“A 34 Trillion-Won Fandom Market, Yet...” Japanese Entertainment Agencies Go Bankrupt in Droves

【Seo Hyejin, Tokyo correspondent for Financial News】As Japan’s “oshikatsu” (fandom activities) market has grown to nearly 35 trillion won, the number of entertainment agency bankruptcies has also hit a record high. Fandom spending is expanding, but the existing agencies’ revenue models are under pressure from slower growth in TV advertising and an increase in entertainers switching agencies or going independent. In response, companies in the industry are seeking to diversify their revenue streams through fan events, merchandise and paid memberships.

Nikkei Asia, the English-language publication of the Nihon Keizai Shimbun, reported on the 28th that Japan’s oshikatsu market was estimated at 4.1 trillion yen (about 34.822 trillion won) last year by marketing firm CDG and consulting firm Oshikoko, up 17% from the previous year.
“Oshikatsu” combines “oshi,” meaning a favorite, and “katsu,” meaning activity. It refers to activities such as supporting idols, actors, online creators and characters by attending performances or buying related merchandise and paid content.
The live entertainment market also expanded. According to the PIA Research Institute, Japan’s live entertainment market reached a record 856.4 billion yen last year, up 12.6% from the previous year, driven by larger-scale performances and rising ticket prices, among other factors.
By contrast, bankruptcies among Japanese entertainment agencies totaled 16 from January through August this year, surpassing the previous annual record of 15, set in 2016. Daisuke Iijima, a researcher at Teikoku Databank, which compiled the figures, explained that “the name recognition of an agency’s talent alone is no longer enough,” and that not only small firms but also companies that once had a strong presence in the industry are going bankrupt.
One challenge facing agencies is the changing way they recoup their investments. Traditionally, they invested in discovering and training new talent, then managed them over the long term and recovered their costs through TV appearances and advertising. But the rise of digital platforms and slower growth in TV advertising are putting pressure on this revenue model.
Another factor is that Japan’s Fair Trade Commission has stepped up scrutiny of practices that restrict entertainers from switching agencies or going independent. As entertainers move more freely, agencies may find it harder to recoup their investments in training and promotion over the long term.


Amid these changes, approaches that directly turn fan engagement into revenue are attracting attention. Alterna Channel, a YouTube content production group with more than 2.7 million subscribers, attracts fans with free videos and earns revenue from events and merchandise. A video about Osaka filmed early this month also focused on promoting an event there next month. Tickets cost 5,000 yen, with total attendance projected at 880, and trading cards, T-shirts and other items will also be sold at the venue.
Management company UUUM has also expanded its business beyond its former focus on online advertising and brand sponsorships to include merchandise, events and memberships. President Tadayuki Umekage said, “This is an era in which individuals themselves become media companies,” adding, “Revenue sources have become far more diverse.”
Fan clubs, too, are evolving into a source of recurring income, offering exclusive live streams, chat and digital content in addition to priority ticket booking. The aim is to increase paid services fans can use even when there are no concerts.
Tomohiro Kokubo, president of fan club platform provider Sukiyaki, said, “In the past, a monthly fee of around 300 yen was typical, but 600 yen is now widely accepted,” adding, “Some fans spend 5,000 to 6,000 yen a month on premium memberships and live streams.”
The next challenge is attracting fans overseas. With low birth rates and a declining population limiting growth in the domestic market, UUUM and others are exploring expansion into Southeast Asia.
Nikkei Asia pointed to K-pop as a model. K-pop companies have built business models that attract overseas fans through translation and social media and connect concerts, e-commerce, memberships and fan communities. Kokubo praised the South Korean fandom industry’s proactive promotion overseas. Umekage also said South Korean companies have tended to think about the global market from the outset.
Japan is also promoting its music overseas through initiatives such as Music Awards Japan, launched last year. President Umekage said, “Japan has plenty of content with global appeal,” adding, “The challenge is to turn that popularity into sustainable fandoms and businesses overseas.”
[email protected] Seo Hyejin Reporter