This is a guide to Japan market entry for the entertainment industry. Entering Japan’s entertainment industry involves more than translating a product, proposal, or presentation. Whether the business is games, anime, collectible figures, film, or television, companies need to identify the right people and understand how decisions are made once a conversation begins.

At GPE, we think of those challenges in two connected parts: access and understanding.

Access means reaching the companies, partners, and decision-makers relevant to a project. Understanding means recognizing how expectations, concerns, approvals, and disagreements are communicated across different business cultures.

Japan’s entertainment sector presents substantial opportunities. According to Japan’s Ministry of Economy, Trade and Industry, overseas sales of Japanese content increased from ¥4.7 trillion in 2022 to ¥5.8 trillion in 2023, an increase of 23.2 percent. The Japanese government has set a target of ¥20 trillion in overseas content sales by 2033, with an interim target of ¥10 trillion by 2028.

Government data for 2022 shows how important games and anime are to that international business. Games represented 59 percent of Japanese content sales overseas that year, while anime represented 31 percent.

For companies considering Japan, however, market size is only part of the equation. Each entertainment sector has its own commercial structures, relationships, and decision-making processes. Depending on how a company structures its entry, such as through an acquisition or a significant investment, Japan’s foreign investment screening process can also apply.

Access and understanding need to work together

Having access to a market does not necessarily mean understanding how to operate effectively within it.

For GPE, this distinction is particularly important. A company may have contacts in Japan but still encounter difficulties because expectations, decision-making processes, or communication styles differ from what its team is accustomed to.

Funko provides a useful example of how an international entertainment company structured its Japanese distribution.

In February 2020, Funko announced that Bandai would become the exclusive distributor of Funko products across Japan, with Bandai taking full control of the distribution channel later that year.

Importantly, this was not Funko’s first presence in Japan. Hot Toys Japan had maintained a Japanese agency relationship with Funko since fiscal 2012 before announcing that the agreement would end in September 2020.

The Bandai agreement is therefore better understood as a change in Funko’s Japanese distribution strategy rather than its initial entry into the country.

The lesson is not that every foreign company needs the same kind of Japanese partner. It is that distribution structure, existing relationships, and local capabilities should be considered as part of a market-entry strategy.

Games: specialization and relationships matter

Market entry in games can involve publishing, licensing, localization, development, outsourcing, distribution, or a combination of these activities.

Commercial structures can vary depending on the title, rights involved, territory, platform, companies, and nature of the project. Companies should therefore be cautious about treating a single royalty rate, minimum guarantee, or deal structure as an industry standard.

XSEED Games provides one example of a company that built a long-term position around publishing games for the North American market.

XSEED was formed in November 2004 by a small group of industry veterans. Today it operates as a publishing brand of Marvelous USA.

Its releases have included Retro Game Challenge, which XSEED published in North America for Nintendo DS in February 2009.

Atlus provides another example of long-term specialization in bringing Japanese content to Western players.

According to Atlus, its American operation was established in 1991 with the mission of introducing high-quality video games to North America. The company says it subsequently gained recognition for its localization of Japanese content and became particularly associated with role-playing franchises including Shin Megami Tensei and Persona.

These examples do not establish a universal formula for success in games. They do demonstrate how specialization and accumulated experience can become part of a company’s position in the market.

Games are also where GPE has its deepest direct experience.

Through participation in industry events including BitSummit and Tokyo Game Show, as well as coordination work involving art direction, asset production, and communication between Japanese and North American teams, we have seen problems develop even when language itself is not the primary obstacle.

In our experience, feedback can be interpreted differently across teams, expectations surrounding scope changes may not always align, and approval processes can create confusion when the parties assume they are working from the same expectations.

These are not necessarily translation problems. They can also be production and communication problems. Identifying those differences early can reduce unnecessary misunderstanding and rework.

Anime: understand the production structure

One important feature of the Japanese anime business is the production committee system, commonly known as the seisaku iinkai model.

The model allows multiple companies to participate in financing a production rather than placing the entire investment with one company. Academic research describes the system as becoming increasingly common in anime from the 1990s onward.

A historical estimate cited in academic research found that by 2010 nearly 80 percent of animation was being produced through a production committee structure. This is a historical figure and should not be interpreted as the exact share of anime produced this way today.

Under the production committee model, multiple companies can contribute to a production budget, with participation in copyright interests connected to investment. The exact composition, rights, and contractual arrangements can vary by project.

That distinction matters when discussing rights.

Companies entering an anime licensing or production conversation should not assume that one organization necessarily controls every commercial right connected to a property. The appropriate counterparty depends on the property, the rights being discussed, and the contractual structure behind the production.

