In a significant call for reform at the Motion Picture Association’s annual seminar held at the Tokyo International Film Festival, Alex Boden, producer of “Tokyo Vice,” and Deb Richards, Netflix‘s director of production policy, urged the Japanese government to revamp its international production incentive system. This discussion comes as Japan prepares to establish a new body to consolidate its disparate content industry support mechanisms.
Concerns Over Production Incentives
Boden, who spent nearly two years in Japan producing two seasons of HBO Max’s “Tokyo Vice,” detailed the evolution of Japan’s production incentives, from a 2020 research initiative related to the show to the current IP360 program, which provides a 50% rebate on Japanese expenses. He pointed out that the minimum spend requirement, raised to JPY800 million ($5.1 million), effectively excludes independent films and co-productions, given that most Japanese films are produced for around $1.5 million to $3 million. Boden further criticized the existing panel-based approval system, arguing that Japan remains one of the few regions with a subjective incentive setup, which complicates long-term project planning.
Need for Clarity and Stability
“So how does a producer know that they can count on the Japan incentive in advance? That’s the question, and we need a solution,” Boden said. He cited projects like Martin Scorsese’s “Silence,” “Pachinko,” and “Shōgun” as examples of productions that scouted in Japan but ultimately filmed elsewhere. To enhance the incentive program, he suggested incorporating training opportunities, modeling it after the U.K.’s 0.5% ScreenSkills levy.
Richards echoed Boden’s sentiments, stating, “You can have a lower incentive, that’s fine, as long as it’s certain, as long as the criteria are clear.” She criticized the lack of transparency in the selection process, noting applicants could only deduce why they were declined by comparing with approved projects, labeling the process as “opaque.”
Comparative Insights from Australia
Paul Muller, the MPA’s VP of production policy for Asia-Pacific, highlighted Australia’s model, where international productions are required to spend at least AUD20 million ($13.9 million) and allocate 1% of their budget for training. He reported that since this policy was introduced in June 2023, over AUD20 million has been invested in training, in conjunction with a notable increase in the average production costs of Australian television series. Muller praised recent indications that Japan’s Ministry of Economy, Trade, and Industry (METI) might transition to multi-year financing models and raise maximum expenditure thresholds.
Progress in the Japanese Film Industry
Georgina Pope, head of production at Toho Tombo Pictures, noted improvements in the permitting process in Tokyo, despite its known difficulties. Her team managed to secure road closures for a significant car scene in front of Tokyo City Hall. “I’m finding that Japan is really starting to realize the value of having a dynamic international film industry,” Pope remarked.
The Government’s Vision for the Future
Boden described Japan as “the hottest country in the world at the moment,” emphasizing that delaying reforms could result in “a real missed opportunity.” On the government front, Nakahara Hirohiko, director-general of the Cabinet Office’s Intellectual Property Strategy Promotion Secretariat, announced that a task force for the new entity had convened its inaugural meeting on October 22. This initiative aims to streamline content policy oversight among various ministries, with plans to launch the new structure by 2027.
A Roadmap for Growth
This initiative is part of a broader public-private investment strategy devised in July, aiming for JPY20 trillion ($127 billion) in overseas sales by 2033. The content industry is one of the 17 priority sectors named in Prime Minister Takaichi Sanae’s growth plan, which includes attracting major international filming projects, enhancing support for co-productions based on Japanese intellectual properties, and implementing stricter anti-piracy measures. “We hope to become a global hub for film shooting and production,” Nakahara declared.
Historical Context and Future Aspirations
Amari Akira, former secretary-general of the Liberal Democratic Party, reminisced about chaired initiatives from 22 years ago aimed at promoting content law, indicating a historical push for this growth. He humorously noted the foresight of the original team, asserting that while their conceptual groundwork was strong, execution was lagging, allowing Korea to outpace Japan in global content exporting.
“In our day, we tried to do this through addition. This time, the government is doing it through multiplication,” Amari stated, expressing optimism about the 2033 target to quadruple the industry’s size in a decade.
Hisamatsu Takeo, the new director of the Tokyo International Film Festival, noted Japan’s recent recognition as the country of honor at the Cannes Film Market and the successful screening of 37 Japanese films at the Busan International Film Festival. As Muller concluded, if the government implements the proposed changes, achieving the JPY20 trillion target for 2033 appears “well within scope and well achievable.”
