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The Guide to Japanese Film Industry & Co-Production

2009

UNIJAPAN

Contents

About this guide .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Foreword .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Chapter 1 Japans 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

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

Overview of the Japanese Box-office for Year 2008 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Japanese Films Exceed Imported Films .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Further Polarization between Majors and Independents .. . . . . . . . . . . . . . . . . . . . . . . . 3. Box-office of Japanese Films .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Box-office of Imported Films .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18 18 19 20 22

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

Major Distributors.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Statistics 2008.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

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

Chapter 2 Co-production System in Japan Development of Co-production System and Its Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Development of Co-production in Europe .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Development of Co-production in East Asia and Japan .. . . . . . . . . . . . . . . . . . . . . . . . . 3. Trying to Define International Co-production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Works Recognized as Co-production in Japan
40 40 41 43

Japanese Film Database (JFDB).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Content of JFDB.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Japan Location Database (JLDB).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Some Useful Links .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

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

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

This is the era where everybody creates.


Patti Smith A Rockn 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 Japans 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 Japans film community to you!
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 coproductions 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.

UNIJAPAN J-Pitch Team

Chapter 1

Postwar Japanese Film Industry and Development

Postwar Japanese Film Industry and Development

Japans Film Industry


6

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 dOro) 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.
title (year) film festival / award director

Rashomon (51) Gate of Hell (Jigokumon) (54) Twenty-Four Eyes (Nijushi no hitomi) (54) Musashi Miyamoto (Miyamoto Musashi) (55) The Story of Pure Love (Junai monogatari) (58) Rickshaw Man (Muhomatsu no issho) (58)

Venice Film Festival / Golden Lion Cannes Film Festival / Palme dOr Golden Globes / Golden Globe Award for Best Foreign Film Academy Awards / Best Foreign Language Film Berlin Film Festival / Best Director Award Venice Film Festival / Golden Lion

KUROSAWA Akira KINUGASA Teinosuke KINOSHITA Keisuke INAGAKI Hiroshi IMAI Tadashi INAGAKI Hiroshi

Chapter 1 Japans Film Industry

Postwar Japanese Film Industry and Development

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 were American 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:
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 (Pais) [September 6, 1949]

In 1951, the Treaty of Peace with Japan was signed in San Francisco, and Japan was to restore its sovereignty the following year, on April 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, 8

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 Japans 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, renamed to Foreign Film Importer-Distributors Association of 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 boxoffice 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.

Chapter 1 Japans Film Industry

Postwar Japanese Film Industry and Development

Number of audience 1957 1.0989 billion people 1958 1.1275 billion people 1959 1.0881 billion people 1960 1.0144 billion people Number of cinemas 1958 7,067 facilities 1959 7,400 facilities 1960 7,457 facilities 1961 7,231 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.

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 The Seventh Seal (Det Sjunde Inseglet) 1963 Ingmar Bergman Shoot the Piano Player (Tirez sur le pianiste) 1963 Francois Truffaut The Long Absence (Une aussi longue absence) 1964 Henri Colpi Last Year at Marienbad (LAnn dernire Marienbad) 1964 Alain Resnais 1st [ 6th [ 9th [ 1st [ 3rd [

[ rank for Kinema Junpo Top Ten (imported films)

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. 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 Manual of Ninja Martial Arts (Ninja bugei-cho) 1967 Oshima Nagisa The Human Bullet: Human Guinea Pigs (Nikudan) 1968 Okamoto Kihachi Death by Hanging (Koshikei) 1968 Oshima Nagisa Nanami: The Inferno of First Love (Hatsukoi: Jigoku-hen) 1968 Hani Susumu Double Suicide (Shinju ten no Amijima) 1969 Shinoda Masahiro Boy (Shonen) 1969 Oshima Nagisa 2nd [ 10th [ 2nd [ 3rd [ 6th [ 1st [ 3rd [

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 10

[ 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 11

Chapter 1 Japans Film Industry

Postwar Japanese Film Industry and Development

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.

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.

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 12

13

Chapter 1 Japans Film Industry

Postwar Japanese Film Industry and Development

Total number of screens


year total no. of screens no. of multiplexes percentage

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

1,884 1,993 2,221 2,524 2,585 2,635 2,681 2,825 2,926 3,062 3,221 3,359

157 267 760 1,123 1,259 1,396 1,533 1,766 1,954 2,230 2,454 2,659

8.3 13.4 34.2 44.5 48.7 53.0 57.2 62.5 66.8 72.8 76.2 79.2

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.

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 14

15

Chapter 1 Japans Film Industry

Postwar Japanese Film Industry and Development

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.

16

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Chapter 1 Japans Film Industry

Overview of the Japanese Box-office for Year 2008

Overview of the Japanese Box-office for Year 2008


By Kakeo Yoshio, Executive Director, Kinema Junpo Film Institute

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 Climbers 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 largebudget Japanese films; and (4) Planning abilities of independents are waning.

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) 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), Id 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 19

18

Chapter 1 Japans Film Industry

Overview of the Japanese Box-office for Year 2008

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.

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. Shochikus Departures (3 billion), which won Kinema Junpos 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.

2008 Distribution per company (Japanese Films, Imported Films)


company box office per year [share] no. of film releases [share]

Toho Warner Brothers Shochiku Toho-Towa Toei Walt Disney Paramount Pictures 20th Century Fox Gaga Communications Sony Pictures Asmik Ace Kadokawa Pictures Others
total

73.9 billion 16.4 billion 16.1 billion 14.1 billion 11.9 billion 10.8 billion 8.2 billion 7.9 billion 7.8 billion 6.8 billion 6.0 billion 3.6 billion 11.3 billion 194.8 billion

[37.9%] [8.4%] [8.3%] [7.2%] [6.1%] [5.6%] [4.2%] [4.1%] [4.0%] [3.5%] [3.1%] [1.8%] [5.8%] [100%]

29 19 20 14 19 6 6 16 16 18 10 18 615 806

[3.6%] [2.4%] [2.5%] [1.7%] [2.4%] [0.7%] [0.7%] [2.0%] [2.0%] [2.2%] [1.3%] [2.2%] [76.3%] [100%]

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). 21

Source: Kinema Junpo Film Institute

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. The number of films released in 2008 came to 418, slightly up 11 from 20

Chapter 1 Japans Film Industry

Overview of the Japanese Box-office for Year 2008

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.

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, middlebudget 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.

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.

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 by Wong Kar-Wai and released by Asmik Ace Entertainment was one of strong performers with box-office takings of 550 million. 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 23

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 boxoffice 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 22

Chapter 1 Japans Film Industry

Major Distributors

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 Nims 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.

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 SmileHoly Night of Miracles (Smile: Seiya no kiseki), Gachi Boy, My Darling of the MountainsTokuichi in Love (Yama no anata Tokuichi no koi), and The Homeless Student (Homeless chugakusei) failing to make the rankings of 300 million or more.

