Bloomberg reports that Crunchyroll is unlikely to meet its “25 by 25” plan, aka getting to 25 million subscribers by the end of 2025. The article, released earlier today, cites competition from Netflix, Disney, and Amazon, as one of the reasons while also sharing the details of current company culture that emerged after they talked with 18 current and former employees.
Crunchyroll as we know it today is the result of an acquisition by Sony’s Funimation. Shortly after the $1.175 billion deal went through, Sony announced that Funimation (alongside Wakanim and remains of AnimeLab) would be merging under Crunchyroll’s brand, which at the time was undeniably stronger. Although Funimation had a substantial history and anime library, including a store, Crunchyroll had the “modern” look, fun mascots, awards, and perhaps most important of all (for anime fans outside of the US): better availability worldwide. Bloomberg report details how the merger did not go so smoothly as many Crunchyroll executives and other employees were replaced with their counterparts from Funimation or outside and how the company went through “at least three rounds of lay-offs since the acquisition.”
Crunchyroll’s expansion to Southeast Asia (mainly India) was briefly brought up: although it helps anime fans access content more easily, at a $1 subscription fee the strategy is not profitable, according to insiders. Bloomberg’s Cecilia D’Anastasio and Takashi Mochizuki also look at Crunchyroll’s expansion into games and merchandise efforts, both of which do not seem to be doing too well as they’ve been hit with lay-offs during the summer, according to the report.
In addition, the report highlights employees’ comments aimed at Markus Gerdemann, a senior vice president, who is currently working on marketing. According to the statements, Gerdemann created a “boys’ club” atmosphere by bringing in his former coworkers, brought down team morale, and was eventually reported for misconduct, twice. Once for creating a hostile and once for sexist behavior. An internal investigation cleared him.
Bloomberg also shares that their team managed to see an e-mail sent by Gerdemann earlier this year, in which he writes “Due to ongoing acquisition discussions, we decided not to further lean into the promotion of Dandadan.” Dandadan anime, which ended yesterday, was streamed on both Crunchyroll and Netflix, with Toho as the distributor. Prior to this email, Gerdemann also oversaw a One Piece event held during the San Diego Comic-Con, which ended with technical difficulties. None of the companies or individuals mentioned in the article were willing to give a statement to Bloomberg.
Sony recently formed a strategic and capital alliance with Kadokawa and now owns approximately 10% of its shares. The company now represents one of the biggest, if not the biggest, players in the anime production industry.
The full article can be read here.
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