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It's always been the same show, it's just that its popularity throughout the nation has been on a steady decline. I've always seen it as prestigious. It's certainly the most prestigious event that artists are invited to, at least it's considered so among those in the industry. It's right there with the prestige of being nominated at the Grand Record Taishou--they go a little bit hand-in-hand. Not necessarily that either one affects the other, but that it's a bit of a big deal to be invited at the Kouhaku and nominated at the Taishou.
If that makes any sense. Haha. Sorry if I rambled. XD
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