Japan’s entertainment industry—particularly the IP (intellectual property) business, which includes anime, video games, and movies—has long faced a structural challenge: despite its global popularity and recognition, it has struggled to generate revenue overseas.
However, the market environment has undergone a dramatic transformation since 2025.
Driven by a combination of large-scale government investment strategies, the full-scale entry of major general trading companies, and changes in distribution structures in the global market, entertainment stocks have now entered a “second growth phase.”
In this article, based on the latest trends discussed on the popular investment program “Sector Super Analysis,” we’ll provide an easy-to-understand explanation of the truth behind the “return rate issue” facing Japanese anime, the strengths of blue-chip stocks like Nintendo and Toho, the “undervalued hidden gems” that experts are watching, and future growth scenarios.
- Overseas Sales of Japanese Anime Total 2.1 Trillion Yen—But a Staggering “Merely 5.5%” Remains in Japan
- Crustal Shifts Starting in 2025: Entering the “National Policy Phase” as Trading Companies and the Government Get Fully Involved
- The Gaming Industry Has a Payback Rate of Over 90%! The Strengths of “Nintendo” and “Sony,” Who Stick to the Proven Path
- Toho (9602) Evolves from a Film Distributor to a “Global Anime IP Company”
- Experts Reveal! “Promising Undervalued Stocks (Dark Horses)” That Have Been Overlooked
- Outlook for the “Three Major Overseas Regions” Where the Market Is Expected to Grow in the Future
- “4 Key Points” Investors Should Keep in Mind
- Summary: In 2026, entertainment stocks have nothing but “room to grow”
Overseas Sales of Japanese Anime Total 2.1 Trillion Yen—But a Staggering “Merely 5.5%” Remains in Japan
When it comes to the global expansion of the anime industry, one of the most startling statistics is the fact that “of the 2.1 trillion yen in overseas sales, only 5.5% is returned to Japanese companies.”
Despite the explosive popularity of Japanese anime around the world, why is it that so little of the profit actually ends up in the industry’s pockets?
Why is the recovery rate from overseas so low?
- Because the
industry relies on overseas-based streaming platforms such as Netflix and Crunchyroll, the business model makes it difficult to generate profits beyond licensing fees. - Missed Revenue Opportunities from Merchandise and Events: Due to a lack of expertise in
on-site merchandise sales and in-person event management, as well as a shortage of local distribution channels, we have missed out on high-margin revenue opportunities from secondary sales. - Risks
of Flat-Rate (One-Time Purchase) Contracts: If a distribution contract is structured as a flat fee, the Japanese production company or rights holder will not receive any additional revenue, regardless of how much the viewership grows locally. - Delays
in Copyright Protection in Overseas Markets: Measures to combat piracy and enforce legitimate licensing were not keeping pace, resulting in the loss of revenue that should have been generated.
In other words, the Japanese anime industry has long been trapped in a distorted structure where it is “the most-watched in the world, yet the least profitable.”
Crustal Shifts Starting in 2025: Entering the “National Policy Phase” as Trading Companies and the Government Get Fully Involved
Faced with this daunting challenge of a “5.5% recovery rate,” major players began taking action en masse starting in 2025.
1. Major General Trading Companies Are Making a Full-Scale Entry into the IP Business
A general trading company with a global distribution network and expertise in tough negotiations has made a full-scale entry into the overseas expansion of entertainment IP.
Guided by the policy that “we will not tolerate a structure in which, despite generating trillions of yen in sales in overseas markets, only a few percent remains in our hands,” the company is moving forward with licensing negotiations and the restructuring of its overseas operations.
Through the involvement of trading companies, a system (ecosystem) is rapidly taking shape to ensure that profits that were previously flowing out of Japan are retained domestically.
2. Launch of the government’s investment strategy, “Entertainment and Creative Industries Strategy 2026”
Based on lessons learned from the former “Cool Japan Organization,” the government has shifted its focus toward more effective support measures.
- Promoting Massive Investment in the Gaming and Content Industries by 2033
- Set a target market size of 20 trillion yen or more for the content industry as a whole
- National-level support for rights negotiations and copyright protection overseas
The fact that the government has clearly signaled its commitment to going beyond simply supporting “creating works” to actively promoting, as a matter of national policy, the “creation of systems that generate income overseas” is an extremely significant tailwind for the stock market.
The Gaming Industry Has a Payback Rate of Over 90%! The Strengths of “Nintendo” and “Sony,” Who Stick to the Proven Path
While the anime sector faces challenges with its recovery rate, the video game industry boasts an overwhelming profit-generating capacity with a recovery rate exceeding 90 percent.
The market leaders in this sector are “Nintendo” and “Sony Group.”
Nintendo (7974): A Shift from Hardware to “Comprehensive IP Utilization”
Nintendo is evolving from a mere video game hardware manufacturer into a company that monetizes its proprietary IP (such as Mario, Pokémon, and Zelda) in a variety of ways.
