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Celebrity 2.0 Era

 

This year, celebrities one after another are leaving their companies or committing suicide.

Again, I tried thinking about how celebrities (actors, entertainers, television stars included) should be (First, try reading this without clicking the links).

1. Rethink Celebrity Income Structure.

There are 3 big ways of incomes.
Appearance Fee  (TV, Film, Theatre), Advertisement Income, (CM, Event. Web), and Related Products (Merchandising)

Aside from salary-based salaryman celebrities, most of the talents that sell independently have more advertising revenue from commercials than performance fees.

◆Reference: How Much is a Celebrity’s Income? Entertainer 2020 Guarantee Latest Ranking! (Japanese)
https://yorozu-do.com/guarantee/

However, in countries such as the United States and China where the rights of celebrities are properly protected by contract, the income from appearances in movies and dramas is larger than the income from TV commercials.On the other hand, Hollywood film stars, etc., do not appear in television commercials.
The background is that in the United States and China, not only network stations (key stations) but also innumerable local syndication stations (local stations) have huge markets.Celebrities are not only appearing on key stations. Every time the drama is rebroadcast on a local station, you get an additional guarantee. In Japan, TV stations are networked and there are virtually no local stations, so even if you appear, you will only be paid the guarantee once.

On the American blockbuster TV “Friends,” the guarantee per person for the six major players was 2.5 million yen per episode at the beginning of the broadcast, but in Season 3, it was 100 million yen per episode. In addition, 2% of rebroadcasting and related revenue (commercialization) was distributed to 6 people, and the total annual sales were about 100 billion yen, resulting in an additional revenue of 2 billion yen.

Also, as shown in the article below, Netflix was ​​paying Adam Sandler 3.3 billion in 2019 (80% of Sandler’s total annual income of 4.1 billion yen), but it was not just a new guarantee, it was an evaluation of the cumulative 2 billion views of his past library.

◆Reference :Male Actors Who Earn the Most Ranking 2020 Netflix Becomes a Major Source of Income (Japanese)
https://forbesjapan.com/articles/detail/36425

Japan’s top-class TV drama appearance guarantee is about 5 million yen per episode. Since 11 series are the basics, one drama costs 55 million yen. Shooting all night for a month, earning as much as one CM. Even in Japanese flagship dramas, it is rare for additional guarantees to appear at the time of local sales.

◆Reference : Entertainment “Money” (Japanese)
https://bit.ly/2S8GNgX

China’s top actress Fan Bingbing’s guarantee is 50 million yen per episode. Since the Chinese TV series has 40 episodes per drama, the total guarantee is 2 billion yen. Speaking of population ratio, it is up to that point, but in addition, income from local stations can be obtained, so talents will earn in orders of magnitude.

 

2. Changes in media. Let’s review the history of television. 

In Japan, celebrity guarantees are kept low due to the structure of the media.
In 1957, when Kakuei Tanaka was appointed as the Minister of Posts and Telecommunications, he thought that the new media of “television” would be a new voting machine. Therefore, the centralization of the key stations was completed by not allowing new businesses to enter this new media, but by using the local newspaper as the capital source, connecting the key stations and local stations and issuing a collective license.By allowing integrated management without separating broadcasting and content production as in the United States, TV stations were able to hold IP (intellectual property rights) for the produced works and related products. Japan is the only TV station in the world that has gained such absolute power.

In the United States, side jobs have been banned for many years from the perspective of fair trade between television stations and production companies. Therefore, Hollywood had power as a production. Television stations are dedicated to program distribution, Hollywood is producing, and celebrity rights have become a fair structure.

In Japan, TV stations have such huge rights that they have created a hierarchy.
In the structure of TV station → production → entertainment production → celebrity, the celebrity is positioned at the bottom layer.Furthermore, entertainment production has restricted the freedom of transfer with the training cost as a shield. In addition, industry groups have shown a very problematic way of thinking in terms of fair trade, such as the distribution of transfer fees and the burden of training costs. In what world is there a company that charges past training fees to change jobs? I can’t even imagine. As you can see from a survey on training costs, most of the costs are only an investment that can be covered by a single commercial appearance fee income. It’s cannot be investigated and unreported here.

