Music to Japan
(Last updated: 05 Aug 2013)
Trends and opportunities
The market
The International Federation of the Phonographic Industry's (IFPI) annual ‘Recording Industry in Numbers‘ report states that Japan is the world’s second largest music market (but some statistics suggest Japan is number one, if based on value of sales). However, the Japanese music industry is going through a period of realignment with some recent trends being rather unique to Japan.
As the majority of the developed world shifts from physical product to digital downloads, Japan recorded double digit growth of 10 per cent in the production value of audio and music videos, with CD singles in particular experiencing their third consecutive year on year increase in terms of unit production and value. Vinyl is also making a comeback with older music lovers re-discovering records and investing in new equipment and albums.
Japan was previously a groundbreaking market for mobile phone music downloads (pre-Smartphone). However, recent figures from the local labels body, Recording Industry of Japan (RIAJ) are showing a downturn for digital music sales in the first quarter of 2013 and indicate a 30 per cent year-on-year decrease. The largest declines have been in master ringtones, ringback tones and mobile-based full song downloads. Taking a closer look does soften some of these figures though, as RIAJ categorises Smartphone-based music sales as ‘internet downloads’. When looking at internet downloads, there has been an increase of 65 per cent for album sales on a unit basis and a 33 per cent unit increase for single-track sales.
Unfortunately for foreign artists, the downward trend on the percentage of non-Japanese music continues with domestic music now representing 84 per cent of the market with a mere 16 per cent being ‘international’. Industry players say that young people have largely lost interest in foreign music, and that it is increasingly difficult for overseas acts to find a niche in the highly complex Japanese music-biz ecosystem.
(Source: Recording Industry Association of Japan, 'Statistics and trends: the recording industry in Japan 2012')
The exception is the recent boom in Korean artists (known as K-Pop) finding success in the Japanese market. With the Japanese market geographically easy to access and 30 times larger than the domestic Korean market, this sector of ‘overseas artists’ is finding great success as they are able to participate regularly in promotional activities and events in Japan.
Foreign music market
Within the foreign product market, competition is increasingly fierce and in the majority of cases, non-Japanese musicians who are successfully able to secure licensing/distribution deals are those performers that have already proved themselves in another major market such as the US or the UK.
Most of the deals done by Australian artists have resulted from success elsewhere first. A band with no domestic or overseas profile is very unlikely to attract the attention of Japanese labels, promoters or venues.
Publishers
Publishers play an important role in the Japanese music market, which is not necessarily the case in other major music markets. Besides performing the traditional work of representing the interests of lyricists and composers by protecting their copyrights and plugging their songs, Japanese publishers often work with writers, especially those who are also performers, to create demos that they then shop around to labels.
Publishers tend to be divided into two main categories in Japan. The biggest, such as Fujipacific and Nichion, are affiliates of major broadcasters/communications conglomerates (Fujisankei Communications and Tokyo Broadcasting System, respectively), while others are divisions of the powerful management/production agencies that continue to churn out J-pop idol stars.
Live performance
The most common types of live performances in Japan are:
- Concerts
Top international bands usually perform at large venues such as clubs, concert halls and auditoriums. For a concert of this scale to take place, there has to be a local Japanese promoter or label involved in the organisation and ticket sales. Also, if it is to be a paid performance, the promoter needs to be qualified to apply as a sponsor for the necessary entertainment visa – a complicated and strict process. Many smaller venues do not even qualify as being ‘suitable’ for overseas artists applying for an entertainment visa.
- Festivals
Japan’s music festivals are well organised and planned many months in advance. Australian performers wishing to perform at festivals should build up good contacts with agents, city organisations or promotional companies. This is not easy and the majority of these festivals prefer to work with bands that already have licensing, or at the very minimum, some form of distribution that will provide additional ‘support’ for the artists. Unsigned, unknown bands in the Japanese market have very little chance of securing performances at major festivals. Musicians should also be aware that they should check the track records of those making claims regarding being able to get acts into major festivals. It may be possible to get performance opportunities at some lesser known regional festivals, but the return on investment may be low unless the objective is just to gain experience in the Japanese market.
- Clubs
Performances at ‘live houses’ or clubs usually operate on a ‘pay to play’ basis or work on a percentage of the door sales. Performers without licensing and on promotional tours tend to play for free but with the view that they will raise their profile and recoup money from merchandise sales. However, fees are commanded by well-known acts, or artists who are represented by a professional agent/promoter. Opportunities to perform with local bands are possible, but not profitable and unless they are professionally promoted, playing to an almost empty venue can be quite common.
- Small gigs
Smaller venues such as cafes and bars don’t tend to operate on a ‘pay to play’ system and usually pay artists a flat percentage of what they make at the door. If you only have a booking agent and not a promoter working with you, the chance of getting an audience to attend a performance is very low. The challenge is securing an audience. Without a promoter or at the very least, a strong network of people helping on the ground, it can easily end with both the venue and the artists being disappointed by small audiences. One possible solution is to start networking with local bands that might consider a joint performance and can bring along their own audience.
- Hotel gigs and weddings
Hotels, weddings and theme parks present opportunities particularly for R&B, gospel, and jazz bands. However, these artists tend to live in Japan and have an agency contract. It's much more difficult for international artists to secure this type of work, although some international agencies have regular contracts to introduce longer term artists for 3, 6 or 12 month contracts.
