Sony’s global anime streaming service, Crunchyroll, has surpassed 15 million monthly paid subscribers, according to the company’s latest quarterly earnings report.

To put the niche SVOD's accomplishment in proper context, the much broader reaching Starz finished 2023 with 15.88 million subscribers.

A swell in paid subscribers contributed to a $166 million increase in sales for Sony’s picture department, according to the company’s financials.

That was despite a decrease in both Sony’s theatrical releases and series delivered in television productions.

“Today marks an exciting milestone not only for Crunchyroll, but for the entire anime industry,” said Rahul Purini, pdresident of Crunchyroll in a statement. “It is proof that the rich stories, characters and experiences that our partners create are resonating deeply with fans at record numbers all over the world.”

Currently, the streaming service has the largest global library dedicated to anime, with more than 25,000 hours of content across 50,000 episodes.

The Crunchyroll library includes anime IP such as One Piece, based on the same manga that Netflix adapted last August to critical live-action success.

The news comes just weeks after Crunchyroll updated its branding, introducing a new logo with an eye symbol, a modernized font set and a vibrant theme featuring orange, black and white.

Last year, the streaming service also partnered with Sony Music Entertainment Japan to bring anime-related music videos and concerts to the platform.

Since then, Crunchyroll has featured over 3,300 music-related broadcasts.

Overall, Sony reported a 10% increase in operating profit.

Sony’s Crunchyroll anime service said that its app is being added to Samsung smart TV sets.

The addition will make it easier for Samsung set owners to subscribe to Crunchyroll and view the platform’s content.

"Anime is one of the fastest-growing entertainment mediums worldwide. We’re thrilled to enhance access to Crunchyroll for Samsung's Smart TV users,“ Kaliel Roberts, chief product officer at Crunchyroll, said. Samsung is providing a seamless experience for both dedicated anime fans and the anime-curious, allowing them to easily sign up and access their favorite anime directly on their TV screens.” 

Available on all 2017-2023 Samsung Smart TVs, users can find the Crunchyroll app in the Samsung Smart TV app store.

Crunchyroll’s library includes more the 46,000 movies and TV episodes, 3,300 Japanese music videos and concert specials. 

Titles included My Hero Academia, Jujutsu Kaisen, Demon Slayer: Kimetsu no Yaiba, Chainsaw Man and Attack on Titan, as well as classics such as Cowboy Bebop and One Piece.

Crunchyroll is available in more than 200 countries and territories offering the deepest dedicated anime through more than a dozen streaming platforms.

Crunchyroll said it reached an agreement with Amazon to distribute Crunchyroll’s subscription anime service on Prime Video Channels in the U.S., Canada, Sweden and the U.K., beginning Tuesday.

Prime subscribers will be able to pick from two Crunchyroll memberships. 

The Fan package, starting at $7.99 a month, allows viewers to watch the entire Crunchyroll library ad-free, with access to new episodes shortly after they are released in Japan.

The $9.99 a month Mega Fan package enables user to download titles, with additional benefits to be added in the near future.

Also Read: Crunchyroll, GSN Team Up for New Anime FAST Channel

“Crunchyroll offers an anime adventure for every kind of fan. From sports to romantic comedy, horror and action to slice-of-life, even the anime-curious can get immersed in our library,” said Terry Li, executive VP of emerging business, Crunchyroll. “We look forward to welcoming new fans into the anime community through our launch on Prime Video Channels.”

Crunchyroll will be available via Amazon Prime Video Channels in more countries later this year.

“Prime Video already offers an unparalleled collection of premium entertainment, including third-party channels so customers can enjoy their favorite movies and series directly on Prime Video,” said Matt Cohen, head of content acquisition and partnerships, Prime Video Channels. “With the addition of Crunchyroll to Prime Video Channels, Prime members can now easily stream anime content on Prime Video.”

Crunchyroll is controlled by Sony Group.

Crunchyroll and GSN have teamed up to launch a new Crunchyroll free ad-supported streaming television channel that will promote anime 24 hours a day.

The new channel launched Wednesday on LG Channels, The Roku Channel and Vizio WatchFree Plus. It will be added to Amazon Freevee on Oct. 17.

Crunchyroll and GSN are both controlled by Sony Pictures Entertainment.

“Crunchyroll Channel is a gateway to the world of anime where we will guide viewers to discover new worlds, new stories and new characters,” Rahul Purini, president of Crunchyroll, said. “And thanks to our distribution partners at launch, millions of fans have easy access to the medium that is taking the world by storm.”

