Anime, the Japanese animation art form, has come a long way in the past few decades. Fans who once had little recourse but bootlegs and piracy to watch their favorite shows are now part of a global community, and a $20 billion market, that’s even more robust internationally than it is in Japan.
A major player in this market is Crunchyroll, the Sony-owned and anime-focused subscription streaming platform, which has long been a go-to destination for watching Japanese animation Stateside. It’s also become a rare success story amid media’s great streaming recession, with a clearly defined and diversified — and profitable — business model that serves a passionate and still-growing audience.
“If anime is a niche, it’s a gigantic niche. We have research that shows there’s about 800 million interested fans globally outside of Japan and China,” Crunchyroll president Rahul Purini explains on the latest episode of PvNew‘s “Strictly Business” podcast, which dives deep into Crunchyroll’s strategy and flywheel.
Listen to the podcast here:
Purini has overseen robust expansion of Crunchyroll into new markets and opportunities since taking the reins in 2022, after Sony acquired the company from AT&T for $1.18 billion the previous year. Sony also merged Crunchyroll with former rival anime streaming service Funimation(which Sony had bought in 2019). Crunchyroll also has theatrical and live events businesses under its umbrella; the latest “Demon Slayer” anime film will hit U.S. theaters this week via Crunchyroll and Sony Pictures distribution, and the company’s annual Anime Awards ceremony will be held in Tokyo for the second year running on March 2.
“Having this mix of touchpoints with fans has been a strategic priority,” Purini said on the podcast. “It has helped us address some of our retention and churn goals, and continues to allow us to expand our reach with fans.”
Indeed, Goldman Sachs last year estimated Crunchyroll will account for 36% of all profit in the Sony Pictures Entertainment segment, encompassing the conglomerate’s film and TV content businesses, by 2028. Purini wouldn’t comment on exact numbers, but he confirmed the service is profitable and emphasized there’s still room to grow even as more “general entertainment” companies move into the anime space.
“We think it’s good for the anime community that these large services have anime content and make it available to large audiences,” Purini said. “I think those fans that want a deeper experience will then come to Crunchyroll.”
“Strictly Business” isPvNew’s weekly podcast featuring conversations with industry leaders about the business of media and entertainment.(Please click here to subscribe to our free newsletter.)New episodes debut every Wednesday and can be downloaded at Apple Podcasts, Amazon Music, Spotify, Google Play, SoundCloud and more.
