As Comic-Con Kicks Off, Japan’s Booming Anime Industry Is Attracting Institutional Finance

As a long-time movie lover with a deep appreciation for Japanese animation, I’m thrilled to see the recent investment moves by Marubeni and Mizuho Securities into this vibrant industry. Having grown up watching iconic anime titles like “Doraemon,” “Detective Conan,” and “One Piece,” I can attest to their enduring global appeal and influence.


Before the upcoming San Diego Comic-Con weekend, during which Asian content is expected to make a significant mark, two major Japanese industrial and financial groups have discreetly started putting resources into Japanese animation – currently the most vibrant sector in Japan’s film and television domain.

Marubeni, with its origins in cereals, chemicals, and paper industries but now a major trading player and Japan’s 13th largest corporation, aims to enter the thriving manga (comics) and anime (animated films and series) markets through a fresh collaboration with Shogakukan, a prominent publishing company.

Mizuho Securities, which is a part of the Mizuho business group in Japan, announced this month its plan to establish a fund for producing animation films. By gathering investments from institutions and affluent individuals, each contributing at least 300 million yen ($200,000), the brokerage aims to collect a total of 15 billion yen ($15 million) by year-end.

As a movie reviewer, I’ve been thoroughly impressed by the recent surge in popularity of Japanese animation on a global scale. Anime titles like “Doraemon” from Shogakukan and Shin-Ei Animation, “Demon Slayer” and “Detective Conan” from Shueisha and Ufotable, and “One Piece” have grown into powerful franchises that resonate with audiences around the world. Moreover, I’ve been astounded by the success of Japanese animated films such as “The Boy and the Heron” from Studio Ghibli and “Suzume” from CoMix Wave-Toho. These movies have managed to gross over $100 million in a single territory, showcasing the immense potential and appeal of anime on the international stage.

Mizuho will collaborate with Questry, a budding blockchain company, and Royalty Bank. Together, they plan to invest approximately $5 million per project in a select number of new Japanese animation productions annually.

In the early 2000s, institutional funds held a more significant role in Japan’s media landscape. However, they have been overshadowed by production committees which have become the prevailing structure since then. These committees are formed by groups of companies operating in or linked to the entertainment industry, such as advertising giants Dentsu and Hakuhodo, who come together to shoulder risks collectively.

The production committee system creates stability, but it has been criticized for slow decision making, scaring off international co-productions and keeping budgets artificially low. The per film, special purpose vehicles that committees frequently set up ring-fence financial risk but may also discourage reinvestment.

Lately, various elements have been chipping away at the risk-averse attitude of committees. Some of these factors are Japan’s increasing global recognition for anime, Sony’s purchase and revitalization of anime streaming platform Crunchyroll, and Netflix joining as a significant investor in the industry.

Prime Minister Kishida Fumio’s administration is eager to elevate Japanese entertainment to the same global recognition as K-pop and Korean dramas. During his “New Capitalism” plan presentation last month, he expressed pride in Japan’s artistic content, such as anime, manga, and music, stating that they possess significant export potential, comparable to industries like steel and semiconductors.

Furthermore, prominent Japanese directors like Kore-eda Hirokazu are advocating for modernizing the film industry in Japan. This includes setting up government-funded production companies and incentives similar to those of France’s National Film Center, as well as dismantling traditional power structures.

According to a Bloomberg report, Mizuho’s global investment banking chief, Shuichiro Tomihari, expressed his intention to foster investment chances for external parties and expedite the rejuvenation process within the anime industry.

New funds could help ease two problems that the industry is currently facing: a shortage of animators (low salaries and long hours are dissuading new entrants) and production budgets that pale in comparison with the biggest American (and Chinese) counterparts. (Sony is also currently setting up a skills training academy.)

Work backlogs at top studios are reportedly stretching out for two to three years, forcing some to contemplate outsourcing more production to countries like the Philippines and Vietnam. This is a contentious issue for many, but the trend towards digital animation may only grow stronger. Regardless of resistance, change is on the horizon.

The challenges from foreign competitors and the use of AI in manufacturing, along with the present chances for Japanese anime to expand into fresh markets and digital platforms, serve as powerful motivators for changing the industry. Financial resources will be essential during this period of transformation.

Marubeni’s role is typical as they established MAG.NET Corp., a joint venture between three established corporations, including their paper products subsidiary Forest LinX. However, it’s worth noting that this is Marubeni’s initial step into the entertainment industry, having been in business for 168 years.

In 2022, it was projected that Japanese content sales outside of Japan would reach approximately JPY4.7 trillion ($2.9 billion). The appeal of manga and anime from Japan is surging, fueled by the surge in demand for home-based products due to the COVID-19 pandemic and aggressive distribution by major international distributors. This market now includes a wide range of merchandise beyond just content, such as games. (Marubeni made this statement.)

The statement also points out areas that require improvement. For instance, “The absence of our own distribution channels and physical stores prevents us from reaching fans globally, resulting in missed chances. Consequently, there’s been a surge in pirated merchandise, underscoring the importance of a robust system for disseminating authentic products.”

Shogakukan is responsible for maintaining a steady supply of products for MAG.NET. Meanwhile, Marubeni and Forest LinX focus on broadening the selection of merchandise and offerings related to manga and anime. Additionally, they are working on increasing distribution internationally by establishing new retail outlets.

Additionally, there could be other financial innovations underway. For instance, Singapore-based Phillip Securities announced recently that they aim to generate over $2 million by selling digital securities for the Japanese live-action film “Treasure Island.” This movie, an adaptation of a Shindo Junjo novel and featuring Tsumabuki Satoshi, is the project in question.

Around the middle of June, Blackstone, a major player in private equity, unveiled a $1.7 billion bid for Infocom, a prominent Japanese company in the digital comics industry. Notably, its subsidiary Mecha Comic holds the top spot among Japanese women aged thirty and above.

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2024-07-25 13:47