In case you missed it: New York City will see not one but two anime business events this year, with Crunchyroll announcing plans to hold an invitation-only summit on the sidelines of New York Comic Con in October, just weeks after Anime NYC’s own anime licensing summit that was announced earlier this month.

• Our thought bubble: I myself had been planning to attend New York Comic Con this year, so I’m eager to see how Crunchyroll’s increased presence will add to the event.

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Anime production committee discourse finds traction

Growing scrutiny of the anime industry’s production committee model by regulators and news media is leading to increased interest over anime studios that are building alternative business models to retain ownership over their works.

Why it matters: Public interest in anime production reached a new high last month when SusHi Tech Tokyo, Asia’s largest startup event so far this year, hosted a panel with executives from anime studios Production I.G, CoMix Wave Films, and MAPPA.

How it happened: MAPPA president and chief executive officer Manabu Otsuka is a regular subject in Japanese media interviews about anime’s business model thanks to the studio choosing to be the sole financier of the Chainsaw Man anime series.

• Production I.G has invested in the anime titles it creates since the 1980s, allowing the studio to no longer be entirely dependent on production committee contracts, and CoMix Wave Films has been able to earn overseas revenue from Makoto Shinkai’s original anime films.

Zoom out: Studio Chizu, the studio behind Mamoru Hosoda’s anime films, employs a newer business model called a limited liability partnership, which Japan introduced in 2005, to manage ownership of its titles.

• Studio Chizu president and chief executive officer Yuichiro Saito, in an interview with the Nikkei financial newspaper, says an LLP established jointly with Nippon Television Network and Kadokawa acts as the sole rights manager for the studio’s entire catalog of works.

• “By having the LLP handle exhibitions, film concerts, as well as negotiations with streaming platforms, we are now able to manage the value of our works over long-term spans of 50 or even 70 years, thereby enabling us to steadily build and accumulate our brand equity,” Saito told the Nikkei.

Reality check: As previously reported by Animenomics, Japan’s government likely won’t strictly regulate how anime production committees operate, especially since many in the anime industry still see benefits in committees.

• However, statements by studio executives like Studio Chizu’s Saito and CoMix Wave Films chairman Noritaka Kawaguchi highlight a need for the anime industry to look beyond the proliferation of production committees that are established to create short-term anime projects.

Genda stumbles in North America arcade revitalization

Genda is on a quest to rejuvenate North America’s arcade gaming corners with claw machines containing anime prizes, but it faces logistical problems that reflect the challenges Japan’s anime merchandise distributors face in the sprawling territory.

Why it matters: Outside Japan, anime media consumption leads all other spending like merchandise and events, and rightsholders are racing to build infrastructure to reduce reliance on content revenue and increase merchandise availability overseas.

• As previously reported by Animenomics, Genda is turning the more than 13,000 arcade gaming sites it has acquired in North America since 2024 into merchandise distribution points for anime like Naruto and My Hero Academia.

Catch up quick: Genda management noticed in November that sales were starting to decline despite originally tripling early last year as the company started adding claw machines with anime merchandise as prizes.

• Genda had asked merchandisers at National Entertainment Network, an operator of unmanned arcade game corners it purchased in 2024, to make daily store visits and bank deposits, which is the operating model used at Player One Amusement Group, an operator of manned arcade centers acquired the following year.

• The company, however, didn’t account for the difference between NEN’s 10,000 unmanned corners and Player One’s 110 manned sites, leading to prize shortages as NEN merchandisers struggled to restock all their assigned locations.

What happened: “NEN’s approximately 200 field merchandisers were overwhelmed by the high-hurdle task of visiting four to five locations daily while also making bank runs, despite the fact that distances between stores in North America are unlike Japan and require one to two hours of driving,” Genda told investors in March.

Where things stand: Earlier this year, Genda introduced an internal software called Kiddleton Force to reduce manual cash counting and to help merchandisers better plan routes and anticipate prize replenishment needs.

• Already, the app’s introduction is “leading to a recovery in the frequency of store visits by our staff”, the company followed up with investors this week.

What’s next: Genda plans to increase procurement of Japanese anime and character merchandise to between 60 and 70 percent of the total procurement cost in its North American business, triple the level seen two fiscal years ago.

Clippings: Crunchyroll surpasses 21 million subscribers

Anime streaming service Crunchyroll surpassed 21 million paying subscribers as of the end of March, a 24 percent increase compared to the same time last year. (Sony Corporate Strategy Presentation)

A Sony data team has been responsible for increasing the marketing efficiency of the company’s films, like Demon Slayer: Infinity Castle, and uncovering latent fans whose family members might be interested in the titles. (Nikkei Asia)

Pachinko machine maker Fujishoji established a subsidiary to invest in new anime productions as Japan’s gambling machine makers increasingly rely on collaborations with anime properties to draw new players. (Otaku Lab)

Kinokuniya Book Stores of America’s sales of English-language manga are now four times 2019 levels, Kinokuniya executive vice president Keijiro Mori told attendees of a seminar in Tokyo last month. (The Bunka News)

Pirate webtoon website closures led to double-digit jumps in the average daily new installs of leading South Korean webtoon platforms Naver Webtoon, Kakao Page, and Ridibooks. (The Chosun Biz)

Anime remains popular in China amid ongoing diplomatic tensions between Beijing and Tokyo as Chinese consumers flocked to anime stores and events over the May Day holiday period. (The Yomiuri Shimbun)

Toho takes control of IP promotion across all markets

“We have transitioned from a passive licensing-only model to a proactive structure where we manage promotions ourselves to enhance IP value. For titles with confirmed release dates, we begin marketing more than six months in advance, aiming to maintain constant engagement with fans even between major releases.”

— Hiroyasu Matsuoka, Toho president and chief executive officer

Context: Matsuoka, answering questions after Toho’s year-end earnings presentation last month, detailed the evolution of the operations of its Los Angeles subsidiary while also addressing developments since its GKIDS acquisition.

• “The M&A of GKIDS was a significant achievement,” he lauded. “Their prestige in the anime world is unparalleled, and their integration into our group has allowed us to handle original IP-based anime and motion picture productions like Kokuho, which was previously out of reach.”

What’s next: “We intend to expand this model to Asia and Europe,” Matsuoka said, pointing to the expansion of Toho Entertainment Asia in Singapore and new efforts to replicate the North American model in Europe through its Anime Limited acquisition.

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In case you missed it: Anime NYC, the New York City anime convention that spun off from New York Comic Con in 2017, is entering the anime business conference scene this year by hosting the entertainment-focused X Tracks Licensing Summit.

• The one-day, invitation-only conference is part of a series of summits founded in 2022 by former Hollywood reporter and brand licensing industry veteran Steven Ekstract.

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Fashion trade show makes space for anime, IP apparel

Fashion World Tokyo, Japan’s twice-yearly trade show for fashion manufacturers and designers, plans to carve out a section of its show floor space for exhibitors of apparel and accessories collaborating with anime and entertainment IPs.

Why it matters: A surging ‘oshikatsu’ economy at home and the growing popularity of anime abroad has turned clothing, which is often seen as a walking billboard, into new opportunities for rightsholders to build brand awareness.

What they’re saying: “For IP holders, this presents an opportunity to anticipate new collaborations and value creation through synergies with the fashion sector,” Fashion World Tokyo organizers told The Bunka News newspaper. “We hope that content holders will utilize this space as a venue for forging new connections.”

Backgrounder: Fashion World Tokyo is Japan’s largest fashion trade show for apparel, footwear, and fashion accessory makers and draws approximately 800 exhibitors and 20,000 attendees.

• The upcoming autumn show in October will dedicate space for about a dozen exhibitors in the Brands and Designers Expo area to highlight current trends in IP-based fashion.

• Its spring edition in April 2027 will further expand the IP × Fashion Zone footprint to a planned total of 17 exhibitors.

Zoom out: Anime collaborations with fashion and cosmetics brands have increased significantly in recent years, according to the Association of Japanese Animations.

• “Currently, for Generation Z and Millennials, fashion and makeup are considered important means of expressing individuality, and combining them with anime and video game characters and worldviews can make the wearers’ likes more visible,” wrote the authors of AJA’s annual anime industry report.

Anime rightsholders shift to direct merchandising deals

Japan’s anime rightsholders are making more direct merchandising deals with foreign licensees today, reclaiming control of the licensing process and bypassing agents that have long represented anime properties abroad.

Why it matters: Japanese rightsholders have long relied on licensing agents in the United States to educate buyers about anime, but anime’s global surge in popularity in recent years means buyers no longer need the introduction.

What’s happening: Television broadcasters, some of the biggest anime rightsholders, face a shrinking domestic market and are redirecting their sales teams from program sales to international rights management, licensing consultant Roger Berman writes in a column for CharaBiz.com.

• As previously reported by Animenomics, Japan’s television stations hold the rights to many legacy anime properties, and they are also investing in new titles to drive growth.

• Commercial television stations seeking to grow their anime and IP businesses are increasingly featuring profiling current team members of those departments on recruitment pages in order to attract new graduates.

Friction point: Rightsholders are increasingly unhappy with agents that prioritize only profitable titles while neglecting emerging ones, creating an opening for agents that have the resources and time to treat anime properties with care.

• “Even if an IP has yet to achieve significant commercial success, the rightsholder believes in its future potential and is committed to nurturing its overseas licensing business over the course of many years,” Berman wrote.

• Last week, Kodansha signed Reemsborko as an agent to represent the upcoming The Ghost in the Shell series outside Asia, significantly expanding the UK-based agency’s reach after representing anime properties in Europe for years.

Clippings: Itochu launches Opanchu Usagi anime series

Trading conglomerate Itochu, through its anime production joint venture with Sky Perfect JSAT, will produce an anime based on the illustrated character Opanchu Usagi, whose popularity in on par with Chiikawa. (Nikkei Asia)

• “Characters that look somewhat pathetic or imperfect, like Opanchu Usagi, appeal to people in the age of social media,” said Hikaru Inadome, who leads iRightsport, the Itochu subsidiary responsible for growing its character merchandise business abroad.

Manga and Japanese literature are driving an increase in the share of Japanese as a source language for translation in major publishing markets across Europe. (ThinkPub)

• Japanese is the second most popular source language in France’s book market, accounting for 20 percent of all translations, and in Germany it overtook French as the third most popular original language.

Kakao-owned Piccoma will launch short, animated episodes on its webtoon digital reading platform in Japan later this month, drawing backlash from Japanese artists who publish works on the service. (K-Comics Beat)

LINE Digital Frontier established a webtoon studio joint venture with Kadokawa and South Korean webtoon studio Redice Studio, best known for Solo Leveling, to produce webtoons based on Kadokawa light novel titles. (Press release)

Merchandise mystery boxes are unpopular in Japan, according to a survey of more than 35,000 consumers, with nine in ten respondents indicating that they dislike or hate the retail strategy. (Toyo Keizai Online)

Aspiring manga artists can now submit manuscripts for review by Kadokawa manga editors using a new online submission portal that’s available in English and Japanese. (Press release)

Studio chairman advocates for fewer anime productions

“I believe the view that the anime industry is facing a labor shortage is mistaken.”

— Noritaka Kawaguchi, CoMix Wave Films chairman and former chief executive officer

Context: Kawaguchi, speaking with the Nikkei financial newspaper, argues that the anime industry’s perceived labor challenges are rooted in overproduction from the growing number of orders from anime production committees.

• What he’s saying: “No one can possibly watch every single television anime series, yet the number of titles continues to grow. Even animators who lack the necessary skills are forced to work on the front lines, causing quality to decline. We should reduce the number of titles and focus on improving the quality of each individual work,” he said.

• Yes, but: Kawaguchi doesn’t necessarily see anime production committees as bad actors. “On the contrary, it’s a system that offers significant benefits to studios, as the investing companies provide various forms of support.”

Cosmetics firm releases an AI anime ad, then retracts it

A Japanese cosmetics company has been forced to withdraw an advertising campaign for a line of moisturizers that involved a short anime made using artificial intelligence technology after observers noted its resemblance to Sailor Moon anime designs.

Why it matters: Generative AI use is growing in Japan’s advertising industry, and the country’s legacy companies are turning to the technology to help revive their brands.

Catch up quick: Utena, a 99-year-old cosmetics manufacturer, started its campaign last week in the Tokyo and Osaka area train stations, pointing viewers to the AI-made anime advertisement on the company’s YouTube channel.

• In a since-deleted press release, Utena said the moisturizer brand’s consumers are mostly seniors aged 60s and 70s, and the “deliberately unusual” anime campaign was meant to attract younger consumers.

What we heard: “All I can think of is that it’s making a mockery of anime,” voice actor Ayano Fukumiya wrote on X after seeing the advertisement. “I’m really worried that this kind of thing will spread and people will start thinking, ‘This is okay.’”

How it happened: The short anime, also removed from YouTube, was created using technology built by CrestLab, an NTT Docomo-backed startup that’s making software to help anime studios incorporate AI into the production process.

• Production planning was led by marketing technology firm Digital Garage, and AI creative studio Kidoku handled artistic design.

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Sports teams, events, and brands are increasingly tapping into anime’s global surge in order to find new audiences and customers, and Adidas has become the latest athletic brand to market new products by tapping into anime-style imagery.

Why it matters: Anime media has outsized influence on social media, and for legacy brands in the sporting industry, using anime visuals can help grow engagement from younger audiences on social media platforms.

Where things stand: Sports has long been a popular genre in anime and manga, and professional athletes have also become outspoken about their love for the Japanese works.

• Research commissioned by anime streaming service Crunchyroll and published last year found that anime’s fan following exceeds that of many sports leagues, especially in younger generations.

• Viewership data published by Netflix also show that sports anime in their catalog, like Haikyu!! and Captain Tsubasa, have audiences that rival live-action sports programming.

Zoom in: Adidas tapped Hong Kong actor-turned-fashion-entrepreneur Edison Chen to help launch the Mundial apparel and footwear collection this weekend with anime-style imagery featuring Brazilian footballer Raphinha and Colombia’s Luis Díaz.

