Anime Industry Report 2020
SummaryAuthors
Hiromichi Masuda

Anime Industry ResearcherAuditor, Video Market Corporation

Tadashi Sudo

Journalist
Appointed professor, Japan University of Economics Graduate
School,Entertainment Business InstituteKazuo Rikukawa

President, Character Databank, Ltd.
Director/Secretary-General, Character Brand Licensing Association

Yuji Mori

President, Senior Director, Dentsu Consulting Inc.
Specially Appointed Professor, Graduate School of Asia University

Yugo Kishikawa

Department Director, Content Strategic Planning Office Content
Division, ASATSU-DK INC.

Yasuo Kameyama

Ph.D. Student, Graduate School of Media Design, Keio University
Chief Researcher : World Otaku Institute

Megumi Onouchi

President, HUMANMEDIA Inc.
Vice Chairman, The Association of Japanese Animations,
Digital production environment Committee
Vice Chairman, The Association of Japanese Animations,
Human Resources Development Committee

Editor
Hiromichi Masuda(editor in chief)

Anime Industry Researcher
Auditor, Video Market Corporation

Masahiro Hasegawa

Producer, HUMANMEDIA Inc.

Misako Ashikawa

HUMANMEDIA Inc.

Cooperation in Material Research
Mitsuru Soda

Director, eiga.com, Inc.

Cooperation in Editing
Hiroko Uehara

Part-time Lecturer , Shobi University Graduate SchoolMarch, 2021
The Association of Japanese Animations

Japanese Animation Industry Records Marked and Unexpected Growth inBoth Domestic and Overseas Markets
In 2019, the Japanese animation market recorded 10 consecutive years of growth, with 7 consecutive years of record-breaking sales. The market size reached 2.5112 trillion yen (115.1% of the previous year), thanks to growth both in the domestic andoverseas markets. Despite negative factors, including Japan’s aging and shrinking population and China’s tighter regulations that were put into effect in April 2019, the Japanese animation industry recorded more than a 15% growth compared to theprevious year.

[Figure 2] Japanese animation market trends in a broad sense (billion yen)

Unanticipated Yet Significant Growth

item〈The market size recorded 10 consecutive years of growth with sales of 2.51 trillion yen(115.1% of the previous year), thanks to growth in both domestic and overseasmarkets.〉
It was anticipated that the Japanese animation market size would shrink in 2019, due to negative factors in both

domestic and overseas markets. The domestic market, which hit a peak in 2014, has shrunk continuously due to Japan’s
aging and shrinking population. Meanwhile, the Chinese government imposed tighter restrictions on the overseas
market in April 2019. Against expectations for the contrary, however, the Japanese animation market recorded morethan a 15% increase from the previous year. The growth can be partially attributed to Movies, which brought in thehighest sales on record of 69.2 billion yen (162.4% of the previous year). Breaking its own record year after year,

2002

2003

124.1

①TV

2004

116.5

2005

110.0

2006

104.1

2007

100.3

2008

92.4

2009

94.6

2010

95.5

21.8

19.1

40.2

18.8

28.9

21.6

34.8

31.1

33.7

28.5

③Video129.4

117.6

103.1

138.8

135.8

127.8

111.3

105.2

108.5

106.7

0.2

1.0

1.8

4.1

8.4

9.8

10.2

12.3

14.9

16.0

⑤Merchandising

435.0

433.7

461.7

504.9

530.5

597.4

536.4

559.7

627.4

594.3

⑥Music

13.8

9.1

23.5

12.0

26.1

26.3

35.0

41.4

40.6

32.5

⑦Overseas

372.5

421.2

482.7

521.5

520.4

439.0

413.7

254.4

286.7

266.9

⑧The Pachinko and the like

-

-

--

-

-

152.8

166.5

122.6

202.6

⑨Live Entertainment---------

-

Total

1,097

1,118

1,2231,304

1,350

1,314

1,389

1,266

1,324

1,338

④Internet Distribution

item201220132014

2015

2016

2017

2018

2019

YoY

Streaming also made the highest sales on record. It brought in 68.5 billion (115.1% of the previous year), and Live

