Increasing number of films opening at theaters

  Although the number of Japanese films opening at theaters and the number of theatergoers decreased for many years beginning in the 1980s, Japanese cinema began to recover in both measures by 2005. More than 400 films opened at theaters in 2006 and 2007, with ten of the 2006 releases and eight of the 2007 releases collecting box office receipts in excess of 3 billion yen. Since 2001, the number of theatergoers each year has consistently exceeded 160 million. The size of the market is extremely attractive for foreign films, and many industry professionals, particularly from the United States, regularly come to Japan to promote their productions.

Japan's appeal as a location for filming

  Thanks to its combination of tradition and history with modern high-tech landscapes, Japan is an appealing filming location, and many foreign films have shot scenes in Japan. "Lost in Translation" and "Babel" portrayed Tokyo in dramatic fashion. Recent increases in the number of local film commissions throughout Japan have been a factor in the country's growing popularity as a location for filming. Today about 100 such commissions assist with all aspects of the filming process, including arranging extras and introducing filmmakers to the agencies to which they must apply for permission to shoot, as well as accommodation and dining facilities.

International acclaim for Japanese cinema

  Japanese films have enjoyed remarkable success in key international film awards. "The Tasogare Seibei (The Twilight Samurai)", directed by Yoji Yamada, was nominated for Best Foreign Language Film at the 2004 Academy Awards, at which Ken Watanabe was also nominated as Best Supporting Actor for his performance in "The Last Samurai." In 2007, Rinko Kikuchi was nominated as Best Supporting Actress for her role in "Babel." At the Cannes Film Festival, Yuya Yagira won the award for Best Actor for his performance in "Dare mo Shiranai (Nobody Knows)" in 2004, and "Mogari no Mori (The Mourning Forest)" (directed by Naomi Kawase) was awarded the Grand Prix in 2007. At the Venice Film Festival, director Takeshi Kitano's "HANA-BI" won the Golden Lion (Grand Prix) award in 1997, and his film "Zatoichi" won the Silver Lion award in 2003.

Trend toward international joint productions

  In recent years it has become more common to see Japanese casts performing in overseas productions. There are many examples of recent major films in which Japanese actors and actresses have performed, including "The Last Samurai" (Ken Watanabe, Hiroyuki Sanada) in 2003, "Sayuri" (Koji Yakusho) in 2005, "Letters from Iwo Jima" (Ken Watanabe) and "Babel" (Koji Yakusho, Rinko Kikuchi) in 2007, and "Silk" (Koji Yakusho, Sei Ashina, Miki Nakatani) in 2008.
  There have also been initiatives to move joint productions toward an international framework in terms of not only cast members, but also production staff and financing. For example, "Red Cliff Part 1", which was released in 2008, attracted financing from China, Japan, Taiwan, and South Korea to fund total production costs of 10 billion yen. The diverse cast included Japan's Shido Nakamura, as well as actors and actresses from around Asia.