Dandadan Promotion Allegedly Hampered by Crunchyroll’s Licensing Conflict

Recent revelations have exposed significant missteps in Crunchyroll‘s approach to anime licensing, especially regarding the treatment of Dandadan. This series has quickly risen to prominence, expected to be one of the standout anime of 2024. For those unfamiliar, Dandadan tells the story of Momo Ayase, the granddaughter of a spirit medium who does not believe in aliens, and Okarun, who dismisses the existence of ghosts. Their lives take a dramatic twist when they encounter supernatural events, forcing them to partner up—Okarun becomes the host of a vengeful spirit’s power while Ayase acquires psychic abilities—leading to a tale brimming with humor and romance.

What may initially appear to be a straightforward premise is backed by an intricate narrative that has charmed anime enthusiasts worldwide. However, Dandadan serves not only as a beloved series but also as a critical battleground amid an ongoing licensing conflict between streaming services. The depth of mismanagement and strategic errors by Crunchyroll is only starting to come to light, as highlighted in a recent Bloomberg report. Below, we delve into the shocking particulars that suggest a turbulent future for the streaming giant.

Dandadan‘s Unique Status in the Anime Landscape

Unusual Licensing Strategies Turn a Favorite into a Battleground

In the current anime landscape, it’s typical for a single streaming partner to dominate a series’ production and marketing efforts. However, Dandadan breaks this mold. While the show is available for streaming on Crunchyroll, Netflix, and Hulu, its physical distribution in North America is handled by GKIDS, with Muse Communication managing it in Southeast Asia.

Produced by Science Saru—now a subsidiary of Toho International, renowned for its role in creating the Godzilla franchise—Dandadan is starting to gain momentum after prior successes like Ping Pong: The Animation and Space Dandy. Toho’s recent acquisition of GKIDS highlights their intent to effectively market their content across various platforms.

However, Crunchyroll’s marketing approach lacks the same vigor. Despite significant promotions by Netflix propelling Dandadan to become the second most-watched non-English release, Crunchyroll’s reluctance to similarly promote the series raises eyebrows. Their internal decision-making may hint at troubling dynamics affecting the streaming giant.

Crunchyroll’s Declining Position in the Licensing Warfare

Leadership Challenges Emerge from Inexperienced Management

The competitive landscape of anime streaming has become increasingly intense, and Crunchyroll has faced difficulties since its $1.2 billion acquisition by Sony in 2021. Though positioned as a premier destination for anime content, it still grapples with various challenges.

The merger with Funimation introduced complications, notably with the leadership of Markus Gerdemann, who was appointed as senior vice president of creative marketing despite lacking deep experience in the anime sector. Bloomberg’s findings reveal some startling information about Gerdemann’s impact:

18 current and former Crunchyroll employees shared insights with Bloomberg.
7 of them expressed concerns regarding Gerdemann’s skills in executing effective strategies and claimed he caused financial losses.
7 reported a decline in employee morale attributed to Gerdemann’s leadership.
2 employees filed formal complaints against him for sexism and fostering a hostile work atmosphere.

While Sony’s investigation cleared Gerdemann, employee discontent remains a critical issue. There are allegations that Gerdemann introduced a network of former agency colleagues, summarily labeled as a “boys’ club,”which may further complicate relations within the company.

As Crunchyroll navigates potential acquisition discussions, Gerdemann communicated to staff that the company “decided not to lean into the promotion of Dandadan.” This decision potentially reflects a larger rift between Toho and Crunchyroll, exacerbated by issues around exclusive licensing and merchandising rivalries.

With Crunchyroll historically managing its own merchandise store, it faces competition from Toho’s recently launched iiZO store. Further exacerbating tensions, Toho has also taken the distribution rights for the latest addition to the My Hero Academia film series, previously controlled by Crunchyroll.

These promotional failures exemplify Crunchyroll’s strategic miscalculations in an industry becoming more competitive, suggesting major disarray under Gerdemann’s guidance. Employee grievances underscore a potential downturn for Crunchyroll, whose post-acquisition strategies have drawn criticism from within.

The Dandadan Debacle Exemplifies Crunchyroll’s Strategic Flaws

A Series of Controversial Decisions Drive Current Dilemmas

Remake of Momo and Okarun's first meeting

Crunchyroll’s troubles extend beyond mere promotion issues. The company has generated discontent among various partners while also experiencing a significant shift in workplace culture characterized by management’s questionable decisions. Amid three rounds of layoffs, Crunchyroll now has obscure hiring and growth targets; they have shifted their market growth goals for the anime sector to late 2025 while acknowledging that 8.5% of subscribers are leaving, compared to their 5% goal.

In a troubling turn, Crunchyroll is losing subscribers as it struggles to cater to an expanding demographic of casual fans. As highlighted in Bloomberg’s reporting, “current and former employees express concerns that mainstream competitors are encroaching on Crunchyroll’s audience turf,” a trend epitomized by Netflix’s acquisition of JoJo’s Bizarre Adventure, once a staple for Crunchyroll.

With competitive streaming platforms gaining traction—evidenced by a Polygon survey indicating that 76% of Gen Z anime fans watch on Netflix versus 58% on Crunchyroll—Crunchyroll’s lack of strategic foresight regarding Dandadan speaks to underlying structural issues. Furthermore, one employee’s departure gained attention recently when voice actor David Wald exited after discovering that fan mail meant for him had been mishandled by Crunchyroll for five years, stirring further discontent among its ranks.

While it’s tempting to attribute Crunchyroll’s predicament to encroaching competition, the company’s internal challenges, strategic errors, and poor relations with industry leaders paint a more alarming picture—casting doubt on Crunchyroll’s sustainability at its current pace and modus operandi. As evidenced by the handling of Dandadan, the streaming service faces pivotal decisions to reclaim its status in the rapidly evolving anime marketplace.

Source: Bloomberg

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