Ladies and gentlemen, welcome to this panel. My name is Alexander Abramoff. I was born, raised and educated in Japan and I’ve been with the Japanese music industry for more than 30 years. I now run an entertainment consultancy in Tokyo called AIA International. This year again, I have the pleasure of moderating this panel, the second round of “How to succeed in Japan”.

Similar to many markets around the world, the record market in Japan in the year 2002, underwent some difficult times.
Despite the difficulties, however, its market for international repertoire grew during the year by more than 3 percentage points over the previous year, and its share in the overall market now exceeds 25%. Also, the income of JASRAC, the countryﾕs copyright society, in 2002 stayed nearly at the level of previous year.

Japan continues to hold its position as the second largest music market in the world. Regardless of its current economic difficulties, which I’m positive that the country will overcome, its 120 million plus people are unquestionably affluent when judged from world standard, and they possess considerable disposable income. At the same time, they are highly educated and are well informed about new musical trends happening around the world. They are known for their quality and fashion consciousness. They are also known for their curiosity, and are ready to try to digest new musical styles coming into the country from various parts of the world.

People in Japan whole-heartedly welcome and readily accept international artists and their performances either pre-recorded or live on stage.
Fans in Japan are very loyal, and the longevity that international artists can enjoy in Japan is fantastic. International artists in Japan can be successful not only with their record sales; they can exploit their opportunities in its vibrant concert market. Merchandizing sales at concerts can be significant. Once broken, there are opportunities for international artists to do TV commercials in Japan where terms and conditions that can be quite attractive for the artist.
In addition, there are also opportunities for international artists to do TV drama themes that will take them to the next level of success in the market. Thus, Japan can present vast opportunities for international artists if the artists themselves, their managers and their licensors are ready to face its challenges, and are prepared to spend some time on this extremely competitive market.
Today, on our panel, we have record executives who are working with and on international acts daily in Japan. Most of the panelists come from local record companies that do not automatically receive international products from their headquarters. They have to go out and aggressively look for international artists and product. They are the ones who select and decide which international artists to sign what international product to put out into Japan.
These are the people who are literally opening doors for international artists, and are guiding their way through the market. I hope through our discussion today, you will find some valuable hints that may help you to better understand the Japanese market and how to approach and work the market.
Now, let me introduce to you our distinguished panelists. On my immediate left, we have Haji Taniguchi, Director of International Operations at Avex. As you may know, Avex is the biggest local independent in Japan. Next to Haji, we have “Z” Zaitsu, General Manager of Imperial Records. Imperial Records is a label of Teichiku Entertainment, which is a major record company in Japan. Next to Z, we have Isao Nagata, Division President of Columbia International, a division of Columbia Music Entertainment. Nippon Columbia changed its name to Columbia Music Entertainment, after it was acquired by Rippelwood, an American investment company, a few years ago. Next to Isao, we have Hiroji Eshima, Manager of International, Rights Exploitation department of Toy’s Factory. Toy’s Factory is a successful local independent, having some very successful local artists on its roster. Lastly but not the least, we have Frank Takeshita, General Manager of Zomba Records, Japan. Zomba has been doing fantastic with its international artists in Japan and is just releasing its first local act in the country.

OK. In kicking off our discussion today, I would like to ask each panelist to give his recent success story with an international act in Japan. Can we start with you, Haji?
HT: Yes. I should speak about Trance music in Japan. Trance as a general music used to mean the music that doesn’t sell. But we gradually try to grow it in Japan through events, street promotion, and also to introduce to key DJs, as well as hit tunes mainly from European territories. Last year it came to a point where we can say that Trance is selling, making actual business for us. So, the Trance is the most recent success story as you just say. This year, we again, we are concentrating on Trance music to bring it to the next level.
Is that OK?

So, it’s definitely setting up a trend?

Yes. I think so.

Z, your story?

Success story?

Success story.

There is none.

Ha, ha

Actually, you know, when I was nominated to this panel, which was November, or December? …Actually I was so worried because there was not any success story I can tell you. But since December, there is some light coming toward me. So, probably I will show you some good example for your approaching to a Japanese licensee.

Thank you. Isao?

Ah, yes. With Columbia, you know, we just set up the international division as of December 21st, it’s less than a month. So I should say that my job is to let you know that we open the door for international partners. But my history, as you know, before I joined Columbia — it was just one year ago — before that, I was a head of International (division) of BMG Japan, running International Division of BMG. So, I know the good side and bad side of majors. Then, I go back to independent. Because, before BMG, I worked for Pony Canyon. It was wonderful year, because it was true independent company at that time. So, well, maybe in this time, we should discuss the good side of independent company and the bad side, weak side of independent. But independent is really fun for me.
Well, the success has yet to come.

(laughs)

Ladies and gentlemen, you have another outlet in Japan. Now you know that. Hiroji?

Yes. Not so many I can think of. Alex-san just mentioned, we had a rough time, rough year last year. And not many titles achieved the certain level of sales. But maybe one I can mention is the Brian Setzer Orchestra Best Album, which achieved the 100,000 mark, which is very good for international repertoire in Japan. And the reasons behind its success are due to the TV tie-in, TV commercial deal, and also the exclusivity we had. No where else did the album come out yet.

So, the TV commercial was the key for your success?

I think so… Yes. That was the Pepsi TV commercial which featured Ichiro.

That was a very popular TV commercial in Japan. Well done. Frank?

Frank Takeshita of Zomba Records. Among the panelists today, I think I’m a little different because we have a very good supply of good artists for Jive label. So　talking about the success stories, I would like to talk about what we have on Jive. And in this case of course, we need to talk about, first, the Backstreet Boys. The Greatest Hits album was released about 2 years ago, in October. We shipped about 750,000 copies and presently it’s now about 1.3 million which I think is a very good figure. After the release, we had them come to Japan for a Dome tour, which we did 3 Tokyo Dome shows and one in Nagoya Dome and Osaka Dome, which involved about 250,000 people to come to the show. And I think it also set a record as an international artist.

