Table of Contents

Welcome to a new avenue into Japan.

For the last decade, due to the recession and falling CD sales, Japan has been forced to promote its own artists above international artists to try and sustain their market. Quite frankly, it could not have come at a worse time for the rest of the world because as it became easier and easier to set up an independent label, so it became more and more difficult to launch or promote international product in Japan. Without a doubt, those of you reading this who have already licensed titles to Japan will know this, having met with some dissatisfaction or frustration with regards to the releases in one or more areas.

Now we are able to change that: we can make Japan more accessible to you and to give you full control over the product that you release here as well as greatly improve your profit margin. We are offering you a direct link between the Japanese market and yourself. The days of your titles disappearing into oblivion and of you having very little, if any, feedback are over. From now on, you will set the criteria under which your CDs and DVDs will be released: you will have the final say on everything to do with your release: you will set the release and date and see it through every step of the way as you control the promotional campaign and budget.

In short, the amount of control and the profit margins you have releasing your titles in your native country, is now available for your company, for the first time, in Japan.

The Basics

If you already have a licensing deal in Japan , why should you consider this?

We’re not offering licensing deals. What we are saying is that we will take care of all of your releases for you in Japan, with you being the record company, releasing your own product under your own banner or trademark through our distribution network, BounDee Inc., the biggest independent distributor in Japan. Along with our many promotional and advertising contacts such as MTV Japan, Space Shower TV, Juice TV, HMV Japan, Tower Records Japan, etc, we have the power to promote your product to its maximum potential.

Why this is different to what you already have.

Quite simply, we have our offices and staff in Japan and are prepared to organize and oversee any CDs or DVDs you would like to release here, not as a licensing deal but a true release on your own label baring your own logo and finally bringing you the major share of the profit and deserved recognition of your company for a simple administration fee per record sold. This effectively means we would have an interest in all of your sales and therefore have a vested interest in working harder for you. Not only that but more importantly, it puts you back in control of your product. You can decide your release date, how much you want to spend on promotion, etc, without having to set up and staff your own office here. Also we will not be paid until you are. Our fee will only come from your sales. We are compensated at the very same time you are being wired your money. Therefore as stated before it is in our best interest to have your records reach their maximum sales potential. If you do not make money we do notmake money.

You’ll have control of your own titles destiny. We will advise you of certain things that you may not be aware of for Japanese releases (see Appendix) but other than that there is no reason why you should not have final say in every stage of the process, which is the way it should be.

We’ve become very aware that due to the recent decline in worldwide sales, companies over here are very prone to cherry picking, making it nearly impossible for companies such as yours to:

a) reach its full sales potential

b) to release all of your product that you feel would do well

c) fulfill contracts that require a Japanese release

d) break new artists in Japan.

If you already have significant sales and successful artists in Japan, this plan was made for you. It allows you to glean the lion’s share of money from every record or DVD sold grossing you an average of $10.42 (or €7.11 or £5.52) per disc. The numbers specified above represent the total paid to youafter the payment of your distribution fee, our fee as well as your publishing royalties. What we are doing is redressing the balance and giving everyone a chance which let’s face it, is long overdue. We are also aware that many companies make promises that they never keep. This can’t happen here as you’re the one calling the shots and we’re supervising them for you.

Are you saying we can release anything we like?

You can release anything you like but as with your label in your native country, there is no point in releasing something that is destined for the bargain bins three months after it is advertised. We have a good opportunity here to build up a name for both your company and ours and we really want you to succeed. If you have a title that you’re unsure of, send it to us and we’ll ask some of our contacts their professional opinion.

Where are the products manufactured?

We use several pressing plants but mainly MicroWorks in Singapore for smaller runs and any of Sony’s plants here in Japan for larger numbers. The reason being for the difference in choice of Singapore or Japan is price: larger numbers are cheaper to manufacture in Japan and smaller numbers are cheaper to manufacture in Singapore. The quality for both factories is the same in all aspects of pressing and printing and is up to the high standard that the Japanese record buying public has come to expect. Prices from Singapore include the landed cost (Customs and Excise tax) into Japan and delivery to the warehouse.

1,000 discs 185,000 JPY $2.05 p/d €1.54 £1.32

5,000 discs 666,000 JPY $1.48 p/d €1.11 £0.95

10,000 discs 1,137,000 JPY $1.26 p/d €0.94 £0.81

15,000 discs 1,591,500 JPY $1.18 p/d €0.88 £0.76

20,000 discs 2,076,000 JPY $1.15 p/d €0.86 £0.74

Please note that the price per disc includes all the extra printing for the Japanese Obi strip and insert.

