1 00:00:08,200 --> 00:00:12,520 Speaker 1: Welcome to Strictly Business, Variety's weekly podcast featuring conversations about 2 00:00:12,520 --> 00:00:15,840 Speaker 1: the business of media and entertainment. I'm Tyler Aquilina, a 3 00:00:15,880 --> 00:00:20,400 Speaker 1: media analyst for Variety Intelligence Platform. Anime or Japanese animation 4 00:00:20,760 --> 00:00:22,800 Speaker 1: has come a long way in the past few decades. 5 00:00:23,120 --> 00:00:25,920 Speaker 1: Fans who once had little recourse but bootlegs and piracy 6 00:00:25,920 --> 00:00:27,760 Speaker 1: to watch their favorite shows are now part of a 7 00:00:27,760 --> 00:00:31,040 Speaker 1: global community and a twenty billion dollar market that's even 8 00:00:31,040 --> 00:00:34,440 Speaker 1: more robust internationally than it is in Japan. Perhaps no 9 00:00:34,479 --> 00:00:38,160 Speaker 1: company better exemplifies that transformation than Crunchy Role. The Sony 10 00:00:38,200 --> 00:00:41,920 Speaker 1: owned an anime focused subscription streaming platform which has long 11 00:00:41,960 --> 00:00:45,559 Speaker 1: been a go to destination for watching Japanese animation stateside. 12 00:00:45,920 --> 00:00:48,559 Speaker 1: Since launching is essentially an anime piracy site in the 13 00:00:48,560 --> 00:00:51,400 Speaker 1: mid two thousands, Crunchy Role has grown into a legitimate 14 00:00:51,440 --> 00:00:55,480 Speaker 1: anime powerhouse, with streaming, theatrical and live events businesses under 15 00:00:55,480 --> 00:00:58,680 Speaker 1: its umbrella. Sony acquired the company for one point two 16 00:00:58,720 --> 00:01:01,840 Speaker 1: billion dollars in twenty twenty one, and since then, Crunchy 17 00:01:01,880 --> 00:01:04,480 Speaker 1: Role has continued to grow under the leadership of its president, 18 00:01:04,560 --> 00:01:07,920 Speaker 1: Rahul Parini, who has overseen robust expansion of Crunchy Role 19 00:01:07,959 --> 00:01:11,520 Speaker 1: into new markets and opportunities. Parini is passionate about the 20 00:01:11,520 --> 00:01:14,520 Speaker 1: anime business, as you'll see, and has even bigger plans 21 00:01:14,520 --> 00:01:17,120 Speaker 1: in store for what was once a tiny platform where 22 00:01:17,160 --> 00:01:20,520 Speaker 1: users would catch fans subtitled episodes of Naruto and Dragon Ball. 23 00:01:21,080 --> 00:01:23,720 Speaker 1: Our wide ranging conversation is coming up after the break, 24 00:01:31,800 --> 00:01:34,640 Speaker 1: we are back with Rahul Parini, the president of Crunchy Role. 25 00:01:34,680 --> 00:01:38,080 Speaker 2: Welcome, Thank you, dyler, thank you for me having me here. 26 00:01:38,760 --> 00:01:39,520 Speaker 2: Looking forward to. 27 00:01:39,480 --> 00:01:42,840 Speaker 1: This, Yeah, me too. So, just to start off, can 28 00:01:42,880 --> 00:01:45,119 Speaker 1: you tell us a little bit about Crunchy Role and 29 00:01:45,200 --> 00:01:45,960 Speaker 1: your role there. 30 00:01:46,200 --> 00:01:50,240 Speaker 2: Yeah, Cunchyroll is a media and entertainment company focused on 31 00:01:50,440 --> 00:01:56,200 Speaker 2: Japanese anime. Anime is a dynamic storytelling format. It's a 32 00:01:56,400 --> 00:02:02,320 Speaker 2: medium that comes out of Japan and fans globally love it. 33 00:02:02,960 --> 00:02:07,400 Speaker 2: And we are part of Sony Pictures Entertainment and I'm 34 00:02:07,480 --> 00:02:10,280 Speaker 2: president of Country Roll. I've been part of this organization 35 00:02:10,320 --> 00:02:15,200 Speaker 2: for about nine years. And yeah, it's a amazing medium 36 00:02:15,200 --> 00:02:17,840 Speaker 2: and fan base that we get to serve. Yeah. 37 00:02:18,240 --> 00:02:20,639 Speaker 1: Now, a big part of your business is bringing over 38 00:02:20,680 --> 00:02:24,200 Speaker 1: these anime series from Japan to the United States market. 39 00:02:24,560 --> 00:02:26,160 Speaker 1: For those who may not know, can you tell us 40 00:02:26,160 --> 00:02:28,120 Speaker 1: a little bit about what does that process look like 41 00:02:28,200 --> 00:02:29,560 Speaker 1: from a business perspective. 42 00:02:29,800 --> 00:02:33,440 Speaker 2: Yeah, like you said, most of anime is conceived and 43 00:02:33,560 --> 00:02:37,040 Speaker 2: created in Japan, and what we are focused on is 44 00:02:37,120 --> 00:02:41,000 Speaker 2: taking those amazing stories from Japanese creators and bringing them 45 00:02:41,040 --> 00:02:44,519 Speaker 2: to global audiences. So County Role currently operates in about 46 00:02:44,639 --> 00:02:47,880 Speaker 2: two hundred countries and territory. So what we do is 47 00:02:47,960 --> 00:02:50,760 Speaker 2: work with our partners in Japan. We take shows that 48 00:02:50,800 --> 00:02:53,720 Speaker 2: they create and try to bring them to fans as 49 00:02:53,800 --> 00:02:57,320 Speaker 2: soon as they are available in Japan. So majority of 50 00:02:57,360 --> 00:03:00,480 Speaker 2: our content we work we license from our partners, but 51 00:03:00,560 --> 00:03:03,840 Speaker 2: we are also working closely with our creative partners in 52 00:03:03,919 --> 00:03:07,120 Speaker 2: Japan to produce some of the shows. So when those 53 00:03:07,160 --> 00:03:10,080 Speaker 2: shows get released in Japan, we take them and we 54 00:03:10,120 --> 00:03:13,640 Speaker 2: subtitled them into ten plus languages, We dub them into 55 00:03:13,720 --> 00:03:16,400 Speaker 2: ten plus languages, and we try to make them available 56 00:03:16,400 --> 00:03:20,640 Speaker 2: for our fans globally within an hour of broadcast in Japan. 57 00:03:20,880 --> 00:03:25,520 Speaker 2: So it is it is a fast process. There's about 58 00:03:25,560 --> 00:03:28,280 Speaker 2: fifty to sixty shows that we are bringing to audience 59 00:03:28,360 --> 00:03:31,079 Speaker 2: every quarter, about two hundred to two hundred and twenty 60 00:03:31,080 --> 00:03:31,679 Speaker 2: shows a year. 61 00:03:31,960 --> 00:03:36,920 Speaker 1: Wow, and has the Sony acquisition made it any easier 62 00:03:36,960 --> 00:03:39,320 Speaker 1: to do business in Japan. Has that affected how you 63 00:03:39,320 --> 00:03:40,560 Speaker 1: guys do business over there at all? 64 00:03:41,720 --> 00:03:45,600 Speaker 2: Look as Crunchy Role and some of the other companies 65 00:03:45,600 --> 00:03:48,360 Speaker 2: that are part of Crunchy Role, like Funimation, We've been 66 00:03:48,360 --> 00:03:51,760 Speaker 2: doing this for about twenty five to twenty eight years now. 67 00:03:52,560 --> 00:03:57,800 Speaker 2: Funimation was set up originally in the mid nineties and 68 00:03:58,040 --> 00:04:01,960 Speaker 2: was focused on bringing anime to the So we have 69 00:04:02,200 --> 00:04:06,720 Speaker 2: very long and deep relationships in Japan that we've fostered 70 00:04:06,800 --> 00:04:11,480 Speaker 2: and nature for a long time. But yeah, we Fundimation 71 00:04:11,640 --> 00:04:14,680 Speaker 2: was acquired by Sony Pictures in twenty seventeen, and then 72 00:04:14,720 --> 00:04:19,599 Speaker 2: we acquired County Role in twenty twenty one. Sony, as 73 00:04:19,640 --> 00:04:24,320 Speaker 2: a Japanese company, has a deep, long relationship with the 74 00:04:24,360 --> 00:04:28,279 Speaker 2: anime community, and so us being part of Sony definitely helps. 75 00:04:29,120 --> 00:04:33,279 Speaker 2: It gives us a level of credibility. Being being owned 76 00:04:33,279 --> 00:04:35,880 Speaker 2: by a Japanese company that has been in the anime 77 00:04:36,000 --> 00:04:38,800 Speaker 2: ecosystem and has supported the ecosystem for a long time 78 00:04:38,880 --> 00:04:43,440 Speaker 2: gives us a level of credibility. But our relationships are 79 00:04:43,480 --> 00:04:47,360 Speaker 2: also a long, long term relationship, so both of those help. 80 00:04:47,920 --> 00:04:49,040 Speaker 1: Yeah, yeah, for sure. 81 00:04:49,760 --> 00:04:50,279 Speaker 2: I'm curious. 82 00:04:50,320 --> 00:04:52,159 Speaker 1: Could you talk a little more about how the anime 83 00:04:52,200 --> 00:04:55,080 Speaker 1: business has changed in the time that you've been involved 84 00:04:55,080 --> 00:04:57,560 Speaker 1: with it. Obviously you were at Fundamation, you were heavily 85 00:04:57,560 --> 00:04:59,920 Speaker 1: involved with that before taking over as president of Country. 