The Media Content Market Today

■ The Media Content Market Today

The 2021 edition of the "Japan and Global Media Contents Market Database" has been published by HUMANMEDIA.

It estimates that due to the impact of the COVID-19 pandemic in 2020, the size of the media content market in Japan has become ¥13,107.6 billion, which is a decrease of ¥661.2 billion (-4.8%) from the previous year.

Let's read more.

In 2020, "Entertainment and facilities," including movies and karaoke, etc., fell 43.3% from the previous year due to the impact of COVID-19. "Broadcasting" fell 12.2%, and "Software packages" fell 6.4%.

On the other hand, "Online content", with its large growth in streaming and increased advertising, rose by a total of 5.3%, accounting for 41.4% overall. The total for all segments remained in the ¥13 trillion range despite a 4.8% decrease.

In the 2010s, the content market shrank 5% year-on-year in 2009 following the Lehman Shock in 2008, and remained leveled off until 2012, the year after the Great East Japan Earthquake.

The market began to expand in 2013, and in 2016 recovered to the size it was in 2008. It has continued to expand since then, and in 2019 reached its largest level since 2008.

In 2020, there was a dip due to COVID-19. The question is whether this will continue or reverse in 2021.

In terms of media categories, "Online content" such as streaming, etc., accounted for only 13.4% of the total in 2011, but in 2019 it accounted for as much as 34.8%.

Its size was about three times larger in 2019 than it was in 2011, and the amount increased by ¥3,184.9 billion. This sector was responsible for most of the recovery and expansion of the market in the 2010s.

On the other hand, the "Package content", consisting of video, music, game software, newspapers, printing and publishing, etc., accounted for 43.5% of the total in 2011, but shrank to 27.4% in 2019. Its size declined 27.4% from 2011 to 2019, and the amount declined by ¥1,424.3 billion. "Broadcasting" maintained the ¥3.7 to 3.8 trillion level, but the overall market shrank from 29.5% in 2011 to 28.0% in 2019.

The results of survey of the media content market size in 20 countries and regions around the world showed that on a yen basis for 2019, the United States, China, Japan, Germany, the United Kingdom, and France, will be in that same order as they were in the previous year.

The market size in the United States, which is the world's largest, is about four times the size of the Japanese market, with China in second place being about twice as large as Japan, Germany and the United Kingdom in fourth and fifth place being about half the size of Japan, and France being about one-third of the size.

The overseas market for Japanese content will be about ¥2 trillion in 2019. This is a 16.3% year-on-year increase, nearly tripling since 2012. By sector, anime, followed by online gaming for smartphones is the largest.

The largest field was animation, which exceeded ¥1.2 trillion in 2019. Online games came next, with ¥368.9 billion, followed by publishing, mainly consisting of manga, which has also continued to expand.

In 2019, the total market size of domestic media content and related industries in the 5 sectors was ¥56.5 trillion, accounting for 9.9% of the ¥554 trillion GDP. It exceeded food service that was at ¥26 trillion, clothing which was at ¥10 trillion, and has reached a size where it is closing in on the ¥63 trillion in construction investment.

(5 areas: communications including telecommunications, etc.; advertising; characters; media hardware including TV and game consoles, etc.; and live performances)

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The content market had dipped at the beginning of the transition from analog to digital, but has since been on a trend of growth.

Although also having dipped due to COVID-19, digital expansion will accelerate and live shows will return sooner or later. Overseas markets will also grow.

It is an industry with high expectations. Market expansion revolving around digital content and internationalism, which the government's intellectual property strategy is aiming for, will be in full swing after COVID-19.

Even more than that, we should focus on a market that combines related industries. The total market size of hardware and software is a pillar of industry on par with food, clothing, and construction.

Furthermore, it will have a large ripple effect on markets around it. The viewpoint of expanding the scale of investment in these fields is required in anticipation of the ripple effects.

I recommend that this database, which is compiled on an annual basis, be used as a text for policymaking.