Japan bites into Apple Music as pandemic spurs 8.2% rise in streaming

Although streaming has grown to dominate audio consumption across the developed world, physical music sales (namely CDs) have taken the lion’s share of Japan’s music market for decades. As detailed in Blokur’s 2020 Songwriters Review, Japanese music consumers are incentivised to buy CDs to demonstrate support for their favourite musicians. To motivate fans to buy, many CDs are bundled with collectables, invites to meet and greets and other perks.

In 2014, the Japanese physical music market was worth $2.6 billion, making it the world’s most profitable market for physical music sales. As streaming took hold in other countries, key players within the Japanese music industry saw it as a potential disruptor of the status quo. The head of Spotify Japan, Noriko Ashizawa, mentioned that ‘at first, streaming was thought of as competition for CD sales’ and that ‘many Japanese record labels simply refused to allow Spotify to access their artists’ song catalogues.’ 

japanese cd store

Japanese CD Store, Iso Brown/Flickr

For the last two years Japan’s music industry has been in decline, this includes -2.2% growth during the coronavirus pandemic in 2020. As shown in the graph below, whilst streaming increased its market share by 18.4% from 2017 to 2020, CD sales fell -18.4%. Further proving that the world’s second-largest music market’s lean towards physical sales is rapidly waning.

Blokur japanese market graph

Graph showing an increase in Japanese audio streaming — data source: RIAJ

In contrast to Japan’s negative growth, neighbour South Korea saw their music market grow 44.8% in 2020, a feature fuelled by the country’s supergroup BTS and K-Pop’s worldwide growth. Unlike J-Pop, K-pop is widely featured on multiple streaming platforms, with many South Korean record labels actively targeting international audiences.

BTS on Jimmy Fallon

BTS on Jimmy Fallon The Tonight Show

Blokur’s 2020 Songwriters Review identified that 4% of Apple Music’s top 100 songs fell under J-Pop. One reason for Japan’s strong showing in the Apple Music chart in 2020 is Apple’s dominance of the Japanese mobile phone market.In addition, Japanese songwriter Ayase (one half of YOASOBI) featured amongst the top 20 in Apple Music’s songwriter chart, a facet that highlights the potential of streaming platforms in Japan. As capitalised on by South Korea, an uptake in streaming could help Japanese musicians and songwriters gain international recognition.

Blokur music genres graph

Excerpt from Blokur’s 2020 Songwriters Review — Apple Music Genre Breakdown, Page 14

COVID-19 has hit the Japanese economy hard. Delays to the 2020 Tokyo Olympics and constant states of emergency have cost the country billions of dollars, contributing to it shrinking 4.8%. The aftermath of the pandemic is likely to permanently affect the way music consumers behave. Not only will the economic downturn affect the purchasing power of the Japanese consumer, but further lockdowns will also make it more difficult for fans to meet their favourite idols. Some may find listening to music via streaming a safer and more cost-effective way to enjoy the music they love.

The shift towards streaming is clear, as evidenced by the increased adoption of services like Apple Music, Spotify, and Amazon Prime Japan. Nevertheless, due to Japan's ageing population and the sentimental attachment to CDs, physical sales are expected to remain a substantial part of Japan's music market for many years to come.


For more statistics on Apple Music and the Japanese artists featured amongst 2020's top songwriters, download Blokur’s 2020 Songwriters Review.