86 00:05:00,160 --> 00:05:02,960 Speaker 1: You know, how has the business of anime and also 87 00:05:03,000 --> 00:05:05,920 Speaker 1: the culture around anime changed, you know, since you've been 88 00:05:06,120 --> 00:05:06,760 Speaker 1: involved with it. 89 00:05:07,040 --> 00:05:10,560 Speaker 2: Yeah. Look, I think both the business of anime and 90 00:05:10,600 --> 00:05:14,159 Speaker 2: the impact of anime on the culture itself has been 91 00:05:14,400 --> 00:05:17,320 Speaker 2: has been massive over the last nine years I've been 92 00:05:17,320 --> 00:05:22,360 Speaker 2: part of this business. So the popularity of anime has 93 00:05:22,480 --> 00:05:28,559 Speaker 2: been growing really fast globally, and that combined with the 94 00:05:28,640 --> 00:05:33,920 Speaker 2: adoption of streaming and the accessibility of anime globally, has 95 00:05:34,279 --> 00:05:39,960 Speaker 2: made anime reach a huge number of fans. That combined 96 00:05:40,040 --> 00:05:48,960 Speaker 2: with if you think about who defines culture in our world, artists, taste, 97 00:05:49,000 --> 00:05:55,400 Speaker 2: makers of fashion, celebrity sports, personalities and all of a 98 00:05:55,400 --> 00:05:58,680 Speaker 2: lot of them talk about the impact of anime on 99 00:05:59,080 --> 00:06:01,880 Speaker 2: who they are and how they approach their craft or 100 00:06:02,880 --> 00:06:06,960 Speaker 2: who they are as a person. So in that sense, 101 00:06:07,080 --> 00:06:10,120 Speaker 2: anime has had a huge impact on the culture and 102 00:06:10,200 --> 00:06:12,400 Speaker 2: continues to have a huge impact on the culture. 103 00:06:13,160 --> 00:06:17,240 Speaker 1: Yeah, and also obviously it's expanded a lot. You know, 104 00:06:17,320 --> 00:06:19,800 Speaker 1: it was very much this looked at as this kind 105 00:06:19,800 --> 00:06:22,720 Speaker 1: of niche market for such a long time. You know, 106 00:06:23,120 --> 00:06:25,040 Speaker 1: what has it been like to see anime grow into 107 00:06:25,080 --> 00:06:27,640 Speaker 1: such a huge international business? I believe now like the 108 00:06:27,680 --> 00:06:30,840 Speaker 1: international market is bigger than the market for it in Japan, right. 109 00:06:30,720 --> 00:06:33,640 Speaker 2: Yeah, for the first time about a year ago, the 110 00:06:33,680 --> 00:06:39,119 Speaker 2: business done outside of Japan is larger than the anime 111 00:06:39,200 --> 00:06:42,719 Speaker 2: business within Japan. So absolutely, all right, it's seen a 112 00:06:42,839 --> 00:06:46,240 Speaker 2: huge growth internationally. Like Look, as you would probably expect 113 00:06:46,240 --> 00:06:49,080 Speaker 2: me to say, we don't consider anime to be a niche, 114 00:06:49,080 --> 00:06:52,000 Speaker 2: and if it is a niche, it is a gigantic niche. 115 00:06:52,880 --> 00:06:56,280 Speaker 2: We have data and research that shows that there's about 116 00:06:56,320 --> 00:07:01,040 Speaker 2: eight hundred million anime interested fans globe outside of Japan 117 00:07:01,080 --> 00:07:04,320 Speaker 2: and China, we have over close to two hundred million 118 00:07:04,400 --> 00:07:10,400 Speaker 2: people watching anime on official sources in those regions. Netflix 119 00:07:10,840 --> 00:07:14,120 Speaker 2: released a couple of years ago that at least half 120 00:07:14,120 --> 00:07:17,280 Speaker 2: of their subscription base washed anime during that period, so 121 00:07:17,720 --> 00:07:20,400 Speaker 2: that's more than one hundred million plus, So it is 122 00:07:20,720 --> 00:07:23,560 Speaker 2: it is huge in numbers. There's it's a big community. 123 00:07:25,000 --> 00:07:29,240 Speaker 2: Like Polygon just released some data from their research that 124 00:07:29,360 --> 00:07:35,600 Speaker 2: showed that forty two percent of gen Z watches anime weekly, 125 00:07:36,120 --> 00:07:39,800 Speaker 2: which is more than some juggernauts in media like NFL. 126 00:07:40,400 --> 00:07:42,840 Speaker 2: It's only twenty five percent of gen z watch, right, 127 00:07:43,240 --> 00:07:47,400 Speaker 2: So all of that to say, it's no longer a niche. 128 00:07:47,400 --> 00:07:52,400 Speaker 2: It is a its mainstream, it's really popular and it 129 00:07:52,480 --> 00:07:58,040 Speaker 2: continues to grow, right Like, so we're excited. I think 130 00:07:58,680 --> 00:08:01,280 Speaker 2: we expected to grow to be much bigger. 131 00:08:01,640 --> 00:08:06,520 Speaker 1: Yeah, yeah, for sure. I'm curious about how you're expanding, 132 00:08:07,640 --> 00:08:10,880 Speaker 1: you know, both Crunchy roles as a subscription streaming platform, 133 00:08:10,920 --> 00:08:13,880 Speaker 1: but also kind of as a broader flywheel. Can you 134 00:08:13,880 --> 00:08:16,960 Speaker 1: talk about some of the areas where you're growing the business. 135 00:08:17,120 --> 00:08:21,400 Speaker 2: Yeah. So internally we say we don't want to be 136 00:08:21,680 --> 00:08:24,560 Speaker 2: something for everyone. We want to be everything for someone, 137 00:08:24,640 --> 00:08:27,200 Speaker 2: and that someone for us, is the anime fan. So 138 00:08:27,280 --> 00:08:31,680 Speaker 2: our mission is to surround the anime fan and service 139 00:08:31,760 --> 00:08:35,040 Speaker 2: them across their fandom. So we want to create amazing 140 00:08:35,120 --> 00:08:38,720 Speaker 2: experience where however they want to exhibit their fandom. And 141 00:08:38,800 --> 00:08:44,040 Speaker 2: so obviously streaming and our subscription service is a huge 142 00:08:44,440 --> 00:08:47,480 Speaker 2: touch point for us with our fans, and it is 143 00:08:47,800 --> 00:08:51,760 Speaker 2: it makes anime accessible for fans worldwide, and so it's 144 00:08:51,760 --> 00:08:55,600 Speaker 2: a really important piece in our connection with the fans. 145 00:08:56,600 --> 00:09:00,880 Speaker 2: Theatrical is another important piece of anime fans love to 146 00:09:00,960 --> 00:09:03,800 Speaker 2: watch movies on the big screen with their friends and family, 147 00:09:04,559 --> 00:09:09,400 Speaker 2: see these amazing visuals on a big screen, and we 148 00:09:09,559 --> 00:09:12,760 Speaker 2: are we continue to lean into bringing more movies for 149 00:09:12,840 --> 00:09:15,880 Speaker 2: our fans globally. At the same time, we also have 150 00:09:16,679 --> 00:09:21,080 Speaker 2: games that are based on anime anime IP anime shows 151 00:09:21,880 --> 00:09:24,520 Speaker 2: and that's something that we are continuing to invest in 152 00:09:24,559 --> 00:09:28,679 Speaker 2: and lean into. E Commerce is another channel, so fans 153 00:09:28,720 --> 00:09:34,360 Speaker 2: as they want to collect figures or other memorabilia from 154 00:09:34,360 --> 00:09:38,640 Speaker 2: their favorite shows or buy apparel to where to demonstrate 155 00:09:38,679 --> 00:09:41,640 Speaker 2: their fandom, we give them opportunity to do that on 156 00:09:41,679 --> 00:09:45,520 Speaker 2: our store, on our e commerce shop and similar lyric 157 00:09:45,880 --> 00:09:49,680 Speaker 2: whether it's consumer product, goods or events. We try to 158 00:09:49,720 --> 00:09:52,840 Speaker 2: serve the fans however they want to exhibit their fandom, 159 00:09:53,160 --> 00:09:56,840 Speaker 2: and look, we are seeing growth across all of those channels. 160 00:09:57,559 --> 00:10:02,560 Speaker 2: Fans truly want to demonstrate their fandom. However, they can 161 00:10:02,920 --> 00:10:07,600 Speaker 2: essentially literally where their fandom on their sleeve. So it's 162 00:10:07,640 --> 00:10:11,120 Speaker 2: amazing to see these fans connect with those characters and 163 00:10:11,200 --> 00:10:12,360 Speaker 2: show their fandom how they do. 164 00:10:13,040 --> 00:10:15,920 Speaker 1: Yeah, now do you think kind of all those different 165 00:10:16,440 --> 00:10:19,839 Speaker 1: revenue streams and opportunities to kind of bring people into 166 00:10:19,840 --> 00:10:22,319 Speaker 1: the ecosystem. Do you think that has helped you guys 167 00:10:22,559 --> 00:10:25,080 Speaker 1: kind of avoid some of the pitfalls that the broader 168 00:10:25,120 --> 00:10:27,319 Speaker 1: streaming landscape has seen over the last couple of years. 