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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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Southeast Asia’s dynamic economic landscape is fueling a particularly robust expansion within its food and beverage industry, a trend most visibly exemplified by the region’s burgeoning and innovative cafe sector.

Southeast Asia has experienced a pronounced rise in the availability of modern and specialty coffee, driven by a competitive mix of international and domestic chains. This growth has established a modern coffee market valued at US$3.4 billion in 2023, with Indonesia and Thailand leading as the largest markets at US$947 million and US$807 million in turnover, respectively, according to Momentum Works.

Paralleling this growth is the expansion of anime fandom, which has spurred collaborations and dedicated cafes that often prioritize thematic immersion over the quality (specialty) of their coffee offerings.

Erik Thianto, owner of Indonesia’s Multi Toys & Cafe, the country’s largest toy retailer, has navigated the anime cafe market since 2023. He confirms a powerful interest in anime culture but identifies significant hurdles for new ventures, such as developing a food menu that would resonate with local Indonesian tastes and curating a welcoming environment for both dedicated fans and those new to the community.

“In Indonesia, for instance, a core objective for an anime cafe is to introduce the culture to a broader, uninitiated audience. This extends to the menu, where we focus on using colors that vividly represent specific characters. However, certain specialized tastes and dishes may not have universal appeal, making it essential to also offer widely accepted options, such as Japanese curry, to ensure there is something for every consumer,” Thianto said.

Emerging from its epicenter in Japan during the early 2000s, the anime cafe phenomenon swiftly transcended its domestic appeal. These establishments became significant cultural portals, attracting not only local enthusiasts but also international tourists, thereby acting as catalysts for the global proliferation of Japanese pop culture.

The trend quickly took root across Southeast Asia, with notable establishments emerging in Indonesia, Thailand, and Singapore. A prime example was the region's first official Studio Ghibli cafe, May’s Garden House Restaurant, which opened in Bangkok in 2018. Often called the Totoro Cafe, it ultimately closed due to COVID-19 regulations, illustrating the market’s susceptibility to external shocks.

Despite such setbacks, interest in the intersection of anime and food and beverage has continued to thrive across Southeast Asia, exemplified by several Indonesian coffee brands securing major anime franchise partnerships. Tomoro Coffee collaborated with Jujutsu Kaisen and Kopi Kenangan with One Piece, with each franchise developing special menus and merchandise specifically for the country’s dedicated anime fan base.

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A beloved cast of fossil-inspired characters from a popular Japanese exhibition is heading to Chicago next spring, as the Pokémon Fossil Museum makes its North American debut at the Field Museum of Natural History in May 2026.

This exhibition blends real paleontology with the world of Pokémon, featuring life-sized fossil Pokémon like Tyrantrum and Archaeops standing alongside iconic fossils such as Sue the T. rex and the Chicago Archaeopteryx.

In the Pokémon anime, several notable episodes highlight fossil Pokémon and their role in the series’ lore. These include “Attack of the Prehistoric Pokémon,” which features a fossil rush, and “Fossil Fools,” where a revived, living Pokémon is discovered.

Created in collaboration with Tokyo’s National Museum of Nature and Science, The Pokémon Company International, and the Field Museum, the exhibit explores deep into ancient life and fossil excavation. Visitors are guided by interactive Pokémon professors and an excavator Pikachu mascot. This is the first time this immersive experience is coming to North America, outside of Japan.

The Pokémon Fossil Museum, a popular traveling exhibit in Japan, blends paleontology with pop culture by comparing fossil Pokémon to real prehistoric creatures. Guided by characters like “Excavator Pikachu” and real-life experts, visitors explore the science behind the fantasy. The exhibit wraps up its Japan tour in 2026 with final stops in Nagasaki, Tokushima, and Mie Prefectures. Over one million people have attended since its launch.

Anastasia DeMaio, an exhibition developer for the Field Museum, shared that while the Chicago version of the Pokémon Fossil Museum is still being developed and specific details can’t yet be confirmed, the team is actively working on expanding the exhibit and shaping its overall themes.

When asked how cultural institutions balance education with entertainment-driven IPs, DeMaio explained that the Field Museum only takes on projects with clear educational value. Once onboard, they deepen the content by expanding on the IP and drawing stronger connections to real-world science and history.