And in the beginning of the year 2002, they were chosen to be the Best Artist at the Gold Disc Awards, which is a wide, well-known award in Japan. And we think, in a way you could say that, 2001 was the year of the Backstreet Boys.
And also I would like to speak briefly about Britney Spears. We released the album almost at the same time. I donﾕt know why Jive does it to us but we released the 2 biggest albums at the same time. For Britney Spears, we shipped about 150,000 which is now almost a half a million. We marketed these artists over a long period, by using singles releases etc. By the way, it depends on situation if you release a single, but in her case, we wanted to get a lot of airplay so we released a single.
In April last year, she came to Japan to do a Tokyo Dome show. As being a small company like us, I think it is unusual to have two artists this big. But that also involved about 50,000 people to come to the show.
After that her movie called “Crossroads” started in Japan. While she was in town, she did as many appearances as she could. We got every TV show that we could, as much as her time would allow. We also got very good press interviews. After that, we still kept pushing her. She appeared in a cameo appearance in an Austin Powers movie whereas we pushed another single at that time. And in the end of the year, we released a gift package, which sold very well too. We also did a TV commercial with X Box using one of her songs. And in the beginning of this year, she was chosen to be one of the Best Female artists at the awards at Bunka Hoso, Bunka Radio Broadcasting, which is, I think in a way we can also say that 2002 was the year of Britney Spears.

For this year, we really want to concentrate on our domestic artists, and by the end of the year, I’d like to really say that 2003 was the year of our domestic artists. I’m here in MIDEM this time not only to speak on the panel today, but to also look for tracks for our first Japanese artists. The singles were written by Jorgen Elofsson and Max Martin who Iﾕm sure you know that they wrote the songs for Britney Spears and the Backstreet Boys. So if anyone in the audience, thinks you have songs that you would like me to hear, that’s one of the reasons why I’m here, so please get in touch with me after the panel today. Or please drop any music at the Japan booth. I’ve been talking too long?

(laughs)

That’s fine, go ahead.

As for licensing products, I have to let know that we’re not aggressively looking for licensed deals. But there’s a few that we did last year. We licensed a Richard Marx album. We did a rock artist called Dishwalla. And we licensed about three albums of Cuban tracks. And I hope this also gives you a guideline on what I think would do well in the Japanese market.

Thanks Frank. So you definitely had a good 2002, and you’re ready to tackle 2003. I can see your boss in the audience having a big smile on his face.

My managing director of Zomba International is in the audience and it makes it very difficult for me to speak.

(laughs)

Yes, please?

I have just one question to the audience. How many people would like to or are allowed to license your product to us? Can you raise your hand? Is that all? Can you do it again? I didn’t see it. Oh, not too bad. Thank you very much.

OK, before you can start having success with your international act in Japan though, you have to go out and find the act. Now let’s talk about where and how you source your international acts. Z, we know that the Japanese market very much reflects what happens in the US and the UK. Do you primarily go to the States?

Well, I do. But I don’t care what’s happened in the UK or the USA. I pick up artists that I like to listen to, or I like to play at radio stations. But I found out that the most important thing to find out the good music is using or build up the human network. Whenever I visit an established management, I always hear the same names. Some of the guys here. His human network is incredible. He goes anywhere and anytime and his name is everywhere. I shouldn’t mention now but I’d like to do the same thing. That’s the most important thing.

So it is very important to build up this human network?

Yes, that’s right. Especially, like in Australia or Germany — especially. My cup of tea is punk music. In Germany there is a wonderful new band which nobody knows in Japan or even the United States. A punk band in Germany? Who cares! Something like that. But they are wonderful.

So you’re really open?

Oh yeah. And even Norway. It’s a small country — I’m sorry to say that, but they have a wide range of artists, wonderful.

That’s good to hear. Isao, you feel the same? Not only from the US?

Yes, as I said we’re not majors, right? So, if it happens in the States or the UK, it helps us. But it is not necessary for us, because we have to compete with the majors with brand new ideas, brand new organization, a brand new marketing point of view, right? So it happens.
I don’t care if the artist had a success story in the US or UK. Of course it is one of the issues, one of the factors but it is not all. It is just one of the factors and we totally open the door for everywhere. Even in Asia, South Africa, South America, everywhere, if the music fits the Japanese market. If I can believe.

It is very important. Hiroji, do you have representatives who are based overseas who look for acts on your behalf?

We used to have an office in Los Angeles about two years back. But it didn’t work, so we closed it down.

So actually you’re the one who travels around the world?

Not really. We have several A&R guys, and they are into different sorts of music. And they pick up some good stuff, then we negotiate.

Frank, do you find imports an important source to find a new talent?

Yes. I would always like to look into the stores to see what is coming in. I don’t think it is really important now where the product comes from as long as you make a really good marketing plan and market it right. I think that’s what is really important. It doesn’t really matter where it comes from.

Haji, do you actively get in touch with those labels, which are not represented in Japan on a regular basis?

Yeah, we do that every day, every night. Avex actually has a history of trying to find the right music for Japan before anybody else does, otherwise we couldn’t survive. We find the music before anyone else, and we contact the relevant labels before anyone else. If we waited 24 hours, then there could be bigger major companies chasing the same music. So, yes, it is important that we keep contacts all the time.

Independents are very active in Japan in that sense. Z, are you in touch with management companies directly?

Ah, yes quite a lot, quite a lot.

Travel around the world, too?

Yes. About that, can I say some more?

Sure.

The interesting thing these days is the management of publishers these days, they send MP3 file for listening, that’s amazing. This is an issue of conflict for us. But it is an amazing thing. I can listen to MP3 straight away, and I can reply to them yes or no, that’s amazing.
Another thing that Frank was saying about import CDs. That is as you know a quite important new source but at the same time we use as a tool marketing research or pre-promotion. When we release our own manufactured CD, we always import the finished CD from the licensor which shows us how the market reacts or not. Often the DJ or programmer goes to HMV or Tower. They find out the import CDs, they say if it is good or not. They respond quite often.

