Below is an excerpt from the "Anime Production Market" Trend Survey 2024, compiled by the Japanese research firm Teikoku Databank.

As the method of anime viewing continues to shift from television to online streaming, the content industry, including anime, is gaining attention as a profitable sector overseas. According to the Association of Japanese Animations (AJA), the anime streaming market reached an all-time high in 2022. Riding this wave, the market size of the anime production industry (based on company sales) in 2023 (fiscal year from January to December) grew by 22.9% from the previous year's ¥275.783 billion to ¥339.020 billion ($2.35 billion). With strong demand for anime production continuing in 2024, the market is expected to reach around ¥340 billion ($2.36 billion), similar to the level of 2023, if current trends persist.

A Surge in Popular and Noteworthy Titles, Including Continuations and Remakes of 1980s-2000s Broadcasts

In 2023, several TV anime gained popularity, including The Apothecary Diaries, set in a rare "medieval Chinese-style world" among the many light novel adaptations based in medieval European settings. Manga-based titles like Frieren: Beyond Journey's End and Oshi no Ko also garnered significant attention, contributing to the expansion of the merchandise market. In theaters, Suzume (released in November 2022) became a major hit, surpassing ¥14 billion ($97.22 million) in box office revenue, and other notable films like The Boy and the Heron also made waves.

In 2024, TV anime continues to showcase popular titles, including Demon Slayer: Hashira Training Arc. Noteworthy announcements include new productions of sequels for long-running series like That Time I Got Reincarnated as a Slime and Minami-ke. Remakes of classic titles from the 1980s-2000s, such as Ranma ½ and Spice and Wolf, have also become topics of interest. In theaters, many films are expected to increase audience numbers through cross-media strategies, including notable releases like Detective Conan: The Million-Dollar Star and Uma Musume Pretty Derby: The Door of a New Era.

Anime Production Market Surpasses ¥300 Billion in 2023, Driven by Hit Theatrical Releases

The market size of the anime production industry (based on company sales) in 2023 (fiscal year from January to December) reached ¥339.020 billion ($2.35 billion), up 22.9% from the previous year's ¥275.783 billion. This growth exceeded the projections made in the July 2023 survey, setting a new all-time high. Despite challenges such as production delays due to a shortage of animators, the industry benefitted from a stable number of TV anime productions and large-scale projects for video-on-demand (VOD) service providers, contributing to market expansion. Additionally, record-breaking hits in theatrical anime, such as Suzume, significantly boosted box office revenues, which in turn enhanced the performance of anime production companies.

The demand for anime production remains strong in 2024, with the overall market continuing to thrive. While the market’s final outcome will also depend on the box office performance of 2024 theatrical anime releases, the anime production market is expected to reach around ¥340 billion ($2.36 billion), similar to the 2023 level, if current trends continue.

Shift in Traditional Business Models: Main Revenue Sources Transition from TV Broadcasting to 'Theatrical Releases' and 'Streaming' – IP Ownership as the Key

Starting in 2024, major titles like Demon Slayer: Hashira Training Arc will lead the way, followed by sequels to popular series such as Oshi no Ko, Blue Lock, and KonoSuba: God's Blessing on This Wonderful World!. According to data from the Cabinet Secretariat, Japan's content industry exports amount to approximately ¥4.69 trillion ($32.57 billion) annually, with "anime" accounting for about 30% of this total, highlighting its significant contribution. Japanese anime, particularly past classics, has solidified its position as a killer content in the global market, and further expansion of its market share worldwide is anticipated. Moving forward, the introduction of new anime titles and their success in reducing reliance on past works will be a key area of focus.

In the domestic market, production income from streaming services, bolstered by significant investments from companies like Netflix (USA) in original content, has become an important revenue source. Additionally, for serialized anime, there is a trend of concentrating production resources on theatrical releases, which offer significant returns when successful. To maximize revenue, more production companies are increasingly retaining intellectual property (IP) rights, signaling a shift from the traditional business model of contracting and producing TV anime for production committees.

On the other hand, many animators, who are the backbone of anime production, continue to face low wages. Meanwhile, specialized studios acting as subcontractors, without the benefit of IP income, are grappling with worsening profitability due to rising costs. The challenge lies in how to channel the expanding revenues from the anime industry, including IP income, back to the production sites at the bottom of the chain. As "generative AI" technology rapidly evolves and begins to make inroads into anime production, the issue of protecting Japanese anime from copyright infringement will also become a focal point moving forward.

Source : PR TIMES