An Overview of the Japanese Publishing Market andChanges in the Environment Surrounding Publishing

樋口清一

Seiichi HIGUCHI

一般社団法人 日本書籍出版協会 専務理事・事務局長
Executive Director ＆Secretary General, Japan BookPublishers Association

１ Overview of theJapanese publishing market

１-1 Restoration of paper
2,656.4 billion yen• 売上げの推移
1, 208.0 billion yen

magazine

book

Sales of paper publications (books and magazines total) in 2020 decreased by 1.3% from theprevious year.

１-2 Spread of electronics
Total
1,674.2 billionyen¥20,000¥18,000¥16,000¥14,000¥12,000

紙の出版売上¥10,000

電子出版売上¥8,000¥6,000¥4,000ePublishing466.2 billion
Yen¥2,000
¥0
2014年

2015年

2016年

2017年

2018年

2019年

2020年

2021年

The combined publishing market for paper and electronics
increased by 3.6% year-on-year (up for the third consecutive year)
出典：出版年報2022（出版科学研究所）

１-3 Rapid growth of ebooks, especially comics

E-magazine
E-book

E-comic

Electronic comics increased significantly by 20.3% year-on-year.

１-4 Trends in the comic market
586 billion yen

612.6 billion yen
Year 2021
675.9 billion
yen

E-Comic

Comic Magazine

Comic Book

１-5 The number of newly published books is gradually decreasing
number of newly published books
80000
78000

78810

78349

77910

78485

76000

74000

76445
75039

74714

73057

72000

71661

71903

70000
68000

68608

69052

66000
64000
62000
12010

2
2011

32012

42013

52014

62015

7
2016

82017

92018

10201911202012
2021

There was a phenomenon in which the decrease in sales was compensated by an increase in thenumber of new publications, but the number of new publications is gradually declining due to theneed to improve distribution efficiency and reduce the return rate.

１-6 Trends in book and magazine return rates

MagazineBook

1‐7 The children's book market is developing steadily(hundred million yen)(titles)

TurnoverNew title

出典：出版科学研究所

1‐8Changes in the number of bookstores
The average floor
space per store basedon simple averages
will increase from 250㎡ in 2010 to 285㎡ in2020.

出典：日本出版販売「出版物販売額の実態」最新版(2021年版)

２ Publishing industry’s
response to COVID-19

2-１ 2021 Annual Best Sellers（日本出版販売調べ）

Fiction

Prize-winning literary hits
Works by celebrities (idol groups, comedians)
Strong popularity of famous writers

Non fiction

Lifestyle book for seniors
Essays from South Korea are popular withwomen
psychology, self-help books

Business

Conversation commentary bookInvestment/saving/savings/side job"Self-Study Encyclopedia" (788 pages)
exceeded 200,000 copies

Hobbies & practical books

Health, Diet Orientation, Cooking Related
Reputation on SNS is the key
astrology

３ Japanese publication distribution
system

3－1

Main distribution routes for publications

publisher

Approximately 120 billion
yen in publication sales at
CVS (approximately onefifth of the peak period)

The number ofpublishers dealing
directly with Amazonis increasingwholesaler

bookstore

convenient
store

Online bookstore

reader３-2 Resale Price Maintenance System 再販売価格維持制度
Publications were ruled an exception to the 1953 Anti-Monopoly Law, allowing
the continuation of the pre-war custom of selling publications at fixed prices.

The Resale Price Maintenance System, under which a publication are sold
across the country at a fixed price. For the publishers and bookstores acrossthe country, resale price maintenance enables the distribution of a wide varietyof titles in small volumes and makes possible royalty payments for books with asmall circulation.
This does not mean that publications must be sold at a fixed price, but onlymeans that the publications are allowed to be sold at a fixed price. In otherwords, it depends on publishers whether they sell a specific publication at a
fixed price or not. The Resale Price Maintenance Agreements themselves arecontracts between publisher and wholesaler, or between wholesaler andbookseller on a voluntary basis.

3-2-1 Transactions Covered by Resale Price Maintenance Agreements
Transactions between publishers and distributors with resale agreements

yesTransactions between distributors and bookstores with resale agreement

yes

Sales at retailers without a resale agreement

noSales to readers by publishers themselves (whether real or online)

noSales of publications not subject to resale agreements

noSales of combined products of publications and non-resale products

noResale of publications that have been purchased by readers, such as usedbooks

noIn addition, discount sales through flexible operation of resale agreements

yes/no3－3 The consignment system 新刊委託制度
Book stores are able to stock publications without any risk because of theconsignment system.
Under the Consignment Sales System, retailers and wholesalers can freely return
unsold publications within a set period of time (usually six months for newly
released books). So, even small booksellers are able to distribute a large selectionof books with no risk, and specialty bookstores can stock titles with small print
runs or a slow turnover.
Conversely, the consignment sales system is also effective for mass-market
publications aimed at nationwide audiences. The unique system of bookconsignment serves consumers well because it offers more choice, and it serves
booksellers well because it helps them maintain their vitality. However, it can also
work to detrimental effect when publishers overproduce and distribute books that
do not sell, thus resulting in a large volume of returns. The task of rationalizing thedistribution system to avoid this pitfall still needs to be addressed.
Almost publications are distributed on a returnable basis.