With the mass licensing of television stations and the construction of Tokyo Tower promulgated by Kakuei Tanaka, the public’s interest shifted from movies, radio and theater to television media in the 1960s. New contents such as “Shabontama Holiday” and “Laramie” became very popular.Since television was treated lower than movies and theater, people were fascinated by the freedom of expression they had. All aside, it is well known that the television industry in recent years has become more and more uninteresting due to excessive moral censorship.

It has been 20 years since the creation of television. In the late 1980s, key stations were finally able to produce 100% of their prime-time programming.

Imported programs such as “Charlie’s Angels” (final episode broadcast 1982) and “Mission Impossible” (finished in October 1991), which are so-called foreign dramas, have disappeared from prime time, entering the bubble era of “Double Asano” (boom from the same station drama “Dakishimetai!” Broadcast in 1988).

At this time, a TV industry person in his 40s, who was in his prime, developed the current entertainment production. Many TV dramas were produced, and in 1990, the secondary market such as VHS and DVDs were booming.

However, in recent years, the business practices of TV stations and entertainment productions, which have been practiced in the closed world, have reduced the degree of freedom in organizing TV stations, and the rise of Met Media has led to a decline in viewer ratings.In the heyday of television in the 1980s, entertainment production managers in their 40s couldn’t keep up with the sensibilities of the times due to the age 80-year-old elders as of 2020, 40 years later. It can be said that the irony of history is that television, which was once a new media, has been delayed in switching to new media such as the Internet.

According to a TV genre analysis over the past 40 years, the proportion of news and sports has increased, while the share of drama airing time has decreased. There, the Japanese entertainment world is dying because new works couldn’t be produced due to coronavirus, and internet media or global support for Asia and Hollywood couldn’t be supported.

With a modern and global strategy for performing arts such as JYP in South Korea, I believe this will be a great reference as it has been a great success.
◆Reference : JYP 2.0
https://youtu.be/08257W8sdNs

 

3. What will become of the entertainment world from now?

Many celebrities have left the major entertainment agencies in recent years.
Due to the rise of internet media and the TV recession (no advertisements during coronavirus), the chances of appearing in dramas have dropped sharply, the absurd economic conditions have combined, and celebrities have become independent one after another.

However, even if celebrities become independent from the entertainment production, it is natural that they cannot manage the company by themselves.Businessmen, accounts, attorneys, and attendants must be the president of a company to run it. Many entertainers became YouTubers in 2019, but it wasn’t a sweet world for entertainers without digital knowledge to keep going. In other words, celebrities are too ignorant of the function of the entertainment production company.Only the talk of money share and domineering management constitution is talked about, but as long as the actual entertainment production is also company management, whether it is conscious or not, you should be working with a celebrity marketing and branding strategy.

I hate to brag, but it seems that proper management and transparent flow of funds have been evaluated to a certain extent as the background of the rapid increase in requests to talent agencies like ours. I think that entertainment production should build a fair and equal relationship with celebrities from the former world of “What’s yours is mine, and what’s mine is my own.”

◆Reference: “Too abnormal”, “Change the old constitution” NON’s Management President’s Recommendation [Full text]
https://www.buzzfeed.com/jp/ryosukekamba/non2

People like Atsuhiko Nakata and Akihiro Nishino of Yoshimoto Kogyo Co., Ltd., who can manage themselves and have a certain willingness to invest, have formed a team and succeeded in YouTube and salon business.

But in general, even a reasonably well-known entertainer on TV can’t beat that YouTuber in terms of revenue or traffic.

◆Reference: “The End of the “Entertainer 20th Century Regime”(Soichiro Matsutani) – Y! News (Japanese)
https://news.yahoo.co.jp/byline/soichiromatsutani/20200831-00195864/

What Kyoko Koizumi Hopes for the Future
“The Courageous Step I Took at 15 Years Old Will Connect to My Future” (Japanese)
https://www.huffingtonpost.jp/entry/story_jp_5f45fbbac5b697186e2e666e

 

4. Here is where the paradigm shift occurred. 

Many of the current celebrities (influencers = KOL [Key Opinion Leaders]) do not even belong to an agency. The reason is that they “cannot express themselves and traditional actors only “play what people want them to express”, but now they can’t get into work without showing “themselves” more.

If you can’t digitally express the charm of the celebrity, the client won’t even look at you. That’s why YouTube, TikTok and Instagram have been activated.

