AT&T Sells Anime Streamer Crunchyroll to Sony’s Funimation for $1.2 Billion

AT&T has sold the subscription anime streaming service Crunchyroll to American anime distributor Funimation for nearly $1.2 billion as the media company looks to offload or rethink smaller streaming assets to double down on building out all-purpose streamer HBO Max. The deal, which was announced Wednesday night, will give Funimation, a joint venture between Sony Pictures Entertainment and a Sony Music Entertainment subsidiary Aniplex, a leg up in the niche direct-to-consumer streaming space. Crunchyroll has more than 3 million subscription subscribers around the world who pay for original and library programming, and the service has 90 million registered users globally who watch programming on an ad-supported basis, attend events and access content like mobile games and manga. With the sale, WarnerMedia will also get a big cash injection as it looks to invest deeper in fledgling streamer HBO Max, which this week neared 12.6 million active users and is looking to attract a broad user base by releasing Warner Bros.’ entire 2021 film slate simultaneously in theaters and on HBO Max. “The Crunchyroll team has done an extraordinary job of not only growing the Crunchyroll brand but also building a passionate community of anime fans. Crunchyroll’s success is a direct result of the company’s culture and commitment to their fans,” Tony Goncalves, WarnerMedia’s chief revenue officer, said in a statement. “By combining with Funimation, they will continue to nurture a global community and bring more anime to more people. I’m incredibly proud of the Crunchyroll team and what they have been able to accomplish in the digital media space in such a short period of time. They’ve created an end-to-end global ecosystem for this incredible art form.” Media companies like WarnerMedia have been reevaluating—and in some cases looking to offload—their smaller streaming assets and focus on building out more general-purpose streamers instead. WarnerMedia has already opted to sunset targeted streamer DC Universe and move its original shows onto the HBO Max platform. Other companies, like AMC Networks, are leaning into a targeted streamer approach instead of trying to build an all-purpose Netflix competitor. For Sony, the deal expands the company’s grip on the overseas anime market, which has broad appeal. Sony already has inroads in anime production, and has been buying up anime streamers and distributors around the world in the last several years. “We are proud to bring Crunchyroll into the Sony family,” Sony Pictures Entertainment chairman and CEO Tony Vinciquerra said in a statement. “Through Funimation and our terrific partners at Aniplex and Sony Music Entertainment Japan, we have a deep understanding of this global art form and are well-positioned to deliver outstanding content to audiences around the world. Together with Crunchyroll, we will create the best possible experience for fans and greater opportunity for creators, producers and publishers in Japan and elsewhere. Funimation has been doing this for over 25 years and we look forward to continuing to leverage the power of creativity and technology to succeed in this rapidly growing segment of entertainment.” While WarnerMedia is opting to offload Crunchyroll, other services are building out their investment in anime programming. Netflix, which says that more than 100 million households around the world have watched at least one anime title between October 2019 and September 2020, has invested in creating more original anime series, such as The Great Pretender, while also licensing popular programs like The Seven Deadly Sins. Entertainment Giants Reevaluate Their Smaller Streaming Services