Review of Fields’ Business Activities

Overview by Field—Progress of the “Developing Business Model” Strategy

As a medium-to-long-term growth strategy, the Group aims to sustain growth by focusing on such IP as characters and maximizing the value of acquired, owned, and created IP. The Group is making the fullest use of expertise it has cultivated through IP development and the networks of creative and business partners to cultivate and commercialize IP through partnerships.

“Developing Business Model” Strategy

Comics

We have positioned comics as our source of in-house IP creation. In this field we are developing the stories and characters that form the basis of cross-media rollouts.

As of March 2014, the comic magazine HERO’S Monthly, which creates content based on heroes, has included 42 works, and we have published 24 volumes of the comic book HERO’S Comics. Among these IP, the comic book ULTRAMAN has published 4 volumes of the comic book series, which has sold more than 1 million copies to date and is expanding its fan base steadily.

Furthermore, we are advancing joint projects with partner companies to roll out comic adaptations of IP other than hero characters.

HERO’S

Animations, Movies/TV

In the animations field, we are taking advantage of leading-edge technology to digitize IP, which we are popularizing and adding value to through movies/TV.

In April 2013, we began broadcasting GINGA KIKOTAI: Majestic Prince. Also, we are accelerating various initiatives to create animations and movies based on works created for the comic magazine HERO’S Monthly. For example, in collaboration with a Hollywood movie production company, The Bedford Falls Productions of the United States, we have begun developing a script for a movie that we hope to roll out overseas. The movie is based on SOUL ReVIVER, an original work by Tohru Fujisawa, acclaimed for the GTO comic book, that has original drawings by Manabu Akishige.

CROSS ANGE Rondo of Angel and Dragon

Also, with partner companies we are animating such comic works as BERSERK and RED EYES SWORD. Furthermore, our joint initiatives are developing original anime content that includes KILL la KILL and CROSS ANGE Rondo of Angel and Dragon. Other initiatives include plans to roll out an animation based on a novel originating from Twitter, NINJA SLAYER, in 2015.

Regarding the Ultraman series, an IP we own, we will continue the new Ultraman Ginga TV series that began airing in July 2013 by broadcasting Ultraman Ginga S from July 2014. Through this series we aim to heighten the IP’s value.

Ultraman Ginga S

Merchandising

In the merchandising field, we are cultivating IP and using them to generate earnings.

As for interactive media, in response to the rapid shift in distribution formats from web apps to native apps in the social game market, we reformed the earnings structure by narrowing down the lineup and improving the efficiency of operational and developmental systems. Furthermore, ongoing service AKB48 Stage Fighter performed steadily. And, AKB48 Music Game, released in May 2014, made a strong start–reaching 1million downloads only 2 months after the service debuted.

AKB48 Music Game

Regarding consumer products, we marketed various goods in 23 regions worldwide. We obtained the rights as a license agent in Japan for UGLYDOLL, which is particularly popular in the United States. In Japan, we will conduct marketing and branding, develop relationships with new licensors, roll out goods, and build distribution channels.

In relation to pachinko and pachislot machines, we strengthened collaborative development of machines with subsidiaries to expand and improve the product lineup over the medium-to-long term. Furthermore, to provide high-quality products stably, keep existing fans, and attract new customers, we announced alliances with NANASHOW Corporation and D-light Co., Ltd., in May 2014.

UGLYDOLL

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