DEI Natives Are Transforming Entertainment. (Part 1) ~The Future of the Music Market and Artist Production~

Valuing creativity, we break through global barriers.

──What kind of company is Avex Music Creative?

Inoh: We are a traditional record company, the very foundation of the Avex Group, built on a long history. As Avex grew, it went through a period of becoming a vertically structured organization. Following a reorganization, the label division was spun off into its own company within the overall music business—that is Avex Music Creative. The company name reflects our commitment to prioritizing creativity in music production.
 
──Please share your thoughts on the situation where music and entertainment face, and then overcome, "barriers" like culture, customs, and regulations in the global market.

Inou: I believe Avex was one of the companies that introduced K-POP to Japan. We witnessed its journey from gaining acceptance in the Japanese market to expanding beyond Japan and reaching the world. In my view, there were four distinct phases.

Phase 1 featured artists like TVXQ and BoA, who leveraged the strengths of J-POP. Back then, selling Korean artists was quite challenging. However, SM Entertainment's creativity and the artists' exceptional talent convinced us they would definitely gain popularity. We positioned them in the Japanese market as works that utilized the strengths of J-POP.

Phase 2 involved artists like KARA and Girls' Generation, where the Korean artistic identity and songs remained intact, only translated into Japanese. By Phase 3, a Korean market had formed within Japan itself, allowing content created in Korea to sell directly in Japan. I believe BIGBANG and EXO are prime examples of this phase.

Then came Phase 4: BTS and BLACKPINK. This marked the flow where content created in Korea spread directly to Japan and the world. This landscape took about 20 years to materialize.

Watching this unfold, we dreamed of whether we could convey Japanese music overseas in the same way. Honestly, at first, I thought, "Is selling overseas, especially in America, too difficult?" But driven by a strong conviction that "this is where we must challenge ourselves," we've been working on it for about ten years now.

With technological advancements creating an environment where Japanese music can be naturally heard worldwide, I believe there's also been a natural expansion of music alongside Japan's unique popular culture, like anime and games. Speaking of K-POP's phases, it felt like they skipped straight to Phase 3, which was surprising in a good way. What we're doing now aligns with Phase 1's approach—tailoring content to each overseas market and culture—so it's incredibly challenging. We face barriers like cultural norms, customs, and regulations daily.

──Now, music from Japan and Korea is expanding globally, transcending national and regional "barriers." Has the approach to artist development changed in line with these shifts in the music industry?

Inou: It's changed in many ways. Twenty years ago, it was mostly Korea absorbing the strengths of J-POP we developed. Now, however, there's a lot we can learn from K-POP, including in marketing and creative aspects. For about the last decade, we've been finding promising young artists in Japan and nurturing them while incorporating K-POP's excellent know-how. We want to accelerate this trend even further.

With Japanese culture gaining global recognition in recent years, I believe emphasizing Japanese uniqueness and distinctiveness is key to differentiating ourselves from K-POP. While being conscious of a Japanese identity viewed through the world's eyes is important, I feel messages that express our identity as Japanese people resonate more deeply.

──You mentioned Japanese culture. Avex has long been about more than just music; it's been about disseminating culture too, right?

Ino: That's right. Creating culture and movements is something we place great importance on. We started as a company without original content, so we built momentum through events and trends and turned that into business. Our history involves creating artists aligned with these movements and then entering the world of content. so we hold the belief that "if we don't do something new within the industry, no one will take notice."

What perspective and literacy are required of producers who can compete globally?

──Let's talk about producers who discover artists and bring them to the world. How are they developed?

Inou: Historically, star producers were usually right beside other star producers.

Matsuura (Katsuhito, Chairman of Avex) was constantly by Tetsuya Komuro's side, learning firsthand how hits were made. I think the ideas he thought, 'If it were me, I'd do it this way,' came into play when he became a producer himself.

Of course, innate talent plays a role too. But many successful producers, like Mr. Hidaka (Mitsuteru, CEO of BMSG Co., Ltd.), also learned by observing Matsuura.

──So it's more like an apprenticeship system than learning within a company's training framework.