169 00:10:28,400 --> 00:10:31,920 Speaker 2: Look, look, I think the flywheel strategy, as you say, 170 00:10:32,280 --> 00:10:36,040 Speaker 2: having these mix of touch points with fans has definitely 171 00:10:36,160 --> 00:10:40,120 Speaker 2: been a differentiator for us. It's been a strategic priority. 172 00:10:40,360 --> 00:10:45,160 Speaker 2: We know it has helped us connect with fans and 173 00:10:45,880 --> 00:10:50,640 Speaker 2: have a longer term connection and relationship with our fans 174 00:10:51,000 --> 00:10:56,640 Speaker 2: because of that approach, it has helped us address some 175 00:10:56,679 --> 00:11:01,640 Speaker 2: of our retention and churn churned goals, which are major 176 00:11:01,679 --> 00:11:05,880 Speaker 2: factors for most of streaming platforms. So yes, that the 177 00:11:05,920 --> 00:11:09,600 Speaker 2: approach has definitely been a differentiator for us and continues 178 00:11:09,679 --> 00:11:14,720 Speaker 2: to allow us to expand or reach with fans. Yeah. 179 00:11:15,080 --> 00:11:18,560 Speaker 1: Yeah, tell us a little bit more about your audience 180 00:11:18,720 --> 00:11:20,920 Speaker 1: maybe from the streaming perspective. You know, how do you 181 00:11:20,920 --> 00:11:23,760 Speaker 1: describe your subscribers in terms of their viewing habits, their 182 00:11:23,800 --> 00:11:27,160 Speaker 1: behavior in terms of churn and other patterns. 183 00:11:28,160 --> 00:11:30,760 Speaker 2: Like I said, anime is a very dynamic medium and 184 00:11:30,800 --> 00:11:35,199 Speaker 2: there is something for every fan In anime, there's multiple 185 00:11:35,360 --> 00:11:39,280 Speaker 2: genres and so there is something for everyone. Our research 186 00:11:39,320 --> 00:11:42,520 Speaker 2: shows that there is everybody from gen Z and Gen 187 00:11:42,600 --> 00:11:47,480 Speaker 2: Alpha two boomers who are watching anime. But in general, 188 00:11:47,559 --> 00:11:50,720 Speaker 2: anime fans tend to be young. Like I said, forty 189 00:11:50,720 --> 00:11:53,800 Speaker 2: two percent of gen Z watch weekly. There's another twenty 190 00:11:53,800 --> 00:11:57,000 Speaker 2: five percent of millennials that watch weekly, So the anime 191 00:11:57,160 --> 00:12:00,760 Speaker 2: fans tend to be younger. They are also very diverse. 192 00:12:01,679 --> 00:12:05,960 Speaker 2: African American, Hispanic and Asian American fans tend to over 193 00:12:06,040 --> 00:12:10,360 Speaker 2: index then general population within the fan community anime fan community, 194 00:12:10,480 --> 00:12:15,120 Speaker 2: so they are very diverse. There again to the question 195 00:12:15,200 --> 00:12:21,120 Speaker 2: around their watch patterns and behavior, highly engaged, very passionate. 196 00:12:21,679 --> 00:12:24,479 Speaker 2: They like to watch shows as soon as they're available, 197 00:12:24,559 --> 00:12:28,280 Speaker 2: so it's not surprising for us to see a large 198 00:12:28,360 --> 00:12:31,960 Speaker 2: spike in fans streaming at two am in the morning 199 00:12:32,000 --> 00:12:37,760 Speaker 2: when their favorite show just launches. That's very typical. Again, 200 00:12:37,840 --> 00:12:40,680 Speaker 2: like I said, they're very engaged. So on average we 201 00:12:40,760 --> 00:12:44,840 Speaker 2: see thousand minutes a month, and that's the average across 202 00:12:44,840 --> 00:12:46,840 Speaker 2: the globe. And you know there are fans that are 203 00:12:46,880 --> 00:12:52,080 Speaker 2: watching twenty plus hours every week, so it is a 204 00:12:52,200 --> 00:12:58,120 Speaker 2: very engaged fan base in terms of patterns and viewing behaviors. 205 00:12:58,840 --> 00:13:01,720 Speaker 2: There's a lot of similarity in fans across the globe 206 00:13:01,880 --> 00:13:04,560 Speaker 2: and how they watch and what they watch. But there's 207 00:13:04,559 --> 00:13:08,800 Speaker 2: also a lot of differences, right. For example, fans in 208 00:13:08,800 --> 00:13:12,360 Speaker 2: India love to watch action and adventure and fantasy shows, 209 00:13:13,000 --> 00:13:17,120 Speaker 2: whereas fans in France are more open to art house 210 00:13:17,160 --> 00:13:18,520 Speaker 2: and experimental shows. 211 00:13:18,720 --> 00:13:21,800 Speaker 1: So that happens in France often. 212 00:13:21,880 --> 00:13:25,920 Speaker 2: I think they're definitely more open to that kind of thing. 213 00:13:26,040 --> 00:13:28,960 Speaker 2: And we see similar things across the world, whether it 214 00:13:29,000 --> 00:13:31,800 Speaker 2: is Latin America or the US, and that's what makes 215 00:13:31,800 --> 00:13:34,839 Speaker 2: this fun, right, Like, we we get to serve a 216 00:13:34,960 --> 00:13:39,840 Speaker 2: very similar but audience that has very unique tastes across 217 00:13:39,840 --> 00:13:40,240 Speaker 2: the world. 218 00:13:40,559 --> 00:13:43,720 Speaker 1: Yeah, you mentioned India. I know you. You personally have 219 00:13:43,800 --> 00:13:47,680 Speaker 1: really spearheaded a big expansion for country role in India. 220 00:13:47,880 --> 00:13:51,520 Speaker 1: He tells about why that market specifically and what those 221 00:13:51,559 --> 00:13:53,080 Speaker 1: expansion plans look like over there. 222 00:13:53,160 --> 00:13:59,560 Speaker 2: Yeah. So India is the second largest anime market in 223 00:13:59,600 --> 00:14:03,200 Speaker 2: terms of anime interest and anime watching outside of Japan 224 00:14:03,240 --> 00:14:08,080 Speaker 2: and China. Only US has more anime interested fans in 225 00:14:08,160 --> 00:14:13,200 Speaker 2: terms of true numbers absolute numbers outside of India, And 226 00:14:13,679 --> 00:14:16,040 Speaker 2: for US it was a white space. We weren't there. 227 00:14:16,520 --> 00:14:19,840 Speaker 2: There weren't many players serving that audience, so there was 228 00:14:19,840 --> 00:14:23,640 Speaker 2: a real demand for anime in that community. There were 229 00:14:23,760 --> 00:14:28,240 Speaker 2: there fans were eager to get an official service to 230 00:14:28,840 --> 00:14:31,720 Speaker 2: UH serve them, serve them, and so we took that 231 00:14:31,760 --> 00:14:35,480 Speaker 2: opportunity to be there and serve that audience in India. 232 00:14:35,560 --> 00:14:39,400 Speaker 2: Like you said, we announced a big push about a 233 00:14:39,440 --> 00:14:43,960 Speaker 2: year and a half ago, we launched our service with 234 00:14:45,600 --> 00:14:49,520 Speaker 2: a catalog focused on that. We announced localization efforts where 235 00:14:49,560 --> 00:14:53,320 Speaker 2: we started not only sub subtitling into several languages in India, 236 00:14:53,320 --> 00:14:57,400 Speaker 2: but also dubbing our shows into Hindi, Telugu and Tamil 237 00:14:57,760 --> 00:15:00,640 Speaker 2: and all of those have been very well received in 238 00:15:01,040 --> 00:15:04,120 Speaker 2: the market, and I think our plans continue to do 239 00:15:04,240 --> 00:15:08,120 Speaker 2: more things like that, like we are making more content 240 00:15:08,160 --> 00:15:14,000 Speaker 2: available for our fans simultaneously with other across the global 241 00:15:14,680 --> 00:15:19,320 Speaker 2: our global service, we are trying to localize more content 242 00:15:19,760 --> 00:15:23,280 Speaker 2: to that to different parts of India. As you know, 243 00:15:23,560 --> 00:15:27,200 Speaker 2: there's a lot of multiple languages in India and fans 244 00:15:27,320 --> 00:15:31,160 Speaker 2: like to watch dubbed shows dubbed into their own language, 245 00:15:31,200 --> 00:15:36,320 Speaker 2: so we're trying to localize more content. We also have 246 00:15:36,400 --> 00:15:41,080 Speaker 2: announced a partnership with a couple of fairly popular Bollywood 247 00:15:41,120 --> 00:15:45,240 Speaker 2: celebrities that are really big anime fans. Tiger schaff and 248 00:15:45,280 --> 00:15:51,600 Speaker 2: Rushimi Kamandana, who who are really big advocates and big 249 00:15:51,640 --> 00:15:54,640 Speaker 2: fans of anime, and we've partnered with them to bring 250 00:15:54,720 --> 00:15:59,480 Speaker 2: Crunchy Role and more anime to fans in India. Very cool. 251 00:15:59,760 --> 00:16:02,640 Speaker 1: You know you mentioned piracy, which I think is so 252 00:16:03,240 --> 00:16:06,760 Speaker 1: tied up in the history of anime's global expansion. You know, 253 00:16:07,040 --> 00:16:09,800 Speaker 1: like US fans used to have to had basically no 254 00:16:09,880 --> 00:16:13,320 Speaker 1: recourse but piracy to find some of these shows. What 255 00:16:13,480 --> 00:16:16,320 Speaker 1: strategies I think? You also mentioned the statistic that like, 256 00:16:16,400 --> 00:16:19,160 Speaker 1: there's eight hundred million anime fans worldwide, but only two 257 00:16:19,240 --> 00:16:22,920 Speaker 1: hundred million are watching on legitimate sources. Obviously, it's it's 258 00:16:22,960 --> 00:16:25,960 Speaker 1: one thing to expand into a place like India where 259 00:16:25,960 --> 00:16:30,520 Speaker 1: there is no legal avenue to watch these shows, but 260 00:16:30,920 --> 00:16:35,400 Speaker 1: how are you combating and fighting piracy in markets where 261 00:16:35,480 --> 00:16:37,200 Speaker 1: the legitimate sources is already available. 