The global anime market has grown rapidly over the past decade, but according to Kadokawa’s Chief Anime Officer Daijo Kudo, things are not as straightforward as they appear. In a recent interview with Toyo Keizai, Kudo explained that while overseas revenue continues to rise, the current North American landscape dominated by Crunchyroll has changed the way Japanese studios and publishers approach international licensing.
Crunchyroll’s Growing Power
Kudo pointed out that the merger of Funimation into Crunchyroll and the weakening presence of Sentai Filmworks’ HIDIVE has created an uneven playing field. Where once multiple buyers helped push licensing fees higher, the industry now faces a market where Crunchyroll stands as the primary decision-maker. This shift has forced Japanese studios, including Kadokawa, to spend more time negotiating purchase prices and carefully considering how to maximize the value of their titles.
In some cases, if Crunchyroll does not pick up a series, predicting overseas revenue becomes increasingly difficult. To avoid financial risk, Kadokawa now plans exit strategies at the earliest stages of production to ensure titles remain profitable, even without support from the largest U.S. distributor.
The Challenge of Certain Genres
One genre Kudo highlighted as particularly challenging in the U.S. market is Boys’ Love. While the genre has strong fanbases in Japan and Asia, securing licensing revenue from North American platforms like Crunchyroll is far from guaranteed. Kadokawa’s strategy in such cases shifts toward strengthening domestic markets, focusing on Asian streaming platforms, and boosting related merchandise sales.
The Bigger Picture
Despite these challenges, Kadokawa continues to maintain good ties with Crunchyroll and Sony’s Aniplex, with Kudo even suggesting deeper collaborations could emerge in the future. Sony recently increased its investment in Kadokawa, signaling a stronger partnership aimed at expanding intellectual property globally.
At the same time, Netflix remains a significant player, often selecting only a few titles each season but investing heavily in them. This creates opportunities for other streaming services to carve out niches by picking up titles that Crunchyroll might pass on.
What This Means for Anime Fans
For audiences, these shifts mean that access to certain genres and titles may vary depending on where they live and which platforms they subscribe to. Crunchyroll’s dominance ensures a steady stream of popular titles in North America, but fans who enjoy niche series may need to turn to other platforms or even merchandise to support their favorites.
Final Thoughts
Kadokawa’s comments reveal the complexity behind the global success of anime. While streaming platforms have helped expand the reach of Japanese animation to millions of fans, the growing consolidation in the industry also means that negotiations are tighter
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