Studio Restructuring Without the Paramount Decree: Japanese Film Industry and Oligopoly after the 1960s

Abstract

The Hollywood motion picture industry has been the epitome of our understanding and explanation of the rise and fall of the studio system. However, this study spotlights the Japanese studio system, which was solidly maintained until the late 1960s. Carefully tracing the process through which the major studios outsourced the production sector, this study examines state regulation against monopoly as a crucial factor explaining the reorganisation of the Japanese film industry after studio restructuring. Because anti-monopoly policies such as the Paramount Decree did not exist in Japan, the studios moved toward maintaining affiliate theatres despite reorganisation in the 1960s and 1970s. As a result, independent producers who did not possess their own distribution networks branched into three major categories: theatrical, low budget adult films; social films meant for independent exhibition, and blockbusters supported by external finance. The shifts in the production sector paradoxically highlight the decisive influence of distribution in the film industry. In essence, this study endeavors to present an alternative analytical approach, using Japan as a case study, for comprehending the rise and fall of the studio system and its restructuring.

Disclosure statement

No potential conflict of interest was reported by the author.

Figure 1 Change of the number of released Japanese films (1969–1982).

Source: Compiled by author based on Kinema Junpo (1970–1972, 1976, 1978–1983).⁴³

Notes

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4 Wada M., Dejitaru Jidai no Nihon Eiga [Japanese Films in the Digital Era]. Nagoya: Nagoya University Press, 2010.

5 Storper, Michael and Christopherson, Susan, ‘Flexible Specialization and Regional Industrial Agglomerations: The Case of the U.S. Motion Picture Industry’, Annuals of the Association of American Geographers 77, no. 1 (1987): 104–117; Christopherson, Susan, and Michael Storper, ‘The Effects of Flexible Specialization on Industrial Politics and the Labor Market: The Motion Picture Industry’ ILR Review 42, no. 3 (1989): 331–347.

6 Aksoy A. and Robins K., ‘Hollywood for the 21st Century: Global Competition for Critical Mass in Image Markets’, Cambridge Journal of Economics 16 (1992): 1–22; Hesmondhalgh D., ‘Flexibility, Post-Fordism and the Music Industries’, Media, Culture & Society 18, no. 3 (1996): 469–488; Sedgwick, John, ‘Product differentiation at the movies: Hollywood, 1946 to 1965’, The Journal of Economic History 62, no. 3 (2002): 676–705.

7 Blair, Helen and Al Rainnie, ‘Flexible films?’, Media, Culture & Society 22, no. 2 (2000): 189.

8 Bordwell, David, Janet Staiger, and Kristin Thompson, The Classical Hollywood Cinema: Film Style & Mode of Production to 1960 (Columbia University Press, 1985); Balio, Tino, ed., The American Film Industry (Univ of Wisconsin Press, 1985); Christopherson and Storper 1989; Schatz, Thomas, Boom and Bust: American Cinema in the 1940s (Univ of California Press, 1999); Sedwick 2002; Wayne, Michael. ‘Post-Fordism, Monopoly Capitalism, and Hollywood’s Media Industrial Complex’, International Journal of Cultural Studies 6, no. 1 (2003): 82–103.

9 Sato T., Nihon Eigashi 3 [Japanese Film History 3], Tokyo: Iwanami Shoten, 1995, 110.

10 Motion Picture Producers Association of Japan (Eiren), EigaNenkan [The Japanese Motion Picture Yearbook]. Tokyo: Jiji Press Ltd., 1962, 203.

11 Eiren, EigaNenkan, 1961, 188.

12 Schatz, Boom and Bust, 332.

13 Balio, ed., The American Film Industry, 254–255.

14 United States v. Paramount Pictures, 66 F. Supp. 323 (S.D.N.Y. 1946).

15 Inoue M., ‘Senryōka no EigaSangyō to Daiei no KigyōKeiei’ [The Film Industry and CorporateManagement of Daiei under the Occupation Era], Rikkyo Economic Review 66 (2013): 73–104.

