Crunchyroll Sees Unprecedented Growth in Q1 2010 (Updated)

Update: Crunchyroll has corrected the number of video views in its press release.

San Francisco, Calif. (May 3, 2010) – Crunchyroll, Inc., reported today an over 40% compounded quarter on quarter revenue growth for the last five quarters. Q1 2010 revenue experienced over 250% growth, against the same quarter last year. Crunchyroll's revenue is driven by the ‘freemium’ business model made up of advertising-supported and subscription streaming as well as virtual goods, monetizing professionally produced content through direct relationships with Japanese licensors and broadcasters.

“With over 5.5 million unique visitors serving 21.8 million video views and over 100 million pageviews in the month of March, Crunchyroll is the most engaged community for anime in the world. We are able to deliver a complete cross-platform experience through our website, branded social applications—including the Naruto Shippūden Official Facebook Application—set-top box products like Boxee and the Crunchyroll iPhone iPad application. Crunchyroll is at the forefront of building online audience and engagement around professional content with our in-house video, social, mobile and device experiences,” said James Lin, VP of Product.

According to comScore data, during the six month period leading into March 2010 (since Sept 2009), Crunchyroll realized 25% growth in unique US visitors, while Funimation saw 7% growth in US visitors during the same period. According to Quantcast analytics, over the last 30 days, Crunchyroll reached 1,336,000 unique US visitors, while Funimation recorded 157,400 US visitors. Both destinations are measured directly by Quantcast.

“Creating an Internet presence is about cultivating a two-way relationship with the user; the old model of neglecting content on one-way video site has become less and less effective.” said Vince Shortino, Representative Director of Crunchyroll's Japan office. “Through our expertise in building online engagement, we look forward to working with more traditional media companies that want to reach their core audiences, grow revenue, and maximize shareholder value.”

“Over one year ago, we pioneered the ‘freemium’ content business model, which balances advertising with subscription revenue. Today, anime is becoming mainstream and Crunchyroll brings more episodes of anime to US audiences than any other company,” said Kun Gao, CEO of Crunchyroll. “Licensors are leveraging our platform to not only market and promote their brands, but to create an online business. We've figured out how to build audiences and monetize professional content online and welcome the opportunity to work with any content partners, to help grow their internet businesses, in this period of great industry transition.”

About Crunchyroll, Inc.
Crunchyroll is a leading global lifestyle and entertainment brand centered around all things Asian media and operator of the largest online community, video site and network of sites, services and devices for Japanese anime and Asian drama in the world. Content on Crunchyroll is provided by leading Asian media companies including TV TOKYO, Fuji Television, NHK Enterprises (NEP), Yomiuri Telecasting Corporation (YTV), Seoul Broadcasting System (SBS), Munhwa Broadcasting Corporation (MBC), Shueisha, Kadokawa Pictures, Aniplex, avex entertainment, King Records, Happinet, d-rights, Bandai Channel, Toei Animation, Tai Seng and many others.

Crunchyroll was founded in June 2006 and has offices in both San Francisco and Tokyo. Crunchyroll is a pioneer and innovator in the Japanese content business and the only video service in the world to offer hit programs Naruto Shippūden, Tegami Bachi: Letter Bee and many others within one hour of their first Japanese broadcasts. Crunchyroll is a member of the Association of Japanese Animations (AJA) and Licensing International Merchandisers' Association (LIMA) and is funded by leading venture capital firm, Venrock, Japanese entertainment giant TV TOKYO, and a group of angel investors representing some of the brightest and most successful minds and entrepreneurs in Silicon Valley. More information can be found at http://www.crunchyroll.com.

The statements made in this press release that are not historical facts are "forward-looking statements." These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties. The Company cautions readers of this press release that a number of important factors could cause Crunchyroll.com's actual future results to differ materially from those expressed in any such forward-looking statements. Such factors include, without limitation, product delays, industry competition, rapid changes in technology and industry standards, protection of proprietary rights, maintenance of relationships with key personnel, vendors and third-party developers, international economic and political conditions. The Company may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in the Company's assumptions or otherwise. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.