CES: Sony Group Deepens Investments in Booming Anime Sector

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On Monday at the annual Consumer Electronics Show in Las Vegas, Sony Group announced a shift in their business strategy, with a significant emphasis on an area related to what they’re already known for – electronics, gaming, film production (Hollywood), and music. The company hinted that it plans to depend on anime, a once-niche genre from Japan, as a substantial contributor to its future growth. Analysts are amazed by anime’s ongoing success as one of Japan’s most profitable cultural offerings.

For several years, Sony has been gradually building up its focus on anime, but it was at CES where they officially highlighted their significant plans for the industry. At this event in Las Vegas, Sony president and COO Hiroki Totoki was joined by Rahul Purini, president of Crunchyroll (Sony’s specialized streaming service for anime) and Atsuhiro Iwakami, president of Aniplex (Sony’s renowned Japanese anime studio). Both entities have experienced remarkable growth in recent times. Since Sony acquired Crunchyroll from AT&T in 2020 for $1.2 billion, its subscriber base has increased from 3 million to over 15 million as of last July.

This year, Crunchyroll, Aniplex, and Sony Pictures will team up for the release of “Demon Slayer: Kimetsu no Yaiba Infinity Castle” trilogy of films in North America and internationally. Currently, one of the most successful anime franchises globally, this series is set to wrap up its story. The latest film in the series, “Demon Slayer: Mugen Train,” was launched amidst the pandemic challenges in 2020-2021 and raked in $49.5 million in North America and a staggering $473 million worldwide – making it the highest-grossing Japanese animation ever.

Following our last release, the international audience for the Demon Slayer brand has expanded noticeably. We’re optimistic that this upcoming film will surpass its success in foreign territories, according to Iwakami speaking to The Hollywood Reporter from Tokyo before his presentation at CES. He also mentioned that there are now many more chances for Sony companies to join forces on an anime level worldwide,” Iwakami stated.

Sony’s optimism towards anime is fueled by the global increase in interest in Japanese pop culture, with anime being a significant part of this trend. The worldwide market for anime expanded more than twofold from 2013 to 2023, reaching $22 billion (approximately 3.3 trillion yen), as reported by the Association of Japanese Animations. Initially appealing primarily to niche enthusiasts, anime has now gained widespread popularity among Gen Z audiences worldwide, as observed by analysts.

According to Crunchyroll’s study, approximately four out of ten American Gen Z anime enthusiasts watch anime every week, whereas around six in ten Gen Z and Gen Alpha viewers in Brazil tune in more than once per week.

“It is not only a young audience but a highly engaged one,” says Purini. 

Every year since 2017, Crunchyroll has been hosting an awards show to honor the best in anime production. The increasing popularity of the anime industry is evident by the notable figures who attended last year’s event in Tokyo: Megan Thee Stallion, a multiple Grammy winner, Bong Joon-ho, a Korean director known for “Parasite,” the Oscar-winning duo Phil Lord and Christopher Miller from “Spider-Man: Across the Spider-Verse,” and NFL player DeMarcus Lawrence, among others.

According to a report published by investment bank Jeffries in October, it’s projected that the worldwide anime market could reach an astounding $60.1 billion by 2030. This industry plays a crucial role in Japan’s ambitious plan to generate approximately 20 trillion yen ($130 billion) from their content market by 2033, as outlined by the Japanese government.

In a conversation with THR, Sony’s president and COO Hiroki Totoki stated that anime has gained worldwide popularity and has an extremely dedicated following. Sony is determined to enhance the experience for fans by turning beloved stories into anime and distributing them globally.

Originating from Tokyo’s innovative underground scene, anime fits perfectly with the established strategy of this Japanese tech behemoth to transform from a device manufacturer into a worldwide content titan. This metamorphosis is achieved by utilizing the extensive intellectual property of its movies, TV shows, music, and games.

Last year, Sony’s CEO, Kenichiro Yoshida, stated that beloved characters and valuable intellectual property can endure for periods ranging from 30 to 100 years. He expressed a desire to invest in this area for continuous growth. In simpler terms, he wants to make long-term investments in the creation of lovable characters and valuable properties that will bring sustainable growth to Sony.

At CES, Purini declared that Crunchyroll and Aniplex are teaming up to produce an anime series inspired by Sony’s hit samurai adventure game for PlayStation, Ghost of Tsushima. Simultaneously, a movie adaptation is being developed by Sony Pictures. The forthcoming Ghost of Tsushima anime will leverage creative talents from Sony Music, PlayStation Studios, Crunchyroll, and Aniplex’s animation studios in Tokyo. Previous successful adaptations like the HBO series The Last of Us, based on popular PlayStation games, serve as a precedent for these projects.

Sony’s recent financial actions show a clear focus on the anime industry. In December, they invested $320 million to boost their ownership to 10% in Kadokawa, a major Japanese producer of manga, anime, and games like the successful Elden Ring franchise. The companies have promised to deepen their partnership and make joint ventures in gaming and content production.

Sony isn’t alone when it comes to capitalizing on anime’s increasing influence globally. Streaming giants like Netflix, Disney, and Amazon Prime Video have poured substantial resources to secure access to popular anime titles and talented creators (with Netflix reporting that roughly half of its 283 million global subscribers have watched anime). However, according to Purini, Crunchyroll is optimistic about the competitive edge Sony’s backing provides the brand in Japan, considering it as a mutual advantage for the entire industry. They view their competitors’ attempts to convert casual viewers into dedicated anime fans as a positive development overall.

“We are very bullish about the overall growth of anime and what that means for us,” he says. 

As a passionate gamer and avid anime fan, I’ve noticed that my Crunchyroll experience has leveled up significantly over the past year! Deals with Amazon Prime Video and Roku have expanded its reach to more mainstream U.S. consumers, making it easily accessible on their platforms as an individual channel. Crunchyroll strategically places its core streaming services, available in both ad-supported and subscription versions, at the heart of its offerings, with all other services revolving around them. Unlike other broad streamers that aim to cater to everyone, Crunchyroll focuses on being a one-stop destination for anime enthusiasts, offering a diverse range of gaming, merchandise, and music streaming services within its app. And let me tell you, Crunchyroll is always there, participating in and supporting anime culture’s numerous gatherings and events worldwide!

On Monday at CES, I got some exciting news as a gamer and anime fan – Crunchyroll announced a new app for reading Japanese manga! This awesome bonus is set to become available for subscribers soon.

Purini mentions that Crunchyroll Manga is going to be an outstanding online app for reading manga, featuring collections from well-known publishing houses. This gives enthusiasts unprecedented opportunities to explore the imaginative pieces that fuel our beloved anime,” translates to:

“According to Purini, Crunchyroll Manga will be a top-tier online platform for manga readers, showcasing libraries from famous publishers. It provides fans with exceptional access to innovative works that spark our favorite anime.

He notes: “There’s a special chance for us to work together, involving every company within the Sony Group, to cater to both our anime enthusiasts and creative talent.

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2025-01-07 04:55