Anime_ind_rpt2018_summary_en

Anime Industry Report 2018 Summary  Hiromichi Masuda Authors  Tadashi Sudo Kazuo Rikukawa Anime Industry Researcher Naofumi Ito Auditor, Video Market Corporation Yuji Mori Yasuo Kameyama Journalist President, Character Databank, Ltd. Director/Secretary-General, Character Brand Licensing Association Department Director, Content Strategic Planning Office Content Division, ASATSU-DK INC. President, Senior Director, Dentsu Consulting Inc. Specially Appointed Professor, Graduate School of Asia University Ph.D. Student, Graduate School of Media Design, Keio University senior director of C i P committee Hiromichi Masuda Editor  (editor in chief) Anime Industry Researcher Masahiro Hasegawa Auditor, Video Market Corporation Producer, HUMANMEDIA Inc. Mitsuru Soda Cooperation in Material Research  JuGeMu Co., Ltd. Hiroko Uehara Cooperation in Editing  Megumi Onouchi Part-time Lecturer , Japan Electronics College Part-time Lecturer , Shobi University Graduate School President, HUMANMEDIA Inc. January, 2019 The Association of Japanese Animations

The market recorded 108.0% growth finally crossing the 2 trillion yen mar The Japanese animation market, which hit bottom in 2009 and picked up in 2010, recorded growth for 7 consecutive year 110% on a year-by-year basis. Videogram sales shrunk considerably (84.9%), and TV (98.8%), Merchandising (97.1%), a Entertainment (129.5%) and Overseas (131.6%) expanded. Movie enjoyed strong sales thanks to the blockbuster hit movi The Market Size Finally Surpassed 2 Trillion Yen  The year 2017 was the first year* that the Japanese animation market crossed the 2 trillion yen mark (Fig.1). The market recorded 2 trillion 152.7 billion yen in sales, growing for 8 consecutive years, with 5 consecutive years of record-breaking high sales. To break it down by genre, TV (100.9%), Internet Distribution (113%) and Live Entertainment (116%) expanded while five genres (i.e. Movie (61.7%), Videogram (97.1%), Merchandising (93.0%), Music (91.6%) and Pachinko (95.8%)) decreased. Overseas (129.6%) showed strong growth, making up for the decline of those five genres. The ebb and flow of respective genres have become clear compared to when this report was first issued 10 years ago. Compared to the survey 10 years ago, TV recorded 115.7% growth, reaching its peak in 2015 and remaining steady since then. Movie (193.4%) expanded year by year, Videogram (59.9%) declined unmistakably, and Internet Distribution (551.0%) continued to rise dramatically. Merchandising (87.6%) declined gradually after reaching its peak in 2014, however, it could be assumed that the genre would have grown substantially if the sales arising from businesses not calculated in this survey, such as application games and other digital merchandise, had been covered (note: physical games are already covered in Merchandising). Music (99.2%) reached its peak in 2009 and has remained steady since then. Considering the performance of Videogram, Music, which is a part of packaged products businesses, has been doing miraculously well. Overseas (226.6%) shrunk substantially after reaching its first peak in the mid 2000s. It has surged again since 2015, becoming today’s largest genre. Pachinko (175.9%), a new genre from 9 years ago, reached its peak in 2014 and has declined gradually since then. Live Entertainment (251%), also a new genre from 4 years ago, showed considerable growth. *due to error in the 2016 survey [Figure 1] The Japanese Animation Market in a Broad Sense (Yen in billions)  2200 2152.7 2000 1992.4 1800 1600 1821.5 1400 1200 1303.2 1349.9 1313.9 1379.8 1313.1 1629.9 1220.8 1254.2 1470.9 1329.5 1333.3 1094.8 1118.7 1000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Based on questionnaires conducted by the Association Japanese Animations and other publicly available statistics    Topics in the Japanese Animation Industry from 2016 to 2017  Overseas Market Size Close to Domestic Market Size   As seen in the comparison between the domestic market size and overseas market size (Fig.2), the overseas market’s

h and the highest sales in 2017,  rk driven by overseas sales.  