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Why Anime Is The Next Streaming Frontier

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There are more streaming networks than ever before. So if you have questions about the future of streaming, then you've come to the right place. All week long, IGN's State of Streaming 2.0 initiative will feature reviews and in-depth analysis about the coolest hidden features that streaming services are implementing, the biggest shows coming to streaming in the second half of 2020, our full review of the new Peacock streaming platform, and we explain why Netflix is leading the charge in the interactive movie and TV space. Today, we're examining how anime is taking over the streaming landscape. [poilib element="accentDivider"] Talk to any longtime anime fan and you’ll hear about the nightmare days of limited theatrical runs, import-only markets, and the importance of staying up to catch the meager handful of shows screened on late-night television. Anime was a niche genre outside of Japan for many years, and so the global audience faced a high barrier of entry, with few choices available and costly VHS and DVD releases. In 2020, the anime scene couldn’t be more different. Now, it’s a hot genre for major streaming services like Netflix and Hulu; it has dedicated streaming platforms in Crunchyroll, Funimation, and RetroCrush; and studios in Japan are making originals with global, digital-first production in mind. With dozens of new shows each season and a robust back catalog that’s yet to be fully explored, anime has become the next streaming frontier: a chance to tap into a medium that is a lifestyle to its many fans worldwide.
Production Attitudes to Streaming Are Changing

Perhaps the biggest indicator that anime streaming is growing in importance is Studio Ghibli’s partnership with HBO Max, which sees much of its acclaimed catalog streaming for the first time in the U.S. It’s a surprise to many, as famously Studio Ghibli have been wary of digitally distributing their films, as co-founder Hayao Miyazaki has long been a strong believer in memorable cinematic experiences. Dave Jesteadt, President of GKIDS - who handles North American distribution for Studio Ghibli - has been working for almost a decade to convince the studio of the value of streaming, and says the tone started to change a year or so ago. “They’re very mindful of where the fans [of Studio Ghibli] are currently at, so there was a recognition that if they stay off digital platforms that audience could become very specialized; almost like a form of gatekeeping,” Jesteadt tells IGN. [widget path="global/article/imagegallery" parameters="albumSlug=the-best-anime-series-on-netflix-right-now&captions=true"] And so, films like My Neighbor Totoro and Howl’s Moving Castle are now available on streaming platforms for the first time. The challenge for GKIDS and Studio Ghibli, now, is to preserve the “Ghibli experience” now that their films are being interacted with through digital channels. With such a valuable but limited library, as Jesteadt puts it, Ghibli has previously relied on theater runs followed by home video releases, and the anticipation which that launch life cycle generates. If something is available instantly, is it as memorable, as magical? There’s no clear answer yet - it’s early days - but production companies and distributors alike are looking at the shift as a very positive one overall. “Streaming does lower the barrier to entry for fans,” Jesteadt confirms. And as the partnership with HBO Max looks set to bring huge numbers of new fans to the legendary studio’s library, that can only be considered a win. It’s a stance that Will Chao of anime streaming service RetroCrush agrees with. Though RetroCrush only launched in March of this year in the U.S., a dedicated specialized retro anime community has been bouncing around the minds of Chao and the rest of his team since 2012. It’s only now that they were able to act on it. “We’ve always thought that the anime that wasn’t very accessible when we were growing up in the ’80s and ’90s should be more readily available,” Chao explains of RetroCrush’s conception. “But until the last two years, the market in the U.S. simply wasn’t mature enough, and physical media was still such a big presence in Japan that digital didn’t have much impact.” Essentially, because the Japanese consumer market focused mainly on collectibles and physical releases, there was a perception that digital simply couldn’t compete, even as the anime industry gained traction outside of Japan. Of course, the market changed, and when RetroCrush went live, it was with the enthusiastic support of anime studios who saw it as a way to reinvigorate older properties that were hard to find, including the incredible Street Fighter II: The Animated Movie (1994): [ignvideo url="https://www.ign.com/videos/2006/07/11/street-fighter-ii-the-animated-movie-uncut-uncensored-unleashed-dvd-new-blood"] “Back in the day,” Chao says, “if you couldn’t sell an anime for the right price then the license just sat there languishing, not getting used... but now it can be put on streaming services.” This is the point of difference that the RetroCrush team hopes will give them a solid footing in the streaming sphere - forgotten series and out-of-circulation classics that deserve to be aired for new and old fans alike. Plus, Chao adds, it’s also a way of showcasing a style of hand-drawn production that’s no longer sustainable, and therefore rarely seen, in the modern anime landscape.
Anime’s Gone Mainstream

