How Much Does It Cost?

The music business in Japan, unlike other parts of the world, is a very difficult business to be profitable. CD's are becoming harder to sell. However, online digital and mobile downloads are on the rise. Although it is now easier to deliver music to users, costs of marketing and promotion have not decreased. While larger record companies with bigger budgets may rely more on traditional marketing (videos/TV, print advertising, radio promotion, product tie-ups, cross-marketing), smaller independents must rely on continuous touring and online tools to get the most out of their tiny marketing and promotion budgets. It is still a risky business as less than 10% of all releases are profitable and less than 1% ever sell more than 10,000 units.

Nevertheless, if you are in the business of selling music—be it CD's, vinyl records, downloads, or licensing—Japan should not be overlooked since it is the 2nd largest music-buying market in the world next to the USA.

The costs for finding a distributor/importer/licensor for your music in Japan is cheap when compared to the costs of marketing and promotion. It is best for the foreign indie artist/band or record label with limited resources to find a distributor/importer/licensor in Japan that will pay for and handle the marketing and promotion (or a licensing deal with all or most of the money up front).

Importers and licensors of your music will provide sales promotion since they are in the business of releasing and selling products to general consumers whereas indie distributors, although they may assist you, will not provide (i.e. pay for) sales promotion targeted at end-consumers since their main job is selling products to wholesalers and retailers (i.e. the middlemen).

The cost of (or investment in) sales promotion in Japan is cheaper than in the USA where there are many fragmented markets. You have to do separate promotion per region or city (i.e. west coast, east coast, major cities, etc.) whereas in Japan, everything is mainly centered around 1 area, Metro Tokyo (Kanto Region), or 2 if you count Osaka (Kansai Region). The major media are based in Tokyo and reach across the whole country. Also, there are many specialized media publications in Japan so it is easier to reach your target audience. If you create a "buzz" in Tokyo it will spread across the country fairly quickly since many eyes and ears are focused here where trends and tastes are set for the rest of the country.

Unlike in the West, in Japan you do not have to pay thousands of dollars for "radio promotion". There are only 3 major FM radio network companies in Japan: JFN, JFL and Mega Net (and a few independents). Each prefecture (i.e. state) in Japan has at least one FM station under the big 3 and maybe an independent. FM in Japan is from 76 to 90 MHz, resulting in a very limited number of possible stations (Japan's geography is very mountainous).

In Tokyo and Osaka together there are only a handful of FM radio stations.

"Radio promotion" is nonexistent in Japan as it is in the USA (and other countries) where the more you pay for radio promo the more your song will be added or played. This is a truly North American system emerging from the early radio days of "payola". This "legalized payola" system does not exist in Japan. You can still send your CD to FM stations but it is a long shot to be played if you are an unknown. However, sending your CD to a radio station DJ that plays your style of music in his or her program sometimes ends up in a "play", but there is no such thing as "rotation". Better chances for multiple "plays" are with the internet radio stations. Publicity will help influence radio "plays". It is best to concentrate your marketing and promotion budget on touring and publicity.

Though there is no magic budget number that will guarantee a certain level of sales, your expenditure on marketing and promotion is directly related to the amount of sales for your product. In a general consumer goods manufacturing business, marketing and promotion costs are typically 20% to 40% of sales. In the music business, it can be higher. Therefore, as an example, if your business plan calls for sales of 10,000 CD's (or $60,000 at a very good wholesale price of $6 per CD) then your marketing and promotion costs should be anywhere from $12,000 to $24,000 (assuming typical marketing costs of 20%-40% of sales). With manufacturing and other expenses, you can see how only less than 10% of all releases are profitable. But if you are good at business planning and cost control (and getting the most out of your budget) then the music business can be profitable for you. If you are not good or experienced at business then it is better to find someone else (i.e. a record company or licensor) to take on the burden of marketing and promotion.

If you are an indie artist with 1 CD and no record label supporting you then naturally the costs are higher per product whereas a record label selling and promoting several products/artists at one time will have a lower cost per product.

The first place to start is by sending your music and presskit to the main companies in Japan that distribute, import and license music from foreign bands and artists. You can do this fairly easily and inexpensively by using the Japan Music Marketing Kit.

Articles:

1. Japanese Market Opportunity for Foreign Indie Music - If you are in the business of selling music, do not forget Japan!
2. The Music Business in Japan - General info on the music "scene" in Japan
3. Playing Gigs in Japan - Promoting your music through live gigs at Japanese Live Houses
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

Japan Music Marketing Resources:

List of Live Houses in Japan - Book your own live tour /gigs in Japan!

Indie Music Websites (Japanese)
Below are online indie music communities/support networks where you can promote your music and live shows in Japan.

www.indiesmusic.com
www.nextmusic.net
www.muzie.co.jp
www.musictower.jp
www.audioleaf.com
www.visualrocks.com
www.music-trip.que.ne.jp
www.banzai-music.com
mnc.s19.xrea.com
www.music-i.jp

Downloads:

Japan Music Marketing Kit:
A do-it-yourself kit which includes ready-to-print mailing labels and cover letters intended for independent record labels, artists and bands who want to send their music to Japanese companies that distribute, import and license foreign music. More info...

CLICK HERE TO DOWNLOAD THIS NOW

FREE Japanese characters in Illustrator outlines and PDF:
Japanese characters (with English explanations) in various fonts you can use in the design of your t-shirts, posters, stickers, CD's, etc. They come in Illustrator outlines and PDF so you can modify them, cut and paste, etc. on non-Japanese computer systems. You can combine characters to make simple phrases. Characters for date (year, month, day) and city names are included too so you can make your own designs for Japan tour t-shirts or other print/online designs.

CLICK HERE TO DOWNLOAD THIS NOW