KADOKAWA ANNUAL REPORT 2003

The growth and diversification of the character goods business at present is unprecedented. In recent times, the Japanese animation and comic culture has also been embraced by the world: markets are expanding in Asia, the U.S. and Europe. Popular products and characters spawned from comics form the nucleus of the character goods business. Comic and cartoon characters are now finding starring roles in animated TV programs and films, as well as video game software, card games and original merchandise.
Three entities are at the forefront of the Kadokawa Group’s efforts to develop this growth business: the Animation & Comics Editorial Dept., the “Fujimi” Editorial Dept. of Kadokawa Shoten Publishing, and Media Works. These operations are producing a whole raft of original heroes and characters.
Besides comics, Kadokawa Shoten Publishing has played a pioneering role in the thriving and growing market for novels aimed at young adults. This genre is a wellspring for new writers and will serve as a valuable source of content. This content can be adapted for comics and the character goods business, fueling further growth in the anime & comics field in the Kadokawa Group. All three entities are engaged in this field in the spirit of friendly competition.

Prompted by the popularity of Japanese anime and comics overseas, Kadokawa Shoten Publishing is taking its leading anime magazine, NEWTYPE, into overseas markets. The first overseas edition of this magazine was launched in South Korea and was quickly followed by the debut of the U.S. edition, NEWTYPE USA, on October 10, 2002. The response has been immediate. Although the initial print-run for NEWTYPE USA was only 50,000 copies, demand from Japanese anime fans in the U.S. and Canada has been overwhelming. Circulation has already climbed to 100,000 copies. This demand has been driven by the popularity of Japanese anime, which now actually enjoys a wider viewership in the U.S. than locally produced animation. Boosted by this success, Kadokawa plans to take NEWTYPE to anime enthusiasts in Europe with German, French, Italian and other language versions.