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How do anime companies make money if everyone just watches anime online for free?

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Sep 4, 2014 1:06 PM
#1

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Jul 2013
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I only bought anime a handful of times in my entire life. I bought a few anime DVDs and I bought a CrunchyRoll subscription for about 3 months. But other than that I never have to buy any anime because you can simply stream all of your anime online for free. Or you could torrent it, but I prefer streaming it online because streaming it is more convenient. So how the heck do the producers of anime make any money if everyone just streams/torrents all of their anime online for free? I'm surprised anyone still makes anime anymore considering that all of the anime you could ever watch can be streamed or torrented online for free.

Does anyone have an answer on how anime companies make money?? I sure as hell ain't spending money on an anime DVD set that I can just stream online for free. I don't even torrent anime because you can just stream everything online for free. So where does the revenue and profits of anime companies come from if everyone just streams and downloads anime online for free? I think the only place where they can get their revenue/profits from is from the sales of merchandise like anime toys and DVDs, but then again who buys anime DVDs when you can stream/torrent it online for free? I just stream all of my anime. And I don't buy anime toys, because I don't have the money for that. I already spend enough money on university textbooks/tuition and shit that I have little spare money for anything else.
Here is my Pixiv account of my hentai drawings.....

https://www.pixiv.net/en/users/104739065

Here is my blog....

https://theendofindustrialcivilization.blogspot.com/?m=1
Sep 4, 2014 1:11 PM
#2

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Nov 2013
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Merchandise accounts for a majority of revenue these days. Part of the reason why Slice of Life has become bigger than ever in the past few years is due to the fact that it's very easy to produce, and often performs extremely well in merchandise sales.
Sep 4, 2014 1:17 PM
#3

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Aug 2013
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It's reasonable to assume that the anime industry wouldn't exist if nobody paid for their shit. Now tell me, Desumaiden, if they still do exist, what would that mean? There's a lot of money in the anime industry, and there are plenty enough people who are willing to buy their stuff. Not just DVDs, but merchandise, figurines, all kinds of moneysinks. One could also argue that anime being free introduces a whole lot more people to it, which in turn might introduce more people to it, and people in general buy shit. Pirating and watching things illegally isn't inherently bad.
Sep 4, 2014 1:36 PM
#4
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Jan 2014
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the question is: how is streaming more convenient?
Sep 4, 2014 1:38 PM
#5

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Apr 2012
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cabacc2 said:
the question is: how is streaming more convenient?


how is it not

Sep 4, 2014 2:00 PM
#6

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Dec 2012
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Thread cleaned.
Sep 4, 2014 2:02 PM
#7

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Feb 2014
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When we watch online for free it encourages to get up and support the creators by paying to watch their shows.

Then some of us buy merch.


"Everything you see on the internet isn't true." -Abraham Lincoln
Sep 4, 2014 2:03 PM
#8

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Feb 2014
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People watch the show for free and then spend their money on waifu pillows, obviously
Sep 4, 2014 2:06 PM
#9
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Feyfray said:
People watch the show for free and then spend their money on waifu pillows, obviously


I guess I don't support the company in any way I watch it for free and I spend my money on other things. XD
Sep 4, 2014 2:12 PM

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Mar 2014
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There's still some people gullible enough to that buy anime out there enough to keep the companies from sinking.
Sep 4, 2014 2:13 PM

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mclovinballz said:
There's still some people gullible enough to that buy anime out there enough to keep the companies from sinking.

Yeah but if it wasn't for those people, no new anime would be made.
Here is my Pixiv account of my hentai drawings.....

https://www.pixiv.net/en/users/104739065

Here is my blog....

https://theendofindustrialcivilization.blogspot.com/?m=1
Sep 4, 2014 2:18 PM

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Feb 2014
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DesuMaiden said:
mclovinballz said:
There's still some people gullible enough to that buy anime out there enough to keep the companies from sinking.

Yeah but if it wasn't for those people, no new anime would be made.


Thanks to them I can afford to drink myself to sleep
Sep 4, 2014 2:20 PM

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Jan 2014
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by selling goods
http://kagami77.imgur.com/
Latest event pictures: Lucky Star Hiiragi Sister's Birthday Event (7/7), Nisekoifes (6/22), Wake Up, Girls! FESTA. (4/27)
Sep 4, 2014 2:52 PM

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Jul 2012
8011
Anime themed hand bags and beanies I see a lot. People also watch the major ones on netflix I'm sure they make a bit off that, and any anime filmed on TV.
Sep 4, 2014 2:54 PM

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Jan 2013
12227
Because you don't know any japanese otaku.

HUUUUUURRR

Guys, nobody I know eats McDonalds. How do they make any money?
Sep 4, 2014 2:55 PM

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Jul 2014
52
DesuMaiden said:
mclovinballz said:
There's still some people gullible enough to that buy anime out there enough to keep the companies from sinking.

Yeah but if it wasn't for those people, no new anime would be made.


You just answered your own question.
Sep 4, 2014 2:56 PM

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mclovinballz said:
There's still some people gullible enough to that buy anime out there enough to keep the companies from sinking.


