The Guide to Japanese Film Industry & Co-Production (2009)

The Guide to
Japanese Film Industry & Co-Production
2009
UNIJAPAN

Contents
2 3
¡About this guide................................................................................................ 4
Foreword.............................................................................................................. 5
Chapter 1 Japan’s Film Industry
Postwar Japanese Film Industry and Development ........................................ 7
1. Japanese Film after World War II ............................................................. 7
2. Importing Films ...................................................................................... 8
3. 1950s Mark the Peak of the Japanese Film Industry.................................. 9
4. From 1960s Onwards—Japanese Film Industry in decline ..................... 10
5. Boom of Artistic Films and Mini-Theaters.............................................. 10
6. Video Rental Stores and V-Cinema ......................................................... 12
7. Multiplex Cinemas ................................................................................. 13
8. Increasing Number of Screens and Plateauing Number of Audience ....... 14
9. TV Networks Entering the Film Industry................................................ 15
10. IT Companies Entering the Film Industry............................................... 16
11. The Japanese Film Bubble
—shift from imported films to Japanese films......................................... 16
Overview of the Japanese Box-office for Year 2008 ........................................ 18
1. Japanese Films Exceed Imported Films ................................................... 18
2. Further Polarization between Majors and Independents ......................... 19
3. Box-office of Japanese Films................................................................... 20
4. Box-office of Imported Films ................................................................. 22
Major Distributors............................................................................................ 25
Statistics 2008.................................................................................................... 37
Chapter 2 Co-production System in Japan
Development of Co-production System and Its Structure............................ 40
1. Development of Co-production in Europe ............................................. 40
2. Development of Co-production in East Asia and Japan .......................... 41
3. Trying to Define International Co-production........................................ 43
4. Works Recognized as Co-production in Japan
Three Patterns and Recent Cases ............................................................ 43
5. Challenges in Co-producing with Japan.................................................. 45
J-Pitch: Support Program for International Co-production......................... 48
1. J-Pitch Activities .................................................................................... 48
2. Supported Films..................................................................................... 52
Film and Co-production Market in Japan...................................................... 54
1. TIFFCOM: Marketplace for Film & TV in Asia....................................... 54
2. Tokyo Project Gathering (TPG) Co-production Market.......................... 55
Other Support Schemes.................................................................................... 57
1. Support Program for the Production of Film and TV Programs on Japan
............................................................................................................... 57
2. Subsidies for Culture and Arts Promotion Expenses
—Support for Challenging Film Production........................................... 59
3. Support Program for the Participation at Film Festivals.......................... 62
Chapter 3 Filming in Japan
1. The Establishment of Film Commissions................................................ 66
2. The Launch of Japan Film Commission (JFC)........................................ 67
3. Some Useful Tips
—how to get the best support from film commissions ............................ 67
4. AFCNet (Asian Film Commissions Network) members.......................... 68
Chapter 4 Information on Japanese Films
Japanese Film Industry..................................................................................... 71
1. For the Statistics Refer to Motion Picture Producers
Association of Japan, Inc. (EIREN)......................................................... 71
2. For the Imported Films Refer to Foreign Film Importer-Distributors
Association of Japan (Gaihaikyo)............................................................ 71
3. For Research and Survey on Japanese Film Market Refer to
Kinema Junpo Film Institute.................................................................. 72
Japanese Film Database (JFDB)....................................................................... 73
Content of JFDB..................................................................................... 74
Japan Location Database (JLDB)..................................................................... 75
Some Useful Links ............................................................................................ 76
¡About UNIJAPAN .............................................................................................. 78
[ Japanese, Chinese, Korean, and other names from cultures where the family name appears
first are printed in romanized form in this booklet in accordance with those customs, with
the family name first and the given name second.

About this guide Foreword
4 5
This is the era where everybody creates.
—Patti Smith “A Rock’n’ Roll Star”
The era for films to be made by anyone, at anytime and anywhere has come.
Anywhere? Even in Japan? Of course! In Japan every year more than 400
films titles are made and released in cinemas. Departures, Tokyo Sonata,
Achilles and the Tortoise are one of those Japanese films.
However, we are often asked by overseas filmmakers how to produce a
film in Japan. “How can I get film-shooting permissions? Is there any public
support program for film co-production? Are there any co-production
agreements?”
There are different filmmaking cultures around the globe. Japan has
its own culture and support programs for filmmaking which might differ
from the others, but they do exist.
This guidebook is first and foremost made with an aim for you to
understand the state of Japan’s film market. It provides the summary of
Japanese film industry and support programs. It may not cover all the
information necessary for co-producing with Japanese companies but it is
surely the first step for bringing closer Japan’s film community to you!
UNIJAPAN J-Pitch Team
About this guide As of year 2006, UNIJAPAN together with the Ministry of Economy, Trade
and Industry has been actively supporting the promotion of international co-
productions between the Japanese and overseas producers.
This guide is made with an aim to serve as an introduction tool for furthering
the understanding of the work and condition of Japanese film market and the
opportunities it provides for the international co-productions. The guide gives
the general information and guidelines considered necessary for the overseas
filmmakers interested in co-productions with Japan.

This guide is produced by UNIJAPAN International Promotion Department,
under the support of the Ministry of Economy, Trade and Industry.
For any inquiries, please contact:
UNIJAPAN International Promotion Department
5F Tsukiji Yasuda Bldg., 2-15-14, Tsukiji
Chuo-ku, Tokyo 104-0045
Tel: 81-3-5565-7511
Fax: 81-3-5565-7531
Email: jpitch@unijapan.org
Attention: This guide is produced under the supervision of UNIJAPAN. It or any parts of
information it provides may not be reproduced and/or published by printing,
photocopying, microfilm or any other method without prior written permission of
UNIJAPAN.

Postwar Japanese Film Industry and Development
6 7
Postwar Japanese Film Industry and Development
By Kakeo Yoshio, Executive Director, Kinema Junpo Film Institute
1. Japanese Film after World War II
The Japanese film industry after the defeat of Japan in World War II in
1945 started under the control of the General Headquarters (GHQ).
The industry was under the direct management of the Motion Picture
and Theatrical Unit of the Civil Information and Education Section in
the GHQ. Representatives of the film companies were assembled and an
announcement was made on September 22 that the underlying themes for
films were to be “abolishment of militarism,” “promotion of liberalism”
and “establishment of pacifism.”
The number of Japanese films shown in the cinemas from the day
Japan was defeated in World War II,August 15, 1945, to the end of that year
was 12 films, out of which the majority had been banned from screening
during the war as they were considered to be pro-America.The first postwar
Japanese film Soyokaze (1945; directed by: Sasaki Yasushi, starring: Sano
Shuji) was produced by Shochiku which became a great hit together with
its main theme song Ringo no uta sung by Namiki Michiko. The cinemas
at the time still showed signs of the war; the buildings were still half burnt
down with steel beams showing their faces and obviously short of seats.The
film industry, however, became a booming market and people swarmed to
the cinemas as the population increased with the returnees from China and
the demobilized veterans, as well as from the relief that the war was over.
The Japanese film industry revived rapidly as the prime entertainment
for the Japanese people. In 1951, Rashomon directed by Kurosawa Akira
won the Golden Lion (Leone d’Oro) at the Venice International Film
Festival. Japanese films were at its height in the 1950s as they won a number
of awards at the international film festivals.
Chapter 1
Japan’s
Film
Industry
title (year) film festival / award director
Rashomon (’51) Venice Film Festival / Golden Lion KUROSAWA Akira
Gate of Hell Cannes Film Festival / Palme d’Or KINUGASA Teinosuke
(Jigokumon) (’54)
Twenty-Four Eyes Golden Globes / KINOSHITA Keisuke
(Nijushi no hitomi) (’54) Golden Globe Award for Best Foreign Film
Musashi Miyamoto Academy Awards / INAGAKI Hiroshi
(Miyamoto Musashi) (’55) Best Foreign Language Film
The Story of Pure Love Berlin Film Festival / Best Director Award IMAI Tadashi
(Junai monogatari) (’58)
Rickshaw Man Venice Film Festival / Golden Lion INAGAKI Hiroshi
(Muhomatsu no issho) (’58)

Chapter 1
Japan’s Film Industry Postwar Japanese Film Industry and Development
8 9
2. Importing Films
Even after the end of the war, Central Motion Picture Exchange (CMPE) of
the GHQ monopolized the provision and screening of imported films. All
new imported films shown in Japan for a year and a half after the war, until
the end of 1946 wereAmerican films.Private companies were not permitted
to import films.However,new films from the Soviet Union,UK,France and
Italy were also screened starting in 1947 upon the strong request by those
countries. Even so, the import of films by the Japanese nationals was still
not allowed as only one importing company was permitted per country,
under the condition that the president of the company was a national of
that country. The first screened films by country were as follows:
In 1951, the Treaty of Peace with Japan was signed in San Francisco, and
Japan was to restore its sovereignty the following year,onApril 28,1952.The
organization that monopolized the distribution of American films, CMPE
was dissolved at the end of 1952. American films were then imported by
the branch office of Hollywood just like before the war. Furthermore, the
import of films by the Japanese was now permitted.
Towa Shoji Movie Department (Towa Eiga) founded by Kawakita
Nagamasa in 1928 was a leading company in the import of films to
Japan before the war. Mr. Kawakita, however, was purged from all public
positions and was banned to “take part in the production, import, etc. of
films or to make statements to the media.” This treatment was not limited
to Mr. Kawakita. Many film related professionals were purged from public
positions as they were said to have promoted militarism. Mr. Kawakita was
able to return to his public position in 1950, and Felicie Nanteuil (directed
by: Marc Allegret, starring: Micheline Presle) was screened on March 13,
1951 by Towa Eiga. Around the same time, Nippon Cinema Corporation
(NCC) run by a Japanese president was founded as a company to distribute
works by the British Film Institute (BFI), followed by many more film
importing companies run by the Japanese.
This is how the import of films came to be permitted. Yet, due to
the foreign exchange shortage and for the protection of the Japanese film
industry, the import restriction was still placed by the Ministry of Finance
and GHQ. This import restriction took the form of a “quota system,”
according to which the number of films imported to Japan needed to be
equal to the number of Japanese films screened in the cinemas. This system
was applied to the share of American, British and French films present
in Japan’s film market at the time. The quota allowed to each importing
company, was based on the average of the number of films it screened the
previous year and its distribution revenue.
This “quota system” was then switched to a currency quota, where
restriction was placed on the purchasing price,while bonus quota was given
to companies that imported excellent revenue-earning films. In addition,
quota was traded among film importing companies as the film industry
was in a boom, where any and all films screened became a hit. However,
criticism rose that this“quota system” protected the advantageous position
of American films that persisted from the Occupation. As a result, the
Ministry of Finance drastically changed the “quota system” in response to
the criticism by the opposition party at the regular Diet session in 1958.
The criticisms were aimed at the deterioration of actual import quota by
the distributor, thus the Foreign Film Distributors Association of Japan (in
1959,renamedtoForeignFilmImporter-DistributorsAssociationof Japan)
was established in 1958 as part of a course-changing measure. After 1960,
the import of films was decided to be liberalized under the condition that
the foreign exchange rate showed an upturn and that it would not oppress
the Japanese film industry even when the import quota was abolished.
3. 1950s Mark the Peak of the Japanese Film Industry
The Japanese film industry reached its peak in the 1950s. Five companies—
Shochiku, Toho, Daiei, Toei and Nikkatsu—screened two films per week
for 50 weeks a year. Furthermore, Shin Toho established as a result of the
Toho union dispute in 1947 also actively produced and distributed films.
The annual production of Japanese films exceeded 500 works, and all
studios were enjoying brisk business, while the films produced during this
time were also of very high quality. The works by Director Kurosawa Akira
of Toho and Director Ozu Yasujiro of Shochiku dominated the most ranks
of the Kinema Junpo[
Top Ten and also ranked high in terms of the box-
office revenue.With TV yet to come out to the market and the undeveloped
amusement facilities in the 1950s, film was the prime entertainment for the
people, thus any and all films became a hit once it was screened.
In the second half of the 1950s, the number of audience and cinemas
in Japan reached its peak.
[ First issued in 1919, Kinema Junpo is a publication which issues the most recent data
of film releases in Japan and represents one of the oldest publication of its kind.
country company title [date]
Soviet Union Soviet Union Film Exporters Association Anton Iwanowitsch is Terribly Furious
[September 30, 1947]
UK British Film Institute (BFI) The Seventh Veil [December 2, 1947]
France French Film Export Union (SEF) Beauty and the Beast (La Belle et la Bete)
[January 27, 1948]
Italy Italia Film Paisan (Paisà) [September 6, 1949]