95.1

102.0

110.7

107.2

105.9

106.9

114.4

97.0

84.8％

②Movie

40.9

47.0

41.7

47.7

66.3

41.0

42.6

69.2

162.4％③Video

105.9

115.3

102.1

92.8

78.8

76.5

58.7

56.3

95.9％

top three genres: Overseas Sales (1.2009 trillion yen; 119.0% of the previous year), Merchandise Sales (581.3 billion④Internet Distribution27.2

34.0

40.8

43.7

47.8

54.0

59.5

68.5

115.1％

yen; 116.2% of the previous year) and Pachinko (319.9 billion yen, 112.8% over the previous year). With regards to the⑤Merchandising

573.2

598.5

655.2

579.4

562.7

523.2

500.3

581.3

116.2％⑥Music

28.3

29.6

29.2

32.5

36.9

34.4

35.8

33.7

94.1％

⑦Overseas

240.8

282.3

326.5

583.3

767.6

994.8

1009.21200.9119.0％

two popular characters, Rilakkuma and Sumikkogurashi, were turned into animation series, which contributed to⑧The Pachinko and the like

227.2

242.7

298.1

294.1

281.8

268.7

283.5

319.9

112.8％⑨Live Entertainment-24.8

31.8

48.4

53.2

62.9

77.4

84.4

109.0％

Total

1,339

1,476

1,636

1,830

2,001

2,162

2,181

2,511

115.1％

Overseas segment, the impact of the slowdown in the Chinese market was not as serious as expected. For Merchandising,boosting sales. For Pachinko, the increased number of pachinko slot machines and collaborations with animated works
delivered significant growth.

[Figure 1] The Japanese Animation Market in a Broad Sense (Yen in billions)
2,5112,500
2,000
1,500

1,097 1,118

1,223

1,304

1,350

1,314

1,389

1,266

1,324

1,338

1,339

1,476

1,636

1,829

2,001

2,162

2,181

Based on questionnaires conducted by the Association of Japanese Animations and other publicly available statistics

Topics in the Japanese Animation Industry from 2019 to 2020
〈The Market Recorded the Highest Sales Due to Strong Demands〉
At the end of 2018, the Japanese animation market was expected to shrink in the following year. This was because thedomestic market had taken a downward turn after hitting a peak in 2014. The Chinese live streaming e-commercemarket, which has been causing shopping sprees for the previous few years, was also expected to take a downward turn.

1,000

The survey, however, revealed that the Japanese animation industry in both markets mainly grew because of concrete

500090.0②Movie①TVEntertainment recorded 84.4 billion yen (109.0% of the previous year). But the main factor was the strong growth of the2011

89.5

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Based on questionnaires conducted by the Association Japanese Animations and other publicly available statistics

demands brought about by the spread of live streaming e-commerce. The trend was also reflected in the comments forthe questionnaire: “The number of orders that we received increased thanks to the strong overseas and live streaming ecommerce markets.” “Now that the number of orders we’re receiving has increased, we can expect an upturn.” Such

positive comments were seen more than ever. It is likely that the increase of the orders, despite a rise in production unit
costs, is due to increasing demands for new animation titles, along with the growth of live streaming e-commerce.

〈Domestic Markets Held the Lead over Overseas Markets〉
It was expected that sales in the overseas market, which had grown rapidly since 2015, would overtake those of thedomestic market in 2018. However, they did not as sales stagnated due to Chinese buyers holding off purchases in
anticipation of tighter regulations. In 2019, the size of the overseas market grew significantly (119.0% of the previousyear) while the domestic market also recorded its highest sales. As such, the domestic market held its lead over theoverseas market. However, it is certain that the overseas market will overtake the domestic market in the near future,

due to the shrinking domestic market as a result of Japan’s aging and shrinking population and the growth of U.S.
streaming platforms and overseas games that are based off of animated works.

