[IP × Business Platform] Matrix Model

Matrix Model

1. Explanation of Matrix Model

(1) Points of customer contact = Cross-media business platform

FIELDS will take one IP, expand it horizontally through various business platforms—our customer contact points—then refine the IP and aim to draw more fans. By simultaneously developing multiple IP in this way, we aim to further increase revenue.
Transforming IP into a series with various contact points such as visuals, games, and, pachinko and pachislot machines, as was done with Ultraman, will allow us to exercise our leverage with the aim for further IP development and earnings expansion. (Figure 1)

(Figure 1) [IP × Business Platform] Matrix Model

(2) Building up more customer contact points

In addition to the expansion of business platforms for each IP through development as shown in the example Figure 2, we aim for further IP cultivation and earnings expansion by building up more verticals in each business platform.

(Figure 2) Building up of more customer contact points in each business platform

(Figure 3) Close up visual business platform

For example, in the visual business platform, there are multiple avenues for deploying media in addition to movies and television, such as Subscription Video on Demand (SVOD). We will build up more verticals by developing a greater variety of customer contact points within each business platform, such as by turning television and movies into series. (Figure 3)
We will aim to expand revenue with an [IP × Business Platform] matrix model, by horizontally expanding business platforms for each IP and building up more verticals for each business platform, while developing multiple IP simultaneously.

2. Implementation of the [IP × Business Platform] matrix model
based on the rebuilt business value chain

We will expand our business as envisaged through the [IP × Business Platform] matrix model based on an organic and well-functioning business value chain. To this end, FIELDS will first focus on rebuilding its business value chain, and will aim to expand revenue through operation of the [IP × Business Platform] matrix model based upon this foundation. (Figure 4)

(Figure 4) Business Value Chain × Matrix Model

[1] IP Strategy

We will drive the following 3 points as our IP strategy.

1. “IP portfolio management” that is not reliant on any specific hit IP
2. Concentrate on IP planning that will succeed in [Reboot × Cross-media]
3. Managed the Group’s entire IP in an integrated manner

1. “IP portfolio management” that is not reliant on any specific hit IP

(1) IP portfolio management

(Figure 5)

Figure 5 shows the positioning of IP which FIELDS has commercialized to date. The vertical axis indicates the “degree of commercialization for FIELDS,” while the horizontal axis shows the “IP creation timing.”

Over the next 3 years in particular, we will focus upon “Recent/Current IP” such as Berserk, GANTZ, and AKB48, which have penetrated the young and adolescent markets, and “Legendary IP” such as Ultraman, which is popular among the middle- to older-age groups.
In addition, FIELDS CORPORATION Group has positioned newly created “Original IP” which aims for “Recent/Current IP” status as experimental IP, and will strive to cultivate these.

(2) IP organization

FIELDS will endeavor to monetize already organized IP, and revise our medium- to long-term portfolio. We will drive selection and focus in an effort to build a portfolio with an outlook for greater revenue.

(Figure 6) Medium-to long-term organization image

(Figure 7)

2. Concentrate on IP planning

We will promote a successful IP plan that combines “Reboots*” of “Recent/Current IP,” and “Legendary IP” with development of “cross-media” for various business platforms.

Definition of IP planning

The act of delving deeply and exhaustively into an IP, and elaborating it into a “plan” that extracts the maximum appeal of the IP, according to the characteristics of the target media
Or conversely, the act of carefully selecting an IP having necessary and adequate conditions for success in the target media (multiple) and format (RPG, etc.), and planning a remake, etc. to optimize the IP in each format of media

Reboot of IP

In general, IP enjoys growth in popularity when it is first released, but later falls out of the limelight. However, there remains a strong awareness with IP that was a big hit initially, therefore by rebooting it, it is possible to achieve leverage and turn it into a significant revenue spinner. (Figure 8)

The main initiatives undertaken by FIELDS in rebooting aim to boost the market value of IP applying new methods and technologies, such as 3D computer graphics, to very popular IP which have reached maturity. Then, by deploying this through various business platforms such as pachinko and pachislot machines, we can create new fans.

(Figure 8)

Works emerging from the focus on IP planning

The TV series ATOM THE BEGINNING, which was developed from the comic magazine “HERO’S Monthly”, is a work created through focus on IP planning together with partner companies. This work is based on a completely new comic that we created, which tells the story of prior to the birth of Astro Boy, a character who debuted in a television series in 1963 and grew into a quintessentially Japanese character. FIELDS is driving growth of IP value by striving to create a new group of fans in addition to the generation which grew up with Astro Boy.

TV anime ATOM THE BIGINNING: Broadcast on NHK from April 2017; Official Website; ©TEZUKA PRODUCTIONS, Masami Yuuki, Tetsuro Kasahara, HERO’S/ATOM THE BEGINNING Project

3. Integrated management of the entire Group’s IP

In April 2017, we established the “IP Marketing Office” under direct control of the President in order to integrate management of the entire Group’s IP. Through this, we created a structure to unify management to select IP, decide the scale of investment for each IP, and manage revenue after investment across the cross-media business and, the pachinko and pachislot business.

We also reset our core indicators from the conventional focus on revenue management by business to a focus on ROI* for each IP. These indicators will be used when making decision related to IP investment based on the business plan of the whole Group, the medium-term business plan for each platform, and progress confirmation. The indicators will also be referred to at the executive board meeting, and at performance evaluations for group companies, while we work to reform management awareness.

IP ROI（Intellectual Property Return On Investment）

*ROI (Return on Investment) : an indicator of profit gained proportional to capital invested

Information on organizational changes is available here.

[2] Business Platform Viewpoint

1. Value chain × Matrix model

(Figure 9)

FIELDS is developing products and services including comics, visuals, games, and pachinko and pachislot machines over a range of platforms. (Figure 9) One of our strengths is that we can expand business while altering its form, in accordance with planning adapted to the specific characteristics of each IP. In addition, pachinko and pachislot machines offer a unique, large-scale business platform, and we aim to expand revenue together with partner businesses while making full use of this platform.

2. Creation of New Business Platforms

We are striving to expand our business platforms in new technological fields, such as virtual reality (VR), starting with the provision of visuals to the 360 degree four-dimensional VR system “4D OH” for “Ultraman Zero VR.”

VR(Virtual Reality)
AI(Artificial Intelligence)
MR(Mixed Reality)
5G(5th Generation)

・・・and more.

3. Promoting Global Business Development

Effective utilization of Ultraman IP for global business development

We are effectively using the well-known Ultraman IP as a sales tool to open doors in the development of global business, driving this in association with local operators in China and other countries. We aim to expand income from licensing, by expanding overseas development of our multiple IP. We will also promote the expansion of live entertainment, especially in Southeast Asia.

Development of collaborative works with U.S. and Chinese distribution companies in visual business

We will develop collaborative productions with U.S. and Chinese visual distributors and advance global distribution. Furthermore, we will accelerate our IP licensing business. In addition to expansion of the visual business, we will use these productions as hook to drive development of merchandising in Asia and other global markets.

Collaborate with global companies in game business

FIELDS will also promote the development of game content leveraging gaming engines developed overseas in collaboration with game companies from outside Japan. We will simultaneously promote both overseas development of gaming content and the expansion of foreign gaming content in Japan.

Win-Win Relationships with Partner Companies

FIELDS will build win-win relationships with all of our business partners, including licensers, pachinko and pachislot machines manufacturers, pachinko hall operators, entertainment companies, and global companies. (Figure 10)

(Figure 10)