Chapter 1
10 11
Number of audience
¡1957 1.0989 billion people
Number of cinemas
¡1958 7,067 facilities
From 1957 to 1960, the annual number of audience in Japan exceeded 1
billion people. It was still at a time when the Japanese population was less
than 100 million people, indicating that a person went to the cinemas more
than ten times a year. Furthermore, between 1958 and 1961, the number
of cinemas exceeded 7,000 facilities. There were two or three cinemas even
in a small town.
4. From 1960s Onwards—Japanese Film Industry in decline
With the Tokyo Olympic coming up in 1964, TV was rapidly making
its way to Japanese households. In contrast to the rise of TV, the film
industry was starting to mark a decline. The number of audience which
exceeded 1 billion people in 1960 plunged to 254.8 million people in 1970,
approximately 25% of that in 1960. Furthermore, there were 7,231 cinemas
in 1961,but the number dropped to 3,246 facilities in 1970.This downward
trend continued up until the mid-1990s. As for the number of cinemas,
1993 marked the worst in history at 1,734 facilities. Ironically, 1993 was
also the year the first multiplex in Japan, Warner Mycal Ebina was opened.
As for the number of audience, 1996 marked the worst in history at 119.6
million people.
5. Boom of Artistic Films and Mini-Theaters (Independent Art House Cinemas)
1) Establishment of Art Theater Guild (ATG)
The establishment of the Art Theater Guild, also known as ATG, in
November 1961 played a major role for Japanese artistic films. Proposed by
Ms. Kawakita Kashiko of Towa Eiga, supported by Mr. Mori Iwao of Toho
and with capital investment amounting to more than half of the total by
Toho,ATG was established to screen highly artistic and low profit films that
are usually cold-shouldered by commercial cinemas.
The first film ATG screened on April 20, 1962 was the Polish film
Mother Joanna of the Angels directed by Jerzy Kawalerowicz which ranked
6th place in Kinema Junpo Top Ten (imported films). The following list
consists some of the films by ATG. They were screened at Nichigeki Bunka
which used to be in the underground floor of Nichigeki Theater and
Shinjuku Bunka in Shinjuku.
Imported Films:
Wild Strawberries (Smuktron-Stallet)
1962 Ingmar Bergman 1st[
The Seventh Seal (Det Sjunde Inseglet)
1963 Ingmar Bergman 6th[
Shoot the Piano Player (Tirez sur le pianiste)
1963 Francois Truffaut 9th[
The Long Absence (Une aussi longue absence)
1964 Henri Colpi 1st[
Last Year at Marienbad (L’Anné dernière á Marienbad)
1964 Alain Resnais 3rd[
[ rank for Kinema Junpo Top Ten (imported films)
Works screened by ATG continued to rank in the Kinema Junpo Top Ten.
ATG also played a key role for Japanese films as well.
A Man Vanishes (Ningen johatsu) 1967 Imamura Shohei 2nd[
Manual of Ninja Martial Arts (Ninja bugei-cho)
1967 Oshima Nagisa 10th[
The Human Bullet: Human Guinea Pigs (Nikudan)
1968 Okamoto Kihachi 2nd[
Death by Hanging (Koshikei) 1968 Oshima Nagisa 3rd[
Nanami: The Inferno of First Love (Hatsukoi: Jigoku-hen)
1968 Hani Susumu 6th[
Double Suicide (Shinju ten no Amijima)
1969 Shinoda Masahiro 1st[
Boy (Shonen) 1969 Oshima Nagisa 3rd[
[ rank for Kinema Junpo Top Ten (Japanese films)
2) Age of Mini-Theaters
In 1978, Conversation Piece (Gruppo di Famiglia in un Interno) (directed
by: Luchino Visconti, distributed by: Toho-Towa = Shibata Organization)
was screened at Iwanami Hall, and recorded a long-running hit. The
following year, in 1979, The Travelling Players (O Thiassos) (directed
by: Theo Angelopoulos, distributed by: Shibata Organization) was also
screened at Iwanami Hall and again marked a long-running hit. These two

Chapter 1
12 13
consecutive years of artistic films winning the first place in the Kinema
Junpo Top Ten and the long-running hits at mini-theaters proved the
potential of artistic films bringing commercial successes. In 1981, Cinema
Square Tokyu with its screening films selected by Herald Ace was opened
in Shinjuku. Ever since, a number of mini-theaters including Cinema Rise,
Eurospace, Cine Vivant Roppongi, Chanter Cine, Cine Saison Shibuya,
Cine Switch Ginza, Ebisu Garden Cinema, Bunkamura Le Cinema and
Cine Amuse were opened in the 1980s.
This boom of independent cinemas simultaneously led to the
establishment of many small-scale film importing and distribution
companies. Traditionally, distribution is a very competitive business,
and difficult for small-scale distribution companies to enter. However,
distribution by small-scale companies to mini-theaters were made possible
as screening at these cinemas did not require big sum of money including
the purchasing price and advertisement cost. In the 1990s, the number
of screens at mini-theaters in Tokyo surpassed 40 and the number of
distributors became over 100.
In the first half of the 1980s, artistic films enjoyed commercial
successes as there were not many distribution companies geared toward
the mini-theaters, thus the purchasing price was kept low, and the number
of artistic films actually being screened was small. However, once hitting
the 1990s, the number of distribution companies multiplied and the
purchasing prices increased due to competition, resulting in chasing each
other out of business.
6. Video Rental Stores and V-Cinema
In the mid-1980s, video rental started to become widely available. In 1986,
the major video rental company Tsutaya was established. The number of
video rental stores including individually owned stores was said to total
10,000 stores across the country. This rise of video rental stores supported
the business of the distribution companies geared toward the mini-theaters
noted above, since the artistic films that were unsuccessful at the cinemas
became available for rental at the video rental stores.When the video rental
business started, major film companies considered video rental business
as a threat to their box-office revenue and were not too cooperative to the
business, thus the video rental stores had a lot of shelf space for the artistic
films.
This shortage of films at video rental stores led to the development of
a new genre of Japanese film—V-cinema. V-cinema works are those that
are not screened at cinemas, but instead are directly released on video at
video rental stores. Just like the mini-theaters leading to the establishment
of small-scale film importing companies, this boom of the V-cinema led
to the development of video companies and small-scale film production
companies specializing in V-cinema works. New talents including Director
Miike Takashi were discovered from this circle. However, in the second half
of the 1990s V-cinema slowed down, and the trend shifted to Japanese film
production and distribution companies for screening at mini-theaters.
7. Multiplex Cinemas
As noted above, the first multiplex in Japan was Warner Mycal in Ebina,
Kanagawa Prefecture in 1993. Ever since, multiplex market in Japan was
led by foreign affiliated companies such as AMC, UCI and Virgin Cinema.
In recent years, AMC and UCI merged which was then bought over by
Sumitomo Corporation, and is now United Cinema (UC). Virgin Cinema
was bought over by Toho and currently, Warner Mycal is the sole survivor
of the above mentioned companies.
Furthermore, film companies entered the multiplex market, as seen in
Shochiku working with SMT, Toei with T-Joy and Kadokawa Pictures with
Kadokawa Plex. As for promotion companies, Tokyu Recreation and other
companies are actively developing their business. It may be possible that
the foreign affiliated companies initially led the rising multiplex market in
Japan because Japanese film companies lacked confidence in the Japanese
market. As can be seen from 1996 marking the worst number of audience
in history, box-office revenue in Japan was facing its most difficult time
for the first time since the end of the war just around the time multiplexes
were first developed. It was thought that Japan would not be able to follow
the example of the United States as land rent, tenant fee and personnel cost
were high in Japan.
However, once multiplexes owned by foreign affiliated companies
showed a certain level of success, the Japanese film companies started
taking a more active approach. The number of multiplexes multiplied
as we entered the 21st century, reaching 3,360 facilities as of the end of
2008, accounting to 80% of all screens nationwide. This rapid emergence
of multiplexes triggered a drastic change in the film distribution structure
in Japan. In other words, efficient business management was made possible
by allocating many screens to popular films, while decreasing the showings
of unpopular films. As a result, successful works drew in even more
audience, while unsuccessful films lost the chance to draw in its audience.
This strategy drew a big, fat line between the winners and the losers, and
further enlarged the gap.