• Adidas and Chen have been releasing new apparel and footwear designed by his fashion brand Clot over the last two years, including a Chinese New Year-themed collection earlier this year that also used anime-style assets.

• “Anime has been something I’ve been drawn to since I was a kid,” Chen told Animenomics. “In anime, you can portray elaborate scenes and ideas that don’t exist in real life.”

How it happened: Animation for the Mundial campaign was directed by California- based digital artist Annie Choi, who caught Chen’s attention after she created short-form animation using anime aesthetics for several luxury fashion houses.

• Choi, who uploads her anime-style works to Instagram and draws more than 600,000 followers, has been recognized by fashion industry media outlet The Business of Fashion for “her ability to fuse high-end branding with dreamlike narratives”.

• “She’s very innovative in the way she uses her animation style, quick transitions, transformation moments,” Chen said of Choi. “Being able to have her translate my ideas, and incorporate the football players into that world, was really fun.”

The bigger picture: For Adidas and other legacy brands, independently made anime-style videos have become a viable alternative over licensing anime properties directly from Japanese rightsholders.

• Anime is increasingly being defined by consumers outside Japan to encompass more than animated content made in Japan, according to a consumer survey by advertising giant Dentsu that was published last year.

• When anime viewers in ten countries were asked how they define ‘anime’, about 36 percent of said that they would include Japanese-inspired animated content produced outside Japan in the definition, compared to 37 percent who said that it only includes animated works made in Japan.

Go deeper: Read our interview with Clot founder and creative director Edison Chen.

You’ve collaborated with Adidas for a few years through traditional campaigns, but this year is the first time that you’re highlighting anime as part of your narrative. Why has your approach changed?

Anime has been something I’ve been drawn to since I was a kid. I’ve always been interested in ways of communicating that feel beyond this world. In anime, you can portray elaborate scenes and ideas that don’t exist in real life. Lately, I’ve been on more of a spiritual journey, thinking about what exists beyond the physical realm. Working with anime allowed me to extend that thinking creatively.

Collaborating with Annie Choi felt natural. I’ve followed her work for years, and this project finally felt like the right moment to come together. Every time I work with Adidas, we try not to make it about only my vision. It’s about the product, the story, and the community around it. Even bringing in players like Raphinha and Luis Díaz through animation felt like a dream. It might not be “real” in a traditional sense, but it feels real to me.

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In case you missed it: CyberAgent publicly announced a television anime adaptation of Takeru Hokazono’s sword action manga and social media darling Kagurabachi, two years after Toyo Keizai reported that the company had won a joint bid with Shochiku for the anime production rights from publisher Shueisha.

• Cypic, the anime studio that CyberAgent acquired from its mobile gaming affiliate Cygames, is the main animation contractor for the series, signaling the company’s commitment in developing flagship IPs internally amid a pivot to anime.

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Kadokawa doubles down on U.S. manga store expansion

Kadokawa has formed a new subsidiary to oversee its manga retail operations in the United States, two and a half years after the publisher launched a marketing push in North America and began opening a chain of Manga Spot stores.

Why it matters: Kadokawa’s push into retail in North America and other parts of the world demonstrates the publisher’s growing desire to create opportunities to more directly connect with manga readers and other customers.

• In the United States, manga publishers especially rely heavily on brick-and-mortar retail stores to convert curious customers into buying ones.

The details: Kadokawa Retail Ventures will be led by Kurt Hassler, who leads manga publisher Yen Press (in which Kadokawa is part owner) and who helped now-defunct retailers Borders and Waldenbooks build expansive manga selections in the 2000s.

• Since 2022, Hassler has also been president of Kadokawa World Entertainment, Kadokawa’s North American holding company, to lead publisher’s overall strategy in the region.

• In a podcast with comics industry consultant Atom Freeman last year, Hassler outlined his vision of turning Manga Spot as a retail destination for the manga-reading demographic.

• “We’re investing a lot in it, but I think it’s worth investing in because the biggest problem most publishers have is that we don’t get enough face time with the customer,” Hassler told Freeman.

Zoom in: Kadokawa has opened ten Manga Spot stores to date in a wide range of cities, from metropolitan areas like New York and Chicago to more remote hubs like Grove City, Penn., and Ketchikan, Alaska, where manga has less retail presence.

• Hassler admits that the goal is to turn Manga Spot into a more widespread chain of stores, but “if there’s a comic shop nearby, I’m really not looking to compete with that. I want to go where there’s less competition.”

The intrigue: Hassler sees shopping malls as opportunities for Manga Spot locations despite continuing struggles in the U.S. shopping mall business.

• “If a [specialty retailer and longtime anime merchandise distributor] Hot Topic can survive [in shopping malls], why can a Manga Spot not?” Hassler argues.

Broadcasters opt for short anime amid crowded TV slots

Japan’s television broadcasters are making significant investments in anime as anime’s overseas market continues to grow, but challenges in programming and production are forcing them to shift of some of that money toward development of short anime.

Reality check: Broadcasters are constrained by the number of available programming slots on their networks and don’t have enough available airtime in a given week for all the anime being produced today.

What’s happening: To overcome these constraints, Japan’s commercial broadcasters are investing in short anime projects—some as short as 90 seconds per episode—with characters that have strong merchandising opportunities.

• Since last year, TV Asahi has been airing an anime based on the emotional support emperor penguin character Koupenchan, whose merchandise market was estimated at ¥5 billion (US$31 million) before the COVID-19 pandemic.

• TV Asahi also enlisted its subsidiary anime studio Shin-Ei Animation, of Doraemon and Crayon Shin-chan fame, to help plan short anime projects for the characters Sirotan and Pop Pap Polters, both airing later this year.

• Broadcasting group TBS has created a short anime workgroup within its anime department, developing anime for characters like the cat Nmeneko and the San-X teddy bear icon Rilakkuma, plus a new stop-motion series titled Candy Caries.

Zoom in: TV Tokyo, long considered a pioneer in anime broadcasting, will experiment with an anthology approach, airing multiple short anime titles in one 30-minute time slot.

• “Creating a 30-minute narrative anime can take three or four years before it’s even broadcast, and it’s expensive and risky to produce, but short anime can be created in one to two years from the initial idea, and they’re much easier to experiment with through trial and error“, TV Tokyo anime department deputy director Nariomi Ishii told The Tsukuru culture magazine.

Clippings: ‘Gundam’ film raises Guns N’ Roses profile

Mobile Suit Gundam Hathaway’s second film has caused streams of hit song “Sweet Child o’ Mine” by hard rock band Guns N’ Roses to quadruple in Japan since the film’s release in January, thanks to its usage as the film’s ending theme. (The Nikkei)

• Bandai Namco Filmworks was pessimistic that the band’s record label Universal Music would agree to the proposal, but Demon Slayer’s successes have convinced some artists that collaborations with anime could bring in new fans.

Pony Canyon wrote down ¥6.3 billion (US$39 million) in the value of its anime assets, signaling that the Fuji Media-owned production company might have abandoned a number of anime projects in development. (Otaku Lab)

• Pony Canyon posted its third straight quarterly operating loss in the three months ended in December 2025, and revenue was down 21 percent over the previous year, primarily due to a lack of hit anime titles.

Secondhand retailer BookOff opened its 50th overseas location this month, its 22nd in the United States, as demand for anime media and merchandise continues to grow in North America. (The Reuse Economic Journal)

An athlete management agency signed an intellectual property agreement with the Captain Tsubasa protagonist Tsubasa Ozora, giving the agency the ability to represent the character in licensing and community engagement efforts. (The Asahi Shimbun)

Japan’s Ministry of Justice convened a study group to draft guidelines for restricting the unauthorized use of artificial intelligence technology to recreate faces and voices of voice actors and singers. (The Yomiuri Shimbun)

Aichi Prefecture’s Ghibli Park will exhibit new artwork from director Hayao Miyazaki starting in July as the 85-year-old animator continues to work since the completion of his last film in 2023. (The Mainichi)

Japan seeks to avoid heavy-handed regulation in anime

“As a nation, we have to be mindful of one thing: this [entertainment] industry has reached its current stature not because of support from the state or public institutions, but because of the efforts of the creators who produce the content and the fans who cherish it. The challenge lies in how we can support and boost this industry—providing encouragement without interfering or getting in the way—a delicate balancing act that the government has rarely managed to execute successfully in the past.”

— Kimi Onoda, Japanese minister of state for economic security

Context: Onoda, who worked adjacent to the anime industry before entering politics, reiterated to attendees of the Niconico Chokaigi festival of Internet culture over the weekend that Prime Minister Sanae Takaichi’s government is cautiously considering how it much regulatory pressure it should put on the anime industry and the rest of the entertainment sector.

• What she’s saying: “We can’t really say how the production committee system for anime should be done or what the industry should do,” Onoda explained, but she believes work needs to be done to standardize production processes in the interest of improving development of human resources.

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In case you missed it: Bandai Namco Filmworks and Legendary Pictures’ production of a live-action Gundam film has begun in Queensland, Australia.

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Bandai Namco partners with Plott on short anime IPs

Bandai Namco Entertainment last month unveiled its first attempt at launching a new entertainment property using short anime, nearly one and a half years after investing in Tokyo-based Plott, a startup that produces short anime for YouTube.

Why it matters: Tengutosen depicts sword-wielding characters battling demons and will test whether short anime designed for vertical screens can reproduce the energy and commercial prospects of anime that are based on boys’ action manga.

Catch up quick: Short anime titles made by Plott have drawn a combined 12 million subscribers and 15 billion views on YouTube, thanks to their popularity among Japan’s Generation Z audiences.

Zoom in: While Plott has focused on developing its titles solely for YouTube until now, the partnership with Bandai Namco Entertainment aims to expand Tengutosen beyond the screen after it debuts in July.

• “In particular, we hope to leverage [Bandai Namco’s] strengths in merchandise development, such as Gashapon capsule toys and Ichiban Kuji lotteries,” Plott line producer Kosuke Hori said in an interview.

• Hori says short anime rarely displays raw emotional expression, but Tengutosen’s production team is designing backstories and other story elements that will develop as the series progresses.

The bigger picture: YouTube is enabling animators and studios around the world to experiment with new video formats and increase audience participation, the company said in a recent trends report.

• Tengutosen’s format as a short anime is forcing the creative team to devise ways to make its action-based storytelling more appealing, focusing on the appeal of the swords themselves.

• “Short anime tend to have fewer frames that can be drawn compared to television anime, so it’s difficult to express action that relies on the number of frames,” Hori explained.

Yoyogi Animation evolves into talent incubator group

Yoyogi Animation Academy, one of Japan’s oldest training schools for animators and voice actors, and three startups managing Japanese entertainment talent have joined forces to create an integrated talent incubation company.

The intrigue: Although the establishments adopted Yoyogi Animation’s legacy name, the collective is instead led by Utaite, a startup managing 2.5-dimensional talent that has raised at least ¥12.6 billion (US$79 million) since 2022.

• Utaite founder and chief executive officer Masashi Kurata, 35, will serve as chief executive officer of the combined Yoyogi Animation Group.

Why it matters: The scale of the integration signals an ambition to combine training infrastructure with IP creation and talent management to replicate the model of South Korean talent agencies in Japan, says entertainment industry analyst Taisuke Murata.

Backgrounder: Yoyogi Animation Academy has graduated some of Japan’s top voice actors, like Takahiro Sakurai and Nana Mizuki, and it collaborated with former AKB48 idol Rino Sashihara to produce =LOVE, an idol group popular among Generation Z.

• Utaite and Voising, one of the two other startups, manage 2.5-dimensional performers that use anime-style digital avatars online while also appearing physically at live events and concerts.

• Asobi God, the last partner, is an artist management startup founded by a music video director and a song composer.

What we’re watching: Because Yoyogi Animation has the largest voice actor pipeline in the anime industry, any effort to direct the school’s talent toward Utaite and Voising could threaten the existence of anime voice actor agencies like Aoni Production and 81 Produce.

Clippings: Bushiroad secures ¥10b for IP development

Trading card maker Bushiroad secured four five-year bank loans totaling ¥10 billion (US$63 million) to boost efforts to develop new and existing intellectual properties, accelerate overseas expansion, and double sales revenue. (Gamebiz)

IG Port posted record operating profit in the three months ended in February as the anime production group’s opening of a retail store and distribution channel in China led to an ¥813 million (US$5.1 million) jump in merchandise sales. (Otaku Lab)

Gaming studio Cygames will sponsor the Kentucky Derby thoroughbred horse race in Louisville, Ky. for the second year in a row as the company’s Umamusume: Pretty Derby mobile game continues to make waves in North America. (Press release)

The Cool Japan Fund is partnering with financial services giant SBI Holdings to form a ¥12.5 billion (US$78.5 million) venture capital fund and invest in startups specializing in anime, manga, music, video games, and other entertainment media. (The Nikkei)

Sony Group and Honda Motor have abandoned the joint development of an electric vehicle that two years ago was announced to feature an integration with Crunchyroll’s anime streaming library. (Reuters)

Japanese voice actors are helping lead private sector efforts to prevent unauthorized use of voices actors by artificial intelligence technologies by certifying original voices of actors as anime’s growth increases their popularity. (Kyodo News via The Mainichi)

Portland, Ore.-based Fakku, the largest English-language publisher of pornographic manga, faces increasing scrutiny from payment processors over content that may be deemed thematically controversial, pushing it to explore alternative payment methods like cryptocurrency. (Fakku! News)

Media Do CEO bets on print manga and books overseas

“Translation is important, but ultimately, the sole deciding factor is whether it can be distributed in print.”

— Yasushi Fujita, Media Do president and chief executive officer

Context: Speaking last week at Media Do’s earnings results presentation for the fiscal year that ended in February, Fujita argues that overseas expansion efforts by Japan’s publishing industry are dependent on its ability to leverage print books, which have high market share and higher unit prices in the global book market, entirely opposite from the domestic market where e-books have been the primary growth category.

