IG Port, a major Japanese animation company, plans to reorganize its studio structure by merging subsidiary Signal.MD into Production I.G by June 1, 2025. This consolidation will reduce the company’s animation production units from three to two studios, leaving Production I.G and Wit Studio as the remaining operations.
According to IG Port, the merger aims to effectively utilize management resources between the two wholly-owned subsidiaries and is expected to improve overall group profitability. The company previously restructured in 2019 when it transferred production operations from another subsidiary, XEBEC, to an external buyer before absorbing the remaining business into Production I.G.
Signal.MD was established in 2011 as a specialized studio focused on full digital animation production, particularly targeting children’s and family content to differentiate itself within the group. However, as digital production techniques have become standard across the animation industry, Signal.MD’s original positioning has lost its distinctive edge.
Recent projects from Signal.MD include “Shinkalion: Change the World,” “Nina the Starry Bride,” and “The Fire Hunter.” The studio has expanded beyond its initial focus to work across various genres.
Financial reports show Signal.MD significantly trailing its sister studios, with revenue of ¥922 million ($8.3 million) and an operating loss of ¥150 million ($1.35 million) in fiscal 2022. By comparison, Production I.G reported revenue of ¥4.52 billion ($40.6 million) and Wit Studio ¥4.2 billion ($37.8 million) for fiscal 2024, highlighting the significant scale difference that likely influenced the consolidation decision.
