Anime Producer Concerns About Asymmetry of Anime Fans

by dtshyk
Feb 16, 2010 12:51 AM | 15 Comments

IG Port (the parent company of Production I.G, ZEBEC, and Mag Garden) released the statement of accounts for fiscal 2010 May term. In the attached report, IG Port analyzed the current business model of anime industry. They stated apprehension about the dependence on the domestic DVD sales and the "core" anime fans.

Breakdown of the profits of TV anime

The chart shows a typical case of TV anime aired after midnight. The domestic DVD sales make up 70 - 80% of the profits. Although the enthusiasm of foreign anime fans has been frequently reported by the mass media, but the international market itself is shrinking. The current unit prices of TV anime traded overseas are one-tenth of those at the peak period. The online streaming is a growing business but it has produced little profits.

Current "all-or-nothing" Customer Behavior

The current business model relies on "buy expensive anime DVD or none" behavior of core fans. The industry fails to make profits from the light and foreign anime fans.

Ideal "diverse" Customer Behavior

In order to encourage the light anime fans to spend money on anime, the industry has to present them multiple ways to reach the anime materials other than expensive DVDs. Digital contents and online pay services will be effective.

Source: IG Port (pdf file)

15 Comments Recent Comments

ChaoXide said:

It's like they make the shit and expect it to sell without even letting people know it exists.. and then they price it so high only rich people can afford it.. and then they whine like little babies cause no ones buying their shit.

^This.

Feb 21, 2010 1:01 PM by lawfer

I do buy anime when I can afford it, but anime is too high priced so I don't buy very often. When I do, I usually buy it cheaper by getting it used on like Amazon or something.

If they would release in the USA just a couple weeks of releasing in Japan... as well as lower prices... then more people would buy.

Also if they spent a little more on advertising on TV for anime in the USA.. it would expose said series to other viewers.. but from where I stand... I see little to NO advertising being done.

It's like they make the shit and expect it to sell without even letting people know it exists.. and then they price it so high only rich people can afford it.. and then they whine like little babies cause no ones buying their shit.

Feb 20, 2010 9:57 PM by Koby

The main problem is the vast difference between what core fans want and what casual fans want. The core fans demand moe, ecchi etc., but that kind of thing is extremely off-putting to casual fans. It doesn't help that shows that would appeal to casual fans are often buried by hype for other shows by the core fans.

Aishia said:
What do they mean by Overseas sales on that chart? Those licensed by overseas publishers?

If so, then, in my opinion, the real problem with Overseas sales is the amount of time foreign publishers take to license and release anime. By the time a particular anime is released on DVD in the US, for example, we anime fans are already finished watching said anime and are already obsessed with newer series.

I long for the day when that changes...

Well, love them or hate them, CrunchyRoll is starting to change that. The problem is that they are choosing the wrong shows. Only 2 out of the top 10 anime in last season's FAL were licensed by Crunchyroll (Fairy Tail and Tegami Bachi). Granted, FAL includes fansubs as a points source, but even if it didn't, the main change would probably have been the Viz-licensed Inuyasha replacing Blacksmith (which probably got most of its points from the sheer number of fansubs for it) in the top 10.

Feb 17, 2010 4:51 AM by Rosa_FOEtida

Tis because the stuff the "core" people buy is usually an excuse for anime porn. I'm not kidding. >_>

Feb 16, 2010 6:21 PM by BasakaNZ

overseas publishers grab the most popular crap in hopes to make profits but nobody buys dvds anymore because people are cheap and pirate everything anyway so less people make money

and besides the hardcore market buys the same amount of merchandise whether its cheap or not so the market jacks up dvd prices to break even more, its kinda a crappy cycle but not like plastering 20 ads to show one episode online is gonna offset any costs to making shit anyway

Feb 16, 2010 2:01 PM by Netforce

What do they mean by Overseas sales on that chart? Those licensed by overseas publishers?

If so, then, in my opinion, the real problem with Overseas sales is the amount of time foreign publishers take to license and release anime. By the time a particular anime is released on DVD in the US, for example, we anime fans are already finished watching said anime and are already obsessed with newer series.

I long for the day when that changes...

Feb 16, 2010 9:46 AM by Aishia

Not exactly what's going on here, but the "how to appeal to casual anime fans" reminds me that I'm sick of watching companies (outside of anime, I mean) treat their hardcore consumer base like shit while bending over backwards to try to get other people to care (and usually failing). Yes, I realize expansion is the name of the game, and I would probably see it differently if I was a business owner or worked for one of them, but treating your best customers well and trying to expand don't have to be mutually exclusive.

Feb 16, 2010 9:06 AM by therubicon

BUT I LIKE MY DVDS

also I don't think they will ever stop airing anime on Japanese TV. Whoever said that is very naive. They make money off commercials. Also, how would shows get exposure if they were only released on DVD? I am in the minority that I will buy any anime I see on DVD as long as the box looks nice (yes, I know), but many people prefer to only buy an anime box set after they've seen it and know they like it.

Feb 16, 2010 6:56 AM by Sick_Bastard

tak about something new

Feb 16, 2010 6:47 AM by Mr_Gutts

superdiaper said:
Nice of them to notice this. But i think one reason why they aren't doing well in the "foreign" market is because we don't get alot of variation in the anime we get. It's usually mech stuff, tsundere stuff, or shonen type stuff. We need more. And online streaming isn't doing well because it seems "only in america" (i'm in england by the way) and again not much choice.

We need more choice lol

What we ask is what we get.

As for the rest, I agree Europe is very ignored.

Feb 16, 2010 3:36 AM by ladyxzeus

Nice of them to notice this. But i think one reason why they aren't doing well in the "foreign" market is because we don't get alot of variation in the anime we get. It's usually mech stuff, tsundere stuff, or shonen type stuff. We need more. And online streaming isn't doing well because it seems "only in america" (i'm in england by the way) and again not much choice.

We need more choice lol

Feb 16, 2010 3:16 AM by Severus_Grey

Digital is the way pretty much everything is going now-a-days.

Anime is no exception.

Feb 16, 2010 2:06 AM by mylittlepony

teanut said:
Eventually, they might start selling dvds before airing the anime, or they might stop airing anime alltogether. Either way idc.

You're on an anime site. I call bullshit.

Feb 16, 2010 2:03 AM by _Me_

Eventually, they might start selling dvds before airing the anime, or they might stop airing anime alltogether. Either way idc.

Feb 16, 2010 1:55 AM by teanut

dtshyk said:

In order to encourage the light anime fans to spend money on anime, the industry has to present them multiple ways to reach the anime materials other than expensive DVDs. Digital contents and online pay services will be effective.

Took them all this time to realize this. However forcing people to pay for things will not work and the industry will go down again.

Feb 16, 2010 1:50 AM by ladyxzeus