262 00:16:37,480 --> 00:16:43,800 Speaker 2: Yeah. Look, piracy and an official sources of anime is 263 00:16:43,840 --> 00:16:50,240 Speaker 2: a big component of anime watching for fans globally. Anime 264 00:16:50,320 --> 00:16:53,000 Speaker 2: has been popular for a long time, but fans weren't 265 00:16:53,000 --> 00:16:56,800 Speaker 2: able to access it until recently when streaming became a 266 00:16:56,920 --> 00:17:01,840 Speaker 2: really viable option for fans. So piracy was the way 267 00:17:01,880 --> 00:17:04,439 Speaker 2: where fans were watching these shows. For a long time. 268 00:17:04,920 --> 00:17:08,840 Speaker 2: From our perspective, what we are focused on is convenience 269 00:17:09,359 --> 00:17:13,199 Speaker 2: for fans. We want to make a service that is convenient, 270 00:17:13,560 --> 00:17:16,160 Speaker 2: that gives the fans the ability to watch their favorite 271 00:17:16,160 --> 00:17:18,800 Speaker 2: shows as soon as they watch however they want to 272 00:17:18,840 --> 00:17:22,399 Speaker 2: watch it, whether it is subtitled into their favorite language, 273 00:17:22,480 --> 00:17:26,120 Speaker 2: dubbed into their favorite language, on their favorite device, whether 274 00:17:26,160 --> 00:17:30,000 Speaker 2: it is mobile or gaming console or a smart TV, 275 00:17:30,920 --> 00:17:35,520 Speaker 2: and however they want to structure the experience. So our 276 00:17:35,600 --> 00:17:39,400 Speaker 2: focus is on making this content available as soon as 277 00:17:39,440 --> 00:17:43,200 Speaker 2: possible in whatever language they want, and as convenient as 278 00:17:43,240 --> 00:17:46,719 Speaker 2: possible at a very comparative price. And we believe that 279 00:17:46,880 --> 00:17:49,119 Speaker 2: is the strategy that is going to allow us to 280 00:17:49,600 --> 00:17:54,080 Speaker 2: make this much more compelling and attractive to fans. To 281 00:17:54,119 --> 00:17:57,000 Speaker 2: switch to an official source rather than using an official 282 00:17:57,000 --> 00:17:59,160 Speaker 2: sources is. 283 00:18:00,040 --> 00:18:03,680 Speaker 1: Kind of expanding ways to kind of funnel people into 284 00:18:03,720 --> 00:18:05,960 Speaker 1: that also part of that, I know last year you 285 00:18:06,000 --> 00:18:08,440 Speaker 1: guys expanded into the fast space, which is to say, 286 00:18:08,480 --> 00:18:12,360 Speaker 1: free ad supported streaming. What are some of the opportunities there, 287 00:18:12,400 --> 00:18:14,399 Speaker 1: and is that you know, another way to kind of 288 00:18:14,520 --> 00:18:17,080 Speaker 1: reel people in who might not other way otherwise be there. 289 00:18:17,640 --> 00:18:20,840 Speaker 2: Yeah, last year we announced that we were launching a 290 00:18:20,920 --> 00:18:27,320 Speaker 2: twenty four seven ADS supported linear channel. It's available on 291 00:18:27,440 --> 00:18:32,879 Speaker 2: most Fast platforms in the US now. Recently it also 292 00:18:33,440 --> 00:18:37,679 Speaker 2: was made available on Pluto TV, and our strategy and 293 00:18:37,720 --> 00:18:42,080 Speaker 2: approach with that is to make this content and anime 294 00:18:42,200 --> 00:18:45,080 Speaker 2: available to casual anime fans where they are. As you know, 295 00:18:45,560 --> 00:18:51,200 Speaker 2: Fast is a really emerging sizeable distribution channel to reach audience, 296 00:18:51,560 --> 00:18:55,359 Speaker 2: and so we want to tap into that distribution mechanism 297 00:18:55,400 --> 00:18:58,240 Speaker 2: to be able to put anime in front of fans 298 00:18:58,280 --> 00:19:01,600 Speaker 2: in a curated way that we can introduce it to them, 299 00:19:02,280 --> 00:19:06,720 Speaker 2: allow them to experience it in a quick, easy way, 300 00:19:07,000 --> 00:19:10,760 Speaker 2: and if then they want a deeper connection or deeper experience, 301 00:19:10,840 --> 00:19:13,320 Speaker 2: they can come to Country Roll for that deeper experience. 302 00:19:13,600 --> 00:19:17,200 Speaker 2: And that's the that's the strategy. So we're seeing we're 303 00:19:17,240 --> 00:19:22,000 Speaker 2: seeing fans engage with our Fast channel really really well 304 00:19:22,040 --> 00:19:24,879 Speaker 2: on those platforms, and we're excited to see what we 305 00:19:24,920 --> 00:19:27,280 Speaker 2: can do more and how we can attract them into 306 00:19:27,280 --> 00:19:28,639 Speaker 2: our ecosystem. Yeah. 307 00:19:28,760 --> 00:19:31,199 Speaker 1: Yeah, it's maybe easier to just catch an episode of 308 00:19:31,200 --> 00:19:33,240 Speaker 1: Cowboy Bebop or something and be like, oh, that looks cool. 309 00:19:33,280 --> 00:19:36,200 Speaker 1: What is that rather than just seeing this huge array 310 00:19:36,240 --> 00:19:39,080 Speaker 1: of you know, posters in front of you, it'd be like, 311 00:19:39,080 --> 00:19:39,960 Speaker 1: which one do I pick? 312 00:19:40,280 --> 00:19:43,399 Speaker 2: Yeah? Like, look, I think like with any streaming service, 313 00:19:43,480 --> 00:19:49,080 Speaker 2: there is so much content. Consumers have a hard time 314 00:19:49,119 --> 00:19:52,040 Speaker 2: with discovery, right, and it's the same thing with anime. 315 00:19:52,160 --> 00:19:56,160 Speaker 2: We have a lot of shows, a lot of different genres, 316 00:19:56,960 --> 00:20:01,399 Speaker 2: and I think our idea is with a fast channel, 317 00:20:01,640 --> 00:20:04,159 Speaker 2: we can curate an experience that makes it easy and 318 00:20:04,200 --> 00:20:07,080 Speaker 2: convenient for fans to get in and try this, and 319 00:20:07,119 --> 00:20:09,920 Speaker 2: if they like it, they can go have a deeper 320 00:20:09,960 --> 00:20:11,879 Speaker 2: experience within our subscription service. 321 00:20:12,280 --> 00:20:14,879 Speaker 1: Yeah, yeah, for sure, to talk a little bit more 322 00:20:14,920 --> 00:20:20,240 Speaker 1: about that subscription business. You know, I'm curious, you know, 323 00:20:20,240 --> 00:20:22,159 Speaker 1: as you said, obviously, if anime is a niche, it's 324 00:20:22,200 --> 00:20:24,560 Speaker 1: a very large niche. But how do you view the 325 00:20:24,600 --> 00:20:28,920 Speaker 1: position of streamers like crunchy Role that serve a particular 326 00:20:29,400 --> 00:20:33,000 Speaker 1: specific interest in this media landscape where you know, companies 327 00:20:33,040 --> 00:20:35,480 Speaker 1: only seem to get bigger and business modelsers seem to 328 00:20:35,480 --> 00:20:37,919 Speaker 1: be more about offering all things to all people. You know, 329 00:20:38,240 --> 00:20:40,800 Speaker 1: how do you see you know, platforms like crunchy Roll 330 00:20:40,840 --> 00:20:42,240 Speaker 1: kind of fitting into the landscape like that. 331 00:20:43,160 --> 00:20:47,840 Speaker 2: Like I said earlier, we're trying to be everything for someone, right, 332 00:20:48,800 --> 00:20:53,400 Speaker 2: and that focus gives us an advantage. We know we're 333 00:20:53,400 --> 00:20:57,639 Speaker 2: not going to be the first subscription service for a 334 00:20:57,720 --> 00:21:01,119 Speaker 2: consumer or a household. What we are trying to be 335 00:21:01,359 --> 00:21:04,560 Speaker 2: is that second or third subscription service. So if you're 336 00:21:04,560 --> 00:21:07,960 Speaker 2: an anime fan, we want to add so much value 337 00:21:08,000 --> 00:21:11,160 Speaker 2: that we would be that second subscription service or third 338 00:21:11,160 --> 00:21:15,440 Speaker 2: subscription service. So from that perspective, we're not really competing 339 00:21:15,520 --> 00:21:19,720 Speaker 2: with a general entertainment service because we know our fans 340 00:21:19,880 --> 00:21:23,040 Speaker 2: will have a general entertainment service as an option because 341 00:21:23,080 --> 00:21:28,440 Speaker 2: where they get their entertainment, but they come to us 342 00:21:28,480 --> 00:21:33,400 Speaker 2: for their anime connection, right, And so that that focus 343 00:21:33,560 --> 00:21:37,159 Speaker 2: and that clarity in terms of where we fit in 344 00:21:37,200 --> 00:21:44,600 Speaker 2: our fans entertainment ecosystem gives tells us that we're not 345 00:21:44,720 --> 00:21:47,639 Speaker 2: we're not really competing for the same thing as a 346 00:21:47,640 --> 00:21:49,520 Speaker 2: general entertainment services. 347 00:21:49,960 --> 00:21:53,040 Speaker 1: Yeah, it's interesting though, like those general entertainment services are 348 00:21:53,080 --> 00:21:55,160 Speaker 1: starting to move more into the anime space. I mean, 349 00:21:55,160 --> 00:21:58,879 Speaker 1: Netflix has for a long time been putting more animations 350 00:21:58,880 --> 00:22:01,760 Speaker 1: on this platform. It feels like as that market continues 351 00:22:01,800 --> 00:22:04,280 Speaker 1: to expand, you'll see more companies like Disney trying to 352 00:22:04,359 --> 00:22:07,240 Speaker 1: get into that. You know, how do you see that 353 00:22:07,520 --> 00:22:12,520 Speaker 1: is there an opportunity there with general entertainment services getting 354 00:22:12,560 --> 00:22:14,320 Speaker 1: more into anime, is there an opportunity for you guys 355 00:22:14,400 --> 00:22:17,560 Speaker 1: or is that just going to create more competition for titles. 356 00:22:17,800 --> 00:22:22,760 Speaker 2: Yeah, look, there is definitely an interest to serve this 357 00:22:23,080 --> 00:22:27,000 Speaker 2: fan base. As this fan base gross, general entertainment companies 358 00:22:27,119 --> 00:22:32,320 Speaker 2: have worked hard to find content to serve them. So, yes, 359 00:22:32,440 --> 00:22:36,280 Speaker 2: we compete for content with all of those players, but 360 00:22:37,480 --> 00:22:41,399 Speaker 2: we think it is good for anime and anime community 361 00:22:42,000 --> 00:22:46,200 Speaker 2: that these large services have anime content and make them 362 00:22:46,240 --> 00:22:52,719 Speaker 2: available to large sets of audience. Right because if somebody 363 00:22:52,760 --> 00:22:56,520 Speaker 2: gets introduced to anime and they want a deeper or 364 00:22:56,560 --> 00:23:00,280 Speaker 2: a broader experience, then they come to a CERT's like 365 00:23:00,320 --> 00:23:03,399 Speaker 2: crunch Role for that broader experience. So we believe it 366 00:23:03,480 --> 00:23:07,560 Speaker 2: is actually good for anime and anime community that these 367 00:23:07,560 --> 00:23:11,400 Speaker 2: services offer some anime and are introducing anime to fans. 368 00:23:13,359 --> 00:23:17,280 Speaker 2: I think overall it is good and I think those 369 00:23:17,320 --> 00:23:21,440 Speaker 2: fans that want that deeper experience will then come to crunturrole. 370 00:23:21,560 --> 00:23:25,320 Speaker 2: We work with some of these general entertainment services. We've 371 00:23:25,359 --> 00:23:28,440 Speaker 2: had we've licensed content to some of them. We've licensed 372 00:23:28,440 --> 00:23:32,720 Speaker 2: content to linear channels like Cartoon Network because we know 373 00:23:32,840 --> 00:23:35,000 Speaker 2: our fans are there, and if we can get them 374 00:23:35,040 --> 00:23:40,439 Speaker 2: to experience a show or experience anime, then some of 375 00:23:40,480 --> 00:23:44,200 Speaker 2: them will become anime fans and come to Crunch role. Yeah. 376 00:23:44,240 --> 00:23:46,200 Speaker 1: I was going to ask about that because licensing TV 377 00:23:46,280 --> 00:23:48,280 Speaker 1: shows is really back in vogue now. You know, you're 378 00:23:48,280 --> 00:23:52,400 Speaker 1: seeing all these companies loan out more titles to Netflix. Obviously, 379 00:23:52,560 --> 00:23:56,080 Speaker 1: Sony County Rule's parent never really stopped playing in that space. 380 00:23:56,400 --> 00:23:57,919 Speaker 1: There's been a lot written about them as a kind 381 00:23:57,960 --> 00:24:01,760 Speaker 1: of a content arms dealer. Do you see you guys 382 00:24:01,800 --> 00:24:05,040 Speaker 1: expanding that strategy or how robust is that strategy for 383 00:24:05,080 --> 00:24:05,760 Speaker 1: you guys already? 384 00:24:05,920 --> 00:24:08,640 Speaker 2: Yeah, Like, like you said, it is back in work, 385 00:24:08,720 --> 00:24:10,520 Speaker 2: but it is something that we've been doing for a 386 00:24:10,560 --> 00:24:15,119 Speaker 2: long time, right. We want to we want to attract fans, 387 00:24:15,440 --> 00:24:17,639 Speaker 2: meet fans where they are, and attract them into our 388 00:24:17,680 --> 00:24:21,720 Speaker 2: ecosystem from that touch point. So we've been doing this 389 00:24:21,800 --> 00:24:24,840 Speaker 2: for a while. Like I mentioned, we've licensed content to 390 00:24:25,240 --> 00:24:29,400 Speaker 2: streaming services and OTT platforms as well as linear networks 391 00:24:29,400 --> 00:24:34,439 Speaker 2: as well, because if as fans experience that anime, we 392 00:24:34,520 --> 00:24:36,760 Speaker 2: know that they will come to us for a deeper experience. 393 00:24:37,560 --> 00:24:42,920 Speaker 2: It continues to be a very strategic and intentional approach 394 00:24:42,960 --> 00:24:46,920 Speaker 2: for us, We do look at how much content at 395 00:24:46,960 --> 00:24:50,439 Speaker 2: what window and when to license and how that would 396 00:24:50,480 --> 00:24:54,520 Speaker 2: then allow us to connect with a new group of 397 00:24:54,560 --> 00:24:57,280 Speaker 2: fans and how to bring them back into our ecosystem. 398 00:24:57,640 --> 00:25:00,960 Speaker 2: So it is a priority, is something that we do 399 00:25:01,160 --> 00:25:03,000 Speaker 2: very intentionally in a strategic way. 400 00:25:03,640 --> 00:25:06,600 Speaker 1: Yeah, what do you think of this trend of these 401 00:25:06,640 --> 00:25:09,520 Speaker 1: live action adaptations of anime? I mean Netflix is really 402 00:25:09,600 --> 00:25:13,800 Speaker 1: leaning into this. Their Cowboy Bebop adaptation was, shall we say, 403 00:25:13,800 --> 00:25:16,400 Speaker 1: not a great success, but One Piece has really taken 404 00:25:16,440 --> 00:25:17,640 Speaker 1: off for them. 405 00:25:18,040 --> 00:25:18,240 Speaker 2: You know. 406 00:25:18,359 --> 00:25:22,359 Speaker 1: Is is that another opportunity to just draw in more, more, 407 00:25:22,720 --> 00:25:24,680 Speaker 1: more people into the anime tent. What do you think 408 00:25:24,680 --> 00:25:25,080 Speaker 1: about that? 409 00:25:25,880 --> 00:25:29,879 Speaker 2: Yeah, Like, look, anime has great, great stories, and I 410 00:25:29,920 --> 00:25:36,000 Speaker 2: think live action is another great medium to bring those 411 00:25:36,040 --> 00:25:39,879 Speaker 2: stories and to a much wider audience. So yeah, we 412 00:25:40,000 --> 00:25:46,399 Speaker 2: think it's great that broader fan bases get to enjoy 413 00:25:46,440 --> 00:25:50,040 Speaker 2: these stories in whatever format and so and it also 414 00:25:50,080 --> 00:25:53,439 Speaker 2: helps anime. So we saw like when like you mentioned, 415 00:25:53,760 --> 00:25:57,520 Speaker 2: Netflix released their One Piece live action, a lot of 416 00:25:57,560 --> 00:26:02,200 Speaker 2: fans came to Country Roll to watch the One Piece anime. Right, 417 00:26:02,359 --> 00:26:08,119 Speaker 2: and we know the popular the original series, the