Japan Music Marketing - The Music Business in Japan

Selling and Promoting Your Music in Japan
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The Music Market in Japan - How to Make it "Big in Japan"

Article 2:

The Music Business in Japan

Indie Music Culture & Record Companies in Japan

Japan has a large population of about 127 million people who are very Westernized. Although Japan has bountiful forests, mountains and open countryside, the majority of young people are drawn to the major urban centers, such as Tokyo, where trends and tastes (i.e. what's "cool") usually emerge. Metropolitan Tokyo-Yokohama has a population of 35 million—the world's most populous city.

Like in the West, there are thousands of young kids in every small town and big city with dreams of being a "rockstar". There is MTV and other music TV shows in Japan, and kids have grown up hearing and seeing the most popular mainstream artists from Japan and abroad.

Most domestic Japanese indie music is in the pop, rock, hard rock, punk, hiphop/rap, singer/songwriter, and techno/house genres.

Most of the instruments and gear used today come from Japanese companies such as Yamaha, Roland, and among many others. All the music instrument shops have the latest domestic and foreign gear and software on display. There are plenty of music schools to teach drums, guitar, bass, synths, singing, and even stage presence. As the "indie" route is becoming more popular in Japan, more schools are offering courses on the music business and the DIY (do-it-yourself) process. Clothing shops and hair salons cater to appearances. Whatever genre, Japanese can sound and look like pros.

Music shops, schools and privately-run facilities also have professional recording gear and rehearsal rooms which individuals and bands can (and have to) rent since Japanese houses are not suited for gathering and playing loud music (many older houses are small with paper walls called shoji). Besides, nobody wants to disturb the "wa" (peace) in their neighborhoods. Some of the operators of these facilities and "live houses" (read more about this in Article #3) have formed indie record labels. Some are scrupulous and charge bands high fees to produce and press their indie CD's while others are genuinely trying to help talented bands to make it big and spending money to do so.

You often see kids with soft guitar cases on their backs on trains, bikes and on the streets. Many can play their instruments well by the time they are in high school. However, due to strict school and parental rules, high school kids cannot really go out and gig at night (but like all teenagers, they sometimes break rules). They are left to perform in their high school talent show or cultural festival, or some weekend talent contest sponsored by Yamaha or such. By the time they've finished high school they have to get a "real" job and some will abandon their "rockstar" dreams while others will continue in indie bands at night after work. They will play gigs at "live houses", sell tickets, their CD's and merchandise at their gigs. Those who are serious will relocate to Tokyo to play at more "live houses" or even on the street. Bands breakup and new ones form from their scattered members. And some bands and artists will find success....Sound familiar? It's not much different than other countries except the numbers are more in Japan. Subsequently, infrastructure (online communities, support, distribution, rights management/administration) has been set up for indie artists and record labels. Now indies can access distribution and administer music rights just like the major record companies.

Every year the record labels and production companies hold auditions or accept demos. Talented indie bands and artists with a good demo, show and workable image (you must send in photos) may get "signed". However with the larger record/production companies in Japan, "signed" means you become an employee of the company and they pay you a nice salary (plus bonuses) for several years. There is little or no negotiation. But this is the way it has been done in Japan. Many things are standardized in Japan to make society run smoothly and life easier. (Even price-fixing for music products is common at all levels. That's why import CD's are cheaper than domestic ones—but that's another story). The company takes care of you as long as you do what they want. This is a dream for many Japanese kids.

Localized Japanese CD Those indie artists who don't get "signed" by a big record company may get a deal with a smaller indie record label. These deals are mainly structured around licensing or P&D (production and distribution) whereby the record label will manufacture and sell the CD's with some fixed amount or rate going back to the artist. Again, there is little or no room for negotiation. Also, there are usually little or no advances. So if your CD does not sell enough you may not see any money. (Maybe being an employee is not so bad after all.)

There are over a million foreigners who are permanent residents in Japan. Recently, record labels run by foreigners who reside in Japan have emerged. Many are bringing in the music they already know and love from their home countries. Some labels are fledgling startups with little experience and resources to be profitable while some have become relatively successful. Whether run by Japanese or foreigners, these record labels will either license, import or P&D music from foreign artists. Typically the record labels in Japan that deal with foreign artists have at least one person who can communicate in English.