Also Read: AMC Networks Adds to Streaming Portfolio with Sentai Anime Acquisition

The network will be programmed with series dubbed in English at launch. 

Series available at launch include Horimiya, Ranking of Kings, Moriarty the Patriot, PSYCHO–PASS, Arifureta, Sugar Apple Fairytale, To Your Eternity and Code Geass. 

Going forward, blocks will be scheduled for viewers to sample the wide range of anime being created from Japan.

New and premium anime content will remain on Crunchyroll’s SVOD and AVOD services.

Also Read: Crunchyroll News Relaunches With Expanded Coverage and Features

“GSN is thrilled by the massive response from our platform partners for this channel, which is a testament to Crunchyroll’s brand and library.  We are grateful to bring this channel to market,” said Tim Carry, executive VP of distribution for GSN, 

Crunchyroll, the specialty subscription streaming service acquired by Sony in 2021, is doubling down on the news platform it uses to lure and service its anime fans.

The relaunched Crunchroll News will include an expanded staff generating more breaking anime news, as well as larger features about the industry. Anime experts will expand production of weekly columns. And from "cosplay roundups" to polls to quizzes, Crunchyroll is simply promising more news content all around, not to mention a snazzy new website. 

"Since 2011, Crunchyroll News' mission has been to inform and delight anime fans,” said Crunchyroll Editorial Director David-Christopher Galhea, in a statement. “With this relaunch we're thrilled to serve every fan — new and returning — an even greater experience of illuminating stories and in-depth coverage of their favorite anime. From exclusive interviews to red carpet events, Crunchyroll News will continue to celebrate the rich, diverse stories and voices of the anime community."

Crunchyroll has tiered pricing plans ranging from a $7.99 single-stream version to a $14.99-a-month tier letting up to six fans in the domicile watch the platform at once. 

AT&T has closed its $1.175 billion sale of anime-focused subscription streaming service CrunchyRoll to Sony. 

CrunchyRoll just passed the 5 million subscriber threshold, with some of those customers paying as much as $7.99 for the premium no-ad tier. The service, which also has free ad-supported iterations, has 120 million users. 

AT&T, which just closed the spin-off of its pay TV business, and is the process of spinning off WarnerMedia, announced the sale of CrunchyRoll back in December, part of an overall push to get back to the core business of connectivity and 5G. 

““Crunchyroll adds tremendous value to Sony’s existing anime businesses, including Funimation and our terrific partners at Aniplex and Sony Music Entertainment Japan,” said Tony Vinciquerra, chairman and CEO of Sony Pictures Entertainment, in a statement. “With the addition of Crunchyroll, we have an unprecedented opportunity to serve anime fans like never before and deliver the anime experience across any platform they choose, from theatrical, events, home entertainment, games, streaming, linear TV -- everywhere and every way fans want to experience their anime. Our goal is to create a unified anime subscription experience as soon as possible.”

Idris Elba and his wife Sabrina have made a deal with Crunchyroll to develop an animated sci-fi thriller with the working title Dantai. 

Crunchyroll, in the process of being sold to Sony’s Funimation Global Group by AT&T for $1.175 billion, said it now has more than 4 million subscribers, up 1 million in the past six months.

Also Read: AT&T Sells Crunchyroll to Sony for $1.175 Billion

The Elba's will serve as executive producers for Dantai, in conjunction with their production companies, Green Door Pictures and Pink Towel Pictures. 

“We’re really excited to be announcing this deal on our first anime," they said. “We’re both fans of the genre and see a huge opportunity to create something unique for a powerhouse like Crunchyroll. The story of Dantai is our first collaboration as producers together and is one that is close to our hearts.”

Dantai is described as an Afro-futuristic science-fiction series set in a city where biotechnology has created a widening gap between the haves and have nots.

Also Read: Adult Swim Teams with Crunchyroll on ‘Fena’

“Through anime and anime-inspired originals, Crunchyroll has been leading the charge for the popularization of adult dramatic animation for more than a decade and we are fast becoming the epicenter for the next generation of animation fans, as is evidenced by incredible growth in registered users and subscribers” said Joanne Waage, general manager of Crunchyroll. “Gens Y and Z have experienced superhero fatigue and are hungry for the new stories and ideas that our creators tell. This development deal with Sabrina and Idris Elba is another example of how we’re working with best-in-class partners to bring in new audiences and tell fresh and compelling stories through a medium that transcends genres and generations.”

