Netflix to Increase Asia Content Spending by 15% in 2023 as Revenue Growth Accelerates in the Region – Study

Patrick Frater Asia Bureau Chief Netflix has announced new series “Ooku: The Inner Chambers,” the first anime adaptation of a hit Japanese manga by Yoshinaga Fumi. At the ongoing Anime Japan convention in Tokyo, the streamer also unveiled “Yakitori: Soldiers of Misfortune,” another anime series, adapted from a military sci-fi novel by Carlo Zen and set to upload in May. Directed by Abe Noriyuki and produced by Studio Deen, “Ooku” is inspired by tales emerging from the Ooku women’s quarters within Edo Castle and imagines that gender roles are reversed. After a plague threatens the male population women take up positions of authority. The new (female) Shogun Yoshimune enquires into why the women adopt male names when taking power and starts to unravel other mysteries within the inner sanctum. The original manga was published by Hakusensha / Melody.

Patrick Frater Asia Bureau Chief Viz Media has picked up a wide collection of rights in North America and Latin America to animated Japanese sports series “Captain Tsubasa: Junior Youth Arc.” The series is adapted from a popular manga by Yoichi Takahashi and is licensed by Shueisha Inc. The deal includes digital streaming, TV, electronic sell-thru, home video and merchandise rights for North and Latin American territories. The new series is currently being produced by Studio KAI, with the official main staff including: director Ono Katsumi; character design and executive animation director, Watanabe Hajime; and series composition, Tomioka Atsuhiro. The voice cast includes Sanpei Yuko as Tsubasa Ozora, Gukuyama Jun as Karl Heinz Schneider and Suzumura Kenichi as Wakabayashi Genzo and Hyuga Kojiro as Sato Takuya. It is set to launch October 2023.

Patrick Frater Asia Bureau Chief It is becoming harder not to perceive Tencent, China’s tech and entertainment giant and the world’s largest games firm by revenue, as a utility. It is now too big to be a growth stock darling and too widely-spread to escape the gravity of China’s underlying economic trends. Revenues in calendar 2022 flatlined at RMB554 billion, while net profits dropped 16% to RMB188.2 billion ($27.0 billion). The decrease reflected China’s economic reversal that began in the second quarter of the year with the arrival of a new COVID strain and stricter government measures to combat it. Tencent’s advertising revenues fell slightly, costs rose somewhat, and subscriber number were mixed – rising in music, but falling in video.

Patrick Frater Asia Bureau Chief Vanessa Hudgens, the Asian American actor whose career kicked off in Disney’s “High School Musical” series, is set to shoot a travel documentary in the Philippines, the country of her mother’s birth. The untitled project will shoot in Palawan and Manila in March. Paul Soriano is attached as a director, producer and executive producer. Mark A. Victor of TEN17P will also serve as executive producer. No distributor, broadcaster or streaming platform has yet been disclosed. Soriano’s recent credits include directing the 2019 film “Mañanita” and Manny Pacquiao biopic “Kid Kulafu.”

Patrick Frater Asia Bureau Chief The theatrical release of low-budget slasher movie “Winnie the Pooh: Blood and Honey” in Hong Kong has been abruptly canceled just two days before its scheduled outing. No explanation has been offered, but suspicions that the film may have crossed one of Hong Kong’s increasingly complicated political red lines are certain to be raised. That is because the Winnie the Pooh character is unflatteringly perceived to have a physical resemblance to China’s president, Xi Jinping. Online search for Winnie the Pooh is heavily censored within mainland China and Winnie the Pooh products are not distributed. China did not permit the import and release of Disney’s 2018 Winnie the Pooh film “Christopher Robin.”

Patrick Frater Asia Bureau Chief Leading Japanese publisher, Kodansha is to launch an online comic book distribution service from May. Titled K Manga, the operation will go live in May and be exclusive to readers in the U.S. The company is publisher of many of the best-known manga titles in history including “Attack on Titan” and “Ghost in the Shell.” These and some 400 others will be available at the launch of the serialization platform.

Patrick Frater Asia Bureau Chief Tencent Music Entertainment grew its 2022 profits by 21% to $533 million (RMB3.68 billion), helped by cost cutting and a growing subscription base. It achieved this despite a 9% decrease in revenues to $4.1 billion (RMB28.3 billion). The group, which is backed by Chinese tech and entertainment giant Tencent and has stock market listings on the New York Stock Exchange and in Hong Kong, is China’s largest digital music outfit and controls large equity stakes in Spotify and (in a consortium with Tencent) Universal Music Group. Tencent Music’s own operations divide loosely into two clusters: mass market music streaming, with paid-for and free tiers; and “social entertainment,” including karaoke and other derivative products.

