Tokyo's Most Affectionate - Chapter 99

The Potential of the Music Industry

“Before deciding on equity, let’s clarify things first.”

Discussing the important matters, Itsuragi took a sip of barley tea, cleared her throat, and then presided over the meeting.

“For a new company, profitability is crucial. For our new company, the first step is to determine our products.”

“Kurosawa, according to your needs, we need basic equipment, including a piano, a fully equipped recording studio, and cameras.”

“Yes.” Kurosawa nodded. These were the things he needed.

“Considering your plan mentioned earlier to boost publicity with piano videos, the equipment can’t be lacking. We’re considering a Steinway piano. It doesn’t have to be the top-tier, but it has to be first-class. The cost is 21 million yen.”

“We don’t necessarily need such an expensive piano…”

Kurosawa was a bit surprised. This entrepreneurial venture seemed more complicated than he had imagined.

Originally, he thought having any piano and renting a recording studio for sound and video recording would be sufficient.

A piano for over 20 million yen? How are we going to manage that?

“No, that won’t work.” Itsuragi shook her head.

“To do a job well, one must first sharpen one’s tools. Having a good piano is crucial. If we’re going to do it, we should do it right.”

At this moment, Ninomiya, sitting beside her, also spoke up.

“But where will we get so much money?”

Kurosawa frowned. If he were to act on this idea, the amount of money needed for various equipment would be quite substantial.

“Ding-ding! The rich lady is right here.”

Seeing his distress, Itsuragi immediately turned to Ninomiya, spreading her hands like she was showcasing a flower.

“Is Ninomiya-sensei really so wealthy?” Kurosawa was momentarily stunned and then looked dumbfounded.

Although he had learned from Itsuragi that Ninomiya was a well-off woman, he had no concept of how wealthy she really was.

“Being a teacher is not her main source of income. Investments are her strong suit. Chizuru’s initial investment is 100 million yen, and additional funding will be determined based on the situation.” Itsuragi nodded, stating it like a boast.

“So much?” Kurosawa was shocked to hear this amount.

One hundred million yen… his six million in savings was just a drop in the bucket?

This was not a small sum.

“In any case, you don’t need to worry about money. Your contribution will be in terms of technical expertise in equity. You are the ace of this venture.”

Seeing his surprised expression, Ninomiya felt some hidden joy and reassured him.

“Alright.” Kurosawa nodded.

“I investigated the market last night. A top-tier Steinway grand piano costs 21 million, a fully equipped recording studio costs 15 million, professional and complete photography equipment costs 10 million, and renting office space for half a year is 30 million. The remaining money will be used for operation and promotion expenses.”

Following this, Itsuragi continued speaking.

“This is a huge gamble… with such high costs, what if we lose it? How long will it take to break even?”

Kurosawa looked somewhat astonished at Ninomiya. Originally, his entrepreneurial goal was quite simple.

Within two years, he wanted to increase Itsuragi’s annual income to 20 million yen, while earning some money himself.

But with this approach, starting with an investment of nearly 100 million yen, how long would it take to break even?

“If we lose it, and you feel it’s not suitable, just focus on your studies without any burden.”

Ninomiya looked at him calmly.

“Kurosawa, do you know how much income Fujiwara Rika makes in a year?”

Seeing Kurosawa’s reaction, Itsuragi asked immediately.

“I don’t know that.” Kurosawa wasn’t familiar with the income of celebrities.

“Her personal annual income is 1.3 billion.”

“That much?” Kurosawa was somewhat surprised. 

He used to think there wasn’t much money as a singer and celebrity in Neon, but now it seemed he was too one-sided.

“The reason for her income is mainly from her sales. Most of it is shared with the company. Do you know how much the world’s most popular singers make in a year?”

Seeing him taken aback, Itsuragi continued.

“How much?”

Kurosawa was intrigued; this was an area he hadn’t explored much before, and he knew little about it.

“In terms of yen, over 20 billion.” 

Itsuragi raised two fingers, waving her hand.

“That crazy?” Kurosawa was somewhat astonished.

“The pinnacle of the music industry is quite formidable. Because you have to be a masked singer, we won’t aim for the absolute top for now, just the upper tier. Assuming you become a sensation, you can break even within two years, and thereafter, you’ll start seeing a continuous stream of income. If you become a huge success, even gaining international fame, the returns will be even more substantial.”

“How much can the highest-earning pianist make in a year?” Hearing this, Kurosawa suddenly asked.

“I looked into it last night. It’s probably several billion yen a year. Pianists mainly rely on touring performances and high-end endorsements, but it’s quite challenging.” 

“Listening to you say that, I feel relieved.” Learning about all this, Kurosawa suddenly smiled.

To be honest, when he first heard that Ninomiya was directly investing a hundred million yen, he felt a bit overwhelmed.

After all, he originally thought of starting small and not going all out from the beginning.

However, realizing the upper limit of the music industry, he felt reassured.

According to the system, the entry-level skill was equivalent to the level that an ordinary person could achieve after a lifetime of effort.

His entry-level singing ability was stronger than that of the majority of singers. With good arrangements and lyrics, he could become popular.

If he completed the mission this afternoon, upgrading his piano skill to piano mastery, it would be terrifying.

The height achievable with a lifetime of effort for a genius… this meant that his piano skills would be world-class, making it easy for the company to recoup its investment.

“As long as we do well, the company’s annual turnover of one hundred million, or even hundreds of millions, is possible.”

Seeing him smile, Itsuragi felt much more relieved and a continuous flow of courage and hope emerged from within.

There was no future as an employee; one must be a boss to truly make big money.

“It’s time to talk about equity.”

Seeing her getting more and more excited, Ninomiya spoke up.

“After the discussion, the equity split is 4-3-3, with you getting 40%. And because you are an artist, we’ll also have a separate 50-50 split for the contracts. For example, if you earn a hundred million, you take fifty million first, and the remaining fifty million is calculated based on various operating expenses and distributed according to the equity split.”

“40%…”

Kurosawa naturally understood these equity-related matters and pondered.

“Do you find it too little?” Ninomiya asked when she saw him contemplating.

This split was something she thought up last night, and in all aspects, it was quite favorable.

“No, I was just thinking that to surpass an annual income of 20 million for you, we would need a net profit of at least 80 million.” Kurosawa shook his head.

According to this calculation, although his equity was 40%, the actual share was much higher than this baseline.

He would first take a contract share and then a dividend. Theoretically, he could receive the most money, possibly even exceeding the total income of the others. If he still found it too little, it would be too greedy.

“Our goal is not a net profit of 80 million, but more.”

Noticing him pondering, Itsuragi immediately spoke.

“That’s right.”

“Kurosawa, the success or failure of this startup relies on your potential. Whether this company rises or falls, it’s all up to you.”

Ninomiya remained in her seat, maintaining her calm demeanor.

However, her eyes were filled with expectation as she looked at Kurosawa.

Now knowing the income of pianists, Kurosawa felt much more confident and at ease.

“Rest assured, leave it to me.”