3－4 Publication Logistics Issues

bookmagazine

3－5 2024 problem in logistics

・From April 1, 2024, the work style reform related law
will limit the annual overtime hours for car drivers to 960
hours.

・If an employee works 60 hours of overtime per month,
the extra wage rate will be raised from 25% to 50%.
↓As a result, even in the distribution of publications, there
is a need for more efficient management of distributors.
・Progress in collaboration between two major companies

3‐5 A New Move to Improve Publication Distribution
On March 11, 2022, Kodansha, Shueisha, Shogakukan, and Marubeni, a major general trading company,
established a new company PubteX with the aim of reforming publication distribution into a sustainable
one by utilizing DX.

(1) Publishing and book distribution optimization solution business that utilizes advanced AI
Publishing and distribution of publications by utilizing various "data" used in the publishing world in a longitudinal,
cross-sectional and integrated manner, and by utilizing an "AI model" that fits the different sales
characteristics of each title. We aim to reduce the book return rate by providing a service that optimizes thevolume.
(2) RFID solution business
By attaching RFID (IC tags) to publications and using the various data recorded, various services can beprovided, including management of inventory and sales conditions, improved inventory efficiency, bookrecommendation services at sales floors, and shoplifting prevention. We will support the solution of publication
distribution issues, mainly by improving the operation and management of bookstores. The target is to start theRFID solution business in July 2023.

3—6

Maintenance and development of bibliographic database

Registration status with JPRO （November 2022）□Number of registered books 3,623,321
paper books 3,119,509
paper magazine 21,206
audiobook3,864□Number of registrants
2,540者□Registration rate of newly published books 96.0％□Number of registered bookstores 2,414

Registration fee with JPRO
□ Books, Mook, Comics

1,000 yen

□ Magazines

5,000 yen/title/year□ ebooks

200yene-book

478,742

４ Changes in the Legal Environment
Surrounding the Publishing World（１）Responding to the Barrier-Free Reading Law
Preparation for establishment of Accessible Books SupportCenter（２）Remuneration system for public transmission for
educational purposes（３）Expansion of restrictions on library rights
Introduction of a compensation system（４）Efforts to eradicate piracy

4-1 読書バリアフリー法への対応 Responding to the Barrier-Free Reading Law
Law Concerning Promotion of Improvement of Reading Environment for the Visually Impaired(Effective June 28, 2019）
Purpose (Article 1)
Comprehensively and systematically promote the development of a reading environment for visually impaired
people (= people who have difficulty recognizing visual expressions in books due to visual disabilities,
developmental disabilities, physical disabilities, etc.)

It is planned to establish an accessible books support center within JPO( Japan Publishing
Information Infrastructure Development). In September 2021, the preparatory committee will
begin consideration.
＊One-stop reception of requests for accessible book data from organizations for personswith disabilities and contacting publishers.
＊Publishers can safely provide text data, etc. in a secure environment.
＊As an organization for persons with disabilities, we can expect prompt responses byunifying their contact points.

4-2 授業目的公衆送信補償金制度
Administration of Remuneration for Public Transmission for School Lessons

Founded by law revision in May 2018.
In the past, copying of copyrighted works
to the extent necessary and appropriate in
the course of the lesson and transmission
in the remote joint lesson were available
free of charge.
In addition to this, it is possible to use itfor public transmission for class purposes,
provided that the installer of theeducational institution using the systempays compensation.
(Excludes use that unreasonably harms
the interests of the copyright holder).

授業目的公衆送信補償金等管理協会（founded Jan.2019）
Society for the Administration of Remuneration for Public Transmission for School Lessons（SARTRAS）
https://sartras.or.jp/outline/＊ In April 2020, in response to the simultaneous closure of schools nationwide due to the spreadof new virus infections, the compensation was zero and the right to public transmission was restricted
ahead of schedule.
＊ From April 2021, the system began operating for a fee. Registration from educational institutions
nationwide is underway. (Compensation amount = Elementary school students 120 yen/year/person,junior high school students 180 yen, high school students 420 yen, university students 720 yen)

＊ The estimated amount of compensation collected in FY2021 is approximately 4.8 billion yen.

