Sony nears acquisition of US anime streaming service Crunchyroll (for more than $950 million) (UPDATE: Confirmed!)

Alexszz

Member
Oct 25, 2017
2,040
it is still an EXTREMELY pricey pickup, im sure Kdkw would be valued super high
Sure, I'm just saying that it is well within their means if they thought it would be worth it, and it would maybe even make sense if they want to become the top dog in anime production. From Software would just be a bonus. Many are underestimating how rich they are. This is not Sony from ten years ago when they were losing money left and right.
 

PLASTICA-MAN

Member
Oct 26, 2017
13,683
Ok Crunchyroll Premium needs to be free for PS Plus ownsers on PS5. That PS Plus should prove more value especially since its price increase the reduction of the number of games offered.
 

Solid

One Winged Slayer
Member
Oct 27, 2017
10,172
the land of ancient memes
I wonder if Sony will expand Crunchyroll's skeleton crew and help enable the service to actually function during peak hours and new ep drops for popular series.

I never understood how the experience of actually using any given Crunchyroll app could possibly be as bad as it was, when trying to watch new eps of DBS and AoT
 

MajesticSoup

Banned
Feb 22, 2019
1,935
If this evolves into a free(with ps+) tier with maybe 1 ad like every 20 minutes then this is huge for me.
If theres no difference in the amount of ads, or require an add on price to ps+ then this gets a meh from me.
 

King Kingo

Member
Dec 3, 2019
6,830
Not in the slightest. The Ven Chart for those audiences barely overlap.
A top rated Netflix show probably gets more views in a week than those two combined do in 6 months. Probably more.
True. I suppose I was looking at it from the perspective of converting PlayStation users to PS+ users if Crunchyroll and Funimation was attached but even that's miniscule compared to what Netflix currently has in terms of market share.
 

Ravage

Member
Oct 31, 2017
766
I'm struggling to understand what Crunchyroll brings to the table for Sony (when they already own Funimation) and how on earth are they worth $1B with a mere 3M sub base.
 

Sheentak

Member
Oct 25, 2017
871
w
I'm struggling to understand what Crunchyroll brings to the table for Sony (when they already own Funimation) and how on earth are they worth $1B with a mere 3M sub base.
The ownership of 90% of the western anime market, its hard to compete in TV these days but anime they would be the only source.
 

Pein

Member
Oct 25, 2017
6,411
NYC
How much ad revenue does that translate to though.

I mean this is like 10 x what Sony paid for Funimation.
I mean who really knows, but crunchyroll is doing numbers. I think they can easily grow those numbers, anime is a good medium that is just becoming more and more popular.

I think with the studios sony owns, funimation and crunchyroll they'll carve out a solid niche that Amazon and Netflix want but arguably can't capture.

But who knows, Sony might own things but theu have terrible synergy within the company to integrate and take advantage of each other. I mean they've done jackshit with funimation.
 

Drek

Member
Oct 27, 2017
1,716
it is still an EXTREMELY pricey pickup, im sure Kdkw would be valued super high
Sony could pay a 50% premium for Kadokawa and only use about 10% of cash-on-hand currently, FYI. Its all about 1. if Sony wants to and 2. if the owner of Kadokawa (the founder and CEO is still the principle shareholder I believe) wants to sell.

How much ad revenue does that translate to though.

I mean this is like 10 x what Sony paid for Funimation.
We don't know.

Sony gets to look at the financials before agreeing to a deal. They balked at $1.5B, they agreed at $950M.

So at least from Sony's review it appears Crunchyroll makes enough to justify the price. Most transactions like this have target amortization windows BTW, where the expected profits/growth potential are realized to offset the purchase price. Typically for something like this something in the 5-10 year range is used.

I believe their sub #'s are $8/mo. with 3M subs, so that alone is about $288M in revenue per year. if the ~70M people are generating something around 2/3rds of that so a total revenue of $500M they'd need to be somewhere around 20% profit on revenue for Sony to recoup in 10 years without growing the asset. Those seem pretty likely.
 

killerrin

Member
Oct 25, 2017
5,385
Toronto
I mean who really knows, but crunchyroll is doing numbers. I think they can easily grow those numbers, anime is a good medium that is just becoming more and more popular.

I think with the studios sony owns, funimation and crunchyroll they'll carve out a solid niche that Amazon and Netflix want but arguably can't capture.

But who knows, Sony might own things but theu have terrible synergy within the company to integrate and take advantage of each other. I mean they've done jackshit with funimation.
I mean, Anime in the west was at its best a couple years ago before Sony bought Funimation and broke just about every content licencing sharing agreement they had. Just a few years ago the companies were working together, pooling their money for heavy hitter and niche shows, doing original content and sharing their content on each other's platforms, plus under VRV.