Prices do not include tax (5%).

Currency conversion throughout this document is done at the rate of:

$1 = 90 JPY : €1 = 120 JPY: £1 = 140 JPY

How do you get paid?

We will arrange for our distributor to account and pay you directly on a monthly basis. You will receive a statement every month followed by a bank transfer within 45 days.

What are the conditions for reserves and returns?

There are none: there are no reserves or returns. All product ordered from the distributor are considered a final sale therefore you will be accounted to and paid for every disc ordered without the possibility of a return. That's correct, no reserves no returns all discs shipped are considered sold and that’s final.

Sum this section up in one sentence for me.

The days of you having to pitch your product and then potentially settle for a licensing deal you’re not satisfied with are over.

Breakdown on profit margins

Ask yourself a question; what are you receiving now per disc when you license to a Japanese company?

$3.00? $4.00?

€2.50? €3.00?

£2.00? £2.50?

- the bulk of which goes to your artist?

Or maybe you have no idea because you’re never accounted to.

Either way, would you prefer $10.42 or€7.11 or £5.52 as an averageper disc sold and be a record company again? Remember there are no reserves or returns – if a record is ordered, it is sold.

Of course you would and here’s how it can be done. In the example below, we have listed the average three retail prices for CD’s in Japan (which you set).

	JPY	JPY	JPY
Example Retail Price (A)	2300	2400	2500

Distributor Price to Label (52% of A)	1196	1248	1300

Deductions
JASRAC (6% of A)	138	144	150
Balance (B)	1058	1104	1150
The Asian Alliance Fee (15% of B)	158.7	165.6	172.5

Price per disc to Label (JPY)	899.3	938.4	977.5

Price per disc to Label (USD)	9.99	10.42	10.86
(Calculated at 1.00 USD = 90 JPY)

Price per disc to Label (EURO)	7.49	7.82	8.14
(Calculated at 1.00 EURO = 120 JPY)

Price per disc to Label (GBP)	6.42	6.70	6.98
(Calculated at 1.00 GBP = 140 JPY)

(Currency conversion throughout this document is done at the rate of:

$1 = 90 JPY: €1 = 120 JPY: £1 = 140 JPY).

Please note that all figures are approximate.

Your payment in the middle example of is $10.42 or €7.82 or £6.70 per disc after distribution fee, publishing royalties and our commission are paid.

Company Access

Having an established base here for your label means you have direct contact with all the top companies that can help to sell your titles.

Some of the companies we are affiliated with and to which you will have access to are:

Physical Distributor

BounDee Inc. in Tokyo are the largest independent distributor in Japan with access to all 3,500 + stores and rental outlets. They can also offer you optional deals with all the major download and mobile phone companies as well as the major Japanese internet sales sites. Their sales staff cover all genres and all products and have been very successful with sales in every field. They are owned by Japan’s second largest Music TV cable company, Space Shower TV.

Digital Distributer

Since forming some eight years ago, Indies Chart Japan (ICJ) have grown to be the leading aggregator and distributor of digital content in Japan. They cover 99.7% of the digital market and also hold the exclusive contract for digital content on MySpace Japan..

Promotion and Advertising

We work with a team of highly successful and experienced personnel who have direct access to all of the key store buyers and media managers. For your release, you set a budget, we will suggest an advertising and promotion campaign based on that budget, negotiating prices for you directly with the company that owns that space or medium. Along with your magazine advertising, you may want to take TV, cinema or billboard advertising and show your artists on some of Japan’s famous display screens. It’s all down to you. You’re in control now and the budget is set by you.

Publications

We are in contact with all the major magazines for all genres on a regular basis.

For example:

Pop: Rockin’ On, Bounce (Tower Records), CD & DL, etc..

Classic Rock and Metal: Burnn!, Rockin’ F, Guitar Player, Young Guitar, The Dig, etc.

Alternative and Punk: Crossbeat, Grindhouse, Extreme the Dojo, Doll, etc

Hip-Hop: BMR, WooFIN, Cool Trance, etc.

Jazz and Blues: Swing Journal, Jazz Life, etc.

General: CD Journal, Cut, Music & Movie Master (HMV), VA (Tsutaya), etc

Promoters

Japan’s live circuit is as busy as ever with the top four established promoters, (UDO, Creativeman, SMASH and Club Citta) and the newer, smaller independent companies such as Zak and M & I constantly bringing in established and new artists. We have contacts at all of these and we will gladly present them with any propositions put forward by you.