rs and reported its highest sales for the fourth consecutive year. The market size finally exceeded 2 trillion yen, which was and Pachinko (95.8%) also decreased. Meanwhile, Movie (141.4%), Music (110.5%), Internet Distribution (109.4%), Live ie “Your Name.” Among those, Overseas, which recorded the largest sales, especially stood out. sharp rise since 2015 almost overtook the domestic market, while the domestic market, reaching its peak in 2014, has declined for three consecutive years due to the decline seen in major genres, such as Merchandising and Pachinko. If the sales arising from application games and other digital merchandise not covered in this survey (as mentioned in the former paragraph) were added, the domestic market would likely show an increase. But just with the current figures, it is hard to deny that the Japanese market relies on the sales in the overseas market. Substantial growth in the overseas market which covers the decline in the domestic market is fully welcomed. Yet, it is frightening that Japan greatly relies on the overseas market. There are several risks to be concerned over,such as a sudden change of business environment in China due to politics (such as the so-called “China Risk”) or the distribution environment occupied by US major platforms. Actually, the animation industry (i.e. animation studios and other related businesses) gains no upliftment despite the record-breaking sales in the market. This may be because animation studios and the like have few chances to obtain the benefits from sales arising from Internet distribution and application games, which are thought to occupy a large part of overseas sales. It is desirable both for the market and the industry that the domestic market, which is now in transition, stabilizes soon. [Figure 2] The Domestic and Overseas Revenues of Japanese Animation Industry in a Broad Sense (Yen in billions)  11,886 13,034 12,382 12,248 Domestic Overseas 10,626 10,925 11,579 8,295 8,749 9,948 9,661 9,998 10,264 10,000 7,223 6,975 7,381 7,817 7,676 5,000 3,725 4,212 4,827 5,215 5,204 5,833 4,390 4,137 2,544 2,867 2,669 2,408 2,823 3,265 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Based on questionnaires conducted by the Association Japanese Animations  〈The Market of Application Games Originating from Animation〉  As mentioned last year, the collaboration and synergy between animation and game industries are big themes for future animation businesses. Aniplex, which made a big breakthrough from 2016 to 2017, predicted the arrival of a new window for the animation industry: a genre of application games originating from animations (or animations originating from application games). It is estimated that the market has already grown to a size that is hard to ignore, yet there is no concrete data at this moment to confirm it. Some say the market size has reached hundreds of billions of yen both in domestic and overseas markets. Actually, it is not difficult for the animation industry to estimate and reflect the sales of application games based on animation works in the market data, but is hard to estimate the sales of animations originated from application games. At this moment it is best to wait for the release of the sales data calculated by the

game industry or the related trade press to count the number of games turned into animation works from the data. <Change in Theatrical Animation Trends>  The year 2016 will be remembered as the year movies changed. Thanks to the success of “Shin Godzilla”, “Your Name.”, and “In This Corner of the World” (release date order), manga, anime and special effects, the genres which used to be categorized as “subculture,”emerged prominently. They were no longer “sub”. As seen in Fig. 2, it is obvious that theatrical animations have increased their presence since the 2000s; however, the phenomenon was more prominent in 2016. (The year 2001 stood out due to the release of “Spirited Away”.) Theatrical animations and special effects movies, which were sometimes considered less important, came to be acclaimed. Actually, those three works received 91% of the major domestic film awards: the Japan Academy Awards, Kinema Junpo Best 10, Blue Ribbon Awards* and Mainichi Film Awards for Best Picture, Best Director and Best Screenplay* (*no Best Screenplay for Blue Ribbon Awards). The works also occupied 80% of the awards for staff. It iss indeed a notable feat. Animation and special effects, which used to be considered “subculture,” became recognized as mainstream in film culture in 2016. <Animation Production Minutes and Reform of Working Practices >  In 2017, the total production minutes of TV animation, the staple of the Japanese animation industry, recorded 116,409 minutes, crossing the 110 thousand min. mark for 5 consecutive years (Fig. 3). The figures, which were almost the same for five years, did not include production minutes of original animations exclusively for Internet platforms, such as Netflix, though there were not that many animations for them. Meanwhile, the production minutes of theatrical animations has remained mostly stable for 3 years in spite of the shift to theatrical animations seen after the changeover to terrestrial digital broadcasting. Accordingly, it seems the total production minutes of Japanese animation centering on TV animation did not grow dramatically (the growth of short animations has seemingly slowed down). Under such circumstances, the animation industry finds itself in a situation where it is forced to improve productivity due to