A Brief History of Netflix
As of March 8, 2025, Netflix’s market capitalization stands at $381 billion. Back in the 2000s, when founders Reed Hastings and Marc Randolph approached Blockbuster (an international movie and video game rental service since 1990) to sell their small business, it wasn’t surprising they were turned down. But in the end, Netflix outshone Blockbuster, crushing them by 2010.
People often underestimate newcomers, don’t they?
Netflix began in 1997 as a DVD-by-mail rental service and transitioned to streaming in 2007. Its major success came from producing original series like House of Cards and Stranger Things. Netflix also popularized the concept of "binge-watching" (watching an entire season in one go), revolutionizing the industry.
Why Netflix Struggles with Anime
We’re used to anime delivering a Japanese worldview, dialogue style, relationships, and character archetypes. Netflix started heavily investing in anime around 2018, but many of its projects have flopped. Here are the main reasons:
Poor Understanding of Anime Audience Preferences
Netflix leans toward Western storytelling, but anime fans expect a completely different approach. Examples:
Betting on 3D Over Traditional 2D
Many Netflix anime series use 3D animation, which rarely gets positive feedback. Examples:
Knights of Sidonia and Ajin – The CGI style feels unnatural and alienates fans of traditional anime.
Exception: Castlevania, which successfully blends 2D animation with Western aesthetics.
Lack of Depth and Atmosphere
Anime is cherished for its deep scripts, philosophical ideas, and charismatic characters. Yet Netflix often releases shallow stories that fail to captivate dedicated fans. Examples:
Lack of Cultural Understanding
Japanese studios craft anime with their traditions, references, and unique dramatic flair in mind. Netflix, however, tries to adapt anime for Western audiences, often causing rejection. Example:
Cowboy Bebop (Live Action) – Despite the iconic original, the adaptation flopped due to changes in its spirit and atmosphere.
Doesn’t it seem easier to create an original anime that preserves the style but uses behavioral patterns familiar to us, rather than adapting the unfamiliar traits of a Japanese everyman or schoolgirl? Japanese creators often portray European knights as dull and faceless, while fiercely upholding their traditional samurai or goddess imagery.
Meanwhile, producing 2D animation has become so unprofitable lately that some studios have shut down, even though viewer interest in 2D remains strong!
*“In recent times, several notable animation studios have unfortunately been forced to close:
Axis Studios: In July 2024, Scotland’s largest animation and visual effects studio collapsed, resulting in over 160 job losses. The company faced severe cash flow issues due to a decline in projects and rising labor costs. Axis Studios was known for its work on high-profile productions like Doctor Who, Shaun the Sheep, and various video game franchises. [thetimes.co.uk]
Factory Transmedia: This British stop-motion animation studio, recognized for projects like the reboot of The Clangers and the first season of The Tiny Chef Show, declared bankruptcy in 2023. The closure was attributed to tough market conditions, including fewer projects greenlit by broadcasters and shifting audience behaviors. [awn.com]
Vverh Animation Studio: Based in Moscow, Vverh Animation Studio announced its closure in early 2023. The studio was behind the feature film Ginger’s Tale, which saw disappointing box office returns. The closure reflects broader challenges in Russia’s 2D traditional animation sector, including high production costs and a limited market. [awn.com]
These closures highlight the evolving challenges within the animation industry, driven by economic factors, changing audience preferences, and shifts in global production dynamics.”*
Format and Release Model
Netflix drops entire seasons at once, while traditional anime airs weekly episodes. This reduces audience engagement, as the Japanese industry thrives on episode-by-episode discussions and anticipation.
We really need time to think and talk about what’s happening in each episode. YouTubers share opinions and point out manga details not shown on screen, while viewers build theories about what’s next. You can often see this in chats and Facebook groups.
Are There Any Successful Netflix Examples?
Despite the flops, Netflix has some successful anime projects:
Castlevania – A strong adaptation with a solid script and beautiful animation.
Cyberpunk: Edgerunners – Created by Japan’s Trigger studio, it received rave reviews.
Devilman Crybaby – Its experimental style and deep story brought success.
How Did the One Piece Premiere Go?
One of Netflix’s biggest projects was the live-action One Piece series. Despite fan skepticism, the premiere was a hit, earning high ratings and positive reviews. Its success stems from:
Faithfulness to the Original – Writers and actors worked to capture the manga’s spirit.
Quality Production – Visual effects and sets were crafted with care.
Involvement of the Original Creator – Eiichiro Oda played an active role in development.
This example shows Netflix can succeed with adaptations if it respects the source material and collaborates with fans.
Inviting the original author for consultation is a great move! Too often, when another director tweaks the story to their taste, they lose the atmosphere fans came for.
Conclusion
Netflix faces challenges in the anime industry due to a lack of audience understanding, reliance on 3D graphics, weak scripts, and misguided Western adaptations. However, successful projects prove the platform has potential if it partners with strong Japanese studios and meets fan expectations.
I went to the premiere of the American Ghost in the Shell adaptation myself. My friend overslept, so I had to go alone. Naturally, the movie didn’t capture the essence of the Japanese anime, which upset viewers. But if you view it as a standalone work, separate from the anime franchise, it had decent meaning.
Japanese stories are now torn between creating something light and fun with fanservice or diving into grim, senseless horror—horror and violence for the sake of it. That’s why we’re seeing so much nostalgia for the deep, dramatic tales of the 1990s.
Ready to create a Western anime with us? Join the Witch’s Pie project!
