Avex

Basic Information

Stock Code
7860
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
April 1988
Listing Year
October 1998
Official Website
https://avex.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Amuse, Technologies, Daiichi Kosho, NISSO

Overview

Avex is a major player in the information and communications industry, founded in 1988, specializing in the planning, sales, and distribution of music and video software, and is a leading company with strengths in diverse music genres and digital distribution services.

Current Situation

Avex recorded consolidated sales of 135.5 billion yen and operating profit of 4 billion yen in the fiscal year ended March 2020. It operates a multifaceted content business including video and music distribution. It has strengths in planning, production, and distribution services for music and video software, and manages diverse labels and artists both domestically and internationally. It has management agencies and video production subsidiaries under its umbrella, strengthening competitiveness in both content production and talent management. In recent years, it has expanded investments in overseas markets and digital platforms, with a focus on developing new customer segments through anime and video distribution businesses. To achieve sustainable growth, it is promoting innovations in music distribution technology and diverse content development, and implemented business efficiency improvements through organizational restructuring in 2023. While strengthening responses to legal regulations and market competition, it positions medium- to long-term brand value enhancement and group synergy creation as key strategies.

Trivia

Interesting Facts

  • Company name Avex derives from 'Audio Visual Expert'.
  • Swept the market in the early 2000s with diverse artists like Ayumi Hamasaki.
  • Introduced Japan's first copy-controlled CD but withdrew due to backlash.
  • Held secret live concerts at annual general meetings until 2010.
  • Launched Japan's first anime song subscription streaming service 'ANiUTa'.
  • Expanding internationally with subsidiaries in Korea, Taiwan, China, and other Asian regions.
  • Live event 'a-nation' is popular as a large outdoor festival.
  • Music genres range from J-POP to classical, rock, and EDM.
  • Actively investing in e-sports and VTuber startups.
  • Engaged in social issues through support for disabled sports.
  • Avex's DNA is deeply rooted in the fusion of music and video.
  • Top-class scale in Japan as a rights management company.
  • 2004 management dispute significantly impacted stock price.
  • Operates own music education schools with focus on young talent development.
  • Has produced many famous artists globally.

Hidden Connections

  • Initially expanded business with additional financing from Sumitomo Bank (now Sumitomo Mitsui Banking Corporation).
  • NEC once held a minority stake and provided IT technology support.
  • Collaborated with CyberAgent to enter music streaming market.
  • Has history of capital alliance with KADOKAWA for anime market collaboration.
  • Connections with multiple cultural operators through affiliated artist events.
  • Strengthening overseas expansion through partnerships with animation production companies and streaming operators.
  • Involved in senior sports players and disabled sports through management.
  • Leading music industry digitalization through investments in emerging tech companies.

Future Outlook

Growth Drivers

  • Rapid expansion of domestic and international digital music streaming markets
  • Increasing international demand for anime and video content
  • New service development leveraging new technologies (VR, XR, AI)
  • Strengthening music software production across diverse genres
  • Expected revenue recovery from resumption of live events
  • Increasing users of subscription services
  • Advancing overseas market development in Asia and North America
  • Efficiency improvements through Avex Group organizational optimization
  • Sustainable hit creation through new generation artist development
  • Expansion of digital advertising and media mixes
  • Rapid growth in e-sports and VTuber domains
  • Accelerating sustainability initiatives

Strategic Goals

  • Achieve over 50% global sales ratio
  • Surpass 10 million users in music streaming services
  • Double revenue through international anime business expansion
  • Improve operational efficiency by 20% through DX promotion
  • Establish sustainable business operations
  • Increase annual live event attendance
  • Content innovation through new technologies
  • Establishment of diverse revenue sources and risk diversification
  • Increase number of young artists succeeding internationally
  • Strengthen cultural and social contribution activities and promote social responsibility