the “Reform of Working Practices” now promoted by the Japanese government at a rapid pace. Respective studios must cut the production time while maintaining the current quality level, and the only way left for them to do so is by means of digitalization in the production methods. “Reform of Working Practices” means digitalization. The Japanese animation industry will be able to move to the next stage only when it achieves digitalization. [Figure 3] Production Minutes of TV Animations  140,000 136,407 120,000 100,000 124,648 105,070112,169119,962115,533115,805116,409 95,098 80,000 92,724 106,335109,459 110,046107,919 60,000 98,687 90,445 40,000 20,000 75,890 85,439 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Based on a survey conducted by the Association of Japanese Animations  The share of animations for adults (i.e. late-night anime) took over the share of kids/family animations in 2015, and it seems the trend has almost stabilized(Fig.4). Animations for adults emerged in Japan ahead of any other country and now only Japanese animations can truly fulfill the needs of adult animation fans now gradually increasing worldwide. In that respect, the Japanese animation industry should realize that it has a great advantage. Previously, Japanese

animations for adults were just dominating illegal video hosting sites. There was no TV broadcasting time for those animations, while the videogram market had already collapsed by then. But the situation changed three or four years ago. They have become a source of business being monetized on the Internet. Animations for adults were pushed to the front from the tail end. They have great potential and are the future of Japanese animation. On the other hand, the downward trend of kids/family animations should be concerning. The decline is especially noticeable in newly produced animations. The production minutes of new kids/family animations were 36,337 min. in 2001, 14,388 min. in 2016 and finally 9,790 in 2017, sinking below 10 thousand min. In the genre of kids/family animations, long-lasting works such as Sazae-san and Doraemon are the main productions; therefore, the industry needs to work on many more new kids/family animations since the chances to become a long-running program are very limited. One basic factor of the downward trend is the declining birthrate in Japan. Another is the weakening power of TV as the top media. The time is right for the arrival of a mega-hit kids/family animation from an Internet platform.   [Figure 4] Production Minutes of Kids/Family (daytime) and Adult (late night) (min.)  80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 66,840 68,625 76,234 75,426 67,752 65,995 77,326 70,222 62,724 58,342 55,782 53,338 62,282 61,694 62,094 54,733 50,775 53,757 Daytime 16,814 16,490 23,261 38,583 43,464 59,081 54,426 47,323 49,577 34,663 41,761 42,788 50,476 57,868 60,800 65,030 62,652 Late night 8,120 Calculated by the Association of Japanese Animations based on publicly available statistics (including Perfect Data)  Note 1: Animations broadcast after 21:00 on TOKYO MX, BS 11, etc. are counted as late night anime.  <Increasing Production Costs>  Animation production costs are on a rising trend, which was also confirmed in the responses from animation studios to a questionnaire conducted by the Association of Japanese Animations. “As the number of programs produced rises, so do production costs and sponsors’ budgets.” “Over the past few years, high quality deserving of the budget has been required in animation production, so the rise in production costs was gradually accepted.” “Unit production costs tend to be raised thanks to newcomers from other industries.” Those were the voices heard from some respondents. One of the main reasons for the increase in production costs is attributed to the fact that it is impossible to match the required quality with recent production costs. In other words, there is a strong demand for higher quality of animations. It is also evidence of growing understanding for the situation. Yet some animation studios which fail to match the required quality may face the risk of failure if they are late to improve productivity under the pressure of the Reform of Working Practices as aforementioned. On the other hand, some say the production costs of certain works are pushed up due to the entry of new players, including domestic game companies, Netflix, Amazon and Chinese businesses. But the production costs for those businesses are presumably on a whole different scale. At any rate, the cheap production costs were one main reason for the strong competence of Japanese animations in the overseas market. It was markedly inexpensive judging from the market level. It is a crucial point for Japanese animations to maintain their competence even in the trend of production cost increases.

