Streaming Giants Battle for Anime Supremacy 

This photo taken on March 24, 2023 shows a man walking past a Netflix display during a media tour and press conference at the office of streaming giant Netflix in the Roppongi area of Tokyo. (AFP)
This photo taken on March 24, 2023 shows a man walking past a Netflix display during a media tour and press conference at the office of streaming giant Netflix in the Roppongi area of Tokyo. (AFP)
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Streaming Giants Battle for Anime Supremacy 

This photo taken on March 24, 2023 shows a man walking past a Netflix display during a media tour and press conference at the office of streaming giant Netflix in the Roppongi area of Tokyo. (AFP)
This photo taken on March 24, 2023 shows a man walking past a Netflix display during a media tour and press conference at the office of streaming giant Netflix in the Roppongi area of Tokyo. (AFP)

From sci-fi to teen biker gang adventures, streaming platforms are locked in an intensifying battle for dominance in one of the entertainment sector's hottest and most lucrative mediums: anime.

Fuelled in part by the pandemic, the popularity of the cartoons pioneered in Japan has created a goldmine for streaming giants such as Netflix, Disney+ and Amazon Prime.

The global anime market was valued at $28.6 billion in 2022, according to Grand View Research, and is forecast to double in value by 2030.

"The peak may still be ahead of us," Aya Umezu, CEO of Tokyo-based entertainment consulting firm GEM Partners, told AFP.

"We doubt the competition in anime will slow down soon."

Globally, demand for anime increased by 35 percent from 2020 to 2021, according to industry specialist service Parrot Analytics.

It is little wonder, then, that international streamers are scrambling for ways to capitalize on the surging interest.

Recent years have seen Disney+, a relative latecomer to anime, start offering fan favorites also found elsewhere like "Demon Slayer", "Spy x Family" and "Jujutsu Kaisen".

"Having them can prevent subscription cancellations -- that's how strong these IPs (intellectual properties) are," Umezu said.

Offering these titles is seen as a baseline, and far from sufficient to win the loyalty of anime fans with increasingly diverse options available.

That has meant platforms are looking to either secure exclusive rights to content or co-produce their own original anime in a bid to stand out.

Breaking open the market

Last year, Disney+ announced exclusive streaming rights to season two of smash-hit teen biker gang saga "Tokyo Revengers", part of a lucrative deal with publishing giant Kodansha.

Amazon Prime has also sought to "monopolize" blockbusters, said anime expert Tadashi Sudo, including "One Piece Film: Red" -- Japan's highest-grossing movie last year.

Netflix has proven something of an outlier in this market, going beyond snatching up existing hits to work directly with animation studios, granting them an unusual amount of creative leeway to make new stories.

Traditionally, Japanese anime emerges from "production committees" made up of publishers, TV broadcasters, toy-makers and other industry players.

These have long had a key role in broadening revenue possibilities for a series, from character merchandising to gaming.

Netflix ruffled industry feathers when it teamed up directly with Tokyo animation studio Production I.G in 2018, bypassing the system.

"Some (in the anime industry) were upset because they thought we would destroy what they had built over all these years," Production I.G president Mitsuhisa Ishikawa said.

He went as far as likening Netflix to the "Black Ships" -- the 19th-century US vessels that forced the opening of Japan after hundreds of years of trade isolation.

"The domestic way of making anime was suddenly forced open," he said.

Netflix has reaped the rewards, with its original content making it "the platform that drove the largest increase in global demand for anime in 2021", said Christofer Hamilton of US-based Parrot Analytics.

'Experimental' push

But even streaming goliaths with worldwide influence have comparatively small audience numbers in Japan.

That raises red flags for some industry players, especially publishers who want maximum exposure for anime adaptations of their manga titles and worry exclusive streaming deals would limit their reach in Japan.

There is "a clash of two opposing interests -- between platforms who want more exclusives and production committee players who want as little of a monopoly (for streaming services) as possible", said anime specialist Sudo.

Experts say this conflict often leads to Netflix original deals being based on works that are less likely to become national sensations like "Demon Slayer".

None of Netflix's original anime made their top-20 most-watched list for Japan users in 2022, according to GEM Partners senior data analyst Shota Ito.

The streamer is, however, an attractive prospect for studios with more commercially challenging projects that the traditional market could find too niche.

Early original content on Netflix reflected this, and was heavy on shows critics say evoked the hardcore sci-fi anime of a few decades ago.

Among these was "Devilman Crybaby", the tale of a "demon-boy" that featured violence and nudity galore.

"My sense is that creators wanted to do something with us that they had little chance to do under the existing system," Netflix chief anime producer Taiki Sakurai told AFP.

That initial "experimental" push has since given way to a broader roster, including comedy and even a stop-motion project starring a teddy bear.

Long-standing fans also have other dedicated services to turn to, including the huge online anime library Crunchyroll.

