Insights from TIFFCOM Seminar

 

At a TIFFCOM seminar, Cai Gongming, the founder of Chinese distributor Road Pictures, discussed how his company has successfully established Japanese anime as a leading film import category in mainland China. While Chinese audiences continue to prefer local Chinese-language films, Cai noted that Hollywood is gradually regaining traction in the market this year.

2023 Box Office Success

 

In 2023, Road Pictures achieved significant success with Japanese anime films such as Suzume, which earned $117 million, and The First Slam Dunk, which grossed approximately $75 million. Consequently, the total box office for this category in China surged by 90% year-on-year.

Performance and Trends

 

Cai indicated that the combined box office for Japanese anime films remains consistent with 2023 figures, although the average revenue per film is lower due to a higher volume of releases. Major hits for Road Pictures included Spy x Family Code: White at around $40 million and the re-release of Your Name with $19 million. The highest-grossing Japanese anime this year is The Boy And The Heron from Studio Ghibli, released by Alibaba Pictures, which has earned $110 million.

Factors Contributing to Success

 

Cai explained that Japanese anime’s popularity is largely due to its recognized intellectual properties (IPs), which resonate with younger audiences who have been exposed to these stories through various channels over the years. In contrast, Japanese live-action films struggle with less recognition among Chinese viewers.

Arthouse Films and Marketing Strategies

 

While Japanese arthouse films can perform well, they have a revenue ceiling. Road Pictures’ release of Shoplifters, which won the Cannes Palme d’Or in 2018, remains the top-grossing Japanese arthouse film in China at around $14 million.

 

Cai attributes the success of Japanese anime to proactive marketing strategies, including an “integrated business strategy” that combines film distribution with the new venture GuGuGuGu, which encompasses merchandising, physical stores, live events, and IP exploitation. So far, they have opened approximately six standalone GuGuGuGu Home stores and an additional 40 in cinemas.

 

“Chinese audiences expect this integrated service,” Cai said, emphasizing that fans want a complete experience that includes merchandise and socializing beyond merely watching the film.

Market Dynamics and Future Outlook

 

Cai remarked on the overall Chinese market, noting that imported films had nearly a 47% market share before the pandemic, which has now dropped below 20%. In 2022, around 70-80 foreign films were imported, including revenue-sharing Hollywood titles and flat-fee films.

 

Despite a decline in Hollywood’s market share post-pandemic, Cai observed early signs of recovery, with titles like Alien: Romulus earning $110 million, surpassing expectations, alongside ongoing re-releases of the Harry Potter films.

 

“Japanese anime thrives in China due to its dedicated fanbase, which extends to TV series and merchandise. In contrast, Hollywood is less active and has been losing younger viewers,” Cai noted.

Regulatory Environment

 

Cai also discussed the regulatory landscape in China, mentioning challenges in obtaining approvals from Japanese production companies. However, he pointed out that Japan’s production committee system offers a more coordinated approach compared to China’s fragmented IP management.

 

Currently, there are fewer restrictions on film quotas and import numbers, reflecting a growing demand for diverse content. He noted a potential relaxation of censorship for certain genres, citing Alien: Romulus as a surprising success in passing regulatory scrutiny.

 

“The easing of censorship for genre films is promising, as audiences seek varied content, and regulators are responding to this demand,” Cai concluded.

 

Persons

Cai Gongming, Hirokazu Kore-eda

Company Names

Road Pictures, Studio Ghibli, Alibaba Pictures

Titles

Suzume, The First Slam Dunk, Spy x Family Code: White, Your Name, Shoplifters, One Piece, Alien: Romulus, Harry Potter franchise, The Pig, The Snake And The Pigeon

Disclaimer: This story has not been edited by Vitrina staff and is auto-generated from a syndicated feed.