So you use imports to test the market?

That’s right.

And also to create the buzz in the market? Isao, Haji do you have any comments?

Yeah, this happened recently. It actually happened a couple of times recently. In both cases the retailer imported a good number of imported material before we signed the deal. We signed the deal knowing that there are some imports already in the market. We thought that import CD would work to test the water just as he said. But what happened was the import CD didn’t sell at all because there was no promotion behind it and there was nothing happening in the original territory at all. So the dealer imported about 300 or 500 copies of the imported CD, one or two just sold. When we approached those dealers with the Japanese pressed CD with a promo plan and everything, the reaction was very negative. So we had a belief for a long time that imported CDs kind of work as a promo tool but we just realized that sometimes it can work negatively.

So very often it is said that imports are a threat but not necessarily. Isao, are you in touch with lawyers?

Yes, of course attorneys and management and labels everywhere. That’s my main job. That’s one of my main jobs. Why Columbia has no success stories in recent years is that nobody knows that Columbia as an international division. That’s the main reason. And we’re not active. Now as I said we’re a totally different company. In my track records, actually before BMG I worked for Pony Canyon in Los Angeles for 7 years and trying to keep in touch with attorneys, label managers and the management companies. So that’s my treasure. I try to keep in touch with attorneys and management from big to small. Not only for licensing deal. Sometimes I’m happy to make a joint venture deal for production. So there are various ways, it depends on the artists, it depends on the situation. But keeping in touch with management or attorneys is very important, I think.

So it is important for licensors to be in contact with lawyers on their side?

As I said, it is a relationship with many people, a good relationship.

Do music publishers assist you in finding new acts? Anybody would like to comment?

Yeah they do. I’m wearing two hats. I’m Business Affairs for a record company as well as…Yes, publishers do work to find the right artist and guide them to the right Japanese record company knowing which record company is good at what kind of music and what kind of promotion. So, in most of the cases where a publisher approaches Avex, they do know that the material that they are bringing to us is suitable for our marketing plan, and what we are good at.

Anybody else who would like to comment? Hiroji? Do you work closely with music publishers? Do they help you in finding new international acts?

Like Haji of Avex, I happen to be in charge of both label and publishing. And yes sometimes the publishers provide us with good information of promising artists. But for Toys Factory, we mainly find artists through products.

So you listen to a lot of imports probably?

Yes we do.

While building up your international artists in Japan you obviously have to work very closely with licensors. What sort of frame of mind, so to speak, do you expect your licensors to have in working with Japan? Isao, would you like to start?

Well, I think it is not only in Japan but in your country or your territories. As Alex-san said, the connection between management, the provider and licensee should be close, and should be, how do I say — a win-win situation, right? So if we have big sales, everyone should be happy. But you know, well, it is a general matter. And for the details, the market is totally different from the state or UK. For example, we have very few radio stations, even in Tokyo. And they are not formatted, right? And so, they play any kind of music, 24 hours. And as Alex said now, international repertoire is not decreasing, but only 20-25% (market share). So we need a topic to make spins everyday. So it is up to our international manager and it is up to your manager of your international division how to provide us with an update.

Frank, what frame of mind do you expect your licensors to have in working with Japan? Like a long term strategy I guess is very important. You know Japan is the second largest music market.

They have to be really flexible on the ways that are done in Japan. Like for instance, promo tours, interviews. Bonus tracks, changing artwork, whatever it be, they will have to be really flexible on what we think will be best.

Flexibility is very important. I think it is really important that licensors really listen to what licensees have to say about the market. In that sense, I think communication is very very important. Z?

Yes, as you said, regular communication. Especially new deals, both sides don’t know each other. I like to talk not just about music business, something like your company, your friends or your family whatever, then I can figure out what is in your mind at the same time. I’d like to tell my family or my company or my colleagues then you can figure out what I’m trying to do and what kind of environment I’m working in. So I think there are a lot of aspects where you can understand each other. That’s the basic thing apart from music.

Haji?

There are several key issues for example the…I’ll start with the most important issue. If you have a deal with a Japanese company and if you want Japanese to be able to work the best for you, then you should let them think that you are only looking at the Japanese market, and you don’t really care about other territories. Japan is a very fast moving country, and therefore we tend to change our strategies very quickly. The more quickly we change our strategies, that means we are more serious about your material. Therefore, we end up asking a lot of our licensors. But you should think that that’s a good sign. If you can let your licensee in Japan think that you are only looking at Japan then they would work their best, a 100% for you.

You said you ask for a lot from licensors but what sort of things do you ask for?

Well we want the artist to come to Japan quite often, if necessary. We want, it’s a usual thing, we want bonus tracks to be added to CD releases. We want to release our CDs in advance of any other territory. All those things work to add extra value to our releases. The market appreciates that.

Don’t they say that… Sometimes, licensors say that they are afraid of imports, exports from Japan?

They do.

What do you say to that?

Well that’s when you have to show your faith to your Japanese licensee, and let them think you are only looking at the Japanese market. There could be Japanese CDs imported into other territories, and that happens all the time. In reality the quantity is actually very small, in many cases anyway.
However, the impact of the fact that there are imported CDs into other markets always remains. If you want to protect other territories you should be careful. But as far as the actual business is concerned it is very small negative impact to other territories.

I think you should also mention that because the retail prices in Japan are relatively high, by the time they get to overseas territories they really become collectors’ items as they are very expensive. In Japan we have a problem which is vice versa. Imports very often come in faster, and they are sold at cheaper retail prices because they are not subject to resale price maintenance law, which means that prices on imports can be discounted. But locally manufactured CDs are subject to resale price maintenance law, and their prices cannot be discounted. If it says 2,500 yen for an international CD, then it is sold at 2,500 yen no matter where you go in Japan. So the two situations are quite different. Anybody would like to add anything? Frank?

