LINE Manga Rises to No. 1 in Japanese Webtoon Market Share
Expanding the Webtoon Ecosystem Through Content Marketing and IP Business
Accelerating Entry into the Global Market
Kim Shin-bae, CEO of Line Digital Frontier, is introducing Line Manga at a press conference held on the 12th at the headquarters in Shinagawa-ku, Tokyo, Japan. Provided by Naver Webtoon
"Our goal is to 'create the future of Manga (the Japanese term for comics).' We are expanding the ecosystem in Japan, a powerhouse of manga," said Kim Shin-bae, Chief Growth Officer (CGO) of LINE Digital Frontier (LDF), at a press conference held on the morning of the 12th at the company's headquarters in Shinagawa, Tokyo. This means discovering great works in Japan and growing together while opening a gateway to the global webtoon market. LINE Digital Frontier operates 'LINE Manga,' Naver Webtoon’s Japanese language service.
LINE Manga announced its intention to strengthen its dominance in the Japanese webtoon market and build a 'webtoon ecosystem' that encompasses intellectual property (IP) business. The Japanese webtoon market is considered one of the most competitive. As the traditional market of printed manga, like tankobon volumes, transitions to digital, the webtoon market is showing remarkable growth.
LINE Manga rose to number one in the Japanese webtoon market last year. Kim CGO explained, "In May last year, LINE Manga surpassed competitors to become number one," adding, "In terms of market share, it increased from 31% in January last year to over 50% in January this year, just one year later."
LINE Manga’s growth is also evident in the increase of paid content revenue. In the third quarter of last year, LINE Manga’s paid content revenue reached $159.9 million (approximately 230 billion KRW), a 19.3% increase compared to the same period the previous year. Overall revenue for LINE Manga also achieved a high growth rate of 25%.
One of the main drivers behind LINE Manga’s growth is the introduction of diverse webtoon works. Korean webtoons are brought into Japan while Japanese webtoons are discovered and serviced on LINE Manga. To this end, they have invested in a local webtoon studio called 'Studio Number Nine.' Kim CGO said, "We are expanding the creative ecosystem by discovering both amateur and professional creators," adding, "We will create works in Japan together with local studios that collaborate with us."
Content marketing that recommends webtoons tailored to users’ tastes based on the webtoons they have read has also contributed to revenue growth. Users brought in through this method are new users, who then continue to receive recommendations for works matching their preferences through an artificial intelligence (AI) recommendation system, becoming daily users of the service. Kim CGO stated, "Just like Naver Webtoon in Korea, we will create and strengthen the most diverse genres and fandoms within Japan."
They are also expanding the IP business. This involves extending beyond webtoons into video formats such as dramas, movies, and animations. Producing a single work into various content types increases touchpoints with readers and is advantageous for expanding offline businesses like merchandise (MD) sales. LINE Manga produced and released 12 video adaptations last year, and this year aims to launch 20 animation projects.
Webtoon 'Ibhakyongbyeong' Korean version cover (left) and Japanese version cover available on Line Manga. Provided by Naver Webtoon
Based on growth in the Japanese market, they aim to accelerate entry into the global webtoon market. Kim CGO said, "I am confident that the Japanese business will continue to grow," adding, "Through the global ecosystem built by Webtoon Entertainment (the operator of Naver Webtoon), global works will enter Japan, and Japanese works will go global, solidifying our ecosystem."
He emphasized, "Being number one in revenue as a service platform is just the beginning," and added, "Our goal is to build an ecosystem that competitors cannot follow by developing Japanese manga."
Regarding LINE Manga’s strengths compared to competing platforms, Kim CGO explained, "Various works, not limited to specific genres, are ranking and reaching readers, which I believe will be the foundation for future growth," and said, "We are the only ones who can build a self-sufficient value chain for webtoon production."
On competing platforms accelerating their entry into the Japanese market, he said, "Local Japanese platforms see limits in the domestic market and are speeding up global expansion," adding, "Rather than competing with new entrants, I believe we are coexisting and developing the manga market together."
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