Business Segments

Music Software Production Outsourcing

Overview
Business handling outsourced planning and production of music and video software.
Competitiveness
Track record in developing over 1,300 titles
Customers
  • Domestic music publishers
  • Overseas labels
  • Video production companies
  • Advertising agencies
Products
  • CD planning and production
  • Video content production
  • Disc pressing services
  • Rights management

Artist Management Support

Overview
Provides comprehensive support from talent development to activity assistance.
Competitiveness
Expertise in building long-term fan bases
Customers
  • Entertainment production companies
  • Sports clubs
  • Talent agencies
Products
  • Management operations outsourcing
  • Live planning and operation
  • Media exposure support
  • Promotion strategy

Streaming Platform Operation

Overview
Distribution business leveraging technology infrastructure and licenses.
Competitiveness
Ability to expand across diverse distribution channels
Customers
  • Telecom carriers
  • Video streaming service companies
  • Music streaming operators
Products
  • Music subscription streaming
  • Video streaming services
  • Content licensing

Event Planning and Operation Services

Overview
Provides total solutions for events domestically and internationally.
Competitiveness
Expertise in large-scale event operations
Customers
  • Corporate promotions
  • Sports events
  • Concert organizers
Products
  • Music live planning
  • Promotional event planning
  • Venue setup and operation

Digital Content Production Support

Overview
Digital content production using the latest technology.
Competitiveness
Multifaceted video production technology
Customers
  • VR-related companies
  • Game manufacturers
  • Video streaming operators
Products
  • 3D video production
  • VTuber production
  • Video shooting and editing

Music Rights Management and Publishing

Overview
Supports rights management and song distribution.
Competitiveness
Trusted as a major domestic music publisher
Customers
  • Composers
  • Lyricists
  • Music publishers
Products
  • Rights management
  • Song sales agency
  • License negotiation

Advertising Media Production

Overview
Handles planning and production of advertising and promotional videos.
Competitiveness
Abundant track record and creative capabilities
Customers
  • Advertising agencies
  • Corporate marketing departments
Products
  • Promotional videos
  • Advertising video editing
  • Event video production

Live Entertainment Technology Provision

Overview
Technical support and equipment provision for live events.
Competitiveness
Cutting-edge technology and extensive operational experience
Customers
  • Live venue operators
  • Entertainment promoters
Products
  • Lighting and sound equipment
  • Video equipment rental
  • Live streaming technology

Celebrity and Athlete Management

Overview
Talent image management and contract operations.
Competitiveness
Flexibility in handling diverse genres of talent
Customers
  • Professional sports teams
  • Talent agencies
Products
  • Contract management
  • Branding strategy
  • Media response support

Education and School Operations

Overview
Provides education programs aimed at professional development.
Competitiveness
Practical curriculum linked to the industry
Customers
  • Aspiring musicians
  • Dancers
  • Aspiring creators
Products
  • Music training courses
  • Dance lessons
  • Creator development programs

Digital Streaming Business System Provision

Overview
Streaming system development and operational support services.
Competitiveness
Experience in large-scale streaming operations
Customers
  • Music streaming services
  • Video streaming platforms
Products
  • Streaming infrastructure development
  • Content management systems
  • User analytics tools

Overseas Content Expansion Support

Overview
Support for content expansion into international markets.
Competitiveness
Global collaboration centered on East Asia
Customers
  • Overseas music companies
  • Asia market operators
Products
  • License granting
  • Local promotion
  • Overseas marketing

Competitive Advantage

Strengths

  • Music production capabilities across multiple genres and diverse label operations
  • Domestic and international digital streaming platform operations
  • Strong artist management foundation
  • Comprehensive event planning and operation expertise
  • Drive for global markets and Asian expansion
  • Digital content production capabilities through technological innovation
  • Powerful brand and fan base
  • Diverse subsidiaries and group collaboration structure
  • Long-term stable rights management system
  • Market adaptability through coverage of diverse music genres
  • Advanced response to subscription-based services
  • Active adoption of latest streaming technology
  • Strengths from integration with video and anime content
  • Innovative digital video production capabilities
  • Sales channel network accommodating diverse customer segments