I think that the flexibility is really the key that all licensors should be aware of. Our Jive label is very flexible to that. They would give us bonus tracks all the time. Depending on who the artists is, we would look into new pictures, new jackets which is very important to really market the artist. We need a picture that the Japanese audience would relate to, but it needs to be cute or cool. So I really think that everyone should be very flexible.

Frank, how about the sequencing of tracks? Do you tend to alter that?

Yes. It depends on…when we receive the material and if we don’t think the first track would work in Japan we would look into other tracks. In Japan, you have listening booths, and when the people go into the stores and listen to the tracks they would tend to check out the first, second maybe the third song but they wouldn’t go through the whole album unless they really like the artist. So we would change the sequence and use another track as the first track to make it easier to get into and make the album more catchier to the Japanese audience. It also depends if you choose on a different single. As you need to decide if would want to live without a video for their first single. We do have MTV in Japan, and there are other video outlets but it’s all on cable. It is really important for international artists but you can’t really break an artist through those kind of channels. So as long as you can really play the track on radio, sometimes you need to have the guts to decide if you want to live without a video or not.

Hiroji, we’re talking about the importance of communication. Are you happy with the quality and volume of information that you are currently getting from your licensors? Do you think there are some areas which could be improved?

It depends. Some we have good communication with and we have long standing relationships. And some are difficult to deal with, not enough information is supplied.

When you say not enough information what kind of information do you need more of?

Yes, it’s crucial.

Z, would you like to add anything?

Just one more practical tip for you. Don’t hold your production until everything is completed. I like to listen to any product which is not finished, unmastertered, a rough stage whatever. Even in artwork. Then probably I am able to give you some idea about how to change the arrangement. Then we can work together so happily and smoothly. That is very practical. Probably an artist doesn’t like having my comments or my advice. But if you want to succeed in Japan, do accept it, do let them accept it.

So Z, in other words, you tend to give a lot of input from your side as to how to really tailor-make a track for Japan?

Exactly, yeah. Even the sequence too. I’d like to choose different tracks as a single.

Plus I think the key here is flexibility really-from the side of licensors. Their flexibility is very important. Isao, would you like to add anything?

Yes, that’s correct, flexibility. The reason why we ask for bonus tracks or change the artwork, or change the sequence, request interviews, more photos, blah blah blah, is that the goal is to have a big success. It is good for you, good for us, good for the artist, everybody should be happy. So the target, goal is the same.
t is like a natural human being. If a boy and girl meet for the first time they need a lot of talk to understand each other, right? And if they fall in love they don’t need a lot of talk, they understand what he wants, what she wants and they’re happy to do that, right?

Yes, that’s easy to understand.

But if they hate each other, bye bye. Go to another boy, go to another girl. It’s a natural human instinct.

Haji, would you like to add anything?
Now, let’s talk about some of the qualities that you look for in international artists. Frank, do they have to sing in English, or can you break artists who sing in other languages as well?

Ah, English would be better. But not always, I see other artists doing well that are French artists. Maybe in the dance field there would be more flexibility on the language. Recently in Japan a lot of old old French pop tracks were used in commercials and is selling very well, in which is singing in French of course. So I don’t think that it will be really necessary. It depends on how you would like to market the track.

But it’s more difficult if they would sing in some other languages?

Correct, yes. As I mentioned though in the beginning we licensed a lot of Cuban tracks in which we are going to use in compilations I am hoping this will do very well too. And of course they’re singing in…, whatever language that is… (laughs), Spanish. OK, thank you!
Anyway, they’re really good. Todays market is changing a lot and it would be very difficult to market the Cuba music traditionally. So we’re kind of marking this as more to a grey zone, to people who are floating around just listening to whatever they think is cool.

Anyone else has any comments?

It doesn’t have to be English, but if it is in English, it has an advantage because of the popularity of the language in Japan. I don’t mean to say that so many Japanese do understand the English language when it is sung but some key words tends to get into our ears. It is easier to be wanted.

Do they have to have a record deal, Haji, in their home country?

No, not really. For example, since the foundation of the company, Avex has been releasing this compilation series called “Super Euro Beat,” also known as High Energy. This was once huge in Europe I think but it kind of faded away. We kept releasing it for the past 12 or 13 years. So nothing is really happening, not only in its home territory but also in any other territory in the world. But, yes, we are doing it and it is a good seller. It could be a very special case but that kind of proves that it can be really Japanese tailor-made music from another territory.

Z, how important for you is their success in their home territory or in other territories? Or you really don’t mind if they are successful in their home territory or not?

Yes, that’s right.

Both, if it fits for the Japanese market, as Z said. It helps if something happens in their home countries. As I said, if they have a success in the UK or US or in their own territory, it helps. And if they have a record deal in their countries, yes it helps, because they can provide us with more details, right, fast. If they don’t have a deal, if they don’t have management, it takes time some times. That’s the key. I don’t care if they have deals or success in their home country, that’s tiny. Rapidity is the key, flexibility and practicality.

Hiroji, do you agree?

Yes and no. But practically we handle through products because it is much easier to be recognized. Otherwise if you have a very special channel you could get that sort of information regularly but we don’t have that sort of channel. So maybe it is better for the records to be released in the local territory.

So it is helpful if they have a record deal in their home country and some success hopefully?

Now let’s talk about repertoire. Haji, is there any specific genre of music that you are looking for? I know you are looking for something that is commercial.

Um, well as I said before Trance is something that we will be concentrating on this year again, so any good Trance material would be welcome. Other than that we are really open widely, and if we feel we could do something with the material that is brought to our attention then we would be happy to give it a chance.

Z, same question.

At the moment I’m looking for punk music. As you know in the beginning I said, with some success I can see…I think I can show you. Can I do that?

Please go ahead.

I put out this compilation CD last December. A new, unknown band unknown anywhere, probably known in some territories but almost none. They were singing pop rock, famous well-known tracks. You know very much a punkish arrangement. Sales have been increasing so much. But that’s not my main issue. One thing, I put out this compilation. I’d like to make a deal with certain bands separately. Then to establish a certain artist as a punk band. That’s my dream.

