Tokyo, Japan – LINE Digital Frontier, the Japanese arm of WEBTOON Entertainment, has announced a strategic investment in No. 9 Inc., a prominent webcomic and manga studio based in Tokyo. This move marks Webtoon Entertainment’s first investment in a Japanese studio and signals a significant push to bolster its content pipeline in the rapidly growing Japanese market.
Strategic Investment to Fuel Growth
This investment is not just a financial transaction; it’s a strategic alliance aimed at combining the strengths of both companies. LINE Digital Frontier, which operates the popular LINE Manga app in Japan, seeks to leverage No. 9’s creative capabilities to produce more high-quality webcomics for both local and global audiences. This partnership will also see a LINE Digital Frontier representative appointed to No.9’s board, further solidifying the collaborative nature of this investment.
No. 9 Inc.: A Rising Star in Manga
Founded in 2016, No. 9 Inc. initially focused on digital comic brokerage services. However, it has rapidly expanded its operations into a full-fledged webtoon production studio. The studio has already garnered significant attention with hit series such as “Savior of Divine Blood” and “The Strongest Transcendent,” which both secured spots in the top 10 of the Line Manga 2024 rankings. These popular titles, produced by Studio No. 9, are available in multiple languages, including Korean, English, and French, through Naver Webtoon’s global platforms.
Webtoon’s Global Expansion Strategy
This investment is part of a broader strategy by Webtoon Entertainment to expand its global footprint. Japan, considered the birthplace of manga, is a crucial market for the company, and this move underscores its commitment to fostering a thriving creative ecosystem there. According to Yongsoo Kim, Chief Strategy Officer at Webtoon, Japan is expected to be the company’s fastest-growing market in the near term.
Strengthening Content Pipeline
The deal aims to significantly strengthen Webtoon’s content pipeline in Japan, a vital step as the demand for original content continues to rise. By collaborating with No. 9, Webtoon is poised to increase the portion of locally produced content, ensuring that it remains culturally relevant and appealing to its target audience. The investment comes after Webtoon Entertainment’s U.S. initial public offering (IPO) in June 2024.
LINE Manga’s Dominance in Japan
LINE Manga, operated by LINE Digital Frontier, has established itself as the leading comic app in Japan, consistently topping the market in terms of revenue. This success is further fueled by the growing popularity of webcomics in the Japanese market, which accounts for about 10% of the overall digital comic market. The platform’s dominance is a key element in Webtoon’s global expansion strategy. In 2024, LINE Manga topped the overall app market by revenue, including games, multiple times, according to Sensor Tower.
A Booming Market
The Japanese webcomic market was estimated to be around 50 billion yen in 2022, which demonstrates the size and potential of the market. As the number of homegrown webtoon titles increase, many of them are achieving significant milestones, such as anime and film adaptations, and surpassing monthly sales of 100 million yen. This growth provides an ideal environment for collaboration between studios like No. 9 and platforms like LINE Manga.
Building a Creative Ecosystem
Junkoo Kim, CEO and Founder of WEBTOON Entertainment, emphasized the importance of building a creative ecosystem in Japan. He stated, “Japan is the home of manga and some of the world’s most exciting comic art, so it’s a natural growth market for our global business.” This investment is a direct result of years of cultivating the IP and Creator Ecosystem in Japan, leading to strong growth and a string of successes for Webtoon.
Global Reach
The partnership between LINE Digital Frontier and No. 9 is not just about the Japanese market. The goal is to create content that resonates globally, with No. 9’s titles already being localized for WEBTOON Entertainment’s fans around the world in languages such as Korean, English, Chinese (Traditional), French, Thai, and Indonesian. This is a testament to the universal appeal of these stories and the potential for more international hits.
The Future of Manga
This collaboration between LINE Digital Frontier and No. 9 is expected to catalyze the further development of the Japanese webtoon market and its reach to global audience. The shared vision of “Creating the Future of Manga,” demonstrates both companies’ commitment to innovation and driving the industry forward. By combining No. 9’s production expertise with LINE Digital Frontier’s distribution capabilities, they are aiming to redefine the digital manga landscape.
Webtoon’s Broader Strategy
Webtoon Entertainment’s move to invest in Japanese webcomic studios is also part of their strategy to focus on the entertainment sector in Japan. The company aims to make movies and produce goods based on its digital comics, further expanding its intellectual property business for growth. This includes plans to produce anime and dramas from popular Japanese webtoons, capitalizing on the global popularity of Japanese animation.
LINE’s Super App Ecosystem
LINE, the parent company of LINE Digital Frontier, operates on the strategic principle of “adapt or innovate.” They aim to create digital connections by supporting relationships between people, seamlessly integrating information, and delivering services. The LINE app itself has transformed from a messaging service into a super app, offering a diverse array of services from entertainment to fintech. This broader ecosystem benefits LINE Manga by providing multiple avenues for user engagement and cross-promotion.
A Step Towards Global Success
The partnership between LINE Digital Frontier and No.9 is expected to catalyze the further development of the Japanese webtoon market and its reach to global audience. This strategic investment is a testament to the commitment by both companies to create compelling content and to strengthen their position in the global digital comics industry. As the demand for webcomics continues to grow, this collaboration positions both LINE Digital Frontier and No. 9 Inc. for future success.
