What Happened to Crunchyroll?
Crunchyroll is a global leader in anime streaming, evolving from a fan-uploaded video site in 2006 to a legitimate, subscription-based service. Acquired by Sony in 2021 and subsequently merging with Funimation, it now boasts over 21 million paid subscribers worldwide as of May 2026, despite facing recent challenges including a significant profit decline in its Japanese operations and legal issues.
Quick Answer
Crunchyroll is currently the world's leading anime streaming service, owned by Sony Group Corporation. After acquiring and integrating Funimation, it has consolidated a vast library of anime and manga, reaching over 21 million paid subscribers globally by May 2026. However, the company has recently faced scrutiny over subscription price hikes, a reported 63.4% decline in its Japanese net profit for fiscal year 2025, and legal challenges related to data privacy and security breaches in early 2026.
📊Key Facts
📅Complete Timeline15 events
Crunchyroll Launched as Fan-Uploaded Site
Crunchyroll was founded by UC Berkeley graduates Kun Gao, James Lin, Brandon Ooi, and Vu Nguyen, initially operating as a platform for user-uploaded East Asian content, including fan-subtitled anime.
Secures Venrock Investment and Commits to Legal Content
Crunchyroll received a $4.05 million investment from venture capital firm Venrock, leading to a commitment to remove copyright-infringing material and pursue legal distribution rights for its content.
Majority Stake Acquired by The Chernin Group
The Chernin Group acquired a majority stake in Crunchyroll, marking a significant ownership change for the growing streaming service.
Becomes Part of Otter Media (AT&T/Chernin Joint Venture)
AT&T and The Chernin Group formed Otter Media, a joint venture for over-the-top (OTT) video services, which became the majority owner of Crunchyroll.
Reaches One Million Paid Subscribers
Crunchyroll announced that it had surpassed one million paid subscribers, demonstrating its growing popularity and success in the anime streaming market.
AT&T Fully Acquires Otter Media; Funimation Partnership Ends
AT&T fully acquired Otter Media, making Crunchyroll a direct subsidiary. Shortly after, the content-sharing partnership between Crunchyroll and Funimation ended.
Sony Announces Acquisition of Crunchyroll from AT&T
Sony Pictures Entertainment announced its intention to acquire Crunchyroll from AT&T's WarnerMedia for $1.175 billion, aiming to consolidate its position in the global anime market.
Sony Completes Crunchyroll Acquisition
Sony Pictures Entertainment officially completed its acquisition of Crunchyroll from AT&T, integrating it into the Funimation Global Group.
Funimation Content Begins Merging into Crunchyroll
Following the acquisition, Funimation's content library began migrating to Crunchyroll, consolidating the vast majority of Sony's anime streaming under one platform.
Ends Ad-Supported Free Streaming Tier
Crunchyroll discontinued its ad-supported free streaming tier, shifting its focus entirely to paid subscriptions.
Implements Subscription Price Hikes
Crunchyroll announced and implemented price increases across its various subscription tiers, leading to some user dissatisfaction.
Faces VPPA Lawsuit and Reports Security Breach
Crunchyroll was sued for allegedly violating the Video Privacy Protection Act (VPPA) and also reported a security breach through an outsourcing partner, Telus Digital.
Reaches 21 Million Paid Subscribers Globally
Crunchyroll announced it had surpassed 21 million paid subscribers worldwide, up from 17 million in May 2025, solidifying its position as the premier destination for anime fans.
Japanese Net Profits Decline 63.4% for FY2025
Despite global subscriber growth, Crunchyroll's Japanese branch reported a net profit of ¥453 million for the fiscal year ending December 2025, a 63.4% decline from the previous year, as published in Japan's Official Gazette.
Announces Additional Summer 2026 Anime Lineup and Anime Expo Plans
Crunchyroll continues to announce new and returning titles for its Summer 2026 anime season, including 'ONE PIECE HEROINES' and 'Link Click Season 3', and details its participation in Anime Expo 2026 with premieres and panels.
🔍Deep Dive Analysis
Crunchyroll began its journey in May 2006 as a platform for user-uploaded East Asian content, including fan-subtitled anime. This early, unofficial model drew criticism from licensors but quickly gained a large following. A pivotal moment arrived in 2008 when Crunchyroll secured a $4.05 million investment from Venrock, prompting a commitment to remove infringing content and pursue legal distribution agreements. This shift marked its transition into a legitimate streaming service, beginning with a deal with TV Tokyo in 2009 to host 'Naruto Shippuden'.
Over the next decade, Crunchyroll experienced several ownership changes, first becoming majority-owned by Otter Media, a joint venture between AT&T and The Chernin Group, in 2014. This period saw significant growth, with the platform reaching one million paid subscribers by February 2017. A key strategic partnership with Funimation was established in 2016, allowing for content sharing and home video distribution, though this alliance ended in 2018 following Sony's acquisition of Funimation.
The most significant turning point came in December 2020 when Sony Pictures Entertainment announced its intent to acquire Crunchyroll from AT&T for $1.175 billion, a deal finalized in August 2021. This acquisition aimed to consolidate Sony's anime offerings, leading to the gradual merger of Funimation's content and subscriber base into Crunchyroll, effectively making Crunchyroll the dominant global anime streaming platform. By February 2024, Crunchyroll had grown to 13 million paid subscribers, and by May 2025, it reported over 17 million paid subscribers.
As of June 2026, Crunchyroll continues to be a central figure in the global anime industry. The platform announced in May 2026 that it had surpassed 21 million paid subscribers worldwide, reflecting strong global demand for anime. It actively curates new anime seasons, with its Spring and Summer 2026 lineups featuring numerous new and returning series, and participates in major events like Anime Expo 2026.
However, this period of growth has not been without its challenges. In late 2025, Crunchyroll ended its ad-supported free streaming tier and implemented subscription price hikes in February 2026, which drew criticism from its user base. Furthermore, in March 2026, Crunchyroll faced a lawsuit for allegedly violating the Video Privacy Protection Act (VPPA) by disclosing user information to a third-party marketing company without consent, and a security breach via an outsourcing partner was also reported. Despite the global subscriber increase, Crunchyroll's Japanese branch reported a significant 63.4% decline in net profit for the fiscal year ending December 2025, from ¥1.239 billion to ¥453 million, suggesting increased operational costs or investment despite growing revenue. Sony, however, continues to position anime and Crunchyroll as a core growth driver for its future entertainment vision.
What If...?
Explore alternate histories. What if Crunchyroll made different choices?