Compilation album has been so successful in Japan. But my way is a little bit another way. At the moment, the best selling compilation in Japan is compiled from a lot of hit tracks but my way doesn’t have any hit tracks in it.

Did you use a special pricing strategy?

Of course, yes, very cheap. That is 1980 yen. The normal price is 2,200 to 2,500 yen, so 500 yen cheaper.

So you’re letting people to hear.

Yes, that’s right, as a sampler. We don’t make any profit.

(laughs)

As of now.

Officially, yes. So, if you have any punk products or whatever, talk to me later.

Isao, how about you?

I welcome any kind of music, as I said, we’ve just set up the division. English, French, German, or punk or rap or pop music is welcome if we believe. Columbia is the oldest record company in Japan, founded in 1910. And of course, I’m not the original member (laughter) believe me.
We have a bunch of sort of country music for domestic repertoire but country is not good for international. That’s the key. So as I said, if I believe, I don’t care. I don’t want to do the same thing with majors with these guys. If they try to do pop, I would rather not do pop.

That’s a good point. Hiroji? Is there a specific genre of music that you are looking for?

Basically we are open to all sorts of music as long as it is good. Though we rather specialize in alternative and punk stuff.

Frank?

As for Zomba, I think we have a very good supply so we are not really looking for music but if we were to do a licensed deal of course it would be better to do an established artist. Or I would think that I would be interested in doing a lot of rock artists, maybe punk too as everyone said. But I still think there’s a very good market for rock artists. Concerts are very good too, for that genre.

Z, how important are melodies for you? We know that Japan is a very melody oriented market.

In case of punk?

I’m not talking about punk. I’m talking about the market in general.

Yes, I think so. I don’t disagree with you. Melodies are so important but from my point, not in my case, sorry.

Would anybody like to make the point as to how melodies are important for the Japanese market?

Yes, very important.That’s one of the reasons why we’re working with the Swedish songwriters for our first domestic act. For some reason they have a really good melody….I don’t know why, but as you can see every couple of years, they have a worldwide selling artist.

Abba was been very successful.

Abba, Ace of Base — and Britney Spears, Back Street Boys, as I mentioned, all their hits were written by Swedish songwriters. So melodies are very very important. But at the same time there is a lot of good hip hop music that is coming into Japan right now from the US side. The trend, when you look into the fashion of the kids, everyone is imitating the clothes style. So I think that there is also a good base for urban.

So you think you will continue to work with foreign writers in making songs for your local artists?

Yes, as much as possible.

Now how about lyrics? How important are lyrics for you? Hiroji?

Um, the lyrics. Personally, I don’t think that lyrics are important for us. For domestic artists this is very important. In English I don’t think that Japanese can understand what the lyrics mean exactly.

So, hopefully more emphasis is placed on melodies, if one were to choose between melodies and lyrics.

Er, yes.

Haji, any comments?

Yeah, I agree. The melodies have a more important role. But lyrics, not necessarily the meaning of the words but the rhythm of the words helps to sound the music much better. The rhythm of the music and also some key words that can be heard easily are the keys for hit tunes.

Let me ask you this one: Is there any type of music, a genre of music that is more difficult to promote in Japan?

Country, jazz.

(laughter)

As soon as something is tagged “country”, it is very difficult. I have my own experience of trying very hard to break Shania Twain in her early days in Japan because at that time she was tagged “country”. As soon as something is tagged “country,” it is so difficult.

But I think at the same time for instance Faith Hill, Shania Twain, are not really going too deep into the original country style …in those days there was only the “very country-ish” style, but they are now more pop oriented now. Plus, I think they’re doing very well right now in the Japanese market, right?

Right. Let me say that, with country, there are two faces. The first one is the serious good old country and that has no chance in Japan. In traditional country music the lyrics are more important than melody and that is probably why it just doesn’t work in Japan.
The contemporary county, as long as it’s not tagged as “country,” then it has a chance in Japan. But if it is tagged with “country” on it, then it only creates negative feelings.

Z, what do you think?

Yes, country… I think so. There is no cowboy in Japan.

(laughs)

Isao?

Yes, if we say it is country it could be more difficult. But we try to find a way. If we have some routes, right? Country has been difficult for maybe three decades, four decades but it may be changed, right? As somebody said, country sometimes is not real country music. But people try to categorize, right? In the retail shops, or the media. So if we can change something, it could be a different situation. If country music is going pretty well, we should expand the market, right?

As Shania started to be categorized as a female vocalist, her sales started to go up in Japan. So image is very important.

About the jazz artists, I agree that is it difficult to really break but there is a really good market for jazz too, I would say. We have the Blue Note in Tokyo, and it always full of people. I think a vocal style of jazz would be easier to market in Japan rather than instrumental. But when I used to be with the Warner group, they had a really good jazz label on Atlantic and MJQ albums always sold very well. So, traditional jazz, it depends on the artist but…

I think we still have a very healthy jazz concert market. A lot of jazz musicians, they come to Japan to tour. Hiroji, any comments you would like to make?

Not really. I was curious about just as Frank said about jazz, and Alex-san also mentioned the Japan is a good market for shows, jazz shows. Do they buy CDs? They come to the shows but do they buy CDs as well?

I think it really depends, if they really liked the artists. As you say, …he people who come to the Blue Note is for the atmosphere they want to really have fun with. But this is also based on that they think the artist is good or it they already bought a CD of the artist, and in this case they would naturally want to see the artist perform live. So it should be linking in some way. And if a person who would not be aware of the artist, was taken by a person…since this person would never go alone probably, you would go with your boyfriend, girlfriend, or wife. It depends on this other person who doesn’t know the artist, if he or she would be interested or not in buying the CD.

What musical trend, Frank do you think is forthcoming in Japan?

Musical trend? Man, if I knew that then…

(laughs)

I think as I said there’s a very good market for hip hop. But I think the hip hop style is changing. In Japan, If it has more of a singing melody within the song rather than just a beat, it would do very well. I think that would still do very well throughout the year. Apart from that, nothing really comes to mind on what would be good.

