Teikoku Databank: 8 Anime Production Companies Closed Between January-September This Year – News

Financial research company Empire Database released a report on November 5 stating that eight animation production companies have withdrawn from the market due to bankruptcy or closure. Between January and September this year. timeTwo animation production companies have gone bankrupt with debts exceeding 10 million yen (at least US$65,127), and six other companies have closed (suspended operations or dissolved). The total number of company closures is expected to increase for the third consecutive year and match the all-time high of 16 closures in 2018 (there were also eight closures/bankruptcies between January and September of that year, for a full-year total of 16). A total of eight/Bankruptcy 10 in 2023 and 10 in 2024.

Bankruptcies and closures include specialty studios acting as secondary contractors or subcontractors, but most notably animation production companies acting as “prime contractors” with the ability to directly undertake and complete productions. The company noted that about half of the production companies that have exited the market over the past five years were considered “prime contractors on general contracts.”

For example, Ekachi Epilka (animated as 180-Byō de Kimi no Mimi o Shiawase ni Dekiru ka?, Aru Asa Dummy Head Mike ni Natteita Ore-kun no Jinsei, time travel, Demon King, try again!), which handled the general contract, declared bankruptcy in July this year. 5 companies (3DCGI is available for heavenly illusion, Sakura Kakuaki ~ Hanasa Otome Ritsu ~, United!) and Yun Xin (animated as Tawawa Monday 2nd, Railway Romanesque 2, great pastor, The ice blade magician will rule the world, new gate, Sing me a love song in a low voice Episodes 1-10) all declared bankruptcy in June and December 2024 respectively.

The study cited cases where orders suddenly increased after falling due to COVID-19, and supply capacity could not keep up with demand. In order to make up for this loss, overseas production companies were outsourced, but due to the weak yen, outsourcing costs increased and profitability deteriorated.

Although the animation production industry continues to expand and overseas praise continues to increase demand, production companies are stuck in a state of “busy” and unable to pass on rising production costs to prices. Rising production and labor costs are outpacing revenue growth in the production industry, with those most affected being small and medium-sized production companies that do not have a stable revenue base such as intellectual property (IP) revenue. About 60% of prime contractors said performance “deteriorated” in fiscal 2024, according to a survey by Imperial Database.

In addition, several anime series originally scheduled to air this fall or this year have been postponed, exacerbating the industry’s manpower shortage. past anime series Delay From this year arrive 2026 include Warrior Princess and Barbarian King, witch hat studioand Come on, Nakamura!

Currently, in response to rising production costs, companies – especially those investing in production boards – are showing a willingness to flexibly adapt to rising production costs. It is worth noting that many small and medium-sized production companies participate in production through secondary contracting. Production companies without IP receive very little revenue from popular animation works. Many companies still have unstable financial conditions due to low profitability.

The report points out that there is an urgent need to take measures to promote the sustainable development of the animation production industry, such as creating a fair trading environment and training animators and other human resources.

The Japan Animation Association (AJA) is an industry organization headed by animation production companies. propose The summary of this year’s animation industry report released on October 30 shows that, In 2024, the global animation market will grow to a record high of 3,840.7 billion yen (approximately US$25.1 billion), of which the domestic market is 1,670.5 billion yen (approximately US$10.9 billion) and the overseas market is 2,170.2 billion yen (approximately US$14.1 billion).

The global animation market overall grew by 14.8% last year, the second-highest annual growth rate (after 15.3% growth in 2019). The domestic market grew by 2.8% and the overseas market grew by 26%.

2024 is the third year that overseas markets will be larger than domestic markets (after 2020 during the COVID-19 pandemic and 2023).

Estimated revenue from animation production rose 9.1% to an all-time high of 466.2 billion yen (approximately $3.025 billion). Domestic revenue increased by 6.7% to 347.4 billion yen (approximately US$2.254 billion), and overseas revenue increased by 16.6% to 118.8 billion yen (approximately US$770.6 million).

Masahiro HasegawaThe editor-in-chief of AJA’s “2025 Animation Industry Report” explained the reason for the low annual growth rate of producers’ revenue. He pointed out that there is a lag of several years in the revenue from certain sources such as overseas streaming media being reflected in producers’ revenue.

source: Imperial Database (Link 2)