Toho CEO Says Direct U.S. Release Boosted Godzilla Revenue

Japanese film studio Toho has altered its global distribution strategy after finding unexpected success in the United States. CEO Matsuoka Hiro detailed this shift during a session at the Tokyo International Film Festival this Thursday.

The change followed the North American run of 'Godzilla Minus One.' The film collected $57.1 million in the region. This revenue came after Toho decided to manage the franchise's release in the U.S. market directly instead of relying on outside partners.

Matsuoka explained the origin of this decision during a panel with Bill Kramer, the CEO of the Academy of Motion Picture Arts and Sciences. They discussed the topic at an 'Academy in Tokyo' event. Matsuoka recalled visiting the United States and speaking with movie exhibitors. Those industry leaders noted that Hollywood studios were not producing enough content to meet audience demand. They encouraged Toho to consider releasing its own anime and live-action films.

These conversations highlighted the strong U.S. appetite for Japanese animation. Because Godzilla was already a core part of Toho's business, the company moved to handle the release itself. Matsuoka admitted that some colleagues worried about the plan. Toho had faced challenges distributing films outside Japan in the past. The new approach proved effective, with profits returning to the studio. 'It wasn't a strategy; we just tried,' Matsuoka said.

The studio is now applying this experience to its next major release. Takashi Yamazaki's 'Godzilla Minus Zero' is scheduled for Japanese theaters on November 3. The North American opening is set for November 6. Gkids, the U.S. distributor that Toho acquired in 2024, will manage the American release.

The panel also covered the relationship between cinemas and streaming services. Matsuoka described the two as coexisting rather than competing. He cited repertory programming, such as retrospectives of Hayao Miyazaki's films, as a way Japanese theaters have rebuilt audiences since the pandemic.

Kramer noted the growing international nature of film culture, referencing the success of 'Parasite.' He said Bong Joon Ho observed that audiences are becoming more comfortable with subtitles. Kramer added that members based outside the United States make up 25% of the Academy's voting body. He emphasized that the organization remains committed to recognizing human authorship as artificial intelligence changes the industry.