Everyone has seen anime at some point. Everyone, without exception. Even if you think, “No, I’m 60 years old, I’m too old for that,” think again. You’ve likely watched anime, perhaps titles including Arupusu no Shōjo Haiji and Majingā Zetto. Do those names not ring a bell? Maybe you’ll recognize them better as Heidi, Girl of the Alps and Tranzor Z.
Japanese animation is more influential than many might realize. It’s, in fact, a billion-dollar industry. The Japanese entertainment sector (video games, anime, and manga) exports content worth about $31 billion every year. This industry ranks just behind semiconductors ($37 billion) and steel ($33 billion). Several reasons explain this success.
Note: This is the Sakamoto Days TV show, which will be released next year. The manga is already serialized in Weekly Shōnen Jump and is definitely worth checking out.
Post-pandemic growth. COVID-19 confined many of us to our homes and prompted a considerable number of viewers to turn to anime for entertainment. In fact, experts have observed a marked growth in the industry from 2020 to now, particularly between 2021 and 2022.
According to the Anime Industry Report 2023 by the Association of Japanese Animation (AJA), “The anime industry market in 2022 reached 106.8% of the previous year, which had then been the highest on record, with a 185.5 billion yen [$1.2 billion] increase.” Between 2013 and 2022, the industry grew by 198%, which is quite significant. By 2023, it had expanded to $19.6 billion.
Going abroad. The international market has played a crucial role in the growth of the anime industry. The AJA refers to it as “the driving force”, and for good reason. Streaming services such as Netflix, HBO, Prime Video, and even Disney+ feature anime series. While Crunchyroll has long been the go-to for anime fans, platforms like Netflix have garnered a far larger audience.
In the image is Satoru Gojo, a character from the manga Jujutsu Kaisen. | Image: MAPPA
To illustrate the significance of the international market for the anime industry, you should consider the following figures. In 2013, it generated $1.8 billion. By 2019, the figure had risen to $7.8 billion. In 2023, this number reached nearly $9.8 billion. When you include related entertainment sectors such as manga and video games, the total market size expands to $31 billion.
What does this mean? This substantial growth means that the international market is essential to the anime industry, with only $60 million (0.6%) separating it from the domestic market. The local market’s larger revenue can be attributed to live entertainment, an industry Japan hopes to develop, though COVID-19 disrupted these plans.
DanDaDan is one of the most popular animes right now, known for its humor and engaging storylines. | Image: Netflix
Looking ahead. Japan ranks among the top ten economies in the world but faces significant debt, amounting to $8.5 billion. To put this into perspective, that’s approximately 130.6 times what Microsoft paid for Activision Blizzard. In the end, anime is one industry poised for exponential growth and capable of alleviating this debt.
Under the Cool Japan strategy, the Japanese government aims to transform its entertainment industry into a vital economic engine. It targets expanding its market to $131 billion, surpassing the $85 billion generated by the automotive industry. This strategy encompasses not just anime but also other aspects of Japanese culture, including gastronomy, fashion, and tourism. Overall, the goal of Cool Japan is to generate $327 billion by 2033.
Chainsaw Man is an anime that begins with a simple premise but quickly evolves into a captivating story. | Image: Espinof
A win-win situation. The rise of streaming platforms offering anime isn’t a coincidence. There’s a strong demand from the audience, and it helps attract subscribers. It’s a win-win situation for everyone involved.
Netflix is the leading platform investing heavily in the genre. It features popular titles, including Cyberpunk: Edgerunners, Hunter x Hunter, DanDaDan, Baki Hanma, Naruto, Ranma1/2, One Piece, Haikyuu!!, Blue Eye Samurai, Pluto, and Jujutsu Kaisen, among others. The platform also offers a live-action adaptation of One Piece, which has introduced the story to a wider audience.
Prime Video also has a selection of noteworthy titles, including Spy x Family, Demon Slayer: Kimetsu no Yaiba, My Hero Academia, Dragon Ball Super, and Attack on Titan. For its part, Disney+ features interesting options like Bleach, Tokyo Revengers, Sand Land: The Series, and Summer Time Rendering. Meanwhile, Max has struggled to keep up. The recent adaptation of Uzumaki started off strong with its first episode, showcasing impressive animation, but has since declined significantly.