Independent Pluggers

A simple presentation to radio stations and TV company selection boards as well as the program producers goes a long way to having your product receive airtime. Without it, your chances of having it aired are almost zero. Our contacts are trusted by the radio/TV circuit in Japan and know every DJ/program manager specializing in every genre.

Recording Industry Organizations

7 JASRAC, Music Publishers Association of Japan, Japan Association of Music Enterprises, Japan Record Trading Association (JRTA), and any others you care to mention are within easy access through us.

Services Provided by Asian Alliance

(covered by our 15% administration fee)

Here are the services we provide for you.

1) Communication translations from English to Japanese and vice versa

All, day-to-day communication between the people we find for you to market and promote your product including artwork designers (for your advertising and additional CD artwork), distributor, shops, media, promoters, etc.

Registration of songs, publishing and composition information for JASRAC

2) Obi Strip, insert, sales sheet, catch copy and advertising proof reading

Obi strips are designed for maximum exposure in the racks of the CD shops and the text on the front is equally as important if not more important as any review or advertising; the insert is entirely in Japanese and contains all the translated lyrics and text written by a Japanese journalist. With regards to catch-copy, as you know, the sales sheet is the first thing any shop will see of your product. The pictures, layout and text, particularly of a debut release are critical in getting your product into the shops. Again it will be entirely in Japanese.

3) Barcode registration

Any product manufactured in Japan must have a Japanese barcode　We will issue them for you.

4) Insert design and typesetting

The insert is entirely in Japanese and contains all the translated lyrics and text written by a Japanese journalist.

5) Sales sheet design and typeset

This is the first thing any shop will see of your product. The pictures, layout and text, particularly of a debut release are critical in getting your product into the shops. Again it will be entirely in Japanese.

6) Scheduling and organization of release

We will provide you with a schedule sheet with dates by which you need to deliver master discs, artwork, etc. We will email you PDFs of the amended artwork for your approval if you request.

7) Advertising campaign scheduling and booking

B/W or colour, we will adapt to any marketing plan that you have or create something from scratch as well as securing the best times and placement in magazines. We will also ensure that your release receives prominent position in stores as well as organizing any POP’s or in-store video marketing which you may request.

8) Distribution of pre-promotional copies of your albums and release sheets issued to magazines for review.

Including simple artwork, a brief biography and catch copy.

9) Copying and distribution of DVD promotional videos issued to TV companies for viewing with regards to airing. *

As above.

10) Distribution of promotional copies to radio stations and key figures in the industry (Promotional copies to be taken from your stock after manufacture)

Personally delivered to all the important radio stations and influential figures along with biographies and release sheets.

11) All office use and administrative time used by The Asian Alliance staff.

Feel free to ask advice about any issues that you’re not sure of. Once on board, consider us part of your team.

Betacam copies of promotional videos are an extra cost of 3,000 JPY ($33.33, €25.00, £21.64 per tape unless you can supply them. NTSC is required

Costs

Our complete fee is 15% of monies paid to you (after publishing royalties are deducted) for all the services listed in the previous section. Remember: we are not paid unless you are paid.

The writing of the liner notes by an appropriate journalist and proof reading of the text is an additional fee of 25,000 JPY ($277.77, €208.33, £178.57). The right journalist for the right band is imperative. We will find the most appropriate writer for your artist and commission him/her to write the liner notes.

The translation of your artists’ lyrics will cost 3,000 JPY per song$33.33, €25.00, £21.64).

This will see your release ready for the shelves waiting to be bought. From then on, it's up to you how much you want to spend on advertising and promotional campaigns. We can keep it down to a single half page advert in the best magazine for your title or go all the way up to stand alone point-of-purchase displays, TV advertising and campaigns. Big or small: there are no parameters. As we said: you’re in control. If you prefer, you can give us a budget and we can advise you of the most efficient way to spend it that would best target your potential buyers.

The cost of the PR person is 50,000 JPY ($611, €458, £357) per title although if you release multiple titles within a 28 day period, that figure will drop 20% on all titles within that 28 day period.

The CD/DVD artwork for your release will cost 55,000 JPY ($555, €416, £393). This price includes the design and typeset of your Obi-strip, the design and typeset of your Japanese insert and any changes (Catalogue number, barcode, etc) that need to be made to your original artwork.

10 All the elements of a sales sheet (design, translation, printing, distribution, etc) will cost20,000 JPY ($222, €166, £142). Please note that this fee covers two sales sheets’ one B/W for the initial announcement and a colour version for the launch campaign.

For your advertising, we will do all the booking, design and organizing of the advertising at no extra cost. The actual cost of the advert being your sole responsibility, payable in advance of the campaign.