Hiroji, what do you think? What is forthcoming in Japan?

I can’t think of any specific type of music though I feel in London lots of things are going on. Last night I had a meeting with an English Label. He has The Beatings, that’s from England. And some similar types of music in New York as well. It reminds me of the late 70′s or early 80′s where New Wave was happening, I feel the same is happening in the UK.

Isao, what do you think, what’s coming up?

I want to know. I think it is many. Not like the old days, kids have their own lifestyle, right? It is not so much like the old days. So even majors cannot control kids. They know what kind of music they pick up. They know what kind of music they like along with their lifestyle. So, that’s the key. I should say these music or catalogues are welcomed to sign, so come to me.

Z, do you think the market is getting more segmented?

Which one?

The market is becoming more segmented for different genre music?

Well Iﾕm not sure about it because I don’t care the genre. Because what kind of trend is coming, that was your question, not to me. But genre does not matter to the consumer, I mean listener. I think not only for Japan but anywhere in the world, I think the next trend should be the product which is attractive to age 40′s or 50′s who have been in the 80′s when they were at college. They enjoy Duran Duran or whatever big hit 80′s pops. They know those hit songs. These days they don’t go to the record shop, they don’t listen to any radio but they’re quite hungry for music, I’m sure. So we should release or we should present those products to those people. So it doesn’t matter about the genre but it depends on how to make a presentation. That is a key issue.

A lot of record companies have been doing exactly that here in Japan especially in the past year. They’ve been trying to exploit the adult market, so to speak. That was one of the reasons why we had so many compilations put out in the market place. Haji, would you like to make a comment?

You are talking about if you should send it to a record company? Yeah, you should try all the doors, actually. You should send it to record companies; you should send it to publishers. But, most important thing is you should address it to a particular person, not to a company.
We receive so many samples every day. And we actually do listen to all of them but to be honest I tend to give priorities to the ones that are sent from the names that I can recognize. So if you know somebody in Japan whom you can trust then you should submit the material to that particular person.

So this exchanging of name cards is very important?

Very important, yes.

Z, do you have to receive a finished product or will a demo be sufficient?

I think, as I said before, in my case it is not necessary. A demo is fine. But not scores.

Isao, is a demo sufficient? You don’t have to have a finished product?

Yes.

Besides music, what do you have to receive in a promotional kit, Hiroji? Do you have to have a video?

It’s not necessary. Well, music is enough, I think.

Photos, bios?

Well sometimes those materials help but the music itself.

So it is very very important that the music should be sent in a proper form?

I believe so.

Good. And that promotional kit should be in English, the information, or it could be in any other language? Spanish?

(laughs)

In English would be appreciated.

Frank, how is the new material sent in from the headquarters, for example, evaluated by your company?

We have each week a series of release meetings. For instance in the first week the product managers will all sit together and schedule down on what we would like to release. By the way, we schedule a product a long way ahead. We are now talking about May right now. That is a style we have in Japan, there’s a lot lead time whereas you need to schedule 3 or 4 months ahead.
And in the next meeting we would sit down with the publicity team to talk about how to market the artist. In the last meeting we would talk with the sales force on how to market the artists through retail. And through these series of meetings, we would decide on the artists we would be releasing finally.
The question that you asked to Haji about who to send the product to is that you could either send it to me or the product manager. But as Haji said it would be very important to send it to a particular person, not to the company. When I mentioned about the release meetings, the product manager who would be in charge of the product would need to drive the product through the meetings with a good presentation. Within the meetings even if he says he wants to release it, as I said, we have to convince our promo team, we have to convince the retail team, and if everyone says yes, then that’s the final stage that we would give a commitment to a release. And that is why I feel that a good direct relationship with the licencee from the start is very important.

So if the people in the audience, if they don’t know any person, for example at your company, they can always look through a directory?

Look through a directory or just call up and ask who it would be appropriate to send the material to. In our company the product managers are all separated by genre. We have a person who specializes in rock, or hip hop etc.. So it depends on the product of course. I think it would be better to just ask, or just call up and ask who would be the best person.

So it is very important to have a name?

Yes, very important. Also, in regard to what we would like to receive. I’d like to also see a marketing plan. How it was marketed in the original country which would give us some hints on what the artist is like, and to give us ideas on how the artist would be shown best. Of course, we would make our own plans, and maybe change the plans, but we would want to start from that.

That’s a very interesting point I think. A very important point because such a marketing plan can give several hints really. Haji? For you to evaluate a product, how long does it take?

Pretty long to tell the truth. Sometimes it can go up to 2 or 3 months really. If it’s really bad there could be an instant “no.”

The longer the better?

No,not really. If it is really good it could be an instant “yes,” too. If it is somewhere in between we tend to drag it out forever, maybe. It is pretty easy for a couple of months to pass so fast. But we actually appreciate our licensors and also the ones who send materials to us to keep pushing, to keep contacting us. To keep asking what’s happening, what did you feel about the material? We try to rush ourselves, try to get the answer as soon as possible.
There are two ways of evaluating material in our company. One is rather official, the other is rather unofficial. The unofficial way, if you have rock material and if you know our rock A&R, you just go ahead and personally contact this person. That way you can probably get an instant “yes” or “no.”
If you don’t hear from our rock A&R for a couple of months, that usually means “no.” The official way, on the other hand, if you don’t know anybody from our company, the material will be sent to us. We keep a dialogue of everything that we receive and then the material gets forwarded to an appropriate person, an appropriate A&R. That way there’s a particular group of people who keep track of all the incoming material. If there’s no feedback from an A&R for a certain period of time, usually a week to two weeks, then this person gets to an A&R and try to get an answer from him. As I said before, Avex has a history of acting as fast as possible, so we would like to inherit this tradition. If something is not working, the other way round, then we try to make it right.

But you always try to get back to that person who sends in a promotional kit with your reply?

As much as possible.

Either positive or negative.

