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So Where’s the Japanese iTunes Music Store?

May 10th, 2005

Sure, I can still buy songs via the U.S. store because I still have my U.S.-based credit card with the billing sent to my folks’ house back home. And for me, that’ll do fine, because the Japanese store will likely be more expensive. Nevertheless, a lot of people here (such as my students, who would love such a chance to buy their music that way) don’t have that resource, and so would depend on a Japan-based resource. Right now, there aren’t many good alternatives; Sony Music Direct charges $2 per song or more. The Nihon Keizai Shimbun reported that Apple plans to launch the Japan iTunes store “this spring,” but there’s no sign of it happening soon. The expected date was March, but that’s come and gone. More recently, the Mainichi Shimbun reported that Apple is “poised” to enter talks with music companies here, and may have the store online by the end of the year.

Switzerland, Denmark, Sweden and Norway just got theirs, added to Austria, Belgium, Canada, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, the United Kingdom and the United States. Japan is the second biggest music market in the world after the U.S., but it is still stuck way back in the 80’s in that it is high-priced and more than a bit protectionist. Apple is being shut out while ten domestic online services sell music here, up to $3 per song. Music CDs still cost an arm and a leg here, and reports are that to sell CDs here for the ridiculous price of $30 a pop, special tracks withheld in the U.S. and elsewhere are added here to make the local versions more attractive. Bands are asked to record these tracks just for the Japanese market, which helps to discourage cheaper imports–so I hear.

When the iTunes Music Store finally does break through, it will likely not be for the 99 cents we pay in the U.S. But the question is, how much will it be, and when will it be allowed in? You know Apple has to be chomping at the bit to open up the online store here (any claims of “they aren’t trying” will fall flat), and in addition to their reputation in the U.S., Apple has a killer interface with iTunes and a popular delivery system with the iPod–which may be why they’re being locked out. Despite lagging sales, Japanese music labels don’t want to surrender the astronomical prices, and complain that Apple’s digital rights management (DRM) is insufficient–Japanese online stores all have heavy copy protection that does not allow burning onto a CD at all.

In the meantime, I’ll just recommend to my students that they get a U.S. credit card and find a friend there whose address they can use for billing, until they finish up school here and move to the U.S.

  1. Ron
    May 11th, 2005 at 16:22 | #1

    Why does one need to have a US address for a US dollar-based credit card? I’ve had two Visa cards since 1985, easily switched our address to Japan when we moved here, and now get the bills sent right to our house here near Nara. Granted, we can’t dilly-dally around about paying since they don’t give you a whole lot of time, but if they require a US address now to get a new card, that’s news to me.

    Now, we do have to have a way to pay in dollars (seems simpler, anyway), which is why my wife and I maintain our checking account in CA, but certainly there should be a way for Japanese folks (and us expats if we wish) to pay the bill in yen somehow, no? Or doesn’t globalization stretch the definition of convenience that far yet?

  2. Luis
    May 11th, 2005 at 20:41 | #2

    Globalization hasn’t spread that far yet. That’s why Apple has to open online music stores by country instead of just opening up one interface to the world. It’s not currency, it’s copyrights. Japanese distributors and labels hold the rights to songs sold in Japan, and you can’t sell them here without their permission. It’s the same with other products–some software, for example, can’t be bought from overseas, the seller won’t ship it because they’re not allowed. DVDs are no problem because they have region encoding. And that’s the whole point in the end, for local stores to sell the goods and not have to compete with those overseas.

    Long story short, Apple will only allow you to buy from their online store if you have a credit card with a billing address in that country. Few people are able to establish a billing address in a country aside from their own, so that’s what serves as the protection. I don’t think that it’s a matter of currency type, the issuer, or the ability to get statements sent overseas. I get around the protection block because I have a card and a bank account based in the U.S., and my folks live in the U.S., and can collect the bills for me.

    You might have heard people in some European store grousing about how they pay higher prices than countries not so far away from them for the same Apple iTunes store service. And when it opens in Japan, it may be the most expensive Apple iTunes store yet. And that’s controlled by local markets. We’re far from globalization as far as DRM is concerned…

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