It’s the End of an Era for Studio Ghibli

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Since 1985, Studio Ghibli has created some of the most beloved and highly-rated animated films ever made. Now, the studio is saying goodbye to a long-time partner who provided crucial support during the making of many Ghibli classics, including films like Spirited Away, Princess Mononoke, and The Wind Rises.

I was really surprised to hear that TMS Entertainment is taking over Telecom Animation Film! Basically, Telecom’s assets and responsibilities will all be handled by TMS once the merger goes through. It’s a big deal, and honestly, I’m a little worried about Studio Ghibli. They relied on Telecom a lot for beautiful background art and key animation, so this could definitely impact their future projects.

Iconic Anime Studio Bids Farewell After More Than 50 Years

The recent merger likely stems from Telecom Animation Film’s financial difficulties last year. The studio finished its fiscal year in March 2025 with considerable debt and a net loss of 346 million yen (about US$2.3 million). This contrasts sharply with its parent company, TMS Entertainment, which was able to distribute over 2.091 billion yen (approximately US$16 million) in dividends, demonstrating its strong financial health.

Founded in 1975, Telecom Animation Film contributed to the production of many animated projects, including the popular Detective Conan series and its movies. They were particularly involved in Detective Conan: One-Eyed Flashback, released in 2025, which became Japan’s second-highest-grossing anime film that year. As of January 2026, the combined earnings of Telecom Animation Film’s projects totaled over 15 billion yen – about US$97.7 million.

Studio Ghibli’s Princess Mononoke Would Have Looked Very Different Without Telecom Animation Film

Telecom Animation Film assisted with many Studio Ghibli movies, but they played a particularly key role in making Hayao Miyazaki’s famous film, Princess Mononoke (1997). Ghibli traditionally used hand-drawn animation, but Telecom suggested adding computer graphics and digital painting. As a result, the final version of Mononoke includes about 15 minutes of computer-generated visuals.

As a huge fan of Mononoke, I’ve always been amazed by how seamlessly they integrated computer graphics! There are some really iconic scenes, like the opening with Prince Ashitaka and that incredible, wild spirit – the ‘tatari-gami’. Everything about that creature, even the dark, twisting snakes appearing on Ashitaka’s arm, was created with CG. But what’s so impressive is that Ghibli really wanted to make CG that didn’t look like CG, and they absolutely nailed it. They blended it so perfectly with the traditional hand-drawn animation, and everyone agreed it was a stunning accomplishment for anime.

Telecom Animation Film’s most recent movie was Lupin III: The Immortal Bloodline, which first came out in Japan on June 27, 2025. By January 2026, it had earned around US$1.17 million worldwide. Before that, the studio released The Seven Deadly Sins: Four Knights of the Apocalypse in 2023, a continuation of the popular anime The Seven Deadly Sins, originally produced by A-1 Pictures and Studio DEEN. This series has two seasons, with the second season airing from October 6 to December 29, 2024.

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2026-02-17 03:39