Domestic

1,200.0
1,000.0
800.0
600.0
400.0

724.3

372.5

697.0
421.2

740.3
482.7

782.7
521.5

Overseas

830.0
520.4

875.3

975.1 1,011.7

1,037.2

1,070.6 1,097.8

1,193.9

1,309.6 1,245.8 1,233.4

1,167.6 1,172.2

254.4

286.7

994.8 1,009.2

2009

2010

266.9

240.8

2011

2012

282.3

market shrinks from now on, or whether the shift to streaming and theatrical animations has already started – it is too

early to make a judgement. It should be judged after COVID-19 passes and the trends in 2021 are revealed.
[Figure 4] Production Minutes of TV Animations
136,407
124,648

140,000

1,310.2

80,0001,200.9

60,00085,43975,89092,724

106,335109,459
98,687110,047107,919

20,0000326.52000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Based on a survey conducted by the Association of Japanese Animations

200.00.0

2002

2003

2004

2005

2006

2007

2008

90,445130,347
119,962
115,854
115,845
115,533
112,170
107,006
105,070
95,09940,000

767.6

413.7

industry’s main market. It has also been said they decide the business trend of the industry. Whether the TV animation

100,000

583.3
439.0

streaming might be the cause. So what does the decrease mean? So far, TV animations have been considered the120,000[Figure 3] The Trend of the Domestic Market and Overseas Market in a Broad Sense (hundred million yen)
1,400.0(where all the episodes have to be delivered at once). Some also say progress of the shift to theatrical animations and to2013

2014

2015

2016

2017

2018

2019

Based on questionnaires conducted by the Association of Japanese Animations※The annual average rate of Principal Global Indicators is adopted as the exchange rate.

〈Effects of the COVID-19 Pandemic〉
2020 saw the spread and effects of COVID-19, which no one ever expected. Many animated TV shows, including existingshows, were delayed or suspended in April, which is usually the busiest time of the year with new TV programs starting.

On the other hand, theater screenings as well as live performances were completely halted. Under such circumstances,
those in the industry felt a sense of great anxiety. It is true that COVID-19 affected the animation industry.However, not
all of its impacts were negative. Instead, it encouraged people to develop a habit of streaming anime. As mentioned
before, streaming has a great potential to increase demands for animation in the future. After landing in Japan in

September 2015, Netflix garnered 3 million subscribers in its first 4 years. In a single year (September 2019 toSeptember 2020), it acquired another 2 million subscribers, reaching 5 million in total.This fact surely indicates thefuture of the industry.

〈What Does the Sudden Drop in MProduction Minutes Mean for the TV Animation Industry?〉
In 2018, the 2nd highest amount of production minutes in history was recorded. 107,006 minutes were recorded in2019. There was a sudden decrease by 23,341 minutes compared to the previous year, so 2019 had almost the sameamount as 2012. In terms of the number of TV animation titles, 2019 had 314, which was also a decrease from theprevious year (350 in 2018). Some factors might have been the causes for this. Firstly, the deceleration of sales in theChinese market could be noted as the cause of the significant drop of new animation tiles. On the other hand, some say
the decrease can be attributed to the postponement of 2020 broadcasts in Japan in order to delay delivery to China〈The Rise of Unit Production Costs, Reform of Working Practices, and COVID-19〉
It became clear that unit production costs rose in recent years, which was also seen in the responses for thequestionnaires from some animation studios. The costs increased along with the rise in employment and management
costs, though such an increase was partially attributed to the higher unit costs from major American platforms. It has
been said that the budgets for TV animations have been low since the time of Astro Boy. But now it seems quite difficult
to produce TV animations within their limited budgets.

