Message from the Senior Managing Director
Business Model Centered on Intellectual Properties
Creating an Intellectual Property-Centered Business Model
Through a process of trial and error, the Group has sought to create appealing intellectual properties by redeploying personnel and reorganizing. The benefits of these efforts are emerging steadily. However, as we have taken on the challenge of creating major intellectual properties, we have kept in mind that doing so is not a simple process.
One such initiative is the comic magazine HERO’S Monthly. The animations of works included in this magazine has begun. Rather than resulting from initiatives to date, such image reflects an increase in opportunities to take on challenges based on these initiatives. Taking on challenges sometimes heightens intellectual properties’ value, and sometimes it does not. What is important, however, is increasing the success rate of our efforts as much as possible by forming tie-ups with outside partners who have outstanding capabilities. If, based on works from the magazine, we can create hit works in other formats, the magazine’s value will change. And, our business model will become more meaningful. We feel the potential for this scenario to become a reality is considerable.
Developing Far-Sighted Intellectual Property Strategies
Basic Strategy
We will further heighten corporate value and increase the percentage of original intellectual properties in our portfolio by creating intellectual properties, heightening their value through cross-media rollouts, and monetizing them.
Although the comic magazine HERO’S Monthly will continue to lead our creation of original intellectual properties, for games and other platforms we will form alliances with other companies and begin creating original intellectual properties. Acquiring the capability to lead original intellectual property creation for any platform will be a major advance in Fields’ evolution.
Furthermore, we will link existing business fields to establish an integrated business model that creates new value. We believe this initiative will be extremely important for the entertainment industry going forward. Also, we will constantly explore new approaches to creating, cultivating, and monetizing intellectual properties.
Intellectual Property Creation
Each year, numerous novels and comics are published, and hundreds of animations are released. In addition, recent years have seen the marketing of a large number of new social game titles. As smartphones and tablets become ubiquitous, the social game platform is becoming an increasingly large business opportunity. Therefore, beginning with publications and then creating animiations is no longer a hard-and-fast rule. Social games provide the opportunity to simultaneously create and monetize intellectual properties. Furthermore, social games have a strong affinity with pachinko and pachislot machines, which are Fields’ highest earners. Consequently, social games enable us to increase production efficiency and transplant them with their gameplay excitement intact to pachinko and pachislot machines.
Thus, there is no single way to create intellectual properties, which means, as mentioned above, we have to constantly explore new approaches to creating and cultivating intellectual properties.
Tasks Related to Cross-Media Rollouts
At present in the Japan market, intellectual properties with strong endorsement could originate from any media or field, including comics, animes, movies, games, or pachinko and pachislot machines. In addition, we have to realize that cross-media rollouts of highly popular intellectual properties are now a matter of course.
Going forward, we should not try to imitate successful initiatives blindly. Instead, all personnel must think about cross-media rollouts one or two steps in advance and devise initiatives through a continuous process of trial and error.
Another task is keeping in mind such overseas markets as Asia, North America, and Europe as we develop initiatives. Even if they succeed, intellectual properties only targeting the Japan market limit expansion potential. To advance cross-media rollouts to their second and third stheps-when considerting intellectual properties based in the Japan market that we hope to introduce overseas-we must keep in mind, for example, how we plan to localize intellectual properties.
Implementing Strategies for the Ultraman Series as a Major Intellectual Property
Because the Ultraman series enjoys overwhelming competitive strength as an intellectual property targeting 3 generations, we will develop it as a separate product category, including works suitable for the active senior generation.
Overseas rollouts will not simply entail selling old animations. As in Japan, we want to incorporate a lineup of new works and build a system for cross-media rollouts. As part of these efforts, we have posted an employee to Indonesia, who is conducting multifaceted analysis and negotiations.
Furthermore, we are focusing efforts on live shows as a new component of cross-media rollouts. We want to create a new monetized system based on the production of shows children and adults can enjoy by using projection mapping, which is a leadingedge image-representation technology that enables the combining of live performances and animations.
Sending a Message to Shareholders and Other Investors
We view the fiscal year ending March 31, 2015, as a year for realizing our ideas and the seeds we have sown. We will monetize projects that warrant it and implement cross-media rollouts of intellectual properties with a view to reaping future benefits. Medium-to-long-term initiatives and preparations to advance the Group toward its next phase are progressing steadily.
With this in mind, we ask our stakeholders to expect growth and continue their support.