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

Chapter 2
Co-production System in Japan Development of Co-production System and Its Structure
companies from various industries started to invest in films. However,
several companies investing in a film at the time was to avert risk rather
than to take advantage and supplement each other’s skills. This trend for
a production committee started to carry a different purpose when film
production investment even by several companies was facing serious
challenges after the burst of the bubble in 1989. It started to be comprised
of companies that would financially gain from its participation. The film
company would theatrically release the film, the publisher would publish
the original story, the video company would sell the video of the film, the
advertisement company would publicize as well as TV and radio networks
would broadcast or advertise the film. The said members advertised the
film using their own medium, creating a synergetic effect. Today the
production committees comprised of such members are involved in the
production of most of the films from major to independent ones. As such,
a production committee consisting of major film companies, TV networks
and publishers that can utilize their networks and advertisement skills, in
most cases would lead the film it produces to a greater success. On the
other hand, the films produced out of this system can hardly become great
hits.
The administrative company and other participating companies of
the production committee carry out film production through consensual
decision-making. The production committee is the copyright holder of the
film, and sales are divided among its members according to the investment
ratio. For example, TV networks and video companies that are members
of the production committee must purchase the right to broadcast and the
right for video distribution from the production committee respectively.
The TV networks and video companies then receive dividends based on
their investment ratio from the right fees they paid earlier.
The advantage of forming a production committee is that companies
with strong networks and financial capability come together and multiply
their resources. On the other hand, one of the disadvantages of a production
committee is that decision-making takes time and lacks the capacity to
flexibly respond to unexpected problems.
Japanese production committees have had issues when engaged in
an international co-production of films with overseas companies. This is
because when the producer of the partner company from overseas and the
producer of the managing company representing the production committee
jointly produce a film, the approval of the production committee must be
obtained for any changes made in the storyline, cast, etc. The producer of
the managing company holds a decision-making power to some degree,
but approval of the production committee must be obtained for major
changes. In this respect, the production committee system practiced in
Japan faces difficulties when producing a film with a partner company
from overseas. For example, in Korea and China the director on the set has
a strong decision-making power, or in Europe and the US the producer has
a strong decision-making power.
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