Also Read: Crunchyroll Sets Slate of Original Anime Series

Crunchyroll is adding originals to its library of more than 1,000 titles and 30,000 episodes, which are available to fans in 200 countries and territories. Crunchyroll currently has more than 100 million registered users and more than 50 million followers across social media, in addition to its 4 million subscribers.

AT&T, looking to get out from under a mountain of debt, said it agreed to sell its Crunchyroll anime business for $1.175 billion to Sony’s Funimation Global Group.

AT&T is reportedly in the process of selling its DirecTV unit and has gotten bids exceeding $15 billion and parts of its Xandr advanced advertising unit are on the block.

Cruncyroll has more than 3 million subscription video on demand subscribers and serves 90 million registered users across 200 countries.

Related: AT&T Asks Tegna Stations for OK to Show Football

“We are proud to bring Crunchyroll into the Sony family,” said Tony Vinciquerra, chairman and CEO of Sony Pictures Entertainment. 

“Through Funimation and our terrific partners at Aniplex and Sony Music Entertainment Japan, we have a deep understanding of this global artform and are well-positioned to deliver outstanding content to audiences around the world,” Vinciquerra said. “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.”

Funimation is a joint venture between Sony Pictures Entertainment and Sony Music Entertainment’s Aniplex subsidiary. It's streaming services offer over 700 anime series and more than 13,000 hours of content available on 15 platforms and in 49 countries. Funimation’s in-house team designs must-have, exclusive collectibles distributed through major retailers and an e-commerce site.

Crunchyroll may be on the block as debt-strapped AT&T ransacks its larder for salable assets. But that uncertainty isn’t keeping the venerable anime-focused streaming service from rolling out new initiatives as it moves past 3 million subscribers and any old-school definition of “niche.” 

This week, the site launched two higher-priced tiers for its most devoted fans, a seemingly counterintuitive move amid the pandemic, new competitors and a burgeoning recession. But it’s exactly the right move to give Crunchyroll’s most ardent fans more of what they love, said General Manager Joanne Waage, speaking in a Zoom webinar this week. 

"As you move down the spectrum [of site users], you have people who are collectors,” Waage said. “They are looking for exclusive merchandise. It’s almost like owning a piece of the show. We really try to cater to those while not cutting off anyone else. We're creating pathways that allow for the maximum amount of exposure to all fans while catering to those who want a bit more.”

The site already has 3 million “Fan” subscribers who pay $8 a month for access to 1,000 animated series with 30,000 episodes, and day-and-date access to new shows when they debut in Japan. Popular series include Dragon Ball Super, One Piece, Black Clover and Boruto: Naruto Next Generations.

That paying subscriber base sits alongside 70 million registered users in 200 countries and eight languages who access the service from free, ad-supported services around the web and beyond.

Now, the most devoted fans will have even more options. 

The new “Mega Fan” tier will cost $10 a month, and adds offline viewing and access to four concurrent video streams. Mega Fan subscribers also get deals on Crunchyroll merchandise.

If that all isn't enough, the $15-a-month “Ultimate Fan” tier provides six ad-free concurrent streams, a “swag bag” of merchandise every year, and members-only access to even more merchandise tied to specific shows.

"They want to do more, they want to interact, they want to create and they want to own," Waage said.

For all the focus here on the “whales” among its fans, that’s not to say the company doesn’t value its free, ad-supported users, Waage said. 

"Internally, we celebrate the 70 million," Waage said. "That is the base of people who've been introduced to anime primarily through Crunchyroll.”

Crunchyroll’s website, in multiple languages, is loaded with forums, news, opinion, images, and other material. And Waage said its social-media accounts boast a prodigious 40 million followers.

Crunchyroll depends on the free tier for "opening up and expanding the top of the funnel," Waage said. The service cultivates those registered users, trying to convert casual viewers into paying subscribers, website users, and consumers of merchandise, events, games and other products. 

"We will always never not be free," Waage said, meaning the service will always have a free tier.

Crunchyroll was founded in 2006 by an anime super fan Kun Gao, who couldn’t get the shows he wanted through traditional media. In the early days, Waage says frankly, “It was a pirate site.” 

Eventually, the site cleaned up its act, helped by more openness among Japanese animation studios and distributors to sign deals for overseas online rights. The company’s subscriber base grew slowly at first, taking a decade to hit its first million, then two more years to hit 2 million. Crunchyroll hit 3 million subscribers earlier this summer, just 18 months after hitting 2 million, Waage said.

