America: My Time

Chapter 38 Cooperation
Chapter Thirty-Eight Cooperation

Songtao Ward is closest to Phoenix Comics, so John and Naoko moved directly there from their hotel, handing her the keys to both properties. Although he didn't want to interact much with that old fox, Akio Morita, he felt he had to show some appreciation now that Naoko's management and record contracts had been transferred, especially since John now owned property in Japan and needed to reciprocate! So, the next day, John and Naoko invited Akio Morita and Riko back for a visit!
When Akio Morita brought up records again, John smiled calmly and said, "Mr. Morita, this is my first time in Japan, and I didn't have much time to explore. These past few days, with Naoko's guidance, I've taken a short tour of the area and discovered that Japanese people really enjoy karaoke. I think it's a good business opportunity, and I have a great idea. I wonder if you'd like to hear it? Perhaps we can collaborate!"

"Oh, I know about this, but the company doesn't make it. I'd like to hear your opinion!" Akio Morita was very interested in John's suggestion because he was not facing an ordinary person, but a discerning elite!

"Why not do it? From what I understand, most of these things are made in small factories, and the quality varies. The videotapes and backing records they use are often copied. If we could make them, we could provide specialized karaoke backing videotapes and other equipment. With this equipment, you could open a dedicated karaoke shop, and I think it would be very profitable. The shop could also offer food and drinks to customers, so there should be a good profit!"

Akio Morita may be an old man, but he has a deep understanding of technology and a keen sense of the market. John's suggestion immediately appealed to him. Of course, what he cared about wasn't the profit from opening the store, but rather the standards.

"It's a pity that this thing has a market in Japan, but not in Europe and America. Otherwise, Dream World could have designed and completed it on its own. There are no technical difficulties in this thing, and the design is not difficult. The problem is the subsequent use and ownership of the copyright, which requires the establishment of a special company to be responsible. In addition, the weekly, monthly and yearly usage of songs is also very valuable for statistics!"

If what Akio Morita heard from John before was a standard, what he hears now is an organization, a real management organization, a civilian management organization that uses a company to do this. This is a monopoly, and monopolies are the most profitable business, especially in the karaoke segment where there are so many ways to make money!

Karaoke has been around in Japan for over a decade, and everyone only thought of opening stores that specialize in it. However, John's suggestion to open a copyright collection and statistics company impressed Akio Morita with his ingenuity and thinking!
Making karaoke machines isn't very profitable in terms of hardware; many Japanese manufacturers already make them, and if Sony enters the market, it will be a formidable force, unmatched by other manufacturers! John's suggestion, from a business perspective, only promises small profits, nothing significant. However, his later suggestion of a copyright collection and usage statistics company is truly impressive. John definitely wants to get involved in this company, which is why he brought it up today.

John wasn't worried that Sony or Akio Morita would suppress the matter or even kick him out. Bringing it up at this time was itself a test—a test of Morita and Sony. If successful, he could get a share of the profits; if he failed, there would be no loss—it was just a money-making idea, nothing serious. It was worthwhile to use such a small gain to see Morita and Sony for who they truly were!
There was another, even more important reason for choosing Sony: copyright. As one of Japan's largest record companies, Sony Music's copyrights are its greatest asset. The suggestion made to Akio Morita was to leverage Sony's copyright holdings and their technology, although technology was a minor issue!

Akio Morita nodded and said, "Good idea, it's definitely worth doing. Since it's a collaboration, I wonder how much Sony can gain from it?"

John smiled calmly and said, "This plan is based on the Japanese market. I'm just offering my opinion and participating a little. I don't need a large share, ten percent will suffice!"

John's request of only 10% surprised Akio Morita. This was different from the Americans he knew before, who were known for their outrageous demands!

“This is unexpected, John. I want to know why you only asked for ten percent. It’s a bit low!”

"Is it too little? I don't think so. I'm just proposing a plan, and 10% is more than enough. Besides, capturing this market requires a huge investment. Sony needs to build at least one professional karaoke bar and attract more competitors, which will also come at a cost. Taking 10% is already quite good; anything more would be greedy. Sony is the one putting in the effort, not me!" Despite this, not everyone has John's rationality, nor can everyone control their greed. Akio Morita had no objection to the 10% request; it was far below the plan's value. If John wanted to do it himself, he could easily do it; there was no need for Sony!

This is also a way of returning the favor and repaying the debt owed to Naoko. No matter how much Sony paid for this, this reward is enough to repay the debt. Just from this one action, we can see that John is not a greedy person!
First-class manufacturers set standards, second-class manufacturers build brands. Many people are still stuck on building brands and promoting their karaoke machines one by one. Sony, on the other hand, has already bypassed products and stores and directly set standards and established a karaoke association.

After the company was established, Sony became the largest financial provider and the largest shareholder. Regardless of the company's profits, Sony and its affiliates would undoubtedly only use their own manufactured machines when operating karaoke bars. This was a profitable investment and an opportunity to promote their brand. With the advancement of copyright regulations, Sony would inevitably become the undisputed leader in the industry. They produced the equipment, controlled the competition, and acted as the judges—how could other karaoke companies compete under such circumstances?

“No problem, I’ll have someone deliver the shares!” Akio Morita accepted John’s reward and nodded slightly. If this was done well, it would not only make money for Sony, but also provide intangible brand promotion and expand Sony’s influence in Japan. He had no reason to refuse!

A win-win situation. Karaoke's suggestion was a win-win for both John and Akio Morita; they both got what they wanted, and it deepened their cooperation, at least establishing mutual trust, which was crucial for both of them. If they couldn't trust each other, the so-called cooperation would only remain superficial, and it's hard to say how long it could last.

How much money they can make from karaoke isn't important. What John thinks is that Legendary Records can use this opportunity to enter the Japanese record market and gain recognition from the Japanese record industry. This will save Legendary Records a lot of detours and save them more valuable time. For Legendary Records, time and fame are the most important things.

This collaboration has been highly beneficial for both John and Akio Morita, providing them with another opportunity to get to know each other and playing an indispensable role in advancing deeper cooperation! Only when a relationship of mutual trust is established can deeper cooperation be guaranteed!
Previously, it seemed that everyone made promises, but they were only lip service, and it was hard to say whether they would actually follow through. Now, both of them are willing to push this relationship to continue to develop.

After a moment, Akio Morita asked, "John, when do you plan to acquire TV Tokyo? Do you have a timetable in mind? I need to know more about it!"

John thought for a moment and said, "By the end of the year, everyone will have time to prepare and weigh the pros and cons!"

Thinking it over? This is the time John is giving Akio Morita and the shareholders of TV Tokyo. They have more than six months to consider everything, weigh the pros and cons, and at least estimate whether selling TV Tokyo will have a huge impact on Japan and whether it will harm their own interests!
Only after the Japanese have thought things through can they make the right judgment and reduce the resistance to the acquisition. A large acquisition like a television station cannot be made without the approval of the Japanese government. Giving them enough time to consider and weigh the pros and cons is beneficial to both sides!

John didn't want to face resistance from all sides in Japan after acquiring TV Tokyo, causing his acquisition plan to fail and all his efforts to be in vain. Allowing sufficient time for consideration and preparation was beneficial for both sides. Only by clearly weighing the pros and cons could a long-term plan be made!

Upon hearing this, Akio Morita nodded in agreement. More than six months was enough time for everyone to consider whether to accept the acquisition and to mitigate the impact of the acquisition. John would also not need to waste too much of his energy on the acquisition. It was a timeframe that everyone could accept!
(End of this chapter)