The Japanese anime industry hit a record new high, hitting USD 25 billion in 2024, which is a 14.8% increase from the previous year. However, as anime becomes more popular, a new report from Teikoku Databank (TDB) has suggested that the production studios responsible for creating these anime are not enjoying the best of times.
According to the report, eight anime studios ceased operations between January and September 2025, with two filing for bankruptcy and six closing down. This marks the third consecutive year that the number of studios exiting the market during this period has increased.
For comparison, only four anime studios had shut down during the same period in 2024, though that number rose to 10 by the year’s end. In 2023, a total of eight studios closed. If the current rate of closures continues through 2025, the total will be on par with 2018, which holds the record for the most closures in a single year at 16.
While the official number of closures in 2025 stand at eight, the figure is assumed to be even more when taking into consideration sub-contractors and other small studios.
Some notable examples of such closures include Ekachi Epilka, the 3DCG Studio5 and Cloud Hearts which was infamous for its production of Whisper Me a Love Song.
The financial health of studios is declining across the industry, with 60% of prime contractors reporting worsened performance in fiscal year 2024. This is largely attributed to the industry’s production committee structure. In this model, investors fund a project and retain control of the valuable intellectual property (IP) rights.
The studios creating the anime are often left out of these committees, paid only a one-time production fee instead of royalties. This model effectively cuts studios off from the lucrative downstream profits from global merchandise sales and international streaming. As a result, studios are left with a system where they can barely break even.
The financial strain is even more severe for the subcontractors they depend on to finish the work. Of the 811 animation studios in Japan (as of a 2020 AJA survey), most are small or new and lack the resources to secure a seat on a production committee. These smaller studios receive minimal, often insufficient, payments that trickle down the chain, causing them to frequently operate at a deficit and struggle to survive, which in turn destabilizes the entire production ecosystem.
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. This system barely covers production costs, which can range from 300–600 million yen for a 12-episode season.
A January 2024 Japan Research Institute (JRI) report reinforces this, noting studios earn only 6% of overseas sales revenue and 16% of domestic sales. This system is the primary reason anime production companies operate under severe financial constraints, making it difficult to raise wages for animators even amid a critical labor shortage.
The TDB report describes this situation in the anime industry as “profitless boom,” where studios are falling into a state of being unable to pass rising costs on to the final price.
This flawed financial structure has made the industry highly vulnerable to current economic pressures. Studios are now grappling with the fallout from a post-COVID surge in orders that has overwhelmed their production capacity. This is compounded by soaring production costs, rising labor costs for in-demand animators, and a weak yen that has dramatically increased the price of overseas outsourcing.
The strain on the production pipeline is now visible to consumers, as a manpower shortage has led to a series of widely reported postponements for new anime scheduled to air in the Fall 2025 season.
For the sustainable growth of the anime industry, the TDB report concludes there is an urgent need for support measures, including “establishing a fair business environment and fostering human resources.”
Source: Teikoku Databank Report