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Southeast Asia’s 2D animation industry struggles not from a lack of talent, but from fractured creator-investor relationships, and its future hinges on stories rooted in local voices, not borrowed blueprints, investors argue.

Japanese companies have increasingly invested in and collaborated with Southeast Asian animation producers and artists in recent years.

Aswin Nur Cahya, founder of Indonesia’s Jiva Animation and a contributor to major anime productions like Attack on Titan, recently formalized a creative partnership through a Memorandum of Understanding with Japan’s Hayabusa Film.

Cahya’s career includes pivotal work at Tokyo’s Color & Smile, positioning him as one of few Southeast Asian animators with deep Japanese industry immersion.

Jakarta’s Studio Ubud, another regional player, has built its reputation working with anime studio Pierrot on major franchises including Bleach and One Piece.

In Vietnam, Nam Hai Art and other studios have delivered work for Attack on Titan and Black Butler, spotlighting the region’s growing anime production roles.

Two key factors drive this regional growth: competitive labor costs and deep cultural affinity. Southeast Asia’s passion for Japanese animation is quantifiable. Google Trends data reveals three of the top five global markets for anime search volume—the Philippines, Vietnam, and Malaysia—hail from the region.

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Fueled by fresh investment from a prominent Japanese studio, Indonesian creators are setting their sights beyond domestic borders. They aim to carve a global footprint with original webtoon series, challenging conventions and redefining digital storytelling.

Indonesian studios are gaining recognition both locally and internationally as the local comics industry continues to grow.

Among the rising studios is Kisai Entertainment, which gained recognition last December after securing US$1 million in funding from Japanese webtoon company Sorajima and local gaming firm Anjary Jaya Raya.

Sorajima, a notable webtoon producer in Japan, is known for titles such as I’ve Fallen for the Empire's Greatest Villainess and Sofia Has New Plans for Marriage.

Ananda Jordan, Kisai Entertainment’s branding and marketing manager, noted that while the funding “might not be a mega amount of money”, it proves that niche businesses can still thrive in the competitive comic industry.

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Kadokawa Corporation’s Indonesian joint venture is set to expand its reach by translating more Japanese manga and light novel titles. Beyond that, the prospect of publishing original local stories also looms on the horizon, raising the question of whether this could be the spark that propels Indonesia’s comic scene to new heights.

Indonesia has long embraced Japanese pop culture, with generations of Indonesians growing up watching anime on Sunday mornings on local TV stations. Many eagerly anticipated the arrival of their favorite manga, waiting for translated editions to appear on bookstore shelves. Yet, despite this deep-rooted enthusiasm, the availability of niche titles catering to devoted anime and manga enthusiasts, often referred to as ‘otaku’, remains limited.

Last year in January, Kadokawa and local publishing conglomerate Kompas Gramedia Group announced a strategic joint venture, forming Phoenix Gramedia Indonesia, in which the Japanese publishing giant owns a 51 percent share. This collaboration aims to bring a new wave of licensed light novels to Indonesian readers, including standout titles like Alya Sometimes Hides Her Feelings in Russian and many more, signaling a fresh chapter in the nation’s literary engagement with Japanese pop culture.

Phoenix Gramedia Indonesia General Manager Yu Miyoshi noted that Kompas Gramedia’s longstanding expertise in the publishing industry was a key factor in Kadokawa’s decision to entrust them with this joint venture.

“Gramedia has a fully integrated value chain, covering everything from publishing and printing to distribution and retail,” he told Animenomics last month.

Phoenix Gramedia Indonesia aims to diversify its offerings by publishing titles that venture beyond mainstream appeal. Miyoshi noted significant untapped potential in the light novel reader market, which the publisher aims to capture. The focus includes works cherished by otaku readers.

“We want to make PGI a top ACG [animation, comics, and games] content provider in Indonesia in the medium to long term. With its growing population and expanding economy, we see Indonesia becoming one of the biggest ACG markets in Southeast Asia,” he shared.

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The global fascination with manga has experienced an extraordinary surge in recent years. From North America to Southeast Asia, audiences are engaging with manga at an unparalleled rate. This remarkable growth can largely be attributed to the newfound accessibility that readers now enjoy, making it easier than ever to dive into this captivating world.