4-3 Transmission of materials from library to individual user

Related to Article 31, Paragraph 4 of theCopyright Act＊ The National Diet Library can directly send thedata of "out-of-print materials" (those that are notavailable in the market) at the request of the user.
＊ There is no compensation for rights holders.
＊ The service will start in May 2022. There areabout 200,000 accesses per month.

Remuneration System for Public Transmission by Libraries or Similar Facilities
Copyright Law article31, paragraph2＊ Libraries in general will be able to transmit portions of works for research purposes at the request ofusers.
＊ Compensation must be paid to copyright holders and publishers.
＊ Compensation is assumed to be borne by the users themselves.
＊ The system was built on the premise that a compensation amount sufficient to compensate for theloss of right holders is necessary.

図書館等公衆送信補償金管理協会（founded Sep.2022）
Society for Administration of Remuneration for Public Transmission by Libraries or Similar
Facilities(SARLIB)＊ On November 2022, 11, it was designated by the Commissioner for Cultural Affairs as the onlyorganization in the country to exercise the right to receive public transmission compensation such aslibraries.
＊ We are currently hearing opinions from the library establishment organization regarding the amount ofcompensation.

4-4 Fighting piracy
Total number of visits for the top 10 piracy sites

ｔen thousandSuper huge site
‘MangaBank’ closed
New sites appear
one after another

出典：一般社団法人ABJ ウェブサイト

Established ABJ to continuously implement anti-piracy
measures＊ Addition of the ABJ mark to distinguish the official version site
＊ Prevents advertisements from being posted on pirated sites＊ Collaboration with related government agencies and organizations→Cooperating with the Agency for Cultural Affairs to implement legal

revisions to combat piracy※The scope of illegal downloads has been expanded to include
publications, and the act of downloading pirated copies knowingly isalso subject to punishment.

＊ Development of the “STOP! Pirated Edition” Campaign→The member publishers have united and, with the cooperation of well-known
manga artists, produced works and educational goods using manga characters toeradicate original piracy.

* Cooperation with search sites. Campaign banners are displayed when searching for "pirated"or pirated sites

Attachment of the ABJ mark＊ The ABJ mark is a registered trademark that indicates that the posted ebook store/e-book distribution service is a regular version distribution service
that has obtained content usage permission from the copyright holder.
＊ Established with the aim of providing readers with an environment where
they can browse and subscribe with peace of mind, and to promote thedevelopment of a sound content market.

５ New reading promotion movement
and the future of books

5‐1 求められる、「読者」の再発見• この15年で人々が1日のうちでメディアに接する時間は120分も増加。
O ve r the l a st 1 5 ye a r s, p e o p l e h ave i n cr e as e d th e i rt i m e t o i n t e ra c t w i t h t h e m e d i a b y 1 2 0 m i n u te s a d a y.

• PC、タブレット、スマートフォンの合計で約4時間。
A to ta l o f a b o u t 4 h o u r s f o r PC s , ta b l e ts a n ds m a r t p h on es .

→この時間の中の一部を本に振り向けるにはどうしたら良いか？
How can I devote some of this time to books?

博報堂メディア環境研究所調べ

5-2 Substitutability from paper to electronic is partial＊ CDs had extremely strong substitutability from records.

＊ Cinema and television have developed together in their own ways.
＊ In the case of publications, although e-books will continue to develop to acertain extent, it is hard to imagine that they will replace all paper publications,at least at present.
＊ Electronics have not fully covered the characteristics of paper books yet?
⇒The excellence and simplicity of the paper book interface⇒ Comfort that appeals to the five senses⇒ Desire to own something tangible

5-3 What is the aim of future publishing?
＊ Publishing cannot survive just by selling the product of books
Products ⇒ Process
Possess ⇒ Access＊ A service that provides the act of "reading a book“＊ Can we find perspectives beyond platform dominance?
⇒ What services can be added to selling products?

5-4 Perspective from producer• Willingness to create great content• Recognizing that not all good books sell well
• The knowledge (and common sense) of what makes a good book

5-5 Perspective from reader• willingness to read good books• Mechanisms to arouse that motivation• Promoting reading from a young age, enriching the library,
improving motivation to learn...
• What is it that you can only get from books?

5-6 Paper must continue its efforts to survive incompetition with electronics＊ Will 'non-digitized' publications become less available?
＊ Decrease in physical bookstores⇒ Can we expect new discoveries in e-bookstores?
＊ Academic information that has not been digitized will no longer
be the subject of research.
⇒ The number of Japanese researchers decreases due tothe delay in the digitization of Japanese academic papers＊ How can we overcome the handicap of being a physical being?
⇒Out of stock, inventory, transportation, SDGs...

5‐7 Does Publishing Have a Future?

★ Yes,The Future of Publishing
Has Possibilities!
★ But it is not an imitation of thepast!

Thank you for your attention.
感謝您的關注

樋口清一（higuchi@jbpa.or.jp)