Toei Animation, the Japanese studio behind “Dragon Ball,” “Slam Dunk” and the “One Piece” cartoon franchises, is planning to open a European office in Italy. That may be followed by others in Latin America and India as well as a ramp up of its international production.
The group already has a handful of overseas regional offices covering Asia, the Americas and Australasia, and Europe-Middle East and Africa (EMEA). But the group believes that there is more business to be had from the lucrative European market, which the Italy office would service.
Speaking at an event within TIFFCOM, the three-day rights market that aligns with the Tokyo International Film Festival. Senior executive, Shinohara Satoshi said, “At times this has been a contrarian approach. We value the responsiveness and speed that you get with local offices.”
He explained that having a sales function in India would be hugely significant and that one in Mexico serving Latin America would be a “game changer.”
Shinohara explained that the once inward-looking Japanese giant has come to a better understanding of international markets, their appetite for anime content, and the ability to localize and re-use its IP.
Its international revenue has climbed from less than 20% in 2012 to more than 60% in 2021. “The bigger the addressable market, the bigger the potential for content investment,” said Shinohara.
Group revenues last year were $658 million. But with a large portion of that arriving in the form of fees, profit margins are high. It declared net income of $157 million.
He said that the group is learning from its mistakes and will not give up on “contrarian” or difficult bets. These include its excessive financial commitment to last year’s live action adaptation of Toei Animation’s “Saint Seiya” animation franchise, which Shinohara described as a “spectacular failure.”
Other international film projects in the works include “Le College Noir,” with France’s La Cachette, another with Studio N in South Korea, and “Hana no Ko Lunlun,” a Chinese production with Tencent Video. This week it also announced its participation in Philippines-produced “Solemn Vow.”