Interlude — Label Echo Sound's Tokyo Office
Aside from the daily staff, the only people who ever visited this office were the members of Group Sound, lost souls who had taken a wrong turn, or the occasional courier delivering the building's circular newsletter. It was a bleak, unadorned space, which made the sudden arrival of two unexpected guests all the more unusual.
Manager Jung Yuyoung, who had been buried in her work, rose to greet them.
"Welcome, Deputy General Manager Takahashi. You didn't have to come all this way; we could have easily dropped by your office..."
"No, not at all. It is only proper that we pay our respects in person."
"We don't have much to offer, unfortunately... Would you like some coffee? We have some instant mix brought over from Korea. Ah, Suyun! The Zenith Music team is here."
"What brings them here?"
As Yuyoung guided the Zenith Music staff to the conference table, she called out to Suyun, who was just stepping out of the makeshift soundproof booth-slash-practice room in the corner of the office. Suyun glanced at the two visitors with a look that clearly asked what they wanted.
"Hello. It's been a while."
"Ah, yes... Hello."
Unlike Suyun, who looked entirely indifferent, the Zenith Music staff's faces brightened instantly at her sight. Watching this, Manager Jung Yuyoung had a sneaking suspicion she knew exactly why these people had insisted on coming all the way to their office.
"...And so, the total number of albums sold in Japan to date is 98,351 copies. Please note that the 30,000 albums you imported previously will be settled separately according to the contract signed at that time."
"Yes, I understand."
"Considering the wholesale price of the album and other factors, here is the detailed breakdown of the calculations..."
With those words, Takahashi, the Deputy General Manager of Zenith Music's accounting department, handed over a sheet of paper densely packed with complex calculations and detailed figures.
Album sales: 98,351 copies. And the royalty distribution rate allocated to JASRAC (Japanese Society for Rights of Authors, Composers and Publishers) was 6%.
"How are the copyright royalties settled?"
"First, JASRAC takes a 0.36% cut, and then they distribute the rest. You will receive the copyright royalties separately at a later date."
Listening to his explanation, Manager Jung scanned down the document. When her eyes reached the line showing Label Echo Sound's share, the estimated amount was...
"It's about four hundred million won."
"That is correct."
Manager Jung scratched her head. Four hundred million won. It was certainly a massive figure compared to the Korean market. However, considering the album price was 4,400 yen and they had sold nearly 100,000 copies... it wasn't actually as astronomical as one might think.
Is this why Japanese bands set up their own private labels and go independent once they get some experience under their belt?
"Four hundred million won?"
While Manager Jung was lost in thought, Suyun, realizing they were talking about her money, slipped over and asked. Manager Jung replied to her in Korean.
"Yes. And that's not even counting the albums sold in Korea yet. This is purely the profit from the Japanese sales."
"Is all of that our band's money?"
"Of course not. The company has to make a profit too."
Label Echo Sound and Group Sound had recently renegotiated their profit-sharing ratio. The original 5:5 split had been adjusted to 40% for the company and 60% for the band. Therefore, the payout for Suyun standing right in front of her would be...
"Your share comes out to about sixty million won, Suyun."
"Really?"
"Yes. And since you'll be getting copyright royalties on top of that, your total income will probably reach around a hundred million won. Your composer royalty rate is 1.41%."
"Whoa..."
Suyun ran a hand through her hair. A hundred million won? Of course, it wasn't a sum she had never seen before in her life. She did have a period when she made good money. But even back then, she had never made a hundred million won from a single album release.
Besides, the modern revenue model for artists relied far more on live performances than album sales. To clear a hundred million won purely from album sales meant...
"Let's have dinner tonight. My treat."
"If you're offering... we certainly won't say no."
While the office staff cheered at the exchange, a polite cough sounded from the side. Manager Jung turned her gaze in that direction.
Having cleared his throat to draw their attention, Deputy General Manager Takahashi addressed Manager Jung in a serious tone.
"At any rate, that is how the settlement will proceed... The real reason for my visit today is to ask: when are you planning to release the next album?"
"The next album? Suyun, do you have any plans?"
"Who knows."
Suyun tilted her head slightly, and Manager Jung rubbed the back of her neck, unable to hide her bewilderment. They hadn't even finished the promotions for this album, let alone started a live tour, so why were they already bringing up the next one?
Wait, could it be that?
As Manager Jung expanded on her previous train of thought, Takahashi of Zenith Music hesitated for a moment before speaking.
"Since this album has been such a massive success, we aren't suggesting you start working on it this very second... but we believe it would be highly beneficial to start planning the next one."
"That makes sense, but shouldn't someone from A&R or production be the one discussing this with us?"
"While production is important, other aspects of an album are equally crucial. Such as contractual terms, profit-sharing ratios..."
I knew it.
Hearing him tip his hand, Manager Jung felt her suspicions confirmed. She had wondered why they bothered to come in person when they could have easily sent the settlement papers by mail. It turned out they had come to whine about the profit-sharing ratio.
They must have taken a massive beating from their higher-ups.
Normally, the money allocated to Label Echo Sound and Group Sound would have been mere pocket change. Having to split a measly 1.5% royalty rate in half meant they wouldn't even cover labor costs.
But the bold decision made by Suyun, who had wielded full authority during negotiations, had brought in over ten times that amount. And that was just the Japanese revenue; if they added the 30,000 copies currently selling in Korea, the total earnings would be astronomical.
