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Mohawk52
Joined: 16 Oct 2003
Posts: 8202
Location: England, UK
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Posted: Sat Apr 14, 2012 3:00 pm
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reanimator wrote: | It's all about economy, folks.
Bandai Japan is not interested in licensing titles where they put a lot of investment into. Eureka Seven franchise happens to be one of them.
When they pulled plug off from their US operation, Bandai Entertainment, it shows that they want to make seriously large sum of money from collectors rather than making pennies from cheap BD/DVDs.
They realized that making few thousand dollars on one DVD title isn't enough to cover costs associated with production, marketing, and overhead. Bandai Entertainment was selling DVD's for cheap, but their cheap price still couldn't keep them afloat at shrinking DVD market.
Vast majority of fans here watch anime from stream and downloads. Most of them don't buy physical media even though they're lot cheaper than Japanese counterparts. Bandai Japan knows that they're not going to make serious money through cheap BD/DVD. So, it's not worth their time to make few thousand dollars licensing their major franchise and trying upkeep US branch which is not making money. They want to sell directly to collectors since casual fans will watch the show via stream and downloads.
For Japan, they only need sell 4,000~6,000 units of $500 DVDs to cover show's production cost ($2 million~$3 million). Our side need to sell 40,000~60,000 units to match the production cost. Seriously, how many anime DVDs in the US actually reached 10,000 unit mark? |
Well for this collector, if there's no dub, there's no sale either side of the Ring Of Fire, and with Japan's economy still deep in recession with large unemployment for reasons of both global stagnation, and still recovering from 11/03/11 Bandai could be betting on a long shot that this is going to work for them, besides most of their profits come from their sales of merchandice there anyway. Also how does one "collect" a stream?
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superdry
Joined: 07 Jan 2012
Posts: 1309
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Posted: Sat Apr 14, 2012 6:57 pm
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Conan-san wrote: | Not every season will have a Fate/Zero for Aniplex to sponge another 500$ off of a few suckers.
Their luck is going to run out and then they'll be laughing on the other side of their faces. |
Are you talking about Aniplex USA or Aniplex Japan (yes, there is a difference)?
Aniplex Japan doesn't need a Fate/Zero every season since they produce/publish a ton of stuff every year like other anime companies (Persona 4 is a major hit for them, same with Inu X Boku SS so far). They get their revenue domestically, farming certain select titles to their US subsidiary and generally licensing their titles to R1 publishers.
Aniplex USA on the other hand, I feel is like a mystery. They only publish select Aniplex JP titles and their style of release is all over the place. I can see that they might fall on some hard times if their parent company has no hits on their hand that they want to handle directly, but, so far, that's rare during the companies small lifetime.
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agila61
Joined: 22 Feb 2009
Posts: 3213
Location: NE Ohio
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Posted: Sat Apr 14, 2012 6:57 pm
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Mohawk52 wrote: | ... Well for this collector, if there's no dub, there's no sale either side of the Ring Of Fire, |
... if having a dub roughly doubles the sales at any given level (which would be too crude to make an actual investment decision, but seems like it could be the right magnitude), then question is whether half the sales of the Direct English Export dub covers the cost of the dub.
Assuming the Direct English Export is around $350 (Garden of Sinners was $400 direct, but an SRP of $600), Japanese level net revenues of about 55%, and the cost of adding a dub is $150,000, that's $540,000 in gross sales of the dub release, or 1,550 Direct English Export sales. So if you expect you can sell 800 sub-only or 1,600 hybrid, go hybrid, if you expect you can sell 500 sub-only or 1,000 hybrid, go sub-only.
Different expected sales multipliers for dubs, net revenue shares, dubbing cost would place the hybrid vs sub-only threshold at a different place, but the basic principle of the incremental sales from a dub having to cover the incremental fixed cost of doing the dub is universal, whether its the Direct English Export price points or the more traditional US mainstream first release price points. For any given title, there is an expected sales levels where doing a dub costs more than it gains, and expected sales levels where not doing a dub is leaving extra money lying on the table.
And then there's the question of the Kickstarter model, where you could bring the threshold down by getting the uncertainty out of the way.