There’s no denying that this is a good time for both retro anime classics and Studio Ghibli’s iconic catalog to thrive. Anime has undeniably gone mainstream: Popular artists like Porter Robinson have created anime music videos, basketball stars wear anime-inspired trainers on the court and you can buy merch for your favorite show at Walmart. It’s a far cry from the days of small local conventions and subculture spaces, and the genre is now irrevocably associated with the cultural zeitgeist of today. And where popularity goes, investment follows. All of the streaming giants are chasing anime in a big way. Netflix has been investing in original anime programming since 2017, allocating significant portions of their content budget to work with high-profile studios like Production I.G in a bid to “be the most compelling and attractive home for anime fans, creators and production studios.” In 2020 it’s pushing this commitment even further by partnering with influential creators such as CLAMP of Cardcaptor Sakura fame and Yasuo Ohtagaki, creator of Mobile Suit Gundam: Thunderbolt, to produce new shows under the Netflix Originals banner. Aiming to “give creators… access to fans all around the world, because storytelling is boundless in the world of anime,” Netflix seeks to make anime an even bigger global phenomenon; with over 183 million paid memberships worldwide, that’s a lot of potential viewers. [ignvideo url="https://www.ign.com/videos/2020/04/06/the-best-streaming-anime-to-binge-right-now"] Longstanding anime-exclusive streaming services are also expanding during this period of growth. Crunchyroll, founded in 2006 and known for its broad catalog and strong community, has announced its first slate of Crunchyroll Originals with 12 titles to date, including the immensely popular Tower of God and Noblesse, both based on hit Korean webcomics. With the spotlight on anime as a medium, they’re in a good position to take advantage of its increasing popularity for streaming. The anime boom has been accelerated by a more unfortunate event - the COVID-19 global pandemic - which has meant Crunchyroll users have more time to experiment with new content as well as indulge in old favorites. “Our fans are finding comfort in the series they grew up watching; many of the older shonen titles with deep libraries are what fans seem to be drawn to during this time,” says Head of Global Communications Joellen Ferrer. These fans are also tuning into the simulcast shows - new anime that’s broadcast on the platform on the same day as its premiere in Japan - with an average daily viewing of approximately 85 minutes overall. Crunchyroll is seeing increased engagement across the board right now, with the top streaming countries in 2020 highlighting their global reach, as indicated in the graphic below. Anime_2 In a year where we’re mostly at home, it seems it’s finally time to get sucked into all 700+ episodes of Naruto.
Where Do We Go From Here?

Right now we’re seeing exceptional uptake in anime streaming, with its mainstream popularity bringing new audiences to the medium in bigger numbers than ever before. Is this growth sustainable? Mitchel Berger, SVP Global Commerce for Funimation - an anime distribution company with over 25 years in the industry and a fan-centric approach - certainly thinks so. “Streaming is a great area of growth for us, to introduce new people to anime - like a discovery mechanism,” he says. As a brand that serves the anime lifestyle, Funimation is very aware that streaming is an important part of how anime fans interact with the genre, but it’s simply one part of the puzzle. “It’s really important to us that we go along that whole journey with anime fans.” However, Funimation’s audience, Berger explains, likes to tangibly interact with anime culture, whether it’s getting their hands on collectibles or attending conventions and theatrical releases. Streaming is more of a toe-dip in the water before they make bigger commitments. Funimation has attempted to rectify this - in a time where we’re not allowed to “touch” - by hosting a virtual convention. FunimationCon 2020, which ran at the beginning of July, featured streamed interviews with voice actors, an online industry panel, and special airings of anime music festivals, and attracted huge volumes of engagement from fans worldwide. Anime_1 FunimationCon 2020 proved that there are still places where the anime community can interact with the culture in a streaming setting. There are other initiatives too, like the UK’s Screen Anime film festival, or massive global events like Anime Expo Lite, which attracted over half a million global viewers at the start of the month. It’s hard to speculate where the future of anime streaming will go from here, but the genre still has room for incredible growth in the digital space. Over a hundred new television series are produced yearly - and that’s not even counting one-off specials, movies, and sequels - and the appetite for this new content is only growing globally. Perhaps one day soon we’ll see the digital equivalent of witnessing Goku from Dragonball at the Macy’s Thanksgiving Day Parade.

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