Patrick Frater Asia Bureau Chief Filming has begun on Tom Waller’s true-crime thriller, “Kiss of the Con Queen,” with real-life victim Eoin O’Brien (“The Last Full Measure”) taking the lead role. He plays actor duped by an impersonator to travel to Indonesia on the promise of auditions for a leading role in a DC origins series, only to discover that he had been scammed by the infamous Con Queen of Hollywood. In the real world, the alleged perpetrator, 41-year-old Indonesian food blogger Hargobind Tahilramani, is accused of pretending to be both male and female Hollywood executives and having swindled hundreds of victims of millions of dollars. He was arrested in 2020 after an FBI manhunt and is currently in prison in the U.K. where he is fighting against possible extradition to the U.S. The U.K. court hearings have been dramatic and disturbing.

Patrick Frater Asia Bureau Chief U.S.- and Japan-based screen writer and producer Aoyagi Yumiko has signed with Creative Artists Agency (CAA) for talent representation. Born in Yokohama, Japan, but having grown up in Los Angeles and graduated from Sophia University in Tokyo, Aoyagi now works across both the Japanese and U.S. film and TV industries. She debuted as a screenwriter in 1995, writing the fourth episode of the Fuji TV series “Seiga wa Tatsu” before winning Galaxy Award prizes for telefilm “Saigo no Kazoku Ryoky: Family Affair.” In 2003, she wrote the show “Kokoro,” becoming the youngest person ever to write for the coveted morning slot on Japan’s national public broadcaster, NHK. The slot about a young woman’s development in a traditional neighborhood in Tokyo, has a continuous history of over 60 years and is known as “the face of Japan.”

Patrick Frater Asia Bureau Chief U.K.- and Hong Kong-based company Phoenix Waters Prods. has formally partnered with Hong Kong’s Agog Films to create Phoenix Waters Asia, a new venture aimed at increasing content production in Asia. The venture was announced on the sidelines of a film investment conference held Tuesday in Hong Kong at the FilMart rights market, where Phoenix Waters Prods. CEO Bizhan Tong was a speaker. The two companies previously collaborated on “Chungking Mansions,” an ambitious pan-Asian action film on which Tong is director, and where production was previously scheduled for last year. Tong told Variety that lensing will start later this year, “after address any issues that could hinder filming in Hong Kong.”

Patrick Frater Asia Bureau Chief Singapore’s Mocha Chai Laboratories and Emissary Pictures, a company that straddles New Zealand, Australia and Indonesia, have announced a strategic partnership for the development and production of cross-cultural films, series and content in Asia. The venture will have offices in all four countries and will identify, develop and produce content across genres and formats, including films, television series, documentaries and digital content. The agreement was announced in Hong Kong on the first day of the FilMart rights market. The pair say that they have scripted and unscripted projects in development and production. Slate details, however, remain under wraps as do distribution plans.

Patrick Frater Asia Bureau Chief CJ ENM is putting an emphasis on TV content over feature film at the upcoming FilMart rights market in Hong Kong. The South Korean behemoth, which operates multiple studios and the TVing streaming platform, is touting at least six shows and formats. Sebastian Kim, the group’s director of international content sales and acquisition, will also be taking part in a Monday morning seminar “Spotlight Conversation: The Asian Wave in 2023 and Beyond” at FilMart. His lineup is headed by “The Heavenly Idol,” a fantasy, romance series which sees a priest from a different era transported to the present day as a pop idol. His training makes him a hopeless celebrity, but he has to learn to adapt. Starring Kim Min-gue and Go Bo-gyeol, the 12-part series began airing mind-February on tvN.

Patrick Frater Asia Bureau Chief Thailand’s film censors have upset the release of local horror movie “Hoon Payon,” which should have arrived in cinemas pn Thursday. The film had a successful world premiere screening on Tuesday at a gala in Bangkok. But censors have since intervened to demand five scenes be cut and to impose a 20+ rating on the Five Star Production picture. The rating means that spectators must be age 20 or older, thus excluding the film’s key teenage demographic, and it obliges cinema operators to check the ID cards of all patrons. The film’s story involves a man who travels to a village in a border region where his brother, a novice Buddhist monk, has been accused of murder. As more bodies pile up, the man questions the villagers’ blind faith in a supposedly protective doll or mannequin.

