Sony to Invest Billions into Original Content with Keen Eye on Anime and AI

Sony’s strategic shift towards animation content: The Japanese tech giant is redirecting billions into producing original content, with a significant focus on animated content, particularly anime.

• Sony’s chief financial officer Hiroki Totoki acknowledges the company’s lack of fostered IP from the beginning stages, which is seen as a critical issue.
• The company aims to leverage its Crunchyroll streaming service and PlayStation Network to expand its presence in the animation market.
• Despite Sony’s roots in consumer electronics, approximately 60% of its annual revenue now comes from games, films, and music.

Crunchyroll’s ambitious growth plans: Sony’s anime streaming service Crunchyroll currently releases around 200 titles annually and aims to increase this output.

• The company plans to use its PlayStation Network service to grow Crunchyroll’s subscriber base, which currently stands at about 15 million.
• Totoki notes that while 30% of PlayStation Network service customers watch anime, only about 5% have Crunchyroll accounts, indicating significant growth potential.

Challenges in anime production: The anime industry faces significant hurdles, including rising costs and a shortage of skilled animators.

• Crunchyroll president Rahul Purini reports that anime production costs have increased by 40-60% in recent years due to growing budgets in Japan and a limited pool of animators.
• Despite rising production costs, Japanese animation workers often report being overworked, underpaid, and subject to workplace harassment.

Sony’s multi-pronged approach to growth: The company is exploring various strategies to overcome industry challenges and boost its animation output.

• Sony is looking to co-produce more shows, train additional animators, and leverage technology in the content creation process.
• The company is developing AnimeCanvas, a new animation production software, through its subsidiary Aniplex’s production studios A-1 Pictures and CloverWorks.
• Sony is considering launching an “academy” through Aniplex and Crunchyroll to nurture anime creators in the global market, though this program has not yet been officially launched.

Balancing technology and creativity: Sony is exploring the use of artificial intelligence in animation production while being mindful of creators’ rights.

• CEO Kenichiro Yoshida acknowledges the challenge of balancing technological advancements with protecting creators’ rights in the animation process.
• The company aims to use technology to improve production efficiency and enhance output quality, as evidenced by the development of AnimeCanvas software.

Industry implications and future outlook: Sony’s push into animation content production could have far-reaching effects on the anime industry and global entertainment landscape.

• The company’s investment in original content creation, particularly in animation, may lead to increased competition and innovation in the anime market.
• Sony’s efforts to address the animator shortage and improve working conditions could potentially lead to positive changes in the industry’s labor practices.
• The integration of technology, including AI, in animation production may set new standards for efficiency and quality in the industry, potentially influencing other major players to follow suit.