California Department Of Consumer Affairs

I was a regular on several major world music conferences over the years, the MIDEM (Cannes) and Popkomm (Berlin) for the Canadian Music Week (Toronto). These not only is a great opportunity to meet and do business with companies in major Western markets, but also get a real look at the challenges and opportunities specific to these markets. So it is with a lot of excitement that I have made ​​my time in Hong Kong for my first trip to Asia, and the fourth edition of Music in the Grand Hyatt issues of 2-4 June (http://www.musicmatters.asia).

From the outset it was clear that music is important to express a different feeling than most other conferences, more than what I would call the "family business". Unlike other conferences that offer plenty of both, often lightly attended, Music raises issues unique program followed by all delegati.Poruka is clear: If you want to understand the Asian market, here's the information you will need. While the other conference participants that are available to facilitate the meeting schedule in advance, Music Matters has a completely opposite approach. "We want free-flowing networking events where everyone has access to everyone in an open format," said Commercial Director Stan Rose.

While I was initially skeptical that this will work, it ended up being a nice and productive changes, especially for someone looking to build a broad base of contacts in Asia. I left with as many contacts as I do from other conferences, though much smaller - consisting mainly of decisions from all major Asian markets: from Tokyo to Mumbai, Sydney, Kuala Lumpur.

Japanese Nirvana

While I learned a lot about the Asian market in these two days, the most surprising "discovery" is actually a question: when will the Japanese music market to surpass U.S. # 1 position? More shocking are the estimates in the range of only 50-10 years.

So, what exactly is going to justify this doomsday scenario (at least from the perspective of the U.S.)? Simple: Japanese love music, and still more than willing to pay for it, whether old or young. Kei Ishizaka, CEO and president of Universal Music Japan, LLC and RIAJ (Recording Industry Association of Japan) President presented some facts in his opening speech, "new strategies and opportunities in Japan," which might make some in the West, red with envy:

* Digital Sales in Japan increased from 7.5% in 2005 to 20% in 2008
* Mobile is a driver, accounting for 89% of digital sales in 2008
* Please note that this is a slight decrease from 94% in 2005, posted on iTunes Japan, which accounts for 50% of online sales
* Japan is the only music market where digital sales made ​​for losses in physical sales - that is until 2008, when the physical loss seems to be outpacing sales growth in digital
* Japanese music consumers appear relatively price inelastic, with the willingness to pay the highest prices of any country music: up to $ 4/ringtone and $ 30 + / CD album
* Japanese music industry is still a hit-driven

Perhaps most importantly, the Japanese music industry did not abandon its most profitable customers: those over 40 godina.Prljavi little secret in the United States that, according to SoundScan, CD sales fell faster among those over 40, mostly from neglect label focused on the youth market. Japanese music companies on the other hand, consciously developed a product for more than 40 demographic, which (i) does not download music, and (ii) are willing to pay big bucks ($ 30 +) for CD-quality (ie music, packaging ...).

This does not mean that Japan is a complete musical nirvana: more music took over the illegal funds (407 million songs), but the legal (329 million songs) on mobile platforms. In 2006, RIAJ sent over 220,000 takedown notices, and has since filed a criminal complaint against mobile BBS (Bulletin Board System) web operators. However, despite these challenges, the Japanese market is growing non-stop, with the exception of 2008, when it recorded a measly 3% drop in sales, which is usually seen as a trend in the coming years.