Streaming video companies: perhaps you’re offering too much.
Just look at Crunchyroll, a subset of Ellation that provides nothing but East Asian media to a global audience—and has 750,000 paid subscribers for its trouble. More than 20 million registered users watch Japanese cartoons, like Naruto Shippuden and Attack on Titan, and Asian dramas, like Boys Before Flowers, in seven languages from English to Arabic. Together, those users watch 1.5 billion minutes of streaming video every month.
Tom Pickett, CEO of Ellation, credits this vertical approach to Crunchyroll’s success. Rather than attempt to provide everything to everyone, Crunchyroll dives deep into just one category: Asian TV and animated cartoons, and from there has expanded its following by providing niche extras like news, forums, e-commerce, live events, and manga, all on the same website.
“General audience services like Netflix and Hulu forever changed the way we consume media and have helped educate users that there are new services worth paying for,” said Pickett. “But we have found there are other ways to create value for passionate fans by going deep in a particular genre and building community. Nobody knows this space like we do, and so, we’re able to provide our fans with a premium viewing and community-driven experience.”
The Crunchyroll experience also extends beyond the site itself. Crunchyroll staff attend dozens of anime fan conventions every year and offer perks. At Anime Boston 2015, for example, Crunchyroll provided a “green room” exclusive lounge for subscribers while also holding contests, events and panels for all attendees. These events, like Crunchyroll, target one of advertising’s most coveted demographics: teens. 75% of Crunchyroll subscribers are under the age of 35, with the median free viewer aged at 18, according to the company.
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