by Toho, a film distribution company, is on a roll. In Japan, they have made Science SARU. This animation production company worked on Naoko Yamada’s “The Color of You,” a wholly owned subsidiary, and invested in CoMix Wave Film, which worked on Makoto Shinkai’s “Sparrow’s Door Lock.”
Overseas, they have made GKIDS, the distribution company that distributed Hayao Miyazaki’s “How Do You Live?” in North America, and paved the way for the film to win an Academy Award, a wholly owned subsidiary. They are strengthening their presence as a film production company. In the second quarter (interim) financial results for the fiscal year ending February 2024, Toho’s operating income and operating profits reached record highs, and the company is on a solid footing in profits. Where will Toho head from now on?
“GKIDS” is a distribution company that distributes Studio Ghibli, Makoto Shinkai, and Mamoru Hosoda in North America. The news announced on October 15th in the United States shook the local video industry and surprised anime fans. GKIDS, which distributes anime works mainly in North America, announced that it would transfer its shares to Toho and become a 100% subsidiary. Major media such as The Hollywood Reporter and ABC, one of the three major networks, responded immediately to this event.
It had such an impact because GKIDS has secured a solid position in the North American anime industry. While taking over the distribution of Studio Ghibli’s works in North America, which the Walt Disney Company had long handled, it also distributes works directed by Masaaki Yuasa, such as “Mind Game” and “Lu Over the Wall.”
The company has opened up the market by introducing top Japanese anime works, such as those directed by Mamoru Hosoda and Makoto Shinkai, to North America, one after another, becoming an indispensable distribution company for local anime fans.
The spread of online distribution has made it easier to access Japanese anime works, and the atmosphere of “I want to see more!” has also been a driving force. Talk of acquisition by Toho has come up. By linking Toho’s strengthening measures in the anime field to domestic strengthening, a vital road has been created for anime works to go from Japan to North America and then to the world, raising local expectations.
Toho makes the anime business its “fourth pillar.” In live-action films, Toho International distributed “Godzilla-1.0” to North America, winning the first Visual Effects Award for a Japanese work at the 96th Academy Awards. Such overseas expansion is now a significant pillar of Toho’s management. Suppose a steady audience increase is not expected in Japan, where the birth rate is declining, and the population is aging. In that case, it is only natural for a company to try to find a way overseas. Characters with solid overseas fans, such as Godzilla, are being used in Toho’s productions and “lent” to overseas productions to increase their recognition further and expand their use, including older works.
However, if they try to create a live-action work that will be a global hit, they are at a disadvantage because they face Hollywood’s colossal capital. In the case of anime, they already have a long track record and a considerable number of fans overseas, and with this tailwind, they can expect to expand even more than they are now.
In 2022, Toho formulated the “TOHO VISION 2032 Toho Group Management Strategy,” setting out to make the anime business the “fourth pillar” in the “Long-term Vision 2023. ” They also listed the anime business as an item in the “Medium-term Management Plan 2025,” indicating their intention to work on it with details such as “active investment in planning and development,” “strengthening overseas expansion,” and “utilizing digital technology.”
The acquisition of GKIDS as a wholly owned subsidiary can be said to implement “strengthening overseas expansion.” Another measure in line with “active investment in planning and development” is the investment in animation production companies, which has been actively promoted recently. In 2022, the company took over the video production company established by CG production company Anima and renamed it TOHO Animation Studio. It produced “The Apothecary Diaries,” an unprecedented hit in collaboration with OLM.
In 2024, Science SARU was made a wholly-owned subsidiary and immediately released “The Color of You” through Toho distribution. It has established a system that can handle the entire video production process, from animation production to production, in the sense of investment, production, and distribution.
The Color of You was involved from the planning stage with STORY Inc., founded by Kawamura Genki and Furusawa Yoshihiro, Toho’s film producers. It can be seen as a work that embodies the philosophy of “TOHO VISION 2032.”
In addition, GKIDS has decided to distribute “The Color of You” in North America. Toho’s system of taking the initiative to expand overseas is attractive to Japanese creators and anime production companies with global ambitions. More and more places may start bringing in their ideas.