Opportunities
Rock, pop, jazz, blues, R&B, acoustic/guitar and gospel are popular genres of music in Japan. This is in addition to the ‘organic’ label, the nickname that has been given to the genre of Australian music that has found great success in Japan such as:
- Old Man River
- Blue King Brown
- John Butler Trio
- Jeff Lang
- Chase The Sun
- Justin Carter
Opportunities also exist in the Japanese music industry for original performers, session musicians and cover artists. Cover artists in particular are in demand for hotel contracts and tourist facilities and can sign short to long-term contracts for performing within Japan. Opportunities also exist for artists to play at Japan’s jazz festivals as well as club performances in regional areas. However, it can sometimes be a trade-off between a performance fee and the large exposure given to artists as a result of their participation in what appears to be a ‘free’ festival.
Potential customers for Australian musicians include:
- Record companies
- Promoters
- Venues
- Advertising agencies
- Entertainment agencies
- Event planning companies
- Festival organisers
- Producers
- Tourist attraction operators
- Hotels
Competitive environment
The majority of labels that are working with foreign artists have shown a strong preference for musicians who have had success in other overseas markets such as the UK or the US. With only a few exceptions (often in niche areas such as ‘surf rock’), artists who don’t have a track record in their own market and another major market are unlikely to be picked for licensing by a Japanese label.
Competition in the Japanese market is high, and only a few bands reach any form of sustainable success. This is more so with artists trying to break into the market directly from countries like Australia with an under-recognised profile in the Japanese market. Although the profile for Australian music has grown in recent years, particularly on the back of the success of artists like Gotye, having a strong track record should still be considered a pre-requisite before seriously considering approaching the Japanese market with the intention of securing a deal.
Major Japanese label buyers tend to travel to international music markets such as SxSW to check out new talent. Often deals with Australian bands have developed as a result of these third country music markets (ie. a music market in neither Japan nor Australia).
Tariffs, regulations and customs
In order for a foreign entertainer to be able to acquire an entertainment visa, a number of conditions need to be met by both the entertainer, and the organiser. The Ministry of Foreign Affairs states that “The operator or the manager of the inviting organisation should have at least three years' experience in show business involving foreign nationals.”
There are also strict requirements relating to which venues are suitable for performances, so it is best to speak in advance with one of the Japanese companies that can qualify as a guarantor before confirming any bookings. For more information and full conditions see the Ministry of Foreign Affairs of Japan website.
Artists planning promotional tours of Japan from overseas should also be aware that even if an English speaking venue has been identified and contact details provided, many venues may still request a Japanese resident as a contact before considering making a booking.
Marketing your products and services
Austrade works on a fee for service basis offshore with qualified companies and individuals that are registered as a business.
By utilising its extensive industry networks, Austrade can work with appropriately registered Australian musicians and music managers to assist with the development of effective market entry strategies. They can provide initial introductions to labels, licensing companies and industry media, and supply information on touring logistics and performance opportunities.
Market entry
Touring alone is not enough to gain the attention of the Japanese audience. Ideally, touring should only be considered if there is already interest from the industry and/or licensing/distribution agreements established. Without this, it can be extremely difficult to identify partners in the market willing and able to assist and can be an expensive endeavour for little or no long-term return.
For this reason, many bands secure a form of sponsorship or support from a company, individual or through grants in order to be able to reach the next level of success. In these cases, advanced planning is crucial to success. Having airfares and some domestic travel costs covered in advance by a grant can make musicians more competitive (if they have a Japan side partner approaching venues on their behalf).
The consensus among industry players in Japan is that personal connections work best if you want to sell your music – just sending sample CDs in the mail and waiting for a response doesn’t work. Visiting Japan or other music markets where Japanese labels are often present and making personal contacts and following through on them are the best strategies. Of course, that takes time and money.
Media
Another distinguishing feature of the Japanese music market is the important role played by print media in promoting music. Magazine racks are full of titles on specialised subjects: steam locomotives, ancient history, ‘stars’ of TV commercials, and of course there are many specialist music periodicals.
Japan is very much a print media-oriented society and print media is perhaps more important than radio for promotional purposes. Japanese people typically spend long hours commuting by train and instead of getting into the car and switching on the radio, it is much more common for Japanese commuters to get on the train and read a book or a magazine.
Links and industry contacts
Music-related resources
Recording Industry Association of Japan – www.riaj.or.jp/e/issue/index.html
The RIAJ’s yearbook, contains useful data about the Japanese music market
All Japan Concert Tour Promoter's Conference – www.acpc.or.jp
This site provides contact information for major promoters
Japan Music Marketing - http://japanmusicmarketing.com/about.htm
Website providing background on the Japanese music industry
Asian Music News in English - www.mccluremusic.com/
Backstage Pass – www.shinko-music.co.jp/b-pass
Domestic pop and rock music
Fool's Mate – www.fools-mate.co.jp/pc/index.html
Domestic ‘visual-kei’ bands.
Kansai Scene - www.kansaiscene.com/
English language information on life in western Japan (Kobe, Osaka, Kyoto etc.) including event information, music & entertainment
Metropolis – http://metropolis.co.jp
English language information on life in Japan (Tokyo) including event information, music & entertainment
Nikkei Entertainment – http://ent.nikkeibp.co.jp/ent/index.shtml
General-interest mag, with some coverage of overseas entertainment scene. Japanese language only
Oricon Style – www.oricon.co.jp
Publishes widely used music charts.
Rockin' On Japan – www.rock-net.jp
Covers the Japanese music scene, concentrating on rock acts. Monthly circulation: 220,000 (Japanese)
Contact details
The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.
Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.
For more information on how Austrade can assist you, contact us on:
Australia ph: 13 28 78 | Email: info@austrade.gov.au
A list of Austrade offices (in alphabetical order of country) is also available.