Anime Companies’ Profits Drop despite Record Industry Revenue

The anime companies’ profits 2024 saw a significant decline, even as the industry reported record-breaking revenue. According to a survey by Teikoku Databank, Japan’s domestic anime production market reached an estimated $2.45 billion in 2024, a 4% increase from 2023 and the highest figure ever recorded.

Anime Companies’ Profits Drop despite Record Industry Revenue

Despite this growth, 60% of anime production companies reported falling profits or even losses compared to the previous year. This includes prime contractors and gross contractors — the studios directly managing and executing anime production.

The data shows that only 40% of companies achieved profit growth, while 25.5% reported declines and 34.5% ended the year in deficit.

Revenue up, but profits down

The survey also revealed that the average revenue per studio in 2023 was around $8.35 million, marking the fourth consecutive year of growth and the highest since 2000. Overall:

• 37.2% of companies reported revenue growth

• 41.8% remained stable

• 20.9% saw revenue decline

In other words, revenue is rising, but profits are not keeping up.

Shortage of animators is the main issue

Teikoku Databank identified the serious shortage of animators as the main cause of this decline. With global demand for anime on the rise, there are not enough professionals to handle production. This forces many studios to extend production schedules beyond initial forecasts, which increases costs and reduces profit margins.

Although Japan’s anime production market is expected to continue setting revenue records, experts warn of a “profitless boom”, where earnings don’t match the soaring costs and lack of staff.

via Otaku Soken