Avex Inc.
7860・Prime Market・Information & Communication
Music Business
Avex's core segment. Delivers an integrated business spanning music content production through to live events and streaming
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (segment total) | ¥122,312 million | ¥114,574 million | ↑ |
| External customer revenue | ¥121,438 million | ¥110,255 million | ↑ |
| Operating income (loss) | ¥3,468 million | △¥1,180 million | ↑ |
| Gross profit margin | 28.1% | 26.8% | ↑ |
| Selling, general and administrative expenses | ¥30,939 million | ¥31,924 million | ↓ |
| Depreciation | ¥1,260 million | ¥1,391 million | ↓ |
| Impairment loss | ¥268 million | ¥421 million | ↓ |
Business Details
This segment covers the planning, production, and sale of music content, music streaming, music publishing, artist/talent/creator management, merchandising, planning, production, operation, and ticket sales for concerts and events, E-commerce Site & Fan Club Operations, and the planning, production, sale, and distribution of digital content. It is the largest segment, accounting for approximately 83% of total group revenue. Consolidated subsidiaries including avex entertainment Inc. and avex live creative Inc. are responsible for operations.
Recent Overview
Return to profitability from the prior period's operating loss, driven by higher live-related revenue and cost reductions
In FY2026 (ending March 2026), the Music Business expanded revenue to ¥122,312 million (up 6.8% year on year), driven by an increase in live-related revenue and strong music streaming performance. At the same time, SG&A expenses were reduced to ¥30,939 million (down ¥984 million year on year) due to a decrease in provision for doubtful accounts and a review of expense execution rules, resulting in operating income of ¥3,468 million, a significant improvement from the prior period's operating loss of ¥1,180 million. In addition, Avex Catalog Fund I LLC and Avex Song Fund I LLC were newly established as joint ventures for music-related rights, aiming to strengthen the catalog business.
Key Products
Growth Drivers
- Continued growth in live-related revenue against a backdrop of an expanding live/concert market (up 5.3% year on year industry-wide)
- Growth in music streaming revenue driven by the expansion of the paid music streaming market (up 8.7% year on year industry-wide)
- Joint venture structuring of music-related rights and monetization of the catalog business through the establishment of Avex Catalog Fund I LLC and Avex Song Fund I LLC
- Accelerated overseas expansion leveraging a US creative network through the consolidation of S10 Entertainment & Media LLC
- Improved earnings structure through a review of expense execution rules and operational efficiency gains (SG&A reduced by ¥984 million)
Risks
- Changes in revenue composition due to the structural decline of the music package (CD, etc.) market
- Risk of natural disasters and infectious disease outbreaks given a revenue structure dependent on holding live events
- Fluctuations in cost of sales ratio associated with the shift to digital streaming (cost of sales: ¥87,903 million)
- Risk of impairment losses arising in the Music Business (¥268 million in the current period)
- Risk that business performance is directly linked to the popularity trends of key artists/talent and the success of developing new talent
- Risk of infringement of held rights and impact on existing business models due to the rapid advancement of AI
Last updated: June 25, 2026