Orfium signs YouTube management deal with Japanese entertainment powerhouse Avex

15 September 2023 - Press release

High profile partnership is Orfium’s first such deal with an Asian company and signals its growth in the Japanese music market

 

Orfium (the ‘Company’), the global technology leader solving the entertainment industry’s biggest challenges around digital music and broadcast rights management, has signed an agreement with Avex Inc. (‘Avex’), one of Japan’s largest entertainment companies, strengthening its foothold in the world’s second-largest music market.

The Avex partnership reflects Orfium’s success to date in other major markets, including the US and the UK, where its clients include the world’s leading Music Publishers, Record Labels, Broadcasters and Production Music Companies. Orfium has established itself as the leader in identifying and capturing unrealized revenue from YouTube and other UGC platforms, generating hundreds of millions of dollars in additional revenue for its clients.

Japan, which continues to experience significant growth in digital revenues, has been the focus of Orfium’s global expansion since 2022 when Orfium acquired Breaker and established Orfium Japan, led by Alan Swarts who has more than 25 years of experience in the Japanese music and entertainment industry.  

While YouTube is the most popular video platform in Japan, with over 70 million monthly active users (MAU), UGC monetization is still in its infancy; many Japanese music companies have only recently changed their policy of blocking the use of sound recordings on UGC platforms to allow their use and monetization. As the Japanese music business starts to embrace UGC monetization, it will be able to benefit from increasing revenues from YouTube, which paid over USD$6 billion to the global music industry in 2022.

Orfium will become Avex’s partner for music catalog management on YouTube, working to maximize the monetization of Avex’s repertoire for rightsholders, artists, writers and composers by deploying its AI-based matching technology.   

Avex is one of Japan's largest entertainment companies, with operations in record labels, live music, animation, film production, and digital business.

Orfium CEO, Rob Wells, said: “Avex is one of Japan’s top entertainment businesses. Having entered the local market with the acquisition of Breaker in 2022, Orfium has gone from strength to strength as we continue to demonstrate the incremental value we’re delivering to our Japanese clients. The magnitude of growth of UGC in Japan is remarkable and to be selected as the tech partner of choice by Avex is a real endorsement of our offer and capabilities. We’re very proud to partner with them.”

Commenting on the deal, Alan Swarts, CEO at Orfium Japan, added: “We’re on a mission to bridge the value gap that exists across UGC platforms for creators and rightsholders in Japan. Orfium’s AI-based technology, combined with our deep local industry knowledge, has enabled us to grow quickly while clearly demonstrating the value we can deliver to our Japanese partners. We’re very much looking forward to working with the Avex team to deliver the best possible results.”

Takeya Ino, President at Avex Music Creative Inc. said: “I am extremely pleased to partner with Orfium, who is at the cutting edge of technological innovation in music and entertainment.  I believe Avex and Japan have content and culture that captivates people worldwide.  As Japanese music reaches new audiences all over the world through YouTube and other UGC platforms, it is also creating significant new revenue opportunities for creators and rightsholders.  I expect that a partnership with Orfium, with its impressive track record, will deliver great results for us.“ 

Orfium’s latest mandate represents its first full YouTube management deal with an Asian company, delivering on its ambition to power digital transformation in domestic markets through partnerships with local businesses in music, gaming, and entertainment and ultimately generating greater value for creators and rightsholders from the digital ecosystem.