On June 2, 2026, an article titled "The Golden Age of Japanese Anime is Over, Moving Towards an Era Where IP Dominators Monopolize Profits" was published on the Chinese portal site Sohu.

The article stated, "Recently, a very interesting phenomenon has been occurring in the Japanese anime industry. On one hand, popular works are appearing one after another, the overseas market continues to expand, numerous visitors flock to anime events, and various streaming services are fiercely competing to acquire content. On the other hand, the financial results of many anime companies are so severe they are eye-opening. KADOKAWA's profits have significantly decreased, and PONY CANYON's performance has also deteriorated. Anime companies affiliated with TV stations have also seen their profits shrink, and even Studio KAI, known for 'Uma Musume Pretty Derby,' reported a deficit. However, at the same time, Toho and Toei Animation are generating substantial profits. Why is there such a stark contrast within the same anime industry? When these financial results are viewed collectively, a certain fact becomes clear."

It then explained, "The Japanese anime industry itself is not in decline. What is truly coming to an end is 'the era when anyone would buy anime as long as it was made.' The Japanese anime industry is currently facing a challenging period of transformation. When people see anime companies reporting deficits, many might think the anime industry itself is struggling, but in reality, the opposite is true. According to the 'Anime Industry Report 2025' published by the Association of Japanese Animation, the market size of the Japanese anime industry has already reached 3.84 trillion yen, nearing the 4 trillion yen mark."

Meanwhile, it analyzed, "Just because the market has grown doesn't mean everyone will earn more profit. Some companies will reap significant profits, while others may be forced out of the market. The Japanese anime industry is currently transitioning from 'an era of overall industry growth' to 'an era where winners and losers are clearly divided.' In the past, many companies could profit together. However, it is highly likely that, from now on, only a select few companies will generate substantial profits."

The article mentioned, "Twenty years ago, there were approximately 100 new TV anime series produced annually. However, this number has now reached nearly 300, an increase of about threefold. On the surface, the industry appears to be thriving, but despite the number of animators and production companies not increasing rapidly, only the number of works has tripled. As a result, competition for talent, production schedules, outsourced partners, and production resources has intensified across the industry, leading to a sharp rise in production costs. The problem is how to recover these costs."

It then stated, "Previously, it was sufficient to sell to streaming services. With the full-scale entry of streaming platforms like Netflix, Crunchyroll, and Disney+ into the anime market, a purchasing frenzy, truly a golden age, occurred for a period. At that time, it was not uncommon for works to recoup 70-80% of their production costs solely from streaming rights fees. As a result, the idea that simply making anime would lead to high-value purchases and profits spread throughout the industry. However, no tailwind lasts forever. The special demand from streaming services has already peaked, and companies are no longer investing as aggressively as before. The market structure has largely solidified, and they have begun to place more emphasis on return on investment. This is believed to be one of the factors behind KADOKAWA's deteriorating performance."

It also explained, "Over the past decade or so, KADOKAWA has built a system much like an industrial product production line. They serialize light novels, adapt them into manga, then into anime, sell merchandise, and develop media mixes. This series of methods has achieved great success for a long time. Isekai works, in particular, became known as 'the formula for success.' However, if everyone starts to imitate the same success pattern, that advantage will be lost."

Furthermore, it argued, "If KADOKAWA represents a content factory, Toho represents an 'intellectual property (IP) empire.' Many people consider Toho an anime film production company, but that is only a partial view. Toho's true strength lies in utilizing anime not as an endpoint, but as a starting point. For example, if 'Jujutsu Kaisen' is a hit, they conduct licensing sales, hold exhibitions, develop collaborations with companies, open limited-time shops, produce stage adaptations, and further expand into overseas markets. If 'Godzilla' is successful, they continue to make films, develop games, sell related merchandise, and hold various events. A single work is repeatedly utilized for 10, 20, or even more years, continuously generating profits. For Toho, anime is merely an advertisement to attract users, and the subsequent business expansion is the true source of revenue."

It then stated, "Toei Animation is an even more unique entity. If Toho excels at generating profits, Toei Animation excels at dominating the market for long periods. This is evident from the series it owns: 'Dragon Ball,' 'ONE PIECE,' 'Digimon Adventure,' 'GeGeGe no Kitaro,' and 'Precure.' All of these are exceptionally long-lived works, with some continuing for 20 or 30 years, and others for over 40 years. Even more surprisingly, they continue to generate profits to this day. This means Toei Animation does not need to make big bets on new works every year. While other companies are competing to land new hits, Toei Animation steadily earns revenue from its existing works."

The article emphasized, "Looking at changes in the industry, one often hears the cry, 'Japanese anime is over.' However, that is not actually the case. The market continues to expand, and overseas fans are increasing. Global demand for Japanese anime is, if anything, higher than in the past. What has changed is only the way profits are generated. What these financial results indicate is that the very rules of competition in the anime industry have changed. In the past, the game was 'who can make anime.' But from now on, the game will be 'who can manage a work.' In other words, anime companies are gradually transforming into IP management companies."

It then concluded, "Companies that can only produce anime will face increasingly difficult circumstances in the future. On the other hand, large corporations that control IP, capital, distribution networks, and the global market will become even more powerful. Therefore, what has truly ended is not the golden age of Japanese anime itself. What has ended is 'the golden age where simply making anime was profitable.' Over the next 10 years, Japanese anime itself will likely not decrease. However, the players who can survive and triumph until the end will undoubtedly become fewer and fewer." (Translation/Editing by Iwata)