{"id":114135,"date":"2025-04-02T09:26:40","date_gmt":"2025-04-02T09:26:40","guid":{"rendered":"https:\/\/teknomers.com\/en\/toei-ceo-explains-2-billion-growth-plan\/"},"modified":"2025-04-02T09:26:40","modified_gmt":"2025-04-02T09:26:40","slug":"toei-ceo-explains-2-billion-growth-plan","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/toei-ceo-explains-2-billion-growth-plan\/","title":{"rendered":"Toei CEO Explains $2 Billion Growth Plan"},"content":{"rendered":"

What specific strategies is Toei Company’s president implementing to expand into international markets?<\/strong>
\nHow has Toei’s historical focus on the Japanese domestic market influenced its current approach to global expansion?<\/strong>
\nWhat technological upgrades is Toei planning to implement in its production facilities?<\/strong>
\nIn what ways does Toei aim to improve its international revenue share by 2033?<\/strong>
\nHow is Toei Company addressing the challenges of adapting its anime and tokusatsu properties for the international audience?<\/strong> <\/p>\n

Welcome to Deadline\u2019s International Disruptors, a feature where we shine a spotlight on key executives and companies outside of the U.S. shaking up the offshore marketplace. This week, we\u2019re talking to Toei Company President and CEO Fumio Yoshimura about the Japanese studio\u2019s ambitious growth and global expansion plans, which include a slate of international projects and co-productions; ramping up international sales of its existing content; and upgrading its physical production facilities in Tokyo and Kyoto. Deadline sat down with Yoshimura ahead of his trip to Los Angeles to meet with major Hollywood studios and streamers.<\/p>\n

One of Japan\u2019s oldest studios, Toei Company has been producing film and TV content for more than 70 years, across multiple genres including historical samurai flicks, contemporary crime dramas and yakuza movies and its signature \u2018tokusatsu\u2019 (live-action special effects) genre, including the Kamen Rider<\/em>, Super Sentai<\/em>, and Power Rangers<\/em> franchises. The studio has a library of 4,400 theatrical movies, 39,000 episodes of TV drama productions, and more than 600 episodes of video streaming content, with recent movie releases including Oshi No Ko \u2013 The Final Act<\/em>, a live-action adaptation of a popular manga, and period action thriller Muromachi Outsiders<\/em>, directed by Yu Irie.<\/p>\n

Toei Co is also a majority shareholder in Toei Animation, which produces hot anime franchises including Dragon Ball<\/em>, One Piece<\/em>, Saint Seiya<\/em>, Slam Dunk<\/em>, and Sailor Moon<\/em>. While the two companies are under separate management, Toei Co is handling live-action remake rights to Toei Animation content internationally.<\/p>\n

Like many Japanese studios, Toei has long been focused on its huge domestic Japanese market, but is now looking overseas with a slate of development projects aimed at international markets, both original works as well as remakes of its hottest IPs. The studio also has plans to ramp up sales of its existing content, increasing international revenues’ share of total income from 30% to 50% by 2033; upgrade its studio facilities and post-production labs in Tokyo and Kyoto; and work on co-productions with China and other Asian territories.<\/p>\n

\u201cIn the past, Japan had a large population and therefore a market for entertainment content, so we didn\u2019t see the necessity of going overseas,\u201d says Yoshimura, who has been with the studio for 37 years and was appointed president and CEO in 2023. \u201cBut now our population is declining, a trend that is not likely to be reversed, so now is the time for us to create new strategies.\u201d<\/p>\n

Yoshimura says North America and Asian markets are the first priority for the studio as it embarks on global expansion. \u201cAsia accounts for more than half the world\u2019s population, local content is growing in nearly every Asian market, and the region is closer to us culturally, so it\u2019s an obvious place to start."<\/p>\n

\u201cBut North America is also a huge market, so of course we would want to roll out there as well. We\u2019d like to work on partnerships and affiliations, trying to bridge the gap we have currently. We\u2019re starting with production so we\u2019re looking for partners that we can co-produce and create with \u2013 the idea is to produce content that can work in the North American market.\u201d<\/p>\n

Toei has earmarked $2BN (JPY300BN) for its expansion \u2013 $1.6BN (JPY240BN) for content and $400M (JPY60BN) to strengthen business operations. The growth strategy was first set out in a ten-year \u2018Toei New Wave\u2019 vision plan in 2023 \u2013 the year after the studio celebrated its highest ever box office with releases including One Piece Film: Red<\/em> and The First Slam Dunk<\/em> \u2013 and since then the studio has established a production team to work on international projects.<\/p>\n

