Imperial Data Bank released the actual report of the Japanese animation production company in 2019 yesterdays. This is the fourth consecutive year that Imperial Data Bank has published this report. The contents of the first three years of the report can also be found on Anitama

The subtitle of this report shows the double-sidedness of the industry’s trend: “The average income in 2018 is about 8% higher than the previous year, and it is 80% higher than the peak. The profitability is still the subject. The deficit ratio is ten. The biggest in the year~”

The report is open and clear, pointing out that the animation industry in 2018 can be said to be in the year before the huge fork, and there are many examples that are obviously different from the previous animation production methods, such as Netflix production, public broadcast without TV broadcast. The original animation, large companies successively opened a co-funded 3DCG animation production company. In addition, in the context of the “work style reform” becoming the subject of the whole society, the issue of the treatment of animators in recent years has also attracted attention. While the animation industry is developing, there are still many problems to be solved

This report reports the financial data of 256 animation companies from January to December 2018, one more than last year. The total revenue of these 256 companies reached 21,131 million yen in 2018, an increase of 3.6% from 2017, which exceeded 200 billion yen for the first time, achieving an eight-year growth rate since 2011

The average revenue per company was 843 million yen, an increase of 8.1% over the previous year. Since 2006-2007, it has achieved two consecutive years of growth in violation of 11 years. Although the industry’s overall talent shortage and outsourcing costs are high, the corresponding production volume is guaranteed. Therefore, with the big hand studio as the center, the performance of the animation production company continues to respond, driving the overall improvement and returning to the peak period in 2007. More than 80% of the total (920 million yen)

Looking at the average income of different types of companies, the company has direct entrusted and completed production capabilities. The average income in 2018 was 1.663 billion yen, an increase of 8.0% over the previous year. Although the growth rate has declined, it has also achieved two consecutive years of growth. In 2018, not only did the online video industry in Japan and abroad flourish, but TV and theatrical animations all showed their best-selling works, so the production companies that contributed to the production committee were more likely to receive authorized revenue, which also led to an increase in revenue

The average income of the “specialized studios” that participated in the animation production by outsourcing was 277 million yen, an increase of 10.5% over the previous year. After a lapse of 6 years, the growth rate was more than 10%. 12 years of success since 2006. It is relatively easy to start a business in a specialized studio, so the competition between the delivery and the price is fierce; but the number of works that can be participated in the whole is high, and many specialized studios are able to obtain more from the enterprises. High unit prices, these reasons support their performance

Specific to the income increase and decrease of each company, 34.1% of the company’s income increased compared with last year, compared with last year. Among them, the income of Yuanyou and Tongbao companies increased by 35.6%, which was 10.0% lower than that of 2017. These companies with increased revenues are mainly due to the increase in the number of animation productions and the production of best-selling works. In addition, companies that sell and sell programs online and at home, as well as companies with excellent online video services through large websites, have also achieved revenue growth

And the companies with reduced income in 2018 accounted for 23.2%, narrowing for two consecutive years. Compared with previous years, it is worth noting that many companies have refused to entrust more than the company’s ability because they cultivate animators within the company, which has led to a decrease or flat income

As for profit and loss, companies with revenue growth in 2018 accounted for 48.5%, a slight decrease from 2017 (50.4%). Among them, 54.2% of the enterprises in Yuanyou and Tongbao achieved revenue growth, reaching the second highest in the past decade. These companies tend to identify commissions, accept commissions for projects that maintain revenues and expenditures, and ensure higher revenues and expenditures for revenues due to increased online broadcasts. In addition, it is worth noting that some companies have completed the production process and reduced the outsourcing process by making the production enterprises of the internal training staff as the center, which has improved the profitability compared with previous years

At the same time, there were 49.5% of companies with reduced revenues, which increased after a lapse of three years. Among them, the proportion of Yuanyou and Tongbao companies with reduced revenue decreased for three consecutive years, while the decrease in revenue in specialized studios accounted for 54.7%, more than half. Some specialized studios are also advancing the animators to become regular employees and cultivating animators, but the first investment has not yet received a return, so there has been a decrease in revenue

As a result, the number of producers whose final profit and loss is “deficit” accounted for 30.4%, which increased over the past three years, reaching the highest level in the past 10 years

In 2018, six animation production companies went bankrupt, five companies closed down or were dissolved, and a total of 11 companies stopped their business, which was also the highest in history. Among them, representative companies include PRODUCTION IMS for making animations such as “Fengxian Love Introduction”, “Dating Battle II”, “College Fleet”, and the production of “The Light of the Sea Elf”

2019 From January to July, one animation production company has declared bankruptcy. Compared with the same period last year (3 companies), there was a decrease

In recent years, animation companies that are unable to maintain their operations are mostly due to the low unit price of the contract, resulting in a decrease in income and insufficient talents, resulting in an increase in labor costs and outsourcing, resulting in poor capital turnover. In addition, some companies have been unable to expand their business due to lack of talent and have given up their operations

As of July 2019, 89.1% of animation production companies are concentrated in Tokyo, especially in Suginami and Nerima, and there has been little change over the years, so I won’t go into details

The number of employees in the animation production company, although as in previous years, the number of employees in 90% of the company is less than 100, but due to the shortage of talents in recent years, each company has promoted the number of animators, compared with last year, 6~20 The number of companies with more than 5 employees has increased; the number of companies with 51 to 100 employees and more than 100 has also increased

As for the scale of corporate income, about 60% of the industry as a whole is still a small-scale enterprise with an income of less than 300 million yen

As for the company’s founding era, since the 2000s, the number of newly established animation production companies has increased rapidly. There were 81 animation companies established in 2000~2009 and 73 in 2010~2019. About 60% of the company’s companies are established after 2000

The report concludes that enterprises that cultivate talents and invest in equipment first can reduce outsourcing costs and gain more benefits; while the profitability of slow-moving companies is widened

Report predictions, in view of the popularity of Japanese animation, the Japanese animation production community will continue to grow solidly in the future. However, in an environment where Japanese animators are increasingly under-represented, production companies must cultivate talents, invest in equipment, improve productivity, and ensure the stability of interests through negotiation of unit prices. In addition, if the problem of making the production schedule too tight due to the increase in workload is solved, the improvement of the labor environment is also urgent

Looking at the overseas market, although the popularity of Japanese animation has been stable in recent years, it is also necessary to pay attention to the competition with overseas emerging companies, especially Chinese companies with improved production levels in recent years, as well as overseas companies that broadcast their works overseas. The mobility of the platform

The report also mentions the Kyoto animation arson in July 2019, in which 35 staff members were killed and saddened. Kyoto animation supported the booming Japanese animation culture in the second half of the 2000s, and the quality of the productions by the slender brushstrokes was well received. Therefore, material losses such as talents and production materials brought about by this incident are not only a painful loss to Kyoto animation but also to Japanese animation culture. We need to continue to watch the overall trend of the animation production industry including Kyoto animation

(https://www.tdb.co.jp/report/watching/press/p190903.html)


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