Trends in Japanese Anim The upper part shows Japanese animation market trends in a broad sense (i.e. market size based on estimated revenues in animat market size based on the estimated revenues of all domestic commercial animation studios). It’s obvious that the animation mark character merchandising have significant leverage effects. Japanese animation market trends in a broad sense (i.e. market size based on estim 2,200billion yen 1,303billion 1,350billion 1,314billion 1,380billion 1,313billion 1,33 2,000billion yen 1,800billion yen 1,095billion 1,119billion 1,221billion 521.5 520.4 439.0 152.8 1,254billion 122.6 1,600billion yen 12.0 26.1 26.3 286.7 1,400billion yen 372.5 421.2 482.7 413.7 166.5 1,200billion yen 23.5 504.9 530.5 597.4 27.0 254.4 29.7 1,000billion yen 13.8 9.1 461.7 536.4 30.7 627.4 800billion yen 435.0 433.7 600billion yen 559.7 400billion yen 0.2 1.0 200billion yen 129.4 117.6 1.8 4.1 8.4 9.8 10.2 12.3 14.9 103.1 138.8 135.8 127.8 111.3 105.2 108.5 billion0 yen 19.8 19.6 124.1 116.5 38.0 17.8 28.4 21.2 33.8 29.9 33.8 110.0 104.1 100.3 92.4 94.6 95.5 89.5 Trends in Japanese animation market in a limited sense (i.e. market size based o 250billion yen 223billion 208billion 212billion include pachinko and the like 17.3 200billion yen 54.7 187billion include pachinko and the like 181billion 53.6 0 31.2 26.0 12.4 inclu0de pachinko and the l0ike 7.5 includ0e pachinko and the like 3.1 149billion 15 150billion yen 137billion 141billion 31.3 26.8 24.8 146billion 7.2 2.5 8.3 11.3 29 2.1 35.4 3.1 3.3 11.7 17.2 34.5 2.1 30.7 36.3 4.5 3.4 0 0 include pachinko and the lik4e.1 26.0 include pachinko and the like 15.3 3.7 4.0 16.4 22.4 25.3 27.4 25.2 100billion yen 2.4 1.6 29.2 1.0 37.3 2.5 2.6 3.1 21.6 47.2 25.4 0.5 34.9 30.1 21.8 17.9 0.1 0.3 27.7 18.6 35.8 22.8 8.8 43.2 33.5 18.4 16.9 18.0 31.0 50billion yen 6.8 45.9 47.8 58.4 50.0 45.9 36.4 37.2 billion0 yen

mation Market (2018 version)  ion and animation-related product markets). The lower part shows Japanese animation market trends in a more limited sense (i.e. ket in a broad sense is overwhelmingly larger than in a limited sense. This is because the animation-related businesses including mated revenues in animation and animation‐related markets) 2002 – 2017   1,822billion 1,992billion 2,153billion Definition of each item(end‐user basis) 47.5 52.9 61.5 1) TV: domestic  TV animation revenues  2) Movie: domestic theatrical  animation box office revenues   294.1 281.8 268.7 3)  Video:  domestic  videogram  animation  revenues  (DVD,  etc.  media)  30billion 1,333billion 1,471billion 1,630billion 767.6 994.8 4) Internet Distribution:  domestic online animation revenues   5) Merchandising:  domestic  animation‐related  merchandise  202.6 227.2 24.5 31.1 583.3 revenues 242.7 298.1 6) Music: domestic animation‐related  music revenues  266.9 240.8 7) Overseas:  overseas Japanese animation revenues (movie,  24.5 23.0 282.3 326.5 TV,  videogram,  MD, etc.)  24.6 23.7 8) Pachinko and Pachinko‐slot  machine: estimated  shipment  594.3 573.2 value of animation character‐themed  Pachinko and Pachinko‐ 598.5 655.2 slot  machine  machines. 