The company super-serves its fan base in a variety of ways, like watch parties that celebrate the debut of new series. It’s a way to engage potential fans to shows they might not hear of otherwise, and feeds that funnel.

“We build franchises,” Waage said. “We don’t just take something and put it behind a pay wall and hope the algorithm brings people to it.” 

Next week, the company will hold its annual Crunchyroll Expo. Normally, 35,000 to 40,000 fans, many dressed in cosplay outfits from their favorite shows, would descend on the San Jose Convention Center. 

That won’t be possible this year, but the company is trying to make the expo a compelling fan experience nonetheless, focused on, “How do we keep people connected and make lemonade out of lemons?” Waage said.

"This year with Covid [-19], we had to look at it differently, to think of it as a virtual global event," Waage said. "We'll be having all the big panels translated into French, Spanish, German, Russian" and other major languages.

Crunchyroll’s international focus had already accelerated the past couple of years, Waage said, helped by initiatives like adding Portuguese to its language offerings. That move opened up the huge Brazilian internet market, and another corner of Europe. 

Earlier this year, Crunchyroll bought manga publisher and anime distributor Viz Media Europe, beefing up its presence in Germany and France. Waage said France in particular is one of the world’s largest anime and comic/manga markets, building on home-grown institutions such as Tin Tin, Cowboys and Aliens, Blueberry and Asterix and Obelix.

The company also has moved into profitable areas adjacent to the $20 billion anime market, especially mobile games based on its series. Anime-based mobile games are a $4 billion-market: Fate/Grand Order’s game alone generates $1 billion in annual revenue, Waage said. 

Now, Crunchyroll has jumped into that sector in a big way.

“It’s a huge opportunity here that we’re delving into," Waage said. “We have six games in the market, two on the way, with the announcement of a [game based on a] massive IP coming later in the year.”

The company is also getting into original programming, rather than relying on licensing from existing suppliers amid increased competition. Two original series have already debuted, with another dozen on the way, including three that Waage said haven't been announced yet.

The shows themselves come from a variety of sources. Some were created on contract with Japanese studios, others come from the U.S. or other international providers who bring a different sensibility that may translate to broader audiences, Waage said.

"We see this as an opportunity to open up the medium quite a bit," Waage said. “There’s an opportunity to shift the pipelines to produce content that resonates more with that Western audience. We're leveraging our data to push the market and super serve our audience."

All this activity comes amid sale rumors. AT&T acquired Crunchyroll parent Otter Media when it bought out partner Chernin Media amid the far bigger 2018 acquisition of Time Warner. That $85 billion deal helped saddle AT&T with what is now a net debt total of $152 billion, according to the company’s most recent quarterly earnings. 

Between getting HBO Max launched, reorganizing WarnerMedia with hundreds of layoffs and investing in the capital-intensive rollout of its 5G mobile network, AT&T has been looking for cash to pay down some of that debt. Accordingly, reports surfaced that AT&T was in talks with Sony – which already owns anime competitor Funimation – about a possible $1.5 billion sale of Crunchyroll.

For the moment, HBO Max and Crunchyroll remain stablemates, and business partners. HBO Max spotlights Crunchyroll content, which Waage said helps both services. 

“It’s front and center [on HBO Max] because they get it,” Waage said. “When people see the [viewership] numbers, they get it.”

Those numbers have attracted interest in anime programming from other streaming services competition, including Netflix, which has a significant investment in the genre, and its own hits such as Legend of Korra. Amazon has tried to do the same, with less success. Even HBO Max separately features movies from Studio Ghibli, including Oscar winner Hayao Miyazaki’s sublime films. 

But Crunchyroll’s secret weapon might be its tight focus on the devoted anime-consuming community. might be its secret weapon.

"Most of those [competitors] are utility players. They feel like something you go to but not a home you come to," Waage said. "But we are able to be that home for fans because we are fans. I don’t think we could do it otherwise."

AT&T’s Cartoon Network and Crunchyroll units said they are teaming up to return the anime block Toonami to Latin America starting Aug. 31.

Starting out, the block will run Monday through Friday from midnight to 1 a.m. and feature Dragon Ball Super and Mob Psycho 100. Each series will be dubbed into Spanish and Portuguese.

Cartoon and Crunchyroll are working together to create the original series Fena: Pirate Princess, which will air in 2021, Crunchyroll and Adult Swim are also teaming up for Blade Runner -- Black Lotus.