Rewind: Media Do, which built its business as an e-book distributor, last month completed acquisition of Los Angeles-based manga and light novel publisher Seven Seas Entertainment, which derives 83 percent of its sales from print books.

• The move drew significant attention in Japan, and over 400 people attended a briefing last month where Fujita and Seven Seas chief executive officer Jason DeAngelis answered questions from institutional investors and industry analysts.

By the numbers: Due to historically weak currency exchange levels for the yen, the average price of a single print manga volume in the United States is now more than three times its price in Japan and about two times for digital manga.

• Book pricing practices also differ between the two markets, with print and digital manga being sold at the same price point in Japan, whereas print manga are listed nearly twice the price of digital manga in the United States.

What they’re saying: “As the [U.S.] market matures, product formats are diversifying, with a broader range of book specifications and price points,” Media Do told investors and analysts.

• “While US$13 mass-market paperbacks were previously the mainstay, the market is now ready to maximize content value,” it added. “For instance, US$60 deluxe editions are being released as collector’s items, tailored to the specific content and the passion of the fans.”

• “This culture of accepting high-priced products for collectors is seen not only in the U.S. but also in Canada and Europe. Therefore, we believe that further market expansion and improved profitability will continue,” the company concluded.

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In case you missed it: Demon Slayer: Infinity Castle’s first anime film ended its run in Japanese cinemas, finishing in second place in all-time domestic box office rankings with ¥40.1 billion (US$252 million) in revenue, behind Demon Slayer: Mugen Train.

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Permanent work arrangements rising among animators

Employment at Japan’s anime production studios is shifting away from freelance and contract work and toward full-time salaried roles, according to newly published survey data from the Japan Animation Creators Association, a labor advocacy group.

Why it matters: JAniCA’s survey results are reversing an often-repeated narrative that the anime industry relies mostly on freelance animators as anime studios try to secure reliable talent during the anime industry’s persistent labor crunch.

• The most recent survey, which was conducted at the end of last year and details working conditions in 2024, had the highest level of participation in a decade.

By the numbers: One in two survey respondents worked in anime in non-permanent employment arrangements in 2024 (defined as contract workers, freelancers, or self-employed subcontractors), down from three in four in 2013.

• About 47 percent of survey respondents had salaried roles in 2024, up from just 17 percent in the 2013 survey results.

• Even among non-permanent workers, two out of three respondents report having a contract that partially or fully binds them to working with a specific employer in exchange for a retainer fee.

Zoom in: Increased availability in permanent work arrangements with standard hours has led to significant improvements in animator working conditions in the last decade.

• Average working period per month among respondents has fallen to about 190 hours (44 hours per week) in 2024 from 262 hours (60 hours per week) in 2013.

• Median annual earnings stood at ¥4 million (US$25,000), down five percent from 2021—likely attributable to a decrease in the average years of experience among respondents—but still significantly higher than ¥3 million (US$19,000) in 2013.

Reality check: Animators still encounter high levels of stress at work despite better working hours and earnings, with 57 percent of respondents saying that work stress has affected their personal lives.

• Just below half of survey respondents felt a sense of security in their current job, and just 38 percent would recommend their current work environment to friends and colleagues.

Consumption tax reform impact on anime labor limited

Two years after Japan’s new consumption tax reporting requirements came into effect, the changes haven’t impacted the anime labor market as broadly as activists originally feared, according to a Japan Animation Creators Association survey done last year.

Why it matters: Activists who fought the so-called invoice system’s implementation feared that as many as 30 percent of anime workers could go out of business from the tax increase and additional administrative burden.

• The new rules will phase out by 2031 a consumption tax exemption for businesses with annual sales of less than ¥10 million (US$70,000), including freelancers and self-employed workers, that has been in effect since 2004.

Where things stand: In a survey of nearly 900 anime production workers, just eight percent of respondents indicated that they have registered as invoice issuers to report consumption taxes.

• The findings suggest that, for now, anime production studios are more likely to assume the tax burden of its freelance and self-employed workers and maintain the status quo amid struggles to recruit and retain skilled talent.

• As previously reported by Animenomics, a 2024 survey by the Teikoku Databank credit reporting agency found that most anime studios still employed freelance workers a year after the new rules came into effect.

• With anime studios increasingly hiring workers in permanent work arrangements, there could also be fewer freelance animators that would need to register under the invoice system in the future.

Yes, but: It’s also clear that among the workers who have registered as invoice issues, three in four have seen increased administrative work such as hiring accountants and purchasing and using accounting software.

What we’re watching: The next transition starts this October, when the amount of consumption tax that can be exempted falls from 80 percent to 70 percent, increasing the burden on businesses.

Clippings: Toho reports record revenue and net profit

Toho reported record sales and net profit for the fiscal year that ended in February, driven by the box office successes of the Demon Slayer: Infinity Castle film trilogy’s first installation and live-action blockbuster Kokuho. (The Yomiuri Shimbun)

Blockchain startup Gaudiy, which owns the anime and manga community platform MyAnimeList, has received investment from Toei Animation and film distributors Toho and Shochiku. (Press release)

Los Angeles-based Tokyopop is seeking to raise up to US$1.2 million through sale of public stock as the manga publisher aims to more than triple its annual revenue to US$50 million by 2030. (Anime News Network)

Dai Nippon Printing is launching simultaneous anime and manga merchandise sales events in its retail stores in Tokyo and San Francisco to strengthen the distribution of official merchandise in the United States. (Press release)

Crunchyroll Manga will launch service in India within 2026, says Crunchyroll India marketing director Akshat Sahu, as the company seeks to promote legal means to read manga in the country. (Courrier)

Hokkaido’s New Chitose Airport is seeking to attract tenants specializing in anime and game merchandise to fill 20 vacant retail spaces in a concourse that connects the airport’s domestic and international terminals. (The Nikkei)

Netflix is sponsoring an “anime peace studies” course at Tokyo’s Keio University that will discuss anime’s soft power effects in Asia and Latin America and how the media affects international exchanges with Japan. (ITmedia News)

Broadcasters prioritize anime shows in 11:00 pm slots

“I believe it’s important to take our programming a step or two further than other networks, such as creating broadcast slots that air anime closer to prime time [7:00 p.m. to 11:00 p.m.], to demonstrate to the original creators and publishers that TV Tokyo as a company is fully committed to anime productions.”

— Hiroshi Yoshitsugu, TV Tokyo president and chief executive officer

Context: Yoshitsugu, speaking to Japanese media during a regularly scheduled press conference earlier this month, growing competition for original intellectual properties is pushing broadcasters to open up earlier time slots in their airing schedules to more anime titles.

• As previously reported by Animenomics, TV Tokyo had aired the highly successful Spy × Family in an 11:00 p.m. time slot during its 2022 debut, and more networks have been moving up anime broadcasts to that time slot in recent years.

Bandai Namco Ent. launches ‘The Idolmaster’ in English

Bandai Namco Entertainment has opened an English-language social media channel for the idol production video game and anime franchise The Idolmaster ahead of its voice actors’ performances at the Anime Central fan convention in Chicago in May.

Why it matters: The Idolmaster generates more than ¥70 billion (US$440 million) in revenue annually, spanning games, anime, music, live events, and merchandise, but the IP’s presence has largely remained limited to Japan and certain East Asian markets until now.

• The last large-scale The Idolmaster performance in North America was in 2018 on the sidelines of Anime Expo in Los Angeles.

What’s happening: As The Idolmaster celebrated its 20th anniversary last year, Bandai Namco showed interest in growing the franchise’s footprint both at home and abroad.

• “We will continue to value existing works while creating more and more new games. At the same time, we will expand various businesses to share the appeal of The Idolmaster series not only in Japan but in various regions around the world,” series head coordinator Koji Hatano said in the company’s annual report last year.

• Last month, Bandai Namco Entertainment printed an advertisement in the Nikkei, Japan’s largest financial newspaper, seeking private sector and local government partners interested in licensing The Idolmaster characters.

Zoom out: Increased licensing opportunities for The Idolmaster franchise is part of Bandai Namco’s plan to invest in the growth of its IPs through the fiscal year ending in March 2028.

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In case you missed it: France, one of manga’s largest export markets, has signed an agreement with Japan to cooperate on efforts to combat manga and webtoon piracy.

• The French Publishers Association, France’s trade association of book publishers, also announced Japan as the featured guest country for the Paris Book Festival in 2028, in cooperation with the Japan Book Publishers Association.

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AnimeJapan sets new records, looks forward to Osaka

Attendance at last week’s annual AnimeJapan trade exhibition in Tokyo was 2 percent larger than last year’s edition, reaching a new record of 156,000, as anime viewership continues to grow worldwide.

Why it matters: AnimeJapan’s timing just before the start of Japan’s fiscal calendar in April makes it the perfect event for producers to announce and promote new titles for the year ahead.

• A total of 67 domestic and foreign firms ran booths over the two business days, exceeding the pre-pandemic high, and the number of public day exhibitors also reached a new high.

Zoom in: Anime production giants like Aniplex, Bandai Namco, Kadokawa, and Toho turned their spaces into Instagrammable experiential pavilions, which have grown in popularity among public day attendees in recent years.

• Sony unveiled its internally developed anime production software AnimeCanvas to the public, showcasing new advancements in digital anime production that the company hopes will be adopted by the broader industry.

• Amazon Prime was notably absent from the roster of global streaming services that exhibited on the public days, opting for a joint presentation with Kodansha to promote the upcoming The Ghost in the Shell series to business attendees.

• Aiming to increase public understanding on the business of anime production, organizers also set up a gallery that highlights the roles of individual producers and their work in shaping an anime’s success.

• Anime’s growing influence also attracts companies with only loose ties to anime, such as Ultraman series rightsholder Tsuburaya Fields promoting the franchise’s 60th anniversary this year with a large pavilion.

Yes, but: Osaka will host AnimeJapan for its 2027 and 2028 editions, and it’s unclear whether turnout for the next two years will match attendance in Tokyo.

• AnimeJapan’s new site, Intex Osaka, is Japan’s third largest exhibition venue and has 750,000 square feet (70,000 square meters) of exhibition space, slightly more than the 650,000 square feet (60,000 square meters) used at Tokyo Big Sight this year.

Between the lines: Organizers told Animenomics that a decision on whether business events of AnimeJapan will also move to Osaka is still pending.

• Most of Japan’s anime companies are based in the Tokyo area, and transporting a high number of personnel across the country for the event would be costly.

METI urges risk-taking in overseas anime market push

Japan’s Ministry of Economy, Trade, and Industry has set an official target for anime’s overseas market to grow to ¥6 trillion (US$38 billion) by 2033, nearly triple the level of 2024, the most recent year for which data is available.

Why it matters: It’s the first time that the Japanese government has set a sector-by-sector overseas market target for the country’s entertainment sector, which as a whole has a ¥20 trillion (US$127 billion) target.

By the numbers: For the anime industry to reach its target, the overseas market must grow almost ¥4 trillion (US$25 billion) in the ten years from 2024 to 2033.

• To illustrate the enormous task at hand, the overseas anime market grew about ¥1.8 trillion (US$11 billion) over the previous ten years, so average growth rate of the next decade must double.

The intrigue: METI’s target hinges on two key strategies: increasing the production of blockbuster anime titles and higher compensation for producers with a track record of profitable anime productions.

• In order to encourage risk-taking, METI updated its subsidy evaluation criteria to focus on quantitative figures such as production cost, the number of countries in an international release, and the number of languages targeted for localization.

• Anime subsidies will be reserved for projects with a minimum production cost of ¥600 million (US$3.8 million), twice the production cost of an average 12-episode anime series today.

• Subsidy amounts will be linked to the average sales of the applicant’s past anime projects with a ceiling set at ¥1.5 billion (US$9.5 million) per project.

What we’re watching: METI wants private investment in anime to grow to ¥3.3 billion (US$21 million) by 2033, up from an estimated ¥1.2 trillion (US$7.6 million) in 2024.

• As previously reported by Animenomics, the ministry is looking to identify anime films that would be suitable candidates for debt financing, a funding model used by many other entertainment exporting countries.

• At the same time, the government will draft guidelines and methodologies for the introduction of completion guarantees to protect anime creators from predatory lenders.

• METI has designated MUFG Bank as the lead coordinator for the development of this new financing framework, with plans to start issuing loans as early as 2027, the Nikkei financial newspaper reports.

What’s next: METI’s entertainment and creative industry study group will now shift its focus to developing concrete plans for training new anime creators and improving the working environment at anime studios for implementation in 2027 onward.

Clippings: Activist investor buys up Kadokawa shares

Hedge fund manager Oasis Management has become the largest sole shareholder of Kadokawa, displacing Sony Group, which has been the publishing giant’s principal shareholder since its 2024 investment. (Animation Business Journal)

• Oasis is known as an activist investor and hold shares in Japanese companies such as cosmetics manufacturer Kao, electronics conglomerate Toshiba, and stationery manufacturer Kokuyo and previously pushed Nintendo to enter mobile gaming.

• Disclosures submitted to Japan’s Financial Services Agency show that Hong Kong-based Oasis spent more than ¥40 billion (US$250 million) to triple its Kadokawa shareholding last month.

Japan’s ‘oshikatsu’ market has surged to ¥3.8 trillion (US$24 billion), with inflation-proof spending by older consumers above 40 years old driving the market, according to a survey by the Nomura Research Institute think tank. (The Nikkei)

Aniplex and Crunchyroll’s anime planning and production joint venture Hayate has acquired anime production studio Lay-duce, best known for animating Aniplex titles such as Tomo-chan Is a Girl! and Magi: Adventure of Sinbad. (Press release)

Tokyo’s twice yearly Comic Market will become a three-day event in December, the first time in seven years that it will be held for more than two days, due to renovations at Tokyo Big Sight impacting the venue’s daily capacity. (Kai-You)

Naver-owned Webtoon Entertainment will allow independent webcomic creators to opt in to a new artificial intelligence feature that can translate their works into seven languages. (The Verge)

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When Bato.to, the world’s largest manga piracy site, finally went dark, the reaction from fans was telling. On Facebook, the comments told a familiar story. “Can anyone pm me for the new bato website name?” one user begged. Another pleaded, “Omg can someone tell me the new name? I discovered it a year ago and there are still so many manga I want to read, please?” The desperation in those requests exposed an uncomfortable truth.