Competitive Advantages

  • Differentiated by exclusive contracts with many famous artists
  • Operates one of Japan's largest online music streaming services, capturing new generations
  • Able to provide total services from music production to video production and management
  • Actively investing in latest content areas such as e-sports, VTubers, and VR
  • Improved management efficiency through group reorganization, enabling quick response to market changes
  • Possesses sales and distribution networks in international markets
  • Service deployment based on advanced streaming systems and user data analysis
  • Brand strengthening and revenue stabilization through specialized event planning and operations
  • Established multifaceted revenue structure through collaborations with other industries
  • Achieves strategic synergies across the group via holding company structure
  • Highly trusted in the industry due to superior quality and rights management
  • Resilient to market fluctuations through operation of music labels spanning diverse genres
  • Differentiated as a comprehensive entertainment company fusing digital and real experiences
  • Expanding cross-border revenue through aggressive overseas expansion
  • Creating new customer value through technological innovation

Threats

  • Risk of revenue structure fluctuations due to digitalization in the music industry
  • Intense market competition with strong domestic and international competitors
  • Potential tightening of legal regulations related to rights management
  • Revenue pressure from rights adjustment issues on streaming platforms
  • Brand risk from artist departures or contract issues
  • Concerns over social credibility decline due to copyright infringement suspicions
  • Shifts in music genre popularity due to changing consumer preferences
  • Risk of live event interruptions due to pandemics like COVID-19
  • Political and economic fluctuation risks in international markets
  • Potential threats from cyberattacks on IT infrastructure
  • Risk of failing to keep up with technological advancements in content distribution
  • Revenue decline from reduced advertising income or sponsor shifts

Innovations

2023: Group reorganization and business efficiency improvements

Overview
Implemented reorganization with Avex Entertainment and Avex Pictures under an intermediate holding company to enhance management efficiency.
Impact
Promotes group synergies and faster decision-making.

2022: Headquarters relocation to new building

Overview
Relocated headquarters to Sumitomo Realty & Development Azabu-Juban Building in Minato-ku, Tokyo, introducing latest equipment to improve operational efficiency.
Impact
Improved work environment and promotion of innovation.

2021: U.S. management company made subsidiary

Overview
Acquired U.S. record and management company as subsidiary to strengthen focus on overseas markets.
Impact
Contributes to business expansion in North America and increased overseas sales.

2020: dTV platform enhancement

Overview
Collaborated with NTT Docomo to strengthen dTV services and expand video streaming customer base.
Impact
Increased membership and stabilized revenue base.

2024: Investment in VR social room app 'Cluster'

Overview
Avex Ventures invested in VR social platform.
Impact
Seeding new businesses in XR domain.

2023: Advanced digital music rights management

Overview
Avex Music Publishing introduced AI-based rights management system.
Impact
Improved management efficiency and rights holder satisfaction.

2023: International expansion of BL dramas

Overview
Partnered with KADOKAWA to promote new BL drama for Thai market.
Impact
Expanded fan base and sales in emerging markets.

2021: Enhanced subscription music service 'AWA'

Overview
Collaborated with CyberAgent to expand song content and improve functions for AWA.
Impact
Contributed to user growth and revenue increase.

Sustainability

  • Promoting plastic reduction at music events to lower environmental impact
  • Promoting paperless operations through digital distribution
  • Continuously implementing cultural and artistic support activities
  • Expanding programs supporting women and young people in entertainment
  • Promoting employee health and diversity through work-style reforms
  • Promoting collaboration with regional music education support activities
  • Initiating consideration of renewable energy adoption
  • Strengthening compliance and information security
  • Enhancing support for disabled sports
  • Participating in global sustainability activities
  • Promoting fair artist contract practices
  • Encouraging content production that promotes multicultural coexistence