Sony’s Crunchyroll has emerged as a dominant force in the anime streaming market, boasting a subscriber base of 17 million and a quarterly release of over 50 new shows. However, this early success is under threat from intensified competition. Major streaming platforms like Netflix, Amazon, and Disney are aggressively licensing anime content, driving up acquisition costs and providing fans with more viewing options. Internally, Crunchyroll faces challenges such as declining employee morale, with only 39% of staff feeling motivated by management’s strategy, down from 51% previously. Additionally, ambitious growth targets, like the “25 by 25” initiative aiming for 25 million subscribers by the end of 2025, may be unrealistic, as only one of six major regional markets is on track to meet its goals .
Japan’s anime industry, despite its global success, has been criticized for exploiting its workforce. A 2024 UN report highlighted issues such as excessive working hours, low pay, and job insecurity among animators and voice actors. For instance, many animators earn less than $3,000 annually, significantly below industry standards. In response, Japan enacted the Freelance Act in November 2024, aiming to protect freelancers by requiring written contracts and banning unpaid overtime. However, enforcement remains weak due to deep-rooted outsourcing practices and a lack of strong unions. Experts warn that meaningful change will require comprehensive industry-wide reforms and stronger worker advocacy .
In the United States, anime faces potential challenges from political developments. President Donald Trump proposed a “100% Tariff” on all foreign-produced films, citing national security concerns and the decline of the American movie industry. While the proposal is still under consideration, its implications for anime are significant. Such a tariff could increase costs for streaming platforms like Crunchyroll, which rely heavily on international content, and might lead to higher subscription prices for consumers. Additionally, the proposal could strain international relations and provoke retaliatory measures from other countries . Moreover, California politicians are scrambling to try and reinvigorate Hollywood’s animation industry which has fallen by the wayside largely due to Gen Z preferring animation being produced abroad.
Crunchyroll’s ambitious expansion plans, including the “25 by 25” initiative, are encountering market realities that may hinder their success. The platform aims to triple its subscriber base in regions like India and Southeast Asia. However, only Latin America is currently on track to meet its growth targets, while other regions lag behind. This disparity underscores the challenges of scaling operations in diverse and competitive markets, where local preferences and existing competition can impact growth trajectories .
Alongside the aforementioned subscriber growth, an anime series based on the popular PlayStation game “Ghost of Tsushima” is in development.
During a corporate strategy presentation, Sony highlighted anime as a key driver for the company’s growth. Plans are underway to further accelerate Crunchyroll’s expansion, which includes broadening its offerings into mobile games and merchandising. Crunchyroll President Rahul Purini discussed these growth strategies, emphasizing wider distribution and collaboration with other Sony entities like PlayStation.
The “Ghost of Tsushima” anime adaptation is a significant part of this strategy, aiming to leverage the success of the Sucker Punch-produced game, which has sold over 13 million copies. While details such as an official trailer or release date for the Crunchyroll-produced series are yet to be announced, the project is reportedly already in progress. Some reports suggest the anime, potentially focused on the “Legends” multiplayer co-op mode, could premiere in 2027 and will be produced in collaboration with Aniplex.
Sony’s broader anime initiatives also include the establishment of an anime label called Hayate and collaborations with Kadokawa, all aimed at strengthening content development and expanding its reach in the rapidly growing anime market.