Japan Animation Industry Trends

Industrial Report

(C) JETRO Japan Economic Monthly, June 2005

Japan Animation Industry Trends

Japanese Economy Division

Summary

Japanese animation is in the spotlight not only in Japan, but overseas as well. Amid an expanding

domestic market for films, television and videos, Japanese animation film producers have also been

turning their eyes toward overseas markets. At the same time, new developments have been seen in

terms of diversified funding methods for film production. Against this background, the Japanese

animation industry is working hard to deal with shortages in certain human-resource skills, reductions

in domestic film-production sites and the challenge of expanding operations overseas.

1. Market Overview

Japanese Animation Market in 2004

The talk of the Japan animation market in 2004 was Studio Ghibli’s smash hit, Howl’s

Moving Castle, the studio’s first new release in three years, which opened in November. Director

Hayao Miyazaki’s work exceeded 10 million viewers in just 44 days, faster than any movie in Japan.

Its popularity continued thereafter, with viewers rising to 14.23 million as of March 8, 2005, breaking

the mark set by Miyazaki’s Princess Mononoke and placing it number two in Japanese film history.

The question now is how close it will get to Japan’s all-time record of 23.5 million set by Spirited

Away. Howl’s Moving Castle has also been shown in South Korea and other countries, including 60

cities across the U.S. beginning in June 2005.

Market Environment

Japanese animation (“anime”) has been acclaimed worldwide for its original, Japan-based

culture and content, to the extent that it is called “Japanimation.” Director Mamoru Oshii’s animated

film Innocence was nominated for an award at the 57th Cannes film festival in 2004. Innocence is the

sequel to Ghost in the Shell (1995), which reached number one on Billboard’s video chart in the

United States. Miyazaki’s Spirited Away won the feature length animation...