16 Uryū T., Sengō Nihon EigaShōshi [Postwar Film History of Japan], Tokyo: Hosei University Press, 1981, 361.

17 Sato, Nihon Eigashi, 111.

18 ‘Five Companies Agreement’ was signed by Toho, Shochiku, Toei, Shin-Toho, and Daiei.

19 Translated by the author. Iwasaki A., ‘Dokuritsu Pro no Seishin to Rinri–Tokuni Daikigy to no Musubitsuki wo’[Spirit and Ethics of Independent Production–Focusing on Cooperation with Major Studios], Kinema Junpo 387 (1965): 31.

20 Translated by the author. Ku G., JeonhuIlbonYongwhauiJeonwhangwaShideseong [The Conversion and Thought of the Post War Japanese Movie]. IlbonHakbo 63 (2005): 243–60.

21 Translated by the author. Sekigawa S., ‘Eiga no Kyōsō to Zigyō Bunyanitsuite’ [Competiton of Film Industry and Field of Business], Fair Trade Commission 113 (1960): 31–9.

22 Sato, Nihon Eigashi,17.

23 Shioda N., Nihon Eiga Gozyūnenshi 1941-91 [50 Years of Japanese Films]. Tokyo: Fujiwara Shoten, 1992, 128.

24 Uryū, Sengō Nihon Eiga,256.

25 ‘Union Refused against Shochiku’s Restructuring Plan’. Yomiuri Shimbun, February 10, 1962.

26 Schatz, Boom and Bust, 334.

27 Translated by the author.Eiren, EigaNenkan, 1966, 85.

28 Translated by the author.Eiren, EigaNenkan, 1967, 280.

29 Eiren, EigaNenkan, 1970, 130.

30 During this specific period, the exchange rates stood at 1000 yen to 2.7 dollars in 1965, 1000 yen to 3.3 dollars in 1976, and 1000 yen to 4.5 dollars in 1979.

31 Kinema Junpo (1972) observed that Toho and Shochiku were able to expand their business scale via a policy to gradually reduce their film production and distribution arms while making profits from exhibition, theatres, and other business. Takenaka, T., ‘Nihon Eiga 1972 Tenbō’ [A perspective of a 1972 Japanese cinema], Kinema Junpo (572): 79.

32 Eiren, EigaNenkan, 1969,118.

33 Ibid.

34 This unit production differs from the 1930s’ ‘producer-unit system’ or the 1950s ‘package-unit system’ in Hollywood (Bordwell et al., The Classical Hollywood Cinema) in that it was a unit production consisting of its own studio personnel without any collaboration with external personnel, including the independent producers.

35 Eiren, EigaNenkan, 1969, 118.

36 Eiren, EigaNenkan, 1970, 138.

37 Toho Eiga Company, Inc. was launched with a capital of 100 million yen. Among this, Toho invested 90 million yen, and the remainder was invested into Bunshun, Suntory, Mitsukoshi, Towa, and Tokyo Deator (20 million yen each). Eiren, EigaNenkan, 1973, 62.

38 Toho Inc. Toho Gozyūnenshi [50 Years of Toho Inc.] Tokyo: Toho Inc., 1982.

39 Inoue M., Bunka to Tōsō: Toho Sōgi 1946-1948 [Culture and Struggle: Toho Strike 1946-1948], Tokyo: Shinyosha, 2007, 44.

40 Christopherson and Storper, ‘The Effects of Flexible Specialization’, 332.

41 Translated by the author. Chung I., Nikkan independent eigahaikyūKōzōno keisei to hatten [Formation and Development of Japanese and Korean Independent Cinema]. PhD diss., University of Tokyo, Tokyo, 2015.

42 Ministry of International Trade and Industry, WagaKuniEigaSangyōno Genzyōto Syomondai: EigaSangyōHakusyo [The Present Condition and Problems of the Japanese Film Industry: The Film Industry White Paper], Tokyo: Ministry of International Trade and Industry, 1958; 1962; Kinema Junpo. ‘1958 Sōkesan: Hōga’ [1958 Film Year-End Summary: Japanese Cinema], Kinema Junpo 225 (1959).

