Cool Japan Fund Review: Anime and Games Profitable, Live-Action Loses Money

Japan’s Ministry of Economy, Trade and Industry published a review on November 9 regarding the Cool Japan Fund, which is set to dissolve after significant financial losses. The analysis reveals that investments in video games, anime, manga, and music achieved a 120% recovery rate, proving profitable for the initiative launched in 2013. In contrast, the live-action sector suffered heavily, with only a 46% recovery rate despite receiving 30% of all content-related funding.

The report highlights that distribution joint ventures accounted for 80% of the fund's losses within the live-action category. Additionally, early-stage businesses and joint ventures generally underperformed compared to mid- to late-stage companies. METI plans to apply these lessons by shifting future support toward growing markets and direct content production, while exercising caution regarding low-growth sectors and large-scale subsidies.