Then Sony came along and Anime in the west suddenly became fragmented under 2 different subscriptions. And the breaking of the contracts caused more marketshare to go to Netflix and a brand new competitor to come into existstance. So basically overnight you went from paying $10mo for access to 90% of shows all the way to $40mo for access to the same number of shows all fragmented on different services.

So hopefully if Sony goes through with this they'll fix their wrong and put some of those broken contracts back together so Anime fans don't have to spent an arm and a leg just to get access to what they originally had access to, to begin with.

That would be the ideal situation to come from this acquisition.
 

mrmoose

Member
Nov 13, 2017
13,305
I mean, Anime in the west was at its best a couple years ago before Sony bought Funimation and broke just about every content licencing sharing agreement they had. Just a few years ago the companies were working together, pooling their money for heavy hitter and niche shows, doing original content and sharing their content on each other's platforms, plus under VRV.

Then Sony came along and Anime in the west suddenly became fragmented under 2 different subscriptions. And the breaking of the contracts caused more marketshare to go to Netflix and a brand new competitor to come into existstance. So basically overnight you went from paying $10mo for access to 90% of shows all the way to $40mo for access to the same number of shows all fragmented on different services.

So hopefully if Sony goes through with this they'll fix their wrong and put some of those broken contracts back together so Anime fans don't have to spent an arm and a leg just to get access to what they originally had access to, to begin with.

That would be the ideal situation to come from this acquisition.
Given that they just spent almost a billion on this, I"m not sure how what you laid out makes them more $$$ unless with that comes a gigantic growth in the number of people who subscribe to the service (in an era where people are getting tired of having so many streaming services). Like just consolidating Funimation and Crunchyroll subs into one sub without raising the price is going to cost them a lot of money because they lose all the people that subscribe to both because of the reasons you just described.

As someone with kids who prefer dubbed anime, while I prefer subbed, even splitting this into one sub for dubs and one for subs is not going to sit well with me.
 

KSweeley

Community Resettler
Member
Oct 25, 2017
8,804
Baltimore, Maryland, USA
I'm not totally sure how well known this is, Sony it seems like they did a recent internal reorganization that made Funimation a joint venture with Aniplex: https://www.funimation.com/about-us/

Funimation is an independently operated joint venture between U.S.-based Sony Pictures Entertainment and Japan’s Aniplex, a subsidiary of Sony Music Entertainment (Japan) Inc.
 

TheRealTalker

Member
Oct 25, 2017
11,340
I'm not totally sure how well known this is, Sony it seems like they did a recent internal reorganization that made Funimation a joint venture with Aniplex: https://www.funimation.com/about-us/
It makes you think that they may buy anime production studios as well in the near future just to have more content be made by themselves akin to Netflix and Disney+

CR even has their own CR Original content now too.
 

SchroDingerzat

One Winged Slayer
Member
Sep 24, 2018
1,232
All this talk about Sony going after Kadokawa next.... I kinda hope Nintendo goes for them instead.

Then for the hell if it make a Maker label and release Mario Maker, RPG Maker, etc under it all. Before finally announcing a new Fighter Maker and Zelda Maker.
 

Deleted member 5028

User requested account closure
Banned
Oct 25, 2017
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All this talk about Sony going after Kadokawa next.... I kinda hope Nintendo goes for them instead.

Then for the hell if it make a Maker label and release Mario Maker, RPG Maker, etc under it all. Before finally announcing a new Fighter Maker and Zelda Maker.
There is no actual talk. Just supposition that because they share a business interest then Sony must want to buy them. If thats the case the primary interest would be the Manga business and FromSoft a secondary one. But they are not.
 

Strings

Member
Oct 27, 2017
17,933
All this talk about Sony going after Kadokawa next.... I kinda hope Nintendo goes for them instead.

Then for the hell if it make a Maker label and release Mario Maker, RPG Maker, etc under it all. Before finally announcing a new Fighter Maker and Zelda Maker.
I don't think Kadokawa makes sense for anyone outside of Sony (and that's already extremely unlikely). There's too many extraneous businesses.
 

iori9999

Member
Dec 8, 2017
1,682
I think I might have asked this earlier. Does this finally mean that Crunchyroll is back on Sony TVs by default?
 

Antoo

Member
May 1, 2019
1,591
I don't understand. They want to push HBO Max but are actively finding ways to lose out core pillars of service? I guess they have data showing no one watches anime on HBO Max?
 

RLCC14

The Fallen
Oct 28, 2017
2,230
And the actual workers STILL get payed jack shit. And also this shit will definitely hurt Sentai/Hidive which really sucks.
 

iori9999

Member
Dec 8, 2017
1,682
Oh damn Funimation and Crunchyroll to merge? That's almost all the anime available in one app and hopefully available on all Smart TVs by default!