Chapter 1
14 15
Total number of screens
8. Increasing Number of Screens and Plateauing Number of Audience
As mentioned above, multiplex market showed a stunning development,
which gave a big boost to the number of audience from the worst year in
1996 with less than 120 million people to around 160 million. Japanese
cinemas were suffering a long period of decline. People had the impression
that the cinemas were unhygienic and the chairs were uncomfortable, but
multiplexes completely changed this image. Multiplexes drew back in the
elderly movie fans that went to the cinemas in the 1950s and 1960s, making
movies a more casual, everyday entertainment.
However, the number of audience has leveled out around 160 million
people for the past decade after it peaked at 170 million in 2004.In contrast,
the number of screens has increased from 1,993 screens in 1998 to 3,360,
marking approximately an increase of 1,370 screens. This means that the
box-office revenue per screen has dropped significantly. Nowadays, only a
set group of movie fans actually watch movies at cinemas, and is thought
that the pattern today is for the same people to watch several movies at
cinemas in a year. However, the current annual number of audience is too
small for the number of screens which continued to increase over the past
years. In case this situation persists, the movie business in Japan may face a
fateful crisis.
The cinemas are providing various services such as “senior discount”
targeting those aged over 60, “couple 50 discount” targeting couples
where either one of the couple is aged over 50. These services have proven
effective to a certain level, but have not triggered a big financial spark in
the business. The discounts are effective in encouraging people to come
watch movies at the cinemas again, but have not led to gaining a new batch
of movie-goers. In particular, the tendency of the younger generations
not going to cinemas have been pointed out, and to make these younger
generations get in the habit of watching movies at the cinemas has become
an important agenda. This issue cannot be solved by the cinemas alone. It is
an act of protecting the Japanese film culture, thus is an issue that the entire
film industry, municipalities and education related ministries and agencies
must tackle together.
9. TV Networks Entering the Film Industry
In 1998,Bayside Shakedown (Odoru daisosasen:THE MOVIE) produced by
Fuji Television Network recorded a distribution revenue of ¥5.3 billion and
was a big hit with the highest box-office revenue of the year. TV networks
have long been producing theatrical films, with its first work being Steel
Edge of Revenge (Goyokin) by Fuji Television Network in 1969. Since then,
TV networks have been producing many theatrical films such as Antarctica
(Nankyoku monogatari) (1983). The film industry was in control and films
were produced mainly by the film related people.However,the involvement
of TV networks drastically changed before and after Bayside Shakedown.
Because Bayside Shakedown was a film adaptation of the TV drama
series, it was produced mainly by the TV network. Ever since, many films
have been produced by the TV networks. Yet these works did not hold
much significance in the film industry. Then in 2002, the market share
of Japanese films took a nosedive to its worst level at 27%. Since 2003,
however, the market share of Japanese films gradually recovered, obtaining
33% in 2003, 37.5% in 2004, 41.3% in 2005 and 53.2% in 2006. In 2006,
the market share of Japanese films exceeded that of the imported films for
the first time in 21 years. One of the big factors for this recovery was none
other than those films the TV networks were involved in. It is said that TV
networks greatly contributed to the recovery of the Japanese flm industry
with their keen eyes for spotting what the audience is craving for and the
effective use and influence of information distributed on their broadcasting
networks.
Nowadays, the involvement of the TV networks has become an
essential factor to whether a film will become a hit or not. Yet this move
has not led to an increase in the overall number of audience. It was just
that the imported movie-goers simply switched over to Japanese films. The
involvement of the TV networks has become a critical factor when new
proposals are brought in to the film companies.As such, excessive influence
of the TV networks has become an obstacle to the healthy environment for
fair evaluation of the content of the proposal itself.
year total no. of screens no. of multiplexes percentage
1997 1,884 157 8.3
1998 1,993 267 13.4
1999 2,221 760 34.2
2000 2,524 1,123 44.5
2001 2,585 1,259 48.7
2002 2,635 1,396 53.0
2003 2,681 1,533 57.2
2004 2,825 1,766 62.5
2005 2,926 1,954 66.8
2006 3,062 2,230 72.8
2007 3,221 2,454 76.2
2008 3,359 2,659 79.2

Chapter 1
16 17
10. IT Companies Entering the Film Industry
The spread of the internet and mobile phones has led to the new
development and advancement of the IT companies. Film is now seen as
valuable content materials for online video streaming. The matured IT
companies have now entered the film industry, and as its result, many films
have been imported and Japanese films produced. The number of films
screened in a year which was 550 films in 1998 skyrocketed to over 800
films in 2006 and 2007. However, as seen in the increase of the number of
screens, the number of audience did not increase. Furthermore, the market
share of the major film companies did not change despite the increase
in the number of screened films. In other words, companies that newly
entered the market could not win any market share upon distribution and
screening of their films. In 2008, companies that newly entered the market
started to downsize or shutdown their film business.
11. The Japanese Film Bubble
—shift from imported films to Japanese films
Winning 53% of the market share in 2006,Japanese films recorded a drastic
recovery after its worst level of 27% in 2002. However despite this recovery
in the market share, the number of audience did not show much increase
during this period, meaning that the imported film fans just switched over
to Japanese films. In the past, imported film fans and Japanese film fans
were clearly divided, mainly because the cinemas for the imported films
and the Japanese films were separate.
With the rise of multiplexes,imported films and Japanese films started
to be screened in the same building, making the two easily available to the
audience. Furthermore, films produced by the TV networks were favored
by the younger viewers. Works mainly produced by the TV networks such
as Sea Monkey (Umizaru), Sky of Love (Koizora), Train Man (Densha
otoko) and BOYS OVER FLOWERS the movie (Hana yori dango final)
drew in large audience. Long-running hit imported movies were limited
to blockbuster films such as the Pirates of the Caribbean series, the Harry
Potter series and the Spider-Man series, and even Hollywood films are
suffering badly, especially those medium and low budget works.
As such, the booming Japanese films have given great damage
to imported films. In particular, Japanese importing and distribution
companies have been affected significantly. Major film importing and
distribution companies have left the business, and some of them have been
in a critical situation as imported films for mini-theaters cannot draw in the
younger audience. Companies have been cutting down on film purchasing
since few years back, but have finally run out of stocks. Therefore, the
number of imported films screened in 2008 finally undermined that of the
previous year by 40 films.
Film importing and distribution companies that were in a slump
started the production and distribution of Japanese films as they were
well accepted by the younger audience. As other industries also entered
the film industry around the same time, the production of Japanese films
multiplied at a magnificent rate, thus called the “bubble of the Japanese
film.” The number of Japanese films screened was only 287 works in 2003,
but increased to 417 works in 2006. However, the Japanese films that were
newly brought out on the market could hardly win any market share.
Small-scale film importing and distribution companies as well as Japanese
film production companies and distribution companies came to face a
fateful crisis.
Furthermore, the Japan branch offices of Hollywood started to engage
in local production and the production of Japanese films, as medium
and low budget Hollywood films were suffering badly. In 2006, Warner
Entertainment Japan recorded the box-office revenue of over ¥10 billion
with three films: Death Note, Death Note: The Last Name and Brave Story.
However, Accuracy of Death (Sweet Rain: Shinigami no seido), Sushi Prince!
(Sushi oji!), Ichi and 252: Signal of Life (252: Seizonsha ari) distributed in
2007 did not reach the expected revenue amount. In 2009, Sony Pictures
Digital and Twentieth Century Fox Film Corporation will follow the
example of Warner and enter the local production market.
The film industry today, especially the small-scale film importing and
distribution companies, and Japanese film production companies are in
hot seats, while the sluggish secondary-use and video rental markets are
giving them an additional blow. In the past, low box-office revenue was
helped by the video rental, but nowadays polarization of hit films and
unsuccessful films have further advanced even in the video rental industry.
The works that suffered with box-office revenue are not out for rental at
video rental stores and, upon TV broadcast, the independent leaning works
are either negotiated for discount or simply not aired.

Chapter 1
Japan’s Film Industry Overview of the Japanese Box-office for Year 2008
18 19
Overview of the Japanese Box-office for Year 2008
By Kakeo Yoshio, Executive Director, Kinema Junpo Film Institute
1. Japanese Films Exceed Imported Films
1) Attendance
Although the Japanese film industry appears to be stable over the past
decade, with both attendance and box-office receipts hovering with only
slight ups or downs, it is actually entering difficult times as it can be seen in
the continuing decline of attendance per-screen.
In 2008, film attendance fell by 2.7 million in 2008, from 163.19
million in 2007 to 160.49 million, or a slight drop to 98.34%. Box-office
receipts also marked a similar small drop to 98.18%, falling by ¥3.607
billion from ¥198.443 billion to ¥194.836 billion.
Meanwhile,the number of screens increased by 138 from 3,221 in 2007
to 3,359 in 2008. Multiplex cinemas increased to 2,659 screens, accounting
for 79% of the total number of screens, up from 76% in 2007.
Per-screen audience declined by 2,886 from 50,665 in 2007 to 47,779
(94.30%),since attendance dropped while the number of screens increased.
Likewise, per-screen box-office takings fell ¥3,604,961 from ¥61,609,128 in
2007 to ¥58,004,167 in 2008 (94.14%).
2) Films released
In 2008, 418 Japanese films and 388 imported films were released totaling
806 films. This was a four-film-drop from 810 in 2007, among which 407
were Japanese and 403 were imported films. These numbers show also that
in 2008 box-office receipts of Japanese films exceeded those of imported
films by a large margin.
While in 2006, the share of Japanese films overtook that of imported
films for the first time in 21 years, the margin was still small at 53% for
Japanese films. In 2007, imported films recovered their share, albeit by
a small margin, at 52%. In 2008, however, Japanese films overwhelmed
imported films with a share of 59.46%.
Although this was a welcome development for the Japanese film
industry, a small decline in overall audience numbers showed that a large
number of the audience for imported films simply shifted to Japanese
films. In other words, it justified that the future market will not expand
unless both Japanese film and imported film attendance increases.
2. Further Polarization between Majors and Independents
1) Box-office draws
In 2006 when the share of Japanese films first overtook imported films,
three films produced locally by Warner Entertainment Japan earned more
than ¥10 billion in combined box-office takings. Likewise, both Asmik Ace
Entertainment and Cine Qua Non had three titles with box-office takings
of over ¥1 billion.
In 2008, however, there were only two films with box-office takings
of more than ¥1 billion released by non-big three makers—L change
the WorLd by Warner (¥3.1 billion) and Climber’s High by Toei=Gaga
Communications (¥1.18 billion).
The situation was the same for imported films, with the gap
widening between major producers and independents. Financially weak
independents find themselves in far more difficult conditions than major
producers in terms of both planning and development costs and selection
of plans.
In other words,most big box-office draws came from major producers,
with independents becoming less likely to come up with blockbuster hits.
Several intertwined factors are behind this development:
(1) Multiplex cinemas, which now account for 80% of the total
number of screens, are biased toward showing big-hit films;
(2) The dwindling secondary-use market makes it difficult to recover
production costs of Japanese films and purchase costs of imported
films, pushing financially fragile independents into dire straits;
(3) Tastes of audiences are changing: While older movie-goers enjoy
diversified film cultures, younger film fans tend to favor large-
budget Japanese films; and
(4) Planning abilities of independents are waning.
2) Major producers show growth
Major producers joined hands with TV networks to take advantage of
their strong information-transmitting capabilities to boost the visibility
of films they make and thus put on the market such blockbuster hits as
BOYS OVER FLOWERS the movie (Hana yori dango final) (¥7.75 billion/
TBS), Suspect X (Yogisha X no kenshin) (¥4.92 billion/Fuji Television) and
Partners: The Movie (Aibo —gekijoban—) (¥4.44 billion, TV Asahi). At
the same time, they broadened their scope to take up more serious themes,
including Departures (Okuribito) (¥3 billion/TBS), I’d Rather Be a Shellfish
(Watashi wa kai ni naritai) (2009/TBS) and Nobody to Watch over Me (Dare
mo mamotte kurenai) (2008/Fuji Television).
Another noteworthy development was the box-office draw of Detroit

