Shochiku and Toei, two of Japan’s leading film companies, have announced a strategic partnership with Flag, a prominent digital film promotion company, to enhance film marketing in the digital age. On July 31, 2024, the three companies unveiled plans to develop a cutting-edge digital advertising platform as part of their “Cinema DX Project,” aimed at bridging the gap in box office performance between blockbuster hits and other films.
Through a third-party allotment of new shares, Shochiku and Toei will each acquire approximately 7% of Flag’s shares. This collaboration seeks to revolutionize film marketing by leveraging customer data to create a more effective advertising strategy, enhancing audience targeting and measuring ad effectiveness.
Founded in 2004, Flag has extensive experience in digital marketing, having promoted over 1,000 films, including anime projects. With Shochiku’s 251 screens and Toei’s 175 screens nationwide, the alliance will utilize data from 426 theater screens to drive their digital initiatives.
This strategic move reflects the industry’s shift from traditional media to digital and social platforms for film promotion. As major competitor Toho acquired digital marketing firm Gaie last year, Shochiku and Toei’s collaboration with Flag positions them to advance their digital marketing capabilities and cultivate talent, aiming for sales exceeding 300 million yen (approximately $2.1 million USD) by 2027.
