Anime Has Exploded. Streamers Are Taking Note.

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Over the past few years, anime enthusiasts have delightfully re-emerged an old headline from 1999 in informal anime forums: “Kids Are Glued to a Violent Cartoon Show” by the Wall Street Journal, which expressed concern over the “brutality” of Dragon Ball Z while acknowledging its impressive viewership on Cartoon Network’s action block, Toonami. Jason DeMarco, one of the co-creators of Toonami, recalls this article left a bitter taste among his team, who had never received such media attention before. “We were simply thrilled to discuss the show,” he says. “They didn’t ask us any questions about the violence. We were furious.” (as a movie critic) I remember watching Dragon Ball Z as a kid and feeling excited about its unique blend of action, humor, and drama that captivated audiences, despite the controversy surrounding its violent content.

They retaliated by saying something along the lines of: “We created an advertisement where we selectively used a review, taking it out of context, and simply declared, ‘Kids can’t get enough!’

Over the past 25 years or so, anime has experienced unprecedented growth in popularity, particularly among younger generations. Following the debut of Pokémon, those born after that have access to an abundance of anime, thanks to streaming platforms. According to Parrot Analytics, the U.S. demand for anime has increased by 176% from 2019 to 2024. This surge can be attributed in part to a rise in casual viewers and newcomers. In this same timeframe, the total number of anime TV shows available has tripled. While it has traditionally appealed more to young male audiences, a recent survey suggests that anime is no longer a specialized interest.

The findings from our survey are quite persuasive. Out of 29,000 participants across seven regions (United States, United Kingdom, India, Germany, France, Brazil, and Mexico), a staggering 44% declared themselves anime enthusiasts, outranking other genres such as K-dramas and Bollywood. It’s no surprise that Generation Z (ranging from ages 13 to 28) has the highest affinity for anime, with 54% of them expressing their love for it – even surpassing popular figures like Megan Thee Stallion, Addison Rae, BTS, Bad Bunny, Pedro Pascal, the Kardashians, WWE, and the NFL. Moreover, the three age groups exhibit distinct reasons and preferences when it comes to consuming this medium. Crunchyroll’s COO, Gita Rebbapragada, stated that the survey aimed to “provide numerical evidence for what we’ve been observing qualitatively among our fans,” enhancing their existing insights derived from their streaming platform.

Despite setbacks faced by the broader entertainment industry due to Hollywood strikes, a prolonged pandemic impact, and reduced streaming investments, the popularity and earnings of Anime have persisted unabated. The Japanese industry might grapple with underpaid labor and labor challenges, but globally, anime content rakes in approximately $20 billion annually in profits. Recently, Warner Bros. Discovery has been instrumental in producing and launching various anime titles across platforms like Adult Swim, Max, Hulu, and Crunchyroll. As for the future, it remains uncertain what will happen after the spinoff. However, Crunchyroll, with its sole focus on the anime category, recently surpassed 17 million subscribers in May, demonstrating robust growth. According to Rebbapragada, “We’ve continued to grow, and I think that’s largely because anime has continued to grow.” Anime is one of the fastest-expanding sectors within entertainment.

Anime Is Now Core to Streaming

If you’re working at a streaming platform in the year 2025, it’s crucial to have an anime plan. According to DeMarco, who now holds the position of Senior Vice-President for anime, action series, and long-form content at Adult Swim and Warner Bros. Animation, a significant portion of younger streaming viewers will only consider a service if it offers some amount of anime content.

Netflix continues to make its mark in the world of anime, acquiring licenses, airing simultaneous broadcasts, and dubbing popular titles such as “Dragon Ball Daimao” and “Dandadan”. Some of Warner Bros. Discovery’s co-produced anime series like “Lazarus” and “Ninja Kamui” have managed to stand out amidst the diminishing animation offerings under David Zaslav, finding a niche on HBO Max due to their older audience appeal. At Disney, the anime library on Hulu remains substantial, with timeless favorites like “Cowboy Bebop” and “Dragon Ball” as well as newer sensations such as “Fire Force” and “Blue Lock”. In recent months, films by renowned directors like Makoto Shinkai and Masaaki Yuasa have been added to the Criterion Channel. Anime-dedicated services like Crunchyroll, which absorbed Funimation some years ago, still dominate, but smaller platforms like RetroCrush and HiDive continue to exist, along with FAST channels focusing on titles such as “Naruto”, “Hunter x Hunter”, and “Sailor Moon”. As Dave Jesteadt, president of anime film distributor GKIDS stated in February: “Streaming and digital platforms are where these films have the majority of their lifecycles.

Unlike traditional live-action shows, many popular new anime series can be found on multiple streaming platforms, a phenomenon that was scarcely imaginable just five years ago, DeMarco points out. He’s employed this approach in several of his productions, such as “Suicide Squad Isekai,” which can be streamed on Hulu and Max, along with FLCL Shoegaze and Grunge (also on Crunchyroll). Lazarus is available on Max and various international platforms. The first three episodes of the anticipated debut series, Dandadan, were initially released as a film by GKIDS in May, followed by weekly releases on both Netflix and Crunchyroll. According to DeMarco, this distribution strategy reflects the maturity of the market, as many streamers have come to understand that with anime, broad exposure is often more crucial than exclusivity. The goal is simply to make it easier for viewers to discover these shows.