Chapter 1
20 21
Metal City (¥2.34 billion), planned and produced by Toho without a tie-up
with TV networks.
3) UIP Japan folds
Among film industry news, United International Pictures (UIP) Japan
folded in 2007 and Paramount Pictures Japan was launched in January
2008. But this did not come as a big shock because Universal, the other
partner in UIP, had already become independent in 2007 and started
business by making a distribution arrangement with Toho-Towa.
Much bigger news was the purchase by Universal from major
advertising agency Dentsu of a majority stake in Geneon Entertainment
(former Pioneer LDC), which Dentsu had taken under its aegis.
In addition, the releases of 3D movies such as Beowulf and Journey to
Center of the Earth gave an anticipation of the advent of the era of 3D films
at any moment. The film industry has high expectations on 3D films as a
primer for drawing audiences to cinemas, hoping for an acceleration of
their spread.
2008 Distribution per company (Japanese Films, Imported Films)
3. Box-office of Japanese Films
1) Substantial increase
In 2008, Japanese films chalked up box-office takings of ¥115.859 billion,
surpassing the 2007 takings of ¥94.645 billion by a large margin of ¥21.215
billion.Thenumberof filmsreleasedin2008cameto418,slightlyup11from
407 in 2007. There were a total of 28 films that earned more than ¥1 billion
with Toho providing 21 of them, demonstrating its overwhelming
distribution power. Box-office takings of ¥15.55 billion achieved by Ponyo
on the Cliff by the Sea (Gake no ue no Ponyo),an animation film by Director
Miyazaki Hayao were within the expectations, but still impressive. Also,
box-office takings of ¥7.75 billion for BOYS OVER FLOWERS the movie
and ¥4.92 billion for Suspect X were far larger than expected.
2) Major hits
Among films locally produced by Warner, which drew a great deal of
attention in 2006, L change the WorLd was a big success with box-office
takings of ¥3.1 billion, but Accuracy of Death (Sweet Rain Shinigami no
seido) (¥503 million), ICHI (¥445 million) and Sushi Prince Goes to N.Y.
(Ginmakuban Sushi oji! New York e iku) (¥365 million) turned in poor
performances.
Partners: The Movie (¥4.44 billion) was a film adaptation of the
popular TV drama broadcasted by TV Asahi and was well expected to
become a hit, but it marked not so much success.
Shochiku’s Departures (¥3 billion), which won Kinema Junpo’s Best
One award and Best Director award (Takita Yojiro) as well as the Academy
Award for Best Foreign Language Film, is also a film that deserves high
recognition. Addressing the themes of human death and the relationship
between the deceased and bereaved families, a story about how a young
couple become closer with strong bonds through the profession of
encoffineers and cast aside disdain for the vocation of preparing deceased
bodies for funeral services depicts the universal drama of human life and
deep personal characterization of the central character in a well-balanced
manner, which led to wide acceptance overseas. The fact that a TV network
participated in the planning of such a serious theme is of no small
significance, and it is expected that the success of this film would help lead
to more ambitious film ideas.
3) Independent productions wane
Diversely from major productions, the films produced by independents are
put in a poor commercial performance.
The combined box-office takings for the three major producers of
Toho, Shochiku and Toei came to some ¥97.29 billion accounting 83.9%
of total for Japanese films. The number of films distributed by the three
companies was 74, just 17.7% of the total number of 418 Japanese films
released.
This means that the remaining 344 films (82.3% of the total) shared
box-office takings of ¥18.569 billion (16% of the total).
company box office per year [share] no. of film releases [share]
Toho ¥73.9 billion [37.9%] 29 [3.6%]
Warner Brothers ¥16.4 billion [8.4%] 19 [2.4%]
Shochiku ¥16.1 billion [8.3%] 20 [2.5%]
Toho-Towa ¥14.1 billion [7.2%] 14 [1.7%]
Toei ¥11.9 billion [6.1%] 19 [2.4%]
Walt Disney ¥10.8 billion [5.6%] 6 [0.7%]
Paramount Pictures ¥8.2 billion [4.2%] 6 [0.7%]
20th Century Fox ¥7.9 billion [4.1%] 16 [2.0%]
Gaga Communications ¥7.8 billion [4.0%] 16 [2.0%]
Sony Pictures ¥6.8 billion [3.5%] 18 [2.2%]
Asmik Ace ¥6.0 billion [3.1%] 10 [1.3%]
Kadokawa Pictures ¥3.6 billion [1.8%] 18 [2.2%]
Others ¥11.3 billion [5.8%] 615 [76.3%]
total ¥194.8 billion [100%] 806 [100%]
Source: Kinema Junpo Film Institute

Chapter 1
22 23
4) Releases increase
While the number of imported film releases in 2008 declined, the number
of Japanese film releases increased. The number of imported film releases
as a downtrend began in 2003. The inventory of imported films purchased
earlier kept the releases of imported films from declining sharply before
2008.
Meanwhile, the releases of Japanese films increased in 2008 as a result
of new entrants to the film industry from other sectors and those who
shifted from the importation/distribution of imported films to production
of Japanese films kept on making films until around the middle of 2007.
When Japanese films produced by new entrants proved to be unsuccessful,it
was not until the summer of 2008 that they began curbing new filmmaking.
The films already under production were completed and released, pushing
up the total number of new releases in 2008. The number of releases of
Japanese films is expected to start falling around the latter half of 2009.
5) Hit indies
Among independent films released in 2008, The Handsome Suit (¥860
million) and Best Wishes for Tomorrow (Ashita e no yuigon) (¥600 million)
by Asmik Ace Entertainment fared well. The Witch of the West Is Dead
(Nishi no majo ga shinda) (¥450 million) and Gu Gu, the Cat (Gu Gu datte
neko de aru) (¥360 million) showed a relatively strong showing as well.
Also noticeable was After School (¥550 million) by The Klockworx,
which showed its presence felt again following Evangelion:1.0 You Are (Not)
Alone (Evangelion shin gekijoban: jo) (¥2 billion), a blockbuster hit in
2007.
Kadokawa Pictures had only one film with box-office takings of ¥300
million or more, Sergeant Keroro The Super Duper Movie 3—Keroro vs
Keroro The Battle of the Sky—(Cho gekijoban Keroro gunso 3: Keroro vs.
Keroro Tenku daikessen de arimasu!). Expectations are high for inspiring
activity by Kadokawa, a company with a long history of filmmaking.
4. Box-office of Imported Films
1) Sharp drop
In 2008, box-office of imported films fell sharply by ¥24.821 billion from
¥103.798 billion in 2007 to ¥78.977 billion (or 76.08%). The number of
imported films released also fell 15 from 403 in 2007 to 388. Per-film box-
office fell sharply to ¥203.54 million from ¥257.56 in 2007.
While films with box-office of over ¥1 billion numbered 25, only three
less than the corresponding number of Japanese films, there were no real
blockbuster hits.
The top performer among imported films in 2008 was Indiana Jones
and the Kingdom of the Crystal Skull with box-office takings of ¥5.71
billion.
2) Audiences
The poor performance of imported films stemmed mainly from the
decline in imported film attendance among younger generations.Serialized
movies like Indiana Jones may encourage generations who have seen old
films to view new ones as well, but are unlikely to win the favor of younger
generations.
Furthermore, imported films that proved to be blockbuster hits in
the rest of the world failed to draw such large audiences in Japan. Such
films as Wanted (¥2.5 billion), Kung Fu Panda (¥2 billion) and The Dark
Knight (¥1.6 billion) drew over four million movie-goers in South Korea,
which has cultural similarities. In Japan, however, these titles were hits with
box-office takings of around ¥5 billion. Even Hollywood movies, middle-
budget or smaller films were generally shown at so-called B Road theaters
(second-tier chains) just like throwaway matches.
Among them, Red Cliff Part 1 (¥5.05 billion) stood out. Many industry
people anticipated a certain measure of success of this film, but never
expected a performance of this magnitude. In particular, not a few people
voiced worries over Avex Marketing, which took an equity stake in the joint
production project with China, an endeavor with very few successful cases
before. It is hoped that the success of this film will help accelerate the trend
toward international joint production activity. For Toho-Towa, which
distributed Red Cliff Part 1, it represented a real breakthrough not seen for
a long time even including Universal films.
3) Stellar showing
Another independent large-budget film, The Golden Compass turned in a
stellar showing with box-office takings of ¥3.75 billion, but the number was
not necessarily satisfactory. Purchasing big-budget films like this would put
independent distributors at big risk, despite large profits expected if they
prove to be major hits.
However, Gaga Communications turned a documentary film Earth
Planet (¥2.4 billion) into a blockbuster, and also saved its face as a major
film importer/distributor with Sex and the City ¥1.7 billion, John Rambo
(¥1 billion) and 3D film Journey to the Center of the Earth (¥850 million).
Among middle-budget films released by independents, My Blueberry
Nights directed byWong Kar-Wai and released byAsmikAce Entertainment
wasoneof strongperformerswithbox-officetakingsof ¥550million.Asmik
Ace Entertainment was able to chalk up this number by releasing a Wong
Kar-Wai film, normally released at single cinemas with the focus on artistic
features, through middle-size cinema chains. But a simple expansion of the

Chapter 1
Japan’s Film Industry Major Distributors
24 25
cinema release will not ensure success for every Wong Kar-Wai film. In the
case of My Blueberry Nights, its promotion as a not-too-artistic love story
featuring Norah Jones and Jude Law worked well.
Box-office takings for such films as Nim’s Island (¥462 million) by
Kadokawa Pictures,Next (¥450 million) by Gaga Communications and The
Fixer (¥400 million) by Movie-Eye Entertainment provided evidence that
the imported film business has become difficult in Japan given purchase
and P&A costs.
4) Mini-theater releases
Imported films shown mainly at mini-theaters are finding themselves in
an even more difficult situation. In particular, the poor performance of
secondary use has made this business hard to sustain. The Oscar-winning
No Country for Old Men (Paramount=Showgate, ¥340 million) and
Director Ang Lee’s Lust, Caution (Wise Policy), winner of the Golden Lion
award at the Venice International Film Festival, failed to reach ¥500 million
in box-office takings despite being the subject of pre-release buzz.
With the form of single-cinema long-running showing gone, most
of mini-theater films cease to be shown after about four weeks following
the releases at cinemas with around three screens. As a result, importers/
distributors began to withhold the purchases of single-cinema artistic
films, even foreshadowing an era when such cinemas will face a shortage of
films to show.
Major Distributors
¢ Toho Co., Ltd.
In 2008, Toho raked in annual box-office takings of ¥73,914.59 million,
setting a new record far exceeding ¥59,510.67 million in 2007. The amount
accounted for as much as 63.79% of the total box-office takings of ¥115.859
billion for Japanese films as a whole. Combining this with box-office
takings of ¥14,118.85 million (including Universal films) for its subsidiary,
Toho-Towa, the total comes to ¥88,033.44 million, taking up 45.18% of the
aggregate box-office takings of ¥194.836 billion for Japanese and imported
films combined.
Naturally, Toho retained the top slot in the film industry in terms of
box-office takings in 2008.Among the total of 29 films released by Toho, 11
films had box-office takings of at least ¥2 billion and another ten films made
at least ¥1 billion, with such titles as Smile—Holy Night of Miracles (Smile:
Seiya no kiseki), Gachi Boy, My Darling of the Mountains—Tokuichi in Love
(Yama no anata Tokuichi no koi), and The Homeless Student (Homeless
chugakusei) failing to make the rankings of ¥300 million or more.
title box office
Japanese film 1 Ponyo on the Cliff by the Sea ¥15.00 billion
2 BOYS OVER FLOWERS the movie ¥7.70 billion
3 Suspect X ¥4.90 billion
4 Pokémon GIRATINA & THE SKY WARRIOR ¥4.80 billion
5 The Magic Hour ¥3.90 billion
6 20th Century Boys—Chapter 1— ¥3.90 billion
7 Doraemon Nobita to midori no kyojinden ¥3.37 billion
8 A Tale of Mari and Three Puppies ¥3.10 billion
9 Detective Conan: Full Score of Fear ¥2.42 billion
10 PACO and the Magical Book ¥2.36 billion
11 Detroit Metal City ¥2.34 billion
12 FLOWERS IN THE SHADOWS ¥1.95 billion
13 The Black Swindler ¥1.72 billion
14 The Glorious Team Batista ¥1.56 billion
15 Shaolin Girl ¥1.51 billion
16 Happy Flight ¥1.33 billion
17 Crayon Shin-chan: Cho arashi o yobu kinpoko no yushya ¥1.23 billion
18 Naruto the Movie: Shippuden kizuna ¥1.16 billion
19 Sanjuro ¥1.15 billion
20 Season of Snow ¥1.04 billion
21 Sand Chronicles ¥1.00 billion
22 HIDDEN FORTRESS: The Last Princess ¥0.93 billion