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 Lees 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.

title Japanese film

box office

1 Ponyo on the Cliff by the Sea 2 BOYS OVER FLOWERS the movie 3 Suspect X 4 Pokmon GIRATINA & THE SKY WARRIOR 5 The Magic Hour 6 20th Century Boys Chapter 1 7 Doraemon Nobita to midori no kyojinden 8 A Tale of Mari and Three Puppies 9 Detective Conan: Full Score of Fear 10 PACO and the Magical Book 11 Detroit Metal City 12 FLOWERS IN THE SHADOWS 13 The Black Swindler 14 The Glorious Team Batista 15 Shaolin Girl 16 Happy Flight 17 Crayon Shin-chan: Cho arashi o yobu kinpoko no yushya 18 Naruto the Movie: Shippuden kizuna 19 Sanjuro 20 Season of Snow 21 Sand Chronicles 22 HIDDEN FORTRESS: The Last Princess

15.00 billion 7.70 billion 4.90 billion 4.80 billion 3.90 billion 3.90 billion 3.37 billion 3.10 billion 2.42 billion 2.36 billion 2.34 billion 1.95 billion 1.72 billion 1.56 billion 1.51 billion 1.33 billion 1.23 billion 1.16 billion 1.15 billion 1.04 billion 1.00 billion 0.93 billion

24

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Chapter 1 Japans Film Industry

Major Distributors

23 Bleach the Movie the Diamond Dust Rebellion Another Hyorinmaru 0.80 billion 24 IKIGAMI:The Ultimate Limit 25 Tamagocchi: Happiest Story in the Universe! 26 The Homeless Student 0.80 billion 0.78 billion 0.68 billion
title Japanese film box office

1 Departures 2 Our Mother 3 10 Promises to My Dog 4 Kitaro and the Millennium Curse 5 Great Decisive Battle! The Super 8 Ultra Brothers 6 Midnight Eagle 7 Free & Easy 19 8 The Taste of Fish

3.00 billion 2.10 billion 1.50 billion 1.40 billion 0.83 billion 0.77 billion 0.34 billion 0.33 billion

Others Smile Wrestling with a Memory My Darling of the MountainsTokuichi in Love


total

less than 0.30 billion 73.90 billion


Source: Kinema Junpo Film Institute

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 Shochikus 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.

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. Tadanos 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 3.70 billion 0.71 billion less than 0.30 billion 16.00 billion
Source: Kinema Junpo Film Institute

Imported films 1 The Golden Compass

2 The Forbidden Kingdom

Others Closing the Ring A Chorus Line


total

Toei

Co., Ltd.
In 2008, Toei distributed a total of 19 films 11 films through blockbookings 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 Climbers 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.

26

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Chapter 1 Japans Film Industry

Major Distributors

title Japanese film

box office

title Japanese film 1 Sergeant Keroro The Super Duper Movie 3 Keroro vs Keroro The Battle of the Sky

box office

1 Partners: The Movie 2 Climbers High 3 Where the Legend Lives

4.44 billion 1.18 billion 0.95 billion 0.91 billion 0.90 billion 0.79 billion 0.73 billion 0.72 billion 0.45 billion 0.33 billion

0.56 billion

4 ONE PIECE THE MOVIE: Episode of Chopper +The Miracle Winter Cherry Blossom 5 MASKED RIDER KIVA THE MOVIE/GO-ONGERS THE MOVIE 6 YES! PRETTY CURE 5 GO GO! THE MOVIE Happy Birthday in Candy Land/others 7 Haru no Kamen rider matsuri 8 Masked Rider Den O: Final Countdown 9 Chacha: Tengai no onna 10 KIDS JohnenSada no Ai Haru yo koi Chameleon Flying Rabbits Orochi Blood Dear My Cosmo Flavor of Happiness Love Fight Kitaro20th Anniversary TV Animation

Others

Kung Fu Kid DIVE!! SAMURAI GANGSTERS Scenery to Remember Je taime watashi wa kemono Rashomon Digital Full Version Rescue Wings

less than 0.30 billion 1.20 billion 0.46 billion 0.34 billion

Imported films 1 Eagle Eye

2 Nims Island 3 Mr. Magoriems Wonder Emporium Black House Things We Lost in the Fire May 18 One Missed Call Kung Fu Dunk Guantanamero

Others

Others

less than 0.30 billion 3.61 billion


Source: Kinema Junpo Film Institute

total

less than 0.30 billion 11.90 billion


Source: Kinema Junpo Film Institute

total

Toho-Towa

Co., Ltd.
In 2008, Toho-Towas 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 Chinas 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. TohoTowa 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.

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 SkyAsahiyama Zoo (Asahiyama dobutsuen), and a large budget production, A Sun That Never Sets (Shizumanu taiyo) also getting under way.

28

29

Chapter 1 Japans Film Industry

Major Distributors

title Imported films 1 Red Cliff Part 1

box office

title Japanese film

box office

5.05 billion 2.50 billion 2.20 billion 1.05 billion 0.75 billion 0.65 billion 0.46 billion 0.45 billion

1 Cyborg, She

0.70 billion less than 0.30 billion 2.40 billion 1.70 billion 1.00 billion 0.85 billion 0.45 billion

2 Wanted 3 The MummyTomb of the Dragon Emperor 4 American Gangster 5 August Rush 6 Elizabeth: The Golden Age 7 Charlie Wilsons War 8 Mr. Beans Holiday Atonement Leatherheads Death Race Forgetting Sarah Marshall

Others 700 Days of Battle: Us vs. the Police Snakes and Earrings
Imported films 1 Earth

2 Sex and the City 3 Rambo 4 Journey to the Center of the Earth 5 Next Mister Lonely Annie Leibovitz Life Through a Lens Ninja Cheerleaders Goodbye Bafana Hot Fuzz Semi-pro Love in the Time of Cholera

Others

less than 0.30 billion 14.10 billion


Source: Kinema Junpo Film Institute

total

Others

less than 0.30 billion 7.80 billion


Source: Kinema Junpo Film Institute

Gaga

Communications, Inc.
In 2008, Gaga Communications earned 7,753.48 million excluding The Golden Compass jointly distributed with Shochiku and Climbers 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 Us Film with his personal funds to take over Gaga Communications film business. Despite the commotion regarding the companys 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 chuzaisan no 700 nichi senso) and Snakes and Earrings (Hebi ni piasu) failed to turn in satisfactory performance.

total

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 boxoffice 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. 31

30

Chapter 1 Japans Film Industry

Major Distributors

title Japanese film

box office

5 Surfs Up Reign over Me The Water Horse-Legend of the Deep The Jane Austen Book Club Untraceable Good Luck Chuck Blue Blue Blue C J7 Starship Troopers 3 The Incredible Hulk Pistol Whipped Before the Devil Knows Youre Dead Zombie Strippers

0.33 billion

1 The Handsome Suit 2 Best Wishes for Tomorrow 3 The Witch of the West Is Dead Tokyo Only Pictures 2008 (highlights) Gu Gu, the Cat Mahou no iRandoteddy bear Mahou no iRandoOsana Najimi

