By Ching-Heng Melody Tu Configuring Appropriate Support: The Problematic Internationalization Strategy of the Japanese Manga and Anime Industry Global Markets, Local Creativities Master’s Program at Erasmus University Rotterdam Erasmus University Rotterdam 2019/7/10 Table of Contents Chapter 1. Introduction ............................................................................................. 4 1.1 Purpose .................................................................................................. 6 1.2 Research Question ................................................................................. 7 1.3 Conceptual Framework ........................................................................ 10 1.4 The Research Method .......................................................................... 12 1.5 Research Scope and Limitation of the Study ......................................... 13 1.5.1 Research Scope ............................................................................... 13 1.5.2 Limitations of the Study .................................................................. 14 1.6 Definition of Terms .............................................................................. 15 1.6.1 Manga ............................................................................................. 15 1.6.2 Anime.............................................................................................. 15 1.6.3 Fansub ............................................................................................ 16 1.7 The Position of Research ...................................................................... 17 Chapter 2. The Historical Background of Manga and Anime Industry ....................... 19 2.1 The Industrial History ................................................................................. 20 2.1.1 Before World War II ........................................................................ 21 2.1.2 After World War II until the 1980s ................................................... 22 2.1.3 From the 1980s to Present .............................................................. 27 2.2 The Industrial Structure ............................................................................. 30 2.2.1 Choosing the Suitable Manga to be Animated ................................. 32 2.2.2 Animating Manga ............................................................................ 33 2.2.3 Interaction between Manga and Anime ........................................... 35 2.2.4 The Business Model of Japanese Anime .......................................... 37 2.2.5 Crowdfunding Projects .................................................................... 39 2 2.3 The Training System ................................................................................... 40 2.3.1 The Issue of Low Salaries ................................................................. 43 2.4 The Creative Cluster of the Industry in Tokyo ............................................. 44 Chapter 3. Internationalization of the Industry ........................................................ 52 3.1 The Reason of Internationalization ............................................................ 53 3.2 The Fever and Influence of Manga and Anime in Asia ................................ 55 3.3 The Boom in the North and Latin America ................................................. 60 3.4 When Europe meets Japanese Anime ........................................................ 67 3.5 Moving Forward......................................................................................... 70 Chapter 4. The characteristic of government and policy .......................................... 75 4.1 The Cultural Policy of Japan ....................................................................... 75 4.2 After the Bubble Economy -- the Hidden Worry of Internationalization ..... 79 4.3 “Cool Japan” and Internationalization ........................................................ 82 4.4 New Development: Content Funds and Bridge Loans ................................. 85 Chapter 5. Creative Consumers and The Phenomena of Fansubbing ........................ 92 5.1 About Fansub: Fans’ Culture and Activities ................................................ 92 5.2 What has Fansub brought to the Industry: Pros and Cons .......................... 98 5.3 Fansub and Copyright Laws ...................................................................... 102 5.4 The Responses to Copyright Issues........................................................... 109 Ch.6. Conclusion .................................................................................................... 115 List of Abbreviations: ............................................................................................. 119 References: ........................................................................................................... 120 3 Chapter 1. Introduction The trend of globalization has profoundly affected the lives of people today. Among the many issues of globalization, culture has attracted significant attention. ‘Cultural globalization’, however, has always been accompanied by the shadow of hegemonic: 1 The discussions related to cultural globalization are often about communication technologies, multinational corporations, markets or cultural goods. ‘Culture’ is not just about communication or goods but the practice of human life. Although there is an urgency to include more non-western discourses on culture, there are few in-depth discussions and examples about how culture, communication, and commodities outside the Western culture have been globalized so far. Creative industries have also been subject to much debate since the early 2000s.2 A creative index and a city’s ‘creative capital’ have been emphasized when talking about the competitiveness of creative industries in a country. 3 Since these businesses are often smaller scale, relatively lower cost, and create less pollution than manufacturing industries, they can be developed in almost every country no matter whether it is considered developed or developing.4 In an era of globalization, these dynamic businesses can also spark new developments, create more job opportunities, and stimulate economic. 1 Kōichi Iwabuchi and Dawson Books, Recentering Globalization: Popular Culture and Japanese Transnationalism. (Durham, N.C;London; Duke University Press, 2002.) 2 Mary McNamara, "Japanimation Goes Pop in Cartoon Series." Multichannel News 25, no. 44 (2004): 14. 3 Richard Florida created the "Creativity Index" to measure the overall regional economic potential which combines the 3Ts: Talent, Technology, and Tolerance. The indexes which effect the 3Ts includes "the tolerance" to the minority populations, the foreign-born, and the gay/lesbian (and bisexual/queer as well) population, "the Tech-pole index" that refers to the high-tech class, the patents per capita for technology and creative class occupational share, and the educational attainment that "the talents" can get. In the European Union, these three indexes were divided into nine sub-items in the report "Europe in the Creative Age" (EU, 2004). 4 Bonita Kolb, Marketing Strategy for the Creative and Cultural Industries, (London: Routledge, 2016.) 4 The Japanese Manga and Anime industry had its origins in the local Japanese context of Japan. Most of the studies about this industry have focused on its sociological, psychological, and cultural aspects, such as those by Allison and Cooper-Chen.56 Those that emphasize the history of the industry’s development, such as Mihara, are relatively scarce.7 The Japanese Manga and Anime industries comprise a complex industry system which has many interrelated and interdependent subsystems, including the cultural content and derivative products industries. 8 To gain an international competitive advantage in the industry has always exceeded the capabilities and resources of any single company. It has required all aspects of the industrial system to work together to maximize value through collaborative innovations and resource integration. In the current-day era of the knowledge economy, the scope and speed of digital technology and media have changed faster than ever before. As a creative industry rich in intellectual property, Japanese Manga and Anime have broken through the traditional value chain system through dynamic diversification and networking.9 Japanese Manga and Anime have been become very popular now not only in the neighboring countries of Asia but also in other areas such as the Americas, Europe, and Middle-East. Since Japan became a developed country, most of its GDP is dependent on tertiary (service) industrial sectors.10 Cultural creative industries have 5 Anne Allison and Gary Cross. Millennial Monsters: Japanese Toys and the Global Imagination. (CA, University of California Press, 2006.) 6 Anne Cooper-Chen, "Cartoon Planet: The Cross-Cultural Acceptance of Japanese Animation." Asian Journal of Communication 22, no. 1 (2012): 44-57. 7 Ryotaro Mihara, "Involution: A Perspective for Understanding Japanese Animation's Domestic Business in a Global Context." Japan Forum (2018): 1-24. 8 Tomomi Yamaguchi, "The Soul of Anime: Collaborative Creativity and Japan's Media Success Story by Ian Condry: Experimental Futures Series. Durham: Duke University Press, 2013." American Anthropologist 116, no. 3 (2014): 675-676. 9 Ibid. 10 "METI Ministry Of Economy, Trade, And Industry". 2019. Meti.Go.Jp, accessed Jan.