In a recent interview with The Verge, Crunchyroll CEO Rahul Purini openly addressed the financial struggles associated with ads on the anime streaming service.
Responding to questions about profitability, Purini acknowledged that while it’s still early days for their ad-supported model, challenges remain.
The discussion unfolded in the context of Crunchyroll’s merger with Funimation, compensation controversies, and the platform’s openness to further mergers and acquisitions.
During the hour-long podcast, Purini shared insights into Crunchyroll’s perspective on the past, present, and future of streaming.
Notably, he touched on the complexities consumers face in managing multiple streaming services, emphasizing the company’s recent move to offer Crunchyroll as an a-la-carte channel on Amazon Prime.
Despite the struggles with ad revenue, Crunchyroll’s focus on free, ad-supported, and bundled offerings, such as Pluto TV and the Crunchyroll Channel, aims to introduce anime to a broader audience.
Their strategy involves leveraging platforms like Amazon Prime to reach new viewers and eventually convert them into Crunchyroll subscribers. Purini highlighted the role of Netflix as a powerful promotional tool for anime.
Acknowledging Netflix’s widespread popularity, especially among the Gen Z audience, he emphasized that Crunchyroll’s vast anime catalog and connections with Japan offer a more comprehensive and diverse anime experience.
The goal is to attract viewers with Netflix’s broad reach and then guide them to Crunchyroll for a deeper and more extensive anime journey.
In addressing the challenges of ad-based revenue models, Purini remained optimistic about the evolving streaming landscape.
He hinted at potential paradigm shifts driven by consumer preferences and the need for simplicity in content discovery.
Crunchyroll’s commitment to offering diverse content and engaging partnerships with streaming giants like Netflix, Hulu, and Amazon reflects their strategy to tap into wider audiences and position Crunchyroll as the go-to destination for a more profound anime experience.
The ongoing commitment to free ad-supported streaming, bundled offerings, and strategic partnerships positions Crunchyroll for continued growth and influence in the dynamic world of anime streaming.