Risk of Film Release Delays and Insufficient Audience Attendance
First written in FY2018. 6 of 10 entries say "Materialised", first in FY2020. Latest entry: FY2025.
Toho moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2020: 3 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「The possibility that these risks will materialize can be said to always exist to a certain extent as long as uncertainty remains an inherent characteristic of the film, animation and theater businesses.」
For the film, animation and theater businesses, downside risk to box-office performance, production delays, postponed releases, cancellations of broadcasts and streaming, and canceled performances were identified as common ongoing risks. Countermeasures presented included a broad range of content, a balanced lineup and risk management during the production stage. - FY2024ReframedAnnual report
「The possibility that these risks will materialize can be said to always exist to a certain extent as long as uncertainty remains an inherent characteristic of the film, animation and theater businesses. To address these risks, we consistently seek to acquire a broad range of high-quality content. In the film and theater businesses, we mitigate the highly volatile exhibition risk by developing a balanced lineup throughout the year.」
The risks were reorganized from risks centered on postponements of releases due to the COVID-19 pandemic to the ongoing uncertainty inherent in the film, animation and theater businesses, including attendance, production delays and postponed releases. The disclosure presented a response based on a broad and balanced lineup. - FY2022MaterialisedAnnual report
「In the film exhibition business, TOHO CINEMAS LTD. and others closed theaters, shortened operating hours and restricted seat sales in Tokyo, Osaka and elsewhere as a result of the state of emergency declaration. The business remained in a difficult environment even after the declaration was lifted, due to postponed scheduled releases and measures to prevent a rebound in infections.」
In addition to theater closures, shortened operating hours and seat restrictions, postponements of scheduled releases continued even after the state of emergency declaration was lifted, and the risks of postponed releases and insufficient attendance continued to materialize. - FY2022-Q3MaterialisedAnnual report
「In the film exhibition business, TOHO CINEMAS LTD. and others closed theaters, shortened operating hours and restricted seat sales in Tokyo, Osaka and elsewhere as a result of the state of emergency declaration. The business remained in a difficult environment even after the declaration was lifted, due to postponed scheduled releases and measures to prevent a rebound in infections. However, revenue increased because the films distributed by the Group referred to above became hits and the period during which theater closures and other restrictions were in place was shorter than in the same quarter of the previous year.」
While postponements of scheduled releases and restrictions on seat sales continued even after the state of emergency declaration was lifted, the shorter period of restrictions and hit films resulted in higher revenue in the film exhibition business. - FY2022-Q2MaterialisedAnnual report
「As a result of repeated state of emergency declarations, we temporarily closed theaters and commercial facilities, shortened operating hours, restricted seat sales, canceled theatrical performances and suspended sales of tickets for some performances in response to requests from some local authorities, including Tokyo and Osaka, to suspend operations.」
Closures and shortened operating hours at theaters and commercial facilities, restrictions on seat sales, postponed film releases and canceled theatrical performances continued to occur. - FY2022-Q1MaterialisedAnnual report
「Under these circumstances, the Group continued operating after implementing appropriate infection-prevention measures. However, following the third state of emergency declaration issued on 23 April, we were forced to temporarily close theaters and commercial facilities and postpone releases of films distributed by the Group and cancel theatrical performances in response to requests from some local authorities, including Tokyo and Osaka, to suspend operations.」
Following the third state of emergency declaration, temporary closures of theaters and commercial facilities, postponed film releases and canceled theatrical performances occurred again. - FY2021-Q2RestatedAnnual report
「In addition to being forced to postpone releases of films distributed by the Group and cancel theatrical performances, we suspended operations at theaters and commercial facilities nationwide in response to the state of emergency declaration. After the declaration was lifted, we gradually resumed operations after implementing appropriate infection-prevention measures based on guidelines issued by the government, local authorities and relevant organizations. Releases of postponed films and theatrical performances have also resumed.」
While postponed releases and suspended operations continued to occur, the disclosure also noted the gradual resumption of operations after infection-prevention measures were implemented and the resumption of releases of postponed films. - FY2021-Q1MaterialisedAnnual report
「In addition to the postponement of releases of films distributed by the Group and the cancellation of theatrical performances, we temporarily closed some theaters and commercial facilities and shortened their operating hours from March onward, taking into account the spread of the infection and various requests from the government and local authorities. After the government’s state of emergency declaration issued in April was extended nationwide, we suspended operations at theaters and commercial facilities across Japan.」
In addition to postponed film releases, theaters and commercial facilities nationwide actually suspended operations, resulting in an operating loss for the film business as a whole. - FY2020MaterialisedAnnual report
「Following requests to refrain from holding large-scale events, theatrical performances were forced to close. Cinemas were also severely affected as major films were successively postponed, while theater closures under the state of emergency and requests for people to refrain from going out further reduced attendance.」
The effects on audience attendance of postponed film releases, cinema closures, and requests for people to refrain from going out materialized. - FY2018First statedAnnual report
「There are risks that the scheduled release of films produced by our group may be postponed due to production delays or other reasons. In addition, although our group seeks to acquire films with strong box-office potential based on the strength of its theater network, there is also a risk that some films may fail to attract sufficient audiences.」
The company explicitly identified the risks of production delays and postponed film releases, as well as the risk that some films may fail to attract sufficient audiences.