“The team at Cartoon Network have been incredible partners in helping us grow the love of anime around and their Toonami block has been the premiere television destination for the anime community,” said Brady McCollum, head of global operations and international, Crunchyroll. “By powering Toonami’s return to Latin America with series curated by Crunchyroll, we can’t wait to create even more fans of the medium we love.”

AT&T is reportedly in talk to sell Crunchyroll to Sony.

”We're excited to have Toonami back, along with a number one player such as Crunchyroll”, added Pablo Zuccarino, senior VP and channel manager, Cartoon Network, Boomerang & Tooncast Latin America. “In our successful history, anime has been part of our DNA, and thanks to this association we´ll be delivering a curated content selection to a whole new generation of fans."

Adult Swim said it is teaming up with AT&T sister company Crunchyroll to produce an original anime series Fena: Pirate Princess.

The show is expected to air as part of Adult Swim’s Toonami black and stream in Crunchyroll in 2021. 

Last year, Adult Swim and Crunchyroll expanded their programming partnership and recently announced plans to make Uzumaki and Blade Runner: Black Lotus. 

“I’m thrilled to be able to announce our next co-produced anime series with our partners at Crunchyroll and bring Nakazawa’s unique vision to life,” said Jason DeMarco, senior VP/creative director on-air for Adult Swim. “I hope you come to love these characters as much as I do.”

Fena: Pirate Princess is a 12 episode original anime series that tells the tale of a young orphan girl who aims to forge a new identity, free of bondage, and search for a place where she can truly belong.

“The global anime community is going to love adventuring alongside Fena in this new series setting sail next year,” said Sarah Victor, head of development, Crunchyroll. “We’re delighted to be working alongside Adult Swim to bring this new series to life.”

Fena: Pirate Princess, directed by Kazuto Nakazawa and with animation by Production IG, will be an Adult Swim and Crunchyroll Production.

Crunchyroll, AT&T’s anime streaming brand, is rolling out its first full slate of original series.

The shows, starting with the fantastical mystery In/Spectre, which is streaming now, will cover a variety of genres and roll out over the course of the year.

“Since our launch in 2006, Crunchyroll has been at the forefront of anime fandom and a driving force in the popularizing of this beloved genre worldwide,” said Joanne Waage, general manager of Crunchyroll. “In keeping with this tradition, we are incredibly excited to announce our first slate of Crunchyroll Originals. These stories range from the traditional to the innovative, blending eastern and western ideas within the spectrum of anime. We hope this content will not only delight our current fans but also create a pathway for new fans to fall in love with this amazing art form.” 

Upcoming Crunchyroll originals include:

Tower of God - A Crunchyroll and Webtoon Production, based on the comic series Tower of God created by SIU and published by Webtoon. This dark fantasy action series centers on the journey of a young man as he battles his way through the mysterious Tower, building friendships, discovering the rules that govern this tower, and facing unimaginable terrors, as he strives to find the only friend he's ever known. Animation produced by Telecom Animation Film. Production Management provided by Sola Entertainment. Coming to Crunchyroll spring 2020.

Onyx Equinox - In this Crunchyroll Studios Production created by Sofia Alexander, a young Aztec boy is saved from death by the gods and chosen to act as ‘humanity’s champion,’ forced to discard his apathy toward his fellow man and prove humanity’s potential in a fight that spans across fantastical-yet-authentic Mesoamerican cultures. Premieres summer 2020 on Crunchyroll.

The God of High School - A Crunchyroll Original, based on the comic series The God of High School created by Yongje Park and published by Webtoon, this action-packed series follows a high schooler and his friends as they compete in an epic tournament, borrowing power directly from the gods and uncovering a mysterious organization along the way… With the promise of their heart’s deepest desires, motivating their tournament victory. Animation produced by Mappa. Production Management provided by Sola Entertainment. Coming soon on Crunchyroll.

Noblesse - A Crunchyroll and Webtoon Production, based on the comic series Noblesse from Jeho Son and Kwangsu Lee and published by Webtoon, this fantasy follows a powerful vampire noble who is thrown into modern civilization after 820 years of slumber. Animation produced by Production I.G. Coming soon on Crunchyroll.

Meiji Gekken: Sword & Gun (Working title)” - Japan, 1870. We follow an ensemble of characters - a former samurai, a yakuza bodyguard, a devious spy and a geisha assassin - as they try to find their place in the rapidly evolving Meiji-era while escaping the sins of their pasts…Inspired by historical events. A Crunchyroll Studios Production. Coming soon on Crunchyroll.

