LINE Manga, the Japanese-language service of Naver WEBTOON, has ascended to the pinnacle of Japan’s app market, securing the No. 1 position in total app revenue for the first quarter of 2025. This significant achievement follows its lead in Japan’s non-gaming app revenue during the second half of 2024, a dominance it has successfully maintained into the current year. The platform’s success marks a pivotal shift in market dynamics, reversing a four-year trend where Kakao Piccoma previously held the highest consumer spending for apps in Japan as recently as 2024.
Strategic Factors Driving LINE Manga’s Ascent
LINE Manga’s commanding performance in the first half of 2025 can be attributed to a multifaceted strategy that encompasses content diversification, robust creator support, and a keen focus on intellectual property (IP) expansion.
Content Ecosystem and Curation
A cornerstone of LINE Manga’s success lies in its expansive and strategically curated content library. The platform has effectively leveraged the surging global popularity of Korean webtoons, while simultaneously investing heavily in nurturing local Japanese creators. This dual approach ensures a rich and diverse offering that appeals to a broad user base. The platform’s paid content sales alone saw a substantial increase, reaching US$594.3 million in 2024, a 12.7% year-over-year growth.
IP Expansion and Animation Initiatives
A critical strategic move for LINE Digital Frontier, the operator of LINE Manga, is the aggressive expansion of its webtoon-based intellectual property (IP) business. CEO Shin-bae Kim announced plans to produce 20 animated adaptations of webtoons in 2025, a significant leap from 12 adaptations in 2024 and only one in 2022. This initiative aims to transform webtoon content into multi-platform IPs, including dramas, films, and animation, leveraging Japan’s global influence in anime for long-term revenue growth. LINE Digital Frontier has also strategically invested in Japanese webtoon production studios, such as Number Nine, to bolster its IP development capabilities.
Seamless Integration and User Experience
LINE Manga’s deep integration within the broader LINE messaging “super app” ecosystem also plays a vital role in its user engagement and monetization. Users can easily recommend and share manga titles, collect exclusive stickers tied to purchased content, and utilize LINE’s digital currency for transactions. A comprehensive service overhaul in 2021 further enhanced the app’s user experience (UX/UI) and expanded its Korean webtoon lineup, making it more accessible and user-friendly. Furthermore, the application of artificial intelligence (AI) technology for content recommendations guides readers to broaden their viewing range, contributing to sustained engagement.
The Evolving Japanese Digital Manga Market
LINE Manga’s current dominance is set against the backdrop of a dynamically evolving Japanese manga market. The industry is undergoing a significant transformation, with digital manga sales now accounting for a substantial 73% of total sales in 2024, a notable increase from 2019. This shift underscores the increasing consumer preference for digital accessibility and convenience.
Despite the strong digital presence, growth in digital manga sales has experienced a slowdown, registering single-digit increases for three consecutive years. Concurrently, print manga sales continue to decline, with an 8.6% year-over-year decrease in 2024. This trend highlights the urgency for manga publishers to seek new revenue streams, including international markets and robust IP development.
The overall Japanese manga market was valued at ¥704.3 billion (approximately $4.7 billion) in 2024 and is projected to reach USD 18,368.8 million by 2030, with a compound annual growth rate (CAGR) of 16% from 2025 to 2030. Digital content is not only the largest revenue-generating segment but also the fastest-growing. This robust market outlook provides a fertile ground for platforms like LINE Manga to continue their expansion and innovation.
Implications for the Digital Content Industry
LINE Manga’s ascent to the top of Japan’s app revenue rankings in the first half of 2025 signals several key implications for the digital content industry:
Validation of Webtoon Model
The success of LINE Manga, heavily influenced by its integration of Korean webtoons, validates the webtoon format’s appeal and monetization potential in traditionally manga-centric markets. This hybrid content strategy, combining established Japanese manga with vertical-scrolling webtoons, has proven highly effective in attracting and retaining users.
Importance of IP Diversification
The platform’s aggressive push into animated adaptations and other IP ventures demonstrates the critical need for digital content providers to diversify their revenue streams beyond direct content sales. Transforming popular webtoons into multimedia franchises creates new avenues for growth and strengthens brand loyalty.
Hyper-Personalization and Ecosystem Integration
LINE Manga’s utilization of AI for recommendations and its seamless integration within the LINE “super app” highlight the increasing importance of hyper-personalization and ecosystem play. By offering a cohesive and convenient user experience across various services, platforms can significantly enhance user engagement and spending.
LINE Manga’s leading position in Japan’s app revenue for the first half of 2025 is a testament to its adaptive strategies in content, technology, and business development, solidifying its role as a frontrunner in the global digital comics landscape.
