Anime is no longer a niche import. It’s pop culture’s new center of gravity, and no one is moving faster to take advantage of that advantage than the studio behind “Demon Slayer.”

Nishimoto Shu, named president of Aniplex earlier this year, has outlined a plan to deepen Sony Music Entertainment’s Japanese subsidiary’s presence in international markets, treat each of its intellectual property franchises as long-term global assets, and move cautiously toward artificial intelligence, all while keeping anime at the center of a business that already stretches from theatrical films to live-action dramas and live events.

Nishimoto joined Aniplex in 2009, starting in the Japan sales team before moving to the international division and then crossing over to Aniplex of America, where he became president in 2017. He took over the company’s top job when his predecessor Atsuhiro Iwakami was promoted to president of parent company Sony Music Entertainment Japan. In an interview with Variety – his first extensive conversation since taking office – Nishimoto reflects on his years leading the US operation. “Through those experiences, what I felt most strongly was that Japanese anime is really being embraced by so many people around the world,” he says. “What was once a market supported primarily by a core group of passionate fans has now become part of broader pop culture, especially among younger generations.”

He estimates the total value of Japan’s anime industry at around 4 trillion yen (approximately $25 billion), of which more than half is already generated by overseas markets, and expects that proportion to continue to rise. “We see our international business as an important driver of growth,” he says. “Even before the overseas market expanded to the scale we see today, Aniplex had taken on many challenges together with our business partners and Japanese creators. That experience and network are important strengths for us.”

Instead of redesigning what Aniplex makes, Nishimoto’s recipe is to expand the footprint of what it already does well. “We don’t want to be satisfied with where we are today,” he says. “Starting with each IP, we will continue to consider the most appropriate forms of production for that IP, including theatrical releases, streaming, merchandising, gaming, live events, exhibitions and other opportunities. By expanding the business areas in which each IP can thrive as much as possible, we hope to continue providing fans around the world with even richer and more diverse entertainment experiences.”

Nishimoto identifies Aniplex’s main competitive strength as a deliberate two-track production philosophy: balancing adaptations of exceptional source material (manga, novels, existing intellectual property) with original works developed directly from the creators’ own ideas. It’s a discipline, he says, that the company has consistently maintained and aims to protect. “I think Japanese anime is a highly original form of content, created through a unique combination of Japan’s distinctive worldviews, visual direction, storytelling, and cultural context,” he says. “This originality is the most important value we must continue to pursue, and it is also one of our greatest competitive strengths in the global market. Instead of diluting the individuality of our IPs to adapt them to the global market, I believe it is important to preserve the essence of Japanese creativity and offer its appeal more deeply to fans in each region.”

He’s equally precise about why that content is resonating internationally. The reasons are multiple, he says, but range from entirely new worlds and creative IPs to beloved series that have built a huge fandom for decades. The breadth and depth of the available catalog (spanning properties from both newcomers and global veterans) is itself part of what is driving appetite overseas. He argues that that diversity of offering means the industry is now able to meet a much wider range of fan needs in international markets than it was a few years ago.

On the question of what “Demon Slayer” taught Aniplex about building global franchises, Nishimoto offers a more nuanced answer than conventional wisdom might suggest. Local hits and global hits are, in his view, two genuinely different categories, and Aniplex does not conflate them or attempt to model one around the other. What has changed is simply that more Aniplex titles now qualify as both simultaneously. “To build a global franchise, I think it’s important to not simply sell a title overseas after it becomes a hit in Japan, but to have a global perspective from the beginning: from planning, production, marketing and business development,” he says. “This also means understanding the culture of each region and how fans in each market receive and interact with intellectual property. By working closely with local commercial partners, we can deliver the appeal of each title in the most appropriate and effective way.”

Those partnerships—with creators, publishers of original works, directors, and local licensees in international markets—are, Nishimoto says, the connective tissue that makes the entire operation work. Treats creative relationships and international business relationships as separate but equally important categories. “Going forward, we will further leverage this relationship and continue to work with leading creators and business partners to deliver new emotional experiences to audiences around the world,” he says.

Aniplex’s set of ongoing franchises extends far beyond “Demon Slayer.” Properties like “Fate,” “Sword Art Online” and “Puella Magi Madoka Magica” – the last of which Nishimoto executive produced – continue to generate revenue across all platforms and formats, and he insists that managing existing intellectual property with the same rigor applied to finding the next breakthrough is equally important to the company’s future. When asked to choose between managing intellectual property for the long term and pursuing new successes, he is direct: “Both are important to us, so we think the answer is both.” The company has been in operation for 21 years and produced more than 350 properties in that time.

In live action, Aniplex scored a significant hit last year with “Kokuho,” produced through its Myriagon Studio division, which debuted at Cannes and earned an Oscar nomination. It also became one of the biggest Japanese live-action hits of all time. Nishimoto doesn’t set specific numerical goals for the balance between anime and live-action production, saying that what matters in both formats is the same: a solid concept, outstanding creators, and genuine passion on the part of the producers involved. “Aniplex has created and nurtured many IPs, primarily in anime,” he says. “I think the experience can also be applied to live-action works, particularly in terms of identifying the essence of a project and enhancing its long-term value. Ultimately, what we aim to do is deliver IP that remains in the hearts of audiences and fans around the world, regardless of genre or format.” On further investment in live-action, he adds: “We remain open to taking on new challenges in live-action films and drama series when there are opportunities to participate in attractive projects.” The company is also currently streaming the live-action high school series “Viral Hit” on Netflix.

Within Sony’s broader ecosystem, Nishimoto points to Crunchyroll as a strategic resource rather than simply a distribution medium, describing it as a source of real-time intelligence about what is connecting with international audiences – information that directly shapes the projects Aniplex pursues. “I think one of our biggest competitive advantages is that each company in the Sony Group has its own independent strengths, and at the same time can collaborate in the most appropriate way for each individual title,” he says. “We will continue to strengthen collaboration with our group companies so that we can develop each title not simply as a one-off hit, but as a beloved franchise for the long term.” Crunchyroll, he adds, “with its global reach and distribution capabilities, is an important partner in expanding the value of anime intellectual property on a global scale.”

A-1 Pictures and CloverWorks, two of Japan’s leading animation production companies, are owned by Aniplex. “Over the past 20 years, A-1 Pictures and CloverWorks have become exceptional studios capable of creating truly exceptional IP,” he says. “I look forward to continuing to bring high-quality anime to audiences around the world by working closely with them.”

On the question of AI, Nishimoto says: “Aniplex’s top priority is to create works together with creators, including animators. If AI can have a positive impact on the work of creators or contribute to the further development of the creative process, we would be open to carefully considering its use.”