What's Happening?
Crunchyroll, the anime streaming service owned by Sony, is undergoing a restructuring process that includes layoffs as it shifts focus towards high-growth international markets. The company, which has over 1,000 employees, has not disclosed the exact number of layoffs. Crunchyroll President Rahul Purini announced the changes in a memo, emphasizing that the restructuring is aimed at empowering regional teams and is not a cost-cutting measure. The company plans to build engineering hubs in the U.S., Mexico, and India, and invest in growth opportunities beyond its core anime business, such as collectibles and manga. Crunchyroll is also preparing to launch a digital manga service as part of its subscription tier later this year.
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Why It's Important?
The restructuring of Crunchyroll highlights the growing importance of international markets in the anime industry. By focusing on regions like India, Brazil, Mexico, Europe, and Southeast Asia, Crunchyroll aims to capitalize on the expanding global anime fandom. This strategic shift could lead to increased competition in these markets, potentially benefiting consumers with more diverse content offerings. Additionally, the investment in engineering hubs and new business ventures suggests a broader industry trend towards diversification and innovation, which could drive growth and create new opportunities for stakeholders in the anime and entertainment sectors.
What's Next?
Crunchyroll's restructuring is expected to lead to the creation of new roles and the expansion of existing ones, as the company adapts to its new organizational model. The launch of the digital manga service and the debut of the anime movie 'Demon Slayer: Kimetsu no Yaiba Infinity Castle' in the U.S. and Canada are key upcoming initiatives. As Crunchyroll continues to expand its international presence, it may face challenges in navigating local employment laws and cultural differences. The company's ability to successfully implement its new strategy will be crucial in maintaining its competitive edge in the global anime market.
