Netflix vows to 'fix' the anime industry

Netflix has released a 35-page report detailing its efforts to improve the entertainment industry in Japan, with a particular focus on anime and the steps needed to ensure its long-term sustainability. In collaboration with Japan's Agency for Cultural Affairs, the platform presented evidence on proper compensation in the age of digital transformation. One of the highlights was the mention of the long working hours of animators, which significantly exceed the national average, with some reports indicating between 198 and 225 hours per month, in addition to lower wages than the average adult worker in Japan.

Netflix underscored its efforts to improve these conditions, ensuring that it pays fair prices for the anime it licenses and ensures that these rates are passed on not only to the main studio, but also to subcontractors and freelancers. However, transparency in the production chain remains a major challenge. This year, legal concerns arose when it was discovered that a sanctioned North Korean animation studio was involved in the production of "Dahlia in Bloom." In addition, the claim that a minor worked on the anime "Isekai Onsen Paradise" sparked controversy, although it has not been confirmed.

To address these issues, Netflix mandates invoices from the entire production chain, cutting out the middlemen who drive up costs with management fees. This approach seeks to give investors visibility into how and where money is spent, thus allowing them to demand specific improvements. The company also highlighted initiatives to improve standards in live-action productions, such as the introduction of intimacy coordinators in its Japanese productions and the promotion of a more harmonious environment on sets.

As for the anime industry, contracts have been a constant source of controversy, with more than 20% of animators reporting that they were unaware of the terms of their contracts. The lack of a transparent contractual system has led to many freelancers finding themselves in a constant search for employment, something that Japanese studios have struggled to manage. Netflix and other organizations are working to improve contract transparency in the industry, highlighting successful examples such as that of the DandeLion studio, which implemented a contract database system for its collaboration on "The First Slam Dunk."

Another important point of the report was the comparison between Japan and the West in terms of labor protection. Netflix pointed out that in Western countries, unions such as SAG-AFTRA have managed to improve conditions and wages, something that, according to the platform, would not be effective in Japan. Nonetheless, the Japan Animators Association (NAFCA) has argued otherwise, highlighting the need for skills-based certifications to ensure that more experienced creators are fairly compensated.

Finally, Netflix highlighted that its weekly and bi-annual rankings, such as the What We Watched: A Netflix Engagement Report, empower creators by providing useful data for future work and improving their position in license renewal negotiations. In addition, he highlighted his role in the production of adaptations of original works, citing as an example the live-action adaptation of "One Piece".

Source: Bunkatsushin