0.86 billion 0.60 billion 0.45 billion

Others

less than 0.30 billion 2.00 billion 0.55 billion

Imported films 1 Kung Fu Panda

2 My Blueberry Nights Silk Bee Movie Revolver Saw 5 JCVD

Others

Others

less than 0.30 billion less than 0.30 billion 6.83 billion
Source: Kinema Junpo Film Institute

Japanese film Ano sora o oboeteru

less than 0.30 billion 6.00 billion


Source: Kinema Junpo Film Institute

total

total

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 comicsbased 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 companys 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 offices 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). 33

title Imported films 1 Hancock

box office

3.10 billion 0.94 billion 0.85 billion 0.45 billion

2 Iron Man 3 Vantage Point 4 21

32

Chapter 1 Japans Film Industry

Major Distributors

title Imported films 1 I Am Legend

box office

4.30 billion 5.10 billion 3.20 billion 1.35 billion 1.00 billion 0.82 billion 0.44 billion 0.40 billion

2 Sweeney ToddThe Demon Barber of Fleet Street 3 The Dark Knight 4 The Bucket List 5 10,000 BC 6 Beowulf 7 Nights in Rodanthe 8 Speed Racer Curse of the Golden Flower Fools Gold, Sisterhood of the Traveling Pants 2 Star Wars: The Clone Wars Get Smart Body of Lies

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 7.90 billion


Source: Kinema Junpo Film Institute

total

Others
Japanese film

Walt less than 0.30 billion 0.31 billion 0.50 billion 0.44 billion 0.36 billion 16.40 billion
Source: Kinema Junpo Film Institute

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 WALLE earned 3.9 billion. Walt Disneys plans to make all Disney animation films as 3D films are likely to give a significant impact on the digitization of cinemas in Japan.

Lchange the WorLd

Accuracy of Death ICHI Sushi Prince Goes to N.Y.


total

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 PredatorRequiem (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.

title Imported Films 1 The Chronicles of NarniaPrince Caspian

box office

3.00 billion 2.90 billion 2.57 billion 0.93 billion less than 0.30 billion 10.80 billion
Source: Kinema Junpo Film Institute

2 Enchanted 3 National Treasure 2: Book of Secrets 4 Meet the Robinsons Others There Will Be Blood Wild Hogs

title Imported Films 1 Jumper 2 The Happening 3 AVPR : Aliens vs Predator Requiem 4 Lions for Lambs 5 What Happens in Vegas 6 27 Dresses

box office 1.74 billion 1.22 billion 1.06 billion 0.61 billion 0.60 billion 0.37 billion

total

34

35

Chapter 1 Japans Film Industry

Statistics 2008

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
Number of films released
Tot al Imported films Japanese films 821 800 697 617 600 590 610 553 598 611 555 568 375 467 400 377 321 302 320 333 306 362 298 349 347 335 339 644 630 640 622 649 404 403 388 731 810 806

352

200 230 240 238 251 289 278 278 249 270 282 281 293 287 310

356

417

407

418

title Imported Films 1 Indiana Jones and the Kingdom of the Crystal Skull

box office

5.71 billion 1.20 billion 1.30 billion 0.34 billion

2 Cloverfield 3 The Spiderwick Chronicles 4 No Country for Old Men

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Motion Picture Producers Association of Japan, Inc.

Others Angus Thongs & Perfect Snogging Tropic Thunder


total

Cinema admissions
million 200 170.092 163.280 160.767 162.347 160.453164.277163.193160.491 144.762 135.390

less than 0.30 billion 8.20 billion


Source: Kinema Junpo Film Institute

153.102 150 138.330 140.719 130.720 125.600 122.990127.040119.575

100

50

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Motion Picture Producers Association of Japan, Inc.

36

37

Chapter 1 Japans Film Industry

Statistics 2008

Average admission fee


yen 1,300 1,259 1,264 1,263 1,262 1,252 1,249 1,243 1,245 1,181 1,200 1,210

Number of screens

Total Screens showing both Screens showing imported films Screens showing Japanese films 2,825 2,635 2,681 2,524 2,585 2,221 3,221 2,926 3,062 3,359

3,000 1,252 1,226 1,224 1,240 1,235 1,233

1,216 1,214

2,500 1,993

2,000

1,828 1,884 1,804 1,744 1,734 1,758 1,776 507 487 522 564 650 706 783

1,100

1,500

919

1,191

3,101 1,567 1,723 1,839 1,992 2,225 2,407 2,710 2,915

1,000 1,000 500

718

697

682

673

643

649

656

647

693

647

583 279

539 257

458 231

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Motion Picture Producers Association of Japan, Inc.

166 136 140 122 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 445 427 337 310 213 191
Source: Motion Picture Producers Association of Japan, Inc.

579

560

530

387

521

483

473

328

200 152

Box office receipts


million yen 200,000 210,914 202,553 203,259 200,154 , 198443 198,160 196,780 193,499 194,836 182,835 177,197 170,862

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 (yen) (yen) (yen) releases releases releases share share share share share share share share share 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% 281 78.1 billion 64 million 65 76.5 billion 62.4 million 284 45.4 billion 37.1 million 44.6% 39.00% 39.04% 10.3% 38.2% 38.22% 45.1% 22.7% 22.72% 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% 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% 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% 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% 417 107.9 billion 89 million 96 73.7 billion 57.9 million 308 21.2 billion 17 million 50.8% 53.20% 54.20% 11.7% 36.3% 35.29% 37.5% 10.5% 10.50% 407 94.6 billion 77 million 78 82.1 billion 67.5 million 325 21.6 billion 17 million 50.2% 47.70% 47.66% 9.6% 41.4% 41.41% 40.1% 10.9% 10.91% 417 115.8 billion 95 million 68 56.3 billion 46.4 million 320 22.6 billion 18.6 million 51.9% 59.50% 59.46% 8.43% 28.90% 28.91% 39.70% 11.62% 11.62%
Source: Kinema Junpo Film Institute

150,000

163,700 163,378 157,865 153,590 152,000 148,870

100,000

50,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Motion Picture Producers Association of Japan, Inc.

38

39

Chapter 2
Chapter 2 Co-production System in Japan

Development of Co-production System and Its Structure

Co-produ ction System in Japan


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 40 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 41

Chapter 2 Co-production System in Japan

Development of Co-production System and Its Structure

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 CoProduction 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 2006with the support of Japans Ministry of Economy, Trade and Industry. J-Pitch seeks film projects with international co-production potential andhelps Japanese film producers participateat internationalproject 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. In addition, they are passive about the international co-productions as thereare fewsuccessfulcases of international co-productionsthat Japan was involved in as well as skeptical about the credibility of the international co-production projectpartners. 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 42

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 international co-productions take on various forms and a number of 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 coproduction.

