The big Japanese companies are entering the sector relying on local operators
Although the music market in the last few decades has definitely changed, the possibilities for profit are still many. For this reason, Japanese record labels Sony Music and Avex have decided to conquer the Chinese music market and have collaborated with local music streaming operators. The idea is to promote J-pop and anime songs.
Avex – a Tokyo-based entertainment conglomerate, featuring artists such as Pikotaro, singer of the famous “Pen Pineapple Apple Pen”, and Ayumi Hamasaki – took its first steps in the Chinese market by opening its music library to Migu Music, a music streaming company affiliated with China Mobile.
Migu Music’s half a billion subscribers can now enjoy 30,000 songs and 3,000 Avex music videos, most of which are Japanese pop music. The Japanese company has also offered 30,000 ringtones for the 900 million courier users.
The music streaming market in China is twice as large as in Japan
Avex’s partnership with Migu is definitely a step towards the future. Looking at the age of 5G wireless technology, the two companies intend to stream music concerts with 360-degree cameras in the near future. Avex’s foray into the Chinese music scene follows that of Sony, which last year partnered with Tencent Music Entertainment Group.
The music streaming market in China, on the other hand, is twice as large as the Japanese one, making it an attractive target for record labels in the rising sun. In addition to streaming Sony titles, Tencent is also responsible for promoting sales, licensing, and copyright protection on behalf of its Japanese partner.
The Chinese music streaming market rose 60% in 2018
But the operation is not just about big names. In fact, among the smaller competitors, there is AniUta – a Tokyo-based streaming service specializing in anime songs – that linked to the Chinese Bilibili video sharing site. The labels hope these links will help them acquire a significant slice of a market that is twice as large as the Japanese one.
The Chinese music streaming market rose 60% in 2018 from the previous year to $ 1.06 billion (7.6 billion yuan) and is expected to reach nearly $ 6 billion (42.5 billion yuan) in 2023, according to the Chinese research firm iResearch.
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