NTT DoCoMo Buys Into Tower Records Japan

In a deal that puts a new spin on mobile music promotion in the Japanese market, DoCoMo announced a partnership with Tower Records Japan opting to buy 42 percent of the music retailer for 12.8 billion yen ($109 million). Scheduled to go through by late November, the deal will make DoCoMo Tower’s single largest shareholder. The music retailer operates 78 Tower Records stores and 31 Wave music outlets. Tower’s motto in Japan is "The Best Place to Find Music" but will DoCoMo find it the best place to create musical revenue?

Taking the stage at a Tokyo press conference November 8th, Takeshi Natsuno, senior vice president and managing director of NTT DoCoMo’s multimedia services department, and Hiroyuki Fushitani, president and chief executive officer of Tower Records Japan, gave the press few details on their upcoming fusion of telecom and music marketing. Not surprisingly, projects center around DoCoMo’s Osaifu Ketai (mobile wallet) platform for 3G handsets. Users will be able to wave their mobile phones over displays at Tower stores to download coupons or purchase CDs, picking them up at the sales counter on their way out. From this winter phones equipped with DoCoMo’s ToruCa (toru, capture; Ca, card) information-capture service will include Tower reader/writer units to download news on favorite artists, special offers from music labels, ticket reservations, and other music-related information. Tower’s popular redeemable purchase point system will also migrate onto mobile phones.