Sony Acquiring Kadokawa Could Impact The Whole Anime Industry

by

Sony Acquiring Kadokawa Could Impact The Whole Anime Industry

Key Takeaways

  • Sony may acquire Kadokawa, giving them full control of the anime production system.
  • If the deal goes through, Kadokawa’s goal is to produce 40 anime titles per year by 2023.
  • Other industry players may respond to the potential acquisition by forming their own production complexes or avoiding deals with Sony.

As a die-hard anime fan with decades of dedication to this captivating world, I can’t help but feel a mix of excitement and apprehension at the potential Sony-Kadokawa merger. If this deal goes through, it could significantly reshape the landscape of anime production, potentially leading to an unprecedented boom in content creation.

Lately, Bloomberg announced potential negotiations between Sony and Kadokawa, with the latter neither confirming nor denying finalized agreements. If successful, this move could transfer popular franchises such as Sword Art Online and Mushoku Tensei (along with numerous others, making it challenging to keep count) into Sony’s ownership. This potential acquisition raises questions about how this deal might impact the anime industry.

To clarify, although the potential deal hasn’t been finalized as of now, it might still come to pass. If it does, it will have to adhere to Japanese regulatory standards for completion. It is unlikely that this development will be viewed as oligopoly formation, but instead, it would be subjected to governmental scrutiny and auditing processes.

If the proposed deal goes through, Kadokawa – one of Japan’s largest publishing companies – will expand its business into game and anime production. This move may not directly affect fans, but it could bring significant changes to the industry as a whole.

The Rising of the Biggest Anime Complex

Sony could own all parts of the production system

To put it simply, the increase in anime production over the past three years is quite evident if we consider Kadokawa’s goal of producing 40 anime titles per year by 2023. If they have not yet reached that target, it indicates a clear rise in their anime production rate.

As a dedicated gamer, I’ve noticed an escalation in anime productions, and while that’s exciting, it often comes with its own set of challenges. Frequently, my favorite series get postponed during broadcast due to production teams struggling to keep up with the tight schedules for weekly anime creation — this is why many companies are opting for pre-animated content, wrapping up production before the air date.

Besides Kadokawa, Sony’s Aniplex is currently one of the leading anime production companies (Aniplex controls studios such as A-1 Pictures, known for numerous hits). However, up until now, Sony has only owned studios, distributors, and original content but typically does not possess the rights to manga or light novels. This deal aims to alter that scenario.

Sony Acquiring Kadokawa Could Impact The Whole Anime Industry

Recently, Aniplex has been partnering with Kadokawa, even hosting a joint event in August. Such collaboration wouldn’t surprise the public given that a merger is not unheard of. If this merge were to take place, it would likely create one of the largest anime production complexes, as a single entity would control the original manga/novel content, the studio, and the streaming/distribution channels for these series. However, if Sony were to acquire Kadokawa entirely rather than just purchasing shares, this would be a monumental deal, given that Sony also owns significant video game properties. It’s no surprise that Kadokawa’s share prices increased following the announcement of such a potential deal.

For quite some time, the largest anime production conglomerate was a collaboration between Shueisha (Shonen Jump), Toei Animation, and Bandai Namco. This partnership was instrumental in turning shows like Dragon Ball and One Piece into global sensations. However, it’s important to note that these companies don’t always work together as one unit. For instance, titles from Shueisha are often adapted by various studios, with Aniplex handling a significant portion of them now. Bandai Namco is typically involved in these adaptations, but they also independently own major franchises such as Gundam.

What About the Other Players in the Industry?

They will likely make their moves too

One possible outcome is the response from other players regarding this move. Visualizing their reactions can be challenging. Will they view it positively or express caution? It’s possible that large corporations like Shueisha might consider setting up their own production facilities, potentially collaborating with other businesses in a similar vein.

This scenario might lead other gamers to consider shifting allegiance from Sony, and instead partner with different studios/companies. In such a case, Netflix and Amazon Prime Video could attempt to capitalize on this by presenting themselves as potential Crunchyroll substitutes. However, past attempts at replicating Crunchyroll’s success have failed, suggesting that most Japanese production companies already recognize Crunchyroll as their optimal choice for reaching an international audience. It’s also challenging to foresee the exact influence this might have on niche streaming services like HiDive or Remow LATAM’s Anime Onegai.

In this situation, it’s uncertain whether the industry will stand idly by regarding this deal or take action. It’s tough to predict if they’ll opt out of collaborating with Sony or partner up with this new production complex instead. Companies generally dislike feeling limited in their options, but an appealing opportunity might be enough for them to accept it. Given that foreign companies are now involved in anime production, the international industry dynamics could shift as a result.

To finalize the agreement, it seems Kadokawa must both desire the deal and consider Sony’s offer advantageous – something we are yet to ascertain. The reasons for such decision could range from Kadokawa having difficulties in managing anime production and finding the proposal appealing, to a potential partial merger between the companies, or alternatively, the entire deal might not materialize at all.

Read More

2024-11-24 23:07