XING INC.: Your First Choice for Premium Karaoke Experiences

The Japanese entertainment industry has a long and rich history, evolving from traditional performing arts like Kabuki and Noh to global J-pop superstars and industry trailblazers who have gained worldwide recognition. In your view, what is the core strength of modern Japanese entertainment? What differentiates it from other global entertainment industries?

The main aspect I want to highlight is karaoke. Its greatest strength is its ability to unite people from all walks of life and bring excitement to audiences around the world. Karaoke is not just a part of Japanese entertainment—it has become a global phenomenon, transcending cultures and generations.

For example, our JOYSOUND product features a library of more than 400,000 songs in a single system. Yet, surprisingly, some karaoke enthusiasts still occasionally find it difficult to find titles to sing, not because it's difficult to find songs themselves, but because there are endlessly many songs they want to sing. This motivates us to continuously expand our catalog, ensuring that every customer can enjoy the songs they love.

The Japanese karaoke industry is truly unique on a global scale. In many Western countries, karaoke is typically found in bars or public venues, whereas in Japan, it is deeply ingrained in the culture, with private karaoke rooms—known as "karaoke boxes"—being the standard. These rooms allow groups to sing, relax, and enjoy themselves in a more intimate and personalized setting. With the surge in international tourism to Japan, many visitors are experiencing Japanese-style karaoke for the first time. How would you describe the uniqueness of the Japanese karaoke experience to these newcomers? Additionally, what are some key features of your JOYSOUND machines that you would recommend tourists try when visiting a karaoke box in Japan?

What makes Japanese karaoke unique is its highly precise scoring system. Unlike in other countries, karaoke in Japan is a technology-driven experience, and this gamification element is a big part of its appeal. Many people, especially young audiences, enjoy karaoke not just for the singing itself, but also for the excitement of seeing their performance scored in real-time. It adds an interactive and competitive element that makes the experience even more engaging and fun.

Of course, songs from outside Japan are also available at our system, and since songs such as the globally popular anime songs can also be displayed with romaji, which is the representation of Japanese words using the Latin alphabet.  Foreign tourists who have come to Japan and do not understand Japanese can enjoy the wonderful karaoke of Japan right now.

Karaoke is deeply interwoven with Japan’s cultural identity, and for many tourists, experiencing Japanese-style karaoke is a must-do activity when they visit. How did karaoke culture first emerge in Japan? What factors contributed to its evolution and widespread popularity, making it such an integral part of Japanese entertainment today?

The rise of karaoke culture in Japan is closely tied to technological advancements and hardware development. In the early days, around 30 years ago, karaoke relied on laser discs, which had a very limited capacity—each disc could only store about 28 to 30 songs. This restriction naturally limited karaoke’s appeal to a narrow audience. However, as technology evolved and digitalization took hold, the capacity to store and stream songs expanded dramatically, making karaoke more accessible and appealing to a wider range of people.

In the early stages, karaoke was primarily associated with salarymen who would sing together in bars after work. The lack of song variety meant that its popularity remained somewhat contained within certain social groups. However, with digitalization, the library of available songs grew exponentially, allowing karaoke to reach a much broader audience.

The big karaoke boom happened in the 1990s, and two key factors drove this. The first was the shift to digital technology, which allowed for rapid expansion of song libraries. The second was increased exposure on TV, particularly through shows like The Million Hit, which introduced new artists and songs every month. Before digitalization, it was impossible to keep up with the constant influx of new music, but with the arrival of new technologies, karaoke modernized at the perfect time, fueling its explosion in popularity.

If I had to choose one word that defines karaoke’s success, it would be variety. Before digital karaoke, song choices were extremely limited. I remember when I was a high school student, going to a karaoke bar and flipping through a thick songbook to find a song. Back then, only the most famous songs were available—mostly traditional enka and older pop songs, which didn’t necessarily appeal to younger audiences.

Now, thanks to technology, karaoke has evolved to cater more closely to individual musical tastes and ways of enjoying singing. People can sing exactly what they want, making it a personalized and immersive entertainment experience. This freedom of choice is what ultimately propelled karaoke from a niche activity into a core part of Japanese entertainment culture.

It’s fascinating to see how technology has continuously reshaped the karaoke experience by expanding access to a vast variety of artists and songs. Once again, we are witnessing a new wave of transformation driven by technological advancements, and your company has been at the forefront of that evolution. You’ve tested communication systems that allow one karaoke room to connect with another, creating an entirely new social experience. With the development of technologies such as fiber optics and lower-latency connections, how do you see these advancements shaping the future of karaoke? What do you believe will be the next major innovation that digital technologies will enable in the karaoke industry?

