On August 1, Japanese tech and media company Edia announced a full-scale entry into the anime business. This follows investments as production committee members of Drug Store in Another World – The Slow Life of a Cheat Pharmacist (2021) and The Aristocrat’s Otherworldly Adventure: Serving Gods Who Go Too Far (2023). It also follows rapid M&A activity over the last 10 years, with Edia acquiring music and drama CD production company Team Entertainment, as well as publishing company HIFUMISHOBO. Team Entertainment operates the popular lottery businesses Maru Kuji and Kujikore.
Anime Corner reached out to Edia following the announcement, which saw it pledge significant investment in the anime production of in-house and third-party IPs. We discuss in detail the company’s trajectory, anime production plans, challenges, and successes, and deep dive into the processes within a modern entertainment company aspiring to do everything in-house, from IP acquisition to various monetization strategies.
Q: Edia was founded in 1999, but its book publishing and anime investment activities intensified relatively recently (the last ~8 years). Could you tell readers about Edia’s current lines of business, M&A history, and the strategy that has influenced the business choices and acquisitions that bring us to today?
Edia: Edia has consistently produced content businesses that adapt to the changing social needs since its foundation in 1999, starting from automotive navigation systems for cell phones and PSP™, becoming the pioneer of websites utilizing the navigation system. As smartphones gained popularity, the company transitioned its business model to focus on transmedia development, with the IP business and publishing business as the two core businesses. Regarding IP, we focus on creation and acquisition, and utilization and distribution.
The IP business implements the game development skills and the knowledge learned through the M&A business. Also, with the leverage of our product commercialization business for women by Team Entertainment, and technology development and event business skills from Zerodiv, we aim for maximum profit from the diversification of IP.
HIFUMISHOBO is responsible for the publishing business. Publishing web novels and comic books (manga) has an important role in creating attractive IP that may have the potential to be adapted into anime and games. After the pandemic in 2020, digital books, especially manga, gained high demand both domestically and internationally, becoming an important source for monetization.
The two businesses are closely integrated, aiming to maximize the value of all created/acquired IP within each company. Our M&A is based on the strategy “Creation/Acquisition/Utilization/Distribution of IP” to accelerate the growth of the IP itself.
In 2018, the company [Edia] acquired Team Entertainment to plan the profitability of, and to introduce the skill of IP creation and CD sales targeting women. Today, the online prize draw is the core business. Making HIFUMISHOBO a subsidiary in the middle of the same year, we established the field of IP creation for men through the publishing business. The latest action of acquiring Zerodiv in 2025 is a new move to accelerate the utilization of IP by strengthening within the field of game development, and event management.
Above is how Edia takes in knowledge from different fields and expands its business.
Q: Edia announced last month that it was beginning full-scale investment and participation in anime production committees for its own IP and third-party IP. Can you tell us the specific background to this decision?
Edia: The decision was highly based on the company’s business plan and the goal of Transmedia Storytelling of IP. In other words, to strengthen the growth cycle of IP. The investment and participation in anime production is the most effective action to enhance the value of IP and for the long-term growth of the company.
First, to maximize the value of our company’s IP: IP created in our publishing department has high potential to be adapted into anime. By participating in anime production, the company will most likely be able to pour in a proactive view of the story, and possibly to send off the IP in a way that makes the most of its world. This goes beyond mere licensing; it builds the foundation for successful transmedia expansion across IP businesses, such as game production and merchandise development.
Secondly, the acquisition of other IP: Anime has an important role in developing the value of IP within the business. Participating in anime production will give us an opportunity for the company to be involved in anime production from the planning stage, and also gain a higher chance of securing a spot in our other businesses, such as online prize draws and games. This is an important strategy to differentiate ourselves from other companies, especially in today’s society.
In conclusion, the decision the company made will help us control the growth of the company’s IP and acquire many fascinating IPs out in the world, eventually achieving stable growth of the company.
Q: Will this full-scale anime entry be through investments via HIFUMISHOBO as before, or through Edia, or through different means, including joint funds?
Edia: Our full-scale entry into the anime industry occupies an important position in our business strategy. In principle, all future investments will be led by Edia. There are two major reasons for this decision. First, to strengthen our overall IP business management function. Second, to clarify the decision-making of the business.
Through past M&A, we have established a wide-ranging business foundation, spanning everything from IP creation to utilization, including publishing (HIFUMISHOBO), music and merchandise (Team Entertainment), and game and system development (Zerodiv Edia).
With Edia placed at the center of all of these group companies, which it oversees, we will be able to make swift strategic decisions about how and in which business to develop the IP we acquire through investments in anime production committees.
