Sunk Costs and Karaoke Videos
—Okay, I like this idea of taking karaoke out of the nighttime snack bar and putting it into "boxes" all around the country. Like a franchise.
—Right. I think it's going to be big.
—One little question though: what are we going to do about the visuals?
—Yeah.
—I mean, the rooms are going to be all colorful and fancy and loud, and then you'll look at the screen...
—The screen and...
—Yeah, and it will just be text on black.
—No, no. We are going to make videos for the songs.
—Videos?
—Videos.
—For each song? There must be like... 5,000 songs out there.
—No, no. Not for each song. Like we will make, I dunno, 100 videos. Maybe 200 over time, and they will be attached to the songs in a pattern so that you never really see repeats.
—But they won't fit with the theme of the individual songs.
—Who cares?
—I dunno. If it's a song about the sorrow of losing one's love while fishing, you can't have some guy playing guitar in Washington Square Park.
—Washington Square Park! I love it.
—No, you can't do Washington Square Park.
—Not for that one. But we could probably use that for a lot of videos. No, no. We will have "sad" videos and "happy" videos.
—But we are going to have to replace these videos all the time. Like very few years or so when the styles get outmoded.
—Nah. No one will care.
—What do you mean no one will care? Stuff from five years ago looks ugly and old.
—Look. We live in the richest and therefore best period in Japanese history. No matter what happens, these videos are going to look great forever. And if they look terrible in a few years, we will be so rich that we'll just make new videos.
—I just can't imagine someone in 2007 singing some 2006 song with a video from 1989 in the background.
—I can. 1989 will look great by then!
—I'm sorry?
—That's 18 years from now. Think about 18 years before now. 1971. That's a classic year. I would happily sing songs to videos from 1971.
—I am not sure you could fit an Onyanko Club song to a video from 1971.
—Ha ha. You crack me up.
—Seriously.
—No, seriously, these videos...
—They'll be expensive. There is already a significant capital outlay for the real estate and construction...
—No they won't be expensive. They're a sunk cost. We make 200 of these things, shoot a bunch of random footage in New York and San Francisco on BetaCam, and we can use these forever.
—I can't imagine you'll be right, but...
—But what? We're the industry, and if we are still saying in 2007 that videos from 1989 are what you should be singing to, we will be right! TV won't even be 2-D anymore by then. I don't see why you are worrying so much. There probably won't even be a Washington Square Park. People will want to remember what it looks like.







