I’ve written several erotica stories starring futanari characters, genuine futanari too, fitting the hentai definition.
They are also exclusively Japanese, at least so far.
One of the things this OVA does right is its use of stereotypes.
Mizuho, our shut in shy girl, is embarrassed of her one eyed worm, and is horrified when Riko begins to jack her off not four minutes into the show.
She fits perfectly into the role of scared virgin, uncomfortable to even acknowledge her genitals.
This throws off our usual anime girl stereotype, ’cause bitch got a penis.
Riko and Mizuho's antics aren't over yet......!! Futanari (as well as other alternative sexual fetishes) are being ignored on a grand scale in Japan.
The word futanari in Japanese (ふたなり) means ‘dual form’ or ‘two kinds’ and Wikipedia has a decent if short description of the historical origins of the term.
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Put simply, in modern Japanese hentai a futanari is a type of fictional female character with the body of a woman and the genitals of both a woman and a man.
Its older, historical usage still exists outside of hentai, and there it is similar to Western myths such as the legend of Hermaphroditus, but that’s beyond the scope of this discussion because I am talking about how the word futanari is perceived and used in the West–and in the West, the word ‘futanari’ comes to us directly from hentai.