Yet, in many regions across the globe, there remains a distinct lack of online publishing platforms to adequately support the burgeoning manga industry.

Rizky Arrydesta Suherman, an Indonesian comic artist behind works of CANDALA, a story inspired by the mythical Indonesian creature Buto, has pointed out the challenges facing the local comic scene. He notes a significant lack of supportive collectives, especially those that advocate for creative freedom.

“Lately, many creators have voiced concerns,” he said. “When their work gains popularity, whether through platforms like Webtoon or by catching the attention of publishers such as Kodansha in Japan, they often find themselves losing creative freedom, compromising their artistic autonomy.”

Suherman stressed that Indonesia needs support from countries with successful platforms that empower creators like him to showcase their stories on the global stage. He pointed to Japan as a model, noting its comprehensive support for market research, including identifying popular story themes and character designs that resonate with audiences.

Suherman himself has no intention of focusing on the print market. Instead, being published on international platforms will be a crucial way for both him and other local comic artists to gain recognition at home.

“There is a prevailing cultural sentiment in Indonesia where artists are more highly regarded once they have achieved recognition on the international stage,” he remarked.

Manga and Japanese culture have a particularly strong following in Indonesia. It’s no wonder, then, that pursuing a career tied to Japanese culture, such as becoming a manga artist, remains a cherished aspiration for many.

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This is a bonus newsletter of Animenomics, covering the business of anime and manga. Today is Saturday, January 13, 2024.

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Anime studios promote rural Japan, aid quake recovery

Few anime production facilities are located in central Japan’s Hokuriku region that was struck by an earthquake on New Year’s Day, but one important studio exists in the area: P.A. Works.

The company’s main studio was never at risk of being hit by a tsunami because of its inland location in Nanto, Toyama Prefecture, but founder and president Kenji Horikawa said on X (Twitter) that he had never felt aftershocks as strong as ones from this earthquake. P.A. Works later confirmed that its studio building did not suffer any major damage and that no staff members were injured.

P.A. Works is important to the Hokuriku region because it often creates anime with stories set in locations familiar to locals. They include Hanasaku Iroha, a series about a traditional Japanese inn in Ishikawa Prefecture, and last year’s Komada: A Whisky Family, a film inspired by the region’s last remaining whisky distillery. In the days since the earthquake, P.A. Works has been reintroducing its works to the public to generate awareness of and support for the area.

The role that anime studios play as promoters and cheerleaders of Japan’s outer prefecture is not new. In fact, the anime industry and stories that we see now are shaped by another disaster from over a decade ago—the earthquake and tsunami that struck northeastern Japan in 2011. This is evident even today in works such as Makoto Shinkai’s Suzume and Mari Okada’s Maboroshi.

Anime was not a global social media phenomenon yet in 2011. The struggles of the anime industry immediately following the disaster was not documented well in overseas media outlets, but some media coverage did exist. “Earthquake Rattles Japanese Animation Industry,” Bruce Kennedy wrote for AOL’s Daily Finance at the time, describing anime studios at a standstill because of rolling blackouts in Tokyo.

I entered anime journalism three years later, when anime was on the cusp of a new global boom. In the years that followed, I observed what Japanese cultural critic Tsunehiro Uno called “an underlying sense of the everyday imbued with the extraordinary”. By then, anime studios had returned to work and was producing content for a hungry global market, but the disaster had also left a mark on the industry.

Images of rural towns washed away by the tsunami placed renewed attention on the Japan’s aging outer regions. Many turned to anime culture to revitalize their local communities, and anime studios became partners in their endeavor. Others in the industry chose to start their own regional revitalization initiatives.

When I was working in Malaysia for MyAnimeList in 2016, I met an anime studio executive who led one regional revitalization effort: Yoshinori Asao. Asao is the president of Gaina, an anime studio spun off from Gainax (of Neon Genesis Evangelion fame) and originally named Fukushima Gainax. As the name suggests, the studio was founded in a region impacted by the 2011 tsunami.

I am now sharing excerpts of my interview with Asao, which has never been fully published. I believe readers will gain insight from his comments of how an anime studio can play a role in disaster recovery.

