DEI Natives Are Transforming Entertainment. (Part 2) ~ Artist Development and Fandom Co-Creation ~

"What's common sense in the industry is unthinkable at Avex"

──Next, we'd like to hear your thoughts on discovering and nurturing artists. Social media activity is indispensable in today's era, but what are your thoughts on compliance?

Inou: SNS is a convenient tool, but it's also created a culture where people feel they can say whatever they want. We constantly strive to raise awareness about this among both artists and staff.

Compliance can seem like the polar opposite of entertainment. Striking a balance within that is extremely challenging. Of course, we mustn't cause anyone suffering, but if you ask why hip-hop was born, why rock was born, it's also true that music served as a tool to resist social oppression. I believe we shouldn't lose that aspect.

──"avex vision 2027" includes the phrase "IPs that are 'beloved' across diverse regions and fields." Does this mean being loved by diverse regions, diverse cultures, and diverse people, including historical contexts?

Inou: Well, if we aren't loved, neither the artists nor we can survive. But if I had to choose, it's more about "creating excitement, thrill, and fervor" than just being loved. If entertainment is about showing a different view from ordinary society, then it should be extraordinary. That extraordinary quality is the "excitement, thrill, and fervor," and expressing that through music and real events is crucial.

In that sense, rather than singing about common ground to appeal to everyone, I believe it's more important to release songs and content that really resonate deeply with a specific group of people. Especially when it comes to creativity, I don't think it should be generic.

──Indeed, with media becoming this diverse, I think there are limits to aiming for universal appeal or what everyone is listening to.

Inou: Exactly. We're now in an era where businesses emerge within specific communities, making it increasingly difficult to create "hit songs everyone knows." In the past, when information was scarce, saying "Head over there!" could capture the public's attention. But today, with 100,000 songs uploaded daily, talking about generic topics is pointless. Uncontroversial lyrics don't inspire emotion.

Therefore, I believe works aimed at people who resonate with a certain strong message are becoming the building blocks of entertainment. I hope these diverse expressions of the extraordinary and diverse IPs can spread in their own ways across diverse regions filled with diverse people.

Amidst the shift from film to TV, and from TV to new media like YouTube, new stars are born and new IP emerges. It still has to be edgy. I always keep in mind the idea of sparking a movement, doing something no one else is doing, and that "industry norms are Avex's absurdities" (a phrase from our founder and Chairman, Katsuhito Matsuura).

──So, what kind of people are these "beloved" IP seeds, and how do you find them?

Ino: We look for people who have that kind of charm that makes you turn your head in surprise, or who seem to have a certain aura. In sports, setting records makes you a hero, but in entertainment, setting records doesn't necessarily make you a hero. So we look for people who can create that back-and-forth exchange of passion with the audience. Rather than looking for skilled musicians, we look for people who may still be developing their skills but have that raw charm and aura as material.

──So you're looking for people who seem like they could become captivating in the future.

Inou: Exactly. Just being a good singer or dancer isn't enough to turn heads. What lies beyond the skill—that's what becomes star quality. That's what makes them star material, so discerning this is incredibly important.

Both artists and staff are real people. Inclusion and care are essential.

──Let's discuss nurturing artists as real people. In a world where even scholarship students aren't guaranteed debuts, and debuting isn't the ultimate goal, how do you approach artists' mental health care?

Inono: At avex Youth, we've focused on development since 2022, including artists currently active. We support not only language and skill development but also mental health. In this harsh world of intense competition and setbacks, mental health professional support is necessary.

──Do artists who've gained diverse experience sometimes transition into roles like producers or staff members?

Inoh: Yes. Producers who have stood on stage themselves have a different perspective than those of us who haven't. They can objectively assess situations and make judgments based on experiences like "I should have done that back then" or "I went through tough times."

In that sense, Mr. Hidaka (Mitsuteru Hidaka, CEO of BMSG), who is currently active as an artist himself, channels his accumulated frustrations from the past. He delivers messages to artists rooted in his experience, offering genuine support. His perspective and the weight behind his words, like "I've been through tough times too," are completely different from ours.

──So it transcends the barriers between different roles like artists and staff. Now, let's talk about the company culture. Avex naturally prioritizes DEI as part of its culture, focusing on initiatives like hiring people with disabilities and gender literacy, embracing the diversity of artists, staff, and employees.

Ino: I think DEI is part of the company culture. We have many international staff members, and it's just natural that there are all kinds of people. There's absolutely no discomfort about that. If you don't have that awareness in your daily work, you're missing the point of being global. Many people apply for jobs from overseas because they like Japan and like the independent spirit of Avex.

For example, depending on the cultural customs of each country, the peace sign might be seen as positive or negative. It's about literacy, or getting accustomed to it. If something is mistaken, I believe the only way is to learn from that mistake and turn it into experience.

──Considering the challenges in artist development, what are the requirements for talent succeeding in the entertainment industry going forward? At Avex, I get the impression young artists are paired with management staff close to their age.

Inoh: Yes, when artists and management are of the same generation, they can form a strong community. Also, since online communication is essential for today's artists, our company culture favors having digitally literate young employees handle this. SNS marketing done solely by our generation tends to become theoretical and impractical due to literacy gaps.

──Being the same generation also seems to provide psychological safety, allowing artists to feel comfortable revealing their true feelings.

