CODA requested PwC Consulting LLC to conduct a study on the calculation and estimation of the content market size for the 10 years before and after 2018 as the base year (2014-2023), and furthermore, based on these figures, the calculation of the amount of damage caused by piracy of Japanese content distributed online (download, streaming, etc.) in 2019.
As a result, the estimated amount of damage from pirated Japanese content circulating online in 2019 is between 333,370,388,130 yen and 430,031,420,514 yen.
The study calculated and estimated the market size of four media (genres) (※1): video, publishing, music, and video games, by five regions (North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa). The global market for authorized content in 2019 was estimated to be about 117 trillion yen, of which Japan accounted for about 10% of the global market.。
Based on this, consumer surveys for Japan, the U.S., France, China, India, and Indonesia were conducted to calculate the amount of piracy damage. We calculated consumers’ monthly piracy usage rate, the percentage of Japanese content in their content consumption, the unit price of content, and the opportunity loss rate. We also used market data (Global Entertainment & Media Outlook) and website analysis tools provided by PwC Consulting LLC and calculated the volume of piracy distribution in several ways. As a result, the total amount of pirated Japanese content distributed worldwide was estimated at 1,904,498,846,354 yen to 1,985,933,009,338 yen for the four media of video, publishing, music, and video games. Furthermore, we conducted interviews with experts in each genre to verify the validity of these estimates.
Considering these distribution volumes, the conversion rate to legitimate versions (percentage of purchases that would have been made even if it is not free) based on the results of a survey conducted in the above six countries, and the results of expert interviews (the opinion that damage from piracy for games is almost nonexistent due to the prevalence of online games), the estimated amount of damage from pirated Japanese content circulating online in 2019 was calculated at 333,370,388,130 yen to 430,031,420,514 yen. The breakdown was 154,526,075,601 yen to 253,343,253,066 yen for video, 140,766,240,425 yen to 155,208,397,503 yen for publishing, 23,635,915,026 yen to 35,921,927,024 yen for music. As for the game, based on the results of the interviews, we set the price at 0 yen, as there was little damage to the game.
CODA will continue to implement effective countermeasures against copyright infringement overseas and work to create an environment for distributing legitimate versions.
This study was conducted as part of a project commissioned by the Ministry of Economy, Trade and Industry.
※１: Music: satellite and radio broadcasting, live performances, downloads, streaming, CDs, ad spending, etc.
Video: DVDs, paid broadcasting, subscription fees, cinema admission, OTT, VR video, ad spending, etc.
Publishing: books, magazines, newspapers (including e-books), ad spending, etc.
Games: social games, console games, PC games, e-sports, VR apps, VR games, ad spending, etc.