
●We estimate continuous decline in the ”Record Company Business” that deals with music
package and digital distribution.
●However, we plan to compensate the decline of “Record Company Business” and
maintain the same sales level as FY2010, by increasing “Agency Business” that deals with
live and merchandising etc.
NEW BUSINESS
The growth driver for mid-term growth would be new business lines to be described later on
this material.
Net Sales
NEW
?????
FY2010 level
Agency Business + Bee TV Membership Business
EXISISTING
Record Company Business
Time frame
11
1
2
３
４
５
Target guideline
12
Adjustment of Structure for Creating Hits
Challenging points
● Despite the change in market environment and consumption style of users, our
organization structure remain the same as when the package demand was big.
● Position that require creative aspect is considered a profession and even without
making any hits, there was hardly any personnel relocation carried out.
● Number of artists and release items bloated, inversely to the shrink of the market.
● We will make the organization structure slim enough to fit the external environment
change. We will actively work on personnel relocations according to his/her past
performance and ferment the new creative climate.
● By studying the past performance / data, we will select the genre that we need to
put an effort, as well as clarifying the winning pattern. Based on the study, we plan
to promote selection and concentration of release items and so forth.
Although, there is no decline in demand for music, we estimate further shrinkage of
both physical & digital music market. In this declining phase, we would double the
current market share and keep the downturn of the music sales level to minimum in
mid-term, enjoying the benefits as a remaining player in the market.
13
Deepening High-value Added Strategy
● We will not commit on discount marketing, bur rather have premium consumption in sight.
● We will rather increase the products with added value and make the unit price higher by
pursuing the 4 elements ( collector psychology , artist support psychology , sense of
superiority , sense of qualification/limitation ) as well as artist brand value.
Transition of unit price with concert merchandise
(JPY)
8,000
100%
unit
price
顧客単価
Purchase ratio
購入率
6,737
7,000
90%
80%
5,759
6,000
70%
5,000
4,614
60%
Ayumi Hamasaki iPhone cover
￥13,500
50%
4,000
3,010
「ONE PIECE」 DVD BOX
￥14,600
40%
3,000
30%
2,000
20%
1,000
10%
0
0%
2006
2007
2008
2009
Subject of investigation: Goods sales at concert (one of Avex’s main artists)
Kumi Koda car navigation
￥49,800
Tohoshinki Live, premium seat
￥30,000
14
Offering Business Infrastructure to Other Companies
We have been developing business that centered artists and contents. We will reinforce the
business which we offer our skills and know-how, that we established through our business
to other companies. Our aim is to expand revenue stream that would not rely only on hits.
Lesson / Know-how
List of business infrastructure
Various
Platforms
Licensing dance lesson programs that we
held at avex artist academy to nation wide
sports gyms, etc.
There are currently 100 participating
facilities and more than 10,000 students.
Pipe line
Artist
Management
Digital
distribution
Athlete management
Applying the management and casting skills to
athlete management.
+
Brand power
Contents
production
Physical
Distribution
Merchandising sales at concert
venues
Promotion
Providing the merchandising sales know-how that we
established through our concert business to other
companies.
15
Restructure of Asia Strategy
● We aimed to create hits in entire Asia, however with the fact of difference in culture, l
language and income level between each area / country, the business we should implement
would need to differ and match to each area / country.
● From now on, we will work from ground by implementing the strategy that best fit to each
area / country, while keeping the entire unified strategy as a base.
Territory
Japan
Create hits of Korean and
Chinese-style
We will try to create new Chinese-style hits
in Japan by applying the success of BoA
and Tohoshinki, along with new Korean-style.
Building Asia strategy
Management of group companies in Asia
Approach Japanese companies in Asia
Support creativity
Reinforce agency business
Asia
Put greater effort on
approaching Japanese
firms that focus more
on developing in
Greater China.
Asia
Exporting Japanese artists to
Asia will only be implemented
where we can ensure firm
revenue.
Japan
Creative
16
1
2
３
４
５
Target guideline
17
Drastic Re-examination of Digital Strategy
● We have led the music industry in the digital domain by creating the Cyaku-uta model
and so forth.