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 Crossing Over Dream hana kage Last Life in the Universe 2006; invested by China, Hong Kong, Korea and Japan; cast includes Chinese, Korean and Hong Kong actors 2007; invested by China and Japan; cast includes Nakai Kiichi and Miao Pu 2008; invested by Korea and Japan; cast includes Odagiri Joe 2007; invested by Japan and Korea; cast includes Kim Rae Won and Yamamoto Mirai 2003; invested by Thailand, the Netherlands, France, Singapore and Japan; starring Asano Tadanobu

43

Chapter 2 Co-production System in Japan

Development of Co-production System and Its Structure

The Longest Night in Shanghai 2007; invested by Japan and China; cast includes Motoki Masahiro and Vicki Zhao Plastic City Red Cliff Silk Tea Fight TOKYO! Virgin Snow 2008; invested by China, France, Brazil and Japan; cast includes Odagiri Joe 2008; invested by Japan, China, Korea, US and Taiwan; cast includes Kaneshiro Takeshi and Nakamura Shido 2007; invested by Italy, Canada, France, UK and Japan; cast includes Michael Pitt, Keira Knightley and Yakusho Koji 2008; invested by Japan and Taiwan; cast includes Kagawa Teruyuki, Toda Erika and Vic Chow 2008; invested by France, Korea and Japan; cast includes Japanese actors 2006; invested by Japan and Korea; cast includes Miyazaki Aoi and Lee Jun-gi

Pattern 3: A foreign country investing in a Japanese film or a Japanese company investing in a foreign film.
list of recent major works Gu Gu, the Cat Marie Antoinette The MOURNING FOREST ONE MISSED CALL Over-the-Shoulder Lover The Ring Tokyo Sonata 2008; Japanese film; with Korean capital 2006; Japanese film; with US and French capital 2007; Japanese film; with French capital 2008; US remake of a Japanese film; with Japanese capital 2007; Korean film; with Japanese capital 2002; US remake of a Japanese film; with Japanese capital 2008; Japanese film; with the Netherlandish and Hong Kong capital

Pattern 2: Producers, cast and crew from several countries are involved in a film produced by a single country.
list of recent major works 2009: Lost Memories CAFE LUMIERE Cyborg, She Devils on the Doorstep The Grudge The Grudge 2 The Last Samurai Letters from Iwo Jima Nuan One Missed Call Final 2001; Korean film; starring Jang Dong Gun and Nakamura Toru 2003; Japanese film; with Taiwanese director 2008; Japanese film; with Korean director 2000; Chinese film; directed by Jiang Wen; cast includes Kagawa Teruyuki 2004; US remake of a Japanese film; cast and crew include Japanese producer, director and actors 2006; US remake of a Japanese film; cast and crew include Japanese producer, director and actors 2003; Hollywood film; cast includes Watanabe Ken and Sanada Hiroyuki 2006; Hollywood film; cast includes Japanese actors 2003; Chinese film; directed by Huo Jianqi; cast includes Kagawa Teruyuki 2006; Japanese film; with Korean director and crew

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 aspublic assistance and incentives for film production remain low, together with the fact that Japan has signed an agreement for international co-productions onlywith one country thus far (Japan and Canada signed a co-production agreement in 1994). Nevertheless, the international coproduction projects have been actively promoted and made possible in Japan from the standpoint of investment by production companies and for the sake offurthering thepromotion 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 boxoffice 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 45

Rikidozan: A Hero Extraordinary 2004; Korean film; starring Sol Kyung-gu and Nakatani Miki

44

Chapter 2 Co-production System in Japan

Development of Co-production System and Its Structure

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 others 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 asTV 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 thatcan 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 thissystem 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 producer of the managing company representing the production committee 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 46

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.

47

Chapter 2 Co-production System in Japan

J-Pitch: Support Program for International Co-production

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-Pitch was launched as an initiative supporting the Japanese producers 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-Pitchs 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 projects between Japanese producers and their counterparts in other parts of 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.

Shanghai International Film Festival, Co-production Film Pitch and Catch (Co-FPC)
Funahashi Atsushi Iseki Satoru Fushimi Tomoko Dj Vu Cities Li-liang Seiroki Village Productions (2008) Tara Contents Inc. (2008) Running Beagle LLC. (2008)

Paris Cinema International Film Festival, Paris Project


Ichiyama Shozo Sonoki Miyako Dj Vu Cities DAZAI Office Kitano Inc. (2008) Chase Film International (2007)

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.

Toronto International Film Festival, International Financing Forum (IFF)


Sato Hideaki Sakahara Atsushi Tokikawa Toru Suzuki Akihiro Takeyama Masatoshi Sushi Man Kyoko Single Hit School Girl in A Cage Samurai Interpreter Dream One Inc. (2008) Good People Inc. (2008) Rivertime Entertainment Ltd. (2008) S.I.G. Co., Ltd. (2008) WAO World Co., Ltd. (2008)

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:

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Chapter 2 Co-production System in Japan

J-Pitch: Support Program for International Co-production

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)

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.


International Film Festival Rotterdam, CineMart
Sadai Yuji Hirasawa Sho My Back Page Room of Dreams Bitters End, Inc. (2008) PaxEterna Limited (2007)

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 Whats New?, gathering the representatives of major overseas project markets.

Berlin International Film Festival, Co-Production Market


Kito Yukie Ochiai Atsuko Seasons of Tokyo Eternal Forest Entertainment Farm, Inc. (2008) 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)

4) J-Pitch Website
As of April 2008, J-Pitch has been managing its official website (http//jpitch.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.

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J-Pitch: Support Program for International Co-production

2. Supported Films
TEA FIGHT
Producer: Ono Kousuke Director: Wang Yeming Japanese Release: July 12, 2008 Country: Japan=Taiwan Project Market: Hong Kong - Asia Film Financing Forum (HAF) 2007

On Next Sunday
Producer: Uemura Maki Director: Kemmochi Satoki Japanese Release: April 11, 2009 Country: Japan Project Market: Pusan Promotion Plan 2007

2009 ON NEXT SUNDAY FILM PARTNERS

2008 TEA FIGHT FILM ASSOCIATION

The Harimaya Bridge TOKYO SONATA


Producer: Kito Yukie Director: Kurosawa Kiyoshi Japanese Release: September 27, 2008 Country: Japan=Hong Kong=Netherlands Project Market: Cannes Producers Network 2006 Hong Kong - Asia Film Financing Forum (HAF) 2007 Producer: Mori Ko Director: Aaron Woolfolk Japanese Release: June 6, 2009 Country: Japan=U.S.A.=Korea Project Market: Rotterdam Lab 2008

Harimaya Bridge, LLP

2008 Fortissimo Films/ TOKYO SONATA Film Partners

Contact details: J-Pitch Office/ UNIJAPAN

FLAVOR OF HAPPINESS
Producer: Miki Kazushi Director: Mihara Mitsuhiro Japanese Release: October 11, 2008 Country: Japan Project Market: Hong Kong - Asia Film Financing Forum (HAF) 2007