Below is a breakdown of the advertising costs in the major publications:

(Please note that any transfers made to Japanese banks carry a transfer fee of around 2,500 JPY ($28, €21, £18) and we suggest that costs be transferred in one lump sum to avoid excess charges.)

Japanese Yen

Magazine	Circulation	1/2 Page B & W	1/2 Page Colour	1 Page B & W	1 Page Colour
InRock (Rock)	50,000	¥110,000		¥200,000	¥520,000
Rockin' On (Pop/Rock)	300,000	¥220,000		¥450,000	¥700,000
Burrn! (Metal)	200,000	¥220,000		¥480,000	¥700,000
Jazz life (Jazz)	200,000	¥170,000		¥330,000	¥550,000
BMR (Hip-Hop)	200,000	¥200,000	¥320,000	¥380,000	¥650,000
Grindhopuse (Alternative)	60,000	¥130,000		¥250,000	¥450,000

US Dollars (Based on an exchange rate of $1 = 90 JPY)

Magazine	Circulation	1/2 Page B & W	1/2 Page Colour	1 Page B & W	1 Page Colour
InRock (Rock)	50,000	$1,222		$2,222	$5,777
Rockin' On (Pop/Rock)	300,000	$2,444		$5,000	$7,777
Burrn! (Metal)	200,000	$2,444		$5,333	$7,777
Jazz life (Jazz)	200,000	$1,888		$3,666	$6,111
BMR (Hip-Hop)	200,000	$2,222	$3,555	$4,222	$7,222
Grindhopuse (Alternative)	60,000	$1,444		$2,777	$5,000

Euro （Based on an exchange rate of €1 = 120 JPY）

Magazine	Circulation	1/2 Page B & W	1/2 Page Colour	1 Page B & W	1 Page Colour
InRock (Rock)	50,000	€916		€1,666	€4,333
Rockin' On (Pop/Rock)	300,000	€1,833		€3,750	€5,833
Burrn! (Metal)	200,000	€1,833		€4,000	€5,833
Jazz life (Jazz)	200,000	€1,416		€2,750	€4,584
BMR (Hip-Hop)	200,000	€1,666	€2,666	€3,166	€5,416
Grindhopuse (Alternative)	60,000	€1,083		€2,083	€3,750

Pound （Based on an exchange rate of £1 = 140 JPY）

Magazine	Circulation	1/2 Page B & W	1/2 Page Colour	1 Page B & W	1 Page Colour
InRock (Rock)	50,000	£786		£1,428	£3,714
Rockin' On (Pop/Rock)	300,000	£1,572		£3,214	£5,000
Burrn! (Metal)	200,000	£1,572		£3,428	£5,000
Jazz life (Jazz)	200,000	£1,214		£2,358	£3,930
BMR (Hip-Hop)	200,000	£1,428	£2,285	£2,714	£4,642
Grindhopuse (Alternative)	60,000	£928		£1,785	£3,214

Frequently Asked Questions

When is the best time to release in Japan?

Mostly any time of year is fine but you should release your product on the same date as in your home territory, or at the very least, within fourteen days of that date. Japanese people will wait but they won’t wait forever and if they see the import in the shop without any sign of a domestic release, they’ll settle for what they can get – import internet sales are now at a premium in Japan and if there is no sign of a domestic release in the immediate sales will go elsewhere along with your greater profit.

What would be the argument against just selling our releases as imports?

Imports are rarely reviewed in magazines, your company and your artist receive no promotion and more important the imported product would not be available through the majority of the stores in Japan. Not only would you be losing your maximum potential sales but your maximum potential profits.

Can we release at a later date by adding a bonus track?

No. Very few would buy it again at a later date for bonus tracks: less than 4% according to the last survey as most bonus tracks are freely available on the internet. However, if the bonus tracks are sufficient in quantity, unique to Japan and unavailable anywhere else and then that figure will go up slightly. However, to offer them a bonus track three months later just doesn’t work anymore. You’ll be asking them to buy an extra three minutes+ of music for about $26 (€20, £17) and the boom time for the economy here has long gone. Joe Public doesn’t have a lot of spare cash to throw around now so we have to get them on the first sale. We are also up against a plethora of other temptations for buyers to spend their cash on and we need to give value for money.

Are the Japanese insert and bonus tracks absolutely necessary?

13 The writing of liner notes, the translation of your artist’s lyrics and the inclusion of bonus tracks for Japan only are crucial to the success of your label as well as your release and should not be considered as options or taken lightly. While it could be tempting to cut corners and costs, there has never yet been a Japanese release without these two items going way back before Elvis. As an analogy, it would be akin to you buying a DVD player and not finding an instruction manual inside: you can still use it but you wouldn’t get the full benefit from it.