The Piracy Problem

Making content easily accessible tends to discourage theft since people can legally obtain it. For quite some time, many anime titles were unavailable in the U.S., and their distribution was often illegal through fansubbing, VHS-swapping, and later linksharing. Anime culture has been marked by this piracy, with Crunchyroll starting as an illicit platform before legitimizing its operations. Nowadays, viewers generally opt for legal streaming services in exchange for a fee. Despite this shift, piracy remains a significant issue, even prompting the Japanese government to take action against pirates in recent times.

According to Rebbapragada, piracy is prevalent across many communities, but there’s an unusual level of consumption of anime and manga in these groups. For instance, the largest anime-piracy site, HiAnime, recorded a staggering 364 million monthly visits last October, significantly more than Disney+ managed in the same month (21 million more, to be precise). Katerina Naddaf, a senior analyst with Parrot Analytics who’s studied the streaming habits of anime fans and whose models take piracy into account, states that anime is excessively popular. She explains this trend often occurs when content isn’t readily available for streaming. Additionally, it might also be due to timing; by the time a platform obtains the license for a particular title, many viewers are already eager to watch it before it becomes officially available.

Packaging the Product

There persists a misconception that anime can be simplified as belonging to a single genre or group, such as being labeled “violent cartoons” or associated with Pokémon. In earlier times, anime enthusiasts faced the challenge of disproving the notion that it was exclusively for boys. However, as per Crunchyroll’s survey, 44% of teen anime fans identify as girls today. Furthermore, a significant portion (59%) of U.S. fans express a desire for more racial diversity among main characters, while 44% seek stronger female leads and 16% advocate for increased LGBTQ+ representation. Yet, the majority of anime produced are adaptations of pre-existing intellectual properties targeting the young male demographic, making it challenging to cater to these diverse demands.

For broadcasters, sharing unique content in an authentic manner on various platforms can pose challenges. Launching a fresh series might involve discussions with the creative teams, studio collaborators, U.S. streaming service, and Japanese distribution partners or competitors. Subsequently, decisions need to be made regarding when and how the show should be translated or adapted for local audiences. DeMarco uses the example of “Lazarus” as a difficult experience: Broadcast edits were necessary after the initial stream due to the Harding test for potentially harmful flashing lights and photosensitive content. Some viewers perceived these changes as different versions of the show being distributed, leading to unauthorized copying. DeMarco remarks, “It didn’t work out well for us. We found a balance now, but it involves a lot of experimentation.

On your platform, managing anime is a unique challenge compared to many popular streamers like Netflix, who often treat it as a secondary category and offer limited additional efforts. However, during special events such as “Ani-May” (observed by Plex, Pluto TV, Crunchyroll, among others), they may step up their game. Notably, Crunchyroll distinguishes itself by dedicating its entire website to promoting not just streaming anime shows, but an entire lifestyle centered around anime appreciation. This is achieved through an online store filled with games, merchandise, collectors’ Blu-rays, and other physical media. Similarly, HiDive, owned by AMC Networks and a rival of Crunchyroll, promotes this lifestyle via its Sentai Filmworks store. Both platforms aim to cash in on findings from a study conducted by Crunchyroll and NRG, which revealed that 88% of teen fans view anime not just as enjoyable shows but as an integral part of their identity. According to Naddaf, these fans tend to maintain deep engagement with a wide variety of anime titles, demonstrating a remarkably loyal fan base.

Hits Are Increasingly International

1 Way: The issues surrounding piracy and the curiosity about who the anime enthusiasts will be in 2025, along with their preferences, highlight the global reach of the anime market. As Naddaf points out, accessibility has been a significant factor driving the sector’s growth, as it is recognized that while a series may initially cater to Japanese audiences, it can potentially achieve even greater success abroad. Similarly, Rebbapragada emphasizes that Crunchyroll aims to create anime content that resonates with the diverse markets they serve.

In simpler terms, “regionally relevant” refers to content that resonates with a specific geographical area due to cultural factors or historical reasons. At WBD (Warner Bros. Discovery), DeMarco concentrates on international collaborations that could potentially thrive in both markets, primarily focusing on the Western region since that’s where WBD operates. On the other hand, Crunchyroll’s recent soccer anime, “Blue Lock,” gained popularity in Latin America and parts of Europe, regions known for their passionate love for football rather than American football. Similarly, the older title “Death Note” is quite popular in India; Rebbapragada attributes this to a mix of nostalgia from earlier access and themes that culturally resonate.

Sometimes, a mix of local appeal and audience engagement can result in a massive success. For instance, one of the most popular new animes from last year, Solo Leveling, was based on a Korean webtoon and featured narrative arcs and a concept – the main character has to increase his stats as a monster hunter, reminiscent of role-playing games. The “faulty hero” motif, which is often well-received, was indeed present, but there seemed to be an additional aspect: “For younger viewers,” explains Rebbapragada, “much of their non-anime time is dedicated to gaming.

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2025-06-19 22:56