In late August, six trainees were drawing anime characters under the guidance of an instructor at a room in a major anime production company in Tokyo’s Nakano Ward.

TMS Entertainment Co. recruits around five people each year for the year-long program where they are taught the fundamentals of animation. The program, launched in fiscal 2021, also gives trainees practical experience by working on actual shows.

The training runs five days a week from 10 a.m. to 7 p.m. Trainees don’t have to pay any fees and receive a monthly stipend of 150,000 yen ($1,050) to cover their living expenses.

After completing the program, TMS typically hires trainees as contract animators with a starting salary of 250,000 yen per month, which is comparable to the starting pay for university graduates at large companies.

The program is a godsend for young animators, who are usually assigned "in-between work" in the industry, which connect the key frames to create smoother animations. The median wage for this work is around 700 yen per hour, which is below the minimum wage.

Aina Sugisawa, who attended a vocational school specializing in design, almost gave up on her dream of becoming an animator due to the low pay. But after learning about the TMS program, she applied and started the course this spring.

“I was really drawn to the chance of becoming a full-time employee in the future,” she said.

Amid the global surge in Japanese anime’s popularity and growing production demands, the industry is grappling with a critical shortage of animators.

Major production companies are working to secure and train new talent, but the low wages―a key structural issue―are driving animators out of the field, prompting calls for government intervention.

TMS Entertainment is among those trying to turn the situation around.

After completing the TMS training program, the trainees may even be promoted to full-time employees. Currently, more than a dozen people who have completed the program are working as contract animators.

Ippei Takemura, who is in charge of the program, explained that TMS started the effort due to the increasing number of productions and the growing shortage of animators.

He said the company used to train young animators on the job, but “top animators are now too busy to dedicate the time to train them.”

Recently, other major production companies such as Toei Animation Co. and Bandai Namco Filmworks Inc. have launched similar programs, which hire trainees after they complete a one-year training period.

Production companies are ramping up efforts to secure talent due to the rising global popularity of Japanese anime, which has resulted in a surge in orders.

According to the Association of Japanese Animations, the number of anime produced annually surpassed 200 for the first time in 2004 and has remained above 300 since 2014.

The market size of Japan’s anime industry rose to around 2.9 trillion yen in 2022, more than double what it was 10 years ago. About half of that revenue came from overseas sales.

MEDIAN WAGE FAR BELOW AVERAGE

Despite the booming industry, there are only around 6,000 animators in Japan, according to estimates by the Japan Research Institute Ltd., with many leaving due to the poor working conditions.

Most animators are freelancers under outsourcing contracts with production companies.

The institute estimates that the median wage for animators is around 1,300 yen per hour, far below the average of 2,400 yen for all industries.

Animator drawings are divided into two types: in-between work and “key frames,” which capture important moments such as the start and end of a movement.

While major production companies can afford to train animators, many small- and midsize production companies, which make up the majority of the industry, don’t have the resources to do the same.

Aiming to improve the training and working conditions of animators, anime producers and directors established the Nippon Anime & Film Culture Association (NAFCA) in 2023.

The core initiative is the “animator skill certification,” with the first exam scheduled to be held in November. Long-established Takuranke, known for producing Pokemon anime, is also lending its support.

The test will assess the skills required for animators and educational materials are also created to support learning.

“Many people leave the industry because training programs aren’t working effectively,” said Ayano Fukumiya, secretary-general of the NAFCA.

The initiative aims to promote skill development, which will help retain talent and lead to higher wages.

Fukumiya said that she hopes this will attract more people to become animators.

‘GOVERNMENT SHOULD INTERVENE’

The low wages driving the animator shortage are believed to stem from structural issues.

When the Japan Research Institute analyzed the NAFCA’s data, it found that production companies received only 18 percent of domestic anime sales in 2022 and just 6 percent of overseas sales.

Most of the revenue flows to companies involved in planning, original content creation, marketing, broadcasting and streaming.

Yosuke Yasui, a senior researcher at the Japan Research Institute, said, “Many companies are operating hand to mouth, leading them to accept unfavorable contract terms and trapping them in a cycle of low profits.”

He said that production companies need to secure stable revenue, but rigid industry practices make it difficult, making government intervention necessary.

Specifically, Yasui suggests that production committees and other bodies responsible for planning anime should be required to calculate subcontracting fees based on fair wages for animators when outsourcing to production companies.

He also proposed introducing a rule that would allow production companies to obtain at least 10 percent of the intellectual property rights, even if they don’t invest directly in the production of anime works.

This would enable them to continuously earn at least 10 percent of the profits from the work, in addition to their subcontracting fees.

The government has made anime a core part of its Cool Japan Strategy to promote exports and is now taking steps to improve working conditions in the industry.

This fall, it plans to set up a public-private council to discuss measures with experts and industry organizations.

The Fair Trade Commission will also begin investigating business practices in the film and anime industries next year and will consider specific measures.

However, an official from the Cultural Affairs Agency raised concerns.

“How much should the government regulate interactions between private entities?” the official asked. 

It remains uncertain whether effective measures can be implemented.

ESTABLISHING AND ACQUIRING

The acquisition side is also working to establish and acquire its own production company.

Takeshi Kikuchi, an executive officer at Kadokawa Corp., said for the past 10 years, even if the first season of an anime series was a hit and the company wanted to quickly order a second season, it often faced long waits for available slots at production companies due to high demand.

He said the company sometimes had to wait up to three years before it could get a new season made.

Kadokawa established its own production company in 2018 through joint investments with other companies. Since then, it has continued to acquire additional production companies.

In July this year, Kadokawa announced the acquisition of the long-established Doga Kobo Inc., known for its work on the famed anime “Oshi no Ko” (My Star).

With six companies now under its group, Kadokawa plans to prioritize the production of anime developed in-house.

Kikuchi emphasized that joining the Kadokawa Group benefits production companies as well, making it easier for them to secure animators.

“Becoming part of the reputable company will also reassure parents when their children enter the industry,” he added.

(This article was written by Shiki Iwasawa and Sho Ito.)