Bandai Namco will merge its animation video packaging unit Bandai Visual and animation music production subsidiary Lantis into a single company named Bandai Namco Arts. The combined business will have a total of 240 employees and will be led by Kazumi Kawashiro, who is currently president of Bandai Visual. Meanwhile, Lantis president Shunji Inoue will move into the role of vice president of Bandai Namco Arts.
Bandai Visual was founded in 1983 as a subsidiary of toymaker Bandai under the name AE Planning. That same year, the company released director Mamoru Oshii's Dallos, the first anime title to use the original video animation (OVA) designation. Lantis, which was established in 1999 by former employees of Bandai Music Entertainment, became a subsidiary of Bandai Visual in 2006 but remained a separate business. The trade names of Bandai Visual and Lantis, which have been familiar to consumers and industry players for decades, will cease to exist following the merger.
In the animation business, Bandai Namco will shift the focus of Sunrise from that of animation production to intellectual property (IP) creation. Although Sunrise's operating revenue only forms a small portion of Bandai Namco's total revenue—animation sales are forecasted at just under 20 billion yen out of a total 630 billion yen in group consolidated sales for the fiscal year ending March 31—properties such as Gundam and Love Live! are of interest to the group's video, music, game, and other businesses.Sunrise has come to rely on existing major titles, including Gundam, in order to grow the business in recent years. While this strategy was an effective way to draw upon the studio's strengths in animation production, Bandai Namco plans to revitalize the studio by leveraging on its experience in creating lasting manga and anime properties. In its three-year plan through March 2021, Bandai Namco indicates it plans to invest an additional 25 billion yen into creating new IP, on top of existing investment plans.
According to Tadashi Sudo of the Animation Business Journal, Bandai Namco's reorganization, primarily around the video and music businesses, puts the company in a better position to compete with production conglomerates such as Avex Pictures and Sony Music Group's Aniplex. The combination of Bandai Visual and Lantis will eliminate redundancies in both businesses, as well as allow Bandai Namco Arts to drive new investment into music and live entertainment while capitalizing on Sunrise's IP creation strengths.
Other changes planned by Bandai Namco include the creation of Bandai Spirits, a hobby business aimed at adult customers, as a subsidiary of the main Bandai toys and hobby unit. Additionally, the amusement machine business of Bandai Namco Entertainment will be split off into a new company named Bandai Namco Amusement. Bandai Spirits will have approximately 450 employees, while Bandai Namco Amusement will have approximately 750 employees.
Bandai Namco's reorganization will come into effect at the start of the new fiscal year on April 1.
Source: Animation Business Journal 1, Animation Business Journal 2
