The original sources of animation are in comics, novels, dramas and games. At TMS, we use mainly comics. Our strength is in our brand power, which enables TMS to produce high quality works of animation using the expertise that we have developed over a long period of time. Both our planning division and our production division collaborate in animation planning with TV and film production companies, and realize these plans in the public arena. Thus we have produced many popular animations and earned a respectable reputation. In order to produce an animation, we create a group, which we call a “production-investment union.” This group consists of several companies connected to a specific animation. Each member of this group invests a certain amount in the piece. The amount invested represents the share in the commercial rights of a work of animation during its second usage. We will be compensated for production from this fund, which we call the first usage sales. However, it is essential for us to invest a certain amount in order to secure commercial rights for our second usage sales.
Sales in the international market are important second usages. We have been supplying our works to 130 TV stations in more than 90 countries, as well as in the merchandising business, using characters from our animations. Those markets are much bigger and much more profitable. We also promote broadband, mobile phone and satellite TV sales, and the film packaging business.