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Papyless (3641) · InitiativeCopyright royalties continue to decline

Containing Increases in Copyright Fees Through Cooperation with Content Holders

First written in FY2016. 6 of 20 entries say "Restated". Latest entry: FY2026.

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ProgressHeldSoftenedWorseOtherFY2016 – FY2020-Q3OtherFY2021-Q2 – FY20262016: 120162017: 120172018: 120182019: 220192020: 320202021: 220212022: 220222023: 320232024: 320242025: 120252026: 12026
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Digital Content Procurement and Minimum Guarantee Fee ExposureA theme 5 companies write about · 5 as a headwind · 1 as a tailwind

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  1. FY2026Copyright royalties continue to declineAnnual report

    「The amount of cost of sales incurred decreased compared with the previous consolidated fiscal year. This was due to a decline in copyright royalties accompanying lower net sales.」

    Copyright royalties declined from the previous fiscal year in line with lower net sales.
  2. FY2025RestatedAnnual report

    「The Group strives to build good relationships with publishers and other content holders by working together to develop the e-book industry. At the same time, rather than digitizing existing print books, the Group is strengthening its structure for producing digital-native content.」

    The Company described strengthening its structure for producing digital-native content, while maintaining collaborative relationships with content holders, as a response to copyright royalty risk.
  3. FY2025-H1RestatedAnnual report

    「The cost of sales ratio has decreased compared with the same interim period of the previous year. This was due to a decline in copyright royalties accompanying lower net sales.」

    It was stated that the decline in copyright royalties has continued. No new collaborative initiatives with content holders were indicated.
  4. FY2024Copyright royalties continue to declineAnnual report

    「Procurement results for the fiscal year were as follows: “Copyright royalties (¥ millions) 8,031” “Year-on-year (%) 92.4”」

    Copyright royalties were ¥8,031 million, or 92.4% of the previous year's level, showing an annual decline in copyright royalties accompanying lower sales.
  5. FY2024-Q3RestatedAnnual report

    「The cost of sales ratio has decreased compared with the same quarter of the previous year. This was due to a decline in copyright royalties accompanying lower net sales.」

    Regarding the previous approach to containing increases in copyright royalties, the Company stated that royalty declines accompanying lower sales have continued, rather than describing new collaborative initiatives.
  6. FY2024-Q1RestatedAnnual report

    「The cost of sales ratio has decreased compared with the same quarter of the previous year. This was due to a decline in copyright royalties accompanying lower net sales.」

    The situation in which copyright royalties decline in line with lower net sales has continued. No new collaborative initiatives with content holders were described.
  7. FY2023Copyright royalties continue to declineAnnual report

    「Copyright royalties (¥ millions) 8,695 Year-on-year (%) 90.6」

    Copyright royalties were ¥8,695 million, or 90.6% of the previous year's level, as lower sales led to a decline in copyright royalties.
  8. FY2023-Q3Copyright royalties continue to declineAnnual report

    「The cost of sales ratio has decreased compared with the same quarter of the previous year. This was due to a decline in copyright royalties accompanying lower net sales.」

    The situation in which copyright royalties decline in line with lower net sales has continued. No new collaborative initiatives with content holders were described.
  9. FY2023-Q1RestatedAnnual report

    「The cost of sales ratio has decreased compared with the same quarter of the previous year. This was due to a decline in copyright royalties accompanying lower net sales.」

    It was stated that the decline in copyright royalties accompanying lower net sales has continued.
  10. FY2022Copyright royalties continue to declineAnnual report

    「The amount of cost of sales incurred decreased compared with the previous consolidated fiscal year. This was due to a decline in copyright royalties accompanying lower net sales.」

    It was stated that copyright royalties also declined in line with lower net sales.
  11. FY2022-Q1Copyright royalties decliningAnnual report

    「The amount of cost of sales incurred decreased compared with the same quarter of the previous year. This was due to a decline in copyright royalties accompanying lower net sales.」

    Rather than continued increases in copyright royalties, the Company stated that copyright royalties declined during the quarter in line with lower net sales.
  12. FY2021Copyright royalties continue to increaseAnnual report

    「Procurement results for the fiscal year were as follows: “Copyright royalties (¥ millions) 10,669” “Year-on-year (%) 113.2”」

    Copyright royalties were ¥10,669 million, or 113.2% of the previous year's level, showing an annual increase in copyright royalties in line with higher net sales.
  13. FY2021-Q2Copyright royalties continue to increaseAnnual report

    「Cost of sales increased from the same quarter of the previous year. This was due to higher copyright royalties accompanying the increase in revenue.」

    It was stated that copyright royalties increased in line with higher net sales compared with the same quarter of the previous year.
  14. FY2020MitigatedAnnual report

    「The level of this risk has declined as publishers and other content holders have become more dependent on the e-book business.」

    While noting difficult contract negotiations with certain major publishers and the possibility of higher royalty rates and an inability to renew contracts, the Company explained that the risk level had declined because it conducts direct transactions with numerous content holders.
  15. FY2020-Q3Copyright royalty rate continues to riseAnnual report

    「The cost of sales ratio has increased due to higher copyright royalty rates and increased production costs for content such as “Tate Comic.”」

    The previously reported rise in copyright royalty rates has continued, pushing up the cost of sales ratio together with increased production costs for content such as “Tate Comic.”
  16. FY2020-Q2Copyright royalty rate continues to riseAnnual report

    「The cost of sales ratio has increased due to higher copyright royalty rates, increased production costs for content such as “Tate Comic,” and increased translation costs for content intended for overseas markets.」

    The Company explicitly stated that copyright royalty rates continued to rise from the previous quarter. It also noted increases in content production and translation costs.
  17. FY2020-Q1Copyright royalty rate risingAnnual report

    「The cost of sales ratio has increased due to higher copyright royalty rates, increased production costs for content such as “Tate Comic,” and increased translation costs for content intended for overseas markets.」

    In contrast to the previously stated stability in the copyright royalty ratio, the Company stated that copyright royalty rates and the cost of sales ratio had increased.
  18. FY2019-Q1Copyright royalty ratio stableAnnual report

    「Although production costs for new content and translations have increased, copyright royalties as a percentage of net sales are at approximately the same level as in the same quarter of the previous year.」

    Although production costs for new content and translations increased, copyright royalties as a percentage of net sales were stated to be at approximately the same level as in the same quarter of the previous year.
  19. FY2017RestatedAnnual report

    「As competition intensifies, demand for content increases and the risk of higher procurement costs rises. The Company is containing this increase by strengthening its collaborative framework with content holders.」

    The policy of containing increases in copyright royalties by strengthening collaboration with content holders was reiterated.
  20. FY2016First statedAnnual report

    「As competition intensifies, demand for content increases and the risk of higher procurement costs rises. The Company is containing this increase by strengthening its collaborative framework with content holders.」

    The Company is addressing higher procurement costs resulting from increased demand for content by strengthening its collaborative framework with rights holders.
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