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Teikoku Databank: 8 Anime Production Companies Closed Between January-September This Year
posted on by Joanna Cayanan
Bankruptcies and closures include specialized studios that act as secondary contractors or subcontractors, but is most notable in anime production companies that are "prime contractors with gross contracts," which have the ability to directly undertake and complete production. The firm noted that about half of the production companies that exited the market in the past five years are considered "prime contractors with gross contracts."
For example, EKACHI EPILKA (animation production for 180-Byō de Kimi no Mimi o Shiawase ni Dekiru ka?, Aru Asa Dummy Head Mike ni Natteita Ore-kun no Jinsei, Crossing Time, Demon Lord, Retry!), which handled gross contracts, had declared bankruptcy this July. 5 Inc. (3DCGI works for Heavenly Delusion, Sakura Kakumei ~Hana Saku Otome-tachi~, UniteUp!) and Cloud Hearts (animation production for Tawawa on Monday Two, Rail Romanesque 2, The Great Cleric, The Iceblade Sorcerer Shall Rule the World, The New Gate, Whisper Me a Love Song episodes 1-10) both declared bankruptcy in June and December 2024, respectively.
The study cites some cases where orders suddenly increased after a decline due to COVID-19, and the supply capacity could not keep up with the demand. In order to compensate, overseas production companies were outsourced, but outsourcing costs had increased due to the weak yen, and has worsened profitability.
Despite the continuous expansion of the anime production industry with increasing demand due to high praise from overseas, production companies are falling into a state of being "busy but unprofitable," unable to pass on rising production costs to prices. Rising production and labor costs are outpacing revenue growth in the production industry, and companies most affected are the small- and medium-sized production companies without stable revenue bases like intellectual property (IP) revenue. According to a survey by Teikoku Databank, about 60 percent of prime contractors noted a "deterioration" in their performance in the 2024 fiscal year.
Additionally, a number of anime series scheduled to air this fall or this year have been postponed, exacerbating the industry's manpower shortage. Anime series that have been delayed from this year to 2026 include The Warrior Princess and the Barbaric King, Witch Hat Atelier, and Go for It, Nakamura!
Currently, efforts are being made to address rising production costs, with companies — particularly those that invest in production committees — showing willingness to flexibly accommodate increase in production fees. Notably, many small- and medium-sized production companies are involved in production as secondary contractors, and production companies without IP have meager benefit from hit anime works, and many companies are still financially unstable because of low profitability.
The report notes that measures to promote sustainable growth of the anime production industry such as creating a fair trading environment, and training animators and other human resources are urgently needed.
The Association of Japanese Animations (AJA), the industry group headed by anime production companies, presented a summary of its Anime Industry Report for this year on October 30 and reported that the global anime market grew to a record level of 3.8407 trillion yen (about US$25.1 billion) in 2024. That included 1.6705 trillion yen (about US$10.9 billion) in the domestic market and 2.1702 trillion yen (about US$14.1 billion) overseas.
The overall global anime market grew by 14.8% last year — the second highest annual increase (after 2019's increase of 15.3%). While the domestic market grew 2.8%, the overseas market grew by 26%.
2024 was the third year in which the overseas market was bigger than the domestic market (after 2020 during the COVID-19 pandemic and 2023).
Estimated revenues for the anime production side by itself grew by 9.1% to its highest-ever level at 466.2 billion yen (about US$3.025 billion). Revenues from the domestic portion was 6.7% higher at 347.4 billion yen (about US$2.254 billion), and revenue from overseas was 16.6% higher at 118.8 billion yen (US$770.6 million).
Masahiro Hasegawa, the editor-in-chief for AJA's Anime Industry Report 2025, explained the lower annual increase in revenues on the production side by noting that there is a time lag of a few years before revenues from some sources, such as from overseas streaming, is reflected in the revenues for the production side.
Source: Teikoku Databank (link 2)