5F Tsukiji Yasuda Bldg., 2-15-14, Tsukiji, Chuo-ku Tokyo, 104-0045 TEL: +81-3-5565-7511 Fax: +81-3-5565-7531 Email: j-pitch@unijapan.org More about J-Pitch at http://j-pitch.jp

2008 FLAVOR OF HAPPINESS Film Partners

Crime or Punishment?!?
Producer: Enomoto Norio Director: Kerallino Sandrovich Japanese Release: February 28, 2009 Country: Japan Project Market: Cannes Producers Network 2006

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Crime or Punishment ?!? Production Committee

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Chapter 2 Co-production System in Japan

Film and Co-production Market in Japan

Film and Co-production Market in Japan


1. TIFFCOM: Marketplace for Film & TV in Asia
TIFFCOM, Tokyo International Film Festival Market, was launched in 2003 as an Asian multi-content business market with an aim to capitalize Japans fame in animation and other visual content. Diversely from March du Film in Cannes and European Film Market in Berlin as well as other overseas major film markets that focus mostly on movie industry, TIFFCOM gathers buyers and sales agents of films, TV programs, animations and other entertainment-related content. It is composed of three major events: TIFFCOM, TPG and Seminar@TIFFCOM. TIFFCOM is the entertainment business market with a wide range of content genres, where major Asian visual contents and influential decision-makers of the industries gather. TPG (Tokyo Project Gathering) is a co-production market for finding business partners of financing and marketing. Seminar@TIFFCOM offers global perspectives and keynotes in related industries, especially to Asia. TIFFCOM has been supporting business leaders as the backbone of Asian visual contents and networks along with its affiliated festival, Tokyo International Film Festival. In 2008 TIFFCOM celebrated its 5th anniversary gathering with 19,843 visitors in total from 43 countries and regions. The number of domestic and oversea exhibitors became fifty-fifty, and its functionality has been greatly enhanced. In cooperation with the International Drama Festival 2008, TIFFCOM also supported TV drama and broadcasting-related content.

TIFFCOM2008 TIFFCOM (Oct. 22nd 24th at Roppongi Hills 40F, Tokyo)


Number of Exhibitors: 201 organizations from 22 countries and regions Number of Pre-Registered Visitors: 4,006 from 43 countries and regions Number of Market Screenings: 42 (including 38 market premieres)

TIFFCOM2009 (Oct. 20 th 22 nd at Roppongi Hills 40F and 49F, Tokyo)

Contact details: TIFFCOM TIFFCOM2009

2F Tsukiji Yasuda Bldg.,2-15-14 Tsukiji, Chuo-ku Tokyo 104-0045, JAPAN Email: info@tiffcom.jp URL: www.tiffcom.jp

2. Tokyo Project Gathering (TPG) Co-production Market


Tokyo Project Gathering (TPG) was launched in 2003 as the first and only co-production market in Japan. TPG promotes international coproduction of visual content including both movies and animated films. Organized as a co-event of TIFFCOM, TPG provides an opportunity for filmmakers and film professionals to present their projects in any stage: from development to just-before finalizing and help them find and raise funds from overseas. It also enables domestic and international visual 54 55

Chapter 2 Co-production System in Japan

Other Support Schemes

content experts to exchange views and information and hold business discussions. In 2008 TPG Committee selected 34 projects and organized 316 meetings. TPG also awards TPG Award for the best project. The winner of TPG Award in 2008 was The Red Dragonfly presented by Mr. Wang Wei, producer from Cineway, China.

Other Support Schemes


1 . Support Program for the Production of Film and TV Programs on Japan
The Japan Foundation offers grants to production companies making documentary films or TV programs on contemporary Japanese society. Organizations abroad with knowledge and proven experience in the field of filmmaking are eligible to apply for this program. Application from individuals are not considered.
l Qualified Projects:

TPG 2009 (Oct. 19 th 22 nd at Roppongi Academyhills 49F, Tokyo)


Events: TPG Networking Reception: introducing project exhibitors to the visitors (such as producers, buyers, investors). Individual business meetings: one-to-one meetings and business meetings organized by the TPG office.

1. Production of audio-visual materials in languages other than Japanese including documentary films, television programs, and video works that handle Japanese subjects, excluding fiction. Projects should be completed between April 2010 and February 2011. Japanese language teaching materials are not eligible. 2. Works intended for release to the general public in the form of either television broadcasting or film festivals and/or commercial release. 3. Works produced from a contemporary perspective (whether the subject matter belongs to the present or the past).
l Coverage:

Assistance will not exceed one-half of the total production costs, and is limited to a maximum of 5 million. Assistance will be remitted only after completion of the project.
l Number of Grants made for Fiscal Year 2009:

13 out of 48 applications
Contact details: TPG TPG Office c/o TIFFCOM Organizers Office

l Criteria:

1) Quality of the contents 2) Production scheme (probability of completion) 3) Effectiveness of the completed work
l Application Deadline:

2F Tsukiji Yasuda Bldg., 2-15-14 Tsukiji, Chuo-ku Tokyo 104-0045 Japan Tel: +81-3-5148-3861 Fax: +81-3-3524-1127 Email: tpg@tiffcom.jp URL: www.tiffcom.jp/2009/e/tpg.html

November 2009

[ Please

inquire for specific date.

l Notification of Results:

April 2010 57

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Other Support Schemes

Detailed application instructions and application form for the fiscal 2010 2011 will become available in September 2009.

2 . Subsidies for Culture and Arts Promotion Expenses


Support for Challenging Film Production[ The Agency for Cultural Affairs provides the following subsidies to Japanese films, including those films made as international co-productions in order to support the production of challenging film projects that are expected to directly lead to the improvement of the level of the Japanese film art.
l Eligibility:

Contact details: Film, TV and Publication Section Arts and Culture Department The Japan Foundation 4-1-1 Yotsuya, Shinjuku-ku, Tokyo 106-0004 Email: film_tv_and_publication_division@jpf.go.jp URL: http://www.jpf.go.jp/e/program/culture.html

Japanese organizations established to produce films and meet either of the following criteria 1. or 2. :

1. An organization established under Article 34 of the Civil Code (Act No.


89 of 1896) or under the Non-profit Organization Law (Act No. 7 of 1998).

2. An organization that possesses all of the followings:


a. Articles of association, an act of endowment, or similar rules. b. Clear intention, executive department, and responsibility system. c. The accounting department that can carry out accounting and auditing of its own organization. d. A base office for its activities.
If organizations form a production committee, they may not make any application in the name of the production committee. However, if the organization that is the core member of the committee falls under any of the above, the organization may make an application in its name. In principle, the applicant must not be a first-time film producer, and must meet one of the followings: a. The applicant has produced one or more films (including coproductions). b. The representative of the applicant or the director or the producer of the film concerned has produced or directed one or more films. c. A member applicant of a co-production group or a production committee has produced one or more films.

l Qualified Projects:

This subsidy is granted for a Japanese film production of a feature, documentary or animation at any stage of the production from planning to completion. It must be released widely to the public, within one year after the completion. Note that by Japanese film production, it is meant a
[ The

text is not an official translation but one made by UNIJAPAN. In case of inconsistency, the original Japanese version shall prevail.