While titles and details are yet to be announced, the international slate includes a big-budget historical series based on the period of Japanese history that gave birth to the samurai class, which is being co-scripted with U.S. writers, and which Yoshimura describes as a \u201cGame Of Thrones<\/em> -style big-budget action drama.\u201d The studio is also working on a New York-set movie, which is being set up as a co-production between the U.S., Japan, and Taiwan, as well as a rare co-production between Japan and Africa. Also in the works is a superhero character developed for international markets \u2013 Toei\u2019s first new superhero character in over 50 years.<\/p>\n

\u201cWe also want to look at how we can expand our existing tokusatsu special effects franchises \u2013 Kamen Rider<\/em>, Super Sentai<\/em>, and Power Rangers<\/em> \u2013 this has always been Toei\u2019s forte and we\u2019re hoping to expand these properties,\u201d Yoshimura says.<\/p>\n

In Japan, the studio is aligned with a complete distribution chain across all platforms, either owned by itself or with partners, including the T-Joy Co theatre chain with 230 screens at 23 sites. Thanks to blockbuster anime releases, Japan\u2019s box office has seen a relatively healthy recovery since the pandemic \u2013 although last year it decreased 6.5% to $1.33BN (JPY207BN), mostly due to a lack of Hollywood releases \u2013 and the market is one of the few globally that still has significant DVD\/Blu-ray revenue, at least from fan-driven sales of collectible DVDs. But Yoshimura acknowledges that the market has grown as big as it\u2019s ever going to get, hence the shift towards international. \u201cJapan is the second biggest box office market in Asia behind China, but this won\u2019t grow dramatically,\u201d he says.<\/p>\n

Yoshimura also wants to get the message across to Hollywood that Japan\u2019s notoriously conservative and risk-averse entertainment industry is open to change. Most content in Japan is financed through the \u2018production committee\u2019 (\u5236\u4f5c\u59d4\u54e1\u4f1a) system, under which a consortium of up to a dozen local studios, broadcasters, video companies, and ad agencies will co-finance a project in return for a set proportion of returns. In the past, this has made it difficult for foreign companies to get a piece of the action.<\/p>\n

\u201cThe production committee system is a very unique way of doing business in Japan, but we don\u2019t think it’s suitable for foreign markets,\u201d Yoshimura says. \u201cWe\u2019re looking at much simpler financing structures such as a 50:50 partnership with our foreign partners.\u201d<\/p>\n

Japan\u2019s New International Push<\/strong> <\/p>\n

Toei is one of several Japanese entertainment giants making an ambitious international play, for all the reasons outlined by Yoshimura, who also says they\u2019re prepared to change corporate habits set in stone for decades. In addition to facing stagnation in their local market, they\u2019re inspired by the international success of Japanese-themed content including Warner Bros\/Legendary\u2019s Monsters<\/em> franchise, which rebooted Toho\u2019s Godzilla<\/em> character, and Disney\/Hulu\u2019s Emmy-award winning series Shogun<\/em>. They\u2019re also invigorated by the Japanese government\u2019s introduction of a 50% production rebate, which is starting to bring a larger volume of international projects to shoot in Japan.<\/p>\n

Most of the Japanese studios are already working with the global streamers \u2013 with Netflix, Prime Video, and Disney+ all identifying Japan as a priority market within Asia \u2013 but so far the territory has not seen the massive inflation in production costs experienced by markets such as the UK or South Korea. Toei has so far worked mostly with Prime Video, which premiered a spinoff series of Oshi No Ko \u2013 The Final Act<\/em>, and has acquired other Toei content including tokusatsu series Kamen Rider Black Sun<\/em>.<\/p>\n

While most Japanese content is based on familiar manga and anime properties, one reason why the market is regarded as risk-averse, Yoshimura says Shogun<\/em> was a game-changer in that it proved you can have a globally successful show that is not based on internationally recognized IP. \u201cThe advantage of manga or anime content is that they\u2019re based on familiar properties, while live-action content, even if based on a novel, might have very low awareness,\u201d Yoshimura says. \u201cShogun<\/em> was a breakthrough because it proved that live-action content based on Japanese themes could be easily understood by a global audience.\u201d<\/p>\n

However, it\u2019s perhaps not surprising that Toei is currently receiving the most inquiries about adaptations of its popular anime and tokusatsu properties. The studio will be treading carefully when it comes to remakes, as several high-profile live-action adaptations of Japanese anime properties have bombed at the international box office in the past. Remakes on streaming have been more successful, including Netflix\u2019s live-action version of One Piece<\/em>, but that project highlights the complex nature of manga and anime licensing.<\/p>\n