Chapter 1
26 27
¢ Shochiku Co., Ltd.
In 2008, Shochiku released 16 Japanese films and four imported films
(including jointly distributed films) for a total of 20 films, earning
¥16,015.18 million all together. The box-office takings exceeded the
¥15,670.92 million of 2007 by a small margin of 2.2%. There were just
two films that earned more than ¥1 billion, 10 Promises to My Dog (Inu to
watashi no 10 no yakusoku) (¥1.52 billion) and Kitaro and the Millennium
Curse (Gegege no Kitaro sennen noroiuta) (¥2.34 billion).
One of imported films it distributed, The Golden Compass, chalked
up ¥3.75 billion. Without the hit of this movie, Shochiku could have gone
below the 2007 box-office takings. Yet, this was not necessarily satisfactory
for the company, as it had aimed for results closer to the The Lord of the
Rings series, a blockbuster hit with takings in excess of ¥10 billion.
Shochiku tried to scale down the number of new releases from 2007
because their operational efficiency would improve if major hits emerged
from a smaller number of quality films. Though waste was probably cut
back, no blockbusters like The Lord of the Rings emerged.
Nevertheless,Departures,released in the latter half of the year,raked in
more than ¥3 billion, and the film remained popular even after the turn of
the year following its nomination for the Academy Award for Best Foreign
Language Film. Into 2009, the film swept Japanese film awards, including
the Kinema Junpo Best One and the Japan Academy Award for Best Picture.
In the United States it won the Academy Award for Best Foreign Language
Film. Following the sweep of these awards, the showing of Departures was
expanded to close to 200 screens, with its total box-office takings of ¥5
billion which ultimately surpassed Shochiku’s previous all-time high of
¥4.11 billion for Love and Honor (Bushi no ichibun) . Furthermore, Red
Thread (Akai ito), jointly produced with Fuji Television, turned in an
excellent performance with over ¥1 billion.
¢ Toei Co., Ltd.
In 2008, Toei distributed a total of 19 films—11 films through block-
bookings and eight films through Toei and other free bookings, earning
box-office takings of ¥11,975.61 million, a sharp increase of 40.5% over
¥8,524.44 million in 2007. The largest contributor by far was Partners: The
Movie, which raked in ¥4.44 billion. The only other film that went over ¥1
billion in box-office takings was Climber’s High (¥1.18 billion). Although
such regularly popular films as The Masked Rider (Kamen Rider) series
steadily performed as expected, the performance of Where the Legend Lives
(Maboroshi no Yamataikoku) and Chacha: Tengai no onnna were subdued
with ¥950 million and ¥330 million, respectively.

23 Bleach the Movie the Diamond Dust Rebellion Another Hyorinmaru
¥0.80 billion
24 IKIGAMI:The Ultimate Limit ¥0.80 billion
25 Tamagocchi: Happiest Story in the Universe! ¥0.78 billion
26 The Homeless Student ¥0.68 billion
Others Smile
Wrestling with a Memory
My Darling of the Mountains—Tokuichi in Love— less than ¥0.30 billion
total ¥73.90 billion
title box office
Japanese film 1 Departures ¥3.00 billion
2 Our Mother ¥2.10 billion
3 10 Promises to My Dog ¥1.50 billion
4 Kitaro and the Millennium Curse ¥1.40 billion
5 Great Decisive Battle! The Super 8 Ultra Brothers ¥0.83 billion
6 Midnight Eagle ¥0.77 billion
7 Free & Easy 19 ¥0.34 billion
8 The Taste of Fish ¥0.33 billion
Others Togitatsu no utare: Noda Version
Kekkon shiyo yo
FURU AMERICA NI SODE WA NURASAJI
Panda Diary
CHEER CHEER CHEER!
THE TALE OF BUNSHICHI
The Cherry Orchard—Blossoming
Mr. Tadano’s Secret Mission—From Japan with Love
Akai ito
Tomica Hero Rescue Force The Movie
Bakuso! Tomica Hero Grand Prix
Tomica Hero Rescue Force Bakuretsu Movie—Mach Train o Rescue seyo
RAKUDA
RENJISHI less than ¥0.30 billion
Imported films 1 The Golden Compass ¥3.70 billion
2 The Forbidden Kingdom ¥0.71 billion
Others Closing the Ring
A Chorus Line less than ¥0.30 billion

Chapter 1
2928
¢ Kadokawa Pictures Inc.
Though Kadokawa is a member of the Motion Picture Producers
Association of Japan (EIREN) along with Toho, Shochiku and Toei, it
continued to struggle mainly because it does not operate an expanded
network of cinemas. During 2008, Kadokawa released eight Japanese and
ten imported films for a total of 18 films, with combined box-office takings
of ¥3,611.33 million. Though the 2008 figure was up to 143% of ¥2,525.02
million for 2007, there remains a wide gap between the company and the
Big Three of Toho, Shochiku and Toei.Yet the expectations remain high for
2009 and onward, with a lineup of such films as Forever Enthralled, Zen and
Penguins in the Sky—Asahiyama Zoo (Asahiyama dobutsuen), and a large
budget production, A Sun That Never Sets (Shizumanu taiyo) also getting
under way.
¢ Toho-Towa Co., Ltd.
In 2008, Toho-Towa’s annual box-office takings amounted to ¥14,118.85
million, a sharp increase to 228.7% of ¥6,173.44 million for 2007. The big
leap stemmed chiefly from the commissioned distribution of Universal
Pictures, including Wanted (¥2.5 billion), The Mummy: Tomb of the Dragon
Emperor (¥2.2 billion) and American Gangster (¥1.05 billion).
On top of this came Red Cliff Part 1 (¥5.05 billion), jointly distributed
with Avex Entertainment. The film is a movie adaptation of China’s
“Three Kingdom Saga,” which still enjoys the deep-rooted popularity in
Japan. Although initially there was concern that the naming of “Red Cliff”
does not immediately remind movie fans of “Three Kingdom Saga,” the
film cast aside such concern and earned more than ¥5 billion. Toho-
Towa demonstrated its prowess with this box-office figure by restraining
purchases on its own amid the continuing difficult environment for
imported films in the film market.
title box office
Japanese film 1 Partners: The Movie ¥4.44 billion
2 Climber’s High ¥1.18 billion
3 Where the Legend Lives ¥0.95 billion
4 ONE PIECE THE MOVIE: Episode of Chopper
+The Miracle Winter Cherry Blossom ¥0.91 billion
5 MASKED RIDER KIVA THE MOVIE/GO-ONGERS THE MOVIE ¥0.90 billion
6 YES! PRETTY CURE 5 GO GO! THE MOVIE
—Happy Birthday in Candy Land/others ¥0.79 billion
7 Haru no Kamen rider matsuri ¥0.73 billion
8 Masked Rider Den—O: Final Countdown ¥0.72 billion
9 Chacha: Tengai no onna ¥0.45 billion
10 KIDS ¥0.33 billion
Others Johnen—Sada no Ai
Haru yo koi
Chameleon
Flying Rabbits
Orochi—Blood—
Dear My Cosmo
Flavor of Happiness
Love Fight
Kitaro—20th Anniversary TV Animation less than ¥0.30 billion
title box office
Japanese film 1 Sergeant Keroro The Super Duper Movie 3
—Keroro vs Keroro The Battle of the Sky— ¥0.56 billion
Others Kung Fu Kid
DIVE!!
SAMURAI GANGSTERS
Scenery to Remember
Je t’aime watashi wa kemono
Rashomon—Digital Full Version
Rescue Wings less than ¥0.30 billion
Imported films 1 Eagle Eye ¥1.20 billion
2 Nim’s Island ¥0.46 billion
3 Mr. Magoriem’s Wonder Emporium ¥0.34 billion
Others Black House
Things We Lost in the Fire
May 18
One Missed Call
Kung Fu Dunk
Guantanamero less than ¥0.30 billion

