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Yet, the glittering export success masks a domestic industry facing profound structural challenges. A key paradox is the gap between global acclaim and local production realities. The anime industry, for example, is notorious for brutal working conditions, with young animators often earning below minimum wage—a stark contrast to the fortunes generated by the intellectual property they help create. This labor exploitation is fueled by a rigid, vertically integrated system dominated by “production committees” (kyōgikai), which prioritize risk-averse, formulaic adaptations (e.g., endless isekai “another world” fantasies) over original, innovative work. Similarly, the Japanese film and music industries have been slow to adapt to the streaming era. Domestic conglomerates have historically prioritized physical media (DVDs, CDs) and complex licensing structures, leading to “Japan lag” where content is released months or years behind the West, inadvertently fueling piracy.