Attack on Titan is a must-see anime. It features several plot twists that are truly surprising, and the storyline is very engaging. However, the ending has sparked some debate among fans. | Image: MAPPA
Not all a bed of roses. While the anime industry is experiencing a sort of golden age, the reality behind the scenes is quite complex. Creating anime isn’t an easy task. It requires a lot of specialized skills. There’s a notable shortage of skilled workers, which is understandable given the low salaries in the industry.
A novice animator begins their career as a “genga-man,” responsible for drawing the in-between frames that connect keyframes. In 2019, their salary was approximately $12,000 per year, according to The New York Times, citing an AJA report. This figure doesn’t account for freelancers, who may earn even less. Some report monthly earnings as low as $200. In contrast, a well-paid animator makes an average of $40,000 a year, which is significantly lower than the $65,000 to $75,000 earned by prominent animators in the U.S.
According to The Asahi Shimbun, Japan has only about 6,000 animators, and “many leave due to the poor working conditions.” The Japanese newspaper adds, “The median wage for animators is around 1,300 yen [$8.50] per hour, far below the average of 2,400 yen [$15.70] for all industries.”
Dragon Ball Daima is one of the latest anime releases and is receiving a lot of positive attention. | Image: Netflix
A structural problem. A significant structural issue within the industry impacts studios’ earnings. Citing information from the Japanese Research Institute (JRI), The Asahi Shimbun reports that “production companies [in the anime sector] received only 18 percent of domestic anime sales in 2022 and just 6 percent of overseas sales.” Most of the revenue goes to companies involved in planning, original content creation, marketing, broadcasting, and streaming.
According to Yosuke Yasui, a senior researcher at JRI, “Many companies are operating hand to mouth, leading them to accept unfavorable contract terms and trapping them in a cycle of low profits.” Additionally, the influx of young talent wanting to enter the industry allows studios to maintain operations without increasing wages.
Kaiju No. 8 has emerged as a prominent title in the Weekly Shōnen Jump magazine, and its anime adaptation has received acclaim for its impressive animation and engaging, albeit predictable, plot.
Karoshi. “Karoshi” is a Japanese term that translates to “death from overwork.” This phenomenon is alarmingly common in the anime and manga industries, where crunch periods and long workdays are standard. A notable case is that of Kentaro Miura, the creator of the manga series Berserk. He passed away at the age of 54 from acute aortic dissection attributed to stress and overwork.
Eiichiro Oda, the author of One Piece, also faced challenges in 2023. Having produced 1,130 episodes, the demands of the long-running series have taken a toll on his health. Oda revealed that he was in regular contact with his doctor, sharing his daily blood pressure readings, which were consistently high. In March 2024, as the Egghead arc reached its climax, he took the rare step of taking a three-week break.
These are just a few examples, but the reality is that one defining characteristic of the manga and anime industry is the quick turnaround times. It’s important to note that most manga chapters, which typically contain about 15-20 pages, are released on a weekly basis, just like anime episodes.
Tragically, around 10,000 people die each year in Japan due to karoshi, which accounts for one-third of the annual suicides in the country.
Solo Leveling isn’t technically a manga but a manhwa, which originates from South Korea. The anime adaptation was highly anticipated, and upon its release, it significantly increased traffic on Crunchyroll. | Image: Crunchyroll
AI. In light of the industry’s challenges (pressure for growth, rising production volumes, workforce shortages, low wages, and tight deadlines), there’s growing interest in generative AI as a potential solution to alleviate some of the burdens in animation. However, this topic isn’t without its controversies.
For instance, K&K Design, a studio in Nagoya in Japan, has integrated AI into its workflow. The company claims that processes that once took a week can now be completed in just five minutes. Additionally, Orange, a Tokyo-based company, is utilizing AI to expedite translation efforts. According to the tech news site KrAsia, only 14,000 out of the 700,000 manga titles in existence have been translated into English. The Japanese government itself is encouraging studios to adopt AI, noting that generative AI could enhance creativity in various aspects of content production.
And to conclude, one final recommendation: Be sure to watch One Piece.
Image | Dex Ezekiel
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