Katsumi Kuroiwa, CEO of Avex Inc., has once again been recognized among the global music industry’s most influential leaders on Billboard’s prestigious Global Power Players list. This annual ranking highlights individuals who are instrumental in shaping the international music business landscape beyond the United States. In an exclusive interview with Billboard JAPAN, Kuroiwa offered insights into Avex’s strategic vision, detailing the company’s groundbreaking partnership with global superstar Bruno Mars, its ambitious catalog acquisition project, and the inherent challenges of expanding Japanese artists onto the world stage.
Avex Music Group: A Global Bridge for Asian Talent
Avex Music Group (AMGL) operates a dual business model encompassing both label operations and music publishing. Kuroiwa emphasized that establishing a significant presence in the competitive American market necessitates the creation of unique and compelling creative content. "To make an impact on the American market, first and foremost, we had to make unique creative content," Kuroiwa stated. "We started out through the song and publishing business, acquiring rights and building a solid system with a strong local presence." This foundational approach underscores Avex’s commitment to a long-term, strategic growth trajectory.
The company’s overarching ambition is to serve as a vital conduit, connecting Japanese and broader Asian artists with a global audience. AMGL boasts a robust network of accomplished songwriters who have contributed to the success of a diverse array of artists, ranging from international titans like Justin Bieber and Drake to frontrunners in the K-pop scene, including ILLIT and LE SSERAFIM. Kuroiwa highlighted the significance of providing a central hub for these top-tier creators to converge and pool their creative energies. "What’s important is that top creators like these have a hub where they can come together and pool their creative output," he explained. This collaborative ecosystem is credited with enabling Avex’s own artists, such as BE:FIRST, ONE OR EIGHT, and XG, to consistently produce world-class music and pioneer innovative sounds.
Recognizing the inherent difficulties Japanese artists face when attempting to penetrate overseas markets independently, Avex has invested in establishing local music production facilities. The presence of Avex House and Avex Studios in strategic locations provides a tangible infrastructure that fosters collaboration. These facilities facilitate the organization of comprehensive song camps, bringing together leading global creators with talent from Japan. Kuroiwa articulated the potential of this model: "If this approach functions successfully, then artists—not just our own, but from other labels, as well—will be able to spread their wings overseas. We’ll be using this unique network, focused on local sites, to further expand our range of activities." This strategy not only benefits Avex artists but also aims to create opportunities for artists across the wider Japanese music ecosystem.
The Bruno Mars Partnership: A Bold Move Towards Global Synergy
The recent announcement of a global music publishing partnership between AMGL and Bruno Mars sent ripples throughout the industry. This collaboration signifies a major step in Avex’s global expansion strategy. Kuroiwa revealed the personal connection that facilitated this landmark deal. "Brandon and Bruno Mars’ manager is a close family friend of mine, and sometime last September we had a meal together in Los Angeles," he shared. The artist’s profound affection for Japan and Korea, coupled with his relentless pursuit of new creative challenges, made him an ideal partner.
"Bruno loves Japan and Korea. He’s a global superstar, and he’s always overflowing with ambition to take on new challenges and try new things," Kuroiwa stated. The agreement grants Avex the global music publishing rights for Bruno Mars, a move that Kuroiwa believes will unlock significant creative avenues. "We have high hopes for the specific directions he’s going to be taking. We’d like to create a collaboration with him like ‘APT.’ We think it would be interesting to combine him with unique Japanese culture, and to go global with it." This vision points towards a future where established global artists can tap into unique cultural elements and distribution channels facilitated by Avex, creating novel and globally appealing content. The partnership is poised to capitalize on the growing opportunities for direct engagement with the global market, leveraging Avex’s established network and expertise.
The impact of Avex’s commitment to fostering global talent was further underscored by the Grammy win of AMGL writer Kamal Wilson for Best R&B Song for Kehlani’s "Folded" at this year’s Grammy Awards. This marked a significant milestone as the first Grammy received by an Avex-signed artist. "This is the first time one of our signed artists has won a Grammy," Kuroiwa noted with pride. "I think having a writer like this, someone who has taken the world’s top honors, on our team will have an immeasurable impact on our future business."
Kuroiwa elaborated on the organic nature of such successes. Kamal Wilson’s deep collaborative relationship with Kehlani and his instrumental role in creating "Folded" exemplify the kind of creative synergy Avex aims to cultivate. The spontaneous suggestion for a collaboration between Kehlani and an Avex artist, born from their existing trust and creative rapport, demonstrates how Avex’s internal network can naturally generate global opportunities. "It’s not like a collab was created in the office, with a businesslike approach. Instead, the trust between different creators and the connections of our internal network have produced a system that naturally generates these kinds of opportunities and does so on a global scale," Kuroiwa explained. This approach, combined with securing rights and supporting artists, is designed to elevate talent to the international stage.
