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The Japanese Market for UK Films - BFI

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EXECUTIVE SUMMARY<br />

1. <strong>Japanese</strong> <strong>Market</strong><br />

<strong>Market</strong> size<br />

<strong>The</strong> <strong>Japanese</strong> film market, with the inclusion of theatrical, DVD, VOD and<br />

television, accounts <strong>for</strong> approximately 10% of the world market and is the<br />

second largest market after the United States. It is by far the largest film<br />

market in Asia. In 2006, the theatrical market in Japan earned 203 billion yen,<br />

(US$1.75 billion), while the total earnings of DVD rental and sales were 669.5<br />

billion yen, (US$5.77 billion). <strong>The</strong> total value of the market including television<br />

sales and VOD business income in Japan is in the region of one trillion yen<br />

(US$8.63 billion.)<br />

Because of the very large number of distribution companies and art house<br />

theatres (there are 22 art house theatres in Tokyo alone), Japan remains the<br />

number one country <strong>for</strong> showcasing films from around the world. <strong>The</strong>re are no<br />

<strong>Japanese</strong> government restrictions on the nationality of imported films. According<br />

to IFTA data, Japan is the second largest market after Germany <strong>for</strong> independent<br />

films. In total Japan imported 404 <strong>for</strong>eign films in 2006, a 7% increase on<br />

20005. <strong>The</strong> maximum scale of <strong>for</strong>eign film release in Japan has been known to<br />

reach 900 screens per picture.<br />

In recent years, new cinemas have been built in Japan to expand the theatrical<br />

market, taking the total to over 3,000 screens, but admissions and box office<br />

receipts remain static. Although Japan is a mature market, smaller distributors<br />

struggle to get their chosen release circuits and dates at multiplex cinemas,<br />

which tend to be dominated by the majors. This situation may lead to a survival<br />

battle between the multiplexes in future.<br />

In contrast, neighbouring countries Korea and China have also increased their<br />

number of screens and succeeded in raising both admissions and box office<br />

receipts. Korea’s theatrical market earns 100 billion yen, (US$863 million /<br />

approximately half of <strong>Japanese</strong> earnings of US$1.75 billion), while the Chinese<br />

theatrical market earns 40 billion yen, (US$345 million / approximately one fifth<br />

4

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