merchandise 418 00:26:08,200 --> 00:26:10,439 Speaker 2: up One Piece all had a halo effect from that. 419 00:26:10,720 --> 00:26:13,000 Speaker 2: So I think it's good for the IP, it's good 420 00:26:13,080 --> 00:26:17,400 Speaker 2: for the ecosystem that these live action shows are made 421 00:26:17,400 --> 00:26:22,520 Speaker 2: and not successful and enjoyed by fans. 422 00:26:22,520 --> 00:26:25,560 Speaker 1: More from Corunchry Role President Rahul Parini. After this break, 423 00:26:33,840 --> 00:26:38,280 Speaker 1: and we're back with Crunchy Role President Rahul Parini. We've 424 00:26:38,320 --> 00:26:40,439 Speaker 1: touched on this a bit, but I'd just like to 425 00:26:40,440 --> 00:26:42,560 Speaker 1: get a little bit more of your thoughts about you know, 426 00:26:42,560 --> 00:26:45,359 Speaker 1: obviously it's a very challenging environment for streaming right now 427 00:26:46,160 --> 00:26:48,439 Speaker 1: and for the media business at large. But you know, 428 00:26:48,520 --> 00:26:51,280 Speaker 1: you guys have really had a big success story of 429 00:26:51,320 --> 00:26:53,240 Speaker 1: the last couple of years. You know, you've expanded your 430 00:26:53,240 --> 00:26:56,600 Speaker 1: subscriber base, you've expanded to different businesses. A Goldman Sachs 431 00:26:56,680 --> 00:27:00,000 Speaker 1: analyst last year estimated that I believe by twenty twenty eight, 432 00:27:00,000 --> 00:27:02,640 Speaker 1: crunchy Roll will account for thirty six percent of all 433 00:27:02,680 --> 00:27:08,159 Speaker 1: profit at Sony's Picture segment, which is very impressive. You know, 434 00:27:08,680 --> 00:27:12,040 Speaker 1: what do you attribute that success to and can you 435 00:27:12,080 --> 00:27:15,440 Speaker 1: talk at all about you know, how profitable the business. 436 00:27:15,119 --> 00:27:20,600 Speaker 2: Is As you said, like there's been the entertainment business 437 00:27:20,600 --> 00:27:23,040 Speaker 2: has been going through a disruption for a while now. 438 00:27:23,840 --> 00:27:27,560 Speaker 2: Between that and the pandemic, there have been a lot 439 00:27:27,600 --> 00:27:31,439 Speaker 2: of external pressures. But one thing about anime is while 440 00:27:31,640 --> 00:27:34,560 Speaker 2: we saw some disruption during the pandemic to the production 441 00:27:34,680 --> 00:27:38,119 Speaker 2: side of anime, given that most of this production happens 442 00:27:38,119 --> 00:27:41,240 Speaker 2: in Japan, the disruption wasn't for a long time and 443 00:27:41,320 --> 00:27:46,720 Speaker 2: it wasn't very impactful, right Like, so shows continue to 444 00:27:46,760 --> 00:27:51,359 Speaker 2: get produced, and on our side, we very quickly figured 445 00:27:51,400 --> 00:27:54,640 Speaker 2: out how to continue to localize and dub shows even 446 00:27:54,720 --> 00:27:57,399 Speaker 2: during the pandemic, So I think that was helpful. So 447 00:27:57,440 --> 00:28:01,800 Speaker 2: we had content coming through even those through the pandemic 448 00:28:01,840 --> 00:28:05,720 Speaker 2: period that we were able to make available to our fans. 449 00:28:05,960 --> 00:28:09,600 Speaker 2: And during that time there was also adoption and move 450 00:28:10,119 --> 00:28:16,000 Speaker 2: towards streaming a lot within within the audience and within consumers, 451 00:28:16,240 --> 00:28:20,040 Speaker 2: and so those all all have helped the growth of 452 00:28:20,200 --> 00:28:25,040 Speaker 2: anime in general, right But at the same time, I 453 00:28:25,080 --> 00:28:29,760 Speaker 2: think to our discussion earlier, our approach or flywheel approach 454 00:28:29,960 --> 00:28:34,119 Speaker 2: has helped us stay focused on this or serving this 455 00:28:34,280 --> 00:28:37,760 Speaker 2: audience and continue to build deep, long relationships with them, 456 00:28:38,600 --> 00:28:42,360 Speaker 2: and that has also helped helped our growth. So we 457 00:28:42,560 --> 00:28:46,640 Speaker 2: just announced that we crossed thirteen million paying subscribers globally, 458 00:28:46,960 --> 00:28:52,320 Speaker 2: and that has only that's been a strong growth for 459 00:28:52,400 --> 00:28:55,880 Speaker 2: us last year. We are part of Sunny Pictures Entertainment. 460 00:28:56,080 --> 00:29:00,000 Speaker 2: We don't release our financials separately, but I can tell 461 00:29:00,000 --> 00:29:02,720 Speaker 2: tell you that we've been profitable and continue to be profitable. 462 00:29:02,840 --> 00:29:07,640 Speaker 2: So and all of that is I think all based 463 00:29:07,680 --> 00:29:10,720 Speaker 2: on our singular focus on serving this fan base and 464 00:29:10,840 --> 00:29:14,200 Speaker 2: our differentiated flywheel strategy. Yeah. 465 00:29:14,720 --> 00:29:16,960 Speaker 1: So speaking of that flywheel strategy, we focused a lot 466 00:29:16,960 --> 00:29:20,080 Speaker 1: on streaming. But I don't want to neglect your theatrical business. 467 00:29:21,040 --> 00:29:23,160 Speaker 1: You know, anime films have really formed one of the 468 00:29:23,160 --> 00:29:27,320 Speaker 1: few consistent bright spots in the post COVID theatrical landscape. 469 00:29:27,720 --> 00:29:30,560 Speaker 1: I know, his Funnimation was behind the Demon Slayer Moogan 470 00:29:30,640 --> 00:29:33,680 Speaker 1: Train film, which was a big success story in twenty 471 00:29:33,720 --> 00:29:37,120 Speaker 1: twenty one. You know, Boy and the Heron, which you 472 00:29:37,120 --> 00:29:40,200 Speaker 1: guys didn't release, but that was, you know, a pretty 473 00:29:40,240 --> 00:29:43,240 Speaker 1: big success story recently. Did you guys been for that film. 474 00:29:43,040 --> 00:29:46,960 Speaker 2: By the way, Yeah, So The Boy and Hearn is 475 00:29:47,000 --> 00:29:50,880 Speaker 2: a Jibili studios. It's a Miyazaki film film. We did 476 00:29:51,080 --> 00:29:54,600 Speaker 2: actually release the movie in Australia because we had a relation. 477 00:29:54,680 --> 00:29:58,760 Speaker 2: We have had a long relationship with Jibli Studios in Australia. 478 00:29:59,240 --> 00:30:01,560 Speaker 2: But they have partner in other world, in other parts 479 00:30:01,600 --> 00:30:03,320 Speaker 2: of the world that they work with and have worked 480 00:30:03,320 --> 00:30:06,000 Speaker 2: with for a long time, so they continue to work 481 00:30:06,000 --> 00:30:07,520 Speaker 2: with those partners in other regions. 482 00:30:07,720 --> 00:30:12,160 Speaker 1: Yeah, yeah, I was just curious. But you know, I 483 00:30:12,200 --> 00:30:14,600 Speaker 1: think we've talked a lot about how passionate the fan 484 00:30:14,680 --> 00:30:18,080 Speaker 1: base is. Are there any other factors that you think 485 00:30:18,160 --> 00:30:21,200 Speaker 1: you can attribute the success of anime films at the 486 00:30:21,240 --> 00:30:22,080 Speaker 1: box office too? 487 00:30:22,560 --> 00:30:26,720 Speaker 2: Yeah. Like I said earlier, fans love to watch their 488 00:30:26,760 --> 00:30:30,400 Speaker 2: favorite shows and favorite characters on a big screen with 489 00:30:30,480 --> 00:30:33,760 Speaker 2: their friends and with their family. It's an experience, it's 490 00:30:33,760 --> 00:30:38,000 Speaker 2: an event for them. Anime it just looks. Those visuals 491 00:30:38,040 --> 00:30:40,560 Speaker 2: look amazing on a big screen, and so I think 492 00:30:40,560 --> 00:30:42,920 Speaker 2: that's a big part of it. The other part of 493 00:30:42,960 --> 00:30:45,120 Speaker 2: it is, like you mentioned, there have been some amazing 494 00:30:45,160 --> 00:30:48,040 Speaker 2: movies that have come out recently, whether it be from 495 00:30:48,800 --> 00:30:53,520 Speaker 2: whether it be originals from Masters like Shinkai's Suzume or 496 00:30:54,040 --> 00:30:56,800 Speaker 2: Mayazaki Is The Boy and the Hern but also from 497 00:30:57,800 --> 00:31:01,200 Speaker 2: theatrical releases from major ip like Demon Slayer and so 498 00:31:01,720 --> 00:31:07,720 Speaker 2: great movies an amazing experience on a big screen. Also, 499 00:31:07,880 --> 00:31:14,360 Speaker 2: with our priority has been making these experiences, making them 500 00:31:14,480 --> 00:31:18,040 Speaker 2: actually