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Chapter 2 Co-production System in Japan

Other Support Schemes

film made by a Japanese national, a permanent resident or a corporation established in accordance with the Japanese laws. In case of an international co-production, the Agency for Cultural Affairs examines the ownership of the copyright and other matters to determine whether the production can be subsidized. The film may not have any commercial, religious, or political purpose promoting specific product, organization, or group. Having a Japanese national as a co-production partner makes it easier to access these grants.
l Amount:
Actual expenses that can be covered by subsidy Amount of subsidy Form

l Some other notes:

1. When the screenplay, staff, and cast of the film are determined, the
applicant shall immediately report them to the Agency for Cultural Affairs. If there is any change in the application, the granting of the subsidy may be revoked, depending on the content of the change.

2. Each time the subsidized film is released in the five-year period after
its completion, the applicant shall report it to the Agency for Cultural Affairs. After this period, the applicant shall submit a report on the settlement of accounts. If the applicant gains considerable revenues from the release of the film, the Agency for Cultural Affairs may order the applicant to repay a part or the whole of the subsidy to the National Treasury.

Category Length

Feature film

Special A Over 1 hour B

Over 200 million Over 100 million Over 50 million Over 50 million Over 20 million Over 6 million Over 200 million Over 80 million Over 10 million

50 million 20 million 35 mm and others 10 million 15 million 16 mm and others 5 million (including video) 2 million 50 million Any form is 20 million accepted 3 million

3. The applicant shall include the Agency for Cultural Affairs symbol
mark or the like not only in the subsidized film but also in its posters, handbills, pamphlets, and other materials.

Documentary Film Special Over 1 hour A B 20 min. to 1 hour Animation Film Long feature A Over 1 hour Long feature B Short feature less than 1 hour

4. If the applicant fails to complete the subsidized production by the


required date, the Agency for Cultural Affairs shall accept no application for this project from the applicant for three years from the following fiscal year.
l Application deadlines:

l Documents to be submitted:

The application form can be downloaded from the website of the Agency for Cultural Affairs.
Feature film Application form 1 copy Distribution / Marketing Plan 1 copy Articles of association, act of endowment, or similar rules of 1 copy the applicant [1 1 copy List of past productions and related publicity materials Sample DVD or VHS copy (10 min. extract) Documents required Documentary film Animation film 1 copy 1 copy 1 copy 1 copy

January and July

[ Please

inquire for specific date.

Applications to be submitted to: Japan Arts Council Funding Department Address: 4-1 Hayabusa-cho, Chiyoda-ku, Tokyo 102-8656 URL: http://www.ntj.jac.go.jp/kikin/index.html

1 copy 1 copy 1 copy (not obligatory) 10 copies

1 copy 1 copy 10 copies 10 copies 8 copies (not obligatory)

Bound Screenplay [2 Storyboard [3

10 copies

For inquires contact: Support Program Room, Arts and Culture Division, Cultural Affairs Department Agency for Cultural Affairs Address: 3-2-2 Kasumigaseki, Chiyoda-ku, Tokyo 100-8959 Tel: +81-3-6734-2083 Fax: +81-3-6734-3815 URL: http://www.bunka.go.jp

Color image board / cabinet size photograph

[ 1 In case of co-production groups, the outline of each group and the list of past productions must be included. [ 2 If only the photocopy of the screenplay is available at the time of application, it should be bound in B5 size including the credits. [ 3 Include only the essential parts of the storyboard. The list of characters and the story setting must be included.

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Other Support Schemes

3 . Support Program for the Participation at Film Festivals


Initiated in April 2003 under the support of the Agency for Cultural Affairs, this program is managed by UNIJAPAN. In order to support the exposure of Japanese films overseas, to enhance the understanding of Japanese culture abroad and to help recover the production costs, the government of Japan provides assistance for Japanese films entering overseas film festivals and film markets in the following production costs: subtitles, multiple prints, promotional materials and travel expenses. This assistance targets independent film productions as well.
l Grants:

for filmmakers, publicity materials, translators and publicists Covers up to half of the total cost, maximum of 4 million

2. Grant for participating in other UNIJAPAN accredited international


film festivals Subtitles production, print transportation, traveling and lodging for filmmakers Covers up to half of the total cost, maximum of 1.5 million This grant is provided to the participants of competition category of international film festivals other than the feature film competition of three film festivals mentioned above, which are accredited by UNIJAPAN. These include participation in competition selection of the film festivals accredited by FIAPF (International Federation of Film Producers Associations): film festivals of Shanghai (China), Moscow(Russia), Karlovy Vary (Czech Republic), Locarno (Switzerland), Montreal (Canada), San Sebastian (Spain), Cairo (Egypt), Mar del Plata (Argentine); internationally known film awards (e.g. US Academy Awards).
C. Support for independent filmmakers participating in film festivals

A. Support for filmmakers participating in film festival and film market

Japanese films and Japanese filmmakers participating in film festivals or film markets abroad may receive the following grants:

1. Grant for subtitles production


Includes print duplication, translation and print transportation Covers up to half of the total cost, maximum of 700,000

and film markets Supports listed below are provided to young and emerging filmmakers who participates at international film festivals. Student films, short films, 16mm films, digital films are all considered.

2. Grant for overseas travel expenses


Traveling and lodging for producers, directors, performers, sales representatives, and other related staff Covers up to half of the total cost, maximum of 400,000

1. Grant for subtitles production


Includes print duplication, translation and print transportation Under UNIJAPANs counsel, 50 % of the costs approved will be provided within the budget, maximum of 700,000

3. Grant for publicity materials


Production costs of posters and leaflets in other languages and advertising expenses Covers up to half of the total cost, maximum of 400,000
B. Support for filmmakers participating in major film festivals

2. Grant for filmmakers overseas travel expenses


Traveling and lodging for producers, directors, performers and related staff Under UNIJAPANs counsel, the total of costs approved will be provided maximum of 200, 000

Supports listed below are provided for the participants whose work has been selected for film festival competitions accredited by UNIJAPAN.

