Netflix One Of The Key Beneficiaries Of $60B Anime Boom, Says Jefferies — Here Are The Others

Jefferies, a global investment bank, has identified three major companies that are poised to benefit from the booming anime industry, which is expected to reach a value of $60 billion by 2030.

What Happened: The investment bank has pointed out Netflix Inc. (NASDAQ:NFLX), Sony Group (NYSE:SONY), and Bandai Namco (OTC:NCBDF) (OTC:NCBDY) as the top beneficiaries of the expanding anime market, reported CNBC.

Jefferies’ analysts noted that the global entertainment industry is increasingly focusing on anime-related businesses as a core part of their growth strategies. The primary driver of this trend is the rapid expansion of the overseas market, which has grown to match the size of the Japanese market since the onset of the COVID-19 pandemic.

According to the analysts, “anime has become a mainstream culture in the U.S./Europe, with significant potential for expansion,” with significant potential for further expansion. They anticipate the market to double from $31.2 billion in 2023 to $60.1 billion by 2030.

The analysts predict that this growth will be driven by increased anime distribution on streaming platforms and a surge in licensing revenues from merchandise and advertising use.

Jefferies also highlighted the significant global impact of Japanese anime IP, with the top six franchises generating a combined revenue of $311 billion, dwarfing the Marvel Cinematic Universe’s $30 billion.

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Netflix, which has been actively licensing and funding several anime series, is expected to continue its anime strategy into the foreseeable future. Sony Group, described as a leader in anime production and streaming, is also set to benefit from the anime market.

Bandai Namco, known for leveraging anime IP for various products and digital games, is experiencing rising anime IP popularity through overseas sales expansion. It has produced popular games like the Shonen Jump series and Dragon Ball franchise.

Why It Matters: The anime industry has been experiencing significant growth and diversification, with companies like BloomZ Inc. (NASDAQ:BLMZ) expanding their revenue streams through strategic acquisitions and project rights.

This growth has also been reflected in the music industry, with Spotify Technology SA (NYSE:SPOT) reporting a 395% surge in anime music streams since 2021.

Meanwhile, Sony Group has been actively expanding its global presence in the gaming industry through strategic collaborations, further solidifying its position in the anime market.

This growth, however, has also raised concerns about copyright infringement, as seen in the case of a Japanese YouTuber who was sentenced to two years in prison for monetizing gameplay videos without permission from publishers.

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Image Via Pixabay

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote