![]() It was an idea we had from the beginning, but we hadn't implemented it. If you just want to listen to music, this kind of extra information is redundant, like how adding too much spice can take away from the meal. ![]() Our updates have been going on in stages since February, and the biggest one is our user comment function. "Five years have passed since starting the service,” explains Ono, “and we're now at a time where the industry faces no more functions that users 'require.' At this stage, we are creating "upside functions," or rather, functions that are not necessary but are more fun to have. The "trial" part of their business style came in the form of a service renewal as they approached their 5th anniversary. On the other hand, as each competing company began to provide the same functions and songs, the market eventually became one of commodity, and became a competition of marketing and brand power. Over the next five years, the music subscription market expanded steadily. In other words, it flopped worse than expected." So there was no incentive to subscribe to their channel since they already had their CD or had downloaded their music. "It's always the artist's core fans that respond to the exclusive distributions. It became clear that the number of users wouldn't increase as expected even with exclusive distribution. A way that would allow people to discover all kinds of music." Features withįor a year or two after starting, the competition between artists and the retention of users through exclusive distribution became heated, but eventually dissipated. But he didn't want it to be only powerful artists and labels that made hit tunes, but for there to be a way for people who simply made good music to get heard by the people that ought to hear them, to spread it all over the world. Originally, looking at the history of music, it used to be the culmination of media and the hit charts that made results for the longest time. "Chairman Matsuura's strongest hope was to create a way for music to become even more popular than it used to be. In case anyone was wondering, it is now the largest service, delivering 70 million songs. AWA was forced to start the service with a less than satisfying roster of artists, initially launching with one million songs. The surprising part was that Apple Music's entry was about one month later, which was completely earlier than they had expected. So, it was Chairman Matsuura who opened Pandora's Box, so to speak, and from there, the Japanese music subscription market kicked off."Ĭompetition appeared one after another, and the market quickly became a Red Ocean. ![]() Chairman Matsuura was like 'Ok! We're making a subscription service in Japan!', and negotiated with the label to collect the music. No matter how much CyberAgent was able to develop apps, there would be no service if there was no music. "In the first place, the strengths of the two companies were completely different, so the roles were completely divided. It's easy to imagine that since the two companies have such different cultures, working together would be a difficult endeavor, but in fact it was a miraculous partnership that worked well from the start, President Ono recalls. They decided that if they were going to do it, it wouldn't be Avex contracting CyberAgent to develop it, it would be done as partners, so they invested 50% each and created the company.” But he found just the right one after talking to Fujita. Chairman Matsuura was resolved in starting a subscription service in Japan as well and was having a hard time finding the right partner to do it with. “Spotify started in Sweden in 2010,” says Ono, “but at the time it still hadn't reached Japan. In 2015, AWA began as a project produced by Avex Chairman Masato Matsuura and CyberAgent President Susumu Fujita.
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