● However, we are now facing the following challenges regarding digital strategy.
Not quite following
the trend with digital?
Stagnation of the music
distribution market.
Not enough marketing by
utilizing the digital?
Each service is not working
together ?
Gap with digital users?
Looking outside the music industry, we are in the situation
where we are not leading the digital development.
It requires drastic re-examination of digital strategy.
18
Digital Strategy:
Basic Concept
● We take the information technology innovation a chance and we will shift our main
business battlefield to digital.
● We will actively expand to neighboring business areas by having alliances with
various players inside and outside the entertainment industry. This can be done by
applying the know-how of 360 degree rights operation that we established in real
world.
● We also view a “ digital agent business “ that accept on trust of the digital rights
possessed by outside companies.
Outside business area
Distributor / Retailer
Outside contents creators
Outside talent agency
set aside
the rights
Communication carrier
avex Platform
revenue
share
Apparel maker
Alliance
SNS Business entity
Media
etc.
19
Focus Points of Digital Strategy
Our digital strategy will be concentrating on the following three points.
１
Artist
* Those proficient, such as talent, actors/actress, athletes collectively means Artist in this material.
Holistic optimization of value chain
New 360 degree model
２
Marketing
Implementation of digital marketing
３
Platform
Expansion of BeeTV business
20
1. Artist: Holistic Optimization of Value Chain
Digital strategy used to be the part of the value chain
Discover,
Nurture
Management
Package
Sales
Contents
Production
Music
Distribution
Live
Merchandising
mu-mo
BeeTV
We will raise the entire value-chain with digital strategy as its base !!
BeeTV
mu-mo
Live
Merchandising
Fan Club
Package
Sales
Management
Discover.
Nurture
Contents
Production
Music
Distribution
Digital strategy
21
1. Artist: New 360 Degree Model Utilizing Digital
Until now
From now on
Deliver artists talents and
their individuality
Deliver mainly artists music
Video
Portrait
Music
● Online live
● Video clip
● Programs by categories (contents)
● Digital characters ● Avatar
● Digital calendar
● Standby display flash
● Digital photo collection ● Dress-up tool
● Digital distribution ● Song application
● Play list
● Avatar live
● Recommendation
Food
● Recommendation and review of food
● Recipe / cooking
● EC sales of original cooking item
st
Arti
Hobby
● Books of hobby （Digital books）
● Programs of interest
● Appear on specialized website
Identity
Fashion
Talent
● Blog
● Serial essay
● Talk show / interview
● Recommendation
● EC sales of original brand / selected items
● Fashion item for avatar
● Digital drama
● Web advertisement
● Appear on outside website
etc...
We aim to expand our business-universe infinitely by
making the artist individuality itself a business.
22
2. Marketing： “Point” to “Drive”
Past marketing
Future marketing
“Point”
“Drive”
Typical push-type promotion,
sending information via massive
appearance on TV and commercial.
Shift to a marketing method which promotes
consumer’s self-action, such as sharing
information with each other.
■Characteristis
■Characteristics
Approach by professionals
and with artificial style.
Not with artificial approach,
but approach naturally.
Promotion was carried out
intensively at the same time as
release of finished products,
such as CDs.
Carry out the promotion and/or make
business of the process / story, which
consists of the scenes of audition process
and recording of the song, etc.
(not depend only on finished products like
CDs)
23
2. Marketing： Important Elements
We will implement “drive-type” marketing with the following 5 elements as a key.
Empathy
- Books that introduced by friends and “followers”
- Words of reader models
- Recommendation from those have same hobby
Respect
- Words of those with great knowledge in specific area
- Words of successors （well-knowns, athletes, cooperate managers, etc)
- Message of work with great number of viewing (website, video website, etc)
Humility
- Great person with friendliness
- Well-known person with sense of ordinary people
Reality
Desire for
cognition
- Review from Kakaku.com (website that lists price and review of products)
- Average rate of food related blog page
- Topics that has been twittered often
- Psychological of wanting to watch/listen further by watching/listening
the preview
- Greater number of viewing with those contents with shocking title
- Good at blog = good at titling
24
3. Platform: Position of BeeTV
● BeeTV (launched in May 2009) is the business model that indicated an entirely new
possibility to our company.