Right, and when it is negative, we also try to give a small comment why we were not happy with the material. Having said that, it is getting harder and harder, because of the quantity of the material that we are receiving recently. In many cases our clients are not so happy with the situation.

Thank you very much. I think we should be opening up to the floor for some questions. Anybody has any questions?

Hi, my name is Michael Hoffman I’m from Stella Artists Management in Denmark and Sweden. I’d like to find out if there’s a lot of remixing going on when you receive a master, if there’s a tendency to remix things to give it the sound of maybe Japan?

Yes, if there are remixes already available, then we try to find which one is the right one for Japan. If the original material is OK, but can be more suitable by making, creating a remix especially for Japan, then we try to do that. This happens especially for the dance oriented material, because in many cases dance floors in Japan are not really 100% following dance floors in Europe or the original territories.

Hello gentlemen, my name is Will Vancell and I’m a Vice President of a record company in Canada, an independent. We recently did a licensing deal in Japan, and prior to that a few weeks before we were selling some products on import. We’ve done a couple of thousand units since the end of last year. What I wanted to know was what possibly could we do to help, assist our independent company in Japan to help promote the music to increase sales. If there was anything we can do. It’s an urban product and it has actually exceeded what they said it would already so far.

Do everything your licensee says.

Good point.

(laughs)

Z, would you like to add anything?

No. Seriously, sorry.

Depending on what kind of artist you have, and depending on the situation. I mean the situation could be very different. Like when the import started and when the Japanese version was released. Or how big your artist is or how available they are for the Japanese market. Sometimes it maybe better not to come to Japan, and sometimes it’s much better to come to Japan, of course. So I can’t really tell what you should do. But your licensee really has their own vision of marketing your material. In many cases when we close a deal with overseas licensors, money tends to be the biggest issue. But when you are finding the licensee in Japan the biggest issue should be the promotional power, or the promotional — marketing, all those things. Each record company has its own strongest point. If you find the right partner in Japan, then what they say should be the best advice for you.

Hello I’m George from Paris. I run independent label for electronic music. I’m also a matchmaker company for DJs. I just want you to give me another view of the electronic market in Japan. And also how big is the market for vinyl in Japan, thank you?

Let me answer the vinyl market issue. It is small but it is there. We have a special label called Rhythm Republic which releases vinyls only. Depending on the product, when I said the market was there, it is a very small market. But if we promote the material right, then we can always start from 2000 to 3000 copies. The buyers, I’d say there are like 300 DJs who always want to buy all the vinyls available. On top of that there are a couple of thousand DJs to be and DJ wannabees and want to have the same thing as their idol DJs. So that’s the main target. Other than that, I don’t think usual city buyers would go for vinyls. Electronic music, you mean like computer music?

…remixers – that kind of music coming out of the UK and now Paris. There is any label that specializes in electronicﾉlike music from clubs?

Let me answer the vinyl market issue. It is small but it is there. We have a special label called Rhythm Republic which releases vinyls only. Depending on the product, when I said the market was there, it is a very small market. But if we promote the material right, then we can always start from 2000 to 3000 copies. The buyers, I’d say there are like 300 DJs who always want to buy all the vinyls available. On top of that there are a couple of thousand DJs to be and DJ wannabees and want to have the same thing as their idol DJs. So that’s the main target. Other than that, I don’t think usual city buyers would go for vinyls. Electronic music, you mean like computer music?

Hi, my nameﾕs Perry Tell I’m with Collateral Damage Entertainment. I’ve done some business in Japan. One of the things we’ve done is we write songs. I have a group of song writers in a studio in Boston, and we’ve written somewhere in the neighborhood of 10 to 12 hit singles for Mai Kuraki for Giza, Being. We are currently doing her new album. I’ve just recently come to Japan, and I’ve gone from label to label telling that story.
If we were in the United States and we had gone to market with that story that we had 10 top ten singles, you know, each of them near or over a million sales plus, I’d be getting calls from everyone, every agent and every lawyer, and everyone’s mother, too.
(laughs)
My question is, we go to Japan and the basic response is pretty much arms length, while that’s interesting but that’s about it. I’m trying to sell the story through, and I know that you’re sort of giggling, but I have had better sorts of conversations about the story (laughs). But it is curious to me, why is it that it is so hard to prove that with that much of a string of success, why are we not able to break through to the other labels? And I think Frank probably exempt from this as well.

Did you have a good connection with the Kuraki Mai people?

We have a contact inside Giza and Being.

So you have been approaching labels. Have you been talking with the publishers at the same time?

I haven’t talked to the publishers because A, you guys could buy it cheaper from me direct, quite frankly. And B, then I have to pay also, I get less and you pay more. So for me it is better to develop relationships. I met with Isao. We met just recently in Japan. I’m trying to build relationships one on one, handshake. I want you to know me, I want to know you. I could go through a publisher but then..

I think it is more like the timing of when you talk with a record company as it is more like a style thing. The reason why we are looking for international tracks is because that’s the way we want to market the artists. So it really depends on what kind of artists they have at the present time. So I think you should keep continuing to approach them. I mean, not to really force it but ask what really is the trend right now, and what they’re really looking for. OK?

Thank you.

The writers in Japan have harder lives. I’m sorry to say this but a couple of hits with Kuraki Mai does not really mean that the writers are established yet. There are more writers in Japan who are more successful but still doing the same thing every day. Going for A&Rs or artists and trying to sell their new songs. So you basically you have to keep doing it. It is not that we don’t appreciate the fact that you have a previous success, but it is not enough to be counted yet.

Well, hello. My name is Dubis Arakis we are from Argentina. We got several successes in the past with an artist who I a DJ Dero who’s with Avex. We also have a very big artist called King Africa that sold over 4 million records all around the world. And I would like to know if the Latin artist has an opportunity because there are not so dances as DJ Dero but King Africa has La Bomba many hits, Salta. They have been hits in Asia, too, obviously in Europe and South America. But what do you think about the possibility in Japan? Acidic Hears and Ricky Martins and all the other successes that Latin artists have had in Japan.