16.0 27.2 9) Live Entertainment:  animation‐related  live‐performance,  106.7 105.9 34.0 40.8 event, exhibition,  and cafe revenues (Note 4)  115.3 102.1 28.5 40.9 25.8 28.5 26.1 Note 1: Domestic TV animation revenues were calculated  based  90.0 95.1 47.0 41.7 on the following  formula:  (the sum of commercial  TV broadcast  102.0 110.7 579.4 562.7 523.2 stations’ revenues and NHK’s broadcast  revenues) x (the ratio of  animation program to overall program broadcast  minutes) +  43.7 47.8 54.0 (revenue  of animation  channels)  92.8 78.8 76.5 Note 2: Pachinko and Pachinko‐slot  machine with animation  47.7 66.4 41.0 character  values were estimated based on their percentage of  107.2 105.9 106.9 total Pachinko and Pachinko‐slot  machine shipments.   Note 3: The survey for Pachinko and Pachinko‐slot  machine  started  from  2008.  Note  4: The survey  for  Live Entertainment  started  from  2013.  The amount is the sum of the revenues of the following:  anime  song/voice actor appearances,  events, 2.5D musicals,  museums,  exhibitions,  cafés.  Note  5: The revenues  for  Merchandising  from  2007 to 2013 were  recalculated  in 2014.   Based on questionnaires conducted by the Association of Japanese Animations and other publicly available statistics on the estimated revenues of all domestic commercial animation studios 2002 – 2017 )  53billion 164billion 183billion 185billion 198billion 227billion 241billion Definition of each item  (animation studio basis)  8.5 5.0 9.1 10.8 11.1 18.4 14.2 9.7 10.9 1.2 1.6 2.6 2.6 3.1 1) TV:  revenue from  TV animation  production  and  16.0 14.4 11.6 broadcasting  right fees  3.1 16.9 14.2 13.9 13.3 13.4 2) Movie: revenue from production and profit distribution  of  24.4 2.9 3.1 19.5 theatrical  animations 4.0 26.7 26.5 34.9 45.9 52.4 3) Video: revenue from production and profit distribution  of  16.2 8.5 3.0 3.3 animation  videograms 15.3 6.8 15.5 26.6 3.6 3.3 4) Internet Distribution:  revenue from the Internet  15.3 10.2 25.8 30.4 34.5 distribution  and profit distribution  related to animation  56.0 20.7 24.8 16.1 11.0 content 22.6 14.5 12.0 13.6 5) Merchandising:  revenue from character  licensing,  61.6 67.4 23.1 12.5 11.7 advertisement,  promotion, events etc. related to animation  61.7 25.2 29.3 content 60.5 6)  Music:  revenue from  music  related  to animation  content 7) Overseas:  revenue from overseas markets including license  fees  related  to animation  content 8) Pachinko and the like: revenue from animation  production  and profit distribution  for Pachinko and Pachinko‐slot  machines  9) Others: revenue from services/businesses  other than above 65.7 68.9 Based on questionnaires conducted by the Association of Japanese Animations and statistics released to public.