Netflix provides an example of an international company establishing ongoing relationships with anime production companies.

In October 2020, Netflix announced production-line partnerships with three Japanese production companies: ANIMA & COMPANY, which owns NAZ, Science SARU, and MAPPA. It also announced a partnership with Studio Mir in Korea.

Netflix described the partnerships as a way to work with creators, promote talent development, and provide support throughout production. The company had previously established non-exclusive production-line partnerships with other Japanese production companies in 2018 and 2019.

For GPE, the relevant strategic lesson is that relationships can have value beyond a single transaction. The appropriate structure, however, depends on the companies, rights, and project involved.

Companies negotiating anime rights should also obtain legal advice from counsel experienced in the relevant Japanese entertainment and intellectual-property structures. Cross-cultural coordination and business introductions can support a relationship, but they do not replace specialist legal advice.

Collectible figures: understand the full business chain

A foreign company considering Japan’s collectible-figure business needs to look beyond the product itself.

Depending on the project, relevant considerations can include IP rights, licensing, manufacturing, distribution, retail relationships, marketing, and demand planning.

There is no single production or licensing model that applies to every Japanese manufacturer, licensor, or product. Commercial terms depend on the property, product category, production scale, rights involved, territory, and counterparties.

Companies should therefore be cautious about relying on generalized figures for minimum guarantees, royalty rates, tooling costs, production quantities, or margins without understanding the specific deal behind them.

Funko’s relationship with Bandai provides a useful real-world example of the importance of distribution.

In 2020, Funko appointed Bandai as its exclusive distributor across Japan. Rather than treating distribution as an afterthought, the agreement placed an established Japanese toy company directly within Funko’s Japanese distribution structure.

For a foreign collectibles company, the strategic question is therefore not simply whether Japan has potential. It is what combination of licensing, manufacturing, distribution, retail, and market relationships the particular product requires.

Film and television: a major shift in theatrical distribution

The Japanese theatrical market provides a recent example of a major international entertainment company changing its local operating model.

Warner Bros. Japan ended its own theatrical distribution operations in Japan on December 31, 2025. Warner Bros. stated that its theatrical history in Japan dated back to 1925.

Beginning in 2026, the distribution structure for Warner Bros. foreign films changed. Toho states that TOHO-TOWA entered into an agreement with Warner Bros. Motion Picture Group for theatrical distribution in Japan, with Towa Pictures handling promotion and Toho handling theatrical sales.

Toho’s 2026 distribution materials list Warner Bros. titles including Wuthering Heights, The Bride! and Supergirl among films being handled through the new structure.

The change comes at a time when Japanese films account for the majority of Japan’s box-office revenue.

According to the Motion Picture Producers Association of Japan, Japanese films accounted for 75.3 percent of Japanese box-office revenue in 2024, while foreign films accounted for 24.7 percent.

In 2025, the shares were 75.6 percent for Japanese films and 24.4 percent for foreign films.

Those figures do not mean foreign films cannot succeed in Japan, nor does Warner Bros.’ decision prove that every international company should use a Japanese distributor.

What it does demonstrate is that even a global entertainment company with a century of history in Japan can decide to change its local distribution structure and work through established Japanese companies.

For companies considering the Japanese film market, distribution strategy should therefore be treated as an important market-entry decision rather than an operational detail.

What this means for your Japan market entry strategy

Games, anime, collectible figures, film, and television do not operate according to one common business model.

Games can involve specialized publishing, development, localization, licensing, and outsourcing relationships.

Anime can involve production committees and rights structures that vary by project.

Collectible figures can involve multiple relationships across licensing, manufacturing, distribution, and retail.

Film has its own theatrical distribution networks and commercial relationships.

What connects these sectors is the need to understand who is relevant to the decision you are trying to make, how the particular business structure works, and what relationships are needed to move the project forward.

That is what GPE means by combining access with understanding.

GPE’s deepest direct track record is in games and cross-cultural production coordination between Japanese and international teams. We do not claim identical experience across every entertainment sector discussed in this guide.

What we bring across these areas is experience working between Japanese and international business cultures and helping companies identify communication gaps, clarify expectations, establish relevant connections, and reduce avoidable misunderstandings.

If your company is exploring opportunities in Japan and needs help identifying the right entry point, partner, or communication approach, our Services page explains how GPE can support that process.

Frequently Asked Questions

Do I need a Japanese partner to enter Japan’s entertainment industry?

Not necessarily.

There is no general rule that every foreign entertainment company needs a Japanese partner.

