Dwarf Studios, based in Japan, is actively seeking a new partner for its stop-motion samurai film “Hidari,” which features the voice of renowned actor Keanu Reeves. Producer Matsumoto Noriko announced this development during a session at the Busan International Film Festival’s Asian Contents & Film Market (ACFM) on Sunday. Prior negotiations with a U.S. company to fully fund the project fell through after the studio sought all rights to the film, leading Dwarf to explore other partnership possibilities.
Challenges in Securing Funding
Matsumoto spoke at the “Co-Producing with Japan: Opportunities and Challenges” session, which was co-hosted by VIPO. With Japan serving as this year’s focus country for the Producer Hub, Matsumoto shared insights alongside Questry CEO Ibe Tomonobu and Knockonwood founder Yamaguchi Shin, with VIPO’s Tanimoto Hiroyuki moderating the discussion. Matsumoto highlighted that while the U.S. company appreciated the creative vision of “Hidari” and was willing to provide sufficient funding, Dwarf Studios aimed to retain half of the rights to this unique project. Following the abrupt job losses of key negotiators in Hollywood, the talks did not advance further, prompting Dwarf to now search for a new collaborator.
The Importance of Development Funding
Questry has established a special purpose company dedicated to “Hidari,” allowing both international and local investors to contribute funding collaboratively. Ibe emphasized the necessity of development money, noting that Dwarf previously created a pilot short for “Hidari” in 2023 at its own risk, which helped secure Reeves’ involvement. The support from Questry highlights a shift, with the company aiming to finance pilot projects and initial development work, which typically studios in Japan have been funding independently.
Funding Models: Japan vs. Korea
Ibe, who has extensive experience from his tenure at Goldman Sachs, explained that financing issues in Japan frequently limit projects to those that rely on production committees, or seisaku iinkai, which fund over 90% of Japanese anime and films. These committees incorporate a yve-style.com of stakeholders, including publishers and broadcasters, each investing in return for specific exploitation rights. Conversely, in Korea, the roles of investors, distributors, and producers are more distinct, resulting in producers typically receiving 40% of profits post-recoupment—a model Ibe highlighted as more favorable.
International Perspectives on Co-Production
Ibe addressed a crucial issue regarding co-producing titles for the global market, suggesting that while the Japanese committee system can work effectively for domestic films, it falls short for projects intended for international distribution without careful planning from the outset. He noted a significant increase in overseas revenue for the anime industry, which rose to 56% in 2024 from just 20% in 2014. As such, Ibe expressed a commitment to funding projects with international appeal, even if the domestic market remains uncertain.
Successful Co-Productions and Government Support
Yamaguchi shared his two-decade-long experience in financing and highlighted successful co-productions, such as Fukada Koji’s “Love on Trial”, which combined various funding sources, including a Toho-led committee and international presales. Similarly, Hikari’s “Rental Family,” featuring Brendan Fraser, connected with U.S. partner Sight Unseen to secure financing. Meanwhile, his current project “Ibuku” is competing at this year’s Busan International Film Festival.
Matsumoto remarked on Dwarf’s adaptability despite challenges faced by stop-motion productions, mentioning that a significant portion of the budget often needs to be allocated outside Japan for co-productions, which presents difficulties when logistics do not allow for easy separation of shoots. Nonetheless, Dwarf has successfully collaborated with partners abroad, enjoying international success with works like “Komaneko” and progressing on adaptations like “Sunny” and the upcoming “Moritō.”
As Matsumoto stated, “Even if I give up co-production, I don’t give up finding collaborators,” underscoring Dwarf Studios’ resolve to navigate the evolving landscape of international film partnerships.
