Exclusive-Netflix Signs Partnership With Japanese Animation Company in Push For Anime

Netflix is co-producing three feature films with Studio Colorido, including the September release "Drifting Home," as part of its increased investment in original animation. The film will also have a domestic theatrical release.

Netflix has found success with anime in both Japan, where over 90% of users watch it, and globally, where half of users tuned in last year, with competitors such as Amazon (NASDAQ:AMZN) and Disney also racing to offer such content.

"To win globally, we must first win locally," Kaata Sakamoto, Japan's vice president of content, told Reuters in an interview.

Asia-Pacific was the lone bright light in Netflix's first-quarter financial report, which revealed the world's largest streaming service lost members for the first time in more than a decade. The company stated that it is experiencing "impressive growth" in the region, particularly in Japan, where it announced 5 million users in September 2020.

Netflix has a broader audience than the industry's traditional target group of ardent anime lovers, Studio Colorido President Koji Yamamoto told Reuters.

The studio prefers storylines in which humans are ripped from their everyday lives by extraordinary happenings, like as 2018's "Penguin Highway," which follows a primary kid as he explores the unusual apparition of penguins in his town.

This family-friendly programming aligns with Netflix's aim of growing its content offerings in Japan, which includes the introduction of over 40 original anime titles, scripted dramas such as "First Love," and unscripted series such as "Last One Standing."

"We are increasing our commitment in Japanese content, not just in terms of volume, but also in terms of genre and format diversity," Sakamoto explained.

Additionally, Netflix has made arrangements with domestic broadcasters, which have been sluggish to adopt streaming, for material such as Nippon TV's long-running variety show "Old Enough!" The show, which features extremely young children performing errands for the first time while being filmed by disguised production employees, has garnered online attention.