Trends in Japanese Animat As the overseas market approaches 1 trillion yen, the distrib Production Minutes of TV Animations (2000-2017) Box Office Revenue of Theatric ■Production Minutes of TV Animation ■Box Office Revenue *All theatrical animations released via ordinary and independent d *The production minutes of TV animations  in 2011 increased as the result of recalculation. Revenue is still solid despite the slump from Both production minutes and production costs increased. The box office revenue of theatrical animations in 2017 w The production minutes of TV animations in 2017 were 116,409 minutes, remaining almost the previous year and the lowest it has been in the last five ye same for 5 consecutive years. The production minutes of original animations exclusively for as the genre maintaining recent levels since the box office Internet platforms (Netflix, etc.) are not covered in these statistics. However, those works are not billion yen without Your Name. Among the top 10 Japanes many. The production minutes of theatrical animations have remained almost the same for 3 years. The two long-running series Detective Conan and Do Accordingly, overall production minutes of Japanese animations have stayed almost the same. It is occupying the 1st and 2nd places in the ranking. Furtherm necessary to discuss whether the current production minutes are the limitation of the market animations performed solidly. Sword Art Online achieved demands or the limitation of production capacity. In terms of production costs, they are pushed up Japan but also overseas. The theatrical animation mark significantly due to the demand for higher quality as well as emergence of new players, including momentum as well as the increase of works released. domestic game companies, Netflix, Amazon, and Chinese businesses. (billion yen) 150,000 60.0 120,000 50.0 90,000 40.0 60,000 30.0 20.0 30,000 10.0 0 0.0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 2017 00 01 02 03 04 05 06 07 08 09 Source: The Association of Japanese Animations, based on the data by Mo Based on a survey conducted by the Association of Japanese Animations Bukatsushinsha(Data  edited by Mindbase Inc. from 2000 to 2008 and  by Data & Topics of Japanese Animation Industry 2018 TV Animation programs (1963-2017) A 350 * A (t3it0le0) The number of TV programs decreased, reflecting the changing v 250 schemes of broadcasters. 200 T 150 The record in 2017 was a little surprising. A total of 340 TV animation programs were 100 broadcast, decreasing by 4.5% over the previous year (356 programs). The figure was Th also lower than that in 2015 (341 programs). Breaking it down even further, among ye those 340 programs were 230 new works (271 in 2016) and 110 continuing works (90 Th in 2016). The decrease of new works was attributed to the fact that the boom of short re animation production in 2016 settled down while the increase of continuing programs bl was because kids/family animation newly produced in 2016 were broadcast of continuously. The time slots for daytime animations decreased (due to the suspension lo of 5:00 p.m. animation slots on Sundays on MBS and TBS); however, more animation Yo programs originally broadcast during daytime were moved to late-night slots. Also, es NHK gradually focused on animation works for young adults. Thus broadcasters’ It schemes for animations are changing. Under such circumstances, the balance between tr new and continuing animation programs fluctuates year after year. (m 50 0 63 ● 65 ● ● ● ● 70 ● ● ● ● 75 ● ● ● ● 80 ● ● ● ● 85 ● ● ● ● 90 ● ● ● ● 95 ● ● ● ● 00 ● ● ● ● 05 ● ● ● ● 10 ● ● ● ● 15 16 17 Based on a survey conducted by the Association of Japanese Animations

