The Guide to Japanese Film Industry & Co -Production - UNIJAPAN

Chapter 1
Japan’s Film Industry Overview of the Japanese Box-office for Year 2008
4) Releases increase
While the number of imported film releases in 2008 declined, the number
of Japanese film releases increased. The number of imported film releases
as a downtrend began in 2003. The inventory of imported films purchased
earlier kept the releases of imported films from declining sharply before
2008.
Meanwhile, the releases of Japanese films increased in 2008 as a result
of new entrants to the film industry from other sectors and those who
shifted from the importation/distribution of imported films to production
of Japanese films kept on making films until around the middle of 2007.
When Japanese films produced by new entrants proved to be unsuccessful, it
was not until the summer of 2008 that they began curbing new filmmaking.
The films already under production were completed and released, pushing
up the total number of new releases in 2008. The number of releases of
Japanese films is expected to start falling around the latter half of 2009.
5) Hit indies
Among independent films released in 2008, The Handsome Suit (¥860
million) and Best Wishes for Tomorrow (Ashita e no yuigon) (¥600 million)
by Asmik Ace Entertainment fared well. The Witch of the West Is Dead
(Nishi no majo ga shinda) (¥450 million) and Gu Gu, the Cat (Gu Gu datte
neko de aru) (¥360 million) showed a relatively strong showing as well.
Also noticeable was After School (¥550 million) by The Klockworx,
which showed its presence felt again following Evangelion:1.0 You Are (Not)
Alone (Evangelion shin gekijoban: jo) (¥2 billion), a blockbuster hit in
2007.
Kadokawa Pictures had only one film with box-office takings of ¥300
million or more, Sergeant Keroro The Super Duper Movie 3 — Keroro vs
Keroro The Battle of the Sky — (Cho gekijoban Keroro gunso 3: Keroro vs.
Keroro Tenku daikessen de arimasu!). Expectations are high for inspiring
activity by Kadokawa, a company with a long history of filmmaking.
4. Box-office of Imported Films
1) Sharp drop
In 2008, box-office of imported films fell sharply by ¥24.821 billion from
¥103.798 billion in 2007 to ¥78.977 billion (or 76.08%). The number of
imported films released also fell 15 from 403 in 2007 to 388. Per-film boxoffice
fell sharply to ¥203.54 million from ¥257.56 in 2007.
While films with box-office of over ¥1 billion numbered 25, only three
less than the corresponding number of Japanese films, there were no real
blockbuster hits.
The top performer among imported films in 2008 was Indiana Jones
and the Kingdom of the Crystal Skull with box-office takings of ¥5.71
billion.
2) Audiences
The poor performance of imported films stemmed mainly from the
decline in imported film attendance among younger generations. Serialized
movies like Indiana Jones may encourage generations who have seen old
films to view new ones as well, but are unlikely to win the favor of younger
generations.
Furthermore, imported films that proved to be blockbuster hits in
the rest of the world failed to draw such large audiences in Japan. Such
films as Wanted (¥2.5 billion), Kung Fu Panda (¥2 billion) and The Dark
Knight (¥1.6 billion) drew over four million movie-goers in South Korea,
which has cultural similarities. In Japan, however, these titles were hits with
box-office takings of around ¥5 billion. Even Hollywood movies, middlebudget
or smaller films were generally shown at so-called B Road theaters
(second-tier chains) just like throwaway matches.
Among them, Red Cliff Part 1 (¥5.05 billion) stood out. Many industry
people anticipated a certain measure of success of this film, but never
expected a performance of this magnitude. In particular, not a few people
voiced worries over Avex Marketing, which took an equity stake in the joint
production project with China, an endeavor with very few successful cases
before. It is hoped that the success of this film will help accelerate the trend
toward international joint production activity. For Toho-Towa, which
distributed Red Cliff Part 1, it represented a real breakthrough not seen for
a long time even including Universal films.
3) Stellar showing
Another independent large-budget film, The Golden Compass turned in a
stellar showing with box-office takings of ¥3.75 billion, but the number was
not necessarily satisfactory. Purchasing big-budget films like this would put
independent distributors at big risk, despite large profits expected if they
prove to be major hits.
However, Gaga Communications turned a documentary film Earth
Planet (¥2.4 billion) into a blockbuster, and also saved its face as a major
film importer/distributor with Sex and the City ¥1.7 billion, John Rambo
(¥1 billion) and 3D film Journey to the Center of the Earth (¥850 million).
Among middle-budget films released by independents, My Blueberry
Nights directed by Wong Kar-Wai and released by Asmik Ace Entertainment
was one of strong performers with box-office takings of ¥550 million. Asmik
Ace Entertainment was able to chalk up this number by releasing a Wong
Kar-Wai film, normally released at single cinemas with the focus on artistic
features, through middle-size cinema chains. But a simple expansion of the
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