Well, the music is important so let me listen to the music. I will listen to any kind of music. I don’t care about the history. Latin means what kind of Latin, right? Is Brazilian music Latin? No? We have Samba, Tango, DJ Dero with Avex.

Speaking of pure Latin material Salsa seems to become trendy in a particular district in Tokyo and it may be worth to give it a try. That is probably one of the things that Avex will be doing this year. Asereje doesn’t count because it is like every 8 years that something like that happens. Asereje is one thing and you have to wait for another 8 years to have another hit like that. 8 years ago what did we have?

Macarena.

That’s right, and before that? That’s Lambada.

But if one artist got a hit, no one falls. He dominates the whole. It is not a big market, it is a small market. So sometimes one hit is enough. So everybody thinks there is one hit of Latin music, Latin is going to be popular but sometimes it is not. One is enough sometimes, right?

Hi, watashi no namae wa Diana desu. And my question is, if there is a market in Japan for a Westerner singing in Japanese?

Anybody for that, Z?

You’re giving me a hard time. Singing in Japanese? Why would you want to do that?

(laughs)

Because I was in a famous group in Japan when I was younger, as a child. And it was a very beautiful experience it was with Kei Ogura san. And now I’m a big adult, and I have some records in France and the United States. And I always had this dream to go back to Japan and sing in Japanese.

Right. Can we talk later?

OK what time?

Later.

OK.

You’re giving me a hard time. Singing in Japanese? Why would you want to do that?

(laughs)

If you say you want to come to Japan and live there and sing in Japanese that can be done. But when we say international music, and all of us here are in charge of international music. You living in Japan, singing in Japanese doesn’t count. It is rather categorized as a domestic act. The market for domestic music is bigger than international music but the challenge is harder also.

But would I be accepted singing in Japanese as a blonde girl?

If you’re good, yes.

You have to remember one thing that the two markets are very distinct. And you may just fall in between, see? And you will not belong to either market. That’s the danger I think you have to realize. But Z would like to see you later.

(laughter)

Hi, my name is Nicholas Beard, and I’m from California. You know, I was curious about the place of vocal jazz, sort of Al Jarreau and that sort of thing and whether there’s a market for it in Japan, and how best to get into that market?

Well, I think, as I said, keep studying. There is a market for Al Jarreau or Norah Jones, the smooth vocal jazz. If I said jazz, it is sort of categorized market. If I said adult music or pop jazz oriented music it could be better sometimes. Or if it’s straight jazz, saying just jazz would be better. So it depends but there is a market I’m pretty sure, and the there is a way of course. We own Denon. Savoy, we own.

Ken Davis, Ken Davis Music, Sydney Australia. I have over a million sales of relaxation ambient music. I’ve been trying to get into the Japanese market for a long time. TV advertising, a lot of promotion, I do now a lot of promotion by e-mail. I wondered if one sent the web site to you, everything is there, the bi-op the MP3, everything there, whether that would be enough to secure a deal?

As far as the necessity of the material is concerned, yes that should be enough to make a judgment. But the kind of general music that you are talking about sir is probably one of the difficult ones. We are doing that too, and we are suffering.

Have you approached any company?

..a deal with Toshiba-EMI in the early 90′s but it sort of went back to EMI in Australia, and it really didn’t get anywhere. Well, I’m sort of in every country in the world except Japan. And I do concerts in Australia, I do live performance, and inundated with Japanese people saying how come you’re not in Japan? And I go (say) I don’t really know either but it is something I’d like to submit something to someone there on the panel, and hopefully get a deal.

So you now know somebody here so…

Yeah, well Iﾕve photographed every name, and I’m going to be sending stuff to every one of you so…

Good luck.

Thanks.

Sorry, you have a contract with a record company in Australia, EMI, right?

I’m on my own now. I’m sort of independent. But with a million sales worldwide, it is quite substantial. And to think that Japan being a great country, instrumental music and relaxing, healing music. In fact, I was there last year and when I walked into one of the major stores and there must have been 20 or 30 healing albums there. So it’s a big market, and I think it should open up to the style because Japanese culture loves softer style and also melody. You were talking about melody.

Sometimes sir if you have a deal in your home territory with a multinational. You know, the company may have a related company in Japan, and work the market that way.

OK, thanks a lot.

Hello, I’m Glen Stein from Southern California and I work in urban Hip Hop and R&B music. We promote groups internationally, and I was wondering to bring an unknown Hip Hop or R&B group into Japan, what’s the best way to do it? With the local promoter as a way to build the awareness about the music?

OK. What’s the best way of introducing your act to Japanese record companies or Japanese market?

Japanese market as well.

Generally, it’s just like anything else; you need to speak to record companies. If you know anybody personally, that’s even better. I’ll be happy to listen to your material also. That’s what we do every day. Having said that, when I get introduced to a Hip Hop act from the US with no major signing, or it doesn’t have to be a major signing, or record signing behind it, words included, in many cases could be a problem. If the words are OK then it has a better chance with us. Does that answer your question?

Good day. My nameﾕs Philip Van from Streets of New York. We have an independent record label for Caribbean music. We’d like to know how big is reggae music in Japan? And if anyone in the panel is interested in receiving material from our company? We have six reggae albums.

At Zomba we don’t do reggae but I used to work with inner circle. There used to be a huge festival called the Sun Splash. There was a huge market for reggae at that time but I think it is kind of decreasing right now, to be honest with you. I assume you to want to market a traditional reggae type of music but it really depends on the song. If you think that there is a song on the album that will cross over to a much wider audience it would be another way of trying to approach the market or the record company. I’m not so sure who would be interested though as a record company, who would like to do a reggae record right now. Do you know? Not so many right now to be real honest with you.

We used to have summer festivals. As you said, the Sun Splash. But I don’t think we have it any now.

No, we don’t do that anymore. So that kind of proves that the market for reggae is getting smaller.

But you never know. OK. Thank you very much, ladies and gentlemen. Thank you very much for your participation. And why don’t you give another big round of applause to our panelists, thank you.