1. Grant for participating in feature film competition of three major


international film festivals: Palme dOr, (Cannes), the Golden Lion (Venice), the Golden Bear (Berlin) Subtitles production, print transportation, traveling and lodging 62 63

Chapter 2 Co-production System in Japan

Other Support Schemes

l Eligibility

Applicant: The applicant must be either a production company of the film concerned, or its representative. The applying company must be a corporate organization authorized by the Japanese law. However, applications from individuals are also accepted in case of the above listed grant C. support for independent filmmakers participating at film festivals. Applicants and their films must participate, or have already participated at film festivals or film markets. Funds are available for all genres, lengths and formats. Coverage: Cost coverage is limited to filmmakers or film work representatives participating at film festivals. No cost coverage is provided for overseas sales agents or corporations.
l Application Procedure

Contact details: UNIJAPAN 5F Tsukiji Yasuda Bldg., 2-15-14 Tsukiji, Chuo-ku Tokyo 104-0045, JAPAN Tel: +81-3-5565-7511 Fax: +81-3-5565-7531 E-mail: office@unijapan.org URL: http://www.unijapan.org

Double application is prohibited: In case an applicant is consequently receiving another grant for subtitle production, travel expenses or publicity costs, he/she will not be entitled to the grant. In case the support grant from another body is decided after applying for this grant, an applicant is asked to immediately inform UNIJAPAN. Application Deadlines: A day before the date of the festival or market which an applicant participates in. Selection and Announcement: The selection of applicants or works for the grant is made by the Selection Committee formed at UNIJAPANs request. The committee decides the number of the recipients and allocation of grants. In the case of the independent filmmakers grant applications, an applicant is called for an interview. In the case of the grant for subtitles production, Supported by the Agency for Cultural Affairs must be inserted in the final production of the work. In the case of the grant for travel expenses, a detailed report of participants, activities and schedule need to be submitted. This report will be put up on UNIJAPANs official website.

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Chapter 3
Chapter 3 Filming in Japan

Film Commissions

Filming in Japan
1. The Establishment of Film Commissions
Just a decade ago Japan had no major international movie production being shot on its territory as there was no location-support organization in Japan. In year 2000 a group of movie and media professionals volunteered to establish the Japan Film Commission Study Group chaired by Mr. Sato Tadao, the president of the Japan Academy of Moving Images. In September the same year, the Study Group held the National Symposium on Promoting the Establishment of Film Commissions and soon after in November, it held the International Symposium to coincide with the Tokyo International Film Festival, signaling to the world that the movement to establish FCs in Japan had begun. These events successfully lead to the establishment of FCs nationwide. During year 2000, the film commissions were established in the city of Osaka (February), Kobe (September) and Yokohama (October). With the foundation of the Study Group, the efforts for the establishment of film commissions enjoyed prominent media coverage, serving as a fillip for an increasing number of prefectural municipalities around Japan which responded to the establishment of FCs at rather fast pace. In August 2001 Japan Film Commission Promotion Council was established to unite efforts 66

of support to local film commissions and contribute to the development of Japanese visual culture. As a result of these movements, as of year 2008 the number of the film commissions offering location support services throughout Japan has reached 101.

2. The Launch of Japan Film Commission (JFC)


In April 2009 Japan Film Commission (JFC), an umbrella organization covering the entire country of Japan, was launched. A non-profit organization comprising of local film commissions and various film and video industry guilds, such as the Directors Guild of Japan, it is also supported by ministries and agencies of the federal Japanese government, such as the Ministry of Economy, Trade and Industry and the Agency for Cultural Affairs. JFC was launched to function as a single one-stop film commission of Japan to provide service and information to filmmakers throughout the world. JFC also functions as a network connecting over 100 film commissions in Japan, making it possible for filmmakers to obtain information on locations, local production service companies, shooting permits, and information about non-tax incentives and filming supports offered by local governments and film commissions in Japan.
For further and most recent information about JFC visit JFC official website: http://www.japanfc.org or contact JFC directly jfc@japanfc.org .

3. Some Useful Tips

how to get the best support from film commissions


Local film commissions

Provide as much detailed information as possible regarding the shooting, such as the project plan, script, storyboard, etc. (Confidential information will not be released without your prior approval).
Film commission networks

As there are over 100 film commissions throughout Japan, neighboring film commissions often work together in supporting a film. Regions such as Hokkaido (northern island), Kansai region (covering Osaka, Kobe, Kyoto), Kyushu Island area, and others have formed strong networks to support filming by sharing information and resources.

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Chapter 3 Filming in Japan

Film Commissions

4. AFCNet (Asian Film Commissions Network) members


a www.afcnet.org
sSapporo

Film Commission

sSendai

Miyagi Film Commission

s Hiroshima

Film Commission

sShimonoseki

Film Commission

sTokyo

Location Box

sNagoya

Location Navi

sKitakyushu

Film Commission

sFukuoka

Film Commission

s Osaka

Film Council

sHyogo

Film Commission Network

sSAGA

Prefectural Film Commission

sNagasaki

Film & Media Commission

s Kobe

Film Office

sHimeji

Film Commission

sOita

City Location Office

sOkinawa

Film Office

68

69

Chapter 4
Chapter 4 Information on Japanese Films

Japanese Film Industry

Japanese Film Industry

Information on Japanese Films


70

1. For the Statistics Refer to Motion Picture Producers Association of


Japan, Inc. (EIREN)
The statistical data of Japanese film industry is annually provided by Motion Picture Producers Association of Japan (EIREN) in January and is made available on EIRENs official website. The content of the following data from 1955 to 2009 is available online. 1. 2. 3. 4. 5. 6. 7. 8. Number of screens Number of feature films released Number of feature films attendance Box-office receipts Average admission fee Distribution Distribution revenue share Films with more than 1 billion yen box office (data available only from 2004)

Above data 15 is available in English on the J-Pitch official site


http://j-pitch.jp/english/statistics/

(updated and translated into English by UNIJAPAN in cooperation with EIREN) All of the above data is available on the official site of the Motion Picture Producers Association of Japan (EIREN) in Japanese only.
http://www.eiren.org/toukei/index.html

2. For the Imported Films Refer to Foreign Film Importer-Distributors


Association of Japan (Gaihaikyo)
Foreign Film Importer-Distributors Association of Japan (Gaihaikyo) provides the information on the imported film market in Japan. A title list of imported films released within Japan from 20012007 is available in Japanese and from 20052007 in English. 1. List of imported films by title per company 2. Number of imported films released by corporations per month 3. Number of imported films released by countries per month Gaihaikyos official website http://www.gaihai.jp/ 71

Chapter 4 Information on Japanese Films

Japanese Film Database (JFDB)

3. For Research and Survey on Japanese Film Market Refer to


Kinema Junpo Film Institute
Kinema Junpo Film Institute was established in 2004 with an aim to further contribute to the development of Japanese film market by conducting researches and surveys on Japanese film industry and films. It provides and releases analytical researches of Japanese film market and theatrical film releases and thus, develops itself as a consultant agency offering the firsthand information on the state of film market in Japan. Kinema Junpo Film Institute also manages the film database covering 28,592 film titles from 1896 to 2007. Kinema Junpo Film Institute provides the information in Japanese only. Kinema Junpo Film Institute official website http://www.kinejunsoken.com/

Japanese Film Database (JFDB)


With an aim to further spread the awareness of the Japanese films abroad, in year 2002 UNIJAPAN launched a project for creating the first bilingual (Japanese-English) Japanese film database. Focusing on the Japanese films listed in UNIJAPANs yearbook Japanese Film, the database gathers the information of theatrically released Japanese films including credits, extract images and contact details of the companies in charge of the international promotion. In year 2007 as part of the support program for international co-production J-Pitch, the database was renewed as JFDB to offer more detailed information about the Japanese films.
a http://j-pitch.jp/english/jfdb/

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Chapter 4 Information on Japanese Films

Japan Location Database (JLDB)

Content of JFDB
1) Data on Japanese films
JFDB provides search engine on Japanese films according to title, genre, duration, year, film cast and staff, or film industry related companies. JFDB also offers information on Japanese films released since 2002 together with contact details for each film title, in Japanese and English. JFDB covers information on 1309 film titles as of April 5th 2009. 1025 fiction, 151 documentaries, 106 animations, 8 experimental films and 19 others.

