Anime Production Market Decreased for The First Time in 10 Years, Deficit settlement reached 40% record high – Teitoku Databank

Teikoku Databank, a financial research firm in Japan published a report via their website about the 2021 report on the production market of Anime in Japan.

Trends in overseas transactions
Pie Graph: Trends in overseas transactions on Anime production | Image taken from

The report noted that the anime industry revenue amounted to 251.081 billion yen based on the revenue from 300 companies. It is 1.8% lower than the 2019’s record high of 255.7 billion yen. This is the first time that the anime production market decreased in 10 years with a 2% year-on-year decreased, deficit settlement reached 40%, record high.

Animation production market transition
Bar Graph: Animation production market transition | Image taken from

According to the Association of Japanese Animations, the number of TV animation productions in 2019 was 314, decreasing for the third consecutive year. The number of domestic TV animation titles continues to decrease amid increasing overseas demand, and the production industry, which has been supported by the increase in demand accompanying the increase in the number of productions, has reached a major turning point. Due to the influence of the new coronavirus, many production companies suffered delays in production schedules for movies and animations scheduled to be released during the period, and many companies suffered a decrease in sales compared to the previous year. In addition, the labor costs, investment burden on the latest equipment, etc., and the increase in costs due to the increase in outsourcing volume, which have been carried out so far, continue to be a factor that puts pressure on profits at many production companies.

Average sales trends on anime production | Image taken from

In an interview from Anime News Network, Teitoku Databank explained the adjustments on some of the financial results based on a few factors some of the revisions of the surveyed companies or they provided more details to their 2019 data after initial publication, or the said financial research firm was able to find previously unknown numbers from 2019 once the 2020 data came out.

2020 Performance Trends (Specialized Studio)
2020 Performance Trends (Specialized Studio) | Image taken from

According to the report, overseas video streaming platforms such as Netflix (US), Tencent, and Bilibili (China) have been increasing their interest on anime production companies in Japan, and in addition to making direct contracts and transactions such as exclusive distribution and providing capital. As the popularity of Japanese Anime grows internationally, the number of cases of dealing with overseas video platforms and production companies is increasing. Of the 300 animation production companies, 68 companies were found to have transactions with overseas companies through outsourcing or production contracts, accounting for more than 20% of the total.

Editor’s Note:

The market size of the animation production industry (based on business sales) in 2020 (Financial results for the January-December period) was 251,081 million yen, 1.8% lower than the record high of 2019 (255.7 billion yen). .. The average sales per production company was 833 million yen. It had been expanding for three consecutive years from 2017 to 2019, but after coming here, it started to decrease from the previous year, and the increasing trend stopped.

The “primary contract / gross contract” was 1,695 million yen, which was about 20 million yen higher than the previous year (1,675 million yen). Although it has increased for the fourth consecutive year, the rate of increase is the smallest in the past four years. “Sales increase” was 31.6% and “Sales decrease” was 48.2%, and the rate of decrease in sales increased significantly from last year (26.3%), the second highest level ever. In terms of profit and loss, the “deficit” ratio is the fourth highest level after 2017 (32.2%).

At “specialized studios” that are involved in animation production as subcontractors, average sales in 2020 were 308 million yen, a decrease of about 6 million yen from the previous year (314 million yen). “Sales increase” was 31.7% and “Sales decrease” was 48.9%, and the rate of decrease in sales increased significantly from last year (24.9%), the highest in the last 10 years. In terms of profit and loss, more than 70% of specialized studios were negatively affected, and the percentage of “deficits” was the highest ever.

Animation Production Company – Among the companies engaged in animation production, “general production company / gross contractor (primary contractor / gross contractor)” who has the ability to directly outsource and complete production, and script, direction, original picture, video, CG , Background art, special effects, photography, editing, and other specialized fields (specialized studios)

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