Company: Sony Music Entertainment

Info

Sony Music Entertainment (Japan), often abbreviated as SMEJ, stylised as SonyMusic in television commercial messages and also known as Sony Music Japan for short, is Sony's music arm in Japan. SMEJ is directly owned by Sony Corporation and independent from the United States-based Sony Music Entertainment due to its strength in the Japanese music industry. Its subsidiaries including the anime production enterprise, Aniplex, which was established in January 1997 as a joint-venture between Sony Music Entertainment Japan and Sony Pictures Entertainment, but which in 2001 became a wholly owned subsidiary of Sony Music Entertainment Japan. It was prominent in the early to mid 90's producing and licensing music for Anime such as Roujin Z from acclaimed Manga artist Katsuhiro Otomo and Capcom's Street Fighter anime series.

Until March 2007, Sony Music Japan also had its own North American sublabel, Tofu Records. Releases of Sony Music Japan now appear on Columbia Records or Epic Records in North America.

Releases on Columbia Records in other countries appear on Sony Records in Japan because a competitor, Columbia Music Entertainment, owns the rights to the trademark there.

With Sony Corporation of America's buyout of Bertelsmann's stake in Sony BMG, Sony Music Entertainment Japan stepped in to acquire outstanding shares of BMG Music Japan from Sony BMG, making it a wholly owned subsidiary of Sony Music Japan.

Sony Music Entertainment Japan was officially incorporated in March 1968 as a Tokyo-based 50/50 joint venture between Sony Corporation and U.S. conglomerate CBS to distribute the latter's music releases in Japan. The company was incorporated as CBS/Sony Records and with Sony co-founder Morita Akio as president.

Ohga Norio was part of the management team from the formation of the company and served as president and representative director since April 1970. In 1972, when CBS/Sony was generating robust profits, Ohga was named chairman and at the same time gained further responsibility and influence within Sony. He would continue to work for the music company one morning a week. In 1980 Ozawa Toshio succeeded Ohga as president. In 1983 the company was renamed CBS/Sony Group.

In January 1988, after more than a year of negotiations, Sony acquired CBS Records and the 50% of CBS/Sony Group that it did not already own.

In March 1988, four wholly owned subsidiaries were folded into CBS/Sony Group: CBS/Sony Inc., Epic/Sony Records Inc., CBS/Sony Records Inc. and Sony Video Software International.

In April 1991, the company was renamed to Sony Music Entertainment (Japan).

Matsuo Shugo was named new president in January 1992, replacing Ozawa Toshio, who was appointed to the post of chairman.

Overall sales for the fiscal year ending March 31, 1991 were 83.8 billion yen with a pretax profit of 9.2 billion yen.

In June 1996, Kunugi Ryokichi became new president. Matsuo Shugo was named chairman.

Maruyama Shigeo was appointed to the new post of CEO on October 1, 1997 and replaced Kunugi as president in February 1998. As of 2007, Kitagawa Naoki is the current CEO of the group.

The company's leading role on the Japanese market was increasingly challenged by labels such as Avex (where SMEJ formerly owned 5 percent of shares). Net sales for the fiscal year ending March 31, 1997 were down 10% to 103 Billion Yen, while net income fell 41% to 7.7 billion yen. The market share at that time was less than 18%. In August 1997, Dreams Come True, till then Sony Music Entertainment Japan's best-selling act, signed a worldwide multi-album deal with competing U.S. label Virgin Records America.

Since then it was said that SMEJ ceded to Avex's challenge, but SMEJ bounced back and regained leadership from its indie rival until 2012. SMEJ netted 22.4 billion yen for 1H 2012 and 14.3% of the market, second behind Avex (24.95 B yen, 15.9%).

Source: Wikipedia