Music News

On Feb. 13, 2024, BMSG, Inc. made waves in the Japanese music industry with their statement, “BMSG’s Recommendations for Pulling the Music Industry Back from the Brink of Unsustainability.” The announcement discussed the problems of Japan‘s music industry, which still heavily relies on CD sales. One of the issues discussed was how this reliance on physical media has led to people purchasing multiple copies of the same CD, contributing to the generation of excessive waste. BMSG declared its commitment to taking action to change the music industry’s structure and minimize CD waste.

The announcement highlighted that the bulk-purchasing of CDs has been a longstanding issue, sparking debate for over a decade. The fact that this announcement came from BMSG, a record label and management agency home to dance and vocal groups with passionate fandoms, created a huge stir, both inside and outside the industry.

In a revealing interview in The Quiet Revolution of Billboard Japan, published on Feb. 20, SKY-HI, CEO of BMSG, Inc., elaborated on the issues highlighted in the company’s recent announcement. Seiji Isozaki, the book’s author and chart director for Billboard Japan, shared his insights from the conversation.

“It was my first time meeting SKY-HI in person, but I’d heard a lot about what he’d said and done before. Some of his activities involved the hit charts, and I found them really thought-provoking. They motivated me in creating the Japanese charts. I thought that discussing the charts with him would offer insights into the artists’ perspectives on chart changes and allow for a multifaceted exploration of issues surrounding hit charts.”

“Meeting him in person, what I felt was his flexible stance on living in the present. At Billboard Japan, we’ve also continued to think about the limits and possibilities of the current music industry through our efforts with the hit charts. Although our positions are different, I strongly felt that he had also been grappling with the same issues, and it was a very encouraging dialogue.”

At the April BMSG convention, members of the entertainment industry watched SKY-HI’s presentation, where he reinforced the company’s commitment to these sustainability recommendations. Through the presentation, which was later streamed on YouTube, SKI-HI spoke directly about the recommendations, sharing them with the rest of the world.

BE:FIRST’s concept single, “Masterplan,” released on April 24, was the first project to embody BMSG’s sustainability proposal. The single comes in a paper sleeve to reduce the amount of plastic generated by CD production. BMSG also eliminated retailer-specific add-ons — collectibles that come with CDs sold by specific music retailers that are randomly packaged with CDs, both of which drive bulk CD purchasing. Due to these decisions, the number of CDs shipped during the period from April 24 to May 22 fell by roughly 70,000, but total sales of singles and single-related merchandise, including merchandise featuring the single’s art, roughly doubled. Using paper sleeves cut plastic usage during the CD production phase by 10 tons and reduced the amount of associated CO2 emissions by 59 tons.

The title track, “Masterplan,” made a splash by debuting at the top of Billboard Japan’s Hot 100 song chart. The album’s solid chart results demonstrated that it’s possible to take the number one position without relying on the bulk purchasing of CDs by fans or retailer-specific add-ons.

“When we think about what makes a hit,” said Isozaki, “it’s important to look at how the hit charts are structured and how valid those charts are—whether those charts resonate with people. Getting to know the evolving Billboard charts in the US and the individuals shaping their evolution, I’ve come to deeply appreciate the significant responsibility we bear.”

“In the U.S., in the early ’90s, Nielsen Music (now Luminate) succeeded in collecting point-of-sale data from record stores across the country. Until then, data had been generated based on the results of fax and telephone surveys. The shift to this new, objective data collection method revolutionized the Billboard Hot 100 lineup overnight. The changes came as quite a shock, both inside the industry and out, and profoundly transformed what it means to be a hit. One thing we find very impressive is how Billboard’s charts have been able to keep resonating with people in the same way by constantly making adjustments, adding new data such as downloads and streaming plays.”

“In the early 2010s, Japan saw a surge in fan-driven bulk purchases due to customer participation activities. The phenomenon brought renewed attention to the practices of the music charts. This raised a dilemma. On the one hand, we needed to recognize the support that fans provided artists by bulk-buying their music. On the other hand, we also needed to ensure that our charts resonated with the broader audience so as to accurately represent which songs were true hits. And, no matter what, our charts should never incentivize unsustainable fan behavior that leads to burnout. So, since the mid-2010s, we’ve been meticulously adjusting the charts weekly to strike just the right balance. These adjustments have gradually reshaped Japan’s definition of a hit song.”

“Today, purchasing multiple copies of the same track has minimal impact on the hit charts. Fans desire longevity in their favorite artists’ careers. SKY-HI’s proposal invites us all to consider how fan activities in Japan can sustainably support artists.”

BMSG says that BE:FIRST’s initiatives are just the beginning of an ongoing effort to improve the sustainability of Japan’s music industry. On July 1, the South Korean boy band ATEEZ and BE:FIRST released their collaborative single, “Hush-Hush.” As BMSG sets its sights on the international arena, it is extending its reach beyond Japan’s borders. The full impact of these moves on the music industries of Japan and the wider world remains to be seen, yet it is evident that BMSG is steadfast in meeting these challenges. 

This article by Seiji Isozaki and Maiko Murata first appeared on Billboard Japan.