Risks to Film Business Earnings from the Audience-Drawing Power of Screened Films and Competition
First written in FY2016. 16 of 40 entries say "Mitigated", first in FY2019-Q3. Latest entry: 2026-09-29.
Musashino Kogyo moved to the "Worse" side of this theme in 2016.
0 other companies' latest entry also says "Materialised".
- FY2026Cinema business returned to profitability while closure losses persistedAnnual report
「As a result, total segment revenue was ¥424 million, down 8.6% year on year, while segment profit was ¥16 million, compared with a segment loss of ¥28 million in the same period of the previous year.」
Revenue from the film business fell 8.6% from the previous fiscal year, while segment results turned from a loss of ¥28.92 million to a profit of ¥16.97 million. However, the company recorded a ¥31.99 million loss on the closure of a business location associated with the closure of Cinema Qualite, and its operating base also contracted. - FY2026-H1Improved performance alongside cinema closuresAnnual report
「As a result, total segment revenue was ¥201 million, down 11.1% year on year, and the segment loss was ¥8 million, compared with a segment loss of ¥19 million in the same period of the previous year. As stated in the notice concerning the closure of Cinema Qualite announced on 7 August 2025, the company decided to close Cinema Qualite on 12 January 2026.」
Revenue from the film business fell 11.1% year on year, while the segment loss narrowed from ¥19.425 million to ¥8.562 million. Although the deterioration in profitability eased somewhat, the number of screening locations is expected to decline following the decision to close Cinema Qualite. - FY2025MitigatedAnnual report
「As a result, total segment revenue was ¥464 million, up 15.7% from the previous fiscal year, and the segment loss was ¥28 million, compared with a segment loss of ¥62 million in the same period of the previous year.」
Revenue from the film business increased 15.7% from the previous fiscal year, while the segment loss narrowed from ¥62.46 million to ¥28.92 million. Losses nevertheless remain, and the company has disclosed the risk that the release status and distribution performance of films may diverge from its plans. - FY2025-H1MitigatedAnnual report
「As a result, total segment revenue was ¥226 million, up 11.6% year on year, and the segment loss was ¥19 million, compared with a segment loss of ¥25 million in the same period of the previous year.」
Revenue from the film business increased 11.6% year on year, while the segment loss narrowed from ¥25.502 million to ¥19.425 million. The segment continues to report a loss, and revenue risks remain. - FY2024WorsenedAnnual report
「As a result, total segment revenue was ¥401 million, down 5.2% from the previous fiscal year, and the operating loss was ¥62 million, compared with a segment loss of ¥51 million in the same period of the previous year.」
Revenue from the film business fell 5.2% from the previous fiscal year, while the operating loss widened from ¥51.84 million to ¥62.46 million. Although attendance at some screenings was strong, overall attendance remained sluggish. - FY2024-Q3MitigatedAnnual report
「In the film distribution-related business, the film Living with Dementia: A Prescription for Hope (Japanese film), distributed by a consolidated subsidiary, was screened in various locations amid strong demand for screenings by local governments and other organizations. The 2020 Hong Kong film Still Human continued to be selected for screenings. In December, the company distributed the Hong Kong suspense-horror film Hong Kong Strange Story: Three Distorted Spaces. As a result, total segment revenue was ¥293 million, down 1.9% year on year, and the segment loss was ¥41 million, compared with a segment loss of ¥48 million in the same period of the previous year.」
Overall attendance remained sluggish, and revenue fell 1.9% year on year. Meanwhile, the segment loss narrowed from ¥48.745 million in the same period of the previous year to ¥41.03 million, and the deterioration in the film business eased somewhat year on year. - FY2024-Q2MitigatedAnnual report
「Meanwhile, partly due to the impact of consumer trends amid rising prices, attendance during the six-month period ended the second quarter fell short of expectations. As a result, total segment revenue was ¥203 million, down 0.2% year on year, and the segment loss was ¥25 million, compared with a segment loss of ¥29 million in the same period of the previous year.」
Attendance fell short of expectations due to rising prices and other factors, and revenue risks remain in the film business. Meanwhile, the segment loss narrowed from ¥29.409 million in the same period of the previous year to ¥25.502 million. - FY2024-Q1MitigatedAnnual report
「As a result, segment revenue was ¥105 million, up 20.2% year on year, and the segment loss was ¥8 million, compared with a segment loss of ¥19 million in the same period of the previous year.」