Do you really think you are more intelligent than other people?

I'm not saying you are stupid. Just wondering.
Sep 4, 2014 2:59 PM

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Jul 2013
673
People still buy stuff.
Only thing I got was posters and a cool Naruto headband thing they wear.
But I got that all for free waaayy back.
Sep 4, 2014 3:02 PM
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Dec 2010
10761
Let me introduce to you the wonderful invention known as television. Little known fact may be that anime is actually broadcasted, and the viewers watching this broadcast gives the company something called money. That simple enough for you, other than other mentioned factors that really wasn't all too hard to work out?
Sep 4, 2014 3:05 PM
lagom
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Jan 2009
107409
most late night anime shows profit from disc sales (DVD/BLuRay) from japanese otakus, an average of 2000-2500 disc sales (most of the time) per volume is enough for the anime makers to break-even profit

the long running anime shows that airs on morning time profit from higher tv ratings (tv advertisements) in japan like detective conan, naruto, one piece
Sep 4, 2014 3:07 PM

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Oct 2008
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DesuMaiden said:
mclovinballz said:
There's still some people gullible enough to that buy anime out there enough to keep the companies from sinking.

Yeah but if it wasn't for those people, no new anime would be made.


Anime is still aired in Japan, so advertising is a great source of funds.
If it has solution, don't bother; and if it hasn't, why bothering?

Do you like manga? http://gunjoteam.com
Sep 4, 2014 4:31 PM

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Aug 2014
4095
Merch.
Figmas, dakimakuras, wall scrolls.
Sep 4, 2014 5:25 PM

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2253
Either from ads (TV), merch/BD sales, or other forms of licensing (games, streaming services, etc). The industry is known to be supported by a pretty small minority that actually buys products. But really, they don't make much money at all. Wages are atrocious, and there wouldn't be an anime industry if there were labor laws in place.
Sep 4, 2014 5:28 PM

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Mar 2014
4446
Because there are some people that aren't arseholes.


I'm not one of them.
"I am the Bone of my Sword
Steel is my Body and Fire is my Blood
I have created over a Thousand Blades
Unaware of Loss,
Nor aware of Gain.
Withstood Pain to create Weapons, Waiting for one’s Arrival
I have no Regrets. This is the only Path
My whole life was Unlimited Blade Works"
Sep 4, 2014 6:18 PM

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Jul 2013
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Winter_Fox_Tami said:
DesuMaiden said:

Yeah but if it wasn't for those people, no new anime would be made.


You just answered your own question.

Yeah good point.
Here is my Pixiv account of my hentai drawings.....

https://www.pixiv.net/en/users/104739065

Here is my blog....

https://theendofindustrialcivilization.blogspot.com/?m=1
Sep 4, 2014 7:23 PM

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Jul 2014
52
Stalker-tan said:
Let me introduce to you the wonderful invention known as television. Little known fact may be that anime is actually broadcasted, and the viewers watching this broadcast gives the company something called money. That simple enough for you, other than other mentioned factors that really wasn't all too hard to work out?


That predominantly only pertains to morning and early afternoon shows. Ones that air late at night, which the majority of anime do, will either receive an extremely small percentage of advertising revenue, none at all, and often a studio will have to pay a television station to air their show.
Sep 4, 2014 7:58 PM

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Jul 2013
12161
Stalker-tan said:
Let me introduce to you the wonderful invention known as television. Little known fact may be that anime is actually broadcasted, and the viewers watching this broadcast gives the company something called money. That simple enough for you, other than other mentioned factors that really wasn't all too hard to work out?

Who watches TV anymore when everything can be found on the Internet.
Here is my Pixiv account of my hentai drawings.....

https://www.pixiv.net/en/users/104739065

Here is my blog....

https://theendofindustrialcivilization.blogspot.com/?m=1
Sep 4, 2014 8:05 PM
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licensing agreement contracts.
Sep 5, 2014 4:00 AM
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Merchandise is the key I guess.
They also sell anime abroad to China, Korea, Hong Kong, Taiwan, alot of other Asian Nations. Middle East, contintinants of America aswell.
Sep 5, 2014 8:45 PM

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Oct 2013
616
They don't. They've lost a huge profit over the past few years due to illegal streaming. Yeah, people buy the merchandise, but it only helps so much. That's why they only make slice of life nowadays because it's the hardcore otakus who are gonna be the ones who show the most support out of anyone, and their favorite shows are harems and shit.
I'd go with emobubbles, but someone else already had it, damn bastard.
Sep 5, 2014 9:01 PM

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May 2013
13432
according to this article the anime industry is doing really well actually...those graphs look pretty legit

http://www.otakutale.com/2014/2013-anime-industry-gross-profits-sales/
I CELEBRATE myself,
And what I assume you shall assume,
For every atom belonging to me as good belongs to you.
Sep 5, 2014 9:12 PM

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Feb 2014
2171
People may not buy the actual anime themselves, but people buy a shit ton of figurines and other types of merch, one of them being me




