Key facts
- Dentsu is making its first material capital investment in a film with 'The Angry Birds Movie 3'.
- Dentsu is contributing to the $66 million marketing and distribution budget for 'The Angry Birds Movie 3'.
- Dentsu aims to bring clients and brands closer to creators and IP owners at early stages of entertainment development.
- Dentsu sees an opportunity in the changing Hollywood landscape with fewer large studios and more independent producers seeking marketing help.
- Dentsu has integrated a couple of unnamed clients into 'The Angry Birds Movie 3' through brand partnerships.
Dentsu, a Japanese advertising agency group, is expanding its role in Hollywood by becoming an investor in film and television projects. The company's most prominent venture is its involvement in "The Angry Birds Movie 3," set for release in December, where it is credited as a producer and is contributing to the film's $66 million marketing and distribution budget. This marks Dentsu's first material capital investment in a film, though the exact stake size was not disclosed.
Beyond "Angry Birds 3," Dentsu has been actively pursuing other entertainment ventures. In June, it partnered with Made By Us Studios to develop and produce creator-led films and shows. Earlier in the year, Dentsu invested in Gore Verbinski's sci-fi comedy "Good Luck, Have Fun, Don't Die," which was released in North America in February. Additionally, the company has a partnership with the PGA of America scheduled for 2025 to produce and finance an animated feature about sports.
Executives at Dentsu state that more projects are in development, with plans to invest in a variety of TV and film titles across different genres and scales. The company's strategy is to position itself closer to creators and intellectual property owners, enabling brands to engage more creatively at the early stages of content development. This approach aims to capitalize on the growing trend of creators embedding themselves within Hollywood and the evolving entertainment ecosystem, which sees fewer large studios and a rise in independent producers seeking marketing and financial support.
Dentsu's move aligns with other major advertising holding companies that are increasing their presence in Hollywood. These firms seek to establish themselves as entertainment experts for brands looking to reach consumers who increasingly avoid traditional advertising. By investing in and co-producing content, companies like Dentsu aim to secure opportunities for client integrations and co-promotions. Dentsu has already integrated unnamed clients into "The Angry Birds Movie 3" through such partnerships.
Competitors like WPP and Publicis have also made significant inroads into entertainment. WPP's Motion Entertainment funds and produces content, while Publicis's Media Content & Innovation arm invests in show development, both offering brands early access to opportunities and talent. Experts suggest that media agencies are most successful when they combine media buying with specialized expertise in integration and content development.