JILUKA founds their own label, "FAIZH MUSIC LLC"

JILUKA has announced their new independent label, “FAIZH MUSIC LLC”, which was founded back in March 2024, and they are now signed under that label as they shift to worldwide expansion.

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this is interesting. i wish them luck and i really hope they succeed. their music is a bit one note for me but they do have some good bangers

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I wonder why they changed labels? Maybe they realized if they DIY it they can get more than having a whole label involved ? They learned from Bebiki :smiley:

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I don’t think they actually changed label, they just turned their band into a company/label for their activity outside of Japan.

Bands can be contracted to several labels.

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Case in point MIYAVI who is seemingly signed to six labels.

ah a better option than Sena having an OF (which I was sub for our Queen)

Tbh that doesn’t make much sense, having a company registered in Japan has absolutely no meaning outside of Japan. Company registration is for local tax purposes, mostly and they are dealing with promoters like Fake Star who have entities overseas anyway. I don’t know the reason but from a legal and logic point of view this won’t do a thing for or against them going overseas.

I dont really see the point but ok.

It absolutely makes sense from a business perspective. In order for bands to release music overseas and make money from overseas sources, their labels are the ones that handle the administrative stuff and distribution in order to process the sales and profits.

This is often complicated and annoying because contracts and such have to be negotiated. Nobody does this unless they REALLY think they have a chance at succeeding because it’s an onerous process, and it’s possible their previous label simply didn’t want to take the risk.

Forming their own label gives them the complete freedom to expand and negotiate with anyone to handle distribution of their music and merch for sale overseas, since they clearly have a strong ambition to do so.

Streaming services generate VERY little in royalties for the artists, but they’re a super easy way to get exposure to a very wide audience. Touring and physical sales is where the money really comes in, but they’re subject to bajillions of regulations and extra work to make them happen over larger regions. Forming their own business entity through which they can directly initiate business relationships to make that happen is the first step towards Jiluka expanding their global reach.

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This is inaccurate. You can release music through distributors like Tunecore and Distrokid you do not need a company and the release is obviously worldwide and the monthly earnings are consolidated.

Having a company makes you pay more taxes locally and does virtually nothing for your overseas presence esp. when you are relying on other people’s companies such as Fake Star and Kinetic Vibe to book and financially support all of your appearances.

Also touring abroad for a band of this size does not bring profit and when you go through a promoter like they do, the promoter foots the bill and as a result also takes most if not all of the profit. The band earns close to nothing. I don’t picture them being able to negociate their contracts in English and then paying for and booking their overseas appearances themselves nor can they sponsor their own visas.

I think we should take a look at what kind of company they build there
Those graphics might help

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They are protecting their private property like that as I suspect

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Despite the odd nugget of sense above I really cant help shake the vibe that most people here talking about “band business” have never been in a band… At least one that has had a relative amount of commercial success. :laughing:

If they’re looking to move away from using promoters and possibly hiring their own English-speaking staff, it does make sense. There are loads of bilingual foreigners in Japan these days that could do the type of documentation, contracting, and visa legwork that overseas expansion would require; most artists simply don’t bother doing the work themselves because it can, indeed, be tedious.

Releasing music online gives you much smaller cuts of profits. A physical CD sale goes completely into the label’s pocket, making it much more appealing than a digital sale, which they might only get a cut of.

Also, the purpose of an LLC is indeed to mitigate financial risk. Normally, a band’s costs and expenses are covered in the contract with their label. But if their label is only providing very basic publishing support and almost no funding, the money for everything is coming directly out of the profits and the members’ pockets.

If a band isn’t successful and doesn’t make profits, the members are funding the band’s existence and can rack up debt quickly. So we have lots of stories of kusomen up and disappearing because of debt.

You could think of an LLC as a sort of “dummy” that protects individual people from getting saddled with insane amounts of debt if some business decisions go poorly.

If Jiluka spends money on something while acting as the LLC, the actual members can only be held responsible for a certain amount of debt, so their personal lives are kept safe from worrying about going bankrupt if a larger investment goes wrong and they somehow end up deeper in the hole.

It’s a smart business move if you anticipate losses, which is exactly what an initial overseas expansion will incur.

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