One click is where all it takes. Fueled by faster translations and instant access, illicit manga platforms have become the default choice for fans unwilling to play by the industry’s slow rules.

The damage has already been done. In 2025, online content piracy cost Japan’s entertainment industry a staggering ¥5.7 trillion (US$36 billion) in lost revenue, according to the Ministry of Economy, Trade, and Industry. The figure, based on a survey across six major markets—Vietnam, France, Brazil, Japan, the United States, and China—confirms what creators have long feared. The black market is bleeding the industry dry.

Shoichiro Mizutani, founder of digital manga platform DouDouJin, argues that piracy is less a question of price and more a crisis of access. The problem, he suggests, runs deeper than cost, with availability emerging as the defining barrier across multiple markets.

“Official translations are delayed. Key titles are unavailable in entire regions. Payment methods exclude students and young readers. The single chapter sales model clashes with local habits,” Mizutani told Animenomics. “Meanwhile, pirate sites are faster, and they offer community through lively comment sections where readers connect. The legal market simply cannot compete.”

He added that manga piracy users actually represent a massive demographic in some markets, highlighting an opportunity where a well-executed subscription service could successfully convert and retain those elusive fans.

“The one exception is MANGA Plus [by Shueisha], whose subscription style model delivers a level of satisfaction far better aligned with what overseas users actually want,” he noted.

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A surging ‘oshikatsu’ economy has Japanese consumers spending hundreds of billions of yen on products featuring their favorite anime characters, helping push domestic anime merchandise sales up by 50 percent since 2018, according to data compiled by the Association of Japanese Animations, an anime industry trade group.

Merchandising today accounts for up to half of the entire domestic anime market, but many sellers and makers of anime merchandise don’t think that trend can continue for long.

“In recent years, market contraction driven by Japan’s declining population has become an increasingly material challenge,” Masahiro Arita, general manager of digital promotion at Tokyo-based retailer Parco, told Animenomics.

Parco operates a chain of department stores and shopping malls in Japan, often collaborating with anime licensors and creators to host exhibits featuring art from their works. The company also sells limited-edition merchandise licensed from rightsholders in pop-up stores and online.

When the COVID-19 pandemic forced Parco to close stores or reduce operating hours, the company decided to reevaluate its e-commerce business. It launched a new online store in 2022 that would allow them to sell products outside the country.

“Japan remains our primary base; however, we believe the appeal and cultural value generated by Parco should be accessible to audiences worldwide,” Arita said.

For help facilitating cross-border sales, Parco turned to e-commerce service provider Beenos, which had been listed on the Tokyo Stock Exchange until last year, when it was acquired by Internet giant LINE Yahoo.

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Programming note: This weekly news briefing is going on a break and will return on April 8. I will be publishing a couple of special reports to fill the gap until that date.

• What’s happening: I am traveling to Tokyo to attend both IMART Global Business Matching and AnimeJapan. If you’re also attending and would like to meet, do reach out.

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Original anime films lag behind franchises in box office

Recent successes among franchise anime films in the box office have raised audience expectations for production quality and viewing experience across the board, putting pressure on budget-strapped original anime film productions.

Why it matters: Growing polarization in Japan’s anime film market risks crowding out original anime films that serve as incubators of new talent, a panel of anime creators, producers, and critics argued at this year’s Tokyo Anime Award Festival.

What’s happening: Original anime films have rarely earned more than ¥3 billion (US$19 million) domestically in recent years, while franchise films like Demon Slayer can reach ten times that amount.

• Streaming video services are changing viewing habits—audiences can quickly watch shows in advance before switching to sequels that are screening in cinemas.

• For works with a pre-established following, viewing a film in cinemas becomes a demonstration of fan devotion, such as to a favorite character, leading to repeat attendance and increased engagement.

Friction point: High-quality productions like Demon Slayer are also leading audiences to expect the same quality from original anime films, raising production costs and risk.

• Original anime films can also four to five years to produce, much longer than the time it takes to bring a franchise film to market.

Zoom out: Even among television shows, books, and other media, hit titles generate massive revenue, while others barely register, TMS Entertainment president Tadashi Takezaki highlighted during the panel.

• Earlier this month, the original anime film A New Dawn from animator Yoshitoshi Shinomiya and co-produced by France’s Miyu Productions earned just ¥17 million (US$107,000) in its opening weekend in Japan, overshadowed by wider releases from established titles like Doraemon and That Time I Got Reincarnated as a Slime.

Kadokawa seeks to move manga translations in-house

Publishing giant Kadokawa is moving to centralize translation of its books and manga before they are licensed out to foreign publishers in an effort to speed up the process of bringing new titles overseas.

Why it matters: In-house translation provides foreign licensees with works that are nearly ready for publication, shortening the time gap between a Japanese release and a foreign release when pirated copies could appear.

• “We have now begun initiatives to translate works internally first—specifically those titles we wish to introduce to overseas markets,” Kadokawa chief global officer Takashi Sensui told The Bunka News trade newspaper.

How it happened: Since 2022, Kadokawa has been operating a Content Localization and Activation Center that produces English, Chinese, and other translations in-house.

• Works translated by CLAC are released by local publishing partners outside Japan and also distributed digitally on Kadokawa’s own BookWalker platform.

• A 2024 report by Japan’s Ministry of Economy, Trade, and Industry suggested that CLAC was also experimenting with artificial intelligence in the translation process.

• That same year, Kadokawa and three other manga publishers collectively invested ¥780 million (US$4.9 million) in Mantra, a Japanese startup that uses AI to deliver manga translations in 18 languages.

The bigger picture: Kadokawa’s current five-year roadmap calls for a target of ¥70 billion (US$440 million) in consolidated sales overseas by 2028, about 20 percent of total revenue.

• Kadokawa operates 21 subsidiaries in nearly a dozen territories, and in-house translation allows the publisher to quickly circulate works across all of its overseas units.

Clippings: Webtoon paid creators US$2.8b over 5 years

Naver-owned Webtoon Entertainment paid webcomic and webnovel creators on its various digital platforms a cumulative ₩4.15 trillion (US$2.8 billion) in revenue share between 2021 and 2025. (The Korea Times)

• Why it matters: It’s the first time Webtoon has disclosed creator revenue share figures since its 2023 prospectus for listing on the Nasdaq stock exchange, when it said that it had paid creators a cumulative US$1.8 billion from 2017 to 2022.

• Webtoon president Yongsoo Kim said the company will invest at least ₩70 billion (US$47 million) this year in creator support initiatives and content discovery.

Amazon MGM Studios hired Buddy Marini, a longtime entertainment executive who was general manager of Warner Bros. Discovery Japan until recently, to oversee film, television, and anime originals production in Japan. (Screen Daily)

• Between the lines: Marini’s departure from Warner Bros. Discovery Japan leaves uncertainty at the prolific anime producer as its Hollywood parent seeks a sale to Paramount Skydance.

Mamoru Hosoda’s Scarlet made a disappointing box office debut in anime-loving France last week, drawing just 1,300 admissions across more than 260 screenings on opening day. (Boxoffice Pro)

• Sony Pictures, which is distributing Scarlet worldwide, reportedly declined to fly Hosoda for interviews with French media, AnimeLand magazine editor-in-chief Bruno de la Cruz wrote on X.

E-commerce layoffs at Crunchyroll suggest the company is pivoting its online retail business—acquired from Iowa-based Right Stuf in 2022—away from a broad catalog model and toward subscriber-exclusive merchandise. (The Accidental Otaku)

Anime film revival screenings are increasing in frequency in Japan and around the world, fueled by anniversaries and production of remasters, as audiences increasingly prioritize known titles when going to cinemas. (The Japan Times)

London-based 8 Lions Entertainment acquired global digital distribution rights for TV Asahi’s Ninja Hattori, one of Japan’s longest anime series by episode count, and will start streaming it on YouTube in multiple languages. (Variety)

Sales of animation cels discarded by anime studios are soaring at secondhand anime merchandise stores as collectors and resellers outside Japan seek out materials from iconic productions. (Nikkei Asia)

Japan deepens Saudi manga artist training partnerships

A comic from Saudi Arabia was named a runner-up in the 19th Japan International Manga Awards in December, the highest placement of a work by a Saudi artist in the contest that’s sponsored by Japan’s Ministry of Foreign Affairs.

Why it matters: Japan and Saudi Arabia continue to deepen a collaboration to train young Saudi artists in manga and anime production, producing a pipeline of foreign talent for the manga and anime industries.

Catch up quick: At manga publisher Kadokawa, more than 200 Saudi artists to date have been trained in manga production in partnership with Manga Productions and the Saudi government, former Kadokawa Content Academy head Tetsuya Koga said during a panel discussion at this year’s Tokyo Anime Award Festival.

• Female creators make up about 60 percent of trainees, often favoring emotional storytelling and genres like horror.

• Story development and composition training occurred both in Riyadh and Tokyo, including internships at Japanese publishers and studios.

Yes, but: While some Kadokawa Content Academy graduates have made their debuts as manga artists in Japan, not everyone will be able to pursue a career in manga.

• Koga, who now works at Tokyo-based IP production studio Hike, says his new company plans to go beyond manga and explore collaborating on animation and 2.5D musical projects in Saudi Arabia.

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In case you missed it: Today marks 15 years since the earthquake and tsunamis that struck Japan’s Tohoku region. To commemorate this anniversary, I have unlocked the paywall on a piece I wrote two years ago reflecting on the role anime studios play in disaster recovery.

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Anime shift from home video to streaming accelerates

Japan’s domestic anime home video market shrunk by a stunning 31 percent in 2025 to ¥18.7 billion (US$118 million), according to the latest annual survey of home video sales and rental data conducted by the Japan Video Software Association.

Why it matters: Japan’s domestic anime home video revenue is now less than one-fifth of the size at the market’s peak in 2005, before the DVD bubble burst, as anime consumption shifts to streaming video.

By the numbers: Anime home video sales fell by 34 percent to ¥16.3 billion (US$103 million), the fastest rate of decline going back at least 25 years, with the exception of a 2022 post-pandemic market correction.

• Unit sales fell more than 36 percent to 2.3 million units, about half of the number of Blu-ray and DVD discs sold in 2020.

• Revenue from anime home video rentals, on the other hand, posted its first gain in nearly 20 years, rising 7.8 percent to ¥2.35 billion (US$14.8 million).

Zoom in: Among members of the JVA, anime revenue earned from streaming video on-demand services is up 48 percent from 2024 and is now 2.4 times the figure from 2021.

• When anime Blu-ray and DVD discs are still being produced, manufacturers are packing in more episodes per release, pushing up the average sales price per unit sold by 35 percent over the last decade.

Between the lines: Due to the disappearing market for anime for children below ten years old, since last year the JVA has reorganized its animation home video categories to no longer be based on target age demographic.

• Starting from the 2025 edition, sales and rental data categorize works by original medium, such as television, direct-to-video, or film.

Asahi Broadcasting anchors 3-year growth on anime IPs

Osaka-based commercial broadcaster Asahi Broadcasting Group will invest ¥8 billion (US$51 million) in anime production over the next three years, aiming to join at least 15 anime production committees, in a bid to grow its content rights business.

Why it matters: Asahi Broadcasting is Kansai region’s largest television network, but, like its peers in Tokyo, it expects revenue from broadcasting to decrease, and future growth will have to come from rights sales of titles in its media catalog.

Catch up quick: In order to chase anime growth outside Japan, the broadcaster has invested in international co-productions like Death Stranding: Mosquito, based on the franchise by renowned video game creator Hideo Kojima.

• Asahi Broadcasting partnered with Hollywood production studio Line Mileage and is animating Death Stranding: Mosquito at an in-house studio formed in 2020.

• It’s also partnering with acclaimed anime studio Kyoto Animation, also based in Kansai, on adaptations of the manga Sparks of Tomorrow and RuriDragon.

Yes, but: As a regional company, Asahi Broadcasting faces stiff competition for top-tier content from Tokyo’s commercial broadcasters, which have national reach.

• Revenue forecast for sales of all types of content, including anime, for the fiscal year ending in March 2026 is currently about 10 percent lower than the original goal set in 2021.

What we’re watching: Asahi Broadcasting is showing interest in acquiring companies outside Japan to grow its overseas anime business.

• It has already set up office in Shanghai to organize events and boost merchandise sales in China, and it plans to enter into anime merchandising in North America.

Clippings: Kadokawa consolidates anime studio offices

Kadokawa is consolidating five anime studios and back-office support departments, totaling 400 employees, into an office space in Ikebukuro’s Sunshine City building this fall as it looks to strengthen studio recruitment and talent development. (Press release)

• The move comes one year after Kadokawa named a dedicated executive to lead the company’s anime studio business.

• Operational consolidation doesn’t involve Doga Kobo and Kinema Citrus, which remain standalone, independent studios.

Berserk manga’s English-language volumes published by Portland, Ore.-based Dark Horse Comics have now sold more than 10 million copies, accounting for one in seven Berserk manga volumes in circulation globally. (Hakusensha)

• Zoom in: As previously reported by Animenomics, Dark Horse’s first hardcover deluxe edition of Berserk was the top-selling manga in the United States in 2024, Circana BookScan sales data show, despite having a sticker price of US$49.99.