43 Kinema Junpo, 525 (1970): 84–93; Kinema Junpo, 541 (1971): 90–95; Kinema Junpo, 571 (1972): 90–101; Kinema Junpo, 677 (1976): 111–124; Kinema Junpo, 728 (1978): 118–132; Kinema Junpo, 754 (1979): 118–132; Kinema Junpo, 780 (1980): 118–132; Kinema Junpo, 805 (1981): 112–126; Kinema Junpo, 830 (1982); 118–132; Kinema Junpo, 854 (1983); 112–126.

44 Ministry of International Trade and Industry, 1958.

45 Schatz, Boom and Bust, 343.

46 Translated by the author. Iwasaki, ‘Dokuritsu Pro’, 28.

47 Hayashi T., ‘Purodyūsa Tokusyū: Nihon Eiga no Seisakusha—EigaFukō no Kagi wo Nigirumono Dokuritsu Produesa no Ishiki to Senzyutsu [Producer Special: Producers of Japanese Films—The Consciousness and Tactics of Independent Film Producers Holding the Key to the Film Industry Revival], Kinema Junpo 410 (1966): 25.

48 Translated by the author. Iwao, M., ‘ItsudemoDaredemo….Dokuritsu Pro niTaisuru Tōhō no Taido’ [Whenever, Whoever….Attitude of Toho toward Independent Producers], Kinema Junpo 387 (1965): 26.

49 Ibid., 27.

50 Christopherson, Susan, and Michael Storper. ‘The City as Studio; the World as Back Lot: The Impact of Vertical Disintegration on the Location of the Motion Picture Industry’, Environment and planning D: Society and Space 4, no. 3 (1986): 311.

51 Takahashi E., ‘1965nendo HōyōgaGyōkaiKessan’ [Summary of the 1965 Japanese and Foreign Films], Kinema Junpo 408 (1966): 76.

52 Ministry of International Trade and Industry, WagaKuniEigaSangyōno Genzyōto Syomondai: EigaSangyōHakusyo [The Present Condition and Problems of the Japanese Film Industry: The Film Industry White Paper], Tokyo: Ministry of International Trade and Industry, 1963, 11.

53 In this regard, ‘Pink film’ (Japanese theatrical sex movie genre) were a locus attracting new talents with nowhere to go in Japan. This is why many talented directors made their debut with Pink film.

54 Translated by the author. Kitakawa T. ed., Nihon no Dokuritsu Pro [Independent Productions in Japan], Tokyo: Committee for the Wakamonotachi National Independent Screening, 1970, 157.

55 In 1975 and 1976, respectively, two Hollywood films achieved box office revenues of 3.6 billion yen and 5 billion yen, surpassing by threefold the earnings of the top-grossing Japanese films for those years: Tora-san Meets the Songstress Again in 1975 and Human Revolution II in 1976.

56 Translated by the author. Eiren, EigaNenkan, 1978, 99.

57 Inoue Y., Suzuki M., and Okuda H., KontentsuPurodyūsukinō no KibanKyōkanikansuru ChōsaKenkyū [Research on the Strengthening the Fundamentals of Contents Producers’ Role], Tokyo: Ministry of Economy, Trade and Industry, 2004, 8.

58 Paul, Hirst and Zeitlin Jonathan, ‘Flexible Specialization versus Post-Fordism: Theory, Evidence and Policy Implications’, Economy and society 20, no. 1 (1991): 3.

59 Aksoy and Robins, ‘Hollywood for the 21st Century’, 8. (Aksoy and Robins 2004, 8).

60 Aksoy and Robins, ‘Hollywood for the 21st Century’; Blair and Al Rainnie, ‘Flexible films?’; Scott, Allen, ‘A New Map of Hollywood: the Production and Distribution of American Motion Pictures’, Regional studies 36, no. 9 (2002): 957–79.

61 Scott, ‘A New Map’, 969.

62 Translated by the author. Wada, Dejitaru Jidai, 6.

Additional information

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Insun Chung

Insun Chung is a research professor in the Advanced Research Center for Humanities at Soonchunhyang University, South Korea. Her main research interests related to independent cinema and film movements in South Korea and Japan. Her current research is on the circulation of Cold War-era Hollywood films in East Asia. Recently completed writing the 50-year history of the Korean Film Council, soon to be published (2024).