Disney's Strategic Underinvestment in Anime Outside Asia: Untapped Value and Long-Term Risks

Disney's foray into anime has long been a niche within its broader entertainment empire, but its current strategy outside Asia reveals a glaring underinvestment that could undermine its global ambitions. While the company has secured exclusive distribution rights to a small but growing library of anime titles, its marketing and promotional efforts in non-Asian markets remain anemic. This disconnect between asset ownership and market engagement raises critical questions for investors: Is Disney squandering a high-growth opportunity, or is its cautious approach a calculated hedge against risk?

The Anime Gold Rush in Non-Asian Markets

The global anime market is surging, driven by streaming accessibility, cultural normalization, and a diversification of genres. North America and Europe are projected to grow at compound annual growth rates (CAGRs) of 16.3% and 11.2%, respectively, from 2025 to 2030. This boom is fueled by platforms like Netflix, which has aggressively acquired and co-produced anime titles, and Amazon, which has invested in localized content. Meanwhile, anime's integration into mainstream pop culture—via themed events, merchandise, and social media virality—has expanded its appeal beyond traditional otaku demographics.

Disney, however, has lagged in capitalizing on this trend. Despite holding exclusive rights to titles like Twisted-Wonderland The Animation and Bullet/Bullet, its English-language marketing has been minimal. For instance, Twisted-Wonderland—a high-profile collaboration with Kodansha—was confirmed as a global exclusive only through a last-minute press release, with no trailers or promotional campaigns on Disney+ or Hulu. Similarly, Bullet/Bullet, a project led by Jujutsu Kaisen director Sunghoo Park, saw its English-language content shared independently by Disney+ Singapore, bypassing the company's centralized marketing strategy.

Competitors Are Eating Disney's Lunch

Netflix and Amazon have positioned themselves as anime powerhouses by prioritizing algorithmic curation, localized dubs, and aggressive content acquisition. Netflix's Cowboy Bebop and The Witch and the Hundred Knight have become global hits, while Amazon's partnerships with Japanese studios ensure a steady pipeline of exclusive titles. These platforms have also mastered the art of community engagement, leveraging social media and influencer networks to sustain interest in niche genres like isekai and psychological thrillers.

Disney's recent partnership with Webtoon Entertainment—aimed at adapting Marvel and Star Wars comics into vertical-scroll webtoons—signals a belated attempt to tap into non-Asian markets. While this collaboration could drive user growth for Webtoon, it does little to address Disney's core issue: its streaming platforms remain underpromoted in regions where anime is booming. The company's focus on “quality over quantity” in anime production, while laudable, risks alienating audiences accustomed to the high-volume, genre-diverse catalogs of competitors.

The Risks of Strategic Apathy

Disney's underinvestment in non-Asian anime markets exposes it to several long-term risks. First, it cedes market share to rivals that are better positioned to capture Gen Z and millennial audiences. Second, the company's passive approach may erode the value of its exclusive content library, which could become obsolete if not actively promoted. Third, the growing profitability gap among anime studios—where only a few major players reap the lion's share of streaming revenue—could leave Disney's smaller partners in the lurch, undermining the sustainability of its content pipeline.

Moreover, Disney's reliance on Webtoon as a proxy for global expansion is a double-edged sword. While the partnership offers access to Webtoon's 19% MAU growth in English-speaking markets, it lacks the immediacy of direct-to-consumer engagement. Investors should monitor whether Disney's streaming segment can translate Webtoon's user growth into higher subscriber retention and revenue per user.

Untapped Value: A Path Forward

Despite these risks, Disney's underinvestment in non-Asian anime markets also presents an opportunity. The company's vast IP portfolio—ranging from Marvel to Star Wars—could be reimagined through anime formats that resonate with global audiences. For example, a Star Wars anime series co-produced with Studio Trigger or a Marvel isekai adaptation could leverage Disney's brand equity while tapping into anime's storytelling strengths.

To unlock this value, Disney must adopt a more aggressive marketing strategy in non-Asian markets. This includes:
1. Localized Campaigns: Tailoring promotional efforts to regional preferences, such as dubbing key titles and leveraging social media influencers.
2. Bundling: Packaging anime with Disney's existing family-friendly content to broaden appeal.
3. Strategic Acquisitions: Partnering with or acquiring smaller anime studios to accelerate production and diversify its library.

Investment Implications

For investors, Disney's current approach to anime outside Asia is a mixed bag. While the company's Webtoon partnership and exclusive content library represent long-term value, its short-term underperformance in marketing and engagement could drag on streaming subscriber growth. A prudent strategy would involve hedging Disney's stock against competitors like Netflix and Amazon, which are better positioned to capitalize on the anime boom. Additionally, monitoring Disney's content spend on anime and its streaming segment's operating income will provide critical insights into whether the company is pivoting effectively.

In the end, Disney's ability to transform its anime strategy from a regional afterthought to a global growth driver will determine whether it can reclaim its position as a cultural and financial titan in the streaming era. For now, the market watches—and waits.