On September 25, 2026, Chinese media outlet TMTPOST published an article titled 'Are AI short anime unprofitable? How did Japanese anime of the 80s and 90s find a way forward?'

The article explained, 'According to data released by China's National Radio and Television Administration on September 17, over 380,000 AI short anime were distributed just from January to August this year. Due to the massive supply, coupled with reduced platform playback revenue, many production teams have been unable to recoup their investments and are disappearing from the market. In the first quarter of this year alone, the number of active production companies drastically decreased from 1,216 to 698, with a withdrawal rate reaching 42%. Operating in the red, cost reductions, and a lack of commercialization. These are currently the three walls facing AI short anime producers.'

It also asked, 'These three walls were problems that the Japanese anime industry also faced in the 1980s and 90s. After the collapse of the bubble economy, television broadcasters' production budgets were drastically cut, and the animation production cost per episode plummeted. Many highly anticipated large-scale productions failed one after another, leading to the bankruptcy of many animation companies. However, just a few years later, the Japanese anime industry as a whole achieved profitability, and its production capacity doubled. Furthermore, 2D culture transformed from a niche hobby into a representative national culture of Japan, gaining both popularity and profit. What exactly did they do right?'

It then stated, 'The answer is simple. They involved more industries and created a community of shared interests. The anime industry back then, like current AI short anime, was an emerging industry with high promotional potential. Therefore, various companies from publishing, toys, DVDs, games, pachinko, cosmetics, apparel, and other sectors participated to form production committees. Each company co-invested, shared profits, and jointly bore risks. Eventually, local governments also joined, becoming important supporters of the IP industry. As a result, the annual number of Japanese anime productions expanded from approximately 100-200 to nearly 800, and the industry size grew by about 8 times.'

The article mentioned, 'AI short anime are replicating the three growth stages that Japanese anime went through: technological innovation, experimental anime, and overseas expansion. The starting point for Japanese anime was, in fact, also technological innovation. In the 1960s, Osamu Tezuka significantly improved the limited animation technique, dramatically enhancing production efficiency through methods like '3 frames per cel,' the use of still images, and the reuse of key animation. As a result, production costs were reduced to about one-tenth of Hollywood's, and production time was shortened from years to weeks. Current AI short anime are following the exact same path.'

Furthermore, it argued, 'The current attempts by Chinese companies are also similar to Japan's experimental anime. Experimental anime was an endeavor to explore new possibilities in anime expression through storytelling, art style, and large-scale projects, as cel animation technology entered its mature phase. In the 80s, the maturation of cel animation technology in Japan fostered world-renowned creators such as Mamoru Oshii, Katsuhiro Otomo, and Hideaki Anno. The creative contests actively held by Chinese AI companies today are essentially based on the same idea. They are discovering talented creators and nurturing promising teams through prize money and competitions.'

On the other hand, it emphasized, 'Only in overseas expansion do Japan and China differ significantly. Japanese anime in the 70s and 80s primarily focused on content export, producing and selling works to overseas TV stations, whereas current Chinese AI short anime are capturing overseas markets not only with their works but also with their distribution apps. Comparing the stages of development, AI short anime has covered the first 40 years of the Japanese anime industry's journey in just one year, but the remaining 20 years are still ahead.'

It then concluded, 'A system equivalent to a production committee is also required for current Chinese AI short anime, and they have already gained a massive influx of users. The focus of the next stage will be whether this user traffic can be linked to the real economy and converted into greater commercial value. However, compared to Japan's era of hundreds of productions per year, China has an overwhelming production volume of 300,000 in six months. How to support this massive supply is a major challenge. It is likely that this system will only realistically function once truly top-tier works emerge from the industry and stable commercial routes are established. That turning point may come in the next six months.' (Translated and Edited by Iwata)