Ino: Of course, we have training sessions for development, but those who notice things you wouldn't pick up from lectures alone become star producers or directors. We also get inspiration from young employees who are verifying methods and know-how right beside the stars.

──Are there people who aim to become star producers from the moment they join the company?

Inno: Quite a few. As a company, we guide those employees through a process: strengthening their business acumen, getting hands-on with digital, sensing what sells in the field, and encouraging creative work. While the apprenticeship system is historically effective, we also have a training policy focused on acquiring specific knowledge.

However, while the music industry has seen an increase in talented and passionate individuals, it's a bit of a dilemma whether it's good that after three years, everyone starts to be colored by the company's culture. Knowledge is necessary, but it's knowledge for execution. I want them to hold onto that pure, innocent sense of timing, close to the users, when it comes to ideas.

What I always say during internal interviews is:

"What we're selling is music, but beyond that are artists pouring their very souls into creating it. For every single post, every radio airplay, we carry the weight of an artist's life on our shoulders. Our job is to move the people who listen."

What matters more than intelligence is constantly thinking about that artist and their music, and endlessly considering how to get people to listen and be delighted.

──So, how do you envision the ideal talent who can team up with artists to compete on the global stage?

Inou: Japan has many creators who can succeed globally, but what's overwhelmingly lacking are business planners capable of global marketing. Compared to the rest of the world, we have few planners and marketers. While there are people focused on the domestic market, there are very few individuals, media outlets, or platforms actively promoting content overseas. This is something I've felt strongly working frequently on PR and marketing in Korea. I believe not just content teams, but Japan as a nation, should have greater outreach capabilities, which is why I continue discussions with the government and media.

Finding talent in Japan who understands entertainment business, Japanese culture, the differences between Japanese and overseas approaches, and can turn that into business— Finding people with that specific skill set in Japan is very difficult, so we often end up relying on Korean talent.

To become artists loved worldwide.

──I believe a common trait among artists gaining global popularity now is high DEI literacy and the ability to see things from a global perspective. Avex manages many popular boy groups like Snow Man, but here we'll focus on two groups.

The first is ONE OR EIGHT. They debuted globally after training. What was the strategy?

Inoh: Learning from pioneers in the entertainment industry, we wanted to create a "boy group where local teams in each country handle management," both in Japan and globally. As Japan faces an aging population and declining birthrate, we realized we must expand overseas. We wanted local teams across Asia who understand local cultures and can network effectively. So, we started by scouting talents who could undergo a proper training period to acquire world-class quality and skills.

ONE OR EIGHT adopted an unusual approach from the start: aiming directly for the global market. As the name suggests, it was a high-stakes strategy. While we studied K-POP's strategies extensively, we didn't possess that knowledge outright, so it felt like fighting our way through the dark.

As mentioned earlier, there's almost no media coverage originating from Japan. But after six months, touring Asia, North America, and South America, I was both surprised and relieved to find fervent enthusiasm—albeit from a small but passionate group—even on the other side of the globe. I truly felt the growth of the market for Japanese and Asian artists. The fact that about 70% of our social media posts, MV comments, and followers are from overseas is an extremely rare ratio in Japan.

──You also secured a global major label deal in the US.

Inno: We initially thought we'd start with Asia, but then Ryan Tedder, the producer of our debut song, told us, "Tokyo is trending right now." We also heard that with BTS on hiatus, boy groups were seen as something very novel in America, and there was the Ohtani fever... Japan and Japanese artists were gaining value in the US, so American media, labels, and fans all showed interest.

I believe the fact that we became the first Japanese boy group to chart on the US Radio Top 40 was also due to this backdrop of something new arriving. While there might have been aspects that seemed strange from a Japanese perspective, we prioritized producing content that aligned with how cool Japan appears from an American viewpoint.

──Next, I'd like to ask about BE:FIRST (BMSG), who also originated from an audition program broadcast on Japanese terrestrial TV. They too successfully completed a world tour.