tion Market (2018 version)  bution market exceeds the theatrical market even in Japan.  cal Animations (2000-2017) The Number of Theatrical Animation Works and the Production Minutes distribution routes are included. (2000-2017) m the loss of Your Name. Both the production minutes and the number of titles have stayed high. In 2017, 84 theatrical animations were produced, an increase by 3 works over the previous year. The genre was 41 billion yen, decreasing by 38% over the has still remained high since the peak at 86 works in 2015. In terms of the production minutes, they grew ears. The figure, however, could be interpreted threefold in the last 15 years. The minutes which were just around 2,000 in early 2000s reached 6,064 in e in 2016 (66.4 billion yen) would be only 41.4 2015, 6,097 in 2016, and 6,157 in 2017. One reason for the steadiness would be the increasing interest of film se works, 5 theatrical animations were ranked. distributors who consider theatrical animations profitable even in small-scale businesses. Another would be high expectations that another blockbuster would arrive following the success of Your Name. Plus, there are oraemon showed the presence of animation, more animation series which used to be broadcast on TV or were released in the form of OVAs that are now more, theatrical animations based on late night being theatrically released as trilogies or hexalogies. Theatrical animations have the aspect of new revenue d a substantial level of performance not only in sources which complement the loss of videograms. ket will continue to stay strong thanks to the (minute) (title) 9 10 11 12 13 14 15 16 17 6,000 otion Picture Producers Association of Japan/Kinema  Jumpo/ 100 y the Association of Japanese Animations from 2009 to 2017)  90 5,000 80 4,000 70 60 3,000 6,046 6,097 6,157 50 2,000 4,782 4,764 40 1,000 3,739 4,000 4,713 30 3,728 20 3,041 3,581 10 2,730 1,900 2,035 1,728 2,249 2,254 2,586 00 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Based on the survey conducted by the Association of Japanese Animations Animation videograms (2000-2017) Merchandising Related to Animation (2000-2017) Revenues of Animation Videograms  *Revenues arising only from Japanese animation characters ranked in the top 100 characters selling well in Japan were tallied.  *Revenues of Animation Videograms are calculated based on the total of “Japanese *Revenues arising from the use of characters in advertisement, promotion, and Pachinko/Pachinko‐slot were not included.  Animation for Adults” and “Japanese Animation for Children” counted in the report for all *The data from 2007‐2013 was recalculated in 2014. videograms by the Japan Video Software Association. shrinkagedue to the shiftfrom real productsto digitalproductswas remarkable. The shrinking market awaits new businesses. The size of the Japanese merchandising market related to animations shrunk to 523.3 billion yen in he size of Japanese animation videogram market in 2017 was 75.6 billion 2017, which was 93.0% of its size from the previous year. The shift from real products to digital en, decreasing for four consecutive years by 2.9% over the previous year. products becomes more pronounced year after year and the market has been shrinking slowly since his means the genre lost 40.0 billion in the last five years. What was 2014 (which is because digital merchandise, especially products related to application games, is not emarkable was the DVD/Blu-ray release of Your Name, the 2016 included in the market). In terms of character products targeted toward core fans, the sale of trading lockbuster. Sales reached 5.6 billion yen, leading the market as a huge hit products (i.e. products enclosed randomly) decreased while the expansion of fancy merchandise f the year. But if the situation is seen in a different way, it can be said the targeted to young women was outstanding. It is necessary to develop merchandise which meets the ong-term downward trend of videograms could not be stopped even with needs of consumers more than ever. our Name. In this trend, video package makers are hastily trying hard to stablish new business models by adding value to existing video packages. 600 t is expected that the videogram market will undergo a huge (billion yen) ransformation in the next five years. 400 570.0 504.9 530.5 597.4 536.4 559.7 627.4 594.3 573.2 598.5 655.2 579.4 562.7 200 435.0 433.7 461.7 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 150 Calculated by the Association of Japanese Animations based on the data from “CharaBiz DATA” (2001‐2017)  million) 129.4 138.8 Animation Distribution via the Internet (2002-2017) 120 135.8 127.8 117.6 115.3 The strong market exceeded the size of theatrical animations, reaching almost 70% of 103.1 the videogram market. 