The Japanese Anime Industry was valued at a whooping $17.5 Billion in 2016 (1). Anime industry is notorious for not only underpaying their staff and animators, but also overworking them. 2 to 3 decades ago, “anime” wasn’t known in the West, but due to the influx of online streaming channels, anime industry got a boost.
With works of Studio Ghibli, being a classic-favorite in the industry, and more recent successes of Attack on Titan and Your Name; Anime has seen unprecedented growth on a global scale.
Anime Distribution and Online Streaming
Anime producers primarily earn from the original TV run in Japan, and the merchandise that sells afterwords. This didn’t give Anime a wide-enough scale for growth. However, anime distributors like, Crunchyroll and Funimation, gave a platform for foreign audience to also enjoy anime.
Last year, they announced their partnership to better serve their growing demand (2). Recently, Sony is in process to acquire Funimation, value at $150 Million! (3).
Amazon and Netflix soon entered the race and got distribution rights to several anime. This was the true boost the industry needed.
Game Changer
Netflix did not stop in just buying distribution rights, they decided to invest in making anime. With the majority of the $8 Billion budget of 2018, expected to produce 30 anime projects for next year, Netflix will not only change the paradigm of the market but also disrupt the industry (4).
The industry in Japan in always severely tight on budget (5). However, with the Netflix label, past known successes on animation originals, and the global reach of Netflix, several animation companies and talent will be flocked towards this new window of opportunity.
What’s in for Netflix?
Netflix’s audience are people who mostly love to binge-watch. Who watches anime? – people who (definitely) binge-watch. Netflix will be gaining loyal subscriber base who are not hesitant to spend (Note: Anime Merchandise is super expensive) and are willing to move on to different platforms if they get quality content to watch and enjoy. Netflix will be tapping into a huge market whose characteristics match their target audience to the core.
Edit 2/2/18: Netflix Original Series, such as Violet Evergarden have taken a kick start, and have been going good with fans. Before the month ended, Netflix had yet another announcement (6). They announced a partnership with three of the biggest anime production houses. This can be the deal-breaker of making quality Anime on a global level.
If this new venture of Netflix is a success, it’s bound to leave competition behind.
Until then, happy watching!
🙂 FTK
Credits:
(1) Anime Industry Revenue Via Goboiano.com
(2) Crunchyroll and Funimation Partnership Via IGN.com
(3) Sony acquiring Funimation Via IGN.com
(4) Via HollywoodReporter.com
(5) Via Comicbook.com
(6) Via Comicbook.com
Photo via Visualhunt.com
