Kadokawa CEO Says Raising Wages Won't Save the Anime Industry

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Every time a story about working conditions in the anime industry comes out, the conversation ends in the same place: animators earn little and something needs to be done about it. Takeshi Natsuno, CEO of Kadokawa, doesn't say that's a lie. He says that it is the wrong symptom to diagnose the real problem, and that as long as the industry continues to look there, the fundamental solution will never arrive.


The real problem is not the salary, it is the structure


During a discussion about the future of Japan's content industry in April, Natsuno was blunt: Japan has too many small anime studios, and that's what's killing the sector's profitability. Each small company comes with its own president, its own executives, its own sales team, and its own management. Multiply that by the number of studios that exist and the result is an industry where a huge portion of the money goes to duplicate functions that could be shared.




To illustrate the scale of the problem, Natsuno turned to an example from his own industry. Kadokawa, being one of the largest publishers in Japan, controls only 20% of the publishing market. The remaining 80% is distributed among dozens of smaller competitors. If this fragmentation is already a problem in the book industry, in anime, where margins are tighter and production costs do not stop rising, the situation is considerably worse.


Natsuno's specific proposal is the merger of companies. He gave a simple example: if Kadokawa were to merge with seven other production studios, seven presidents would no longer be needed immediately. Seven sales teams, seven administrative departments, seven overhead structures that could become one more efficient. It's not a new idea in other industries, but in the world of anime, where studios are often very personal projects of their founders, it's an uncomfortable conversation.




The CEO was also clear about what he doesn't want: government subsidies. His position is that public policies should create incentives for mergers to occur voluntarily between private parties, not for the State to plug the gaps with money. He mentioned models such as those of Hollywood studios and companies such as EA, where the creative part and the business part are clearly separated, allowing creators to focus on making content without worrying about capital or commercial operation. That is the model that, in his vision, the Japanese industry should aspire to.


The background to all this is that profitability in anime is already falling, according to Natsuno himself, which makes structural reform urgent and not a theoretical exercise. Its stated ambition is for the anime industry to have an economic weight comparable to the Japanese automotive sector, but for that it must first stop operating as an ecosystem of micro-enterprises competing with each other with limited resources.


Kadokawa Corporation is one of the giants of Japanese entertainment: publisher, anime producer, video game developer, and global content distributor. Among its best-known properties are franchises such as Sword Art OnlineRe:ZeroKonoSuba, and Oshi no Ko, as well as being the company behind Elden Ring through its subsidiary FromSoftware. The fact that its CEO talks about industrial consolidation is not a neutral position: Kadokawa would be one of the main beneficiaries, and possibly the driving force, of any merger process in the sector.

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