Toei Animation announced the launch of ETERNA Animation, a new brand dedicated to original content production, as the 70-year-old studio seeks to diversify beyond its dependence on established franchises like Dragon Ball and One Piece.
The timing follows Toei’s first-ever Academy Award nomination for its short film “Magic Candies,” which was nominated in the Best Animated Short Film category at the 97th Academy Awards. The studio has built its reputation largely on adapting popular manga properties rather than creating original stories.
ETERNA’s debut project, “FOXING: Kitsuné-tsuki,” will be directed by Takeru Shinozuka, a 30-year-old filmmaker making his commercial directorial debut. The film explores themes of isolation and self-confrontation, marking a departure from Toei’s typical family-friendly content.
The initiative comes as Toei faces pressure from declining birthrates and changing viewing habits that threaten its traditional business model of children’s programming tied to toy merchandising. Despite strong financial performance with net sales increasing 13.7% to 100.8 billion yen ($693 million) in fiscal 2025, the company acknowledges the need for new revenue streams.
Toei is simultaneously investing in AI technology partnerships and expanding globally, suggesting ETERNA represents just one element of a broader strategic pivot for the veteran animation house.