Feb 12, 2015 4:28 AM

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Anti_Meta said:
People may not buy the actual anime themselves, but people buy a shit ton of figurines and other types of merch, one of them being me


TRUE ^^
Feb 12, 2015 4:52 AM

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May 2014
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frankly id rather straight up donate to an anime company rather than purchase a DvD. I prefer streaming to physical copies if I have both available and don't want to waste space for a DvD that I would only watch once (if ever)
Feb 12, 2015 5:15 AM

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Jan 2013
6305
why does OP think that us faggot gaijins matter to Japan at all

furthermore anime staff see very little of said "money" if they do at all.
http://myanimelist.net/forum/?topicid=463111
don't TL;DR unless you like repeating questions that are answered in this article/post.
Feb 12, 2015 6:51 AM

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Do they largely depend on DVD sales?
Feb 12, 2015 7:00 AM

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There is two problems op.

One most pirated things arn't for sell outside of japan, or in english or other sub formats. So there is no lost funds.

In the case of TV as soemone pointed out, commericials. People pay for spots on your airing block to try and sell you shit.

If anime companies weren't so goddamn xenophobic, or those outside wanting to resell things at 100-200% markup, it wouldn't be a problem. As simply working with fan subbers to make things like crunchy role albit without the fee might not be so bad.

Course its more national politcs than economics at play here, with a bit of greed.
Feb 12, 2015 7:14 AM

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Merchandising and DVD/BD sales are the current saving grace.
"I don't want to be alone, I want to be left alone"-AH


-Currently Enjoying-
Anime:
•ORANGE •91 Days •JoJo's Bizarre Adventure: Diamond is Unbreakable [Part IV] •Mob Psycho 100 •Bokuno Hero Academia
Manga:
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Feb 12, 2015 7:32 AM

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Because not everyone watches for free. The people who watch for free may tell friends of a show they never would have heard of and purchase it. Also some people watch online then pirchase the official dvd or bluray. Many people buy merchandising too.
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Feb 12, 2015 9:19 AM

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Aug 2014
77
They could probably make more money if nobody watched it for free, but another possibility is that if everyone had to pay for anime, only few people would watch it so they wouldn't sell much merchandise.

On the other hand, if nobody paid for watching, but thounds of people bought merchandise because everybody knows the anime from the internet, they could still make tons of cash.
Feb 12, 2015 9:21 AM
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Jul 2018
561871
I do not watch anime online for free.





I download it.
Feb 12, 2015 9:24 AM

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May 2013
13432
imo, anime has a hypnotic quality of making people wanna buy the merch, so it just tends to work out... i've heard the anime companies get pissed off at the streaming and torrenting, and that makes sense. However, I do watch anime for free (as well as on netflix) and I see nothing wrong with that, so long as I support the industry in some way shape or form. In the end, I think economics is a very complex ecosystem, and so long as you are keeping it real, you are giving back to the positive flow of capitalism ;)
I CELEBRATE myself,
And what I assume you shall assume,
For every atom belonging to me as good belongs to you.
Feb 12, 2015 9:27 AM
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561871
I have a rule to eventually buy any good anime I watch online on DVD. Good is the key word there though. I also buy merch like t-shirts and plushies often because that shits cool.
Feb 12, 2015 10:54 AM
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Dec 2014
1979
AudioDruid said:
I have a rule to eventually buy any good anime I watch online on DVD. Good is the key word there though. I also buy merch like t-shirts and plushies often because that shits cool.
I have that rule, too. Where do you usually buy that shit?
yukiomishima123Feb 12, 2015 12:33 PM
j
Feb 12, 2015 11:03 AM

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Nov 2013
131
The anime industry exists despite every non-Japanese person watching it for free because Japanese people pay for it.
Mar 14, 2016 11:11 PM
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Feb 2016
3
It is a great idea . You can try Earn Honey also . Here you can also earn money faster . Here I make $30000 in the last month ..
Mar 14, 2016 11:22 PM

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Jan 2013
6460
Merchandise sales. Anime is crazy expensive to buy: it goes from around 20 € per 3 episodes, and upwards. And that's in Japan. You can't even buy from where I'm from.
Mar 14, 2016 11:56 PM

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Jan 2013
2119
Manga sells pretty well but anime still probably sells, even in our internet age free shit torrent binge.
Mar 15, 2016 6:53 AM

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Jul 2011
847
Selling merchandise worldwide, selling anime largely locally, license agreements, network tv in some cases, paying employee's poor wages, ad revenue in some cases, and box office ticket sales in some instances. Quite a few ways really. The West generally isn't the target audience, so sales outside of Asia are not an integral part of the process.

Besides plenty of people will pay exuberant amounts of money for things they want, even if you as an individual will not. The term "whales" exists for gaming, but it can be applicable to other mediums of entertainment.

Mar 15, 2016 8:18 AM
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May 2009
12618
One would be broadcasting rights in Asia.

Alot of Asian Countries are sold the rights to certain anime, or the rights are sought by broadcasting companies.

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