KADOKAWA Corporation (Headquarters: Chiyoda-ku, Tokyo; CEO: Takeshi Natsuno; hereinafter "KADOKAWA"), and PT Gramedia Asri Media (Headquarters: Jakarta, Republic of Indonesia; CEO Priyo Utomo; hereinafter "Gramedia"), the largest publishing group and the largest bookstore network in Indonesia, agreed to establish a joint venture company (hereinafter "New Company") for the purpose of jointly developing a manga and light novel publishing business, sales of related merchandises, and digital platform operating business in Indonesia on January 5th.
The impact of this matter on the consolidated business results for the current fiscal year is expected to be immaterial.
The KADOKAWA Group has adopted a business strategy of promoting a "Global Media Mix with Technology," centered on the creation and worldwide deployment of a diverse portfolio of intellectual property (IP), and is strengthening and expanding the global business, particularly in North America and Asia. On this basis, KADOKAWA’s new mid-term management plan announced in November 2023 aims to achieve overseas sales of 70 billion JPY in the final year of the plan, the fiscal year ending March 31, 2028.
Indonesia has the world's fourth largest population and a high percentage of younger generations, and the popularity of ACG content (content related to animation, comics, and games), especially Japanese IP, is increasing. We will further increase our overseas sales by entering this new market directly.
Gramedia, as part of the Kompas Gramedia Group which is involved in a wide range of businesses in Indonesia including printing, newspapers, television, radio, digital media, education, hotels, housing and more, owns Indonesia's largest publishing group and a network of 123 bookstores throughout the country. Gramedia also has the entire publishing infrastructure, including book publishing, distribution, and retailing.
The establishment of the New Company will combine KADOKAWA's IP development capabilities and digital platform operating know-how with Gramedia's publishing infrastructure to accelerate the expansion of the New Company's content business and make it the largest ACG content provider in Indonesia.
With respect to this agreement, Priyo Utomo, CEO Group of Retail and Publishing of Gramedia, and Takeshi Natsuno, CEO of KADOKAWA Corporation, stated the following respectively.
In Indonesia, the manga and light novel market has been growing remarkably in recent years as the population of young people increases. In this context, we hope to establish a joint venture with KADOKAWA, which has a wealth of experience in Southeast Asia, and to expand our content business together in Indonesia by sharing our mutual know-how.
Takeshi Natsuno (KADOKAWA)
We are very pleased to partner with Gramedia, a leading Japanese content business development company in Indonesia, as it is very important for the expansion of our overseas business. In addition to the fact that KADOKAWA's IP development in the country's publishing market is expected to have ample room to expand, we will maximize the synergies generated by both groups by promoting cooperation in the digital platform operation business in the future.
|PT PHOENIX GRAMEDIA INDONESIA
|Jakarta, Republic of Indonesia
|January 2024 (scheduled)
|Publication of Indonesian-language manga and light novels Sales of related merchandise, etc.
|KADOKAWA Corporation 51%
PT Gramedia Asri Media 49%
One of the largest media conglomerates in Indonesia with a wide range of businesses including publishing, retail, web services, radio, television, education, hotels, and real estates, etc. Kompas Gramedia Group has the largest publishing group in Indonesia and the largest bookstore network with 123 outlets throughout the country, as well as operating an e-book platform.
KADOKAWA CORPORATION develops a wide range of entertainment including publication, videos, games, Web services, education, operating IP experiential facilities such as TOKOROZAWA SAKURA TOWN. By utilizing technology, KADOKAWA CORPORATION implements a global media mix strategy, focusing on stable Intellectual Property (IP) creation and delivering it to the world in a variety of forms.