You already mentioned the new experience that connects multiple locations, allowing people to perform live together with no video lag. That’s definitely a major step forward for karaoke systems. The ability to sing with friends in different locations creates a completely new and enhanced experience for users. For example, the ability to connect and enjoy singing and having fun together across long distances adds an exciting new dynamic to karaoke.

The expansion of fiber optics and the general availability of high-speed internet will further increase karaoke’s global appeal, making it more accessible even in different countries. As technology continues to advance, we expect karaoke to evolve beyond physical locations, allowing people to share the experience in real-time, regardless of where they are.

Karaoke boxes already offer good soundproofing, which enhances the overall experience by allowing users to sing freely without distractions. Beyond that, additional services—such as fortune telling or other unique entertainment options—could become new attractions that encourage more people to visit karaoke venues.

As people become more globally connected, the ability to perform in multiple languages and access a diverse range of songs from different countries will further improve the karaoke experience. Expanding language options and incorporating international content will make karaoke even more inclusive and appealing to a broader audience worldwide.

One of the biggest challenges facing Japanese businesses is the aging and declining population. It’s estimated that in just over a decade, more than one-third of Japan’s population will be over the age of 65. This shift is leading not only to a shrinking domestic market but also to increasing difficulty in hiring staff across industries. For your business in particular, how is this demographic change affecting operations? What are some of the key challenges it presents, and how are you working to overcome them?

A shrinking domestic market obviously presents more challenges than opportunities. With fewer people going out to sing karaoke, the future could be difficult. However, we see potential in exploring other fields to expand the scope of our business.

For example, singing is generally said to have health benefits, particularly for older demographics.　There may be opportunities to connect karaoke with health-related products or services, offering a new value proposition for Japan’s aging population.

Additionally, the growing number of inbound tourists presents another significant opportunity. We aim to target these visitors by introducing more international content and ensuring that people from various countries can enjoy a familiar and accessible karaoke experience while in Japan. By adapting to new market segments, we can continue to grow despite the challenges posed by Japan’s demographic shift.

I’d like to better understand how your company has evolved over time. You became famous for JOYSOUND, which provides equipment and software for karaoke, but you have also expanded into the music and video business. Your subsidiaries, TEICHIKU ENTERTAINMENT, INC. (TEICHIKU), which focuses on software, and XING MUSIC ENTERTAINMENT INC (XME), which specializes in copyright exploration and licensing, add further depth to your operations. Could you share some insights on the evolution of your company? How do you create synergies between your different businesses, from providing karaoke equipment and operating venues to managing a music label and licensing business?

In 1992, we launched the industry's first online karaoke system, ‘JOYSOUND’, and this was the beginning of our company, which revolutionized the way people enjoyed karaoke. At the time, there were more than 10 karaoke equipment manufacturers, each offering their own services, but it was difficult for the industry as a whole to expand efficiently and increase profits, as content had to be produced to suit each manufacturer's system. Since then, there have been a series of mergers and takeovers, and each time, the companies have sought to differentiate themselves from their competitors while streamlining their operations, and the integration of each company's original functions and ideas has become one of the reasons why the market is able to offer the wide variety of karaoke experiences that we have today.

Another milestone was the provision of a wide variety of ringtone services on NTT DoCoMo's mobile phone platform, as a natural extension of our expertise in digital sound technology.

Then, in 2010, we merged with BMB, which operated the online karaoke business under the “UGA” brand, strengthening our position in the market for karaoke stores. In 2015, we acquired TEICHIKU, allowing us to expand beyond karaoke equipment and sound systems into the broader music industry.

To answer your question about synergies, our acquisition of TEICHIKU was a strategic move because it is one of the oldest record companies in Japan, celebrating its 90th anniversary. The main value of this acquisition lies in copyright ownership. Since TEICHIKU holds the rights to many songs, we could eliminate costly licensing fees and, in some cases, gain usage rights for songs that weren’t previously available for karaoke. This resulted in lower costs and an expanded library, giving us a stronger competitive advantage.

As for XME, it functions as a publishing company. One key area where we’ve leveraged it is through Vocaloid, a popular software program that allows regular people to write songs and create digital singing voices. Unlike mainstream commercial music, Vocaloid content is not all controlled by JASRAC (the Japanese Society for Rights of Authors, Composers, and Publishers), so by securing direct contracts with creators, we have been able to integrate their music into our karaoke systems. This not only diversifies our content offering but also taps into a growing community of independent music creators, making our platform even more attractive to users.

You mentioned additional health services, such as incorporating karaoke and singing into nursing home. Japan is not the only country facing an aging population, so this approach could have global relevance. What kind of effect does karaoke have on the elderly?

It is said that there have been many studies into the positive effects of music on health for a long time, and that there are positive effects. Singing, for example, involves physical movement and controlled breathing, which have health benefits. Additionally, cognitive functions are stimulated through memorizing lyrics and reading subtitles on the screen. The sounds themselves also contribute to creating a positive atmosphere and a sense of happiness.