The film business continues to report a segment loss, but revenue increased 20.2% year on year and the segment loss narrowed from ¥19 million to ¥8 million. The impact of revenue risks associated with films shown, film festivals and other activities has eased somewhat year on year. - FY2023MitigatedAnnual report
「As a result, segment revenue was ¥423 million, up 14.3% from the previous fiscal year, while the operating loss was ¥51 million, compared with an operating loss of ¥64 million in the previous fiscal year.」
Cinema revenue increased 14.3% from the previous fiscal year, and the operating loss narrowed from ¥64.69 million to ¥51.84 million. The operating deficit continues, and revenue risk remains. - FY2023-Q3MitigatedAnnual report
「Although revenue exceeded the previous year's actual results, it remained below pre-pandemic levels and fell below forecast. As a result, segment revenue was ¥299 million, up 5.6% year on year, and the segment loss was ¥48 million, compared with a segment loss of ¥51 million in the same period of the previous year.」
Although the Cinema business remained below pre-pandemic levels and forecast, revenue increased 5.6% year on year and the segment loss narrowed from ¥51.435 million to ¥48.745 million. Revenue risk remains, although it has eased somewhat year on year. - FY2023-Q2WorsenedAnnual report
「The prolonged spread of COVID-19, together with the impact of consumer trends resulting from the weaker yen and higher prices, caused overall audience numbers to remain sluggish and revenue to fall below forecast. As a result, segment revenue was ¥203 million, up 4.3% year on year, and the segment loss was ¥29 million, compared with a segment loss of ¥22 million in the same period of the previous year.」
Although attendance for individual films was strong, overall audience numbers remained sluggish because of the pandemic, the weaker yen and higher prices. The Cinema segment loss widened from ¥22.511 million to ¥29.409 million. - FY2023-Q1WorsenedAnnual report
「In the film exhibition business, Musashino-kan screened films including It Feels So Good and Sunflower, while Cinema Qualite showed Hatching and School Meals Movie: Graduation. However, audience numbers remained sluggish because of the prolonged impact of the COVID-19 pandemic and other factors, and total revenue fell below forecast.」
Although films were screened, audience numbers remained sluggish because of the spread of COVID-19 and other factors, and total Cinema revenue fell below forecast. - FY2022MitigatedAnnual report
「As a result, segment revenue was ¥370 million, up 28.1% from the previous fiscal year, while the operating loss was ¥64 million, compared with an operating loss of ¥82 million in the previous fiscal year.」
The Cinema business continues to report an operating loss, but revenue increased 28.1% year on year and the operating loss narrowed from ¥82.66 million to ¥64.69 million. Revenue risk remains, although it has eased somewhat from the previous fiscal year. - FY2022-Q3WorsenedAnnual report
「During the cumulative third quarter, operations continued while measures to prevent the spread of COVID-19 were implemented in line with government and local-authority policies and guidelines. However, box-office performance remained difficult. As a result, segment revenue was ¥283 million, up 26.4% year on year, and the segment loss was ¥51 million, compared with a segment loss of ¥49 million in the same period of the previous year.」
Although revenue increased 26.4% year on year following the release of distributed films, audience numbers remained sluggish and the segment loss widened from ¥49.836 million to ¥51.435 million. - FY2022-Q2MitigatedAnnual report
「Although high-quality films were well received in this operating environment, overall performance during the cumulative second quarter remained difficult. As a result, segment revenue was ¥195 million, up 58.1% year on year, and the segment loss was ¥22 million, compared with a segment loss of ¥30 million in the same period of the previous year.」
Although difficult performance continued in the Cinema business, revenue increased 58.1% year on year and the segment loss narrowed from ¥30 million to ¥22 million, indicating a partial year-on-year easing of the deterioration in profitability. - FY2022-Q1WorsenedAnnual report
「In the film exhibition business, Musashino-kan screened Jean-Paul Belmondo: The Best Selection 2 and The Clovehitch Killer, while Cinema Qualite showed films including On the Ground and Cruella. Following the declaration of a state of emergency in response to the spread of COVID-19, both theaters were temporarily closed for a certain period and subsequently continued operating while implementing measures to prevent the spread of infection, including a period of alternate-seat sales. The impact on performance was significant. As a result, segment revenue was ¥78 million, up 267.0% year on year, and the segment loss was ¥19 million, compared with a segment loss of ¥15 million in the same period of the previous year.」