However, an established Japanese partner can provide capabilities or relationships that a foreign company may not already have. Funko’s distribution relationship with Bandai and Warner Bros.’ current theatrical distribution structure provide two examples of international entertainment companies choosing to work with established Japanese companies.

Whether that approach makes sense depends on the sector, project, business model, rights involved, and capabilities the company already has in Japan.

How long does Japan market entry take in entertainment?

There is no reliable industry-wide timetable.

The time required depends on the type of project, counterparties, rights involved, approval processes, and commercial structure.

Companies should therefore establish the relevant decision-makers, rights, approval process, and business requirements before setting a market-entry timeline rather than relying on a generic estimate.

Is Japan’s entertainment industry closed to foreign companies?

It is more accurate to describe the market as having its own business structures than simply as “closed.”

International entertainment companies including Netflix, Funko, and Warner Bros. have established business relationships in Japan.

The challenge for a new entrant is understanding the particular distribution channels, rights relationships, counterparties, and decision-making processes relevant to its business.

Understanding those factors before approaching potential partners can make the market-entry process more focused and reduce avoidable misunderstandings.

Sources

• Ministry of Economy, Trade and Industry, Japan, Trade White Paper 2025.
• Cabinet Secretariat, Government of Japan, Action Plan of the Growth Strategy 2024.
• Funko, “Funko Announces Bandai as Exclusive Distribution Partner Across Japan,” February 14, 2020.
• Hot Toys Japan, “Notice Regarding Termination of Funko Agency Business,” August 28, 2020.
• Marvelous USA, company history and XSEED Games history.
• Marvelous USA, Retro Game Challenge product page.
• Atlus West, company history.
• Hernández-Pérez, Manuel, “The Anime Industry, Networks of Participation, and Environments for the Management of Content in Japan,” Arts, 2018.
• Netflix, “Netflix Bolsters Anime Programming Through New Partnerships with Four Leading Production Houses in Japan and Korea,” October 23, 2020.
• Warner Bros. Japan, announcement regarding the end of theatrical distribution operations in Japan, December 8, 2025.
• Toho Co., Ltd., financial results and film distribution materials, 2025 and 2026.
• Motion Picture Producers Association of Japan, Japanese Film Industry Statistics, 2024 and 2025.

If you’re planning to acquire a stake in a Japanese company, or even just bring on a local partner with equity involved, there’s a regulatory change worth knowing about before you get further down that road.

Short version on Japan foreign investment screening 2026: most smaller companies aren’t the target. But if there’s an agent, intermediary, or holding company anywhere in your deal, check the structure early. The main rules start on January 4, 2027.

Japan updated its Foreign Exchange and Foreign Trade Act (FEFTA) this year. The Diet passed the amendments on May 29, and they were promulgated (formally published as law) on June 5, 2026.

Here’s the timeline so far, based on the Ministry of Finance’s September 16 announcement and its English summary:

• June 5, 2026: the law is promulgated and the new cross-ministry review framework takes effect
• June 29, 2026: the Japan Foreign Investment Committee (JFIC) holds its first meeting
• September 16, 2026: the detailed rules are published
• January 4, 2027: the main changes are scheduled to take effect
• February 3, 2027: full application of the new rules is scheduled

Most of the coverage so far is written for large cross-border M&A teams, dense with legal language that doesn’t tell a smaller company anything useful. Here’s the plain version, and what it means for you.

What’s changing in Japan’s foreign investment screening

Three things, in plain terms.

First, indirect acquisitions will be covered. Before this, some structures that acquired a Japanese company through a foreign holding entity could sit outside the screening process. That gap is closing.

The line is 50% or more of the holding entity for most investors. For higher-risk investors, it’s 1% or more.

Second, a Japanese investor acting under the control or strong influence of a higher-risk foreign party, such as a foreign government or a state-owned company, can be treated as a foreign investor. In plain terms: putting a local name on the deal doesn’t get around the review.

Third, and this is the one worth paying attention to: the government will be able to step in after a deal has closed, even in sectors that didn’t need prior notification. It can ask for reports, then recommend or order remedial measures, including selling the shares (divestment).

This targets higher-risk investors, and the look-back period is five years. Before, screening happened up front and that was largely it. Now the review doesn’t fully end at closing.

Who this is actually aimed at

Here’s the part most of the headlines skip. This reform is aimed at higher-risk investors, especially state-linked ones like sovereign wealth funds, and at sensitive sectors. Think defense, semiconductors, and cybersecurity.

If you’re a creative studio, a services firm, or a general B2B business looking to set up a presence, acquire a small stake in a partner, or bring on a distributor in Japan, you’re very likely not who this law is written for.

