Chinese video sharing platform bilibili and Texas-based anime distributor Funimation have announced the first strategic business alliance between anime content providers in China and the United States.

In a joint press conference at AnimeJapan 2019, bilibili chief operating officer Li Ni and Funimation chief executive officer Gen Fukunaga outlined a plan for both companies to mutually provide their own licensed titles to the other service. There is little existing competition between bilibili, whose business is centered on China and Asia, and Funimation, which is focused on the United States and English-speaking territories.

Fukunaga and Li also indicated both companies will also distribute a wider range of content, not limited to anime. The alliance aims to strengthen the content planning and development capabilities of both companies, in addition to enhancing the line-ups of their content. Sharing resources will give bilibili and Funimation the ability to keep content licensing costs down, but it could also create a scenario in which Japanese animation companies are left out of production deals in the future.

On bilibili's new partner, Li said, "Funimation has many years of experience in Japanese animation and film distribution, and has promoted many excellent works to the global market. The two sides have a very high degree of business fit. We look forward to maximizing our mutual advantages through this cooperation and further promoting the globalization of the animation industry."

Fukunaga also shared his confidence in the impact of the agreement. "We are very pleased to have reached a cooperation with bilibili and jointly seek new development opportunities in the field of animation. This cooperation will help to promote and meet the needs of animation content in the global field. Not only will a wealth of new works be pushed to more markets, but high-quality content will reach fans around the world."

bilibili is the largest video platform focused on animation, comics, and games (ACG) content in China. The company was valued at US$3.2 billion when it filed for initial public offering on the Nasdaq stock exchange in March 2018. In the fiscal year ending December 2018, bilibili reported a total net revenue of US$600.5 million, increasing 67 percent over the previous year. Last September, the company acquired a stake in three anime studios, feel., Zexcs, and Assez Finaud Fabric.

In 2017, Funimation was acquired by Sony Pictures Television in a deal worth US$143 million. Since then, the company has ended a two-year content sharing agreement with rival anime distributor Crunchyroll, signing a distribution deal instead with video streaming platform Hulu.

Source: Animation Business Journal, TechNode