To clarify the purpose of its corporate activities and the social significance of its presence, Avex has defined a new Corporate Philosophy, "Continue to pursue the potential of entertainment," and formulated avex vision 2027, a medium-term management plan based on this philosophy.
*Please refer to the Corporate Philosophy / Tagline section to learn more about the corporate philosophy.
In the avex vision 2027 Medium-term Management Plan, "seek to discover and develop beloved IPs in many different regions and fields" has been declared a key strategy based on the Corporate Philosophy. Management, Labels, Live Concerts, and Animation & Video are positioned as the main domains of Avex, and four key initiatives will be promoted.
To develop IPs rich in continuity and is based around culture, avex Youth will be launched as an organization engaged in new talent discovery and development.
avex Youth will leverage Avex's nationwide network, which has been approaching more than 10,000 potential gems each year until now, to form projects for each cultural sector. In addition, it will hold auditions based on their respective exit strategies and direction to improve the quality of talent discovery and speed of development. Furthermore, we will aim to develop IPs that are "beloved" for even longer by maintaining an awareness of continuity for each IP during the talent development stage.
In the online distribution market, which will continue to expand due to digitalization, we will strive to discover artists who have the potential to succeed from a broad range of perspectives and provide them with optimal opportunities for development.
We will improve the development of artists to reflect growth in the online distribution market. The total subscriber count for the Avex YouTube channel, one of the largest in the music industry, which Avex has worked over the past several years, has grown to 27 million, far exceeding initial targets. Based on the knowledge and track record gained from these operations, Avex will make further efforts to discover and develop artists.
The advance of digitalization continues to generate the spontaneous appearance of talent the Avex Group operates the multi-monetization service BIG UP! and creator agency muchoo as platforms for approaching talent in this field. These services boast the highest number of registered groups in the industry. By strengthening the discovery and development of talent in coordination with them, we will aim to acquire hit IPs that are current with the times.
By pursuing joint development with various partners, including outside production and media companies, we will develop intellectual property to suit a wide range of needs.
Avex is also focusing on the market of music festivals, which differ from the live concerts of specific artists. Based on the knowledge and technologies Avex Group has accumulated for live concert solutions, we will aim to create events that can themselves be regarded as intellectual property for their qualities as content.
Hit productions in the fields of animation and video are inevitably loved both in Japan and abroad and are expected to generate long-term revenue. To achieve the dual strategy of producing original IP in-house and acquiring strong IP from other companies, we will pursue improvements along two tracks: strength in 360-degree development and production capabilities that involve in-house and outside personnel.
By leveraging capabilities in 360-degree development, which are already a strength for Avex, we will strengthen sales capabilities so that our intellectual property can be developed and chosen.
We will strongly promote the production capabilities of the FLAGSHIP LINE in-house studio while also working on expanding the number of titles through a cooperative structure with other companies. We will also work to strengthen production capabilities by building networks with external parties, such as providing content through coordination with digital video distribution platform holders. This will lead to the development and acquisition of intellectual property.
In addition to the fundamental personnel augmentations needed to promote these four key initiatives, we will also build a younger organizational structure to better adapt to the times. Specifically, the Group will enhance the quantity and quality of A&Rs who supervise artist discovery and development, provision of tracks and other related activities overall. In addition, we will ensure the quantity and quality of producers (PDs) supervising animation and video titles and the development of events and live concerts; we will aim to become an entertainment company chosen by a more diverse range of artists.
Additionally, concerning the monetization functions we have accumulated to date, we will consider which operations need to be worked on in-house and which need to be improved in cooperation with other companies and work to optimize resource allocation on that basis. Then, those optimized resources will be allocated for investments in IP development.
Besides the four key initiatives, we will keep investing in domains that will help utilize our intellectual property over the long term, aiming to establish a presence ensuring that we are chosen for IPs regardless of the future.
Avex House was established in West Hollywood. We are building a creative network overseas. Avex also signs publishing contracts with top-level composers and producers in the United States.
Investment began in February 2019.
Develops, produces and distributes virtual concerts.
Has collaborated with the likes of Justin Bieber and The Weeknd.
Investment began in August 2018.
Develops and sells AI-based, personalized sound apps.
Has collaborated with artists such as Grimes and James Blake.
Investment began in June 2020.
The virtual artist label was started by visual creators involved in concert tours of artists such as The Weeknd and Billie Eilish.
We launched NFT items within The Sandbox, one of the world’s largest platforms for blockchain games. The NFT items sold out within an hour of going on sale.
Through these initiatives, we aim to achieve a record operating income of 15 billion yen and an ROE of 15% in the fiscal year ending March 2027, the final year of this Medium-term Management Plan.
|Operating income||1.0 billion yen||6.0 billion yen||15.0 billion yen|
* Reference value
Cash on hand and operating cash flow will be allocated to strategic investments for IP creation and shareholder return. We will make flexible decisions regarding surplus funds, including additional shareholder return and the strengthening our financial position, with consideration given to the business environment.