111.3105.2108.5107.6105.9 102.1 The size of the domestic animation distribution market was 54.0 billion yen, increasing by 13% over 90 93.3 92.8 the previous year. The distribution market, which was only 0.2 billion yen in 2002, grew rapidly, 77.3 78.876.5 exceeding the size of the theatrical animation market (46.0 billion yen). It is also almost 70% of the 60 videogram market (76.5 billion yen). The sales revenues of animation studios arising from distribution 30 via the Internet was 13.6 billion yen, increasing by 13% over the previous year. It is obvious that the distribution market developed its presence. In terms of the struggle for supremacy in the market, oligopoly by major platforms progressed while Netflix and Amazon followed domestic major players such as dTV. The movement of major players, including Netflix developing original animations or AbemaTV becoming proactive in animation distribution, must be watched from now on. (billion  yen) 40.8 43.7 47.8 54.0 50 27.2 34.0 40 0 30 8.4 9.8 10.2 12.3 14.9 16.0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 20 10 0.2 1.0 1.8 4.1 Based on a report by Japan Video Software Association 0 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17









  The market size exceeded 2 trillion yen!    All the necessary information for today’s animation market is in this report.  Anime Industry Report 2018  We, the Association of Japanese Animations, are engaged in research, survey, and analysis in connection with the Japanese  animation industry. We have also published “Anime Industry Report” since 2009 in order to disseminate information about  the industry to the world.    The  survey  for  this  report  revealed  that  the  market  size  (in  a  broad  sense)  reached  2.1527  trillion  yen,  increasing  by  8.0%  over the previous year and recording record‐breaking sales for five consecutive years.    Looking  at  each  genre,  TV  (100.9%),  Internet  Distribution  (113%),  Live  Entertainment  (116%),  and  Overseas  (129.6%)  expanded while five genres, i.e. Movie (61.7%), Videogram (97.1%), Merchandising (93.0%), Music (91.6%), and Pachinko  (95.8%)  decreased.  The  overseas  market  showed  strong  growth  which  exceeded  the  decline  in  the  domestic  market  significantly.    This  “Anime  Industry  Report  2017”  is  the  2017  report  for  trends  in  the  Japanese  animation  industry,  including  those  of  respective media, published with the “All Animation Works Perfect Data” attached as an appendix. So far, the data has been  adapted as the basis for official materials, such as the Media Fine Arts Database by the Agency for Cultural Affairs.    ■Outline  【Title】    Anime Industry Report 2018  【Publisher】  The Association of Japanese Animations  【Release day】  December 4, 2018  【Size/Pages】  A4 / 83P (Report), 40P (Materials), 72P (All Animation Works Perfect Data) + 4 chart sheets inserted  【Price】   10,000 yen (tax excluded)  【Index】  1.Overview of the Japanese animation industry in 2017 *Overall market trends and notable trends of the industry  2.Trends in respective media *Animation  distribution  market  (TV  animation,  theatrical  animation,  videogram,  Internet  distribution),  secondary  use  (including merchandising), advertisement/promotion, music, and live entertainment  3.Trends in the overseas market *Japanese animations in the global market  4.Contribution *“Reform of Working Practice” means “Reform of Production Practice”  Appendix: Materials, All Animation Works Perfect Data  *TV, Theatrical, and OVA  Chart:  Trends  in  the  Japanese  Animation  Market,  Recent  Movements  of  the  Japanese  Animation  Industry  and  Market,  Development of Japanese Animation in the Overseas Market, Distribution Map of Japanese Animation Studios    Available at the following:  Order via SPI Information website:      【Downloadable】  https://www.spi‐information.com/report/22240.html      【Physical】  https://www.spi‐information.com/report/22239.html  Physical Stores:  AKIBA INFO.×TOKYO ATOM ‐ INFORMATION & SHOP ‐  Akihabara UDX 2F, Sotokanda 4-14-1, Chiyoda‐ku, Tokyo, Japan  Kyoto International Manga Museum Shop  Karasuma‐Oike, Nagakyo‐ku, Kyoto, Japan (The site where Kagoike Elementary School was located)  Back issues (2009-2017) are also available on the site and in the stores above.  WEB: http://www.spi‐information.com/ The Association of Japanese Animations Address:Momose‐Bldg 2F, 1-7-2,Kanda‐Izumicho,Chiyoda‐ku,Tokyo  URL: http://aja.gr.jp/ E‐mail: [email protected] Phone: +81-3-5839-2930 Fax: +81-3-5839-2931