Plush toy maker SK Japan saw its market capitalization double to ¥15 billion (US$95 million) over the course of last year as earnings rose with growing demand for plush character merchandise at claw machine arcades. (The Nikkei)

Webtoon Entertainment elevated strategy chief Yongsoo Kim, whom Animenomics interviewed last year, to president overseeing global innovation and growth initiatives at the South Korean-owned digital comics company. (Variety)

Saudi Arabia’s Manga Productions and Manga Arabia were named joint grand prize winners in the Cool Japan Public–Private Partnership Platform’s annual awards gala for their efforts to distribute anime and manga in the Middle East. (Gamebiz)

British auction house Christie’s will hold its first anime and manga auction in New York next week, pairing collectibles from the media with historical and contemporary Japanese art pieces. (Observer)

Kadokawa looks to writers abroad to grow light novels

“I don’t feel like there’s a shortage of Japanese authors in light novels. If anything, their numbers are increasing. On the other hand, the readership is declining. Looking back at the history of light novels, just like how the boom of anime based on light novel was followed by hit adaptations of web novels, I believe the market needs a new spark.”

— Satoshi Arima, MF Books editor-in-chief, Kadokawa light novels and new literature department

Context: Arima, who recently led a global contest for aspiring light novel writers at Kadokawa, told Otaku Lab in an interview that readers in their 50s and 60s are the most enthusiastic buyers of light novels in Japan. This demographic drove the light novel sales boom of the last decade, prompting publishers to commission manga adaptations and eventually anime adaptations when titles sell well.

• Because the contest was limited to works written in English, it attracted writers from outside Japan, many in their 30s, which Arima hopes will spur on writers at home to innovate and bring the domestic light novel market back to growth.

Popular folklore anime revived for new young viewers

Animax Broadcast Japan will begin rebroadcasting Traditional Japanese Folktales on the Kids Station satellite television network later this month, more than 30 years after the beloved anime program ended its broadcast.

Why it matters: Traditional Japanese Folktales, which first aired in 1975, is one of the longest-running anime programs in Japan and has aired in several European countries in the past.

• At its peak in the 1990s, domestic viewership reached 21 percent of households in the Tokyo region and 18 percent of Kansai region households.

Where things stand: Rightsholder Ai Kikaku Center plans to revitalize the property and reintroduce it to a new generation of young viewers for its 50th anniversary.

• The anime’s film footage and original drawings were retrieved from warehouses, where they laid dormant for decades, and all of the nearly 1,500 episodes in the series are being digitized.

• The firm is now seeking corporate partners that can help it create new products and services based on the anime.

The intrigue: Ai Kikaku Center is using AI technology to create new foreign language dubs while retaining the voices of narrators Etsuko Ichihara and Fujio Tokita, who died in 2019 and 2018, respectively.

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In case you missed it: Aniplex has indicated that screenings of the first Demon Slayer: Infinity Castle film in Japan could end as soon as early April as the company plans the final batch of audience bonuses for moviegoers.

• The film is still about ¥1 billion (US$6.7 million) short of overtaking Demon Slayer: Mugen Train as the highest-grossing film in the domestic box office, according to box office sales data provider Kogyo Tsushinsha.

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Anime rightsholders reduce reliance on film distributors

Anime production companies are accelerating efforts to form their own domestic film distribution systems, shifting away from using legacy theatrical distributors to build in-house expertise and retain a bigger share of box office earnings.

Why it matters: Anime’s fourteen highest-grossing films in 2025 earned a cumulative ¥90.1 billion (US$573 million) in the Japanese box office, but at least half of that was paid by producers to theatrical distributors like Toho, Shochiku, and Toei.

• Producers rely on distributors because they have established relationships with cinemas and exhibition companies that can screen the films.

Driving the story: This week, Sony-owned anime production planning firm Aniplex and publishing giant Kadokawa announced the formation of a joint venture company for anime film distribution and promotion, named Animec.

• That news was followed the next day by Bandai Namco Filmworks announcing the establishment of a film distribution division to expand in-house distribution to more Bandai Namco anime properties.

Zoom in: Bandai Namco Filmworks has seen early success in direct distribution efforts with Milky Subway: The Galactic Limited Express, a 46-minute short film that opened in fourth place in weekend box office rankings last month and has earned north of ¥400 million (US$2.5 million) domestically.

• Bandai Namco Filmworks also intends to use its direct distribution expertise, built through years of experience with co-distributing its Mobile Suit Gundam films, to redistribute older films in its ownership.

• For Kadokawa, a joint venture with Aniplex fulfills a commitment that Sony made with the publisher for “joint promotion of further media mix of both companies’ IP” that was made when Sony acquired a 10 percent stake in 2024.

Media Do pivots with U.S. manga publisher acquisition

Japanese e-book distribution giant Media Do is acquiring Seven Seas Entertainment, up to now the largest publisher of manga and light novels in North America that isn’t affiliated with a Japanese publishing house, for US$80 million.

Why it matters: The deal marks a significant pivot for Media Do, Japan’s largest e-books wholesaler, because the Los Angeles-based publisher draws most of its sales from printed books.

How it happened: Media Do is struggling amid a rapid deceleration in digital manga sales, which make up 90 percent of all e-book sales in Japan.

• In 2024, Media Do abandoned a five-year plan after failing to meet interim sales and profit targets, selling off units like web novel platform Everystar and anime and manga fan community MyAnimeList.

• A new five-year plan the company launched last April shifted its focus to overseas markets, where print sales still make up 90 percent of the publishing market.

Between the lines: Media Do “will not use AI in the translation operations of Seven Seas”, it said in a statement but plans to integrate Seven Seas production know-how into Media Do Translation System (MDTS), an AI-powered workflow it’s developing for digital translation of Japanese literature.

• Media Do sees text-based publications, which is translated into other languages at one-fourth the rate of manga, as a future area of growth for its new overseas business.

• Only 40 percent of text-based works in Japan are published as e-books when they are first released, and MDTS is intended to push domestic publishers to bring more non-manga e-books to the market for Media Do to distribute.

By the numbers: Seven Seas reported US$50.4 million in net sales in 2024, about 12 percent off its previous year peak, and it expects results to remain stable in 2025.

• Operating margin, however, has fallen from 23 percent in 2022 to 13 percent in 2024 as production costs increased after the COVID-19 pandemic.

• The Nikkei financial newspaper reports that Media Do wants to double Seven Seas’s annual publishing output, which will require diligent cost controls.

What we’re watching: How the acquisition by a Japanese company might affect the Seven Seas pipeline of Chinese literature featuring same-sex relationships.

• Since first licensing danmei novels featuring same-sex male relationships in 2021, Seven Seas has become North America’s largest publisher of the genre.

• Last year, the company also began publishing baihe novels featuring same-sex female relationships.

Clippings: Twin Engine adds anime studio Nut to group

Anime studio Nut, founded in 2017 and best known for animating light novel series The Saga of Tanya the Evil and manga series Blue Giant, has been acquired by anime production planning company Twin Engine. (Press release)

Japan’s capsule toy shipments rose 39 percent in 2025 to reach a total merchandise value of ¥196 billion (US$1.24 billion), driven by a domestic resurgence in classic IPs like Sanrio and Tamagotchi and demand for products from popular anime like Demon Slayer and Jujutsu Kaisen among foreign visitors. (Japan Capsule Toy Association)

Shogakukan is investigating its own MangaONE digital manga service after it found that editors rehired two manga creators for new works on separate occasions despite knowing that they had been convicted of sexual crimes. (Jiji Press)

Kyoto Animation’s Hideaki Hatta died last month at the age of 76 after leading the anime production studio for more than 40 years and becoming the public face of the company after it suffered a devastating arson attack in 2019. (The Yomiuri Shimbun)

Japan’s subscription video-on-demand revenue rose more than 14 percent in 2025 to nearly ¥602 billion (US$3.82 billion), thanks largely to subscription price increases at services like Netflix and Prime Video. (GEM Partners)

‘Jujutsu Kaisen’ game turns into success for CyberAgent

Jujutsu Kaisen: Phantom Parade, a turn-based role-playing game based on the popular anime series, has become the second most successful mobile game developed under the umbrella of CyberAgent, according to mobile analytics firm Sensor Tower.

Why it matters: As previously reported by Animenomics, CyberAgent has sought to replicate the success of the Umamusume: Pretty Derby mobile game, developed by its Cygames unit, as the company pivots from digital advertising to entertainment.

By the numbers: Jujutsu Kaisen: Phantom Parade accounted for about 17 percent of CyberAgent’s cumulative mobile game revenue from Japan in the two-year period since its launch in November 2023, according to Sensor Tower.

• Umamusume: Pretty Derby stayed ahead with 51 percent of cumulative mobile game revenue over the same period.

• While Japan only accounted for 32 percent of total downloads of Phantom Parade, players there made up 84 percent of total user spending on the game.

The intrigue: Phantom Parade’s average monthly active users in Japan over the two-year period surpassed that of miHoYo’s popular title Honkai: Star Rail, behind only Fate/Grand Order in the role-playing game category.

• Three out of four Japanese Phantom Parade players were male, and four out of five were ages 18–44.

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In case you missed it: Manga sales in the United States returned to growth in 2025 after two straight years of decline, with sales revenue up 4.6 percent and unit sales up 8.1 percent, trade publication ICv2 reports, citing Circana BookScan data.

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Domestic manga market shrinks for first time since 2017

Japan’s domestic manga sales fell in 2025 for the first time in eight years, according to publishing industry data compiled by the Research Institute for Publications, a unit of the All Japan Magazine and Book Publishers and Editors Association.

Why it matters: A quickening slowdown in digital manga sales in the second half of the year meant that the pace of digital growth can no longer reliably compensate for the tumbling print manga market.

By the numbers: The domestic manga market shrank by 1.7 percent to an estimated ¥693 billion (US$4.45 billion).

• Sales of print manga volumes fell by 14.4 percent, while manga magazines fell by 12.7 percent.

• As a result of digital manga’s 2.9 percent growth, its market share expanded to 76.1 percent of total sales, exceeding three-quarters of the manga market for the first time.

• With Japan’s broader publishing market also shrinking, print and digital manga’s combined share remained at 44.8 percent of total publishing sales.

Zoom in: Manga titles with popular anime adaptations like Medalist and The Fragrant Flower Blooms with Dignity, both from Kodansha, sold well in Japan last year.

• However, no title came close to reaching the sales levels of My Hero Academia, Jujutsu Kaisen, and Oshi no Ko, all of which ended publication in 2024.

• Sales of manga magazines took a hit as convenience stores continued to reduce shelf space for books and magazines.

Between the lines: Publishers aren’t necessarily releasing fewer manga despite the falling sales revenue.

• New manga volume releases actually jumped 6.5 percent year-over-year in 2025 to just over 16,000 new titles, the largest annual increase since 2008.

Go deeper: I write about how publishers are preparing for a future of declining manga sales on ICv2.

Netflix exclusive ‘Cosmic Princess Kaguya’ hits cinemas

Anime film Cosmic Princess Kaguya! landed in fifth place in Japan’s box office rankings over the four-day holiday weekend, shocking Japanese film industry observers after it earned ¥291 million (US$1.87 million) despite being released on Netflix a month ago.

Why it matters: The success of Cosmic Princess Kaguya! in the box office “overturns the conventional wisdom that streaming is the enemy of movie theaters”, writes entertainment industry expert Motohiko Tokuriki.

How it happened: Cosmic Princess Kaguya! opened on Friday for a one-week limited engagement in just 19 theaters throughout Japan.

• Rather than rely on Netflix’s marketing channels, production planning firm Twin Engine opened dedicated social media accounts to market the film online.

• The film benefited from favorable reviews following its original Netflix release and a strong following thanks to its ties to Vocaloid and virtual YouTuber communities.

• Over the weekend, anime industry journalist Yumiko Watanabe reported multiple sold-out screenings even in movie theaters outside of Tokyo.

For comparison, Cosmic Princess Kaguya! earned more during its opening weekend than Mamoru Hosoda’s latest film Scarlet did in its disappointing box office debut in 447 theaters in November.

The bigger picture: While another anime film exclusively released on Netflix, Bubble, was also later released in cinemas in 2022, it didn’t attain the same box office success of Cosmic Princess Kaguya!

• The theatrical approach has grown in recent years, Real Sound reports, with non-anime Netflix titles like Bullet Train Explosion and KPop Demon Hunters receiving cinema screenings in Japan after successful streaming releases.

Clippings: Kinokuniya scouts expansion stores in 2026

Kinokuniya Book Stores of America is scouting locations for two or three additional stores in the United States by the end of 2026. U.S. sales more than doubled last year compared to 2024, and manga remains the bestselling category. (Publishers Weekly)

Trading conglomerate Itochu is acquiring a 5 percent stake in Japanese secondhand retailer BookOff from Kodansha, Shueisha, and Shogakukan for an estimated ¥1 billion (US$6.5 million). (The Nikkei)

• Why it matters: As previously reported by Animenomics, trading conglomerates are making a push into anime and character merchandising, and an investment in BookOff could help increase overseas availability of secondhand anime products.

Publishing giant Kodansha reported an increase in large transactions with global streaming video services in the fiscal year ended in November 2025. New adaptations of its manga titles and merchandise licenses also increased. (The Bunka News)

Tokyo-based startup Anique raised ¥1.3 billion (US$8.4 million) in Series B funding to establish anime collaboration cafes and immersive anime exhibits in South Korea, the United States, and Europe, following a successful entry into Taiwan. (Press release)

‘Ita’ shoulder bags decorated with anime character merchandise and accessories are gaining popularity among young women in Singapore and Southeast Asia, driven by social media and usage at local anime conventions. (The Straits Times)

Jujutsu Kaisen’s popularity is driving up demand for exhibition catalogs at a folklore museum in Japan’s Iwate Prefecture. The catalogs, which describes local customs for warding off evil, a central theme of the manga, have had five reprints. (The Mainichi)

Digital manga market shifts toward non-paying readers

“It would be beneficial if the [digital manga] industry could establish some rules to curb excessive free content and sales promotions.”

— Mikio Amaya, e-book distributor Papyless founder and chairman

Context: Digital publishing pioneer Amaya, who in 1995 founded Japan’s first e-book distributor, said in a lecture before the Japan Electronic Publishing Association that the country’s e-book market, of which digital manga make up 90 percent of sales, is headed toward a future with fewer and fewer paying readers.

What he’s saying: “If customers become accustomed to free content, manga’s digital distribution market could end up like the music digital distribution market,” Amaya warns.