an experience and an event for fans, not just 501 00:31:18,600 --> 00:31:24,120 Speaker 2: another movie at the theaters. Right has also made these 502 00:31:24,480 --> 00:31:27,480 Speaker 2: something that are very attractive to fans. And finally, I 503 00:31:27,480 --> 00:31:32,240 Speaker 2: would say like, look, we have long relationship with fans 504 00:31:32,240 --> 00:31:35,200 Speaker 2: around the world. We have over one hundred and sixty 505 00:31:35,320 --> 00:31:38,680 Speaker 2: million fans in our community that we have a very 506 00:31:38,680 --> 00:31:42,880 Speaker 2: close relationship that we are talking to every day in 507 00:31:42,960 --> 00:31:46,040 Speaker 2: social media and other various channels. So when we have 508 00:31:46,160 --> 00:31:49,320 Speaker 2: these movies, we get to tell them directly that these 509 00:31:49,320 --> 00:31:52,840 Speaker 2: movies are coming to theaters and encourage them to go 510 00:31:52,880 --> 00:31:55,440 Speaker 2: watch these movies. That gives us an advantage, that gives 511 00:31:55,760 --> 00:31:58,600 Speaker 2: the medium an advantage because we are able to tell 512 00:31:58,720 --> 00:32:01,480 Speaker 2: a lot of people about these movies and help them 513 00:32:02,000 --> 00:32:04,560 Speaker 2: go to the theaters and watch these movies. So all 514 00:32:04,600 --> 00:32:08,400 Speaker 2: of those factors I think have helped in making anime 515 00:32:08,520 --> 00:32:11,280 Speaker 2: movies as success at theaters. Like we have ten out 516 00:32:11,280 --> 00:32:14,360 Speaker 2: of the top twenty anime releases in the U from 517 00:32:14,360 --> 00:32:17,800 Speaker 2: a box office perspective our country, all releases, and I 518 00:32:17,840 --> 00:32:20,680 Speaker 2: think all of those factors into why anime movies have 519 00:32:20,720 --> 00:32:22,160 Speaker 2: been successful at theaters. 520 00:32:22,680 --> 00:32:27,440 Speaker 1: Yeah, I know that with those theatrical releases, you guys 521 00:32:27,480 --> 00:32:33,520 Speaker 1: have spearheaded releases in different territories different markets. Obviously, you've 522 00:32:33,680 --> 00:32:35,600 Speaker 1: talked about the kind of infrastructure that you guys have 523 00:32:35,640 --> 00:32:39,000 Speaker 1: in place to get shows subtitled and dubbed very quickly. 524 00:32:39,400 --> 00:32:41,280 Speaker 1: Can you talk a little bit about what is that 525 00:32:41,360 --> 00:32:45,240 Speaker 1: process of release, rolling out these films on a global basis? 526 00:32:45,280 --> 00:32:46,880 Speaker 1: What does that look like. Do you guys oversee all 527 00:32:46,880 --> 00:32:48,320 Speaker 1: that subtitling and dubbing. 528 00:32:48,880 --> 00:32:51,960 Speaker 2: Yeah, so similar to what we do with TV shows. 529 00:32:52,360 --> 00:32:57,960 Speaker 2: When we bring movies to theaters, we get our assets 530 00:32:57,960 --> 00:33:02,080 Speaker 2: from our Japanese creators and we actually localize them, so 531 00:33:02,120 --> 00:33:04,560 Speaker 2: we are subtitling them, we are dubbing them into all 532 00:33:04,560 --> 00:33:06,920 Speaker 2: the different languages we have to we want to release, 533 00:33:07,240 --> 00:33:10,280 Speaker 2: and getting the assets ready for a theatrical release. The 534 00:33:10,320 --> 00:33:12,640 Speaker 2: other thing, as I mentioned, we are part of the 535 00:33:12,640 --> 00:33:17,520 Speaker 2: Sony Pictures Entertainment. Sony Pictures, a major Hollywood studio, has 536 00:33:17,520 --> 00:33:21,160 Speaker 2: been bringing movies to theaters for hundred plus years, so 537 00:33:22,040 --> 00:33:26,880 Speaker 2: we have access to that experience, expertise, and infrastructure. So 538 00:33:27,080 --> 00:33:30,400 Speaker 2: we are we partner with our Sony Pictures Entertainment colleagues 539 00:33:30,440 --> 00:33:34,560 Speaker 2: to distribute these movies domestically and internationally, So we are 540 00:33:34,640 --> 00:33:38,360 Speaker 2: leveraging the experience and the expertise they have to bring 541 00:33:38,400 --> 00:33:42,720 Speaker 2: these movies to theaters, so that's an advantage. So that 542 00:33:42,760 --> 00:33:46,760 Speaker 2: allows us to take these movies on a wider theatrical release, 543 00:33:47,480 --> 00:33:50,120 Speaker 2: bring them to more theaters globally, bring them to a 544 00:33:50,120 --> 00:33:53,920 Speaker 2: lot more large format screens globally, and a lot more 545 00:33:53,960 --> 00:33:58,960 Speaker 2: countries than we can ourselves. So all of those are 546 00:33:59,000 --> 00:34:01,640 Speaker 2: a priority for us, and we are leaning into bring 547 00:34:01,640 --> 00:34:04,440 Speaker 2: more movies to more countries and more fans globally. 548 00:34:04,840 --> 00:34:09,279 Speaker 1: Yeah. Yeah, we spoke earlier about, you know, disruption in 549 00:34:09,320 --> 00:34:13,400 Speaker 1: the industry. Another big disruptor that you know everybody seems 550 00:34:13,440 --> 00:34:16,440 Speaker 1: to be talking about constantly is AI. I'm curious to 551 00:34:16,480 --> 00:34:19,319 Speaker 1: get your thoughts on what the potential impact of AI 552 00:34:19,480 --> 00:34:22,239 Speaker 1: might be on the anime industry. I think, you know, 553 00:34:22,840 --> 00:34:25,560 Speaker 1: it's easy to see applications for stuff like subtitling and 554 00:34:26,160 --> 00:34:28,239 Speaker 1: dubbing and that kind of thing. Can you talk about 555 00:34:28,239 --> 00:34:30,239 Speaker 1: what the impact of that might look like. 556 00:34:30,880 --> 00:34:34,560 Speaker 2: Yeah, Like, like you said, AI is going to be 557 00:34:34,560 --> 00:34:39,920 Speaker 2: a huge impact across the various industries. Our partners in 558 00:34:40,000 --> 00:34:44,360 Speaker 2: Japan are experimenting and looking into what that means for 559 00:34:44,719 --> 00:34:50,600 Speaker 2: anime production. But anime is a very is hand drawn still, 560 00:34:50,800 --> 00:34:56,120 Speaker 2: and it's a very age old traditional creative process. So 561 00:34:56,440 --> 00:34:58,520 Speaker 2: I'm sure there will be impact, but it is early 562 00:34:58,560 --> 00:35:00,480 Speaker 2: days to understand what the impact would be on the 563 00:35:00,520 --> 00:35:06,080 Speaker 2: production side of anime. Like you said, we are also 564 00:35:06,400 --> 00:35:09,480 Speaker 2: looking to see what role AI could play in a 565 00:35:09,560 --> 00:35:14,040 Speaker 2: lot of different worthless within our organization. Subtitling is an 566 00:35:14,080 --> 00:35:17,640 Speaker 2: area where we've been experimenting and we think that there 567 00:35:17,680 --> 00:35:20,239 Speaker 2: is a role for AI to play as we look 568 00:35:20,280 --> 00:35:24,720 Speaker 2: at speech speech to text, so we think it could 569 00:35:24,719 --> 00:35:32,320 Speaker 2: help us bring shows to fans quicker, bring in more languages. Again, 570 00:35:32,400 --> 00:35:36,600 Speaker 2: like I said, we are in early experimentation. On the 571 00:35:36,640 --> 00:35:40,719 Speaker 2: other side, on the dubbing side, I think that the 572 00:35:40,800 --> 00:35:43,439 Speaker 2: AI technology, we don't believe the air technology is there 573 00:35:43,600 --> 00:35:47,040 Speaker 2: yet in terms of being able to put into dubbing, 574 00:35:48,440 --> 00:35:52,920 Speaker 2: because the dubbing process itself is a very creative process. 