Contents and digital business domain
For explanatory materials, please refer to "Financial presentation for the fiscal year ended March 31, 2022 and medium-term management plan (FY2022 - FY2024) ".
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History of TPC since joining the our group
TPC became a member of the Group in 2010 and has since developed their business under various management reforms and strategies.
TPC’s IP business with growth opportunities in the global content market
Currently, Japanese content is highly regarded overseas. Further, the U.S. and Chinese content markets are much larger than in Japan, and we believe that there are significant growth opportunities for TPC’s IP business.
TPC’s revenue model
The MD and licensing business accounts for a large percentage of both domestic and overseas sales. In particular, toys and apparel account for the majority of merchandise, and others including food, has been growing in recent years. MD also accounts for a large percentage of the overseas market, and we are developing its business through partners in various regions, agencies, and other organizations. In addition, licensing is growing, with increased use in TV commercials and collaboration on games, etc. in response to the increased value of Ultraman IP. The video business will also expand through the distribution of various video titles, including the film SHIN ULTRAMAN released on May 13, 2022. The digital business is a growth area for the future.
Main sources of revenue in the contents and digital business
The figure shows the sales components of two companies, TPC and DF, in each fiscal year. The majority of the MD licensing and video businesses are accounted for by TPC, and most of DF’s net sales are included in the digital domain business.
A. MD licensing business (domestic)
In addition to expanding the domestic broadcasting area for TPC’s works, various measures have been effective, such as strengthening exposure in owned media such as YouTube official channels and TSUBURAYA IMAGINATION, and MD licensing sales are trending steadily. Other, TPC is working to strengthen touch points through collaborations with various companies and retail strategies.
B. MD licensing business (China)
The effects of various long-standing measures and anti-piracy measures in the development of China have been steadily appearing as a result. In particular, the number of toys such as cards that can be purchased through low unit cost and apparel-related licensees is trending upward, increasing by 50 companies from the previous year. In addition, TPC has created a virtuous cycle in which continued exposure and increased awareness of the works lead to an expansion of fans and licensees, as evidenced by the fact that a total of more than 120 billion viewers have viewed about 60 titles distributed through major distribution platforms.
B. MD licensing business (other Asian regions)
Currently, TPC is working with YouTube official channels and local TV companies to expand awareness of Ultraman IP. It boasts extremely high recognition in Indonesia, Malaysia, Thailand, and Singapore, and still sees growth potential.
B. MD licensing business (North America)
TPC intends to cultivate the North American market throughout the period of the mid-term plan. The 2018 winning ruling made it possible for TPC to expand globally in earnest, and we are currently building a foundation to cultivate the market. There are also many people who have nurtured Ultraman in the North American region, and in order to create new fans in addition to these people, TPC will create and actively develop new contents. The Company has already announced a Netflix title, ULTRAMAN (ILM production), but the timing of the distribution of this title is expected to be from FY2024 onward, and it is considered that this time will be a leap forward in the North American marketplace.
C. Imaging products business
Currently, TPC is broadcasting TV series for the kids/ family in various regions, and in addition to this, we will develop various new generation works in each region. In addition, TPC plans to expand its business from a Netflix perspective and increase the number of other TV series, anime, etc., but the timing of the release of the titles described is only a guideline.
D. Potential of the digital domain and DF
As our growth field, we will develop digital domain business by combining IP and technologies possessed by Tsuburaya Productions and Digital Frontier.
Setting targets for content and digital business in the mid-term plan
In the content and digital segment, by growing the MD licensing and digital domain businesses through the aforementioned initiatives and the cultivation of the North American market, the Company intends to achieve its numerical target of operating profit of ¥3 billion in FY2024. In the imaging products business, the Company will continue to enhance the branding power of Ultraman while working to achieve profitability.