Furthermore, those 30,000 copies were albums they had acquired almost at cost to help offset Zenith Music's deficit...
Maybe I should buy a new car?
Manager Jung indulged in this happy fantasy while looking at Takahashi. He clearly wanted to outright beg to renegotiate the profit split, but he was visibly struggling, bound by corporate responsibility and contract clauses.
"Hmm... Still, we would prefer to discuss those matters after we finish the live tour for this album."
"Won't it be too late by then?"
"I don't think so. Our Suyun here is the type of genius who can write songs even while in the middle of a live tour. Right, Suyun?"
"Yeah. But what are they making a fuss about?"
"They came to ask us to adjust the profit-sharing ratio."
"They must have gotten absolutely thrashed by their bosses. Bringing this up the moment the album drops."
"Exactly. At any rate, we don't have any concrete plans for a new album just yet."
"Well, surely we could at least sketch out a rough plan...?"
Watching Takahashi try his best to look pitiful, Manager Jung chuckled inwardly. Did they have any idea back when they signed the contract? That they, who had been power-tripping so smugly, would end up in this position? This was why one should always maintain a good heart and live humbly.
"Good morning~"
"Good morning!"
FM-Wave. Established in the 1980s, it was a Kanto-based radio station that had firmly maintained its reputation as a premier music-focused broadcaster.
Walking with a confident stride and exchanging greetings with the staff on his way to his office was Kato Minoru...
...the main producer of Sonar Music, the live music program that FM-Wave proudly broadcasted every Friday.
It was a position of considerable influence within the station.
"What's my schedule look like today?"
"You have a lunch meeting with Director Kobayashi at noon. A meeting at three. And at four, someone from Zenith is visiting for a promotion-related meeting."
"Zenith? What do they want now?"
"They reached out about a promotion a while back. You agreed to it then."
Kato massaged his temples. Had he? Thinking back calmly...
"Ah! That! Right, right. That did happen. I completely forgot. Hmm... I promised to leave a slot open for them. Did we book another group for that slot?"
"No, we didn't."
"As expected of Ms. Inoue. You're always so thorough. If I had forgotten and booked someone else, Zenith would have thrown a fit."
"It's a daily occurrence."
"Hey, don't say that to your boss!"
Kato laughed and patted the shoulder of his assistant, Ms. Inoue. She visibly grimaced and brushed his hand off. Chuckling at her reaction, Kato walked into his office.
Time flew by, and soon it was 4:00 PM.
"Producer, Mr. Ikeda from Zenith Music's PR team is here."
"Send him in."
Ms. Inoue's voice crackled over the intercom. After a brief wait, a very familiar face walked through the door. It was Deputy General Manager Ikeda, one of Zenith Music's PR representatives. Kato had worked with him many times and shared plenty of drinks.
"Deputy General Manager Ikeda, long time no see."
"Come on, Producer. Long time no see? We just met the other day."
"Isn't that long enough?"
"Not at all. I'm always thinking of you, Producer. It hurts my feelings when you say that."
"What good is a man's thoughts to me! Haha! Anyway, sit, sit. No need to stand. Ms. Inoue! Bring us some coffee, please."
Kato sat back in his chair with a thud. In contrast to Kato's boisterous, friendly demeanor, Ikeda sat down with polite caution. Satisfied with this respectful attitude, Kato addressed him.
"My memory is a bit hazy. Who did we say was going to appear, and when? I can't remember if the slot is fully booked or not."
"Producer, you're really hurting my feelings here. We agreed to have our rookies on the show."
"Ah, you know how it is when you get old. Your memory starts to go. Just wait until you're my age."
"I'm sure I'll get there eventually. Anyway, our rookies... they're a band from Korea. They're called Group Sound."
Despite the subtle pressure, Ikeda slipped through like an eel and handed over a promotional folder. Kato let out a good-natured laugh as he accepted the materials. They were quite pretty girls, but... Korea?
"These girls are Korean?"
"Yes. Haven't you heard of them? They're the talk of the town right now."
"I listen to countless artists, and there's always someone new trending. I can't keep track of them all."
"They're the biggest rookies in our company's history. They've already sold 130,000 copies."
"130,000 copies?"
Kato narrowed his eyes. 130,000 copies? A rookie band? Even for an all-girl band, 130,000 was a number that couldn't be ignored.
"They sang the theme song for Love Can't Be Erased with an Eraser. Have you heard 'I'll Wait'?"
"Ah, that song! Yes, it's quite good. Even my wife is obsessed with it."
"They have plenty of other great tracks too... That's why we were hoping to get them on Sonar Music Live. They have so many brilliant songs besides 'I'll Wait'."
Ikeda rubbed his hands together pleadingly. But Kato didn't give him a straight answer, steering the conversation elsewhere.
"Do you think they can handle it?"
"Pardon?"
"My show... Sonar Music Live is a tough gig for an all-girl band. You know that, right? The acoustics are demanding, the live audience is highly critical, and our listeners will immediately complain if we bring on someone who lacks real skill. The bar is set very high."
Kato laid down the law. While he had enjoyed "I'll Wait," he didn't believe a band whose live performance skills were completely unverified belonged on his show. If Zenith Music pushed hard enough, he might give them a slot, but if they weren't up to the task, giving up now would be better for Zenith, the girls, and FM-Wave alike.
Yet, Ikeda replied with absolute confidence.
"Producer."
"Yeah?"
"Once you hear them play live... all your doubts will vanish. They are absolute monsters. Real monsters."