As the old adage goes, "content is king" in entertainment, particularly in the online sphere. While every industry player is striving to find the elusive formula for success, some key players like Crunchyroll are strategically better positioned to dominate the content wars.

Their advantage isn't primarily rooted in groundbreaking marketing principles or cutting-edge streaming technology, although these factors certainly contribute. Rather, it's about providing compelling, engaging content that captivates and retains viewers. Both Netflix and Crunchyroll possess a unique "secret sauce" that other industry players have overlooked or failed to replicate. Notably, both services recognized early on that anime represents entertainment's "next big thing."

Anime Is The New Black For Entertainment

Now is the Time to Ride the Anime Gravy Train

It’s an anime world, and we are increasingly becoming a part of it. Once considered a supplement to regular Western cartoon programming used to fill gaps in broadcasting schedules, anime has now emerged as a dominant form of content that fans actively seek out. This demand extends beyond traditional cartoon and animation enthusiasts, capturing the interest of the broader television audiences as well. The global appetite for anime has grown so immensely that an unprecedented shift has occurred: Japan, the birthplace of anime, is no longer its largest or most voracious market.

Wall Street market analysts expect the anime market to triple in size over the next five years.

This is no random claim. By all s, anime is the titan in the entertainment industry, and it’s poised to grow larger than ever. According to a 2023 report by the Business Information Department of Dentsu, Japan’s leading advertising and public relations firm, the anime market has doubled in size over the past decade, with much of that growth driven by international demand. Even more astonishing, as Variety Magazine recently reported, citing research by Wall Street market analysts, the anime market is expected to triple in size over the next five years, becoming a global entertainment behemoth worth U.S. $16 billion.

One major contributor fueling the increased demand for anime is its accessibility. A decade ago, during anime's first resurgence in popularity, fans primarily relied on broadcaster selections, or physical media, such as videotapes and cassettes from local distributors, or more drastically, directly from Japan. Today, however, anime is readily available on numerous streaming platforms, both in Japan and internationally. The convenience of streaming allows fans to easily discover and enjoy anime without barriers. This trend was further amplified by the surge in video consumption during the COVID-19 pandemic.

Streaming services have become the preferred method for accessing anime content, particularly on an international scale. However, not all platforms are created equally. Early on, Netflix and Crunchyroll recognized the potential of anime and adapted themselves most effectively to harness its growing popularity. In fact, according to a Variety article, Netflix (42%) and Crunchyroll (40%) together controlled 82% of the total anime streaming market—a figure that has likely increased since

Netflix Still Wants Viewers To "Chill" But With Anime

Rethinking Its Marketing Strategy

If there’s any company that understands the potential of an emerging service and aggressively moves in before others catch on, it’s Netflix. After all, this is the video rental company that pivoted to streaming when most saw it as just a ing fad. When it comes to anime, however, Netflix's early attempts seemed fraught with challenges. As a major tech and media company, Netflix's focus has always been on delivering digital entertainment that audiences want. Meanwhile, anime is a distinctly Japanese art form that, at the time, remained largely unknown to most people outside Japan.

However, as Netflix observed the growing popularity of the anime it was streaming, a realization dawned within its C-suite. As a company aiming to provide people with what they want, when they want it, expanding its anime selection seemed a natural pivot, particularly for its customer base in Japan. Since then, few companies have moved as aggressively as Netflix to acquire anime content, whether through distribution agreements, creative partnerships, or even by producing anime themselves. The current surge in anime popularity, much like the rise of streaming before it, indicates that Netflix's strategic thinking is once again on the right track.

Crunchyroll Rises From Niche Player To Mainstream Anime Master

Anime Isn't Just for the Die-Hards Now

Crunchyroll, on the other hand, is the antithesis of Netflix. Originally born of otaku, built by otaku, in service of otaku worldwide, Crunchyroll's founding mission was to bridge the gap between anime and manga lovers outside Japan and the content they craved. In the pre-internet era, this endeavor was no easy feat. Despite the challenges, Crunchyroll persevered, significantly contributing to anime's popularity in the US. Unlike Netflix, Crunchyroll deeply understood anime's appeal but initially lacked the resources to "let the anime flow." However, their dedication and expertise helped pave the way for the global anime phenomenon.

That all changed when a much-needed investment allowed them to establish direct partnerships with Japanese anime studios and distributors, bringing content directly to the U.S. more easily. With an already loyal and growing customer base, Crunchyroll expanded its infrastructure to fulfill its mission. This culminated in its acquisition by Sony and subsequent merger with another Sony-owned property - Funimation. At long last, Crunchyroll had the technological and distribution network to truly let the anime flow.

Can Netflix And Crunchyroll Just Get Along?

Healthy Competition Keeps Market and Consumers Happy

While Netflix and Crunchyroll are competitors, research cited in the Variety article suggests that the market is large enough for both to continue growing without stepping on each other's toes. For instance, Netflix, with its broad appeal to general television audiences, often serves as a gateway for newcomers to anime. Conversely, Crunchyroll, with its deep otaku roots, caters to die-hard fans looking for a more immersive experience that offers the extensive catalog they once struggled to access in earlier eras.

Although Netflix and Crunchyroll may both provide the same core service, namely streaming anime, they each offer unique features tailored to different types of anime viewers, keeping their respective audiences engaged and loyal.

Sources: Dentsu, Variety

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  Crunchyroll

  founded

  May 14, 2006

  notable shows

  In/Spectre, Tower of God, Blade Runner: Black Lotus, Shenmue the Animation

  Crunchyroll is a North American-based streaming service owned by Sony that focuses largely on Japanese anime but also covers several East Asian drama series. The service is available in several countries and has a small catalog of self-created and published series, with most of its content licensed with partners overseas.

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  Netflix

  founded

  January 16, 2007

  first original series

  Lilyhammer

  Netflix is a global streaming service offering on-demand access to movies, TV shows, documentaries, and original content. Founded in 1997 as a DVD rental service, it transitioned to streaming in 2007 and now operates in over 190 countries.

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