Secondly, it is to clarify what areas of business we select and concentrate on. By investing directly, Edia will not only provide the content production costs but will also secure the rights to utilize the IP in proportion to its investment ratio, maximizing the effectiveness of our investment. This is an important step for Transmedia Storytelling of IP. Therefore, while Edia will take the lead in investing going forward, each group company will continue to work together to support the growth of the IP in the most optimal way, depending on the characteristics of the IP and the scale of the project.
Q: Edia went from a relatively small investment in the production committee of Drug Store in Another World – The Slow Life of a Cheat Pharmacist, to leading the investment in The Aristocrat’s Otherworldly Adventure: Serving Gods Who Go Too Far, which was quite popular in fan votes and on overseas streaming sites:
- Given that many companies opt to increase their anime investments more slowly over time, was there something about the success of Drug Store in Another World that gave Edia the confidence to take a bigger risk (for example, did the decision to take an increased risk stem from streaming views or anime sales revenue)?
- Was there anything notable about The Aristocrat’s Otherworldly Adventure: Serving Gods Who Go Too Far that supported the decision for the full-scale entry decision (for example, streaming views or other forms of revenue)?
Edia: The investment in The Slow Life of a Cheat Apothecary was executed primarily by HIFUMISHOBO as an initial step for the full-scale anime entry. This helped us understand how offering IP can influence the publishing business.
Through this project, the company learned how anime affects the value of the IP and the operation of anime production, and noticed how anime is important to accelerate the recognition of a specific IP. This successful experience was the main factor in the investment in The Aristocrat’s Otherworldly Adventure: Serving Gods Who Go Too Far.
HIFUMISHOBO made the core investment in The Aristocrat’s Otherworldly Adventure: Serving Gods Who Go Too Far as well, and the popularity led Edia to the decision of a full-scale anime entry. The high number of views on famous streaming platforms in Japan and the high fan votes on overseas streaming sites are evidence of how attractive the title is.
The result of these investments showed how anime can accelerate the value of the IP, and how it can be directly connected to commercializing and producing games. These achievements culminated in the August announcement that the Edia Group would unite to fully enter the anime business.
Q: What have been the major successes and unforeseen challenges that have come from adapting HIFUMISHOBO’s works to anime?
Edia: The biggest success was that we were able to enhance the value of the IP to the world through anime. Anime is a medium that can be spread to many places and to more people. By gaining new fans through the two titles that were adapted into anime, it increased its brand recognition as well. Also, simply joining the anime production committee was a positive outcome. It was a good lesson for the company to know what kind of rights we should hold, and to build new connections.
There are some new challenges the company has to consider moving forward. The complexity of decision-making is one of the challenges to consider. Especially when multiple companies are on the committee, there may be cases where quick decision-making is difficult because of the different opinions each company has. We recognized the importance of communication and coordination for a smooth process.
Another challenge is how to keep the enthusiasm until the premiere date after the announcement of the production. We became keenly aware of the necessity of providing promotional content before and after the anime streaming, such as providing new topics, participating in events, and special programs (YouTube or other streaming platforms) to raise the enthusiasm even more.
The company also faced an issue with core competence. While Edia enlarged its core competence, HIFUMISHOBO had an impact on its publishing business due to devoting time and energy to anime production. Therefore, the company asked HIFUMISHOBO to concentrate on the creation side, with Edia being the investor to amplify the core competency. These challenges are assets for us to move forward in the anime investment and reduce any risks that may come ahead.
Q: Edia’s announcement of full-scale investment saw it pledge tens of millions to hundreds of millions of yen for a single anime production, which could be on the higher end of anime production budgets. Do you have a favorite anime in terms of how much ambition was put into its production? Are there any productions whose quality you hope to match or surpass one day?
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Edia: We would like to remain silent on productions created in the past by other “Senpai” companies. It is not our place to say because we are relatively new in this field. Our goal is not simply to invest a large amount of money. It is to deliver the full potential of the IP produced inside and outside of our company, and provide an environment for creators to immerse themselves in the world of that IP for better creation. We would like to deliver “an unforgettable experience” to all fans, new and original, collaborating from the planning phase with fantastic teams and partners, and eventually produce a major IP that can represent Japan.
Q: Does Edia have specific targets for revenue, annual number of anime titles, etc., in the medium to long term from its anime and IP business expansion?
Edia: At the moment, medium to long-term targets for revenue and the annual number of anime titles are not disclosed. However, we aim to invest several hundred million yen per year and build a solid IP expansion by managing both quality and business potential.
