In a country renowned for bizarre obsessions, there’s one that boggles most minds. No, it’s not Japan’s dedication to vending machines that dispense everything from canned coffee to panties or bizarre beauty products or strange cafes, but the country’s love for CDs. Japan remains one of the few major music markets where physical formats still account for the majority of revenue, even as streaming continues to grow.

While CDs have largely disappeared in many countries, they continue to hold a place in Japan. What explains their continued presence in a market that has otherwise embraced digital formats?

Rise and fall (and rise) of Tower Records

A short walk from Shibuya Station, the Tower Records store stands prominently in 1-chome, Shibuya, marked by its red and yellow exterior.

In 2002, Tower Records Japan preemptively separated from the international Tower Records chain, which saved the store from an early grave because in 2006 the international Tower Records Company filed for liquidation.

While many CD retailers were closing in 2012, Tower Records Shibuya expanded instead, adding a bookstore, live space and café within its 5,000-square-meter site. The move reinforced its position as a hub for physical music culture.

Today, the Tower Records Shibuya store remains one of the largest music retail spaces in the world, continuing to draw both local fans and international visitors.

How Japan’s Music Industry Supports Physical Sales

One factor behind the continued strength of CDs in Japan is the structure of the music industry. While streaming services are now widely available, physical releases remain central to how the industry markets and monetizes music.

Physical formats still account for a significant share of Japan’s music revenue, even as streaming continues to grow. Record labels and agencies often prioritize physical sales through release strategies that include multiple editions, exclusive content and limited-run bonuses.

In many cases, CDs connect to broader fan experiences, with purchases linked to event access, voting systems or collectible items

These incentives encourage repeated purchases, positioning CDs as part of a wider fan ecosystem rather than just a music format.

Pricing structures and retail partnerships also continue to support physical formats, allowing CDs to maintain a strong presence alongside digital platforms.

The Japanese Fan Experience

A strong culture of collecting and fan participation shapes Japan’s music market. Fans often treat physical releases as objects of value

Labels frequently package albums with elaborate artwork, lyric booklets and limited-edition designs, reinforcing their appeal as tangible items. For many listeners, the experience of owning and opening a CD remains part of the appeal.

In many cases, CDs are tied to broader fan experiences, with purchases linked to event access, voting systems or collectible items—particularly within the idol industry, where physical releases remain closely tied to fan participation, as reflected in recent chart trends reported by Billboard Japan.

The Future of CDs in Japan

While streaming continues to expand in Japan, CDs remain part of the country’s music ecosystem, particularly among dedicated fan communities. Physical releases still play a role in how music is marketed, collected and supported.

At the same time, listening habits are gradually shifting. Vinyl has seen renewed interest in recent years, reflecting a broader appeal for physical formats as lifestyle and collectible items rather than everyday listening tools.

Rather than disappearing entirely, CDs are likely to continue evolving alongside digital platforms, maintaining a distinct role within Japan’s music culture.

For more on Japan’s music scene and fan-driven trends, see our guide to the most popular J-pop artists to watch in 2026.

This article was originally published in March 2017 and updated in March 2026 for accuracy.