Chapter 1
30 31
¢ Gaga Communications, Inc.
In 2008, Gaga Communications earned ¥7,753.48 million excluding The
Golden Compass jointly distributed with Shochiku and Climber’s High
jointly distributed with Toei, reaching 155% of their ¥5,014.30 million in
2007.
However, its attempt to realize a major synergy effect with Gyao by
joining the USEN Group in December 2004 did not move forward as it
had expected, and Gaga Communications at last in April 2008 announced
its policy to withdraw from the film purchase business and equity
participation in filmmaking. At the same time, USEN Corp. President Uno
Yasuhide established “U’s Film” with his personal funds to take over Gaga
Communications’ film business.
Despite the commotion regarding the company’s future direction,
the fact that it successfully distributed a documentary film, Earth Planet,
with box-office takings of ¥2.4 billion, should be noted for its meticulous
promotion expected only from an independent film distribution. Gaga
Communications also saved its own face by bringing in over ¥1 billion
from John Rambo.
Among Japanese films it distributed, Cyborg, She (Boku no kanojo
wa cyborg) showed a relatively strong performance with revenues of ¥700
million, although 700 Days of Battle: Us vs. the Police (Bokutachi to chuzai-
san no 700 nichi senso) and Snakes and Earrings (Hebi ni piasu) failed to
turn in satisfactory performance.
¢ Asmik Ace Entertainment, Inc.
In 2008, Asmik Ace Entertainment raked in ¥6,029.45 million in annual
box-office takings,raising them to 113% of their ¥5,327.29 million for 2007.
Asmik Ace released seven films independently, two films with Kadokawa
Entertainment and another film with Astaire, for a total of 10 films for the
year, down one from 2007. The commissioned distribution of Dreamworks
films, which Gaga Communications started in 2005, ended with Kung Fu
Panda released in the summer.
Going forward, Dreamworks live-action films will be distributed
by Walt Disney Studios Motion Pictures, Japan and animation films by
Paramount. The much-anticipated Kung Fu Panda fared well with box-
office takings of ¥2 billion, but still failed to reach its target, considering
that in Korea, the film drew over four million movie-goers (the audience
numbers translated into over ¥5 billion at the average admission fee in
Japan).
Silk, a film jointly produced with Italian and Canadian companies,
earned ¥280 million. My Blueberry Nights directed by Wong Kar-Wai
earned ¥550 million through the expanded showing. The Diving Bell and
the Butterfly (Le scaphandre et le papil), released at Cinema Rise, turned in
a steady performance with box-office takings of ¥170 million.
Among Japanese films, Best Wishes for Tomorrow earned ¥600 million,
followed by firm results for The Witch of the West Is Dead with ¥450 million
and Gu Gu, the Cat with ¥260 million.
title box office
Imported films 1 Red Cliff Part 1 ¥5.05 billion
2 Wanted ¥2.50 billion
3 The Mummy—Tomb of the Dragon Emperor ¥2.20 billion
4 American Gangster ¥1.05 billion
5 August Rush ¥0.75 billion
6 Elizabeth: The Golden Age ¥0.65 billion
7 Charlie Wilson’s War ¥0.46 billion
8 Mr. Bean’s Holiday ¥0.45 billion
Others Atonement
Leatherheads
Death Race
Forgetting Sarah Marshall less than ¥0.30 billion
title box office
Japanese film 1 Cyborg, She ¥0.70 billion
Others 700 Days of Battle: Us vs. the Police
Snakes and Earrings less than ¥0.30 billion
Imported films 1 Earth ¥2.40 billion
2 Sex and the City ¥1.70 billion
3 Rambo ¥1.00 billion
4 Journey to the Center of the Earth ¥0.85 billion
5 Next ¥0.45 billion
Others Mister Lonely
Annie Leibovitz—Life Through a Lens
Ninja Cheerleaders
Goodbye Bafana
Hot Fuzz
Semi-pro
Love in the Time of Cholera less than ¥0.30 billion

Chapter 1
32 33
¢ Sony Pictures Entertainment (Japan) Inc. (SPE)
In 2008, Sony Pictures distributed a total of 18 films with annual box-office
takings of ¥6,839.83 million, a severe fall to only 42.0% of their ¥16.37
billion in 2007. Sony Pictures earned ¥14.63 billion in 2006 to set a new
record for its box-office takings in Japan, and renewed the record in the
following 2007.
Computer graphics animation film Surf’s Up raked in ¥330 million,
a far cry from Happy Feet (¥1.45 billion), attesting to the difficulty in
marketing American-made animation films in Japan. The ensuing The
Water Horse (¥220 million), Vantage Point (¥850 million) and 21 (¥450
million) did not fare well either.
In 2008, Sony Pictures also successively released American comics-
based films and CG action hero series, including The Incredible Hulk,
Iron Man and Hancock. Though Hancock turned in a good performance
with box-office takings of ¥3.1 billion, The Incredible Hulk and Iron Man
failed to reach the company’s targets, with ¥190 million and ¥940 million,
respectively. The showing of Ano sora o oboeteru, a Japanese film Sony
Pictures distributed, also proved to be a low-profile screening.
¢ Warner Entertainment Japan Inc.
In 2008, Warner Brothers released a total of 19 films (13 imported films
and six Japanese films), with annual box-office takings of ¥16,392.13
million, an unexpectedly poor showing with only 63.1% of their ¥25.98
billion in 2007. Since the dependence on imported films supplied from the
home country alone would make the Japanese branch office’s management
unstable,Warner Brothers first went into the purchase and local acquisition
businesses on its own, with strong results of films such as HERO (2003/¥5
billion), LOVERS (2004/ ¥2,3 billion) and Windstruck (2005/¥2 billion).
The company then embarked on local production operations by the
Japanese branch office, turning in an impressive performance with Death
Note (2006/ ¥2.85 billion) and L Change the WorLd (2008/ ¥3.1 billion).
As for imported films supplied from the home country, I Am Legend
made a great start with revenues of ¥4.31 billion, whereas The Dark Knight
was rather a disappointment with only ¥1.6 billion.
Sweeney Todd: The Demon Barber of Fleet Street starring Jonny Depp
(¥2.05 billion) firmly stayed over ¥2 billion, while The Bucket List (¥1.35
billion) also fared strongly by drawing viewers in older age brackets,
together with 10,000 BC (¥1.005 billion). Despite high expectations, Speed
Racer was a poor performer with revenues of only ¥400 million.
Among locally produced films, L change the WorLd was a big hit
with box-office takings of ¥3.1 billion, but other Japanese films fell short
of expectations, including Accuracy of Death (¥503 million), ICHI (¥445
million) and Sushi Prince Goes to N.Y. (¥365 million).
title box office
Japanese film 1 The Handsome Suit ¥0.86 billion
2 Best Wishes for Tomorrow ¥0.60 billion
3 The Witch of the West Is Dead ¥0.45 billion
Others Tokyo Only Pictures 2008 (highlights)
Gu Gu, the Cat
Mahou no iRando—teddy bear
Mahou no iRando—Osana Najimi less than ¥0.30 billion
Imported films 1 Kung Fu Panda ¥2.00 billion
2 My Blueberry Nights ¥0.55 billion
Others Silk
Bee Movie
Revolver
Saw 5
JCVD less than ¥0.30 billion
5 Surf’s Up ¥0.33 billion
Others Reign over Me
The Water Horse-Legend of the Deep
The Jane Austen Book Club
Untraceable
Good Luck Chuck
Blue Blue Blue
CJ7
Starship Troopers 3
The Incredible Hulk
Pistol Whipped
Before the Devil Knows You’re Dead
Zombie Strippers less than ¥0.30 billion
Japanese film Ano sora o oboeteru less than ¥0.30 billion
title box office
Imported films 1 Hancock ¥3.10 billion
2 Iron Man ¥0.94 billion
3 Vantage Point ¥0.85 billion
4 21 ¥0.45 billion

Chapter 1
34 35
¢ Twentieth Century Fox (Far East), Inc. (FOX)
In 2008, FOX distributed a total of 16 films for annual box-office takings of
¥7.87 billion, with a sharp fall to only 70.2% of their ¥11.21 billion in 2007.
Three films released at the end of 2007 as winter holiday films all registered
revenues of over ¥1 billion: AVPR: Aliens vs Predator—Requiem (¥1.068
billion), Jumper (¥1.74 billion) and The Happening (¥1.226 billion).
However, Lions for Lambs by Director Robert Redford earned only
¥615 million, although the film featured big stars such as Redford, Tom
Cruise and Meryl Streep, and What Happens in Vegas starring Cameron
Diaz did not do well either with revenues of only ¥609 million, providing
further evidence of Japanese movie-goers’ growing estrangement from
imported films.
¢ Walt Disney Studios Motion Pictures, Japan
In 2008, Walt Disney released six films for annual box-office takings of
¥10.8446 billion, a disastrous outcome of only 56.3% of their ¥19.27 billion
for 2007. However, considering the number of films released during the
year, the results can be described as stable.
Revenues of ¥2.575 billion from National Treasure 2: Book of Secrets
was higher than ¥2.06 billion for National Treasure, the previous film in the
series. Enchanted was a mega-hit with revenues of ¥2.91 billion, strongly
attracting female viewers amid the oft-repeated estrangement from
imported films among Japanese movie fans.
Furthermore, There Will Be Blood released through mini-theater
chains, was not bad either, but The Chronicles of Narnia: Prince Caspian
raked in only ¥3 billion. Given that box-office takings of the previous
film in the series, The Chronicles of Narnia: The Lion, the Witch and the
Wardrobe, were as high as ¥6.88 billion, the decline in revenue from the
latest film was particularly severe.
A CG animation film WALL·E earned ¥3.9 billion.Walt Disney’s plans
to make all Disney animation films as 3D films are likely to give a significant
impact on the digitization of cinemas in Japan.
title box office
Imported films 1 I Am Legend ¥4.30 billion
2 Sweeney Todd—The Demon Barber of Fleet Street ¥5.10 billion
3 The Dark Knight ¥3.20 billion
4 The Bucket List ¥1.35 billion
5 10,000 BC ¥1.00 billion
6 Beowulf ¥0.82 billion
7 Nights in Rodanthe ¥0.44 billion
8 Speed Racer ¥0.40 billion
Others Curse of the Golden Flower
Fool’s Gold, Sisterhood of the Traveling Pants 2
Star Wars: The Clone Wars
Get Smart
Body of Lies less than ¥0.30 billion
Japanese film L’change the WorLd ¥0.31 billion
Accuracy of Death ¥0.50 billion
ICHI ¥0.44 billion
Sushi Prince Goes to N.Y. ¥0.36 billion
Others 28 Weeks Later
Daywatch
The Darjeeling Limited
Juno
Dr. Seuss’ Horton Hears a Who
Shutter
X-Files: I Want to Believe
The Day the Earth Stood Still less than ¥0.30 billion
title box office
Imported Films 1 Jumper ¥1.74 billion
2 The Happening ¥1.22 billion
3 AVPR: Aliens vs Predator—Requiem ¥1.06 billion
4 Lions for Lambs ¥0.61 billion
5 What Happens in Vegas ¥0.60 billion
6 27 Dresses ¥0.37 billion
title box office
Imported Films 1 The Chronicles of Narnia—Prince Caspian ¥3.00 billion
2 Enchanted ¥2.90 billion
3 National Treasure 2: Book of Secrets ¥2.57 billion
4 Meet the Robinsons ¥0.93 billion
Others There Will Be Blood
Wild Hogs less than ¥0.30 billion

Chapter 1
Japan’s Film Industry Statistics 2008
36 37
¢ Paramount Pictures Japan
Paramount Pictures Japan is an entity that came into being in the wake of
the disbandment of UIP. In 2008, Paramount Pictures released six films for
total box-office takings of ¥8,176.14 million.
The commemorative first film, Cloverfield, was reminiscent of The
Blair Witch Project by its shooting with a handheld camera in the fashion of
an independent producer. The film earned ¥1.2 billion with the success of
its attention-grabbing advertising message aimed at the younger audience
that they would risk feeling dizzy by viewing the film.
Indiana Jones and the Kingdom of the Crystal Skull released in June won
the title of the top earner among imported films, with box-office takings of
¥5.71 billion, though it failed to reach the ¥10 billion target. Among films
released through mini-theater chains, the Oscar-winning No Country for
Old Men by the Coen Brothers (jointly distributed with Showgate) raked
in ¥340 million, an all-time high for a film by the Coen Brothers.
Another noteworthy development with Paramount Pictures is its
decision to start the distribution of films by Dreamworks Pictures in Japan
in 2009.
Statistics 2008
title box office
Imported Films 1 Indiana Jones and the Kingdom of the Crystal Skull ¥5.71 billion
2 Cloverfield ¥1.20 billion
3 The Spiderwick Chronicles ¥1.30 billion
4 No Country for Old Men ¥0.34 billion
Others Angus
Thongs & Perfect Snogging
Tropic Thunder less than ¥0.30 billion
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
0
200
400
600
800
230 240 238 251
289 278 278 249 270 282 281 293 287 310
356
417 407 418
467
377 352 302
321 320 333
306
298
362 349 347 335
339
375
404 403 388
697
617
590
553
610 598 611
555 568
644 630 640
622
649
731
821 810 806
Japanese films
rted films
TotNumber of films released al
Impo
0
50
100
150
200
million
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
138.330
125.600
130.720
122.990127.040
119.575
140.719
153.102
144.762
135.390
163.280160.767162.347
170.092
160.453164.277163.193160.491
Cinema admissions
Source: Motion Picture Producers Association of Japan, Inc.

