Tokyo, Japan – Eight Japanese anime production companies have exited the market between January and September 2025, according to a recent report by financial research firm Teikoku Databank. This includes two bankruptcies and six business suspensions or dissolutions, marking the third consecutive year of increasing closures within the industry. The current rate puts 2025 on track to match the record high of 16 closures seen in 2018.
The report highlights a paradox within the booming global anime market: while demand and overall market size are at record highs, many studios are struggling with a “profitless boom” driven by severe manpower shortages, escalating production costs, and a restrictive production committee system.
The Teikoku Databank Report: Key Findings
Teikoku Databank’s analysis, published on November 5, reveals that the closures are not limited to small subcontractors but also impact “prime contractors” capable of handling complete anime projects. Approximately half of the anime production companies that have exited the market in the past five years were prime contractors, including notable examples like Cloud Hearts and EKACHI EPILKA.
The financial health of studios is reportedly declining across the industry, with roughly 60% of prime contractors reporting worsened performance in fiscal year 2024. This trend comes despite the Japanese anime industry hitting a record high of USD 25 billion in 2024, a 14.8% increase from the previous year.
Contributing Factors to Studio Closures
Several interconnected issues contribute to the precarious financial state of anime production companies:
Manpower Shortages and Production Overload
A severe shortage of skilled animators and other personnel is a primary driver of the “profitless boom.” Studios are facing a surge in project orders that outpace their capacity, leading to extended production periods and increased labor costs. This strain on the production pipeline has become visible to consumers, with numerous postponements for new anime scheduled to air in the Fall 2025 season.
Rising Costs and Weak Yen
Production costs are soaring, and rising labor expenses for in-demand animators are eating into already thin profit margins. Furthermore, studios that resort to overseas outsourcing to compensate for domestic shortages are facing dramatically increased costs due to the weak Japanese Yen against the dollar. This leaves studios unable to pass these rising costs on to the final price of their productions.
The Production Committee System
The prevalent production committee system in the anime industry is identified as a critical structural flaw. In this model, a group of investors – such as distributors, music companies, and broadcasters – fund a project and retain control of the valuable intellectual property (IP) rights. Animation studios are often hired as contractors, receiving only a one-time production fee rather than royalties or a share of the profits from a hit series. This structure prevents studios from building a stable revenue base from their successful works, hindering their ability to offer better wages or retain talent. The Association of Japanese Animations (AJA) noted that while the total market value reached ¥3.3465 trillion in 2023, production studios received only ¥427.2 billion, or just 13% of the total market scale.
Broader Implications for the Anime Industry
The continuous closure of studios, including prime contractors, signals a deeper crisis beneath the surface of anime’s global popularity. The report warns that without systemic change, the sustainable growth of the anime industry remains at severe risk. The inability of studios to retain talent and secure fair compensation could ultimately impact the quality and quantity of anime produced, despite booming international demand.
Teikoku Databank emphasizes the urgent need for support measures, including “establishing a fair business environment and fostering human resources,” to help anime production companies stabilize and thrive. While some initiatives from big publishers and the Japanese government are underway to improve working conditions and revenue distribution, immediate action is crucial for the industry’s long-term health.