Although the temporary closure period was shorter than in the same period of the previous year and revenue increased 267.0% year on year, the segment loss widened from ¥15 million to ¥19 million. Revenue risk in the Cinema business from infection, closures and alternate-seat sales persists. - FY2021WorsenedAnnual report
「As a result, segment revenue was ¥289 million, down 46.7% from the previous fiscal year, and the segment loss was ¥82 million, compared with a segment loss of ¥62 million in the previous fiscal year.」
Closures, reduced operating hours and seat restrictions resulting from COVID-19 caused Cinema revenue to decline 46.7%, while the segment loss widened from ¥62.06 million to ¥82.66 million. - FY2021-Q3WorsenedAnnual report
「During the cumulative third quarter, both theaters were temporarily closed for a certain period to prevent the spread of COVID-19, after which operations continued in compliance with industry guidelines and government and local-authority policies. However, box-office performance was difficult. In the film distribution business, the consolidated subsidiary distributed the self-acquired Hong Kong film Still Human, mainly in regional cities, and provided films for film-related events. As a result, segment revenue was ¥223 million, down 47.2% year on year, and the segment loss was ¥49 million, compared with a segment loss of ¥31 million in the same period of the previous year.」
Temporary closures and operations under infection-control measures caused Cinema revenue to fall 47.2% year on year, while the segment loss widened to ¥49.836 million. Although films were distributed and provided for events, revenue risk worsened. - FY2021-Q2WorsenedAnnual report
「Segment revenue was ¥123 million, down 59.4% year on year, and the segment loss was ¥30 million, compared with a segment loss of ¥11 million in the same period of the previous year.」
Temporary closures and alternate-seat sales caused Cinema revenue to fall 59.4% year on year, while the segment loss widened from ¥11 million to ¥30 million. Revenue risk in the Cinema business is worsening. - FY2021-Q1WorsenedAnnual report
「In the film exhibition business, Musashino-kan screened The Collini Case and Until He Can See Again, while Cinema Qualite screened films including Capital in the Twenty-First Century and Skin. In response to government policies and requests from local authorities related to the spread of COVID-19, both theaters were temporarily closed for a certain period. Although they subsequently reopened with alternate-seat sales, limiting seats to half the normal operating capacity, the impact on operating performance was significant and box-office revenue declined sharply. Segment revenue was ¥21 million, down 85.0% year on year, and the segment loss was ¥15 million, compared with a segment loss of ¥7 million in the same period of the previous year.」
Temporary closures and alternate-seat sales caused a substantial decline in box-office revenue. Segment revenue fell 85.0% year on year, and the segment loss was ¥15 million. The Cinema business's audience and revenue risks have become further quantifiable. - FY2020WorsenedAnnual report
「Both Musashino-kan and Cinema Qualite screened some popular films that attracted audiences, but overall, the company recognizes and analyzes the lack of programming and outreach capabilities as having affected operating performance. In addition, the spread of COVID-19 at the end of the fiscal year affected performance, as screenings in March were held with preventive measures such as selling alternate seats.」
In addition to insufficient programming and outreach capabilities, alternate-seat sales resulting from the spread of COVID-19 affected the Cinema business's operating performance, with the segment loss widening from ¥60.46 million in the previous fiscal year to ¥62.06 million. - FY2020-Q3MitigatedAnnual report
「Box-office revenue remained sluggish overall. As a result, segment revenue was ¥424 million, down 4.4% year on year. Although advertising and other expenses increased in connection with various events, the segment loss was ¥31 million, partly because operating expenses related to the film distribution business declined, compared with a segment loss of ¥40 million in the same period of the previous year.」
Although sluggish box-office revenue and declining revenue continued, the segment loss narrowed from ¥40 million to ¥31 million because of lower film distribution-related expenses. - FY2020-Q2MitigatedAnnual report
「Box-office revenue remained sluggish overall. As a result, segment revenue was ¥303 million, down 0.5% year on year. Although advertising and other expenses increased in connection with various events, the segment loss was ¥11 million, partly because operating expenses related to the film distribution business declined, compared with a segment loss of ¥32 million in the same period of the previous year.」
Although sluggish box-office revenue and higher event expenses continued, the segment loss narrowed from ¥32 million to ¥11 million because of lower film distribution-related expenses. - FY2020-Q1MitigatedAnnual report
