In 2001, writer Douglas McGray dubbed Japan "a cultural superpower," coining the phrase "gross national cool" to describe the incredible influence Japanese entertainment then enjoyed throughout the world. Less than ten years later, this hip facade seems to be cracking. Precious few Japanese anime shows air on American television. Anonymous complaints from anime industry insiders incensed at atrocious pay and working conditions continue to mount. And even the Japanese Fair Trade Commission has gotten into the mix, releasing a scathing report of the problems facing animation companies. Can the anime industry save itself? Read on for a rundown of the current state of affairs in the Japanese anime industry as of 2009.

--According to a 2005 report by JETRO, the Japan External Trade Organization, the anime industry represents a 207 billion yen (roughly two billion USD) a year domestic market. Yet two-thirds of people in the anime industry make less than 3,000,000 yen (roughly $30,000) per year. One-fourth make less than 1,000,000 yen ($10,000) per year. A quarter of the industry toils significantly below the poverty line.

--Some one hundred animation shows are produced every year in Japan. That is three times the number of two decades ago. A majority are niche productions that promise a reliable if small return, but are not suitable for mainstream consumption. The industry is spread increasingly thin.



--A 2003 report by METI revealed that eighty percent of the money paid by sponsors to animate a television series goes not to the studios but is paid to the television stations for airtime.(English translation of the most relevant chart here .) Studios receive only a fraction of the money in the pipeline. So while there is more animation being created now than ever, many animation studios lose money o n every episode they animate.

--The often dreary gruntwork of "in-betweening," creating the cels between the key frames, is almost entirely outsourced to cheaper labor forces abroad, such as China, South Korea and the Philippines. An entire generation of Japanese animators are coming of age with far less hands-on experience in this critical phase of the process than their predecessors.

he lack of written contracts allows the clients to make unreasonable demands of the subcontractors (such as free revisions, extra work, or even reduced compenastion). It is all but impossible for the subcontractors doing the actual work to turn a profit, let alone pay their employees a decent wage.

--On January 23, 2009, the Japan Fair Trade Commission released a report on the animation industry. In it, we learn that that two-thirds of all animation is created not by the actual production company but through often shady wink-and-a-handshake deals with tiny subcontractors. T



So what concrete measures are being taken to fix the situation? The short answer is, not much at present:





--In a 2006 speech as Minister of Foreign Affairs, current Prime Minister Taro Aso challenged Japan to promote its pop culture abroad. Yet the same year, the government failed to respond to an anime industry restructuring plan proposed by the All-Toei Union and the Federation of Cinema and Theatrical Workers Union.



--The Japanese government continues to position anime and other pop-cultural content creation industries as the vanguard of a new wave of "soft" (content-related) rather than manufacturing-based power. As of 2007, it kicked off an official effort to promote anime and manga to enhance cultural exchanges with other countries.



--The Tokyo Metropolitan Government has released a series of textbooks designed to help budding animators get a foothold in the industry. However, their high price (over 10,000 yen) and target (essentially, kids anxious to get into the industry) have led some to write the effort off as a scheme to profit from desperate otaku.



--A consortium of industry insiders established the JAniCA , or Japan Animation Creators Association, in an attempt to formally lobby the government to help improve conditions in the industry. METI is providing JAnicA with funding for internships in an effort to groom future "core talent" for the animation industry.

--In March of 2009, the government announced the foundation of " Japanese Brand Support Centers " in its embassies around the world, designed to support both corporate and individual entertainment content creators in obtaining profits from foreign licensing. It sounds good on paper, but only really addresses the distribution side of the equation and not the production side.

So there you have it in a nutshell. Time for government intervention? A bailout? A long dark soul-search in the anime industry? All of the above? You make the call. But all I can think when I see this is: if anime and other pop-culture content truly represent the salvation of the Japanese economic miracle, shouldn't the people who create it be entitled to make a living wage?