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Crunchyroll, the leading anime streaming platform owned by Sony, has come under scrutiny for its handling of major titles, including One Piece and Dandadan.
A recent report by Bloomberg, which includes comments from current and former employees reveal a series of alleged missteps by Crunchyroll’s senior vice president Markus Gerdemann, leading to dissatisfaction among prominent Japanese licensors and publishers.
Gerdemann, who joined Crunchyroll after a stint in Netflix marketing, has faced internal complaints about his management style.
Two employees filed complaints with human resources, one alleging sexist behavior and another accusing him of creating a hostile work environment.
While Sony investigated the allegations and cleared Gerdemann of sexism, seven current and former employees reported that his leadership has negatively impacted employee morale and the company’s marketing strategy.
Mishandling One Piece & Dandadan
In July, Crunchyroll organized a concert event on the San Diego Bay during Comic-Con to celebrate One Piece.
While the event featured the franchise’s iconic ship, the Going Merry, attendees complained that it wasn’t properly lit, making it difficult to see.
The event, overseen by Markus Gerdemann, Crunchyroll’s senior vice president of marketing, was reportedly poorly received by representatives from Toei Animation.
Crunchyroll faced further backlash for its lack of promotion for Dandadan, an important title from Toho, which also streams on Netflix.
In October, an email from Gerdemann, seen by Bloomberg, instructed staff not to “lean into” promoting the series due to ongoing acquisition discussions.
The decision surprised many, as Dandadan debuted as the second-most-viewed non-English show on Netflix, making its lack of attention from Crunchyroll notable.
Strained Relationships with Manga Publishers
Crunchyroll’s management of merchandise rights has also become a sticking point with major Japanese publishers, including Shogakukan, Shueisha, and Kodansha.
According to employees in both the U.S. and Japan, Crunchyroll often produces and sells merchandise, such as figures and posters, without securing proper approvals. This practice has reportedly angered prominent manga creators, who feel their characters are being misused.
Adding to the controversy, some publishers and creators have expressed doubts about the reliability of Crunchyroll’s revenue-sharing reports, further straining the company’s relationships with its Japanese partners.
Broader Industry Implications
These issues come at a critical time for Sony, which recently increased its stake in Kadokawa Corp., a major anime creator, to 10%.
The move is part of Sony’s broader strategy to secure more content and strengthen its position in global anime distribution.
However, Crunchyroll’s strained relationships with Japanese studios could push some to seek alternative partners, potentially weakening Sony’s long-term goals.
Competition from Netflix and Disney
Toho and Toei Animation, two of Japan’s biggest anime producers, have shown a growing interest in working with competitors that can reach broader audiences.
Toho has licensed Beastars to Netflix and acquired animation distributor GKIDS to distribute films independently in the U.S.
Toei, meanwhile, announced a partnership with Netflix to produce and distribute a new anime series based on One Piece, building on the success of their live-action collaboration.
But that’s not all. The shift signifies a changing trend in the anime streaming industry.
Since Sony’s acquisition of Crunchyroll, the platform has struggled to maintain exclusivity over key titles.
Netflix licensed Jojo’s Bizarre Adventure, one of Crunchyroll’s most popular series, shortly after the acquisition. The next season of the series was exclusively available on Netflix, signaling a shift in the streaming landscape.
Disney and Netflix have since continued to outbid Crunchyroll for major anime titles.
Disney secured the exclusive rights to Tokyo Revengers: Tenjiku Arc and other high-profile series, while Netflix licensed Delicious in Dungeon and Little Witch Academia.
On top of that, a survey by Polygon earlier this year revealed 76% of Gen Z anime fans watch shows on Netflix, compared to 58% on Crunchyroll.
In response, Crunchyroll argued that sharing shows with mainstream platforms helps broaden consumer interest in anime, potentially increasing its subscriber base.
The increasing competition has driven licensing fees for popular Japanese programs “through the roof,” according to anime industry workers in Japan. And this rising fees could impact Crunchyroll’s profitability.
In addition to the issues mentioned in the report, Crunchyroll has managed to anger its fanbase – first by taking away user generated content, including comments from the platform, and then by announcing that One Piece anime will soon be moving behind a paywall.
They also gained infamy for the fiasco with voice actor David Wald, who publicly called out the streaming giant for opening his fan mail and distributing it among the staff.
The latest report suggests that with continued mismanagement, Crunchyroll could be putting its position as the leading anime streaming platform at risk.
They are intentionally “not leaning in to other great shows like “Chillin in another world with level 2 super cheat powers!” A great show that will never appear on a suggestion list and is left out of all categories even though it ranks 4.8 by viewers and is a fantastic cute and fun show! I hope Netflix Or Disney picks it up and keeps it alive. Great dubbing and manga too!