Hulu and Crunchyroll are Losing the Anime Streaming War to Netflix

The anime streaming landscape is shifting rapidly, and Netflix has emerged as a surprising leader in an industry long dominated by niche platforms like Crunchyroll and Hulu. According to recent reports, Netflix’s strategy of diversifying its anime library and leveraging its global reach is paying off, with the platform generating more anime revenue than its rivals combined.

Netflix’s Dominance in Anime Streaming Revenue

A report by Parrot Analytics and the Association of Japanese Animations (AJA) highlighted some eye-opening figures for the anime industry in 2023. The global anime market raked in a total of $19.8 billion, with streaming services contributing $5.5 billion—a 41% share of which originated from North America. Netflix alone accounted for 38% of the global anime streaming revenue, bringing in an impressive $2.074 billion.

In contrast, Crunchyroll—widely regarded as the go-to platform for anime purists—focused more on merchandising and community-driven initiatives. While Crunchyroll reported $1 billion in retail sales of licensed consumer products and experiences in 2023, its streaming revenue paled compared to Netflix’s towering figures.

Hulu, despite having a respectable anime library, has struggled to keep pace. Its broader focus on live TV, Western series, and movies means anime remains a smaller part of its offerings. This lack of specialization has allowed Netflix to seize the opportunity and cater to both casual viewers and hardcore anime fans alike.

Netflix’s Winning Formula: Exclusive Partnerships and Original Anime

Netflix’s rise in anime can be attributed to a calculated and aggressive approach:

1. Exclusive Content: Netflix has secured high-profile anime exclusives, including Attack on Titan: Final Season Part 3, Demon Slayer: Mugen Train Arc, and One Piece live-action adaptations. These titles appeal to global audiences while leveraging existing fandoms.
2. Original Productions: Netflix is betting big on its own anime productions, such as Castlevania: Nocturne, Cyberpunk: Edgerunners, and Yasuke. These shows blend anime aesthetics with Western storytelling, broadening their appeal.
3. Global Reach: Netflix’s massive international footprint has enabled it to introduce anime to regions traditionally untapped by niche platforms like Crunchyroll. Its interface, multilingual subtitles, and dubbing further enhance accessibility.
4. Marketing Power: The platform’s robust marketing machine ensures its anime titles are visible to subscribers who might otherwise never consider anime. Cross-promotions with global brands have further fueled interest.

What Does This Mean for Crunchyroll and Hulu?

For Crunchyroll, the competition with Netflix highlights a growing divide between anime purists and casual fans. Crunchyroll’s dedicated library remains unmatched for its depth, housing beloved series like Naruto, My Hero Academia, and Jujutsu Kaisen. However, its niche focus might limit its scalability compared to Netflix’s mainstream appeal.

Hulu, on the other hand, faces a broader identity crisis. As Disney looks to consolidate its streaming offerings, Hulu’s anime catalog might face cuts or rebranding, further weakening its position in the anime streaming market.

Disney+: A Late Challenger in the Anime Arena

While platforms like Netflix and Crunchyroll have been battling for anime dominance for years, Disney+ has recently thrown its hat into the ring with an ambitious strategy to cater to anime enthusiasts. The streaming giant surprised many by securing exclusive streaming rights to high-profile anime like Bleach: Thousand-Year Blood War and the sci-fi series Tatami Time Machine Blues. These moves signal Disney’s intent to carve out a space in the anime streaming market, a space traditionally dominated by platforms with deeper anime catalogs.

However, Disney+’s approach has been met with mixed reactions. While the exclusive acquisition of Bleach delighted longtime fans, the platform has faced criticism for its uneven global release schedule, particularly in regions outside Japan. For example, fans in some countries experienced delays in accessing episodes, sparking frustration and social media backlash.

Critics argue that while Disney+ has the brand recognition and resources to challenge established players, it lacks the deep catalog of classics and modern hits that platforms like Crunchyroll have spent decades curating. To Disney’s credit, their foray into anime has been bolstered by partnerships with Japanese studios, such as their collaboration with Studio Colorido for the original film Drifting Home. Still, the platform’s success in anime streaming hinges on whether it can expand its offerings and refine its delivery to match the expectations of seasoned anime fans.

The Future of Anime Streaming

With the global demand for anime continuing to grow, streaming platforms are scrambling to secure their place in the market. The AJA report noted that anime’s revenue potential remains untapped in several international markets, particularly in Europe and South America. Netflix’s global approach and ability to diversify its library make it well-positioned to dominate these emerging regions.

Meanwhile, Crunchyroll and Hulu may need to innovate. Crunchyroll could expand its focus beyond traditional anime offerings, perhaps venturing into anime-adjacent content like manga adaptations or light novel streaming. Hulu’s success might hinge on Disney’s overall strategy for its streaming empire, which could include merging Hulu content into Disney+.

Netflix is the Anime Titan Hulu and Crunchyroll Need to Attack

Netflix’s dominance in anime streaming underscores its ability to adapt and capture new markets. While Crunchyroll and Hulu remain competitive in their own ways, the sheer scale and accessibility of Netflix’s platform give it a significant edge in this ongoing battle.

Whether this trend will force traditional anime platforms to evolve or consolidate remains to be seen. One thing is certain: the streaming wars have extended to anime, and Netflix isn’t just competing—it’s leading the charge.

Sources:

• CBR: Netflix vs. Crunchyroll and Hulu
• Polygon: Best Anime of 2024
• Anime News Network: The Future of Streaming
• Parrot Analytics Anime Streaming Report