Current state of the industry
Due to the increased demand, the anime industry produces a high number of shows every year. New broadcast programs clearly outnumber long-running broadcast programs, resulting in a high turnover of content. A high demand can also be observed in the film industry, with animated movies regularly ranking at the top of the box office. Examples include the 2016 Makoto Shinkai hit “Your Name” and the theatrical adaptation of “Demon Slayer,” which was released in 2020 and has become Japan’s highest-grossing movie to date.The boom in animation has led to an increase in animation companies since the turn of the millennium. Animation works are often produced by so-called production committees, which consist of different corporations specializing in a certain field of business. While this reduces each company's risk and enables specialization in a market where success remains difficult to predict, the actual production companies earn only a fraction of the generated revenues. As a result, animators are often severely underpaid, and many quit in the first years of their careers.
Anime and the video streaming business
A breakdown of the industry revenue by segment shows that merchandising is by far the most valuable business within the domestic market. However, in recent years, high growth has been observed particularly in the anime streaming business. The competition between major platforms, such as Netflix, Amazon Prime Video, and Disney+, has spurred on the Japanese streaming market and opened up new possibilities for animation production companies, which are increasingly in demand as content creators.Cooperations with major video streaming services have become a lucrative business, leading to many shows being created with international audiences in mind. To better position itself in the distribution market, Sony acquired the anime streaming website Crunchyroll for almost 1.2 billion U.S. dollars in 2021, which can be seen as a further indicator of the importance streaming will likely have for the anime industry in the coming years.