FreakAngels - After civilization comes to a sudden and crashing end, twelve 23-year-old psychics living in the rubble of London must check their wild impulses and discover their better angels in order to rebuild society. A Crunchyroll Studios Production based on the graphic novels by Warren Ellis & Paul Duffield. Coming soon on Crunchyroll.

High Guardian Spice - In this Crunchyroll Studios production created by Raye Rodriguez, four fierce girls train to become great heroes at High Guardian Academy, where they form allegiances, uncover betrayals, and discover their true identities, while preparing to protect the world from an ominous unknown threat. Coming soon on Crunchyroll.

Crunchyroll has been co-producing original content since 2015, working with partner in Japan. The originals will come on top of 1,000 titles and 30,000 episodes of acquired shows available to viewers.

WarnerMedia divisions Crunchyroll and Adult Swim are teaming with Alcon Television Group to produce a half-hour series based on the Blade Runner science fiction film franchise.

Blade Runner—Black Lotus will feature 13 half-hour episodes, produced by animation studio Sola Digital Arts. Kenji Kamiyama, best known for his work on “Ghost in the Shell: Stand Alone Complex,” will direct all episodes of the premiere season.

The series will be based on the 2017 film sequel Blade Runner: 2049, starring Ryan Gosling.

Adult Swim will have worldwide rights to the show, excluding Asia, to distributed English dubbed versions of the series. The cable network will run the series on its popular anime programming block, Toonami. Anime-focused SVOD platform Crunchyroll, meanwhile, will have worldwide streaming rights.

The producers did not express a premiere date. 

Crunchyroll, Ellation’s anime-focused SVOD service, is branching into the world of linear TV through a partnership with Brazilian television network Rede Brasil (RBTV).

Starting April 21, Crunchyroll and RBTV will offer a programmed anime hour featuring two subtitled shows, Black Clover and Re:Zero. The block will run on Saturdays at 8 p.m., and rerun on Sundays at 11 a.m.

That hour on RBTV, they said, will also include eight minutes of local programming from Crunchyroll’s Brazilian community managers, Maria Luiza Petranski Arantes and Beatriz Braz Accioly, who will “explore the latest and greatest in anime and fandom.” (Here’s a video preview from them.)

The TV-focused deal will help to broaden Crunchyroll's reach and attempt to establish more connections with anime fans. It’s another example of how SVOD services are expanding their game plan in order to stand apart in a crowded and fragmented market.

RELATED: SVOD Shakeout: The Survival of the Fittest (subscription required)

Among other recent moves that extend beyond its core OTT focus, Crunchyroll teamed with Sumitomo Corp. and GREE to launch its first game, Memoria Freese, for iOS and Android devices.

Crunchyroll, which is also distributed through VRV (Ellation’s SVOD aggregation service), said it has more than 40 million registered users and more than 1 million subscribers. 

Crunchyroll, Ellation’s Anime-focused subscription VOD service, is branching out into games.

Crunchyroll, in partnership with Sumitomo Corp. and GREE, has launched its first game, called Memoria Freese, an adventure title for iOS and Android devices.

The game, released amid season 2 of DanMachi (the anime off which the game is based) is set in the world of Orario, where bands of adventurers gather to seek treasures in an underground labyrinth, known as Dungeon. The North American release of Memoria Freese features dialogue of the original Japanese version with English subtitles provided. GREE developed and designed the game, while Ellation and Sumitomo Corp. are in charge of the game’s distribution, localization and marketing under the Crunchyroll Games brand.

RELATED: SVOD Shakeout: The Survival of the Fittest (subscription required)

Crunchyroll, a service with more than 1 million paid subscribers, is offering the game for free, with in-app purchases. Crunchyroll said 90% of its users identify as gamers.

Crunchyroll’s move into gaming comes as it, and other SVODs, attempt to differentiate in a growing and fragmented market, establishing stronger ties with their audiences through ancillary but relevant products and components that extend beyond their core video offerings.

In Crunchyroll’s case, the move into gaming follows other initiatives tied to the service, including events like Crunchyroll Movie Night and Crunchyroll Expo. 

Comcast Technology Solutions, a unit of Comcast focused on multiscreen video distribution and advertising, has formed a partnership with DLVR that aims to optimize the video experience across a wide range of devices.

