"Ultraman" Business in China Slumps, Yet Still Optimistic About the Chinese Market

According to a May 21 report by Japanese media outlet "Otokonosouken": China, the largest market for "Ultraman"-related products, has seen a sharp decline in revenue.

Based on the financial results and new medium-term management plan (2026–2028 fiscal years) announced by Tsuburaya Fields Holdings as of March 2026, licensing revenue from "Ultraman"-related business in China decreased by 51.6% year-on-year to 2.557 billion yen (approximately 110 million RMB), marking the first revenue drop in the past decade.

The company stated: "We are facing the reality that we did not meet our targets, but the Ultraman intellectual property still maintains high recognition and a strong fan base, with its long-term growth potential unchanged."

China has always been the biggest market for "Ultraman," boasting 100 million fans. The influence of "Ultraman" in the Chinese market is clearly reflected in data—the Tsuburaya IP has 4 million users in Japan, while China has 100 million, equivalent to about 7% of China's population.

The company explained that the deep-rooted popularity in China stems from historical context. In the 1990s, when special effects-driven "hero characters" were rare, "Ultraman" aired during prime time and established a powerful brand image of "Ultraman as a hero," which contributed to the enduring popularity of new works and theme parks.

Although recent years have seen rapid growth through merchandise sales and card games, as previously mentioned, licensing revenue in the Chinese market began declining starting from the 2025 fiscal year.

Key factors behind the revenue drop: adjustment in the card game market (China’s overall card game market declined from 1.8 trillion yuan to 400 billion yen).

Additionally, due to high-profile remarks regarding the "Taiwan emergency situation," major promotional events were canceled or restricted.

Moreover, "profit loss caused by counterfeit products has negatively impacted licensing revenue."

Under these circumstances, the company views the Chinese market as a "profitable market with a solid fan base and partner network" and believes it is crucial to "create new value in a rapidly changing market."

As specific future initiatives, the company announced it will deepen its partnership with Shanghai SCLA, the local exclusive partner.

Tsuburaya Productions and SCLA will jointly handle responsibilities such as providing video and materials, improving MD design planning, introducing artificial intelligence into the licensing management process, and expanding local operations for live events, while reorganizing their collaboration into a "co-developing partner for cultivating Tsuburaya intellectual property."

The medium-term financial goal is to gradually increase operating profit across the entire content and digital business to 3 billion yen by March 2027, 3.7 billion yen by March 2028, and 5 billion yen by March 2029.

Original source: toutiao.com/article/1865754275748875/

Disclaimer: This article represents the personal views of the author.