575 00:35:53,080 --> 00:35:56,920 Speaker 2: Given that it is we're not just translating and dubbing, 576 00:35:57,160 --> 00:36:01,399 Speaker 2: we're adapting the script because you have to localize for 577 00:36:01,480 --> 00:36:05,480 Speaker 2: the local culture, local humor, you have to synchronize the 578 00:36:05,520 --> 00:36:08,759 Speaker 2: lip laps to the language because we don't get to 579 00:36:08,760 --> 00:36:13,080 Speaker 2: go back and reanimate the shows. So again, we don't 580 00:36:13,120 --> 00:36:18,759 Speaker 2: think the technology is there yet, but we're also experimenting 581 00:36:18,760 --> 00:36:22,640 Speaker 2: with AI in other ways. As I mentioned earlier. Discovery 582 00:36:22,920 --> 00:36:26,080 Speaker 2: is a big issue, just as much in anime as 583 00:36:26,080 --> 00:36:28,000 Speaker 2: it is in other general entertainment shows. There is a 584 00:36:28,040 --> 00:36:31,000 Speaker 2: lot of content and trying to connect audience with the 585 00:36:31,040 --> 00:36:33,160 Speaker 2: right content that they would like to watch at the 586 00:36:33,239 --> 00:36:35,799 Speaker 2: right time is a big is an important priority for us, 587 00:36:36,160 --> 00:36:40,120 Speaker 2: and we believe AI and generative AI could play a role, 588 00:36:40,480 --> 00:36:42,959 Speaker 2: so we're testing and experimenting there as well. 589 00:36:43,760 --> 00:36:46,799 Speaker 1: Yeah, just quickly, I'd like to talk just a little 590 00:36:46,800 --> 00:36:49,120 Speaker 1: bit more about and again this is something we've kind 591 00:36:49,160 --> 00:36:53,120 Speaker 1: of touched on, but just other expansion opportunities that you 592 00:36:53,239 --> 00:36:55,759 Speaker 1: see for the larger Crunchy Roll Flywheel. 593 00:36:55,960 --> 00:37:01,120 Speaker 2: Yeah, like I said, sword and theatrical our big touch 594 00:37:01,160 --> 00:37:04,080 Speaker 2: points with our fans and they continue to grow for us. 595 00:37:04,640 --> 00:37:08,719 Speaker 2: But we are serving fans in various other ways that 596 00:37:08,800 --> 00:37:12,120 Speaker 2: they like to exhibit their anime fandom. An example would 597 00:37:12,160 --> 00:37:15,920 Speaker 2: be games. There's anime fans love to play games. There 598 00:37:15,960 --> 00:37:18,840 Speaker 2: is a huge overlap between the gaming audience and the 599 00:37:18,880 --> 00:37:23,600 Speaker 2: anime audience, so we are bringing anime games to our 600 00:37:23,640 --> 00:37:28,279 Speaker 2: fans globally. We just launched our new free to play 601 00:37:28,360 --> 00:37:33,120 Speaker 2: game one punch Man World, last week, but we also 602 00:37:33,200 --> 00:37:37,880 Speaker 2: announced late last year launching a new subscription benefit for 603 00:37:37,920 --> 00:37:42,480 Speaker 2: our subscribers called Crunchy Role Game Volt where we make 604 00:37:43,400 --> 00:37:48,440 Speaker 2: free to play games available for our subscribers of our 605 00:37:48,600 --> 00:37:53,080 Speaker 2: Mega and Ultimate here. So that's another important priority. We 606 00:37:53,120 --> 00:37:55,600 Speaker 2: want to make sure that we are bringing amazing games 607 00:37:55,600 --> 00:38:00,000 Speaker 2: for our fans across the board. We also, like I said, 608 00:38:00,239 --> 00:38:03,719 Speaker 2: e commerce is a priority. Uh. Fans love to show 609 00:38:03,760 --> 00:38:09,879 Speaker 2: their fandom by collecting memorabilia, figures, or apparel that they 610 00:38:09,880 --> 00:38:12,359 Speaker 2: can wear and show off their fandom, and so we're 611 00:38:12,400 --> 00:38:17,160 Speaker 2: continuing to grow our e commerce reach both here in 612 00:38:17,800 --> 00:38:24,200 Speaker 2: US and also internationally. Events is another big thing. Fans 613 00:38:24,400 --> 00:38:27,560 Speaker 2: like to gather in a place and celebrate their fandom, 614 00:38:27,640 --> 00:38:32,680 Speaker 2: meet other fans, learn about new shows coming, meet creators 615 00:38:32,680 --> 00:38:36,920 Speaker 2: from Japan. So we are going to be attending and 616 00:38:37,320 --> 00:38:45,120 Speaker 2: meeting fans at more events globally. We are also bringing 617 00:38:45,640 --> 00:38:50,640 Speaker 2: an Countyl Anime Award to Tokyo again this year that 618 00:38:50,719 --> 00:38:53,400 Speaker 2: will be on March second. That is a way for 619 00:38:53,520 --> 00:38:57,160 Speaker 2: us to be able to connect anime fans globally with 620 00:38:57,560 --> 00:39:01,759 Speaker 2: creators in Japan. And I love anime fans to recognize 621 00:39:01,760 --> 00:39:06,520 Speaker 2: and celebrate their favorite shows from the past year. So yeah, again, 622 00:39:07,239 --> 00:39:10,640 Speaker 2: various touch points across the Flywheel that we believe are 623 00:39:10,640 --> 00:39:13,000 Speaker 2: going to be important for fans, and we're continuing to 624 00:39:13,000 --> 00:39:15,120 Speaker 2: invest and grow those channels. 625 00:39:15,320 --> 00:39:18,680 Speaker 1: Yeah, I know, Studio Ghibli opened a theme park in 626 00:39:18,760 --> 00:39:21,080 Speaker 1: Japan a few years ago. Is that our theme parks 627 00:39:21,080 --> 00:39:22,600 Speaker 1: anything you guys are thinking about at all? 628 00:39:22,960 --> 00:39:25,160 Speaker 2: We don't have theme parks, but some of our IP 629 00:39:25,440 --> 00:39:29,280 Speaker 2: are at theme parks, So we're always looking at opportunities 630 00:39:29,280 --> 00:39:32,000 Speaker 2: where we can take some of the IP that's popular 631 00:39:32,040 --> 00:39:35,279 Speaker 2: at country Hall and make them available for fans to 632 00:39:35,400 --> 00:39:37,960 Speaker 2: enjoy at theme parks worldwide. Cool. 633 00:39:38,680 --> 00:39:42,359 Speaker 1: One final fun question for any of our listeners who 634 00:39:42,360 --> 00:39:45,759 Speaker 1: may be looking to get into anime, can you recommend 635 00:39:46,440 --> 00:39:50,160 Speaker 1: maybe two or three titles that they might enjoy just 636 00:39:50,320 --> 00:39:51,160 Speaker 1: as a starting point. 637 00:39:51,440 --> 00:39:53,839 Speaker 2: Yeah. Like I said, there is a show for every fan. 638 00:39:55,840 --> 00:40:02,680 Speaker 2: If you like certain shows in general entertainment, I'm sure 639 00:40:02,760 --> 00:40:06,280 Speaker 2: there are shows that you will enjoy in an anime 640 00:40:06,400 --> 00:40:11,440 Speaker 2: that are similar or similar of genres. Just to suggest 641 00:40:11,480 --> 00:40:13,439 Speaker 2: a show, for example, there is a show that I'm 642 00:40:13,440 --> 00:40:16,640 Speaker 2: watching right now that is really popular with fans that 643 00:40:17,239 --> 00:40:22,040 Speaker 2: is started in January. It's a show called Solo Leveling. 644 00:40:22,719 --> 00:40:27,240 Speaker 2: It's based on a Korean manva that we are actually 645 00:40:27,360 --> 00:40:32,600 Speaker 2: producing with our Sonique colleagues and a production company an Applex. 646 00:40:33,160 --> 00:40:36,319 Speaker 2: It's a it's a really it's a really well made show. 647 00:40:36,400 --> 00:40:41,000 Speaker 2: It's really cool. It's about five episodes, and I would 648 00:40:41,040 --> 00:40:44,120 Speaker 2: highly recommend that show for anybody that wants to get 649 00:40:44,120 --> 00:40:48,239 Speaker 2: into anime. Great visuals, great stories. But again, there are 650 00:40:48,239 --> 00:40:51,920 Speaker 2: a lot of other shows you mentioned. Demon Slayer, Demonslayer 651 00:40:51,960 --> 00:40:54,440 Speaker 2: is a is an amazing show. In new season from 652 00:40:54,480 --> 00:40:56,400 Speaker 2: Demon Slayer is going to be out soon, so I 653 00:40:56,400 --> 00:40:59,800 Speaker 2: would highly recommend fans go catch up on the previous shows, 654 00:41:01,000 --> 00:41:05,319 Speaker 2: previous seasons of Demon's Layer. Yeah, and a lot of 655 00:41:05,360 --> 00:41:10,880 Speaker 2: some classics, so your Dragonball, dragon Ball Z, One Piece, 656 00:41:12,280 --> 00:41:17,560 Speaker 2: Cowboy Bebop or some of the classics that I watched 657 00:41:18,480 --> 00:41:22,440 Speaker 2: when I was young and getting into anime originally and 658 00:41:22,520 --> 00:41:24,839 Speaker 2: still are some of my favorite shows. 659 00:41:25,239 --> 00:41:28,080 Speaker 1: Great. Thank you so much for joining us today. 660 00:41:28,320 --> 00:41:30,359 Speaker 2: Thank you Tyler again, thank you for having time. I 661 00:41:30,440 --> 00:41:31,120 Speaker 2: really enjoyed this. 662 00:41:37,440 --> 00:41:39,480 Speaker 1: Thanks for listening. Be sure to leave us a review 663 00:41:39,520 --> 00:41:42,319 Speaker 1: at Apple Podcasts or Amazon Music. We love to hear 664 00:41:42,360 --> 00:41:45,000 Speaker 1: from listeners. Please go to Variety dot com and sign 665 00:41:45,080 --> 00:41:47,879 Speaker 1: up for our free weekly strictly business newsletter, and don't 666 00:41:47,920 --> 00:41:50,120 Speaker 1: forget to tune in next week. For another episode of 667 00:41:50,120 --> 00:41:50,960 Speaker 1: Strictly Business