We would rather develop one work carefully and deliver a certain result, than simply produce multiple titles. Therefore, it is difficult to mention the exact number of productions. In the end, we hope to deliver a product that exceeds the expectations of all of the creators who brought the original stories or characters to life, and of course, to continually offer content that people can be satisfied with. We are hoping these initiatives will lead us to long-term growth of the company.
Q: Both of the Edia Group’s past anime production committees included the overseas streaming site Crunchyroll. Are there any challenges in getting accurate streaming data, and how has overseas market data reinforced HIFUMISHOBO’s IP planning and Edia’s anime expansion plans more broadly?
Edia: The engagement and partnership with overseas streaming sites such as Crunchyroll is very important for our company’s global expansion, and we are aware of the challenges of data gathering.
Each streaming site usually collects and provides data based on its own indicators. Conducting the latest analysis, such as viewer demographics and user trends based on that data, is a difficult process. Comparing and analyzing data across multiple platforms in a unified manner is even more complex. Accurately grasping global trends requires specialized expertise and time.
On the other hand, we have a team that translates the IP of our publishing business for overseas markets. This team has data on what works are selling well in each country and region, and what trends are prevalent, giving us a huge advantage in developing our anime business. Because we are aware of not only our own company’s trends but also those of other companies, we have a major advantage in being able to view the international outlook for the anime business through the perspective of trends in manga and goods, and collaborate with each company based on that actual data.
Q: Through Edia’s subsidiaries, what are the trends in terms of genres that you’re seeing from overseas fans of light novels and comics?
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Edia: Through the departments across our group companies, we discovered a tremendous popularity in “Sword & Sorcery” fantasy and ”Villainess“-type romance fantasy, which has seen rapid growth in recent years. “Contemporary youth ensemble drama” based on Japanese culture and ordinary life is continuously popular, inducing empathy. Authentic “military stories” is a genre that is one of the latest trends.
These genres have also been popular in Japan, but with the spread of anime and e-books, we feel that demand all over the world has grown exponentially. We believe this is proof that the universal appeal of Japanese content is being embraced by many people across borders.
Q: What overseas markets is Edia eyeing specifically, and what activities will Edia be intensifying overseas?
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Edia: Of course, North American and European markets are overseas markets we are paying close attention to, but we are also keeping a close eye on the rapid growth in China and Southeast Asia. These markets are necessary for global expansion, recognizing the presence of many fans of Japanese anime content. Here are some points we are planning to strengthen: penetration of IP through anime, reinforcement of localization and marketing, and a diversified approach within the IP department.
Regarding penetration of IP, a full-scale anime entry is the most important measure to reach out to overseas viewers. For localization and marketing, we would like to partner up with local companies and promote the IP to the fullest, not just with simple translations. Finally, diversifying our approaches in the IP department through merchandise and game development for overseas fans. Of course, overseas publishing too. This will eventually maximize the revenue opportunity and solidify the value of our IP.
Our company would love to establish a solid position as a global entertainment corporation and spread its wings to go global with the successful IP we created.
Q: Through subsidiary companies like Maru Kuji and Kujikore, Edia has worked with numerous anime IP holders to produce merchandise. Do the relationships formed through this give Edia an advantage in acquiring IP and reassuring companies in entrusting Edia with their IP?
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Edia: The relationships formed through Maru Kuji and Kujikore definitely give us an advantage in acquiring IP and reassuring companies in entrusting us with their IP. These online services have an important role in the foundation of merchandise production among the [Edia] Group’s companies. The relationships with companies through Maru Kuji and Kujikore built trust towards us, providing assurance to license their IP to us.
Firstly, it’s a starting point for a firm relationship. Online prize draws can usually be commercialized in a relatively short term and with low risk, and so can be an optimal way to build a positive relationship with IP holders. From there, we build a long-term relationship by presenting our planning ability, marketing skills, and management approach, responding to fans’ love for the production. This is an advantage when investing in anime or games.
Secondly, it’s an opportunity to prove the utilization potential of the company’s IP. From the online prize draw business, we can gather the latest data, including which IP has more demand for commercialization. Applying this information, we can present a business plan to the IP holder. This will lead to a sense of security in our strategy to ensure the IP’s success, not just that we’re running a project with the aim of an anime adaptation.
As stated, the online prize draw business has an important role to deepen the relationship with IP holders, prove our strength, and proceed with IP acquisition and expansion smoothly.
Q: Do you foresee the different companies under the Edia Group becoming more active/more closely integrated in this full-scale entry into the anime business, and if so, how?
Edia: It is necessary for all group companies to be more closely integrated in the anime business in the future, and it will be a unified strategy for all companies moving forward in this field. This integration will be executed more strategically and more specifically assigned throughout the IP lifecycle.