• “As free music increased, starting around 2009, song-by-song downloads declined. This left only the advertising model and subscriptions viable, leading to reduced income for record companies and composers,” he said, citing data from the Recording Industry Association of Japan.

Rural prefectures in Japan warm up to anime industry

Ibaraki Prefecture, located northwest of Tokyo, will set aside ¥60 million (US$380,000) in its 2026 fiscal year budget to attract anime production studios and train animators locally, The Asahi Shimbun reports.

Why it matters: The move follows in the footsteps of rural prefectures like Niigata Prefecture and Kochi Prefecture in their attempts to revitalize local economies by capitalizing on the growing anime market.

• Attention has also been growing on anime production in rural prefectures in recent years thanks to Demon Slayer, whose anime production studio, Ufotable, is located in Tokushima Prefecture to the west.

What’s happening: Kasama High School, a public high school in Ibaraki, last year renamed its computer graphics major into an animation major to help address the shortage in the animation labor pipeline.

• The government will subsidize the seven vocational schools in Ibaraki that teach anime production with ¥30 million (US$190,000) to cover the cost of materials.

• In addition to attracting anime studios from Tokyo, the government will also use a ¥5 million (US$32,000) fund to subsidize local startups.

What they’re saying: “We will support the development of educational and employment opportunities so that young people can build careers in the growing animation industry,” Ibaraki prefectural government’s Industrial Policy Division chief Ryoji Suzuki told the Ibaraki Shimbun newspaper.

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In case you missed it: A United States federal district court has ruled that identity information obtained through Digital Millennium Copyright Act subpoenas can’t be used to pursue copyright cases overseas, limiting a tactic used by anime and manga rightsholders in Japan for global anti‑piracy enforcement.

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TV Asahi sets goal to double anime production by 2030

TV Asahi plans to double its anime production capacity over the next four years, the commercial broadcaster best known for classic titles like Doraemon and Crayon Shin-chan announced in a blueprint that seeks to transform the company by March 2030.

Why it matters: TV Asahi’s four-year management plan aims to shift the company from the television broadcasting business to a business that focuses on IP creation.

The details: Fresh off the success of anime investments like Hell Teacher: Jigoku Sensei Nube and Medalist, TV Asahi plans to increase the number of anime projects in which it leads the production committee.

• By retaining a greater percentage of licensing royalties from successful anime titles as the lead producer, the broadcaster aims to increase profits in the anime business by 50 percent.

• It also plans to increase collaborations with Shin-Ei Animation, the subsidiary anime studio that makes Doraemon and Crayon Shin-chan, and Toei Animation, in which TV Asahi is a major shareholder.

• India will become a focal point for the IP business as TV Asahi seeks to capitalize on its recent successes with Crayon Shin-chan in the country.

Zoom out: The broadcaster says it remains committed to television despite new emphasis on the IP business, especially after it secured first place in annual viewer ratings for multiple time blocks last year.

• TV Asahi plans to increase the number of late-night television slots for anime, up from the current three slots.

• It’s also building a closer relationship with streaming video service Abema, a joint venture with TV Asahi shareholder CyberAgent, to increase viewership of anime and other late-night content on the service.

What we’re watching: TV Asahi is also looking to recruit creators for a creative studio that uses generative artificial intelligence to make anime, dramas, and commercials.

Anime creators slam ByteDance over AI video generator

Chinese technology firm ByteDance faces questions from Japan’s anime creators over new updates to its AI video generation model Seedance, which is able to create footage that closely reproduce character designs and visuals from existing anime titles.

Driving the story: The Nippon Anime & Film Culture Association, an advocacy group for anime creators, lodged its concerns with the Japanese unit of TikTok, also part of ByteDance, after user-generated videos featuring famous anime characters spread on social media websites.

• In 2024, NAFCA received a donation from TikTok Japan to support “sustainable development of the anime industry”, such as the launch of an Animator Skill Test and live workshops.

What they’re saying: “We are deeply concerned about the use of content without sufficient copyright clearance and the use of technology that undermines the sustainability of production sites,” a media statement from NAFCA reads.

• “We expect ByteDance and many other generative AI developers to respond sincerely and respect the rights of creators,” it continues.

The other side: NAFCA says ByteDance responded with assurances that it’s working to address the concerns of rightsholders and that the recent release is a beta release, not an official one.

The bigger picture: The controversy over Seedance comes just months after Silicon Valley’s OpenAI similarly drew scrutiny over its Sora video generation model, which also reproduced anime character designs and visuals.

• Japan’s government has instructed ByteDance to make revisions to Seedance’s model, and the company also faced threats of legal action from Hollywood studios.

Clippings: Licensing veteran named Aniplex president

Sony Music has appointed Shu Nishimoto as the new president of Aniplex, putting an international licensing veteran and one-time president of Aniplex of America at the helm of the anime production planning company. (Animation Business Journal)

• In 2024, Nishimoto said that Aniplex was working to expand the reach of its titles in the global south, in territories like Southeast Asia, India and South Africa.

TV Tokyo invested ¥500 million (US$3.25 million) in IP development startup Minto, which will help the broadcaster expand its digital content offerings in Thailand and Vietnam. (Press release)

Anime figurine maker Kotobukiya will distribute its products in Genda-operated amusements facilities in North America, Europe, and Asia as the two companies form an extensive business collaboration. (Press release)

ABC Animation established a subsidiary in Shanghai in an effort by the anime production planning company to increase merchandise sales and to organize more events in China, starting with a Violet Evergarden pop-up store. (Gamebiz)

Tokyo International Film Festival Content Market attendance rose 13 percent last year to more than 4,600 attendees as anime and manga companies increased their presence amid growing interest in adapting their properties. (Branc)

CG anime studio NIA Animation was acquired by light novel and manga publisher AlphaPolis, the second acquisition of an anime studio in less than one year as the publisher rapidly increases investments in anime production. (Otaku Lab)

Anime studio TMS Entertainment is absorbing subsidiary Telecom Animation Film after more than 50 years in operation, including as the studio that animated Hayao Miyazaki’s Lupin III: The Castle of Cagliostro. (Gamebiz)

Prime Video’s international content lineup for 2026 will include high-profile anime licenses like the Warner Bros. reboot of Fist of the North Star and anime studio Science SARU’s adaptation of The Ghost in the Shell. (Fortune India)

Anime reached 50 percent of Japan’s streaming video subscribers and accounted for 26 percent of viewing hours on premium streaming services last year, according to Singapore-based video research firm Media Partners Asia. (Deadline)

TO Books eyes post-listing expansion in North America

“In regions experiencing significant economic growth, we will seek local partner companies that understand our business. North America has a rapidly growing manga market, and more companies are launching digital manga platforms. We want to consider models for collaborating with such companies.”

— Takeichi Honda, TO Books president

Context: Honda showed optimism for a North American expansion of his light novel and manga publishing company following its listing on the Tokyo Stock Exchange last week, the Nikkei financial newspaper reports.

• He sees the continuing decline of Japan’s publishing industry revenues as a “temporary market shift”, remaining confident in the prospects of IP adaptations.

Yes, but: Honda admits that it will take time—at least three years—to see the impact of adaptations like anime, stage theater, and merchandise on the company’s financials.

• Of the anime productions based on TO Books titles today, only about one-third have a production committee led by the publisher, and new productions led by TO Books will take at least three years before they can be broadcast.

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In case you missed it: A recording of my talk with Mark Kennedy last week about the anime industry and how this newsletter operates behind the scenes is now available on Real Gaijin’s Substack website.

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Aniplex president Iwakami to be named Sony Music CEO

Sony’s leadership has appointed Aniplex president Atsuhiro Iwakami as the incoming president and chief executive officer of Sony Music Entertainment Japan, a sign of the anime production planning company’s growing influence in the Sony Music Group.

Why it matters: Iwakami’s appointment, which will be effective in April, marks the first time that an executive with a video production background will lead the Japanese music giant.

Catch up quick: More than half of Sony Music’s sales in Japan today come from non-music sources, including Aniplex, according to anime industry journalist Tadashi Sudo.

• Aniplex is also capping off a spectacular year in the box office, having produced both Demon Slayer: Infinity Castle, the highest-grossing anime film globally, and Kokuho, Japan’s highest-grossing live-action film.

• External revenue from Sony Music’s visual media and platform business, to which Aniplex belongs, is up 42.8 percent in the nine months ended December 2025 compared to the same period last year.

How it happened: Prior to his decadelong tenure as the head of Aniplex, Iwakami was involved in the production of successful anime titles like the Monogatari series, Puella Magi Madoka Magica, and Sword Art Online.

• Iwakami also produced Aniplex’s highly successful mobile game Fate/Grand Order and the blockbuster anime adaptation of Demon Slayer.

The bottom line: Iwakami’s appointment, Sudo says, allows Sony Music “to externally promote itself as a comprehensive entertainment company that goes beyond music and covers a wide range of areas, including anime, live-action films, characters, the Internet, and events”.

a16z leads AI anime character startup seed investment

San Francisco artificial intelligence startup Shizuku AI has raised US$15 million in seed investment from Silicon Valley venture capital giant Andreessen Horowitz and mobile technology company DeNA.

Why it matters: It’s the first investment in a Japanese technology firm by Andreessen Horowitz, Nikkei Asia reports.

Backgrounder: Shizuku AI, founded by University of California, Berkeley, doctoral graduate Akio Kodaira, is the creator of virtual YouTuber character Shizuku, which uses artificial intelligence to interact with viewers’ comments during live video streams.

• Shizuku AI plans to develop the character into an AI companion that can converse with individual users and act as their personal assistant.

• Funds from the investment will go toward developing multilingual voice synthesis capabilities for Shizuku, building richer conversational AI, and increasing presence across platforms like Discord, YouTube, and X, Andreessen Horowitz partners say.

The bigger picture: In 2024, Andreessen Horowitz named anime AI companions and virtual YouTubing as two areas of the anime market where user engagement is rapidly growing.

• “The reason why anime is so resonant as a genre for AI companions is because character affinity / romance is already built into many of the best anime stories,” partners at the firm wrote.

Clippings: Toho is Fuji Media’s largest shareholder again

Film giant Toho will once again become Fuji Media’s largest major shareholder and see its voting right increase. The commercial television broadcaster is buying back shares after an activist investor group ended a campaign for corporate reform that emerged out of a sexual misconduct scandal. (Jiji Press)

• Some context: Cross-shareholding between Japan’s television broadcasters and film companies is common broadcasters are often investors in film productions.

TV Asahi Music-backed Extra Mile raised US$1.5 million in pre-seed funding for development of its manga production platform Hanasee, which uses AI agents to help web novel writers turn their works into manga. (Press release)

• What they’re saying: A public relations representative told Animenomics that a separate platform called Xross Road for publishing and managing the IP rights of manga produced on Hanasee is also expected to go live later this year.

CyberAgent is acquiring anime studio CygamesPictures from mobile gaming affiliate Cygames and renaming it CyPic as the digital advertising company continues to pivot into anime intellectual property production. (Gamebiz)

Tokuma Shoten launched a digital-only weekly publication spun out of Japan’s oldest existing anime magazine Animage that is designed for reading on smartphones and sold through major e-book stores. (Press release)

Telecommunications giant NTT West, which owns leading digital manga platform Comic C’moA, is grappling with the impact of a rapid slowdown in the digital manga market and seeks to establish new, highly profitable subsidiaries. (The Nikkei)

Crunchyroll’s online store is reportedly attempting to lower warehousing costs by reducing the SKU count of products that sell fewer units, raising questions about the continuity of relationships with smaller anime publishers that it inherited from Right Stuf. (Anime News Network)

‘Gundam’ set to see record sales year at Bandai Namco

“Through new initiatives this fiscal year, such as exhibiting at the Osaka–Kansai Expo and launching trading card games, the popularity of [Gundam], previously centered on Japan and Asia, has expanded into North America. Furthermore, the hit game SD Gundam G Generation Eternal has broadened our touchpoints to reach a wider range of fans. By continuing these multifaceted developments, we aim for stable growth at a high level, not just a temporary surge.”

— Bandai Namco on the future sales revenue of its Mobile Suit Gundam property

Context: Bandai Namco reported its third straight quarter of Mobile Suit Gundam exceeding ¥60 billion (US$390 million) in total IP sales revenue last week, prompting questioning from analysts about the sustainability of Gundam’s growth.

• Bandai Namco forecasts a record ¥240 billion (US$1.57 billion) in total Gundam IP sales revenue for the twelve months ending in April 2026, up 56 percent from the last fiscal year.

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An announcement: I will be a guest this week in a live recording of the Real Gaijin podcast with host Mark Kennedy on Substack, where I will answer questions about almost three years of writing this newsletter on the anime and manga industry.

• Broadcast starts at 8:00 a.m. Japan Standard Time on Friday, February 6. (See time for your location.)

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Japan combats counterfeit anime merchandise online

Sales of counterfeit anime and other character products caused ¥4.7 trillion (US$30.4 billion) in estimated financial damages last year, according to a content piracy survey commissioned by Japan’s Ministry of Economy, Trade, and Industry.

Why it matters: The figure represents the first measure of the impact of piracy on the market for Japanese entertainment merchandise, a key effort in the government’s goal to quadruple the overseas market for Japanese entertainment.

Some context: Previous editions of METI’s survey, conducted by advisory firm PwC Consulting on behalf of an anti-piracy trade group, the Content Overseas Distribution Association, only calculated damages from piracy using digital content.

• In a 100-point action plan published in June, METI highlighted a need “to expand countermeasures not only for digital content but also for merchandise and other products that Japanese content companies rely on as sources of revenue”.

What’s happening: “Counterfeit goods are rampant, especially in online shops, and it’s difficult to crack down on them,” one anime licensor wrote in its response to the latest annual anime industry survey by the Association of Japanese Animations.

• A separate survey by Internet monitoring firm Adish last year found at least 841 counterfeit anime merchandise with prices totaling ¥22.2 million (US$140,000) being sold online for five top anime airing in the second quarter of 2025.

