Gyao, a broadband video distribution company and a subsidiary of Yahoo Japan (TYO:4689), and Japanese social gaming giant Gree (TYO:3632) announced today the two companies have agreed to establish a fund to invest in animation content development. The fund will be worth 100 million yen (over $1 million dollars), and the two companies will split the ownership of the joint venture 50/50, and it will tentatively be called ‘Future Content Partners’.
Content from the fund’s portfolio companies is expected to be distributed to Yahoo Japan’s premium service subscribers in formats for broadband video streaming, in social gaming, and more. Gyao, Gree, and Yahoo Japan have agreed to set up an information portal in the first half of this year, which focuses on introducing animated content such as games, video titles, and e-comic books.
A recent survey says that the Japanese animation business is worth 219.7 billion yen (or approximately $2.3 billion), and revenues have been on the rise for the last three years. When we look at the retail business that springs from the animation industry, such as merchandising character toys, its volume exceeds more than a trillion ($10.6 billion). So it’s definitely a lucrative space.