● BeeTV differs from the other models avex has implemented in the past, having the
capability of both creative and platform function, by forging strategic alliance. BeeTV
posses concentrated essence of business strategy, which we should be taking in the
mid-term.
Creative Function
Platform Function
Alliance
×
○
Secondary use of existing music contents
BeeTV itself creates contents.
Possible for secondary use based on its own decision
○
○
Provides both internal and external contents
Provides both internal and external contents
×
○
Implement mutual complement with both internal
and external players of the music industry,
together with creative function and platform function.
25
3. Platform: Expansion of BeeTV Business
Expansion to the following three
places
Increase revenue other than the membership fee, by
providing BeeTV contents to outside platforms, such as
TV stations, SNS, EC sites, and also work closely on
affiliate business.
Outside Platforms
Devices
Overseas
Planning to expand to broadband-correspond devices,
such as smartphones, electro books, considering the
innovation of infrastructure and greater capacity
available.
Planning to expand to overseas, mainly in Asia
26
3. Platform: Expansion of BeeTV Business
● By expanding the service to various devices etc, we target more than 3 million members
by the end of March 2014.
● Sales portion of membership fee will shrink due to the expansion of new business (such
as license business).
BeeTV
Business:2014年3月期
Sales structure
image in FY2014
BeeTV事業
売上構成イメージ
Membership fee
pay per view
Application
EC
License
27
Implementation of Alliance Strategy
● We used to center the self-contained business, which we deliver our contents
through our own platform.
● With the need of expanding our view to outside of the entertainment industry, we
will depart from the self-contained business and start new business by
collaborating with other players from other industries.
General stores /
Convenience stores
20 trillion JPY
Media
6 trillion JPY
x NTT Docomo = BeeTV
x 7&i Holdings
Avex
current business
area
Apparel
10 trillion JPY
And more...
x ????
x Samantha Thavasa / Stylife
28
BeeTV: The Very First Alliance Strategy
●Influential artists
●Name value
●fixed members, such as fan club, mu-mo
●know-how of music distribution
●only infrastructure among mobile phone carrier
●more than 50 million members
●mobile device development capability
Currently, there are more than 1.5 million BeeTV members.
Players from various business categories are raising their hands to join the business.
29
Alliance with Seven & i Holdings Co., Ltd.
●Name value
Online stores
●around 39,000 stores
●annual sales of 9.1 trillion JPY
●around 38 million customer visit
●Products planning ability
●wide pipe line with manufactures
Outdoor events
In-store events
Collaboration products
30
Alliance with Samantha Thavasa / Stylife
●Name value
BeeTV TOPPING Fashion Magazine
●more than 1 million members
●handling plenty of brands
●know-how of operating EC website
●mixture of several medias
BeeTV “Paris Hilton Celebrity life”
BeeTV provides fashion-oriented programs which leads consumers to the EC website
“Stylife”. Consumers are able to purchase items introduced in the program.
31
1
2
３
４
５
Target guideline
32
Reinforcement of Management Structure
Improvement
of mobility
● 4 representatives
● Chief Officer system
● Halve the board members
● Delegation of authority
to cooperate officers
Improvement
of
independence
and
objectivity
Improvement
of
business
efficiency
●5 out of 4 outside directors are
independent directors
● Establish investment review committee
● Enhancement of business management
● Establish Business Process Reengineering Room
● Tightening of closure rules of underperforming business
Improvement
of
law-awareness
● Enhancement of compliance committee
● Partial revision of compliance policy
● Enhance compliance education to employees
33
Strengthening of Human Resource Strategy
We restructured our personnel system drastically in this October with our fundamental
principal, growth of employees will lead the growth of the company , as a base.