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Spotlesseden
Joined: 09 Sep 2004
Posts: 3514
Location: earth
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Posted: Sun Apr 15, 2012 2:02 am
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Conan-san wrote: | Not every season will have a Fate/Zero for Aniplex to sponge another 500$ off of a few suckers.
Their luck is going to run out and then they'll be laughing on the other side of their faces. |
Aniplex USA is probably the most successfully R1 anime company in US right now. Their stuffs have no problem selling out. It's just the $500 box set. Even Oreimo sold out, but i heard they are going to Rerelease it. Aniplex doesn't release none popular titles, they will license those titles to companies like funimation to make money this way. After Madoka, they will have Bakemonogatari.
I really don't believe American anime otuka know how to run a business.
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BigOnAnime
Encyclopedia Editor
Joined: 01 Jul 2010
Posts: 1246
Location: Minnesota, USA
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Posted: Sun Apr 15, 2012 4:48 am
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Not sure if I would want to import this, as much as I loved the first season (It's my 5th favorite anime). Hopefully this is a sign a simulcast will happen, and hopefully not the "We'll simulcast in English in X places, but not North America." thing. I think I'll just wait for someone to pick it up, FUNimation is my guess.
luffypirate85 wrote: | He gives great points. The casual fans opinion of anime in the R1 is so dumbed down from what it once was. Everyone is so focused on "cheap" that it is literally at the level of dirt. They want to consume every show imaginable instead of just the few that really won them over. So yeah everyone, go on and bash Bandai Visual. If you are complaining then those subtitles were most likely not put on there for you. They know you have zero intent on buying these discs. Also, zero evidence to support that it won't be licensed for a domestic release in the future. |
Personally I want to own every show I liked as I'm a collector, (Although, some I'd have to import as they're not out here, but I don't like them enough to justify spending $500 something, or don't feel like importing), but even then, won't complain really about price points.
I'm starting to find anime to be underpriced here however. S.A.V.E. for everything is not the answer, especially when FUNi makes like $5 off each of those sets sold.
Spotlesseden wrote: | I really don't believe American anime otuka know how to run a business. |
Some probably do, and possibly are running their own business.
Though yeah, some have no clue. Reading the article Justin wrote a while back could help them.
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aereus
Joined: 08 Jun 2010
Posts: 576
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Posted: Sun Apr 15, 2012 5:37 am
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As others have mentioned, you can't really blame them for trying the Japanese pricepoint. The R1 market has such small margins, and yet people still complain about the price. I'm frankly surprised Funimation is even in business anymore with half their catalog given away for $25 a season.
I can totally see how selling 300 sets @ $400 could be more profit than selling 3000 @ $25. Especially if they don't have US operations and merely ship them over from Japan. Stuff like subbing can easily be coordinated from Japan to US contractors.
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BigOnAnime
Encyclopedia Editor
Joined: 01 Jul 2010
Posts: 1246
Location: Minnesota, USA
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Posted: Sun Apr 15, 2012 6:34 am
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aereus wrote: | I'm frankly surprised Funimation is even in business anymore with half their catalog given away for $25 a season. |
You're forgetting that's for shows they've had out for years and are near the end of their contracts, many of which were first released in singles. Hell, many still have their artboxes in Rightstuf's bargain bin (Hell, just search "Artbox" there, and look at how many there are), and Rightstuf is trying everything they can do to get rid of them. They made most of their money off of those shows a long time ago.
Expect to see a lot of those shows they've had out for a long time that got S.A.V.E. releases go OOP in a few years.
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Mohawk52
Joined: 16 Oct 2003
Posts: 8202
Location: England, UK
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Posted: Sun Apr 15, 2012 8:15 am
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agila61 wrote: |
Mohawk52 wrote: | ... Well for this collector, if there's no dub, there's no sale either side of the Ring Of Fire, |
... if having a dub roughly doubles the sales at any given level (which would be too crude to make an actual investment decision, but seems like it could be the right magnitude), then question is whether half the sales of the Direct English Export dub covers the cost of the dub.
Assuming the Direct English Export is around $350 (Garden of Sinners was $400 direct, but an SRP of $600), Japanese level net revenues of about 55%, and the cost of adding a dub is $150,000, that's $540,000 in gross sales of the dub release, or 1,550 Direct English Export sales. So if you expect you can sell 800 sub-only or 1,600 hybrid, go hybrid, if you expect you can sell 500 sub-only or 1,000 hybrid, go sub-only.
