In a strategic business move, Toei, a major player in the film industry, has declared that its DVD and Blu-ray packaging business will be spun off and merged with Toei Video, effective April 1, 2024. This decision is aimed at consolidating overlapping operations within the Toei Group and enhancing overall management efficiency.
Toei Video, a subsidiary of the Toei Group established in 1972, is among Japan’s oldest video companies. It has been integral in handling the group’s extensive packaging needs. With this merger, Toei Video, which currently holds a diverse portfolio of DVDs and Blu-rays across various genres including movies, special effects, anime, and dramas, is set to nearly double its sales. The company is particularly noted for its work on popular series like “Kamen Rider” and “Super Sentai,” as well as successful anime titles such as “THE FIRST SLAM DUNK,” “ONE PIECE FILM RED,” and “Dragon Ball Super Hero.”
In the fiscal year ending March 2023, Toei Video reported sales of 5.2 billion yen but faced an operating loss of 83 million yen and an ordinary income of 157 million yen. Conversely, the packaging division of Toei, which is now set to be absorbed, recorded sales of 4,066 million yen and an operating income of 361 million yen in the previous fiscal year. This integration is expected to substantially increase Toei Video’s market presence.
As part of the reorganization, Toei has valued the packaging business at approximately 260 million yen and will acquire 642 shares in Toei Video as part of the transaction. Through this consolidation, Toei aims not only to streamline management resources but also to drive further growth and development in its business operations, thereby strengthening its position in the competitive entertainment industry.