• Overseas licensees are attempting to combat counterfeit merchandise, but anime companies often lack sufficient chain of title documentation that allows them to submit infringement claims to these online shops.

By the numbers: Japan’s domestic market for anime merchandise grew 6.8 percent year-over-year in 2024, according to data compiled in the AJA survey, but results are mixed abroad.

• “The anime video business seems to be doing well, but merchandise sales have been trending downwards since the COVID-19 pandemic,” the aforementioned anime licensor said. “Except for a few hugely popular top tier titles, most products aren’t selling.”

AI startup opens anime merchandise approvals platform

NTT Docomo-backed artificial intelligence startup AIPEX last week began operating an online platform that aims to speed up content licensor reviews of anime character illustrations to be used on commercial merchandise.

Why it matters: Anime merchandise availability remains a bottleneck outside Japan, and products are often delayed due to approvals that licensees must seek from anime licensors.

• With more than 300 anime series aired each year, delays in merchandise reviews could mean licensees missing out on a title’s window of popularity.

How it works: AIPEX’s platform uses machine learning to check whether creatives submitted by licensees adhere to the original work’s worldview and character design rules, such as color schemes and settings.

• When a creative is submitted, AI makes suggestions for revisions, which are then confirmed by a reviewer at the licensor before being sent to the licensee.

• In demonstration experiments conducted by the company, AI was able to shorten the time of review by about 50 to 70 percent, the Nikkei reports.

What they’re saying: “We aim to promote [platform] adoption by publishers, game companies, and other companies that own IPs such as characters, anime, and manga, and to establish it as a standard supervision infrastructure in the licensing business,” AIPEX founder and chief executive officer Atsushi Oshiro said in a recent interview.

• The company aims to sign on several dozen customers this year, according to the Nikkei.

Clippings: Aniplex buys Egg Firm anime planning firm

Aniplex acquired Egg Firm, an anime production planning company best known for managing the production of titles like The Disastrous Life of Saiki K., Mushoku Tensei: Jobless Reincarnation, and My Love Story with Yamada-kun at Lv999. (Oricon News)

• Catch up quick: Egg Firm, founded in 2015 by a former producer from Genco, one of the first independent anime production planning companies, has grown rapidly in recent years thanks to a series of popular productions.

• Egg Firm’s net profit has quintupled in the last five years, reaching ¥78.4 million (US$504,000) in the fiscal year ending in March 2025, according to the company’s financial disclosures.

Entertainment magnate Tatsumi “Tom” Yoda is stepping back from more than 20 years of leading film distributor Gaga, including two years of leading the company’s new anime and media business division. (Animation Business Journal)

• Why it matters: Yoda, a co-founder of entertainment giant Avex and former chair of the Tokyo International Film Festival, led Gaga through a 2023 acquisition by amusement giant Genda and a pivot toward anime investments, culminating in a recent effort to enter direct anime film distribution in North America.

Crunchyroll’s viewership in Thailand has grown 50 percent year-over-year, leading the anime streaming service to increase investments with a new Thai-language user interface locally and dozens of new titles dubbed and subtitled in Thai. (Variety)

• In the United States, Crunchyroll is increasing prices on all three subscription tiers, the first price increase since 2019 on the streaming service’s lowest tier and the first since 2024 on its two upper tiers.

Japan’s top anime films with more than ¥1 billion (US$6.4 million) in domestic box office earnings generated a cumulative ¥90.1 billion (US$578 million) in 2025, nearly 20 percent more than the previous record set three years earlier. (Toyo Keizai Online)

Fuji Media’s Pony Canyon anime and music production subsidiary reported its third straight quarterly operating loss through December 2025, attributed to a lack of hit anime titles and decreases in merchandise and live event sales. (Gamebiz)

NTT Solmare’s MangaPlaza digital manga service in the United States saw daily sales double immediately following last month’s closure of pirated manga and webtoon site Bato.to. (Content Overseas Distribution Association)

Popular anime Detective Conan is facing backlash in China over a collaboration with My Hero Academia, whose anime adaptation was removed from video platforms in 2020 over the controversial naming of a villain charater. (Kyodo News via The Mainichi)

Permanent ‘Sailor Moon’ stage musical sets April debut

A permanent Sailor Moon stage musical production will begin holding performances in April for the first time in six years, as its producer, Nelke Planning, seeks to capitalize on a growing interest in stage productions among foreign visitors to Japan.

Why it matters: Japanese stage productions typically run for only two weeks to one month, which means travelers often end up visiting during a period when there is no show running, a Nelke Planning producer told the Kyodo news agency.

By the numbers: Overseas visitors have made up about 10 percent of the audience at Sailor Moon musical performances in Japan, according to Nelke Planning.

• Last year, the company brought the Sailor Moon musical abroad, performing Pretty Guardian Sailor Moon: The Super Live to sold out shows in the United Kingom, the United States, and China.

What’s next: Nelke Planning is taking over Club eX, a performance venue at Tokyo’s Shinagawa Prince Hotel, for almost daily performances of Pretty Guardian Sailor Moon: Shining Theater Shinagawa Tokyo starting in April.

• Actors in two teams will perform up to three shows a day, currently scheduled through the end of July.

• Nelke Planning had opened a popular Sailor Moon dinner theater in 2019, but that venue had to close in 2020 at the onset of the COVID-19 pandemic.

The bigger picture: As previously reported by Animenomics, the 2.5-Dimensional Musical Association, a trade group of production companies creating musical theater adaptations of anime, manga, and games, is also increasing support for performance ticket sales in English to attract more foreign tourists.

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Print manga sales tumble, digital manga slows down

Sales of print manga volumes in Japan fell 15 percent last year, the biggest drop since 2022, when the pandemic-era buying surge ended, newly released annual publishing industry data compiled by the Research Institute for Publications show.

Driving the story: After several hit manga titles—My Hero Academia, Jujutsu Kaisen, and Oshi no Ko, for example—ended publication in 2024, no new hit titles emerged in their place in 2025, suppressing overall print sales.

Zoom in: Japan’s print publishing market fell below ¥1 trillion (US$6.5 billion) for the first time in 50 years.

• This figure is far below the print publishing market’s peak of ¥2.6 trillion in annual sales in 1996.

Between the lines: Digital manga sales, which make up three-quarters of the manga market, continued its growth trajectory last year, but only at a rate of 2.9 percent, the category’s slowest growth rate on record.

• As previously reported by Animenomics, year-over-year growth of digital manga in Japan in the first half of 2025 was recorded at 4.6 percent.

• In the second half of the year, however, annual growth was just 1.5 percent, a warning sign that digital manga’s growth could come to an end sooner rather than later.

The bigger picture: Japan’s broader publishing market, meanwhile, fell 1.6 percent to ¥1.55 trillion (US$10.1 billion), the fourth consecutive year of decline.

Japan Foundation promotes anime films in African tour

Japan’s agency for cultural promotion abroad, the Japan Foundation, is starting the new year with an acceleration of its two-year campaign to develop a market for anime films in African countries.

Why is matters: Africa remains largely untapped for the anime industry, with the continent accounting for only 4.7 percent of all contracts signed between Japan’s anime companies and international parties in 2024, according to the latest industry survey by the Association of Japanese Animations.

What’s happening: The foundation’s Japanese Film Festival Africa Tour will travel to 14 countries throughout 2026 after stops in Ethiopia, Nigeria, and Rwanda last year.

• This weekend’s stop in Cairo will feature Studio 4°C president and producer Eiko Tanaka, who is scheduled to give a special lecture to local film and anime officials, Branc reports.

• Next month, the festival travels to Nairobi, where it will focus on showcasing anime films like Akira and Sand Land, and it’s expected to fuel collaborations between local animators and Japanese creators, The Star newspaper reports.

• A number of anime titles like Attack on Titan and Your Name are also being made available online in all 54 countries of the continent.

Reality check: Streaming platforms and new fan conventions are fueling growth in anime viewership, but the Japan Foundation recognizes that awareness of Japanese content among the public and the local media industry is still low.

• “While Africa contributes to viewership numbers, engagement metrics, and cultural relevance, it does not meaningfully participate in IP ownership, studio production, licensing negotiations, merchandising supply chains, adaptation rights, and financing decisions,” Lagos-based influencer marketing agency TIMA argues in a recent newsletter.

Clippings: Manga publishers recruit more foreign artists

Japanese manga and webtoon companies are increasingly recruiting foreigners to become manga artist, putting them in training programs and housing them in dorms to facilitate their introduction to the manga industry. (Nikkei the Style)

South Korea’s Kakao Entertainment has forced the closure of manga and webtoon pirate website Batoto and its user communities, which saw millions of monthly visitors. (TorrentFreak)

• An unorthodox anti-piracy unit within Kakao Entertainment that regularly recruits informants in order to bring legal action to pirate sites claimed responsibility for Batoto’s closure.

LINE Yahoo! Japan’s domestic flea market app is moving to ban high-priced resales of new Gundam robot plastic models after high demand for certain products led to shortages at toy and hobby retailers. (Otaku Lab)

Eleven percent of manga artists and 14.5 percent of illustrators surveyed by the Freelance League of Japan say that their incomes have decreased by at least 10 percent as a result of artificial intelligence technologies. (ITmedia AI+)

About half of manga readers in Japan have no strong positive or negative opinion on the use of artificial intelligence in manga production, according to a new survey of 1,000 people, but two-thirds of respondents are resistant to reading manga that are mostly produced by AI. (AdverTimes)

Mizuki Shigeru Museum and its surrounding attraction in western Japan’s Tottori Prefecture has seen international visitors double in the last three years, with visitors from Hong Kong, Taiwan, and elsewhere flocking to see characters from the manga author’s works. (Nikkei Asia)

Wine manga screen adaptation faces French legal limits

The arrival of a second season of the live action Drops of God television series, loosely based on Tadashi Agi and Shu Okimoto’s The Drops of God manga, revives a debate in France over legal barriers in the country’s illustrious wine industry.

Why it matters: The multinational production, which includes Hollywood’s Legendary Television, national broadcaster France Télévisions, and Hulu Japan, was named Best Drama Series in the 52nd International Emmy Awards.

Catch up quick: Since 1991, French law has prohibited the promotion of alcohol on television or in cinemas, which means a television series about wine like Drops of God can’t promote the wines it features.

• As was done in the first season, the French broadcast of the second season will blur wine bottles and their labels, according to La Revue du vin de France, one of the country’s most highly regarded wine publications.

• “It’s absurd in the country of wine, which represents a vital part of our agricultural trade balance. We should be proud of our heritage,” sommelier and restaurateur Sébastien Pradal, who selected the show’s featured wines, told the magazine.

• In Japan, however, as previously reported by Animenomics, real-life vintages that were featured in the original manga became bestsellers overnight.

By the numbers: While Drops of God received wide critical acclaim when it debuted on Apple TV in 2023, the French television broadcast the following year didn’t see the same success.

• An estimated 2.87 million people—a 14.2 percent market share—watched the first episode, but viewership fell 38 percent by the last episode.

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In case you missed it: AnimeJapan, the anime industry’s annual trade exhibition and business fair, kicked off event programming announcements for its 2026 edition last weekend.

• Organizers also announced registration details for the March 30 and 31 business fair days, though ticket sales haven’t opened yet.

• Animenomics plans to be in Tokyo to attend AnimeJapan. Please reach out if you are interested in a meeting.

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Gaga starts North American distribution of anime films

Japanese film distributor Gaga is planning an aggressive expansion of live-action and anime film direct distribution in North America, following a similar move made by film giant Toho in 2024.

Why it matters: Anime films have scored a string of successes in the North American box office in recent years, and Japanese companies are now looking to capture a greater share of the local sales revenue.

• When film distribution is handled by local companies, Japanese companies are able to outsource the cost of local promotion and distribution to partners while keeping a focus on rights revenue.

• In exchange for this arrangement, however, the local distributor often retains a large share of sales revenue if the film becomes a box office success.

Zoom in: Gaga is launching this effort with next month’s North American release of Umamusume: Pretty Derby – Beginning of A New Era, a film from Cygames’s mobile game franchise that earned ¥1.4 billion (US$8.9 million) in the Japanese box office.

• With the release, Gaga seeks to replicate the success of a concert film by Japanese superstar singer Ado, which it distributed on its own across more than 300 theaters last year.

• The release of the Umamusume film two years after its debut in Japan comes as the mobile game is growing in popularity after an English-language edition launched in June and won Best Mobile Game at the Game Awards in December.

Yes, but: “Large-scale releases require the know-how of local companies, which poses a high hurdle for Japanese companies,” anime industry journalist Tadashi Sudo writes in Animation Business Journal.

• After Toho distributed Godzilla Minus One directly in North America, it acquired New York-based anime and animation film distributor GKIDS to bring that kind of local film distribution expertise in house.

What’s next: Gaga’s corporate parent, amusement giant Genda, said last week that it plans to promote the Umamusume film at the 12,000 gaming corners it has swept up across North America.

Edia ramps up anime production for its own light novels

Tokyo-based Edia is quickly ramping up production of new anime properties after the company launched its anime production business last August, amid a transition from being a mobile services provider into an entertainment company.

Why it matters: Edia’s ownership of light novel and manga publisher Hifumishobo is an advantage for the company as it plays the role of both an originator of new media properties and an anime production investor.

• Companies without their own original properties compete to acquire popular IPs, often leading to increased development costs and less favorable terms, Gamebiz reports.

By the numbers: Edia is now developing at least five new anime titles for broadcast in 2028 and beyond, according to the company’s third quarter earnings results, up from three in the prior financial period.

• The company plans to scale up investments to tens of millions to several hundred million yen (hundreds of thousands to millions of United States dollars) per anime title, after previously only investing small amounts in production committees.

• To learn more about anime production, Edia initially participated in committees for Drugstore in Another World and The Aristocrat’s Otherworldly Adventure, both based on Hifumishobo light novel titles.

The bigger picture: As a production committee organizer and investor, Edia stands to benefit from a greater share of profits that come from licensing out the anime for merchandising, overseas distribution, and other secondary uses.

