By Mark Schilling
Actions have consequences, even in the world of Japanese bureaucracy, where
commission reports often drop like acorns from a mighty oak -- to barren ground.
One that has born fruit -- or rather given birth to promising saplings -- is by an advisory
body to the Ministry of Economy, Trade and Industry (METI) that last year called for
liberalizing the cumbersome regulations on film funds. The aim: to create more contents
for Japan's flourishing media industry, which has, to METI's delight, a major earner of
foreign currency.
One of the new funds benefiting from the regulators' change of mind has been set up by
Rakuten Securities to underwrite Basilisk, a straight-to-DVD animation to be made by
Gonzo, a leading animation production house. Totaling Y240 million ($2.2 million), the
fund will give ordinary punters a chance, for a 1 per cent fee, to earn returns based on the
film's DVD sales, up to ten percent over two years. Launched last November, Rakuten
Securities is the securities arm of the Rakuten online shopping site.
More traditional is a fund announced by Kadokawa Pictures to raise an initial Y3.5
billion ($32 million) to make nearly 30 films over a seven year period, though investors
can opt to cash out after five. Partners include Kadokawa Shuppan Kikin, Konami,
Imagica, Development Bank of Japan and Mizuho Financial Group, with the last serving
as the partners' main bank. Kadokawa hopes the fund will grow to Y20 billion ($183)
over the course of its life -- a mighty oak indeed.
Several ambitious film funds were launched during Japan's heady Bubble Economy days
-- and nearly all ended in tears. What is prevent the current crop from a similar blight?
Well, Rakuken customers should start by reading, not only the fund prospectus, but the
extremely violent and erotic comic on which Basilisk is based. Personal finance has rarely
been so fun.
