Jeffries said the popularity of anime, or animation produced in Japan, has boomed in recent years, with several global entertainment companies leading the way. “Many companies now position animation-related businesses as the core of their growth strategies,” the investment bank analyst said in an October 9 stock research report. The key driver, they say, is overseas expansion. “Overseas market size has expanded rapidly at a compound annual growth rate of 20% in the past 10 years, and since Covid-19, the overseas market size has grown to the same size as the Japanese market,” the analyst explained. “Animation has become a mainstream culture in the United States/Europe and has huge potential for expansion.” Looking ahead, analysts expect the market to double from $31.2 billion in 2023 to 2030, according to estimates from Grand View Research $60.1 billion. This will be accompanied by increased distribution of anime on streaming platforms and growth in licensing revenue through merchandise and advertising usage, they wrote. “Japanese animation IP (intellectual property rights) has huge influence even on a global scale,” they added. Jeffries said the top six franchises – including “Pokémon,” Sanrio’s Hello Kitty and Bandai Namco’s “Dragon Ball” – have collectively earned $311 billion, while Marvel movies Cumulative revenue for Universe is $30 billion. Given this potential, the investment bank has identified three global stocks with a Buy rating that are “well-positioned in the anime market.” Jeffries pointed out that Netflix, a streaming platform, “tilts towards animation” by licensing and funding multiple series. Its popular anime shows include Demon Slayer: Kimetsu no Yaiba, Dungeon Taste, Jujutsu Kaisen and My Hero Academia, all of which have ranked among the top weekly global non-English content in each country since 2021. 10 people. “We expect Netflix’s anime strategy of licensing top-performing Japanese anime series and funding its own animated and live-action anime series to continue for the foreseeable future,” analysts at the bank wrote. Sony Group The investment bank describes Sony Group as “a world leader in animation production and streaming media.” The entertainment giant already operates anime planning and production company Aniplex in its music segment and anime streaming platform Crunchyroll in its picture segment. Going forward, it wants to provide more support to the animation industry, analysts at Jefferies wrote. Bandai Namco Jefferies pointed out that Bandai Namco uses animation IP to create toys and trading cards, anime character snacks and digital games. Analysts at the investment bank wrote that the “Shounen Jump” and “Dragon Ball” series are among the popular games it produces, and currently “the popularity of anime IPs continues to rise through overseas sales expansion.” —CNBC’s Michael Bloom contributed to this report.
Jefferies lists stocks set to benefit from $60 billion anime boom | Real Time Headlines
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