In Japan, manga artists are highly regarded and usually retain the rights to their creations, so while Toei Animation produces the One Piece<\/em> anime series, Netflix worked directly with its creator, Eiichiro Oda, on the live-action series. Likewise, Toei and Saban are not involved in the live-action remake of Power Rangers<\/em>, currently in the works at Disney+, as Hasbro acquired international rights excluding Asia to the franchise in 2018. However, Toei has an experienced international production and licensing team on hand to help potential partners navigate this complex landscape.<\/p>\n

China & Other Asian Markets<\/strong><\/p>\n

In the rest of Asia, Toei has already been collaborating with local companies, co-producing anime series Voltes V Legacy<\/em> with the Philippines\u2019 GMA Network, while Toei Animation signed a strategic partnership with Korea\u2019s CJ ENM in 2021. Now the studio is eyeing the China market, where Japanese anime is by far the largest import category behind Hollywood movies, and where Toei\u2019s The First Slam Dunk<\/em> grossed $90m (RMB663m) in 2023.<\/p>\n

\u201cThe next step is to work with Chinese producers to create local IPs, which will be regarded as Chinese content, rather than imported Japanese content,\u201d Yoshimura explains. \u201cProduction capabilities are improving rapidly in China and Toei wants to co-produce both animation and live-action with Chinese partners.\u201d<\/p>\n

Co-production is becoming a growing trend across East Asia, as not just Japan and China, but also Korea and Southeast Asia explore ways to pool financial resources and expand their markets in an era of uneven post-pandemic recovery. China may just have enjoyed its biggest hit ever with $2BN-grossing animation Nezha 2<\/em>, but last year the total box office was down 23% compared to 2023.<\/p>\n

Studio & Other Tech Upgrades<\/strong><\/p>\n

Of course, box office recovery across the region has been impacted by the rise of streaming, and Toei acknowledges business models are changing and is exploring different ways of working with global and local streamers. But the studio is also investing in tech upgrades for its cinema chain, as well as programming alternative content, including live streaming of concerts and other immersive events. Yoshimura says he\u2019s excited by developments such as the recent live streaming of a concert by K-pop artists Tomorrow X Together<\/em>, during which the audience could wear interactive goggles to follow their favorite member of the band. \u201cWe need to offer something different to lure audiences to cinemas and we\u2019re finding this content is attractive, even if it\u2019s more expensive than watching a film.\u201d<\/p>\n

Tech upgrades are also on the cards at Toei\u2019s two studios and various post-production facilities in Tokyo and Kyoto. With the Japanese government recently confirming the extension of its 50% rebate, Toei is expecting more international shoots to travel to Japan. To meet demand, the studio has opened a 270-degree virtual production stage in Tokyo and is investing an additional $240M (JPY36BN) in renovating its studios, as well as improving its VFX, AI, digital humans, and other tech capabilities. \u201cSince Shogun<\/em>, we\u2019ve been contacted by multiple companies interested in creating a samurai movie or content they want to shoot in Kyoto, so we anticipate significant growth there,\u201d Yoshimura says.<\/p>\n

All these developments can be seen as part of a changing corporate culture in Japan. Long regarded as the country of stasis and stagflation, and currently grappling with the blessings and curses of a weak yen, the country is ready to play a greater role in the global entertainment ecosystem moving forward. Yoshimura observes that years of deflation mean that production costs have remained low in Japan, while they ballooned in neighboring markets that experienced rapid growth prior and\/or post the pandemic.<\/p>\n

\u201cThe upside of deflation is that we\u2019ve developed skills in creating high-quality content on a low budget,\u201d Yoshimura says. \u201cThe next step for us is learning how to produce larger-scale content, and for that we need to work with Hollywood and other foreign studios. We want to learn from them and share our knowledge and expertise as well.\u201d<\/p>\n

Toei CEO Unpacks $2 Billion Expansion Strategy: A New Era for Japanese Animation<\/strong><\/p>\n

In a groundbreaking announcement that has set the entertainment world abuzz, Toei Animation’s CEO recently unveiled a bold $2 billion expansion strategy aimed at cementing the company\u2019s position as not just a leader in Japanese animation but also a formidable player on the global stage. This ambitious plan comes at a time when demand for high-quality animated content is skyrocketing, fueled by streaming services, global franchises, and a growing appetite for anime outside Japan. <\/p>\n

Understanding the Strategy<\/h3>\n

At the heart of Toei\u2019s expansion strategy is a multi-faceted approach that encompasses increased production capabilities, innovative content creation, successful adaptation of international franchises, and a commitment to global market penetration. The CEO articulated a vision that is both imaginative and grounded in the realities of the rapidly evolving media landscape.<\/p>\n

