The Tokyo International Film Festival kicked off last Monday amid a general election that saw a reduced parliamentary mandate for the ruling Liberal Democratic Party. Despite this political shift, Japanese audiences remain enthusiastic about movies, with the country’s movie industry showing resilience in the face of sector-wide challenges. Japan’s theatrical box office is expected to grow moderately this year, with forecasts predicting a year-end total of $1.88 billion, solidifying Japan’s position as the world’s third-largest cinema market.

Japanese films have been especially popular, accounting for nine of the top ten titles in 2024, led by the blockbuster “Detective Conan: The Billion Dollar Pentagram.” Hollywood has struggled to compete, with “Inside Out 2” being the only U.S. film in the top ten, earning $34.4 million. This trend underscores the increasing challenges faced by foreign studios in the Japanese market. Vivek Couto, executive director at Media Partners Asia, noted, “Encouragingly, the number of theatrical releases [in Japan] has recovered back to pre-COVID levels, and local movies continue their dominance at home with roughly 70% share of gross box office.”

The Tokyo festival also highlights Japan’s growing diplomatic connections with China, featuring three Chinese films in its main competition, a trend that aligns with a cautious warming in Japan-China relations. Japan’s Prime Minister, Ishiba Shigeru, addressed the festival via video, demonstrating the importance of the industry. In emphasizing the importance of Japan’s content industry, he said it rivals that of steel and semiconductors in export value. The Prime Minister proved he was up-to-date with industry trends when he highlighted the government’s efforts to support film co-productions, referencing the recent Japan-Italy coproduction treaty as an example of this initiative.