RELATED: Comcast Launches New Tech Unit

CTS said the agreement, which will tap into DLVR’s real-time content delivery network (CDN) switching capabilities and Quality of Experience analytics systems, will add routing flexibility to its CDN-agnostic Origin service and enable a turnkey approach for multi-CDN deployments.

They also believe that the combination of the Comcast CDN and DLVR’s stream optimization and CDN switching capabilities will enable partners to simplify the management of multi-CDN approaches that help them manage peaks by load balancing.

RELATED: Comcast Technology Solutions Hires Bart Spriester as GM, Video Platform

An example is Crunchyroll, Ellation’s SVOD service focused on anime, which uses DLVR’s platform to measure the performance of its major CDNs, including the Comcast CDN, and routes video requests in real time to the optimal CDN for each user.

“Consumers today maintain incredibly high expectations when it comes to video content delivery —they want it at lightning fast speeds and the ability to access it whenever they want, on whatever device,” Bart Spriester, GM at Comcast Technology Solutions, said in a statement. "The Comcast CDN provides our partners with the flexible and reliable delivery platform they need to satisfy their consumers’ expectations and support their business’ expanding needs. In partnership with DLVR, we are better able to ensure that these needs are consistently met.”

Ellation, the OTT-focused company tied to Otter Media (the AT&T-The Chernin Group joint venture) has tapped Mediamorph’s cloud-based platform to help it manage content rights and contracts tied to subscription services such as Crunchyroll and VRV.

Ellation manages more than 25,000 titles across Crunchyroll and VRV, a new SVOD aggregation service, along with 20 million registered users and more than 1 million paid subs across both OTT brands.  

RELATED: Mediamorph Lands $21M ‘C’ Round

Ellation joins a list of known Mediamorph customers that includes Liberty Global, Frontier Communications, and Altibox. Ellation is a portfolio company of Otter Media, the OTT-focused joint venture of AT&T and The Chernin Group.

RELATED: Mediamorph Lands Hulu Deal 

“As we continue to grow, it is critical for us to scale successfully and better manage the complex nature of our contracts and title rights,” Susanna Hofmann, Ellation’s CFO, said in a statement. “Mediamorph will both improve the visibility into our library of content to take full advantage of its value, and more effectively aid the automation of our financial processing.”

Boston – Netflix, Amazon and Hulu set the stage for OTT-delivered subscription VOD services, but a massive wave of more focused, genre-based has emerged to reach a more targeted audience, and that wave is only expected to get bigger.

That was a big focus here Tuesday (May 17) in a session titled, “Single and Loving It: The Who, How and Why of Standalone SVOD."

The benefits of this approach is that services can be created to target the “super fan” and serve an audience in a unique way that broader SVOD services don’t offer, said Martin Keely, GM of subscription platforms at Fullscreen, which recently launched a $4.99 per month SVOD service.

“We’re just getting started,” he said.

Seth Laderman, EVP and GM of Comic-Con HQ, likened the rapidly expanding SVOD market to a “race,” as everyone attempts to build and launch services for specific audiences, and then get those viewers to actually pay.

But he said there’s some risk involved in targeting niches, because those viewers will also be looking to find similar content from other sources.

There’s an “endless appetite” for premium content, so providers need to rein it in with a curated service,  Ben McLean, SVP of business operations and strategy, digital, at NBCUniversal and Seeso, the new comedy-focused SVOD service, said.

He said offering limitless choice works if viewers know what they want to watch. With Seeso, he said, “We want to [offer] a highly curated, highly-programmed environment” that can engage an audience quickly.

“Seeso is our first swing at this,” McLean said, calling its comedy focus a “large niche.” And expect more. NBCU, he added, is also “looking at digital opportunities across the landscape.”

“There are no more gatekeepers,” said Tom Pickett, CEO of Ellation, a company that produces, designs and helps to market services/brands like Crunchyroll, an Anime-focused service with more than 700,000 paid subs, and Creativebug, a service for craft enthusiasts.

But he agreed that the downside of this second stage of SVOD is the amount of choice and fragmentation in the market, which makes it difficult for a new service to breakout from the pack.

And the technology that underpins these services is as key as the content, David Mowrey, VP of product management at Clearleap, said, noting that more than 100 standalone SVOD services have been stood up over the past nine months.

Not everyone has the resources of  a Netflix to build in all the content protection, interfaces, analytics and billing support. “It’s an extremely challenging thing for a standalone service,” he said. “You need a solid technology partner to do that.”

And the core video service is just one element of these services. To gain and retain customers, SVOD providers must think about “dimensions that go well beyond the video,” Pickett said.