A famous actress, who is a talent with a guarantee of 50 million yen in a commercial, sells advertisements on her Instagram for 20 million yen for a set of 5 million yen for one post. It has several major clients like P & G and Volvic. She will earn more than commercials via SNS. By the way, this is an SNS guarantee at the same level as Hikakin.

◆Reference
It is said that even if the client requests a job, it will wait for more than half a year for YouTuber’s like “Hera Hera Sanjushi
https://www.youtube.com/channel/UCI0xPNkgivK-FCcaCYDC8Yg
Tanaka desu” launched related commerce from the frame of selling roasted sweet potatoes, and the products were sold out immediately.
https://tanakadesu.theshop.jp/items/28395166
“Genji” is so popular that he is said to be the “Japanet Takata” of smartphones!
https://www.youtube.com/channel/UCXrp0H7BPBHx2YTYMiiKEAA

In the era centered on TV media, it was a game to be appointed to major clients such as Shiseido and Toyota, but in the era of Internet media, even if the client can not spend 30 million yen per course, by combining ad technology (abbreviated as ad tech) according to traffic results, effective advertising has come to be produced.In other words, companies with a small advertising budget have created a system that can produce advertising effects through digital media, and even celebrities (influencers) who are not famous nationwide can now earn money.

Take funny videos, collect traffic, register with ad networks and have them match with companies. With that alone, even a celebrity with about 300,000 followers can earn 30 to 50 million yen a year. It is a work style reform of celebrities.

A society is no longer established only by large companies, including clients and the media. To put it the other way around, if we can accurately grasp the needs of society and provide them with moisture even on a small scale, it means that a new society is being created.

◆Reference : “What is Ad Technology” that I Don’t Hear of Anymore -Basic Knowledge- (Japanese)
https://www.innovation.co.jp/urumo/adtechnology/

Moreover, China is even worse. There are no advertising agencies anymore. Celebrities contract directly with a major brand. This is because the digital media of the talent can obtain the brand image and actual sales more efficiently.

The era of D2C (Direct To Consumer) for celebrities is beginning in Japan as well. Rather than waiting for advertisers from companies. They earn money by developing their own original products and selling them to followers.

Celebrities who are strong in digital (who can make DX) can have big media by making full use of digital media. Recently, both voice and influence have become greater than those appearing on TV programs. It will be the beginning of the era of celebrity 2.0.

◆Reference : What is the Difference Between “D2C” and “Mail Order” that I don’t hear of anymore? I asked Takuya Noguchi, the representative of Bulk Homme. (Japanese)
https://www.wwdjapan.com/articles/990114

How to Make an Effect with Chinese KOL Marketing (Japanese)
https://www.live-commerce.com/ecommerce-blog/chinese-kol-marketing/#.X3e5i5P7Q1I

The Honest Company, a Household Goods Brand Founded by Jessica Alba in 2011, Now Has a Market Capitalization of $1 Billion (About 100 Billion Yen).(Japanese)
https://forbesjapan.com/articles/detail/7190

 

5. Summary

・ Celebrity Branding
Redefine your characteristics. Have a strategy in your career path by being aware of what you want to do and yourself as a social being. Create a proper official website and decide the brand taste that you should protect as a product.

・Immune Strength (Strong Body and Stable Spirit) = VUCA Power (Japanese)
A healthy body has been an essential condition for celebrity activities since the beginning, but in the future, it will be important to maintain a stable spirit. The CM offer from the client is also a brand investment in the celebrity themselves. With stable immunity, you can overcome scandals and flames.
https://www.kaonavi.jp/dictionary/vuca/

・Compliance
It has become an industry that requires strong morals when it comes to affairs, drugs, tax evasion, and SNS flaming. This is because the development of SNS has made it impossible for entertainment productions to control information to the world. It is necessary to collaborate with a professional who is familiar with digital who can control the image of the celebrity.

・Digital Power(DX – Remote Trust)
Actively disseminate information on SNS and make an effort to get as many followers as possible. Expand the market and fan base by making full use of new media. Taking on new challenges as the media transforms into digital.

・Make a Fan Community
Value your fans and create an internet-based community.
Form a team and build your own media (owned media such as salons).
Create an income structure that does not rely on existing media or entertainment productions.

・Global Orientation
Find a good agent and work not only in Japan but also in Asia, especially China and South Korea. Hollywood will take on the challenge with China as a foothold. No matter how bad you are, you need to be able to speak a little English.

End