
Key Takeaways
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- Crunchyrolls market control significantly impacts anime licensing, leading to less significant financial gains for Japanese producers like Kadokawa.
- The consolidation of the streaming service market has resulted in Crunchyroll becoming the primary buyer, with other platforms playing a lesser role.
- Negotiating terms rather than price becomes more crucial due to Crunchyrolls expanding influence, making it essential for producers like Kadokawa to spend more time on negotiations.
- Producers must carefully consider and identify appropriate international markets for specific titles that may not attract the interest of U.S. streaming service executives.
Crunchyroll’s Growing Influence Alters Anime Licensing Landscape for Japanese Producers
Daijo Kudo, a key executive overseeing anime at Kadokawa, stated that the financial gains from U.S. streaming services have become less significant due to Crunchyroll’s strong market control. When asked about overseas anime sales and increasing licensing costs, Kudo explained the evolving landscape. He observed that while distribution fees initially appeared to be rising amidst competition among Funimation, Crunchyroll, and Sentai, Sentai’s diminished presence as a video service has consolidated the market, with Crunchyroll now emerging as the primary buyer and other platforms playing a lesser role. Kudo indicated that Crunchyroll’s expanding influence means Kadokawa spends more time negotiating terms rather than price. This is particularly crucial because if Crunchyroll does not acquire the rights, predicting overseas revenue becomes challenging for Kadokawa. To counter this, Kadokawa makes decisions for its original productions only after developing careful contingency plans early in the planning phase. Additionally, Kudo noted that certain types of anime do not attract the interest of U.S. streaming service executives. Consequently, Kadokawa must carefully consider and identify appropriate international markets for these specific titles.
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