Webtoon Entertainment, a major player in the digital comics sphere, is strategically investing in Japanese webcomic studio No. 9 amid a significant boom in the manga market. This move signals Webtoon’s commitment to strengthening its content pipeline and expanding its global reach, particularly in the rapidly growing Japanese market.
Strategic Investment in No. 9
LINE Digital Frontier, the Japanese arm of Webtoon, is acquiring a minority stake in No. 9, a Tokyo-based studio known for producing popular webcomics like “Savior of Divine Blood” and “The Strongest Transcendent.” This investment, Webtoon’s first since its U.S. initial public offering (IPO) in June, underscores the company’s focus on local content creation.
Strengthening Content Pipeline
According to Yongsoo Kim, Chief Strategy Officer at Webtoon, this strategic investment aims to bolster Webtoon’s content offerings in Japan. He emphasized the importance of locally produced content in driving growth.
Japan: A Key Growth Market
While Webtoon anticipates significant expansion in the U.S. market over the next few years, Kim stated that Japan is projected to be the company’s fastest-growing market in the near term. This makes the investment in a Japanese studio a logical step for the company’s global ambitions.
No. 9’s Growing Popularity
No. 9, founded in 2016, began as a digital comic brokerage and has since expanded into webtoon production. Their webtoons have gained considerable popularity, with “Savior of Divine Blood” and “The Strongest Transcendent” both ranking in the Top 10 on the Line Manga charts in 2024. These works are also available in Korean, English, and French through Naver Webtoon’s global services, highlighting their international appeal. This partnership is expected to elevate both companies on a global scale and create more popular content.
The Booming Manga Market
The investment comes at a time when the manga market is experiencing substantial growth.
Global Expansion
The global manga market is predicted to reach $66.2 billion by 2033, with a compound annual growth rate (CAGR) of 18.2% from 2024. This growth is fueled by the increasing popularity of Japanese culture and manga’s unique storytelling style. The Asia-Pacific region, particularly Japan, is expected to dominate the market.
Digital vs. Print
While printed manga books remain popular, the online segment is projected to dominate in revenue, supported by the convenience of e-commerce platforms.
Japan’s Manga Market Size
The manga market in Japan alone is projected to reach $19.3 billion by 2030, with a CAGR of 15.4% from 2024 to 2030. This indicates the enormous potential within the Japanese market, making Webtoon’s investment particularly strategic.
Webtoon’s Global Strategy
This investment aligns with Webtoon’s broader global expansion strategy.
Local Content is Key
Webtoon’s approach emphasizes the importance of developing local content and fostering creative ecosystems in different regions. This involves finding local creators and producing content that resonates with local audiences.
Webtoon’s Global Presence
Webtoon has a significant global presence, with over 82 million global users and thousands of webtoon series released. The platform is available in multiple languages including English, Spanish, and French.
Expansion in Japan
Webtoon’s Japanese app, Line Manga, has achieved significant success, topping the local app market by revenue in August and September, according to Sensor Tower. This success further validates Webtoon’s focus on the Japanese market.
Adapting to New Formats
Webtoons have also proven to be successful source material for TV series, movies and games, which is also pushing the demand for IP.
Webtoon’s Journey
Webtoon’s journey has been marked by strategic moves to solidify its position as a global leader in digital comics.
From Naver to Global Leader
Originally launched in South Korea as Naver Webtoon in 2004, the platform expanded globally as Line Webtoon in 2014. In 2019, it was rebranded as Webtoon in English. This growth highlights Webtoon’s ability to adapt and thrive in different markets.
NASDAQ Listing
In June 2024, Webtoon Entertainment went public on the NASDAQ, a significant milestone in the company’s growth. The IPO has provided Webtoon with the capital to further pursue its strategic goals, including international expansion and content development.
Webtoon Studios
Webtoon has also expanded its reach through Webtoon Studios, which focuses on adapting its vast library of titles into film, television, and other forms of entertainment. This multi-platform approach allows Webtoon to capitalize on its intellectual property (IP) and reach new audiences.
The Rise of Webtoons
The webtoon format itself has rapidly gained popularity, especially among younger generations, due to its accessibility on smartphones and innovative features.
Korean Origins
Webtoons originated in South Korea and have become a significant part of the Korean Wave (Hallyu), influencing pop culture globally.
Innovative Features
Webtoons often incorporate animation effects, background music, and original soundtracks, enhancing the reading experience. The vertical scrolling format is particularly well-suited for mobile devices.
Global Appeal
Webtoons have found success in numerous countries. Besides Japan, South Korea, China, the United States, and Southeast Asia are significant markets.
Government Support
The South Korean government is actively supporting the webtoon industry, implementing policies to foster its growth and global expansion.
Project No. 9
While not as widely known as other studios, Project No. 9 has produced popular anime titles.
Studio’s Work
Project No. 9 was established in 2009 and has animated several popular shows, including “My Tiny Senpai”, “Higehiro”, and “Angel Next Door”. While their art style is considered decent, some fans have noted that animation can be subpar.
Future Outlook
Webtoon’s investment in No. 9, signals the company’s commitment to growing the Japanese creative ecosystem. This collaboration could lead to even more popular content and further strengthen Webtoon’s position in the global webcomic market.