What do we have to supply to Japan?

A mastered audio disc including bonus track(s) or material.

The original cover artwork in Adobe Illustrator version 12.0 or later.

At least two usable promotional shots of the band.

Detailed biography of the band

Previous discography

Original release date in the USA and/or Europe

Label copy (ISRC numbers, Writers of both music and lyrics, Producer, Copyright and publishing information)

What time frame are we talking about here?

As a very rough guide, three months. Let’s say you want an album releasing on June 30th . We would need:

Front cover artwork	Apr 1st
Biography	Apr 1st
Promotional photographs	Apr 1st
Company logo	Apr 1st
Artist, album title sales points and track listing	Apr 1st
Booklet, back tray, inner tray artwork	May 1st
Label copy	May 17th
Mastered audio disc	May 7th

We would supply you with a release schedule checklist.

A final thought.

As we stated before, we will have an interest in your company because we are working on a commission basis: we don’t make money unless you do. If you’re interested and would like more information, please contact either:

Stan Vincent

Email: Stan@TheAsianAlliance.com

USA (+1) 212 794 2318

Glenn Williams

Email: Glenn@TheAsianAlliance.com

Japan (+81) 44 379 6600

Appendix

A word about Japanese CDs.

AlAll Japanese, domestically released CDs and DVDs have additional artwork (see next page) and also require small additions to your existing artwork which we will do for you and send to you for your approval. Either that or we can send you what is needed and your art staff can do it but please be aware that it requires a computer that can accommodate Japanese characters.

1) Your booklet can remain identical to the version that is released in your own territory unless there is a serial number or manufacturing claim (e.g. Printed/Manufactured in France) that we would need to change.

2) The label would need to have a copyright ownership text added if it is not already there as well as a ‘Compact Disc’ or ‘DVD’ logo and a JASRAC logo. (JASRAC is the governing body of copyright in Japan: the same as MCPS or ASCAP). The catalogue number of the disc is also a requirement.

3) The back tray requires a ‘Compact Disc’ logo or DVD logo, JASRAC logo and the usual ‘Unauthorized duplication etc’ text in Japanese.

ISRC numbers have become regulation in Japan and no CD or DVD is released without. For a music DVD, each song needs to have it’s own number whereas a documentary needs only one. Music performances within a documentary however needs to have their own number.

As mentioned before, Japanese discs have extra artwork added to them in the form of an Obi strip and Japanese liner notes. This of course means that the manufacturing costs are higher for a Japanese release than say, for example, a US release or a UK release.

1,000 discs 185,000 JPY $2.05 p/d €1.54 £1.32

5,000 discs 666,000 JPY $1.48 p/d €1.11 £0.95

10,000 discs 1,137,000 JPY $1.26 p/d €0.94 £0.81

15,000 discs 1,591,500 JPY $1.18 p/d €0.88 £0.76

20,000 discs 2,076,000 JPY $1.15 p/d €0.86 £0.74

N.B. Digipaks are not popular in Japan and the record buying public prefer jewel cases or replica cardboard sleeves.

brief explanation about Japanese CDs.

Booklet Disc label Back tray out Back tray in

Aside from the booklet, the disc and the back tray contained in all USA/European releases, there are two additional pieces of artwork in all Japanese domestic releases, namely an Obi Strip and Japanese Liner Notes

Obi strip Liner notes front Liner notes back

Obi Strip: This is placed around the left spine of the jewel case before wrapping is done and contains catch copy, bonus track information, a short piece about the artist and either a picture or track information. Basically, it’s an advertising strip. Whereas in the USA/Europe, the casual buyer will be inspired to purchase by the design of a cover or the look of a band, the Japanese consumer will always require more references and the Obi Strip gives them just that.

Liner Notes As only a small percentage of Japanese people speak English and the majority of those are not fluent, Japanese CDs always contain translations of your artists’ lyrics. This does two things: 1) It helps the buyer to enjoy the music more (Think about it: do you enjoy the Italian song ‘O Solo Mio’ or the English version ‘It’s Now Or Never’?) and 2) It gets across any messages that your artist may have written into their lyrics. The Liner notes also contain a block of text written by a Japanese journalist who researches the band and provides an explanation of the background of the artist, their influences and their history. Not only is this an important sales point in that the top journalists here are considered to be the best and most reliable source of information, but it also very often leads to spin off sales of back catalogue and future releases. The liner notes are inserted in the booklet before wrapping.

Opened As seen in shops

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