Clippings: MAPPA partners with Netflix on distribution

Anime studio MAPPA is deepening its collaboration with Netflix as a distribution partner as it doubles down on a studio-led anime production model where MAPPA is responsible on everything from story development to merchandise strategy. (Nikkei)

Sony Pictures and Netflix announced a global exclusive first streaming window deal that will bring all of Sony’s feature films to Netflix globally after completing their runs in theaters. (IndieWire)

• Between the lines: The deal doesn’t include anime films distributed by Sony’s Crunchyroll film business, but it sounds like it might include Mamoru Hosoda’s Scarlet, which isn’t released by Crunchyroll.

Toho is proposing the transfer of its ¥22.2 billion (US$140 million) domestic and overseas video sales and licensing business to subsidiary Toho Global as the film giant establishes a local presence in North America, Southeast Asia, and Europe. (Animation Business Journal)

IG Port warns that an ongoing diplomatic dispute between Beijing and Tokyo over Taiwan could affect its anime merchandise sales and licensing if the former introduces stricter regulations on the handling of Japanese media properties. (Gamebiz)

Spirited Away’s stage production sold 30,000 advance tickets in South Korea prior to its January 7 premiere in the country. It’s said to be the largest Japanese-language production in the history of South Korean theater. (Nikkei)

AI manga translations could sap public interest in Japan

“The success of Japanese manga overseas is thanks to foreign publishers. […] Despite this, Japanese publishers, now facing limitations in the domestic market, are developing generative AI and platforms to sell digital versions directly overseas, completely disregarding the role of these foreign publishers.”

— Karyn Nishimura, Tokyo-based French freelance journalist

Context: Nishimura, in a column for Newsweek Japan, argues that manga publishers’ overtures into using artificial intelligence technology for translation risk alienating the foreign manga translators whose work generate public interest in Japanese culture.

• Catch up quick: Mantra, an AI translation startup that has received investments from publishers, now has the capacity to produce 20,000 translated manga pages a month, up from 10,000 two years ago, founder Shonosuke Ishiwatari told the Nikkei financial newspaper.

• Publishers say AI-assisted manga translation gives them the ability to deliver new works to readers around the world more quickly, before pirated copies have the chance to proliferate online.

The bottom line: “Generative AI is merely a tool to increase sales through efficiency,” Nishimura argues.

• “The widespread use of generative AI in manga distribution is putting the cart before the horse and carries a high risk of undermining interest in the Japanese language and in Japan itself.”

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In case you missed it: The Academy of Motion Picture Arts and Sciences shared on YouTube a special behind-the-scenes video of the animation of Demon Slayer: Infinity Castle, ahead of next week’s nominee announcements for the 98th Academy Awards.

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Fair Trade Commission publishes anime inquiry findings

Japan’s Fair Trade Commission last month shared the findings of its inquiry into labor practices in the anime industry, highlighting structural issues in the anime production committee model, copyright ownership, and bargaining power across the supply chain.

Why it matters: In releasing the report, the JFTC included a statement indicating that it’s prepared to create formal guidelines to regulate how committees, anime studios, subcontractors, and streamers negotiate and share information.

Rewind: The inquiry was launched after former prime minister Fumio Kishida asked the commission in 2024 to investigate possible contract abuses between production companies and freelance workers in film and anime.

Zoom in: The report centers around four types of business relationships in the anime industry—between the production committee and prime contractor studios, between prime contractors and subcontractors, between studios and freelancers, and between global streaming video companies and prime contractor studios.

• The commission won’t force production committees to ensure that anime studios remain profitable, but it wants committees to be more responsive when studios request budget increases to accommodate increasing demand for higher quality work, delays in production, and rising prices.

• Anime studios said they are effectively forced to give away intellectual property rights without meaningful compensation or negotiation, which the JFTC flagged as a potential abuse of the committees’ superior bargaining position.

• Subcontractors reported that cost-cutting at prime contractor studios cascades through the rest of the anime supply chain, creating a “race to the bottom” situation for wages at small studios and of freelancers.

• Half of anime studio producers surveyed by the JFTC said that streaming video companies don’t disclose viewership data, hindering fair negotiations and revenue‑share transparency.

How they reacted: The Nippon Anime & Film Culture Association, an anime labor advocacy group, praised the commission’s thorough work in a statement that also summarizes the report.

• “We believe that by widely sharing the contents of this survey with the public, including fans who love and support Japanese anime, the anime industry can engage in constructive discussions and make better choices,” the statement adds.

Publishing group invests in French anime co-producer

French publishing conglomerate Média-Participations has acquired a 25 percent stake in Paris-based animation production studio Miyu Productions, which has been gaining prominence for its anime co-productions with Japanese creators in recent years.

Why it matters: Média-Participations operates the streaming video service provider Animation Digital Network, which the conglomerate bought out from Crunchyroll in 2022.

• Partnering with Miyu Productions gives ADN the ability to acquire exclusive local and innovative works of anime in order to compete with Crunchyroll and other global streamers that also serve anime.

Catch up quick: Miyu Productions rose to prominence in Europe’s animation scene after its film Chicken for Linda! won the Annecy International Animation Film Festival’s top prize in 2023 and France’s César Award for Best Animated Film the following year.

• In Japan, it collaborates with innovative anime creators and invests in original and experimental works, such as Yoko Kuno’s Ghost Cat Anzu, which received award nominations in film festivals around the world.

• Miyu Productions is ramping up its Japanese co-productions, planning at least three anime films for 2026 and beyond, including one by award-winning director Masaaki Yuasa.

Between the lines: “French viewers bring something different to the table,” London-based anime industry consultant Jerome Mazandarani writes in a column. “They’re more open-minded about anime provenance and not fixated on whether something is or isn’t a ‘pure’ Japanese production.”

The intrigue: Miyu Productions and ADN are already developing “new production models for animated series in collaboration with Japan”, Bastien Guetta, ADN’s head of content development for marketing and theatrical, wrote on LinkedIn.

• This is the first indication that Miyu Productions is co-producing an anime series, having co-produced only anime short films and feature films until now.

Clippings: Light novel publisher TO Books to go public

Light novel publisher TO Books received approval for a public listing of its shares on the Tokyo Stock Exchange starting in February, seeking to raise at least ¥1.68 billion (US$10.5 million) to recruit editors and IP development staff and increase advertising. (Animation Business Journal)

• Why it matters: Titles published by TO Books regularly rank among the top light novel series as compiled by Takarajimasha, and more than a dozen have received anime adaptations.

• This is the second public listing by a light novel publisher in four months, a signal of optimism in the market for light novels and related media mix projects.

Publishing giant Kadokawa is seeking potential acquisitions in Germany, the Middle East, and Latin America, as the publisher aims to grow the global market for its light novels and manga through direct sales rather than through local licensees. (The Nikkei)

Japan’s character merchandise lottery market has more than tripled since 2019, an analysis by toy wholesaler Happinet found, largely driven by the growth of online and overseas sales of lottery tickets since the COVID-19 pandemic. (The Nikkei)

Doraemon ended broadcast in Indonesia, a key Southeast Asian market where the anime series that became a cultural phenomenon aired on private broadcaster RCTI for 35 years. (The Indonesian Anime Times)

Japan accounted for nearly half of South Korea’s webtoon export market in 2024, an annual webtoon industry survey by the South Korean Ministry of Culture, Sports, and Tourism and the Korea Creative Content Agency found. (The Chosun Biz)

Comici rethinks data use for English manga platform

“Comici MANGA is designed to avoid using data in the creation process. Manga creation should be nurtured through the intuition of the author and the editor believing, ‘This is interesting,’ and through interactive, live feedback from readers during serialization.”

— Daisaku Manda, manga startup Comici founder and chief executive officer

Context: In a blog post revealing Comici’s English-language web and mobile platform for reading manga—previously reported by Animenomics—Manda argues that an overreliance on data in the webtoon creation process has resulted in webtoon studios converging on the same winning formula, stifling creativity and diversity in new titles.

• “Webtoons have been overly optimized for short-term sales, user engagement time, and conversion rates,” he writes.

• Manda says Comici MANGA will rely on data primarily in the delivery process: for recommending works, title discovery, and selecting works for translation.

One big thing: Comici MANGA’s digital back catalog includes Masayuki Kusumi and Jiro Taniguchi’s widely acclaimed manga The Solitary Gourmet, which was published in English in November by Spain’s Ponent Mon and London-based Fanfare.

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In case you missed it: Mamoru Hosoda’s Scarlet, the Chainsaw Man: Reze Arc film, My Melody & Kuromi, Dan Da Dan, and the third Star Wars: Visions anthology series are among several anime and anime-adjacent titles nominated in the 53rd Annie Awards.

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Link-U bets its future on AI-led manga app development

Link-U Technologies, Japan’s leading developer of digital manga platforms, is looking to replace much of its software development work with artificial intelligence as the digital manga market undergoes a shift at home and abroad.

Why it matters: Link-U is aggressively building digital manga platforms for Japanese publishers and distributors that are seeking to expand overseas, and the shift to AI-assisted app development could launch a technological race in digital manga abroad.

Driving the story: The company has reorganized its leadership team, with co-founder and chief technology officer Tsuyoshi Yamada moving into a chief AI officer role to lead the transformation efforts.

• Last month, Link-U said it had secured a ¥100 million (US$640,000) contract to build a digital manga service using AI-assisted software development.

• The announcement came just four months after it signed another contract worth ¥200 million (US$1.3 million) offering the same services.

What they’re saying: In a seminar held last April, Yamada said that 60 percent of Link-U Technologies employees saw increased productivity after the company began using Cursor, an AI-assisted software development service by Silicon Valley firm Anysphere.

• Recent announcements by Link-U indicate that the company will shift software engineers to upstream work such as system planning and design, where they can deliver more value.

The bigger picture: Link-U’s pivot toward AI-assisted development reflects a desire for more innovation in digital manga as the domestic digital manga market becomes increasingly competitive amid slowing growth.

• As of June 2025, there were 459 manga and e-book reading apps in Japan with more than 500 monthly active users, according to a survey by App Ape, a mobile analytics service.

• Overseas, however, manga publishers are expanding their digital footprint with their own manga apps rather than relying on local platforms, as Link-U has done for Shueisha with MANGA Plus and for Square Enix with Manga UP!

• Link-U’s recent partnership with anime streaming giant Crunchyroll to relaunch its manga app also demonstrates renewed attempts to encourage digital manga adoption outside Japan.

Clippings: Itochu invests in Taiwan e-commerce service

Trading conglomerate Itochu has invested in Taiwanese cross-border e-commerce service Bibian, which sees 40 percent of sales volume from customers in Taiwan who buy Japanese anime and character products. (Taiwan News)

• Bibian plans to expand its service beyond Taiwan and into North America and other parts of Asia by 2029.

Avex has exited its Singapore-based joint venture with Sanrio, though still remaining as a strategic partner after five years of helping the latter build a brand presence in Southeast Asia and multiplying regional sales by ten over that period. (Press release)

Comic Market organizers are considering extending the run of the twice-yearly sales event for anime and manga fan art and fan comics from two days to three days, which hasn’t occurred since the COVID-19 pandemic. (Otaku Lab)

• Last week’s 50th anniversary edition of Comic Market drew 300,000 visitors over two days, with over 10 percent more cosplayers attending compared to the same time last year.

AlphaPolis is canceling plans to publish and adapt into manga a web novel that won a fantasy novel contest organized by the digital manga and light novel publisher last year after most of the work was found to be generated using AI. (Otaku Lab)

• As previously reported by Animenomics, AlphaPolis is among several web novel platforms contending with a growing number of AI-generated works.

Magazine House to scale up manga publishing business

“We’ve been in the manga business for about three years now, and we’re just about breaking even. The timing worked out well because we could enter the market solely through digital distribution. If we had had to create a print magazine, entry would have been impossible.”

— Shuichi Tetsuo, Magazine House president and chief executive officer

Context: Magazine House is finally gaining traction in manga publishing thanks to its stylish Shuro digital manga portal, Tetsuo told The Bunka News newspaper, decades after the fashion and lifestyle publisher first exited the business following the end of a short-lived manga magazine in the 1990s.

• Magazine House, best known in Japan for iconic fashion magazines like Anan and Popeye, has used its magazine portfolio to promote and serialize some its manga titles, even having Anan and Shuro start a new manga contest last year.

• Since the formation of the manga editorial department under Takehiro Sekiya, whom Magazine House recruited from Leed Publishing, the team has grown to five editors.

What’s next: “Currently, the book editorial team has nine people and generates about 20 to 30 percent of the company’s total profits. We’d be happy if the manga business could grow to a similar level,” Tetsuo said.

FamilyMart adds anime arcade machines to 5,000 stores

Japanese convenience store giant FamilyMart is turning thousands of its branches into entertainment retail outlets, showcasing merchandise collaborations with anime and video game properties at a media event last month.

Why it matters: FamilyMart’s investment into entertainment experiences comes at a time when the chain’s customer base is shifting from working men in their 30s to 50s to teenage boys and girls, the Toyo Keizai business magazine reports.

What’s happening: FamilyMart plans to increase installations of arcade machines like crane games, which until now has been limited to around 1,600 stores in urban areas, to 5,000 stores, about 30 percent of its network.

• It’s also adding Pokémon Frienda arcade game machines on a trial basis at two locations in Tokyo and will collaborate with the Anime Tourism Association this year to feature anime titles in which FamilyMart stores have appeared.

Between the lines: Growth in the number of convenience stores in Japan has slowed to a trickle since the COVID-19 pandemic, adding only 100 stores in the last five years.

• FamilyMart itself has also closed more than 1,600 unprofitable locations since its acquisition of Circle K Sunkus in 2017, which means growth from the company must come from attracting new customers and growing per-customer spend.

• “By expanding the installation of in-store amusement facilities, we will create new reasons for customers to visit our stores that didn’t exist before,” chief marketing officer Hikaru Adachi told Toyo Keizai.

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