Going forward, we will be more meticulous in the planning and development process for all works intended for an anime adaptation. The editorial team and the anime development team will co-develop story structures, characters, and themes most optimal for anime adaptations. This enables the streamlining of decision-making processes in anime production, allowing for the rapid creation of works that reflect market trends.
Furthermore, the integration with the product development department, game development department, and event team can lead to a fast and smooth delivery of different content to fans as the anime streams, without losing any enthusiasm for the anime. By strengthening these partnerships, we will establish a vertically integrated business model unmatched by competitors, enabling us to handle everything from IP planning to anime production and diverse business expansion in a seamless, end-to-end manner.
Q: Team Entertainment and HIFUMISHOBO both have lines of business aimed at female audiences. Is this a market that Edia is also considering targeting with anime investments?
Edia: Anime aimed at female audiences is very likely to be considered. The performance shown by Team Entertainment and HIFUMISHOBO is a strong point with our IP business, and this fact should be considered with anime investment as well.
Our strategy is to make the most of every strong point we obtain. Team Entertainment has been developing audio dramas and music targeting women for a while, and HIFUMISHOBO is proficient in publishing light novels and comics targeting women in villainess stories. A full-scale anime entry will inevitably strengthen collaborations with these companies as we pursue a multimedia franchise by integrating with Team Entertainment and HIFUMISHOBO. The female audience market is a key target for transmedia deployment, and active investment in the market must be highly considered.
Q: With the Edia Group’s involvement in game development and game publishing, is this a window (アニメ製作委員会 窓口) that Edia would be interested in securing in production committees?
Edia: With anime investments, we are interested in securing production committee windows for game publishing. In maximizing the value of IP, games take on a huge role. For example, utilization and monetization of IP from multiple angles, the maintenance of the quality and the world of IP, and leveraging core competencies that no others have, are some outcomes we may be able to produce by securing windows in production committees.
Q: Who is leading this anime expansion? What are Edia’s core anime teams going forward?
Edia: Our previous strategy was for each subsidiary to utilize its own strengths and core competencies. Going forward, the team that will play the central role will operate the integration with Team Entertainment and HIFUMISHOBO to solidify the anime business, acting as the liaison to anime production committees and handling everything from IP acquisition to utilization. It will be formed by members who have built up knowledge in the IP business and the publishing business, and of course, external experts in the field. They will be the core members of the anime business to develop plans and build up the synergy.
Q: Many anime production companies have described difficulties securing an animation pipeline. Additionally, Edia’s past M&A suggests that it desires to be capable of doing many things in-house/within the Edia Group. Does Edia intend to acquire an anime studio in the future, or believe that acquiring an anime studio will also become necessary in the future?
Edia: As for now, there are no plans to acquire any anime studios. However, if it is a necessary process to build up the synergy, every possible option should be considered.
Of course, we are aware of anime production companies facing difficulties securing an animation pipeline, and it is correct that in-house Edia Group production is something we aspire to. Our strategy was to accelerate transmedia development by acquiring businesses such as those in IP creation, music and merchandise production, and game development. If the acquisition of anime studios becomes an effective measure to take for maximizing the value of IP, it may be an important option to be considered in the future.
Q: What do you foresee as the upcoming challenges in your full-scale anime entry, and how do you hope to meet them? What are you excited about?
Edia: There are two upcoming challenges in the full-scale anime entry we foresee. The first challenge is how to differentiate from others within a highly competitive market. It is not easy to produce a work that will be loved and recognized by many fans. To face this challenge, we will utilize the knowledge and strength built from past M&A experience. Rather than considering anime production solely as a revenue-generating venture, we will position it as a powerful part of our IP growth strategy, premised on multi-faceted development like merchandise production, game development, and event planning.
The second challenge is the rise of production costs and the associated risks. To send out a high-quality production, it requires a large amount of investment. Facing this risk, we will handle the vertical integration business model as a group. By decentralizing the investment risk and ensuring profitability by producing many products, such as games and merchandise, we believe this challenge can be handled.
We are most excited about the moment when the enthusiasm created by our own hands builds up all over the world through anime. We hope to deliver “an unforgettable experience” by adapting our original works to anime and supporting the creators in the best form, believing in the potential of the original work. Furthermore, creating a cycle of picking up more fans through that experience, advancing IP to the next level, and eventually delivering major IP that will represent Japan to the world: That is our greatest joy.
It was a pleasure to explore Edia’s plans for anime production and IP development in such detail. I’m grateful to Endo-san (Edia Rights Division Manager, HIFUMISHOBO Sales & Marketing Manager) for his smooth coordination of this interview. Edia’s website is available at the link provided.