That said, “very likely not the target” isn’t the same as “definitely fine”. The rules are getting broader, and the definitions of what counts as a covered transaction are shifting. It’s worth a five-minute check rather than an assumption.

What to do about it

One step, before any acquisition or major investment: get the structure checked early, before you’re committed to a deal shape. This is especially true if there’s any agent, intermediary, or holding company involved anywhere in the chain. That’s where the new rules reach furthest, so it’s the first place to look.

This is also where having someone on the ground who understands the practical Japanese business context earns its keep. A lot of these calls come down to how a structure looks in practice, not just what the text says.

This isn’t legal or tax advice. Talk to qualified counsel before finalizing any transaction structure.

What we can help with is the layer before that: making sure you’re asking your lawyers the right questions, and that nothing gets lost in translation between your team and the Japanese side of the deal. For a look at how market entry support works in practice, see our case study on Japan and North America market entry.

If you’re weighing a market entry move that involves an acquisition, partnership equity, or an intermediary of any kind, start a conversation with us before you bring in counsel.

The first meeting goes well. Both sides seem interested, and sometimes a contract gets signed. At that point, it is understandable to think, “we can take it from here”.

You have the contact, you know what the project involves, and AI can help with the Japanese emails. What else do you need?

For some companies, that setup works well. For others, the difficult part starts after the introduction. Replies become harder to interpret. A request stays open longer than expected. Your team thinks something has been agreed, but the next step never quite happens.

If you are starting your first Japanese partnership, this is worth thinking about early. If you already work with Japanese clients and things have become difficult, it is worth looking at how both sides understand the conversation.

A readable email is a starting point

We use AI tools ourselves. They are useful for getting through a long document, drafting an email, or preparing a first translation. They can save a lot of time, and we are happy to recommend them where they help.

But an email can read well and still leave the recipient unsure about what you need.

For example, your team might write, “Please confirm by Friday so we can move forward”. That is a reasonable request. But if your contact needs approval from several people internally, the email may need to acknowledge that process and explain why Friday matters. It also helps to say what you need confirmed. Are you asking whether the proposal looks reasonable, or whether the company has formally approved it?

A translation alone may leave those questions unresolved.

The same applies when you receive a polite reply saying that something will be considered. That could mean the discussion is moving forward. It could mean your contact needs more information or more time. It could also mean they are reluctant to proceed.

You cannot tell from politeness alone. The useful next step is to clarify what still needs to be reviewed, who needs to be involved, and when it would make sense to follow up.

Know what you are asking the tool to do

If nobody on your team reads Japanese, it can be difficult to judge whether a translation kept the meaning and tone you intended. A request may have become stronger, softer, or less specific than you wanted.

That does not mean you need someone to review every routine email. It does mean you should give more attention to messages where a misunderstanding would be difficult to fix: changes to scope, delivery dates, pricing, complaints, or commitments.

Someone who understands both languages and the business context can help check those points. They can also help your team give the tool better instructions in the first place.

The question is whether the message gives both sides a clear understanding of what happens next.

Build that understanding early

Japanese clients have different working styles, just as North American clients do. You will still need to learn how your particular partner makes decisions, shares feedback, and handles questions.

Early in the relationship, it helps to establish a few things:

• Who is your day-to-day contact, and who approves changes?
• What does each side consider confirmed?
• How should questions or concerns be raised?
• When should you expect an update, and how should you follow up?

These may sound like small details. But when they remain unclear, your team can spend a lot of time waiting, guessing, or repeating a request that the other side is not yet ready to answer.

This is where cross-cultural support can be useful. At Green Path Educational, we help with communication and the context around it, so both sides can understand the request and respond to it.

The aim is to make the working relationship easier to manage. As both teams become familiar with each other, you may need less support for everyday communication. If new people join or the project changes, it may be worth checking those expectations again.

If things have already become difficult

Before sending another follow-up, take a closer look at the last exchange.

What exactly did you ask for? What did the client actually confirm? Is there a decision, a missing piece of information, or an internal review that still needs to happen?

One small suggestion: keep your next email focused on the point you need clarified. Explain why it matters and ask a question your contact can answer.

For example: “To plan our production schedule, could you let us know whether the proposed scope is approved, or whether it still needs internal review? If you need anything further from us, I am happy to help”.

That gives your contact a clear request and room to explain where things stand.

Getting the meeting is important. So is signing the contract. After that, the relationship needs attention from both sides.

If you are unsure where communication with a Japanese client is getting stuck, we are happy to talk through the situation and help you work out the next step.