- A stable, high-profit business model driven by software and content
- The Rollout of New Hardware (such as the Switch successor) and Global Brand Power
- Steady capital inflows from overseas investors, particularly those in Asia
Times when stocks are sold off due to material costs or temporary market adjustments are viewed as excellent buying opportunities for long-term investors.
Sony Group (6758): Takes Control of One of the World’s Largest Anime Streaming Networks
Sony is a one-of-a-kind “comprehensive IP company” that integrates games, music, movies, and anime.
- With the acquisition of Crunchyroll, the company now owns one of the world's largest anime streaming platforms
- Establish a system that enables end-to-end monetization—from anime production to global distribution, music, and merchandise sales
- The stock still appears undervalued based on key metrics (such as the P/E ratio), and it offers significant room for growth over the medium to long term.
Toho (9602) Evolves from a Film Distributor to a “Global Anime IP Company”
Toho, a giant in the film industry, has also undergone a major transformation, shifting from its traditional movie exhibition business to becoming a “holder of anime IP rights.”
In addition to the global success of the “Godzilla” series, the company has actively invested in production committees for popular anime series and promoted their international expansion. By establishing a “hybrid” business model based on two pillars—stable revenue from film distribution and licensing income from anime IP—the company has established a strong presence at international events.
Experts Reveal! “Promising Undervalued Stocks (Dark Horses)” That Have Been Overlooked
Not only are there major blue-chip stocks (Nintendo, Sony, Toho), but there is also significant investment potential in “hidden gems” that have yet to be properly valued by the market.
At the top of the list of stocks that professional investors and experts are watching is “Tsubasa Fields” (formerly Fields).
Tsubasa Fields (The Dark Horse in the Yen-Denominated Sector)
- Holds global rights to the "Ultraman" IP and is accelerating its global expansion
- The company is strongly associated with its core pachinko-related business, and the stock market has not yet fully recognized it as an “IP growth company.”
- Despite the rapidly expanding profit margins of the high-growth IP business, the stock price remains undervalued.
Thus, “stocks whose share prices remain stagnant due to their past business image, even though they are actually becoming high-growth IP companies” are precisely the targets where we can expect a sharp rise once the market’s perception changes.
Outlook for the “Three Major Overseas Regions” Where the Market Is Expected to Grow in the Future
The following three regions are key to further revenue growth for Japanese entertainment IPs in the future.
| Area | Features and Growth Scenarios |
| Spanish-speaking regions (Latin America and the Southern United States) | With its massive population, Japanese anime is experiencing explosive popularity, particularly among younger audiences. Crunchyroll’s streaming network has penetrated the market deeply and is the most important growth driver for future revenue expansion. |
| Europe (France, Italy, etc.) | Japanese anime has been broadcast here since the 1970s, so it has a long history and a solid foundation. Events such as large-scale Japan Festivals attract massive crowds, and there is potential for high-margin merchandise sales and experiential consumption. |
| Chinese Market | Although there are regulatory risks, the potential market size is among the largest in the world. If deregulation proceeds and licensing agreements with local companies are finalized, this presents a massive opportunity for revenue to skyrocket overnight. |
“4 Key Points” Investors Should Keep in Mind
When it comes to investing in entertainment stocks going forward, the key factors that will determine your success can be summarized in the following four points.
- Is the "recovery rate" for anime on the rise
? Even if the low recovery rate of 5.5% were to rise to just 10% or 20%, it would have a tremendous impact on the profits and stock prices of related companies. - Check whether “system-building” through collaboration with trading companies and the government is progressing—and whether you’re not
just selling works overseas, but also securing local secondary usage rights and distribution networks for merchandise. - Whether a company can be self-sufficient in IP and sustain its ecosystem—just like
Sony and Nintendo—the ultimate winners will be those companies that can handle everything from “production, distribution, and merchandising” entirely within their own group. - The key to generating significant returns lies in finding little-known, undervalued “hidden gems” and buying into growth companies—such as Tsubasa Fields—at an early stage, before
the market catches on.
Summary: In 2026, entertainment stocks have nothing but “room to grow”
As of 2026, Japan’s entertainment industry has entered an unprecedented virtuous cycle, driven by the simultaneous convergence of the following strong tailwinds.
- Strong Support Through National Strategy (Government Policy)
- Establishing a Model for Recovering Overseas Revenues Through the Entry of General Trading Companies
- The rapid expansion of global markets, particularly in Spanish-speaking regions
- The Strength of Japanese Content: Continuously Generating Value Semi-Permanently
Now that we’re transitioning from the stage where “the work is outstanding” to the stage where “a system is in place to reliably generate revenue worldwide,” this is the perfect time to seriously consider investing in entertainment stocks.