Inou: Artists often possess strong, unique personalities that set them apart from the general public. Being around staff who are ordinary people creates mutual stimulation. When they're close in age, it fosters more genuine communication. Previous generations built strong relationships between artists and staff this way too. I think these successful experiences of such partnerships have shaped Avex's culture—encouraging giving opportunities to young people and trusting their sensibilities.

While it takes staff 4-5 years to become fully competent professionals—making that time an "investment"—veterans also get updated by exposure to young sensibilities, creating synergy. Without this veteran-young talent synergy, content fails to evolve, ultimately alienating fans. So young employees likely function positively in the entertainment industry.

Globally, you can't understand local culture or learn the correct pronunciation of words without talking to locals. Similarly, the only way to learn the right way to engage with SNS is to ask the SNS-native younger generation. This approach of creating new markets by aligning with SNS culture and fandom is completely different from the product-out approach where big-name producers in established markets declare, "This song will work!" At Avex, we've traditionally leaned more toward the product-out approach. However, without losing that culture, we want to nurture unique works and artists that embody the Avex spirit.

Involving the fandom to inclusively amplify our reach

──Next, let's talk about fandom. In this SNS era, the distance between artists and fans has become incredibly close. In a sense, you could say they've become inclusively integrated, couldn't you?

Ino: I agree, and it seems this trend is global. It's not just about being a fan of an artist; within the fanbase, there are fans who invest like a support association and fans who actively promote their favorite artist, like "oshi-katsu" (support activities). Of course, fan club activities have always existed, but now, in the digital world, fanbases of a different scale are emerging. I think there are many successful examples of artists who have created such an "integrated fandom."

──Traditional artist fans just acquired finished products. But today's artist fandoms, as seen in "oshi-katsu" (promoting one's favorite artist), are actively nurturing artists to create great work.

Inou: Exactly. It's fascinating because we live in a society where fans themselves become PR agents for their favorite artists. As the number of people who can share content grows—whether it's 10 or 100—the reach expands exponentially. Even when official promotions fail to grab attention, passionate word-of-mouth like "This is absolutely amazing!" can spark interest.

Other examples include allowing live filming to support fan-driven dissemination or inviting participation in promotional ads. Management is consciously building good relationships with the fandom. As part of their SNS strategy, communicating with key fandom leaders has essentially become part of the marketing team's job. has become part of the marketing team's job.

Entertainment that empowers young people struggling to find their place to "be who they want to be"

──There's also fan activism, where fanbases support artists engaged in social causes.

Inno: Of course, we want them to support the artists' creative work, but it's also important that the artistic activity itself becomes a cycle that improves society. We believe there should be room for various types of artists, and as a company, our position is to support that. We also want to help amplify the artists' messages.

──Shinshiro Yoshioka, a fellow AAA member alongside Hidaka-san who delivers powerful messages, also came out about his sexuality at a fan meeting in 2023.

Inoh: As a label, we are certainly in a position to support that. For artists and fans today, I think diversity, including sexuality, is simply a given.

──So you're supporting the creative expression that encompasses the artist's way of life and stance as well.

Inoh: Exactly. A little while back, during the pandemic, Avex was one of the first companies to start supporting creators and offering free access to facilities. We want to help increase revenue for creators and the entertainment industry as a whole, not just for our own company. That creates a cycle where good creators and good content emerge.

Toward becoming a global entertainment change-maker

──We've discussed the "beloved" IPs outlined in "avex vision2027" and Avex's materiality (key issues). Finally, could you share your outlook on the future of global entertainment distribution, considering DEI?

Ino: When considering the global market, it's clear that artists with DEI literacy are gaining strong support from their fandoms. DEI has always been a fundamental part of our company culture. By supporting artists in their communications based on their literacy, we believe we can cultivate entertainment that transcends national borders.

For Avex, Japan is of course important, but business-wise, we believe challenging overseas markets is crucial, and we see that opportunity arriving now. Not many companies can afford to invest and take risks there, even if there's a chance it might go to waste. That's the Avex culture, the Matsuura culture. We're a company of trial and error, believing the future lies in doing what others won't. I also think this flexibility is a strength of being independent. Our vision and mission is to cultivate IP and infrastructure, including investments, and deliver Japanese content to the world.

Our vision is to be Asia's leading company, the leading content company. It's crucial that we attract partners, artists, and staff who find this challenge exciting. Just as we pioneered K-POP information distribution in Japan years ago, we're fully focused on becoming a guiding light for those aiming for the future of entertainment in ten years—though that may sound presumptuous.

──That means becoming a changemaker for "beloved IP across diverse regions and fields," doesn't it?

Ino: Yes, and we're all in this together as the Japanese team. Markets won't form unless someone breaks through, so I strongly believe we must run together, including the government. We've made proposals to the Ministry of Economy, Trade and Industry (METI) regarding overcoming investment and regulatory hurdles, cultivating global talent, and building regular overseas media outlets and real-world platforms. We want to create a cycle that elevates the value of Japanese entertainment within a global format.

──We would be honored to become partners in this change-making journey, starting with media and platforms. Thank you for sharing such valuable insights today, filled with excitement and passion.

In the latter part, we heard about artist development and co-creation with fandoms. From keywords like "beloved IPs" worldwide, we gained insights into "DEI communication" in business.

Throughout both parts, we received the message that to practice "DEI communication" with artists, everyone on the team—artists, staff, and fandom—must cultivate their humanity, respect each other's human rights, maintain an attitude of turning even failures into opportunities for a better future, and continuously update their DEI literacy. This is a significant hint not just for the entertainment industry, but for all businesses today.