In the case of Crunchyroll, the service is building in additional perks and benefits. One example is its partnership with a service called Loot Crate, which a mystery box of four to six pop culture items. Loot Crate, Pickett said, recently launched a new box focused on Anime, so Crunchyroll offers its subs a $5 discount for it.

Subscription-based streaming services are on fire. The Leichtman Research Group recently found that 77% of adults aged 18-24 stream content via an SVOD service each month, and as that generation becomes older, that’s likely to become the norm. Given the fact that an estimated 206 million homes, across 200 countries will subscribe to a video service by 2020, it seems like global expansion is the next logical step for digital video content.

But taking an SVOD service global isn’t simply a matter of flipping a “on/off” switch. Though SVOD services might not necessarily need to worry about the high costs of brick-and-mortar storefronts, large staff or local infrastructure, there are cultural and physical elements that businesses will need to overcome when going global. Because international audiences are acutely aware of corners being cut and getting a watered-down version of the U.S. product, SVOD services need to have a heightened degree of empathy to make an expansion successful for international customers. Taking care to address a number of key questions is imperative when making any sort of global expansion.

How are people consuming media?

While more Americans are going online and mobile with their viewing habits, many people in Europe, for example, consume content differently. In countries like Italy and Germany, DVD consumption is still commonplace, as are set-top devices that are bundled with other services, making standalone offerings relatively new. When there is an appetite for online video, limited bandwidth challenges impact many parts of Southeast Asia and Middle East, making short form content more popular than longer, data-heavy programming. Many Latin American countries have stronger mobile consumption habits, which can impact how long viewers are willing to spend watching a smaller screen.

On top of that, different countries’ design preferences will require design tweaks, or even overhauls, to appeal to the local audience. Japanese homepages tend to be densely filled with images and content, which stands in contrast to U.S. websites with typically clean designs. Arabic interfaces are often designed right to left. And sometimes it’s not even a matter of preference; in Germany, for example, longer German words will necessitate design tweaks.

Where are consumers in the lifecycle for your specific media?

Alongside general concerns, niche SVOD services need to be particularly aware of their various global audiences’ desire because of their targeted content libraries. Unlike Netflix or Amazon Prime, that offer a little bit of content for every audience, niche SVOD services have to make sure their targeted content is culturally relevant and on trend so their customers feel they’re getting their money’s worth or risk having a disinterested audience.

On the flipside though, certain cultural similarities and values shared among audiences can result in popular cross-over content that performs well outside of its intended domestic audience. For example, Slavic countries share a lot of content, Arabic content can be popular in Turkey and vice versa, and Korean content works well in China, Southeast Asia and Japan.

What are the local media and privacy laws?

Content-streaming services are no strangers to the complications of international law, and because digital media is still a new industry, most countries are trying to figure out the right mix of privacy and protection laws. While collecting a customer’s personal and consumption data might be common practice in the U.S. to improve their viewing experience, different countries have different laws regarding how you can access and store customer data.

Other countries, like some in Latin America and Europe, also have strict rules requiring a certain amount of locally produced content to be given sufficient playtime and billing on any foreign service. Because of these kinds of concerns, international players will often try to find local partners in order to set up country-specific operations to satisfy local laws.

What are the local payments?

Without a full understanding of the intricacies of various countries’ payment habits, turning a profit will be next to impossible. While most Americans are comfortable using credit cards, in Latin America, prepaid cards are more prevalent and most European consumers use debit cards. Not only that, but without the right local payment integrators, U.S.-based companies can incur significantly higher transactions fees and charge defaults, resulting in overall negative impacts to the gross margin. Lastly, currency fluctuations are always a concern, and some countries, like Brazil, require local presence and incorporation if a U.S. service wants to charge in local currency.

Think ahead

Online video businesses need to consider these kinds of questions when building themselves out in order to provide the best experience possible for their customers or risk shooting themselves in the foot. And it’s important to start thinking about them sooner rather than later. By addressing these questions before global expansion, businesses will save themselves time and money compared to having to retrofit their platforms later on. After all that is built out, possible investments in original country-specific content in each country would be the next step to really elevate an SVOD service above the rest of the pack to become an ingrained element of the local content streaming culture.

-Terry Li is vice president, general manager and head of International at Crunchyroll, a  multiscreen OTT service specializing in Japanese anime and Asian content that is majority-owned by Otter Media, a joint venture of AT&T and The Chernin Group