Chapter 1
Japan’s Film Industry Statistics 2008
38 39
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
0
1,000
1,100
1,200
1,300
yen
1,181
1,210
1,252 1,249 1,243 1,245
1,259 1,264 1,263 1,262
1,226 1,224
1,252
1,240 1,235 1,233
1,216 1,214
Average admission fee
0
500
1,000
1,500
2,000
2,500
3,000
Screens showing Japanese films
Screens showing imported films
Screens showing both
Total
507 487 783 919
1,191
1,567 1,723 1,839 1,992 2,225 2,407 2,710 2,915 3,101
1,804 1,744 1,734 1,758 1,776 1,828 1,884
1,993
2,221
2,524 2,585 2,635 2,681
2,825
2,926
3,062
3,221
3,359
522 564 650 706
530 521 483 473 445 427
279 257 231 213 191 152 140 122
718 697 682 673 643 649 656 647
693 647
583 539
458 387 328
200 166 136
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
579 560
337 310
Number of screens
0
50,000
100,000
150,000
200,000
million yen
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
163,378
152,000
163,700
153,590
157,865
148,870
177,197
193,499
182,835
170,862
200,154
196,780
203,259
210,914
198,160
202,553
,198443
194,836
Box office receipts Market share of imported films
Japanese films Hollywood films Non-Hollywood imported films
no. of film box office addmissions no. of film box office addmissions no. of film box office addmissions
releases (yen) releases (yen) releases (yen)
share share share share share share share share share
2000
282 54.3 billion 43 million 81 61.1 billion 48.4 million 281 55.4 billion 43.9 million
43.8% 31.80% 31.80% 12.6% 35.8% 35.77% 43.6% 32.4% 32.42%

2001
44.6% 39.00% 39.04% 10.3% 38.2% 38.22% 45.1% 22.7% 22.72%

2002
293 53.2 billion 43 million 68 93.2 billion 76.2 million 279 50.1 billion 41 million
45.8% 27.10% 27.08% 10.6% 47.4% 47.40% 43.6% 25.5% 25.50%

2003
287 67.1 billion 54 million 93 85 billion 67.9 million 242 51.1 billion 40 million
46.1% 33.00% 33.02% 15.0% 41.8% 41.82% 38.9% 25.2% 25.15%

2004
310 79 billion 64 million 78 89.9 billion 71.8 million 261 41.9 billion 33 million
47.8% 37.50% 37.89% 12.0% 42.6% 42.23% 40.2% 19.9% 19.87%

2005
356 81.7 billion 66 million 81 73 billion 58.9 million 294 43.2 billion 35 million
48.7% 41.30% 41.42% 11.1% 36.9% 36.73% 40.2% 21.8% 21.84%

2006
50.8% 53.20% 54.20% 11.7% 36.3% 35.29% 37.5% 10.5% 10.50%

2007
50.2% 47.70% 47.66% 9.6% 41.4% 41.41% 40.1% 10.9% 10.91%

2008
51.9% 59.50% 59.46% 8.43% 28.90% 28.91% 39.70% 11.62% 11.62%
Source: Motion Picture Producers Association of Japan, Inc. Source: Motion Picture Producers Association of Japan, Inc.

Chapter 2
Co-production System in Japan Development of Co-production System and Its Structure
40 41
most number of European countries.
As such, it can be said that European countries started co-producing
large-scale films to compete with Hollywood films. EuropaCorp founded
in 2001 by Director Luc Besson was established with an aim to produce
films targeting the world market. France has already signed co-production
agreements with a number of countries around the globe and is actively
promoting international co-production of films. The development of the
point system for defining the level and type of involvement of a company
in each project became important for determining the benefits such as
government subsidies for domestic films. Through such developments,
attention has been called to the significance of establishing the definition
of “film nationality” in co-productions.
2. Development of Co-production in East Asia and Japan
This trend for international co-production of films in Europe has become
more popular in East Asia after the return of Hong Kong to China as well
as Korean TV dramas and films craze in Asia. One big turning point in
particular was the Closer Economic Partnership Agreement (CEPA) signed
Development of Co-production System and
Its Structure By Kakeo Yoshio, Executive Director, Kinema Junpo Film Institute
1. Development of Co-production in Europe
In 2001, UNESCO adopted the “UNESCO Universal Declaration on
Cultural Diversity.” This approach was taken in the effort to protect the
unique culture of each country and region in the world of continuing
globalization, which is now dominated by the contents created with a large
budget. At the same time, however, it implicated the tremendous threat
imposed by Hollywood. In Europe, initiative to promote the film industry
“Media Plus” has been launched as a measure to protect its unique culture,
with the objective to maintain, pass on and revitalize the cinematic art
and expression of Europe as its cultural heritage. This project supports the
production of high-quality European films through provision of subsidies
to films that are jointly produced and/or distributed by more than one
European country. At Cannes International Film Festival, for example, EU
Media Award is awarded every year to the film that was screened in the
Chapter 2
Co-production
System in Japan

Chapter 2
42 43
by Hong Kong and China in 2004. This treaty allowed the entry of Hong
Kong films to the Chinese market without being restricted under the
import quota on imported film. As films of any country may enter the
Chinese market through co-production with Hong Kong, the international
co-production of films between Hong Kong and other countries has
increased. Furthermore, the number of co-production films between
China and Hong Kong has also been following an increasing trend. While
the film market in China is still not big at the moment, expectations are
high that it will develop into a gigantic market in the near future together
with its economic development.As such,countries of the Chinese-speaking
regions such as Hong Kong, Taiwan, Singapore and Malaysia are thought
to further enhance their ties with China. In addition, the number of joint
projects between Korea and China is also increasing since the film market
in Korea is small despite its high level of film planning, development and
production skills, as well as because Korea has seen a limit in the Japanese
film market. These governments are also actively providing support for
international co-production of films in their countries. In Korea, Korean
Film Council (KOFIC) actively supports the promotion of Korean films
and co-productions with Korean filmmakers. In China, China Film Co-
Production Corporation serves as a central body for acknowledging
international co-production of films as a national policy.
The Japanese industry, on the other hand, has not been too eager
about international co-productions mostly because it is the second largest
film market in the world. In recent years, however, Japan has shifted its gear
as it can be seen in UNIJAPAN initiative J-Pitch, a support program for
international co-production launched in 2006 with the support of Japan’s
Ministry of Economy, Trade and Industry. J-Pitch seeks film projects with
international co-production potential and helps Japanese film producers
participate at international project markets including among all those in
Cannes, Pusan and Berlin.
The interest in international co-production of films has been growing
gradually in Japan partly because of the support offered by the government.
However, the stance taken by the Japanese film industry for co-production
is generally one of the following two. Major film companies are showing a
more conservative stance as they maintain a stable share in the domestic
market and do not have much need to venture out into other overseas
markets.Inaddition,theyarepassiveabouttheinternationalco-productions
as there are few successful cases of international co-productions that Japan
was involved in as well as skeptical about the credibility of the international
co-production project partners.
On the contrary, the producers with projects of strong storyline
and companies for independent films that face difficulty in the domestic
market are more eager for international co-production of films. The areas
and genres of involvement is also starting to expand, including investment
to the directors of artistic films such as Jia Zhang Ke (China), Abbas
Kiarostami (Iran) and Kim Ki-Duk (Korea), as well as entertainment films
such as A Battle of Wits and Red Cliff.
3. Trying to Define International Co-production
There is no clear-cut definition of international co-production in Japan.
J-Pitch program recognizes projects as international co-productions if
there is the participation of more than one country to invest in the film
and the participation of a Japanese producer in the project. In Japan
internationalco-productionstakeonvariousformsandanumberof factors
must be considered and included when creating its definition.These factors
would be for instance, co-production of several countries, investment of
several countries in a well-known director or in a project which surely has
a potential of becoming a success. In the past, Oshima Nagisa directed In
the Realm of the Senses with the investment of a French company. Both the
cast and crew were Japanese, but the film nationality was French. Oshima
has since directed a number of international co-productions including
Max mon amour and Merry Christmas Mr. Lawrence. Similarly, Kurosawa
Akira has also directed such works as Dersu Uzala, Ran and Dreams with
investments from several countries. These are cases of international capital
investment to allow the esteemed directors of Japan to shoot films, but
there are many other works that have been produced as international co-
production.
4. Works Recognized as Co-production in Japan
Three Patterns and Recent Cases
¡Pattern 1: Producers, cast and crew from several countries are involved in a film
invested by those countries.
list of recent major works
A Battle of Wits 2006; invested by China, Hong Kong, Korea and Japan;
cast includes Chinese, Korean and Hong Kong actors
Crossing Over 2007; invested by China and Japan;
cast includes Nakai Kiichi and Miao Pu
Dream 2008; invested by Korea and Japan;
cast includes Odagiri Joe
hana kage 2007; invested by Japan and Korea;
cast includes Kim Rae Won and Yamamoto Mirai
Last Life in the Universe 2003; invested by Thailand, the Netherlands, France, Singapore
and Japan; starring Asano Tadanobu

