Recent data highlights Netflix’s remarkable performance in the anime streaming sector, surpassing its direct competitors, including Crunchyroll and Hulu combined.
According to a new report, the Association of Japanese Animations (AJA) revealed that Netflix is enjoying huge revenue from anime streaming, establishing itself as the market leader.
In collaboration with Parrot Analytics, the AJA published insights indicating that the total revenue generated by anime in 2023 reached an estimated $19.8 billion.
Parrot Analytics reveals Netflix’s 38% share of anime streaming revenue (Photo: Anime streaming sector/Netflix and Hulu)
Of that total, anime streaming accounted for $5.5 billion, representing 6% of the entire global streaming revenue. North America contributed massively, with 41% of the anime streaming revenue coming from the region.
Parrot’s report also included insights into merchandising revenues and industry commentary worth exploring further.
A standout finding was that Netflix led the global anime streaming revenue with a staggering US$2.074 billion. Readers can find a detailed breakdown of the revenue contributions from various platforms below.
The issue of Netflix’s lack of royalties for anime creators is once again brought to light in a new report from the AJA, which includes 40 full members and 52 associate members.
Parrot has clarified that the data presented pertains only to select streaming services and may not accurately reflect the top 10 services generating the highest anime revenues.
Despite this, Netflix remains firmly in the lead, accounting for 38% of the global anime streaming revenue. Additionally, Netflix topped Polygon’s comprehensive survey of anime streaming popularity released earlier this year.
While Crunchyroll continues to excel in anime merchandising, having generated $1 billion from retail sales of licensed consumer products and experiences last year, it still faces stiff competition.
Crunchyroll’s long-standing presence in the anime industry has allowed it to secure the majority of titles each season. In response, other streaming services have increased their licensing fees and forged exclusive deals with anime producers.
For instance, in 2022, Disney partnered with Kodansha to develop new anime originals, including Tokyo Revengers: Christmas Showdown Arc and the upcoming Medalist.
HIDIVE and MBS announced a collaboration that will bring a selection of MBS titles exclusively to their platform, including the Winter 2025 anime series From Bureaucrat to Villainess: Dad’s Been Reincarnated!
As the new year approaches, Crunchyroll is set to release a variety of highly-anticipated anime series, such as Solo Leveling Season 2 and Zenshu, among others.
Max has entered into a deal with U-NEXT, a major Japanese streaming service, allowing for a reciprocal exchange of content, which will include anime on Max, as confirmed by The Hollywood Reporter.
Netflix, leveraging its financial resources, has developed a strong partnership with Shueisha, a publisher known for producing globally popular series.
This collaboration has led to record-breaking success with Netflix’s live-action adaptation of One Piece, as well as the upcoming remake of the series.
Additionally, recent and upcoming titles from Shueisha available on Netflix include Sakamoto Days, Blue Box, Dandadan, and Dragon Ball Daima, although the latter two are also available on Crunchyroll.
As Crunchyroll faces pressure to respond to competition, its attempts have yielded mixed results. Reports indicate that Crunchyroll is struggling to meet growth targets, and it has drawn criticism from major producers like Shogakukan, Shueisha, and Kodansha due to character portrayals and questionable revenue-sharing practices.
Competitors such as Toho are beginning to encroach on Crunchyroll’s territory through distribution rights and merchandising efforts.
Recently, due to undisclosed licensing discussions with Toho, Crunchyroll chose to reduce its promotion of Dandadan, even while streaming it alongside Netflix.
Toho’s GKIDS subsidiary has secured home video rights to Dandadan, marking the first time GKIDS has licensed a first-run anime series.
A-1 Pictures’ Solo Leveling is set to start 2025 with a striking preview for its second season ahead of its January premiere.
Although Crunchyroll’s internal decision not to promote Dandadan may have been influenced by Netflix obtaining streaming rights, the platform maintains a positive public stance regarding Netflix’s role in the anime industry.
Earlier this year, Crunchyroll’s Senior Vice President of Global Commerce, Mitchel Berger, expressed that allowing fans to sample content on a platform like Netflix benefits both the audience and the industry as a whole.
Similarly, Crunchyroll’s CEO has noted that Netflix can serve as an entry point for new fans, who may later transition to Crunchyroll for a more extensive anime experience.
Recent sublicenses from Crunchyroll to Netflix include popular titles like My Hero Academia, Jujutsu Kaisen, One Piece Film: Red, Spy x Family, Haikyu!!, and Black Clover, among others.
Crunchyroll is optimistic about expanding its audience through live-action adaptations of well-known series in partnership with Sony.
This initiative aims to adapt stories from diverse global creators, including Korean manhwa, American webcomics, and Indian narratives, along with shorter anime series.
Short anime and live-action dramas have surged in popularity in China and Japan recently. Additionally, Bandai Namco Entertainment has invested in the short anime production company Plott, which plans to launch a short anime streaming service next year.
Crunchyroll is also expanding its availability on various devices and platforms, including The Roku Channel and Comcast’s streaming boxes.
With Sony’s increased stake in Kadokawa, Crunchyroll will have access to a broader array of intellectual property for adaptation into both anime and live-action formats.
