Webtoon, the South Korean digital comics giant, is making a strategic move to further solidify its position in the global manga market by investing in Japanese webcomic studio, Project No. 9. This investment comes amidst a period of significant growth for the manga industry, both in Japan and internationally, as digital platforms revolutionize how comics are consumed.
Strategic Investment in Project No. 9
While specific financial details of the investment haven’t been disclosed, this partnership signals Webtoon’s intent to deepen its roots in Japan, the birthplace of manga. Project No. 9, a Japanese animation studio established in 2009, is known for its work on popular anime series such as “Ro-Kyu-Bu!”, “Higehiro”, “Angel Next Door” and “My Stepmom’s Daughter is My Ex”. Despite some criticism regarding animation quality, their works have garnered a dedicated fanbase. This collaboration could see Webtoon leveraging Project No. 9’s animation expertise to enhance its own content or adapt popular webtoons into anime.
This investment comes at a crucial time for Webtoon as it aggressively seeks to challenge Japan’s long-standing dominance in the manga industry. Webtoon’s parent company, Naver, has been making significant moves to expand its global footprint. In 2024, Webtoon Entertainment went public on the NASDAQ stock exchange, aiming to raise capital for further expansion and development. This IPO signals the company’s ambition to compete directly with traditional Japanese manga publishers.
Manga Market on a Meteoric Rise
The manga market is experiencing substantial growth, both in Japan and worldwide. Several factors contribute to this expansion, including the rising popularity of Japanese culture, increased accessibility through digital platforms, and anime adaptations of popular manga series.
Japanese Market Growth
The Japanese manga market is projected to reach a staggering USD 19.3 billion by 2030, with a compound annual growth rate (CAGR) of 15.4% from 2024 to 2030. This growth is fueled by both printed and digital manga sales, with digital platforms gaining popularity among younger audiences due to convenience and accessibility. Action and Adventure genres currently lead in revenue, but Sci-Fi & Fantasy are predicted to grow at the fastest rate.
Global Manga Market
Globally, the manga market is expected to reach USD 66.2 billion by 2033, growing at a CAGR of 18.2%. The accessibility of manga content through online platforms and the increasing popularity of anime adaptations are key drivers of this growth. The printed book segment also continues to thrive due to the appeal of high-quality hardcover editions for collectors, while the online segment is predicted to dominate with over 50% of the market share. Asia-Pacific is expected to remain the dominant region, driven largely by Japan’s strong demand for manga.
Webtoon’s Expansion Strategy
Webtoon’s investment in Project No. 9 is part of a broader strategy to establish itself as a major player in the global comics and entertainment industry. The company is not only focused on publishing top-level content but also on helping creators market and sell their work. Here’s how Webtoon plans to achieve its goals:
IPO and Capital Injection
The IPO on the NASDAQ is set to inject significant capital into the company, enabling it to expand its creator base and invest in technology, including Artificial Intelligence (AI) to boost productivity. This financial boost will allow Webtoon to further solidify its position as a leader in digital comic publishing.
Focus on Intellectual Property (IP)
Webtoon is actively expanding its IP business, focusing on turning its digital comics into movies, TV series, and merchandise. This includes collaborations with production companies in Japan and South Korea to create live-action adaptations and animated series based on its popular webtoons. One notable example is the Japanese remake of the popular webtoon “Nevertheless,” titled “The Shapes of Love,” produced by Webtoon’s Studio N, in collaboration with SLL and Babel Label and set to air on Netflix and ABEMA in December 2024.
Global Reach
Webtoon is leveraging its partnerships with electronic comic services in over 150 countries and regions to translate and distribute content globally. This has led to successes such as “Savior of Divine Blood” and “ataware Reijou ga Dansou suru Riyuu,” which have both entered the top 10 trending rankings on the American electronic comic service WEBTOON. The company also maintains a strong presence in the U.S., holding a 70.5% market share in the webtoon platform market as of 2022.
Focus on Digital Platforms
The company is capitalizing on the growing trend of digital manga consumption. Webtoon’s platform and services such as LINE Manga in Japan, offer subscription models, providing readers with instant access to a wide variety of titles. This strategy is particularly effective in reaching younger audiences who are increasingly accustomed to digital consumption.
Webtoon’s Competitive Landscape
While Webtoon has made significant strides, the market remains competitive. Naver Webtoon’s main competitor in Japan is Kakao Japan, which operates “Piccoma”, another popular manga service. Both companies are vying for dominance in the Japanese webtoon market.
Naver vs. Kakao
Naver Webtoon, through its LINE Manga service, has established itself as the biggest webtoon service in Japan, with over 40 million downloads. Kakao’s Piccoma has also achieved success with an innovative business model, releasing chapters one by one daily which allows users to read a chapter for free if they wait 24 hours. This competitive landscape is driving innovation and growth within the Japanese digital comic market.
The Future of Webtoons and Manga
The investment in Project No. 9 signals Webtoon’s long-term commitment to the Japanese market and a desire to integrate more traditional manga elements into their platform. This approach could appeal to Japanese consumers, who may favor established animation styles. Webtoon’s expansion also highlights the growing interconnectedness of the manga and webtoon industries. Korean webtoons are expanding globally through high-quality translations and fostering local creators, as seen in Kakao Entertainment’s approach to localization, where cultural nuances are carefully considered when translating webtoons. The global push and innovative strategies employed by companies like Webtoon, indicate a promising future for the industry. With its diverse range of genres and strong target audience, the manga market is poised to see tremendous growth in the coming years.
Webtoon’s strategy to expand its reach into the Japanese market and to produce IP from its titles indicates that it intends to continue to innovate and bring new forms of content to a growing audience. By investing in Japanese studios like Project No. 9, Webtoon is positioning itself as a serious contender in the global manga market. This move may not only bring more options to readers but also drive innovation in the wider comics industry.