I include the original audio recording, which also contains the interpreter’s live translation of Asao’s answers, but the transcription below is my own translation:

Yoshinori Asao (translated): I myself am from Fukushima. However, long before the disaster, Gainax already had plans to build a new studio. That was about six to seven years ago [in 2009–2010]. The reason for this has to do with the fact that the population of young people in Japan is steadily decreasing. On the other hand, in Asia, in the Middle East, and in Africa, for example, the number of young people was increasing rapidly. The popularity of anime was also growing quickly, so we wanted to make anime together with overseas partners as soon as possible.

When we did some research in several countries; however, we realized that the way we make anime in Japan is very different from the way current CG titles, video games, and Hollywood-style anime are made. We came to the conclusion that it would be very difficult to do something with a foreign partner in the environment of the existing Japanese studio. Therefore, the main reason for creating the second studio was that I thought it would be faster for a new studio to plan from the beginning to work together with overseas studios.

At around that time, the major earthquake occurred, and the project came to a halt for a while. About two years after the earthquake, or maybe three years later, children and their families were still unable to return to Fukushima because the reconstruction was slow to progress, even after three years since the earthquake. As a result, there were a lot of buildings in Fukushima that were no longer in use, such as schools. We thought then if we built a studio and an anime museum there, even if the building does not become a school again, if we create an fun attraction, young people and families would come back to visit.

In addition, we wanted to start a new industry in Fukushima, and we think that new job opportunities can be created for young people there.

Months before I met Asao, Fukushima Gainax worked on an anime project called Omoi no Kakera, literally meaning fragments of feelings. Its story was set against a backdrop of the tsunami’s reconstruction efforts and was aired by Japan’s public broadcaster NHK. The anime was never officially released abroad.

I asked him about the work:

Yoshinori Asao (translated): We received a request from NHK to create Omoi no Kakera as a milestone to memorialize the fifth anniversary of the disaster. In the past five years, the word fukkō [復興], or reconstruction, has been present throughout Japan. Fuku [復] means to restore things to the way they were, and kō [興] has the meaning of causing something or starting something. The second phase of reconstruction will not be completed within five years, so we will mark a milestone and then move on to the next five years. This is the catalyst that resulted in us being asked to create a work for memorialization.

We traveled around Fukushima, Miyagi, and Iwate Prefectures, to the places that had a lot of tsunami damage. We set the story in the town of Onagawa, Miyagi Prefecture, which saw the most damage from the tsunami and disappeared as a whole. As for the earlier question of why figure skating, the figure skating scene is very popular in Miyagi Prefecture. It is home to Olympic gold medalists Yuzuru Hanyu and Shizuka Arakawa. Many children there learn figure skating to become [athletes] like them, so we made the main character a girl who does figure skating.

Omoi no Kakera was a two-minute project at first, but in that process we were asked to include events that actually happened during reconstruction, so we captured a project to restore photographs in the story. For families, homes, and towns that have been swept away, no records are left behind. When cleaning up the ruins, photos were found without knowing who the owners were, many of them dirty and torn. For example, when someone would go to find the place where their house used to be, there was nothing left, but everyone said they did not want to lose their memories, so they brought back a lot of photos. Some of them were still dirty, so there was a project where volunteers used digital technology to clean them up. We thought it was an amazing project, so we put a little bit of that project in the anime. In the middle of Omoi no Kakera, there is a scene where a photo arrives in an envelope, where a damaged family photo was repaired and is returned.

Speaking of fragments of feelings, five years is a very long time, especially for children. I think everyone still remembers, but five years is an extremely long time, so while they do not forget the disaster, their feelings are emotionally distant from it. But when looking at the photos, the feelings resurface. When they resurface, both the good memories and the sad memories return together, so the complex feelings of that moment are depicted in this work. In the setting of the story, the character is revealed to have lost her mother, so the memory of the mother serves as a motivation to push them forward and move on with their lives. It is a story about taking that step forward.

Originally, it was made as a two-minute promotion, but when it was broadcast, Yuzuru Hanyu and Shizuka Arakawa commented on it, and it was also very well received by people who watched it, so in the end it was made into and broadcast as a 30-minute drama.

For the Hokuriku region destroyed by the earthquake two weeks ago, there is a long road to recovery ahead. The stage of fuku, restoration, has only just begun, but I am certain that P.A. Works and other anime studios will play a future role in the kō, starting anew, stage of reconstruction.

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