Patrick Frater Asia Bureau Chief Philippines media powerhouse ABS-CBN is launching “The Bagman” action drama series as a remake of its own “Bagman” digital production and will launch it at Hong Kong’s FilMart next week. The original “Bagman,” which ran to two seasons and sold to Netflix in The Philippines, follows a neighborhood barber who lands a job as the governor’s henchman and gets caught up in a dangerous web of crime, corruption, and political turmoil. That is a familiar story for ABS-CBN itself. The company was until 2020 The Philippines leading broadcaster. But it dared to criticize the policies of then president Rodrigo Duterte and found its TV licenses were not renewed. Since the loss of its TV broadcast operations, ABS-CBN has repositioned itself as a mass content company working as a producer with other producers and broadcasters and outputting news to its website, streaming service iWantTFC and YouTube channels. It also operates related businesses in talent management and events.

Patrick Frater Asia Bureau Chief American musical comedy film “Lyle Lyle Crocodile,” is set to release in mainland China cinemas, having received approvals for import and distribution from Chinese authorities. It will play in China from April 15, 2023. The film was released in North America in early October last year and many other territories at the end of 2022. Parts of Asia have been later to receive the title with Korea and Taiwan play it from January and Japan set to open it from March 24. The film has grossed $108 million worldwide, with $60.9 million of that coming from international markets and $46.8 million from the North American domestic market, studio backer Sony Pictures reported.

Patrick Frater Asia Bureau Chief Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) has increased its stake in Japanese film and TV studio Toei Company, from 5% to 6.03%, according to a report by the Reuters financial news agency. The move comes shortly after Toei published a ten-year plan for international expansion. Toei includes film and TV production operations, the T-Joy cinema chain and Toei Animation. Last month, it said that it had beaten its film revenue record, thanks to the success of titles including “The First Slam Dunk,” “The Legend of Butterfly” and “One Piece Film Red.” The stake increase also follows PIF’s February announcement that it had increased its stake in Japanese games and console maker Nintendo to 8.26% and that (along with the Singapore state fund GIC) was a buyer of a $966 million bond issue from Korean entertainment-tech firm Kakao Corp.

Patrick Frater Asia Bureau Chief Already the highest grossing local film in its home market, courtroom drama, “A Guilty Conscience” has broken into Hong Kong’s all-time top ten box office ranking with a cumulative of HK$107 million ($13.7 million). Data from Hong Kong Box Office Ltd. shows the film achieving the feat after just 41 days in cinemas and coming within HK$1 million ($150,000) of overtaking “Top Gun: Maverick.” The data firm noted that the last time a Hong Kong film got this far was with fantasy-action-comedy “Kung Fu Hustle” in 2004. Since then, it has been overtaken by a fleet of Hollywood titles. Hong Hong’s current top ten is headed by “Avengers: Endgame” and includes six Marvel movies, the two “Avatar” titles and “Titanic.”

Patrick Frater Asia Bureau Chief Multi-territory Asian streaming service Viu has publicly disclosed key performance metrics for the first time and said that it was cash flow positive on an annual basis in 2022. The company, which operates in 16 Asian and Middle East markets and is seen as a rare success story in regional streaming, counts Hong Kong conglomerate PCCW as its principal shareholder, which also unveiled its own profits and loss figures for the 2022 calendar year. Viu which operates both ad-supported and paying tiers, said that it had 66.4 monthly active users in 2022, an increase of 13% year-on-year. Paying subscribers increased by 45% to 12.2 million over the same period.

Patrick Frater Asia Bureau Chief Japan’s online video market slowed in the fourth quarter of 2022, but ad-supported streamer TVer surged forward to overtake Prime Video as the most watched platform, according to a new report. The “Japan Online Video Consumer Insights & Analytics” report by consultancy Media Partners Asia shows SVOD subscriptions slowing to their slowest pace since 2015. From an average of 6-9 million per year between 2018 and 2021, they fell to just 3.1 million in 2022. Premium video viewership grew 8% quarter on quarter to reach 31 billion minutes in the fourth quarter, with SVOD at 55% share; AVOD at 34% and freemium at 11%.

Patrick Frater Asia Bureau Chief China-based video streamer iQiyi achieved a surge in paying subscriptions and achieved net profits in the fourth quarter of 2022. While still loss-making over the full year, the company hailed its turnaround as “miraculous.” In the October-December period, gross revenues were RMB7.6 billion ($1.1 billion), representing a 3% increase year over year, the company said in a regulatory filing. Net income attributable to iQiyi was RMB304 million ($44.1 million), compared to a net loss of RMB1.8 billion in the same period in 2021. Over the course of the full 2022, total revenues were RMB29.0 billion ($4.2 billion), representing a 5% decrease from 2021. Net losses decreased from RMB6.2 billion to RMB136 million ($19.7 million).