Chapter 2
44 45
¡Pattern 2: Producers, cast and crew from several countries are involved in a film
produced by a single country.
¡Pattern 3: A foreign country investing in a Japanese film or a Japanese company
investing in a foreign film.
5. Challenges in Co-producing with Japan
1) Film Nationality
The more common international co-production of films becomes, the
more ambiguous the film nationality is. It is certain that the definition
of international co-production of films has not yet been determined in
Japan as public assistance and incentives for film production remain low,
together with the fact that Japan has signed an agreement for international
co-productions only with one country thus far (Japan and Canada signed
a co-production agreement in 1994). Nevertheless, the international co-
production projects have been actively promoted and made possible in
Japan from the standpoint of investment by production companies and
for the sake of furthering the promotion of international exchange in the
field of film industry.
2) Japanese Production System
In recent years, a group of companies referred to as the production
committee that is comprised of several investors produces majority of the
films in Japan. After its peak in the first half of the 1960s, the Japanese film
industry has been marking a long downward trend. At the time, five major
companies (Shochiku, Toho, Toei, Daiei Motion Picture and Nikkatsu) ran
the film industry, and these companies had their own studios and box-
office network of various sizes. In other words, these companies controlled
the film business. However, as economic downturn prolonged and entered
the 1970s, the most costly part of the film business, the production section
was separated from the rest of the filming process and outsourced. That is
how a film production came to be invested by several companies.
Once hitting the 1980s, Japan entered its bubble economy and
The Longest Night in Shanghai 2007; invested by Japan and China;
cast includes Motoki Masahiro and Vicki Zhao
Plastic City 2008; invested by China, France, Brazil and Japan;
cast includes Odagiri Joe
Red Cliff 2008; invested by Japan, China, Korea, US and Taiwan;
cast includes Kaneshiro Takeshi and Nakamura Shido
Silk 2007; invested by Italy, Canada, France, UK and Japan;
cast includes Michael Pitt, Keira Knightley and Yakusho Koji
Tea Fight 2008; invested by Japan and Taiwan;
cast includes Kagawa Teruyuki, Toda Erika and Vic Chow
TOKYO! 2008; invested by France, Korea and Japan;
cast includes Japanese actors
Virgin Snow 2006; invested by Japan and Korea;
cast includes Miyazaki Aoi and Lee Jun-gi
2009: Lost Memories 2001; Korean film;
starring Jang Dong Gun and Nakamura Toru
CAFE LUMIERE 2003; Japanese film; with Taiwanese director
Cyborg, She 2008; Japanese film; with Korean director
Devils on the Doorstep 2000; Chinese film; directed by Jiang Wen;
cast includes Kagawa Teruyuki
The Grudge 2004; US remake of a Japanese film;
cast and crew include Japanese producer, director and actors
The Grudge 2 2006; US remake of a Japanese film;
cast and crew include Japanese producer, director and actors
The Last Samurai 2003; Hollywood film;
cast includes Watanabe Ken and Sanada Hiroyuki
Letters from Iwo Jima 2006; Hollywood film; cast includes Japanese actors
Nuan 2003; Chinese film; directed by Huo Jianqi;
cast includes Kagawa Teruyuki
One Missed Call Final 2006; Japanese film; with Korean director and crew
Rikidozan: A Hero Extraordinary 2004; Korean film; starring Sol Kyung-gu and Nakatani Miki
Gu Gu, the Cat 2008; Japanese film; with Korean capital
Marie Antoinette 2006; Japanese film; with US and French capital
The MOURNING FOREST 2007; Japanese film; with French capital
ONE MISSED CALL 2008; US remake of a Japanese film;
with Japanese capital
Over-the-Shoulder Lover 2007; Korean film; with Japanese capital
The Ring 2002; US remake of a Japanese film; with Japanese capital
Tokyo Sonata 2008;
Japanese film; with the Netherlandish and Hong Kong capital

Chapter 2
46 47
companies from various industries started to invest in films. However,
several companies investing in a film at the time was to avert risk rather
than to take advantage and supplement each other’s skills. This trend for
a production committee started to carry a different purpose when film
production investment even by several companies was facing serious
challenges after the burst of the bubble in 1989. It started to be comprised
of companies that would financially gain from its participation. The film
company would theatrically release the film, the publisher would publish
the original story, the video company would sell the video of the film, the
advertisement company would publicize as well as TV and radio networks
would broadcast or advertise the film. The said members advertised the
film using their own medium, creating a synergetic effect. Today the
production committees comprised of such members are involved in the
production of most of the films from major to independent ones. As such,
a production committee consisting of major film companies, TV networks
and publishers that can utilize their networks and advertisement skills, in
most cases would lead the film it produces to a greater success. On the
other hand, the films produced out of this system can hardly become great
hits.
The administrative company and other participating companies of
the production committee carry out film production through consensual
decision-making. The production committee is the copyright holder of the
film, and sales are divided among its members according to the investment
ratio. For example, TV networks and video companies that are members
of the production committee must purchase the right to broadcast and the
right for video distribution from the production committee respectively.
The TV networks and video companies then receive dividends based on
their investment ratio from the right fees they paid earlier.
The advantage of forming a production committee is that companies
with strong networks and financial capability come together and multiply
their resources.On the other hand,one of the disadvantages of a production
committee is that decision-making takes time and lacks the capacity to
flexibly respond to unexpected problems.
Japanese production committees have had issues when engaged in
an international co-production of films with overseas companies. This is
because when the producer of the partner company from overseas and the
producerof themanagingcompanyrepresentingtheproductioncommittee
jointly produce a film, the approval of the production committee must be
obtained for any changes made in the storyline, cast, etc. The producer of
the managing company holds a decision-making power to some degree,
but approval of the production committee must be obtained for major
changes. In this respect, the production committee system practiced in
Japan faces difficulties when producing a film with a partner company
from overseas. For example, in Korea and China the director on the set has
a strong decision-making power, or in Europe and the US the producer has
a strong decision-making power.

Chapter 2
Co-production System in Japan J-Pitch: Support Program for International Co-production
48 49
J-Pitch: Support Program for International
Co-production
J-Pitch is an international co-production support program administered
by UNIJAPAN and the Ministry of Economy, Trade and Industry (METI),
initiated in April, 2006 by the support of METI.
J-PitchwaslaunchedasaninitiativesupportingtheJapaneseproducers
developing international co-productions and enabling Japanese films to
compete in the international market. Japanese producers with projects
that have co-production potential are supported by J-Pitch through the
arrangement of collaborative meetings, conferences, and other related
activities held both within Japan and at contents markets worldwide.
J-Pitch’s remit is: to identify and develop film projects that could be
completed as international co-productions or which have a high possibility
of success in the international market; to foster an exchange of ideas and
projectsbetweenJapaneseproducersandtheircounterpartsinotherpartsof
the world; to build relationships with experienced international producers,
who could act as consultants for the projects and for the building of links
with established producer training programs in other parts of the world.
1. J-Pitch Activities
To foster the networking and interaction between Japanese and overseas
film producers and to promote the development of Japanese content and
film industry, J-Pitch carries out the following activities.
1) Participations at the International Project Markets
In cooperation with the international project markets, J-Pitch organizes
business meetings where the Japanese producers and Japan based
producers are given an opportunity to directly introduce their projects
to the overseas producers. J-Pitch holds open entries for partnered
markets. To selected producers J-Pitch also covers expenses for overseas
travel and promotional materials translation, and arranges interpreters, if
necessary. In 2009, J-Pitch works in partnership with eight project markets
and networking venues which includes Cannes (Producers Network),
Shanghai (Co-production Film Pitch and Catch), Paris (Paris Project),
Toronto (International Financing Forum), Pusan (Pusan Promotion Plan),
Rotterdam (CineMart), Berlin (Co-Production Market), and Hong Kong
(Hong Kong-Asia Film Financing Forum).
Among the projects which were submitted through J-Pitch so far, the
following projects entered official selection:
Shanghai International Film Festival,
Co-production Film Pitch and Catch (Co-FPC)
Funahashi Atsushi Déjà Vu Cities Village Productions (2008)
Iseki Satoru Li-liang Tara Contents Inc. (2008)
Fushimi Tomoko Seiroki Running Beagle LLC. (2008)
Paris Cinema International Film Festival,
Paris Project
Ichiyama Shozo Déjà Vu Cities Office Kitano Inc. (2008)
Sonoki Miyako DAZAI Chase Film International (2007)
Toronto International Film Festival,
International Financing Forum (IFF)
Sato Hideaki Sushi Man Dream One Inc. (2008)
Sakahara Atsushi Kyoko Good People Inc. (2008)
Tokikawa Toru Single Hit Rivertime Entertainment Ltd. (2008)
Suzuki Akihiro School Girl in A Cage S.I.G. Co., Ltd. (2008)
Takeyama Masatoshi Samurai Interpreter WAO World Co., Ltd. (2008)

Chapter 2
Co-production System in Japan J-Pitch: Support Program for International Co-production
50 51
Pusan International Film Festival,
Pusan Promotion Plan (PPP)
Ono Kousuke Forget-Me-Not (Pusan Award)
Wa Entertainment (2008)
Sugiura Mikio Leaving the Peninsula Behind
Be Wild Co., Ltd. (2008)
Sadai Yuji My Back Page Bitters End, Inc. (2008)
Uemura Maki On Next Sunday d-ritghs Inc. (2007)
Hirasawa Sho Room of Dreams (Cineclick Asia Award)
PaxEterna Limited (2007)
International Film Festival Rotterdam,
CineMart
Sadai Yuji My Back Page Bitters End, Inc. (2008)
Hirasawa Sho Room of Dreams PaxEterna Limited (2007)
Berlin International Film Festival,
Co-Production Market
Kito Yukie Seasons of Tokyo Entertainment Farm, Inc. (2008)
Ochiai Atsuko Eternal Forest Supersaurus (2007)
Hong Kong International Film Festival,
Hong Kong - Asia Film Financing Forum (HAF)
Iizuka Eiju AMARIKAN NHK Enterprises, Inc. (2008)
Naito Yuko And Protect, Protected (Paris Project Award)
Kumie Inc. (2008)
Kito Yukie DOOR Entertainment Farm Inc. (2008)
Yamagami Tetsujiro Time for Children SIGLO., Ltd. (2008)
Jennifer Fukasawa Gensenkan Hideon Productions (2007)
Mameoka Ryosuke Tsutenkaku IMJ Entertainment Corp. (2007)
Kito Yukie Tokyo Sonata Entertainment Farm Inc. (2006)
2) Organizing Business Meetings and Pitching Trainings
As of year 2009, J-Pitch organizes the training sessions conducted by
pitching advisors to the Japanese producers who may be potential
candidates of J-Pitch. The producers who attend to present their projects
at the overseas project markets are also invited to participate. J-Pitch aims
not only to enhance the realization of their projects but also to provide
global pitching technique to Japanese producers. During fiscal year 2009,
J-Pitch will hold business meetings in cooperation with overseas producer
assigned agencies or organizations.
3) Open Seminars
J-Pitch organizes seminars that provide information necessary for the
realization of the international co-productions. The seminars focus on
topics such as law, finance, production, management including the entry
to project markets, international film festivals and film markets. In 2008,
J-Pitch held a talk session, Japanese Producers on the Move—Three Female
Producers in International Market, with three female producers whose
international co-productions entered the Cannes International Film
Festival 2008 and a roundtable, Project Market in the World—What’s New?,
gathering the representatives of major overseas project markets.
4) J-Pitch Website
As of April 2008, J-Pitch has been managing its official website (http//j-
pitch.jp) to announce the releases of the entries to the overseas project
markets and beneficial news on international co-productions. The website
also posts information on overseas support schemes for co-production,
releases data on Japanese film industry and provides access to bilingual
Japanese Film Date Base (JFDB) for overseas producers. In 2008, J-Pitch
succeeded in collecting the information on the state of film industry and
co-production supporting system on three major countries in Europe,
six countries in Asia, and Canada working in cooperation with overseas
organizations which include: European Audiovisual Observatory, CNC
and Film France, UK Film Council, Telefilm Canada, KOFIC, New Zealand
Film Commission, Singapore Film Commission, The Federation of
National Film Associations of Thailand (FNFAT) among others.

The Guide to Japanese Film Industry & Co-Production (2009)

The Guide to Japanese Film Industry & Co-Production (2009)

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