Inou: It feels presumptuous for me to comment on BE:FIRST, but speaking purely from my perspective, what stands out most about BE:FIRST is the incredible passion and vision of their producer, Mr. Hidaka. Even amidst the strong image of AAA as a major brand, he held a firm conviction: "I want to create a production company and compete." I think he embodies, from his position as a production company president, that sense of discomfort – the feeling that all artists possess talent – which he likely felt precisely because he is an artist himself.

We established the joint label B-ME from a position of "Of course, let us assist you," but even through the audition show's screen, Mr. Hidaka's passion kept radiating through. The resulting BE:FIRST is truly a beloved IP itself.

Amid growing concerns about talent flowing out to K-POP, only those who overcome that challenge and rise to the top become stars. I believe Mr. Hidaka took that gamble and won.

──So we have two groups: ONE OR EIGHT, developed behind the scenes and launched with international exposure, and BE:FIRST, who emerged from the audition stage under the watchful eyes of a wide age range. What conditions do these two groups share that make them artists capable of succeeding globally?

Inoh: The global standard is essentially about delivering a finished product, so language and skills are hugely important. The requirements include having global business etiquette and sensibility, understanding Japanese culture, and being able to articulate culture and business in your own words.

K-POP is about three steps ahead of us and has accumulated knowledge, but Japan hasn't yet established a mature overseas market. However, by increasing the number of Japanese artists active globally, I believe the value of the Japanese cultural sphere will rise. We want to build a market where people recognize Japan as an interesting country with boys, girls, singer-songwriters, YouTubers, bands, and rappers. We also want to create the media and platforms to broadcast this.

The marketing approach is challenging. While K-POP has accumulated knowledge from succeeding in Korea before tackling the overseas market in English, Japan is still very much in the growth phase. We aim to nurture artists accepted internationally, build media and platforms, and elevate the value of Japanese culture.

In this first part, we heard about the music market and artists, and from discussions about "overcoming cultural and national barriers," we gained insights into DEI literacy and a global perspective – hints for "DEI-focused communication" in global business.

In the second part, we will explore the nature and cultivation of the "human capabilities" that underpin this business.

The information published at this time is as follows.

Was this article helpful?

1

Share this article

Author

Takeya Ino

Avex Music Creative Inc.

After joining Avex as a new graduate in 1995, he gained experience in sales promotion, advertising, and production. In 2017, he was appointed Executive Officer of Avex Entertainment Inc. He currently also holds the following positions: Director, Avex Entertainment Inc. Director, Avex Music Publishing Inc. Director, Avex Taiwan Inc. Director, Avex China Inc. Director, Avex Music Group LLC

Haruko Arahara

Dentsu Inc.

In the entertainment sector, I have been involved in developing new businesses such as film and program production and event planning, gaining experience across numerous projects from business plan formulation to investment, production management, and execution. Currently, I primarily handle tie-up production for artists, films, and anime.

Learn more about this author

Series

Tetris#DEI Communication

Articles by this person

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

DEI Natives Are Transforming Entertainment. (Part 1) ~The Future of the Music Market and Artist Production~

Akira Masuyama

Dentsu Inc.

dentsu DEI innovations<br> As a Creative Director, has managed over 50 clients, primarily national accounts. Has received numerous domestic and international advertising awards in creative, media, and digital categories. Has served as a judge for various awards. Engages in identifying challenges and developing solutions based on diverse creative experience spanning mass media, digital, promotions, and social media, combined with specialized expertise as a DEI consultant. At dentsu DEI innovations (formerly Dentsu Inc. Diversity Lab), I address various diversity issues, including LGBTQ+ and others, with extensive experience as a seminar lecturer and workshop facilitator. Also involved in consulting on gender expression and universal design (UD) methodologies. Diversity Attendant and Dentsu Inc. Team SDGs Consultant. Author and co-author of five-volume children's book series: "LGBTQ+: What We All Want to Know" (2022, Bunken Publishing), "Diversity: What We All Want to Know" (2023, same publisher), and "Biodiversity: What We All Want to Know" (2024, same publisher).

Learn more about this author

Series

#DEI Communication

Articles by this person

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

DEI Natives Are Transforming Entertainment. (Part 1) ~The Future of the Music Market and Artist Production~