In terms of the increase in unit production costs, there were various factors at play. Firstly, there was a demand forhigher quality animation. The demand increased in the market, along with the rise of animation catered towards adults
in the 2000s. Also, the industry was forced to respond to the move towards high-definition imaging, along with thetransition to digital terrestrial TV broadcasting. Under such circumstances, the industry faced a lack of skilled creators

who could satisfy the demands (and would require a higher level of compensation), and therefore invested in humanresources. At the same time, the Japanese government requested that all industries reform working practices. Increasing

staff per title along with a review of shifts and in-house systems, turning part-time and fixed-term contract workers into

regular employees, and reforming existing payment systems – all those factors led to an increase in unit production
costs. In addition, further factors were brought on by the COVID-19 pandemic in 2020. Though it is possible to handle
large portions of animation production from home, the industry was required to spend extra costs on equipment andstaff-managing systems to make working remotely possible. Also, other extra costs related to sound effects were added
due to dubbing delays and rescheduling. Now most studios have their plates full trying to deliver the works. At thismoment, it is hard to say how such extra costs will affect the actual balance of income and expenditure.

〈Animation Creators Earn More than the Average Annual Salary of a Worker in thePrivate Sector〉
On November 10, 2019, the Japan Animation Creators Association（JAniCA) published “The Report on a Fact-Finding

Survey about Animation Creators 2019.” The survey revealed that the average annual salary of animation creators wasslightly higher than that of employees working in the private sector across the board. (This is compared to the fact thatthe average annual salary of animation creators was 1.794 million yen lower than that of employees in all parts of theprivate sector in the first survey in 2009.) Considering the fact that the average age of animation creators is 7.15 years

younger than that of private sector employees, the actual difference in pay would be wider. Also, additional earnings,

including royalties, licensing fees, tuition, executive salaries and others arising from illustrations, manga, and fanpublication et cetera were probably not calculated in the survey. If such earnings were added, the average annual salaryof animation creators could be estimated to reach 4,969,000 yen, which would close to the median of average salaries inall sectors. Although it is hard to establish a causal relationship between the rise in unit production costs and theincrease in the average salary, there must be some connections.

Animation creators include directors, executive animation directors, producers, character designers, animation directors,
3D CG animators, rendition staff, storyboard writers, licensors, background art designers, color coordinators, shootingstaff, production assistants, key animators, animation checkers, layout/rough-drawing staff, finishing staff, the 2nd key
animators, animators and others.

The animation industry market expanded continuously, marking a record
high of 2.5112 trillion yen (115.1% of the previous year). The strong
growth continued in Overseas, Merchandise Sales, Pachinko, and more.

Anime Industry Report 2020

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.
In 2019, the size of the continuously expanding animation market reached 2.5112 trillion yen (115.1% of the previous year),thus recording the most sales for 7 consecutive years. The growth was attributed to Movies, which recorded the highest
sales of 69.2 billion yen (162.4% of the previous year); Streaming, which also recorded the highest sales of 68.5 billion,
continuously breaking its own record each year (115.1% of the previous year); and Live Entertainment, which recorded 84.4
billion yen (109.0% of the previous year). But the main factor was the strong growth of the top three categories: Overseas
Sales (1.2009 trillion yen, 119.0% of the previous year), Merchandise Sales (581.3 billion yen, 116.2% of the previous year),and Pachinko (319.9 billion yen, 112.8% of the previous year).
■Outline【Title】
Anime Industry Report 2020
【Publisher】
The Association of Japanese Animations【Release day】
November 30, 2020
【Size/Pages】
A4 / 108P (Report), + 4 chart sheets inserted+ All Animation Works Perfect Data(Online)【Price】
10,000 yen (tax excluded)【Index】
1. Overview of the Japanese animation industry in 2019
*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. Special topic ※The global effect of COVID-19 on Japanese animations（Electronic Edition） 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/28073.html【Physical】
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The Association of Japanese Animations Address:Haimu Ochanomizu 4F, 3-4-5,Hongo,Bunkyo-ku,Tokyo
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