Music Biz in Japan (1) 〜 CD business 〜

I try to explain about situation and system of music biz. in Japan.

Japanese CD’s market have become the biggest in the world since 2008.
It has shrink but more slowly than the other countries.

There are three reasons of slowness.
1) fixed price policy
2) closed system of authorized stores
3) character of Japanese customers

1)fixed price policy
it’ s called “resell system” in Japanese. but the correct word is  fixed price system in law.
all stores must sell at fixed prices about CDs.
So record companies can keep their profits.

2)closed system of authorized stores
In principle Japanese record companies sell CDs only for authorized stores or wholesale dealers.
The contacts that companies sign with stores presupposes to deal with regularly and constantly.
The companies can communicate with stores ongoing relationship.
Users can’t buy CDs except at specialized stores.

3)character of Japanese customers
This reason is not clear. Generally speaking, Japanese music users loves packages.
In certainly Japanese CDs’ Jackets are very gorgeous. There are various special specification of CDs.
I guess that it may be Japanese style.

Otherwise Japanese market of CDs is no.1 in the world.
Record companies are a struggling business. same as in other countries.

I would like to tell the situation and history for people overseas.
Next theme on this column will be “online music distribution” in Japan now.

Thank you!

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About yamabug

Music Producer consultant of contents business C.E.O. of BUG corporation director of Federation Music Producers Japan. in details ☞ https://yamabug.wordpress.com/2012/01/25/my-profile/ Twitter ☞ https://twitter.com/NorikazuYama
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