Different expected sales multipliers for dubs, net revenue shares, dubbing cost would place the hybrid vs sub-only threshold at a different place, but the basic principle of the incremental sales from a dub having to cover the incremental fixed cost of doing the dub is universal, whether its the Direct English Export price points or the more traditional US mainstream first release price points. For any given title, there is an expected sales levels where doing a dub costs more than it gains, and expected sales levels where not doing a dub is leaving extra money lying on the table.
And then there's the question of the Kickstarter model, where you could bring the threshold down by getting the uncertainty out of the way. |
If they want to piss about and just release it for US only then yeah that could be the case. Release the dub region free and I'll bet they make that x 3 with ease and then some, no mistake, as long as they don't take the piss and price gouge. They just have to remember that the US isn't the only English speaking country on this planet that has anime fans
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agila61
Joined: 22 Feb 2009
Posts: 3213
Location: NE Ohio
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Posted: Sun Apr 15, 2012 9:49 am
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Mohawk52 wrote: | If they want to piss about and just release it for US only then yeah that could be the case. Release the dub region free and I'll bet they make that x 3 with ease and then some, no mistake, as long as they don't take the piss and price gouge. |
First, its x {something}, but I doubt its x3. The combined Australia, New Zealand, Ireland and UK markets are smaller than the North American market.
And the dub preference seems to be strongest among native English speakers ~ many ESL anime viewers are more adept at following written English than spoken English, and in any event are often more used to watching a variety of subtitled content in their native language. Plus its a lot cheaper to commission English, German, French, Spanish and Portuguese subtitles than to commission a dub in a single language.
However, there is indeed no reason for the Japanese distributors to region code their own BD's ~ that's a condition they impose on distributors in other media regions to put more sand in the gears of reverse import ~ so for a BD-oriented Direct English Export model, it would indeed make all the sense in the world to license for English Speaking Countries and make the Direct English Export available to online distributors in North America, the UK&Ireland, and Australia&NZ. For some titles, that would push them over the threshold to justifying a dub. For others, not.
Quote: | They just have to remember that the US isn't the only English speaking country on this planet that has anime fans |
Yes, but North America is likely over half the English speaking anime market, which makes a variety of North American only approaches viable which wouldn't be viable on a UK-only or Australia-only basis. OTOH the UK and Australia are in the same Blu Ray region as each other, and a different one from Japan ~ and in the same Blu Ray region as France, which is a substantial international anime market (and certainly a larger manga market than North America).
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aereus
Joined: 08 Jun 2010
Posts: 576
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Posted: Sun Apr 15, 2012 1:24 pm
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Even if it's not SAVE editions, the usual selling price of a 13ep series these days is about $40-45. Which means Funi et al probably get about $30-40 selling the set to vendors.
The Aniplex sets obviously are a higher quality product in presentation and goodies, but that kind of stuff doesn't dramatically drive up the production costs. So the vast majority of that extra price is pure profit. So you can see how each Aniplex set could easily be worth 10-20 sales of cheaper boxes.
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jsc315
Joined: 09 Aug 2004
Posts: 925
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Posted: Mon Apr 16, 2012 7:53 am
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aereus wrote: | Even if it's not SAVE editions, the usual selling price of a 13ep series these days is about $40-45. Which means Funi et al probably get about $30-40 selling the set to vendors.
The Aniplex sets obviously are a higher quality product in presentation and goodies, but that kind of stuff doesn't dramatically drive up the production costs. So the vast majority of that extra price is pure profit. So you can see how each Aniplex set could easily be worth 10-20 sales of cheaper boxes. |
A nice box is one thing. I could care less about a super fancy set with extra crap in it. The extras for the most part are cheap throw away stuff that in no way justify the extra price at all. Trim all the fat and just sell me something. As long as it's something I know I want to buy and has subtitles on it I'll buy it. But to add a bunch of useless crap just to drive the price up is stupid and never in my life will I but a set just to get a few extra things that are way over priced.
