Webtoon Expands Anime Bet With Short-Form Shows Starting in 2027

Webtoon Entertainment Inc. plans to begin rolling out short-form animation early next year, adding a new format that would accelerate a push to turn its vast library of digital comics into global franchises.

The Los Angeles-based company has been developing technology to produce shorter animated content in addition to its key animation production pipeline, executives said in an interview. The first projects are expected in early 2027 and will initially be released exclusively on Webtoon’s platform. The company may also license the short-form animation to other streaming services depending on the project.

“When we see a Webtoon series with strong potential for animation, we want to adapt it faster, while the original is still popular and being serialized,” President Yongsoo Kim said. “That can drive the fandom into animation, then into games and merchandise, and ultimately bring people back to Webtoon. And we’re trying to shorten the cycle.”

Animation has been one of Webtoon’s new initiatives as the genre expands. But premium productions for Japanese anime remain expensive and time-consuming, with limited studio capacity due to soaring global demand for anime productions. Short animated episodes, potentially around seven to eight minutes long, could allow Webtoon to adapt more titles without competing for the same production pipelines, the company said.

Read more: Anime Is Grabbing More of Young Fans’ Entertainment Time

“The animation market has extremely strong gatekeepers,” founder and Chief Executive Officer Junkoo Kim said. Japan’s traditional anime industry relies on a limited pool of established studios and production pipelines, meaning only a fraction of potential content can secure the financing and production capacity needed for an adaptation. Webtoon is seeking to bypass that system with technology that can produce shorter animation more quickly and cheaply, allowing it to bring more titles to the screen.

The company recently announced a partnership with HAYATE — the anime studio created by Sony Group Corp.’s Aniplex and Crunchyroll — and Webtoon’s Japan-based Line Digital Frontier, to develop potential anime adaptations of about 15 Webtoon titles. The slate includes The Boxer and The Remarried Empress.

Webtoon also has Lore Olympus, one of its biggest hits with more than 1.8 billion global views, in production with Amazon.com Inc.’s Prime Video and the Jim Henson Company, and a 10-project development slate with Warner Bros. Pictures Animation.

The expansion comes as Webtoon confronts a slowdown in Japan and struggles to monetize its large US audience. Revenue in Japan, its biggest market, fell 15.4% in the second quarter and paying users dropped 9.5%. Overall, Webtoon posted a $14.6 million net loss, primarily due to marketing costs, widening from $3.9 million a year earlier.

Webtoon is also looking to its partnership with Walt Disney Co. for growth. On Nov. 16, it will launch and operate a Marvel Comics subscription app with more than 35,000 titles, using Webtoon’s personalization and discovery technology. Disney also acquired about a 2% stake in Webtoon last year.

Read more: With a Disney Lifeline, Can Webtoon Finally Win Over America?

Webtoon is betting those partnerships, animation and artificial intelligence can create more ways to monetize its intellectual property. Its new AI-powered digital-character service lets fans converse with characters on its platform, potentially extending the life of successful franchises.

“Our content starts with stories and ends with characters,” founder Kim said.