「In the film exhibition business, Musashino-kan screened high-quality films including Ana and the End of the World and American Animals, while Cinema Qualite showed films including How to Marry a Pretty Wife and Beautiful Boy. As part of the 100th-anniversary program for Musashino-kan, the company also presented benshi screenings, including The Cabinet of Dr. Caligari, and continued to show carefully selected films characteristic of a mini-theater. However, box-office revenue remained sluggish. Operating expenses related to the film distribution business declined from the same period of the previous year, resulting in segment revenue of ¥143 million, down 5.1% year on year, and a segment loss of ¥7 million, compared with a segment loss of ¥15 million in the same period of the previous year.」
Although sluggish box-office revenue continued, the segment loss narrowed from ¥15 million to ¥7 million because of lower film distribution-related expenses, partially easing the deterioration in profitability. - FY2019-Q3MitigatedAnnual report
「Shinjuku Musashino-kan screened popular films including Bad Genius and Billionaire Boys Club, while Cinema Qualite showed films including A Ghost Story and Mary Shelley, all of which were well received. However, box-office revenue declined slightly from the same period of the previous year. The burden of operating expenses related to the film distribution business at a consolidated subsidiary also had an impact, resulting in segment revenue of ¥443 million, down 1.7% year on year, and a segment loss of ¥40 million, compared with a segment loss of ¥44 million in the same period of the previous year.」
Although popular films were well received, lower box-office revenue and the burden of distribution-related expenses continued. The decline in revenue was limited to 1.7% year on year, and the segment loss narrowed from ¥44 million to ¥40 million, indicating a partial easing of the deterioration in profitability that had continued through the previous quarter. - FY2019-Q2WorsenedAnnual report
「Shinjuku Musashino-kan screened The Name of the Son, The Last House and Birds Without Names. Cinema Qualite held the festival Qualite Fantastic! Cinema Collection 2018 and screened numerous distinctive films, including the Chinese-Hong Kong co-production Angel's Wear White, which was acquired and distributed by the company, all of which were well received. However, box-office revenue remained sluggish overall. The burden of operating expenses related to the film distribution business at a consolidated subsidiary also had an impact, resulting in segment revenue of ¥305 million, down 4.4% year on year, and a segment loss of ¥32 million, compared with a segment loss of ¥31 million in the same period of the previous year.」
Although popular films, the film festival and self-acquired and distributed films were well received, box-office revenue remained sluggish. Revenue fell 4.4% year on year, and the segment loss widened from ¥31 million to ¥32 million. - FY2019-Q1RestatedAnnual report
「In the film exhibition business, Shinjuku Musashino-kan screened many high-quality films, including Phantom Thread and The Long Day Closes, while Cinema Qualite showed films including Call Me by Your Name and On Body and Soul, meeting the expectations of cinema audiences. However, box-office revenue remained sluggish overall. Operating expenses related to the film distribution business were also incurred, resulting in segment revenue of ¥150 million, down 5.7% year on year, and a segment loss of ¥15 million, compared with a segment loss of ¥19 million in the same period of the previous year.」
Although high-quality films were screened, sluggish box-office revenue and distribution-related expenses continued, resulting in a 5.7% year-on-year decline in revenue. The segment loss narrowed from the same period of the previous year, but revenue risk persists. - FY2018WorsenedAnnual report
「At Cinema Qualite, Kattе ni Furеterо updated the theater's box-office record for an individual film, and many other popular films, including The Mermaid and Gimme Danger, were screened. However, box-office revenue remained sluggish overall. In addition, operating expenses related to the film distribution business were recorded. As a result, segment revenue was ¥591 million, up 33.1% from the previous fiscal year, while the segment loss was ¥58 million, compared with a segment loss of ¥46 million in the previous fiscal year.」
Although there were popular films and films that set new records, sluggish box-office revenue at Cinema Qualite and distribution-related expenses caused the Cinema segment loss to widen from ¥46 million to ¥58 million. - FY2018-Q3WorsenedAnnual report
「Despite the impact of lower box-office revenue at Cinema Qualite and the burden of operating expenses related to the film distribution business at a consolidated subsidiary, segment revenue was ¥451 million, up 61.7% year on year, while the segment loss was ¥44 million, compared with a segment loss of ¥39 million in the same period of the previous year.」