Japan Location Database (JLDB)


In year 2006 the location database JLDB was launched under the auspice of the Agency for Cultural Affairs, with an aim to help overseas filmmakers to easily find the appropriate shooting location in Japan. Filmmakers can look for locations that match their specific needs and interests with its search engine by region, category or year. JLDB is a bilingual Japanese-English database which covers data of 3000 locations around Japan. It serves as a bridge connecting overseas filmmakers to various locations throughout Japan. JLDB https://www.jldb.bunka.go.jp/

2) The Directory of Film Industry


As of April 5th, 2009, JFDB provides contact details and addresses of 521 film related organizations and companies. These include: Associations 33 Production companies 151 Production companies (animation) 30 Distributors 100 Sales companies 9 Funds 4 Film commissions 30 Film festivals 26 Film schools 24 Laboratories, production studios and equipment 20 Subtitling companies 11 Casting companies 4 Translation/interpretation companies 4 The content of each organization includes: contact details, companys outline and filmography. JFDB is annually renewed and its data regularly updated. For further information please contact UNIJAPAN jpitch@unijapan.org .

Ishikari Film Office

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Chapter 4 Information on Japanese Films

Some Useful Links

Some Useful Links


For co-production J-Pitch (UNIJAPAN) Japanese Film Database (UNIJAPAN)
http://j-pitch.jp/english

For support programs Agency for Cultural Affairs http://www.bunka.go.jp/english/index.html Japan Foundation
http://j-pitch.jp/english/jfdb http://www.jpf.go.jp/e/index.html

Ministry of Economy, Trade and Industry (Japanese only) Motion Picture Producers Association of Japan, Inc. http://www.eiren.org/history_e/ Japan Film Makers Association
http://www.2.odn.ne.jp/jfma http://www.meti.go.jp/policy/mono_info_service/contents/index.html

UNIJAPAN

http://www.unijapan.org/en/

Association of All Japan TV Program Production Companies (ATP) https://www.atp.or.jp/modules/english Directors Guild of Japan
http://www.dgj.or.jp

Foreign Film Importer - Distributors Association of Japan http://www.gaihai.jp/english/eindex.htm

For film commissions & locations Japan Film Commission


http://www.japanfc.org/index.html

Japan Film Commission Promotion Council Japan Location Database

http://www.film-com.jp/

http://www.jldb.bunka.go.jp/

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77

About UNIJAPAN

About UNIJAPAN

About UNIJAPAN
UNIJAPAN is a non-profit organization commissioned by the Japanese government to support the promotion of Japanese moving images abroad. UNIJAPAN was established in 1957 by the Japanese film industry under the auspice of the Ministry of Foreign Affairs (MOFA)and the Ministry of Economy, Trade and Industry (METI). Initially named Association for the Diffusion of Japanese Film Abroad (UniJapan Film), in fiscal year 2005 it joined hands with the organizer of the Tokyo International Film Festival (TIFF), forming a new organization Japan Association for International Promotion of the Moving Image (UNIJAPAN). Today UNIJAPAN manages its activities through the International Promotion Department, which is in charge of support programs for overseas promotion, and the Film Festival Department, which is in charge of the organization of TIFF.
Activities

Publications and Website: To foster the promotion of Japanese films and spread the awareness of Japanese film overseas, UNIJAPAN manages the following websites: UNIJAPAN official website supported by Japan KEIRIN Association
a http://www.unijapan.org/

J-Pitch official website supported by METI


a http://j-pitch.jp/

Japanese film database (JFDB) supported by METI


a http://j-pitch.jp/jfdb/

and issues the following publications: Japanese Filma yearbook of Japanese films and film industry supported by the Agency for Cultural Affairs New Cinema from Japana twice-a-year catalogue of new Japanese cinema supported by the Japan Foundation Research and Development: To further promote international cooperation for the growth of film culture and the advance of film industry, UNIJAPAN working with international organizations, carries out surveys and research on the state of overseas film markets including international co-productions schemes, and sends out the UNIJAPAN Newsletter with the latest news and information on screenings and presence of Japanese films overseas. Organization of the Tokyo International Film Festival (TIFF): UNIJAPAN manages the Tokyo International Film Festival through its Film Festival Department (a www.tiff-jp.net ).

Support Program for Participation at Film Festivals (Grant Scheme supported by the Agency for Cultural Affairs): UNIJAPAN provides grants and subsidies for Japanese films and Japanese filmmakers attending international film festivals and film markets, covering the expenses for overseas travel, production of film subtitles and promotional materials. Support Program for International Sales (supported by the Agency for Cultural Affairs): UNIJAPAN supports Japanese film companies to promote international sales of Japanese films by setting up a Japanese film promotional stand at the major international film markets in Cannes, Toronto, Pusan, Hong Kong and Berlin. J-PitchSupport Program for International Co-production (supported by the Ministry of Economy, Trade and Industry(METI)): As of year 2006 through J-Pitch, UNIJAPAN actively supports Japanese film producers aiming at co-productions to participate at international project markets in Cannes, Shanghai, Paris, Pusan, Rotterdam, Berlin and Hong Kong, assists them in finding overseas co-production partners, and helps them in building human networks crucial for furthering international co-production. Within Japan, J-Pitch also organizes workshops and seminars on international co-productions.

Contact details: UNIJAPAN 5F Tsukiji Yasuda Bldg., 2-15-14, Tsukiji, Chuo-ku Tokyo, 104-0045, JAPAN Tel: +81-3-5565-7511 Fax:+81-3-5565-7531

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The Guide to Japanese Film Industry and Co-production 2009


Publisher: UNIJAPAN International Promotion Department Managing Editor: Silvana PETKOVIC Editor: USUI Chizuru Assistant Editors: HASEGAWA Toshiyuki, NAKANISHI Kayoko, KIMURA Yumiko (UNIJAPAN)

WAKAI Makiko, YANO Kazuyuki (Cinematrix) Translation: Digital Meme, Ben DIMAGMALIW
Design: YAMAGUCHI Atsushi Printing: Yamaneko Printing

Date of Publication: March 31, 2009 Published by UNIJAPAN 5F Tsukiji Yasuda Bldg., 2-15-14 Tsukiji, Chuo-ku, Tokyo 104-0045, JAPAN Tel: +81-3-5565-7511 Fax:+81-3-5565-7531 Email: j-pitch@unijapan.org http://www.unijapan.org

Supported by the Ministry of Economy, Trade and Industry, Government of Japan

Copyright 2009 UNIJAPAN. All rights reserved.

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