Companies will offer licensing and P&D deals when it is cheaper to press domstically rather than import/ship your products to Japan. Actually most prefer to P&D so it allows them to make a CD/record with Japanese cover and liner notes—a very important feature for both the shops and music consumers (see image). Imagine shopping for something written in a foreign language!

Although there are hundreds of retail music shops throughout Japan, there are only a few (mainly vinyl record shops) that will actually carry an inventory of indie products. Most have to be specially ordered by the customer. This is alright since the shop can order it wholesale from the distributor who can have it sent to any place in Japan within 24 hours (Japan is about the size of California State and has a vast, cheap and efficient next-day delivery system). Naturally, if there are a lot of requests by customers for a certain product, a store may put it on its shelves. Larger record companies/labels employ an army of retail shop promoters whose job is to encourage retail shops to put the products of their company on shelves. Smaller record companies may only have 1 or 2 people to do this type of work. With the growing boom in the indie scene, more and more Japanese music retailers—even HMV, Virgin and Tower Records—are including an "indies" section in their stores. (Tower Records is still very much alive in Japan)

Click here to get distribution in Japan.

Nowadays, in Japan, indie record labels are also "distributors" because they can tap into the indie distribution network and get your music into the main PC, mobile and retail CD shops (not on shelves but online and special order) like the major record companies. In actuality there is another middleman or aggregator that also takes a cut, but as long as your OK with the cut the record label is offering you then it doesn't matter. You can expect to get 30% to 40% of net sales (wholesale price) when you are under a Japanese record label/distributor.

If you manage to get a good deal with a record label in Japan that will get your music in all the main PC, mobile and retail shops in Japan and who will actually pay for significant promotion then that is great. If you know your record label is small with limited financial resources to devote to you, try to cooperate and offer to contribute to some of the promotion expenses like print/online advertising, or airfare for a tour (but negotiate a higher share of sales).

Traditionally, in Japan you were either a "pro" (i.e. "signed" to a record company) or an "amateur" (i.e. not an "employee" of a record company). Recently, "amateur" has been replaced with the word and concept of "indie". The indie scene is booming in Japan with new distribution, sales, and rights administration systems set up especially for indie bands/artists and record labels.

Some indie artists can make a living playing at "live houses" and selling CD's and merchandise. Successful indie artists have sold over 100,000 units. Though rare, some have sold over 1 million units. These indie artists have signed to major labels and enjoyed a high level of success, leading some major labels to focus increased efforts on scouting indie artists (and labels) for new talent. The smaller record companies are always scouting for foreign and domestic talent.

Many foreign artists and record labels have found Japan to be a very receptive environment and a valuable source of music revenues.

*As a side note...Some of you may find your CD already in the catalogs of some Japanese shops even though nobody has informed you. Some of these shops simply buy the wholesale price CD's from CDBaby or Super D and then resell them on their website. This shows you that there are people who think your music can sell in Japan so you should definitely pursue the market further. If it is one or several Japanese customers who have purchased the full retail price CD then you know for sure you should be more serious about the Japanese market. Don't let this revenue opportunity pass by because the life of music products and bands is short.

Quick Links

Get distribution in Japan

Promotion in Japan

Find a Japanese record label to release your music

Send your demo to Japanese record companies

Do a live tour in Japan

Create a Japanese web + mobile page

Links to Live Houses (Venues) in Japan

See what foreign artists are "Big in Japan"

Articles about The Music Market in Japan - How to Make it "Big in Japan"

1. Japanese Market Opportunity for Foreign Music - If you are in the business of selling music, do not forget Japan!
2. The Music Business in Japan - Indie Music Culture and Record Companies in Japan
3. Playing Gigs in Japan - Promoting your music at Japanese "Live Houses" and other venues
4. How Much Does It Cost? - The activities and related costs of selling and promoting your music in Japan
5. Useful Tips On Visiting and Doing Business in Japan - Info and advice for visiting and doing business in Japan

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