The Future of the Anime Industry in the U.S.

Back in the early 2000’s, “anime” became a big buzzword in America, and anything from Japan was deemed to be “cool.” However, as the decade progressed, the “anime bubble” that formed started to burst. While the cooling of the economy in the United States may have helped accelerate the burst, the bubble was already starting to burst before then.

By the end of the 2000’s, Geneon Entertainment ceased distributing anime in the United States, and anime distributor Central Park Media filed for Chapter 7 bankruptcy and closed its doors. On top of that, two anime periodicals were discontinued (Newtype USA in 2008, and Anime Insider in 2009). Has the worst of the bubble burst happened, or is there more to come?

Now, I admit that I don’t have a crystal ball and I can’t actually see into the future. However, I can take what has happened so far, and try to decide how events can logically progress from here. First, I will tackle anime distribution.

By the time the anime industry hits bottom, I believe there will only be one or two major anime distributors left in business, with perhaps a smaller distributor still around. From what I’ve seen, I feel that I can predict that one of the big distributors that will be left standing will be FUNimation Entertainment. Not only has the company been picking up the rights to a lot of big titles, but FUNimation has also been embracing the Internet as a distribution tool.

When it comes to anime periodicals, there are basically only two major ones left (Otaku USA and Protoculture Addicts). There are also some minor free periodicals that are distributed every few months by some retailers. But when it comes to the major periodicals, I’m not sure there’s much of a market left for them, especially with the Internet being available as a resource to get up-to-date anime news. Otaku USA already stopped distributing DVD samplers with all four issues that are released each year. Instead, a code is available in the first three issues of the year to access content online, and a DVD sampler will only be released in the last issue of the year. Of the periodicals, I think Protoculture Addicts might be able to survive, primarily due to the fact that it’s affiliated with the Anime News Network website. However, in order to survive, it would probably have to become an online publication only.

It has also become harder to find anime on television. The Anime Network went off the air and has now become a cable “on demand” service only. The FUNimation Network is only available in a few markets, and in most markets, it’s not even on for 24 hours a day. Even Cartoon Network, which had embraced anime in such blocks as “Miguzi” and “Adult Swim,” has been backing off of the anime programming (with the main exceptions being anime aimed at children, such as Pokemon and Bakugan Battle Brawlers).

In all honesty, I believe the future for the anime industry lies on the Internet. In the coming years, I think it will become harder to find much anime in the brick and mortar stores outside of the big “A-list” titles. For those who want some of the less popular anime, I see online ordering becoming the main way of acquiring them on DVD. I can also see the distributors also relying more on digital distribution, whether it’s on iTunes or on sites such as Crunchyroll, Hulu, and Joost. I also believe that websites such as Anime News Network will be leading the charge on the Internet for anime fandom.

While, in some respects, it’s been disappointing to see how the anime industry in America has been faltering, I’m trying to keep faith that a renaissance is coming for the industry. In the end, I believe this renaissance will take place on the Internet. While the anime industry in America may never be as popular or flourish as much as it did in the early 2000’s, I do believe that in time, it will not only change, but stabilize. After the industry stabilizes, I think we will see the beginning of a new “anime renaissance.”