Photo/Illutration Japan’s anime industry relies on freelance animators, who often work for low wages and face precarious labor practices. (Provided by the Nippon Anime and Film Culture Association)

A new government probe has exposed deep frustration among the artists who power Japan’s animation and film industries, where low pay and opaque business practices contribute to unstable working conditions.

An overwhelming 89.4 percent of film directors and staff, along with 52.1 percent of animators, said they were not satisfied with their current pay, according to a survey released on Dec. 24 by the Fair Trade Commission.

Many respondents complained that their compensation fell short of rising living costs and that the fees offered for their work were inherently low.

Some also reported that negotiations either failed to produce acceptable rates or were not available at all.

Both industries commonly operate under multilayered subcontracting structures, with production partners at the top, followed by primary contractors, subcontracted studios and freelance creators.

The FTC began investigating these layers in January through questionnaires and interviews.

The survey identified several structural issues shared across all levels of the industry: delays in clearly presenting contract terms, low fees paid by commissioning entities, and insufficient reimbursement for additional costs incurred during production.

“Problems occurring at higher levels are also happening further down the chain,” an FTC official noted.

Based on the findings, the competition watchdog plans to draft guidelines outlining which practices may violate the Anti-Monopoly Law and other legislation designed to protect smaller businesses and freelance workers.

(This article was written by Yoshikatsu Nakajima and Shiki Iwasawa.)

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