In senior care rehabilitation, we focus particularly on these cognitive benefits. Another compelling aspect is the power of nostalgia—singing a familiar melody from one’s youth can evoke memories and reinforce a sense of identity, fostering emotional well-being.

It is said that singing stimulates the muscles of the throat and helps to prevent the dysphagia that older people often face.

Beyond healthcare, you’ve expanded into gaming with a multi-platform strategy, developing mobile apps that turn smartphones into karaoke machines. You’ve also ventured into console gaming through a collaboration with Nintendo, licensing some of your games for the Wii platform. What are your expectations for this segment of your business?

This has become a strong segment of our business, and we already have significant exposure across most major gaming consoles, not just Nintendo. Furthermore, last year we enhanced our services for PCs, smartphones and tablets so that karaoke could be enjoyed on a variety of devices, and we were able to respond to detailed needs. So far, this segment is performing well, and we believe it will continue to grow.

We’re also closely watching how technology is transforming the automotive industry, particularly with the rise of driverless taxis. In the near future, we might even see people enjoying karaoke in autonomous vehicles.

One interesting aspect of the gaming business and platform diversification is their inherently global reach. For instance, Japan accounts for roughly a quarter of all PlayStation and Wii U sales, highlighting the vast international market. Can you share your perspective on the global potential of your gaming division and how you anticipate international revenue growth in the coming years?

Expanding internationally presents a strong opportunity, particularly if we can secure licensing agreements that allow people access to their preferred songs. Licensing is crucial, not only for user satisfaction but also to ensure full legal compliance.

Beyond licensing, another key factor is the cultural perception of karaoke. Even if we acquire the rights to popular local songs, there needs to be an existing culture that embraces karaoke as a form of entertainment. As you mentioned, in Europe, karaoke is often associated with bars, whereas in Japan, it is deeply ingrained in everyday life. Our challenge is finding ways to foster that same level of cultural acceptance in other markets.

These remain our two biggest hurdles—securing licensing and shifting cultural perceptions—and while we recognize the opportunity, we are still evaluating the best approach and timeline for addressing them.

How are you addressing these licensing barriers? Are you exploring partnerships with music labels or copyright holders to expand your catalog?

In Japan, JASRAC manages international song rights as well, allowing us to obtain licenses for a comprehensive song library within the country. However, securing licenses outside Japan is far more complex.

Targeting inbound tourists is a key focus for us, and having access to JASRAC's licensing simplifies the process of offering a diverse, legally compliant catalog in Japan. I’d love to see more foreign visitors experience karaoke here. While Japan offers many entertainment options, including traditional cultural experiences, the language barrier can be a challenge. Karaoke, in many ways, serves as a bridge, making it easier for tourists to engage with Japanese culture in a fun and interactive way.

Do you have specific strategies to further engage tourists? Do you see opportunities to integrate this effort with your gaming platform?

Definitely, but the copyright and licensing challenges we discussed remain a significant hurdle in delivering the full experience. Naturally, we want more international visitors to engage with our platform and leave Japan with great memories of karaoke. If we can successfully navigate these licensing issues, there’s potential for them to bring that enthusiasm back home and incorporate karaoke into their everyday lives.

Looking ahead, are there other areas you’d like to diversify into? Could you share insights into your midterm strategy?

Our midterm strategy focuses on expanding opportunities within the karaoke business to enhance customer experience and engagement while increasing visit frequency to our karaoke boxes. We also aim to attract new customers—particularly those who have never tried karaoke or do so infrequently—by offering a more diverse range of experiences.

These days, visiting a karaoke box isn’t just about singing for hours; it has evolved into a more comprehensive entertainment experience. For instance, the new systems and online streaming capabilities we discussed earlier can help draw in new customers and build loyalty among existing ones. Additionally, there is potential in streaming live sports events or movies.

A great example of this was during the last World Cup when we streamed 64 matches through JOYSOUND, attracting a strong customer turnout. While people could watch at home with friends, that requires cleaning, preparing food, and hosting. In contrast, a karaoke box offers a hassle-free, all-inclusive experience—groups can cheer as loudly as they like, order food and drinks, and simply enjoy the event without any cleanup.

What’s your favorite song to sing?

I like Southern All Stars, a Japanese rock band.

Please imagine that we will come back to interview you again in 2033, which will be a big anniversary for the company. What ambitions or objectives would you like to have achieved by then?

The year 2033 will mark the 40th anniversary of both our company and our online karaoke system. By then, we hope even more people around the world will be enjoying karaoke as a form of entertainment, and that JOYSOUND will have fans across the globe. We’d love to welcome you for an interview at a JOYSOUND karaoke room in your country in 2033.

For more information, please visit their website at: https://xing.co.jp/eng/