Netflix content director Yuji Yamano is convinced the market is far from saturated, though, and believes competition will only make "the industry even more exciting".

"Globally, I only see more room for growth in anime."



Tom Cruise, Superman and 'Avatar' Hold Keys to 2025 Box Office

FILE PHOTO: Paris 2024 Olympics - Ceremonies - Paris 2024 Closing Ceremony - Stade de France, Saint-Denis, France - August 11, 2024.  Actor Tom Cruise jumps from the roof of the Stade de France during the closing ceremony. REUTERS/Phil Noble/File Photo
FILE PHOTO: Paris 2024 Olympics - Ceremonies - Paris 2024 Closing Ceremony - Stade de France, Saint-Denis, France - August 11, 2024. Actor Tom Cruise jumps from the roof of the Stade de France during the closing ceremony. REUTERS/Phil Noble/File Photo
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Tom Cruise, Superman and 'Avatar' Hold Keys to 2025 Box Office

FILE PHOTO: Paris 2024 Olympics - Ceremonies - Paris 2024 Closing Ceremony - Stade de France, Saint-Denis, France - August 11, 2024.  Actor Tom Cruise jumps from the roof of the Stade de France during the closing ceremony. REUTERS/Phil Noble/File Photo
FILE PHOTO: Paris 2024 Olympics - Ceremonies - Paris 2024 Closing Ceremony - Stade de France, Saint-Denis, France - August 11, 2024. Actor Tom Cruise jumps from the roof of the Stade de France during the closing ceremony. REUTERS/Phil Noble/File Photo

Tom Cruise takes on what may be his final "Mission: Impossible," a new Superman will wear the red cape, and the record-setting "Avatar" sci-fi series will return to movie theaters this year.
Those films and more are giving cinema operators hope that the long recovery from the COVID-19 pandemic will continue in 2025. Five years after the start of the health crisis, moviegoing has not fully rebounded.
Box office receipts totaled $8.6 billion last year in the United States and Canada, 25% below the pre-pandemic heights of $11.4 billion in 2019, Reuters reported.
The film industry was disrupted again in 2023 when Hollywood writers and actors went on strike.
"That complex matrix of filmmaking, where everyone wants the best talent and the best actors and the best sets, it takes a long time to get that running again," said Tim Richards, founder and CEO of Europe's Vue Cinemas. "2025 is going to feel the tail end of that."
Top names in the movie business will gather at the annual CinemaCon convention in Las Vegas early next month to talk about the state of the industry.
The conference draws executives from Hollywood studios and multiplex operators such as AMC Entertainment, Cinemark and Cineworld as well as owners of single theaters in small towns.
At the Academy Awards this month, "Anora" filmmaker and best director winner Sean Baker delivered a "battle cry" for filmmakers, distributors and audiences to support theaters.
"The theater-going experience is under threat," he said, noting that the number of screens shrunk during the pandemic.
"If we don't reverse this trend, we'll be losing a vital part of our culture," Baker added.
Shawn Robbins, Director of Movie Analytics at Fandango and founder and owner of Box Office Theory, said the movie business was adjusting to "a new normal."
"Event movies are increasingly drivers of the business," Robbins said. "There's even more weight on their shoulders in terms of box office dollars."
Moviegoers still turn out for big-budget films, Robbins said, but have shown they are happy to wait to watch others at home.
"It is very common knowledge that a lot of movies will be available to stream within three to eight weeks, whereas it used to be a minimum of three months," he said.
'AVATAR' AS TIPPING POINT?
Among the big hitters coming to theaters this year are "Mission: Impossible - The Final Reckoning," a movie that may be Cruise's last appearance in the long-running action franchise. "One last time," he says in the trailer. The film will debut over the US Memorial Day weekend in May, along with Walt Disney's live-action version of animated classic "Lilo & Stitch."
Brad Pitt plays a Formula 1 driver in the June release "F1," and in July, Warner Bros will release its new "Superman" movie directed by "Guardians of the Galaxy" filmmaker James Gunn and starring David Corenswet.
From Marvel, the anti-hero team "Thunderbolts" will kick off the summer moviegoing season in early May, followed by "The Fantastic Four" in late July.
Around the November and December holidays, offerings include the second part of musical box office phenomenon "Wicked," animated sequel "Zootopia 2" and "Avatar: Fire and Ash," the third film in James Cameron's "Avatar" series. The first "Avatar" is the highest-grossing movie of all time, and the second movie ranks third.
Robbins projected 2025 would end with a slight increase in domestic box office receipts compared with last year, "maybe flirting with $9 billion." He said it is unclear when ticket sales will return to pre-pandemic levels.
Richards said he believed the new "Avatar" would kick off "an extraordinary three to five years" for cinemas.
"We're going to see (Avatar) as the tipping point," Richards said. "2026 has got an extraordinary number of great films."