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Mohawk52
Joined: 16 Oct 2003
Posts: 8202
Location: England, UK
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Posted: Mon Apr 16, 2012 10:41 am
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agila61 wrote: |
However, there is indeed no reason for the Japanese distributors to region code their own BD's ~ that's a condition they impose on distributors in other media regions to put more sand in the gears of reverse import ~ so for a BD-oriented Direct English Export model, it would indeed make all the sense in the world to license for English Speaking Countries and make the Direct English Export available to online distributors in North America, the UK&Ireland, and Australia&NZ. For some titles, that would push them over the threshold to justifying a dub. For others, not. |
But if they do that then they are opening their market for reverse importation unless they slap a hefty import tariff on them to deter it.
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Quote: | They just have to remember that the US isn't the only English speaking country on this planet that has anime fans |
Yes, but North America is likely over half the English speaking anime market, which makes a variety of North American only approaches viable which wouldn't be viable on a UK-only or Australia-only basis. OTOH the UK and Australia are in the same Blu Ray region as each other, and a different one from Japan ~ and in the same Blu Ray region as France, which is a substantial international anime market (and certainly a larger manga market than North America). |
I think you might be being a bit biased in your estimate there, or are you including Canada in that as well? But I get what you're trying to say. Still it would mean a larger field to harvest a profit from compared to just their own. I'm not sure if you are aware but India's second language is English from the days of the Raj and there must be a few anime fans living there as well though we don't hear much from them.
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Polycell
Joined: 16 Jan 2012
Posts: 4623
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Posted: Mon Apr 16, 2012 11:20 am
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Mohawk52 wrote: | I'm not sure if you are aware but India's second language is English from the days of the Raj and there must be a few anime fans living there as well though we don't hear much from them. |
Most of India is also ridiculously poor; there's not much money to be made there. On the plus side, since VCD still seems to be popular there, reverse importation isn't a concern.
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Ingraman
Joined: 07 Feb 2005
Posts: 1084
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Posted: Mon Apr 16, 2012 11:21 am
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jsc315 wrote: | A nice box is one thing. I could care less about a super fancy set with extra crap in it. The extras for the most part are cheap throw away stuff that in no way justify the extra price at all. Trim all the fat and just sell me something. As long as it's something I know I want to buy and has subtitles on it I'll buy it. But to add a bunch of useless crap just to drive the price up is stupid and never in my life will I but a set just to get a few extra things that are way over priced. |
You're looking for a Yugo-like release, rather than one like a Camry or 135i (let alone S-class)? ^^
I'm not often impressed by Funimation or ADV releases, because they don't generally seem to care much about their product. They seem to put little effort into the release (which may be caused by the licensor, but they don't come out and say so), and just (maybe in ADV's case) throw a dub at it. I prefer the NISA/Nozomi/Aniplex style of release. I'm happy to hear about titles getting licensed, but I just sometimes sigh when I hear about Funi/ADV getting a title that I like.
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agila61
Joined: 22 Feb 2009
Posts: 3213
Location: NE Ohio
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Posted: Mon Apr 16, 2012 11:47 am
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Conan-san wrote: | Not every season will have a Fate/Zero for Aniplex to sponge another 500$ off of a few suckers.
Their luck is going to run out and then they'll be laughing on the other side of their faces. |
But on their business model ~ they'll have the regular releases coming down the pike, and streaming licensing of new series ~ they can afford to just not do a Super Premium Price release in a season where there is not a title that will support that price point.
Polycell wrote: |
Mohawk52 wrote: | I'm not sure if you are aware but India's second language is English from the days of the Raj and there must be a few anime fans living there as well though we don't hear much from them. |
Most of India is also ridiculously poor; there's not much money to be made there. On the plus side, since VCD still seems to be popular there, reverse importation isn't a concern. |
In a country of a billion people, you only need 10% at a middle class standard of living, and its a market of 100m people. Even if exchange rates mean they can't afford the same price points, if collecting anime became a middle class thing to do, there's be money to be made from selling to that market.
Thing is, there's a strong "imported is better" attitude, supported by the fact that much of the domestic media is sold in ultra-cheap plastic hangers with color display pictures, and with a large share of them being bootlegs. Indeed, you might tap that market equally well by allowing UK DVD releases to be R2|R5 and BD releases to be B|C.
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