A $100 Million Catalog Acquisition Project: Beyond Ownership
Avex has also announced a substantial global music catalog acquisition project with an estimated scale of $100 million. This significant investment signals Avex’s strategic intent to bolster its presence in the increasingly valuable music catalog market. Kuroiwa acknowledged the inherent strengths of the catalog business model, particularly in the era of music streaming. "The catalog business model is a robust one, and its value has been proven in the streaming age," he stated. "The whole market is keeping a close eye on it, because great songs from the past are extraordinarily valuable assets that generate stable revenue." The consistent revenue streams generated by well-established catalogs make them attractive assets for music companies seeking financial stability and growth.
However, Kuroiwa was keen to clarify that catalog acquisition is not an end in itself for Avex. "What I need to emphasize is that buying and selling catalogs isn’t our ultimate goal. Catalog acquisition and sales are just a method of achieving our goals," he stressed. The true objective lies in leveraging these acquired assets to fuel new creative endeavors. The company intends to harness the expertise and network of individuals like Brandon, a key figure in their catalog strategy, to not only acquire but also to maximize the value of these catalogs.
"What we really want to do is to use Brandon’s exceptional judgment and network, and that of his team, to their fullest, acquiring catalogs, maximizing their value, and using them to produce new creative content and new music," Kuroiwa elaborated. This forward-thinking strategy goes beyond mere ownership of intellectual property; it focuses on revitalizing and reimagining existing musical works through innovative initiatives and unprecedented collaborations. This proactive, creative approach is at the core of Avex’s objectives for its catalog investments. The successful establishment of the $100 million framework and vision is a testament to the strong trust Avex has cultivated within the U.S. market, demonstrating that its strategic direction resonates powerfully with industry stakeholders.
Exporting Japanese Artists: The Challenge of National Frameworks
The recent success of XG, the first Japanese artist to headline the Sahara Stage at Coachella last year, generating significant international buzz and leading to a world tour this year, highlights the growing global appeal of Japanese musical talent. However, Kuroiwa identified significant challenges in the broader export of Japanese artists. He pointed to the Japanese government’s recognition of the content industry as a key growth sector, with a target to increase exports to 20 trillion yen by 2033. This governmental focus on consolidating disparate entertainment sectors—games, anime, movies, and music—under the umbrella of a "content industry" signals a crucial shift in national economic strategy.
"The Japanese government has positioned the content industry as one of Japan’s core industries, and aims to increase exports to 20 trillion yen by 2033," Kuroiwa observed. "I think that’s a great step forward." He expressed optimism about the government’s commitment to this goal but emphasized the need for a robust, national-level framework to truly propel Japanese artists onto the global stage. This framework, he believes, must acknowledge and leverage the profound ripple effects that entertainment can generate.
Kuroiwa cited the current landscape where private companies bear the full brunt of financial risk associated with global expansion efforts, such as organizing overseas concerts. The recent cancellation of an Ayumi Hamasaki concert in China, which resulted in the loss of significant invested time and resources, serves as a stark example of this vulnerability. "When a concert is suddenly cancelled due to local circumstances or sudden unforeseen events, private companies take all of the losses," he stated, highlighting an area ripe for improvement.
He advocated for a broader perspective that considers the immense ancillary economic benefits that entertainment provides to a nation. Using the example of Taylor Swift’s concerts in Japan, where a substantial portion of tickets were purchased by international fans, Kuroiwa illustrated the cascading economic impact. These fans not only attended the concerts but also contributed to the Japanese economy through travel, accommodation, and tourism, generating billions of yen in economic activity and substantial tax revenue for the government.
Drawing parallels with successful international models, Kuroiwa pointed out instances where governments have strategically provided public support and infrastructure, sometimes amounting to billions of yen. These investments have yielded returns far exceeding the initial outlay, in the form of massive tax revenues and broad economic benefits that stimulate the entire nation. "I think it’s vital that Japan invests, not so that private companies can profit, but to bring in foreign currency and stimulate the entire nation’s economy, with the private sector and the national government working together," Kuroiwa urged. He concluded by emphasizing the necessity for the Japanese government to adopt this long-term, national economic perspective, integrating it as a consistent element of its economic policy.
This interview, originally conducted by Naoko Takashima for Billboard Japan, provides a comprehensive overview of Avex Inc.’s ambitious global strategy under Katsumi Kuroiwa’s leadership, underscoring a commitment to innovation, collaboration, and the robust expansion of Japanese music and culture worldwide.
