Competition From Low-Cost Overseas Producers and Pressure on Commissioned Prices
First written in FY2016. 4 of 8 entries say "Restated". Latest entry: FY2026.
IG Port moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2025: 5 of 11 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As the animation market expands, the number of new competing entrants is increasing both domestically and internationally. Low-cost animation production companies, particularly in China, South Korea and the Philippines, as well as companies offering favorable employment terms to attract highly skilled creators, are emerging. To secure orders, the Company Group may be unable to avoid lowering order prices, and production delays may occur due to the departure or shortage of highly skilled creators. In such cases, the Company Group's operating performance and other results may be affected.」
In addition to the previous risks of lower order prices and higher outsourcing costs, the disclosure explicitly identifies production delays caused by the departure or shortage of creators. - 2026-07-15WorsenedEarnings
「Costs related to securing outstanding creators and employee personnel expenses, among others, continue to rise, and the operating environment cannot be viewed as favorable amid global inflationary trends and domestic and international conditions.」
The company explicitly identified continued increases in creator-acquisition costs and employee personnel expenses as burdens on the future operating environment. - FY2023RestatedAnnual report
「As the animation market expands, the number of new competing entrants is increasing both domestically and internationally. Low-cost animation production companies, particularly in China, South Korea and the Philippines, as well as companies offering favorable employment terms to attract highly skilled animators, are emerging. The Company Group may face circumstances in which it cannot avoid lowering order prices in order to secure orders, and may also face higher outsourcing costs in order to secure highly skilled animators.」
The disclosure continues to cover competition from low-cost overseas production companies, competition to attract highly skilled animators and the possibility of higher outsourcing costs. - FY2021WorsenedAnnual report
「Low-cost animation production companies, particularly in China, South Korea and the Philippines, as well as companies offering favorable employment terms to attract highly skilled animators, are emerging. The Company Group may face circumstances in which it cannot avoid lowering order prices in order to secure orders, and may also face higher outsourcing costs in order to secure highly skilled animators.」
In addition to competition from low-cost overseas production companies, the disclosure newly identifies competition to attract highly skilled animators with favorable employment terms and the possibility of higher outsourcing costs. - FY2019RestatedAnnual report
「Low-cost animation production companies, particularly in China, South Korea and the Philippines, are emerging. To secure orders, our group may also face situations in which lower commissioned prices are unavoidable.」
The emergence of low-cost overseas production companies and the possibility of lower order prices in order to secure orders continue to be identified as risks. - FY2018RestatedAnnual report
「Low-cost animation production companies, particularly in China, South Korea and the Philippines, are emerging. To secure orders, our group may also face situations in which lower commissioned prices are unavoidable.」
The emergence of low-cost overseas production companies and the possibility of lower order prices in order to secure orders continue to be identified as risks. - FY2017RestatedAnnual report
「Low-cost animation production companies, particularly in China, South Korea and the Philippines, are emerging. To secure orders, our group may also face situations in which lower commissioned prices are unavoidable.」
The emergence of low-cost overseas production companies and the possibility of lower prices in order to secure orders continue to be identified as risks. - FY2016First statedAnnual report
「Low-cost animation production companies, particularly in China, South Korea and the Philippines, are emerging. To secure orders, our group may also face situations in which lower commissioned prices are unavoidable.」
Identifies international new entrants and the rise of low-cost producers as competitive risks.