Although revenue increased following the reopening of Shinjuku Musashino-kan, the segment loss widened from ¥39 million to ¥44 million because of lower box-office revenue at Cinema Qualite and the burden of distribution-related expenses. - FY2018-Q2WorsenedAnnual report
「Despite the impact of lower box-office revenue at Cinema Qualite and the burden of operating expenses related to the film distribution business at a consolidated subsidiary, segment revenue was ¥319 million, up 99.4% year on year, while the segment loss was ¥31 million, compared with a segment loss of ¥4 million in the same period of the previous year.」
Although revenue increased following the reopening of Shinjuku Musashino-kan, the segment loss widened from ¥4 million to ¥31 million because of lower box-office revenue at Cinema Qualite and the burden of distribution-related expenses. - FY2018-Q1WorsenedAnnual report
「Despite lower box-office revenue at Cinema Qualite and operating expenses related to the film distribution business, segment revenue was ¥159 million, up 119.4% year on year, while the segment loss was ¥19 million, compared with a segment loss of ¥9 million in the same period of the previous year.」
Although segment revenue increased following the reopening of Shinjuku Musashino-kan, the segment loss widened from ¥9 million to ¥19 million because of lower box-office revenue at Cinema Qualite and distribution-related expenses. - FY2017MaterialisedAnnual report
「As a result, segment revenue was ¥444 million, down 20.1% from the previous fiscal year, partly due to the closure of Shinjuku Musashino-kan, while the segment loss was ¥46 million, compared with a segment loss of ¥23 million in the previous fiscal year.」
The closure of Shinjuku Musashino-kan, initial renovation costs and higher film distribution-related expenses caused Cinema revenue to fall 20.1% from the previous fiscal year, while the segment loss widened. - FY2017-Q3MaterialisedAnnual report
「Although many distinctive films were screened to favorable reviews, operating expenses related to film distribution increased at a consolidated subsidiary. The closure of Shinjuku Musashino-kan due to seismic reinforcement work on the tenant building also had an impact. As a result, segment revenue was ¥279 million, down 40.5% year on year, and the segment loss was ¥39 million, compared with a segment loss of ¥22 million in the same period of the previous year.」
Although the films themselves were well received, higher distribution-related costs and the closure of Musashino-kan resulted in lower Cinema revenue and a segment loss. - FY2017-Q2MaterialisedAnnual report
「At Cinema Qualite, the company screened numerous popular films addressing the needs of cinema audiences, including Ex Machina, Sing Street and God Willing, as well as holding the festival Qualite Fantastic! Cinema Collection 2016. Although operating performance was solid, preparations for the release of the self-acquired and distributed film The Big Miracle of a Little Garden and the closure of Shinjuku Musashino-kan due to seismic reinforcement work on the tenant building resulted in segment revenue of ¥160 million, down 51.1% year on year, and a segment loss of ¥4 million, compared with a segment loss of ¥12 million in the same period of the previous year.」
Although screenings of popular films and the film festival performed solidly, the closure of Musashino-kan and distribution preparation costs and other expenses led to continued declines in Cinema revenue and a segment loss. - FY2017-Q1MaterialisedAnnual report
「At Cinema Qualite, the company selected and programmed a diverse range of distinctive Japanese and international films, including Norma: My Perfect Storm, The Intouchables and Whispering Star. However, the temporary closure of Shinjuku Musashino-kan due to seismic reinforcement work on the tenant building, together with increased operating expenses related to film distribution through self-acquired films being prepared by a consolidated subsidiary, resulted in segment revenue of ¥72 million, down 54.1% year on year, and a segment loss of ¥9 million, compared with a segment loss of ¥12 million in the same period of the previous year.」
Cinema revenue fell 54.1% year on year and the segment posted a loss. However, the company attributed this mainly to the closure of Shinjuku Musashino-kan and increased operating expenses related to self-acquired film distribution, rather than solely to the drawing power of the films shown. - FY2016First statedAnnual report
「The box-office performance of the Cinema business is heavily influenced by the drawing power of the films shown. Providing a comfortable environment for watching films is our responsibility, and continuing to show films that suit the scale and atmosphere of our theaters and have strong audience appeal is essential to maintaining stable box-office performance. The business is therefore highly dependent on the films shown, and their selection entails a risk of lower revenue.」
The company also identifies as risks a lack of hit films for mini-theaters, competition from nearby multiplexes and rising equipment maintenance costs.