1. Enhanced Production Capabilities<\/strong><\/h4>\n

Recognizing that high-quality production is integral to captivating audiences, Toei plans to invest heavily in technology and talent. The expansion will involve upgrading animation studios, investing in advanced animation technology\u2014including AI and CGI\u2014to streamline production processes, and improving the overall quality of animated content. The objective is clear: to increase output while maintaining, and indeed enhancing, the artistic integrity and storytelling for which Toei is renowned.<\/p>\n

The company is also focusing on collaborating with international studios and creators to tap into new talent and innovative ideas. This commitment to co-productions is expected to not only amplify Toei’s creative output but also attract a diverse global audience.<\/p>\n

2. Innovation in Content Creation<\/strong><\/h4>\n

A key highlight of the strategy is Toei’s pledge to diversify its content portfolio. Historically known for iconic series like "Dragon Ball," "One Piece," and "Sailor Moon," the company aims to venture beyond its traditional genres. The CEO hinted at potential forays into original stories that resonate with a broader audience, including genres like fantasy, horror, and even documentary-style animation. <\/p>\n

Special attention will be given to work that emphasizes diverse narratives and characters, which aligns perfectly with global sensibilities that favor inclusivity and representation. This strategic pivot reflects a keen understanding that modern audiences seek stories that resonate with their experiences and cultural backgrounds.<\/p>\n

3. Leveraging International Franchises<\/strong><\/h4>\n

Toei CEO emphasized the importance of adapting successful international franchises. The strategy includes exploring licensing opportunities for popular content not only from Western sources but also from emerging markets across Asia, Latin America, and beyond. Creating anime adaptations of popular video games, comics, and even novels is seen as a potential goldmine.<\/p>\n

By adopting and reimagining content that has already garnered significant attention, Toei can piggyback on established fanbases while introducing the magic of anime storytelling to new audiences. This cross-pollination of ideas and styles can foster a more dynamic animation landscape, providing fresh animes that can appeal globally.<\/p>\n

4. Building a Global Brand<\/strong><\/h4>\n

An essential component of Toei’s ambitious strategy is bolstering its global brand presence. The CEO articulated plans to ramp up marketing efforts\u2014not just in Japan but around the world. This includes establishing international offices, enhancing partnerships with local distributors and streaming platforms, and participating in global conventions and festivals to showcase Toei\u2019s expansive library of content.<\/p>\n

Toei’s rebranding efforts will also focus on the company’s image; transitioning from being perceived primarily as a traditional anime studio to a versatile creator of content spanning various media formats, including films, TV series, web content, and interactive experiences.<\/p>\n

5. Sustainability in Animation<\/strong><\/h4>\n

The Toei CEO also touched on a critical yet often overlooked aspect: sustainability. The animation industry has been scrutinized for its environmental impact, and Toei aims to lead the charge in adopting sustainable practices in production. This includes minimizing waste, utilizing eco-friendly technologies, and exploring green animation techniques. By positioning itself as a responsible industry leader, Toei hopes to attract socially-conscious consumers and partners.<\/p>\n

Conclusion<\/h3>\n

In an era defined by rapid digital transformation and an insatiable demand for compelling narratives, Toei Animation’s $2 billion expansion strategy seems not just ambitious but necessary. By investing in production capabilities, innovating content, leveraging international franchises, building a robust global brand, and committing to sustainability, Toei is poised to not only redefine its place in animation history but also to shape the future of animated content on a global scale.<\/p>\n

As fans of anime eagerly await the new offerings from Toei, it is clear that this expansion strategy represents a transformative moment for the company and the industry at large. With careful execution, Toei Animation is set to prove that the sky is not the limit; it is just the beginning.<\/p>\n

Toei Animation’s CEO recently outlined the company’s ambitious $2 billion expansion strategy, emphasizing its commitment to growth and innovation in the global animation market. This move reflects Toei’s desire to enhance its production capabilities, expand its intellectual property portfolio, and explore new distribution channels.<\/p>\n

The CEO highlighted plans to invest in state-of-the-art technology and nurture talent within the industry, aiming to create high-quality content that can compete on an international scale. Additionally, the strategy includes forging partnerships with streaming platforms to increase accessibility and reach a broader audience.<\/p>\n

Toei Animation, known for its iconic franchises, is also focusing on diversifying its offerings beyond traditional anime, venturing into areas like live-action adaptations and collaborations with other media art forms. By leveraging its rich history and adapting to market trends, Toei aims to solidify its position as a leader in the animation industry.<\/p>\n

Overall, Toei Animation’s strategic direction signifies a forward-thinking approach that aims to resonate with both new and existing fans while also capitalizing on the growing demand for animated content worldwide.<\/p>\n

Tm-En-8<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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