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If it feels like anime is bigger than ever, that is because it is. Sure, the age of streaming has made it easier for companies like Crunchyroll and Netflix to bring us more anime each season, but their demand is being met by an industry that is growing to supply it. Those of us who spend our days obsessing over changes in the anime industry have sensed the growth, but now we’ve got the numbers to back it up... and that's what we're sharing with you in this week's Popverse Jump.

Financial research firm Teikoku Databank released their report on the anime industry’s year of growth, so, for this week’s Popverse Jump, we’re going explain what their numbers mean and what they mean for anime fans like us. The topline findings of the report are impressive – the anime production industry as a whole grew in value by about 22.9% in 2023, from $1.9 billion in 2022 to $2.36 billion, with a higher percentage of anime companies reporting profits than the previous year. This number doesn’t include things like live events, merchandise, and music, which make up a large portion of the overall anime industry figures.

So, we know, objectively, that anime was bigger coming into this year than it was a year before, but that isn’t enough. No, for our obsessive brains, we need to know why. Fortunately, the report cites three main reason and we can try to fill in some of the blanks along the way.

The stabilization of TV anime productions

In years past, anime was produced in two schedules. Either 26-episode seasons that took up half a year or year-long productions that never ended. This meant there were fewer shows each year, but each show got more episodes. Now, the norm is 13-episode seasons for most anime, resulting in the anime seasons we know and love. This has become the norm, to the point where franchises that were famous for their year-round production schedules like Dragon Ball are now seasonal releases.

As more studios have made 13-episode seasons the norm, the industry has settled into a groove. This means that we’re getting more anime series per season than we’ve ever had before. The Fall 2024 anime season alone has more than 70 new series or shows that are coming back for another season – and that is before you include the likes of One Piece or Detective Conan, which never stop airing. More shows per year means more studios contracted to do the animation, more animators employed, and a larger anime industry in general.

The growth of streaming

We can’t talk about the growth of the anime industry without touching on the impact streaming has had on it. For international fans, streaming platforms like Crunchyroll and Netflix have become the primary way we consume anime. While Crunchyroll has been the top name in anime streaming since its acquisition by Funimation, Netflix has made significant moves. Not only are they simulcasting the Ranma ½ remake and the Dan Da Dan anime – the latter of which they’re sharing with Crunchyroll – but they are also going to stream Dragon Ball Daima just one week after it airs on Crunchyroll.

This competition seems, at least in the short term, to be good for the anime industry. More studios working with more streamers means that those of us in the West are getting more anime, quicker. The demand is there, for now.

Theatrical hits are driving growth

2023 was a big year for Japanese cinema, particularly its animated offerings. Things started well with Suzume; Makoto Shinkai’s follow-up to Weathering with You was released in late 2022 but took in the bulk of its box office in 2023. It was followed by The First Slam Dunk, which helped introduce a whole new generation to the classic anime and was the highest grossing movie of the year in Japan, and The Boy and the Heron, and Spy x Family: Code White late in the year.

Looking at this data puts some things into perspective, like Ufotable’s decision to forego a final season of Demon Slayer: Kimetsu no Yaiba and to instead adapt the final arc as three movies. MAPPA has taken a similar decision, turning the next arc of Chainsaw Man into a movie instead of a second season. While television and streaming are still the de facto homes of anime, the Japanese box office is increasingly profitable for animation studios and has helped drive the industry to significant profits in 2023.

It is worth mentioning that Teikoku Databank isn’t expecting a similar year for anime in 2024. Even with a new My Hero Academia film coming out alongside the Haiyku and Blue Lock movies this year, they expect the anime industry to hold steady at its 2023 values for at least one more year. 2023 was a year when Hollywood was at a standstill for much of the year, resulting in less production from competitors in the US and an opportunity for anime to step in to fill the entertainment void. The fact that other industry experts believe streaming is heading to period of slowed or non-existent growth may also be why anime isn't expect to build off of its huge 2023.

That was a lot of data and a lot of number crunching, but if you’re looking for the too-long, didn’t-read version, here it is: anime is bigger than it has ever been and is going to stay that way for a while yet. There are more series available to a wider selection of audiences around the world, punctuated by bigger movies that are driving the industry right now.

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