Rigid
Rigid organization
organization and
and
lack
lack of
of employees
employees skills
skills
Assessment
Assessmentand
and
compensation
compensation system
system
centered
centeredon
onshort-term
short-term
results
results
Activate
Activatejob-rotation
job-rotation
●
●Relocate
Relocatemanpower
manpowertotogrowth
growthareas
areas
●
Develop
employees
skill
to
achieve
● Develop employees skill to achievetheir
their
long-term
career
plan
long-term career plan
●
In-sourcing
● In-sourcingcurrent
currentoutsourcing
outsourcingwork
work
Adaption
Adaptionof
oflong-term
long-term
assessment,
assessment,compensation
compensation
and
andincentive
incentiveplan
plan
●
●Revise
Reviseassessment
assessmentand
andcompensation
compensation
system
based
on
individual
system based on individualperformance
performanceand
and
long-term
career
plan
long-term career plan
●
Improve
● Improveretirement
retirementbenefit
benefitsystem
system
●
Adapt
employee
stock
ownership
● Adapt employee stock ownershipplan
plan
●
Establish
employee
mutual
aid
● Establish employee mutual aid
34
1
2
３
４
５
Target guideline
35
Summary of Mid-term Business Plan
We will achieve mid-term growth by expanding our business lines outside of the
entertainment industry. Digital and alliance strategy will hold the key.
Net sales
● New 360 degree business, centering the artist
● New alliance business
● New BeeTV business ( other than the membership fee)
● Digital agent business
etc
NEW
Alliance strategy
NEW Business
FY2010 level
Record Company Business
EXISISTING
High-value added strategy
Digital strategy
Agency Business + BeeTV Membership Business
Restructure of creative structure
Time frame
36
Target Guideline (Net sales, Operating Income)
Transition of Avex’s net sales, operating income (past 10 years)
(100 million JPY)
1,400
20%
売上高
Net
sales
営業利益率
Operating income margin
1,200
15%
1,000
800
10%
10%
600
400
5%
200
0
0%
FY 2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
Net sales
Operating income
Guideline
Guidelinelevel：
level：
Continuous
Continuousachievement
achievementofof
more
morethan
than10%
10%OP
OPmargin
margin
more
morethan
than140
140billion
billionJPY
JPY
(FY
(FY2014)
2014)
37
Target Guideline (ROE, Dividend, D/E ratio)
Transition of ROE (past 10 years)
(100 million JPY)
25%
Transition of interest-bearing debt,
D/E ratio (past 10 years)
500
1.6
interest-bearing
有利子負債
debt
20%
(TIMES)
D/E ratio
D/Eレシオ
1.4
400
1.2
15%
15%
1.0
1.0
300
0.8
10%
200
0.6
5%
0.4
100
0.2
0%
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
0
0.0
FY2001
-5%
ROE
FY2002
FY2003
Dividend
Target payout ratio:
More than 30%
Target:
Target:More
Morethan
than15%
15%
We plan to change are
stable dividend policy to a
performance-linked payment.
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
D/E ratio
Target:
Target:Less
Lessthan
than1.0
1.0
We
Wewill
willreduce
reduceinterest
interest
-bearing
debt
to
-bearing debt toachieve
achievethe
the
above
target.
above target.
38
Creating value through
emotional experience
1. We have proactively changed our business style time to time in line with
the trend. And we have regarded user-friendliness as our top priority.
Flexibility and mobility as our strength, we will continue to provide new
ways to enjoy entertainment.
2. By pursuing communality, one of the primary characteristics of
entertainment, we will develop products and services which emotional
experience can be shared between customers and us, as well as among
customers.
3. We will contribute to the society through entertainment activities and
provide color to customers’ life by creating value through emotional
experience.
39
Any inquiries, please contact
Avex Group Holdings Inc.
Stocks & IR
Taishi Arashida / Emily Owa
+81-3-5413-8519
arashida-taishi@av.avex.co.jp
ohwa-eri@av.avex.co.jp
The data and future prediction in this document are all based on statement made on the date herein and also the information available at the
time of the statement was made. Thus, you should be aware that a number of important risk factors could lead to outcomes that differ
materially from those presented in such forward-looking statements. These include, but are not limited to change in economic conditions and
significant change in the competitive environment. In the course of its operations, we adopt measures to control these and other types of risks,
but this does not constitute a guarantee that such measures will be effective.
40

Avex Group Mid-term Business Plan “Next Era 2014”

Transcription

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