Japan’s anime and manga industries have seen explosive growth globally, but this success masks a bitter irony: while publishers and IP holders thrive, many anime studios are quietly going bankrupt.
According to the Japan Publishing Science Research Institute, the total estimated revenue of Japan’s manga market including print and digital formats reached $4.67 billion in 2024, a 1.5% increase year-over-year. Simultaneously, the anime industry achieved a record-breaking $25 billion, growing 14.8%, as reported by the Association of Japanese Animations (AJA).
Manga titles and their anime adaptations are beloved worldwide, expanding far beyond Japan’s borders. However, within Japan, anime studios are facing a “profitless boom” a surge in demand with little financial reward.
A recent report from Teikoku Databank (TDB) revealed that in just the first 9 months of 2025, eight anime studios shut down two filed for bankruptcy, and six ceased operations. This marks the third consecutive year of rising closures. In contrast, only four studios shut down during the same period in 2024.
If this pace continues, up to 16 studios may close by year-end, rivaling the record set in 2018. Studios like Ekachi Epilka, 3DCG Studio5, and Cloud Hearts, known for works like Whisper Me a Love Song, are among the recent casualties.
The problem lies in the financial structure of anime production. Before any anime is made, a “production committee” of investors is formed. These stakeholders fund the project, retain copyright, and control revenue distribution. Anime studios are often excluded from these committees and are only paid a one-time production fee, regardless of how successful the anime becomes.
Many studios report that these fees are barely enough to cover costs, especially for smaller studios that work as subcontractors for even lower pay. AJA’s 2020 survey found that most of Japan’s 811 anime studios are small, under-resourced, and recently established. With meager compensation, their revenues must be stretched thin across departments, leaving them financially vulnerable.
In 2023, the anime market was worth $22.31 billion, but studios collectively earned only $2.848 billion just 13% of the total market size. Meanwhile, production costs for a standard 12-episode anime can range from $2–4 million.
This skewed profit model prevents studios from reinvesting or increasing animator wages, despite a severe labor shortage in the anime industry. The broken system is further exacerbated by rising post-COVID production demands, overburdening studios’ limited capacities. As order volumes rise while fees stagnate, studios struggle to absorb soaring expenses including increasing wages for highly sought-after animators and higher overseas outsourcing costs due to the weak yen.
TDB concludes that to ensure the sustainable future of anime, urgent structural reforms are needed especially the creation of a fair business environment and stronger workforce development. Without these, the very studios behind the world’s favorite anime may continue to vanish, one by one.
Sources: Znews
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