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NEWS: Crunchyroll to Halt Ad-Supported Streaming Starting With Spring 2022 Season


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AntiKuro



Joined: 01 Aug 2017
Posts: 202
PostPosted: Sat Mar 26, 2022 1:15 pm Reply with quote
Eh, Honestly the way CR did there ads are one of the main reasons I refused to use CR in the first place. If I remember right they'd slot like 3 or 4 of the same 5 seconds ads right in the middle of an episode.

Which, honestly, is annoying as shit, especially because they'd do it in parts where there was no intended ad break and it was jarring.

If CR is going to do anything at the moment they need to make an app so you can stream. I don't mind switching from Funimation to CR but one of the reasons I pay, instead of pirating, is because I can load up a Funimation app on my TV and just stream it from there.
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Key
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Joined: 03 Nov 2003
Posts: 18363
Location: Indianapolis, IN (formerly Mimiho Valley)
PostPosted: Sat Mar 26, 2022 1:15 pm Reply with quote
Based on anecdotal evidence, I think the doomsayers in this thread are vastly overestimating the impact this will have.

For those who don't already know, I am a high school teacher. A significant number of my students (at least a quarter, maybe as many as a third) watch anime to some degree; I see it all the time in study halls, and catch students trying to watch it in regular classes on a regular basis. A lot of them are from poor backgrounds, too, so these are the up-and-coming anime fans that people seem most concerned about. However, absolutely none of them use legal ad-supported free services like Crunchyroll. CR's move on dropping ad-supported free service for new titles won't affect them one bit.

I got into digitally-distributed fansubbing relatively early, so was around for its heyday. That scene was never more than a fraction as vibrant as illegal streaming is these days, and that despite sites like CR having free ad-supported offerings. Between that and my observations on my students, I would bet that a large percentage of CR's free ad-supported viewers probably aren't watching new series on CR anyway. They do have a very substantial anime catalog at this point, after all.

Will be interesting to see what CR's viewership numbers look like after a full season of this change, but honestly, I'll be surprised if they change drastically. As others have said, it's a correct financial move for CR, and it will not shake up the streaming viewership scene anywhere near as much as some are fearing.

EDIT:
Quote:
If CR is going to do anything at the moment they need to make an app so you can stream. I don't mind switching from Funimation to CR but one of the reasons I pay, instead of pirating, is because I can load up a Funimation app on my TV and just stream it from there.

Really curious to know how you do that, as I thought Funi had stopped support for the Smart TV-friendly app they had years ago.


Last edited by Key on Sat Mar 26, 2022 1:19 pm; edited 1 time in total
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Yuvelir



Joined: 06 Jan 2015
Posts: 1620
PostPosted: Sat Mar 26, 2022 1:16 pm Reply with quote
AntiKuro wrote:
Eh, Honestly the way CR did there ads are one of the main reasons I refused to use CR in the first place. If I remember right they'd slot like 3 or 4 of the same 5 seconds ads right in the middle of an episode.

Which, honestly, is annoying as shit, especially because they'd do it in parts where there was no intended ad break and it was jarring.

If CR is going to do anything at the moment they need to make an app so you can stream. I don't mind switching from Funimation to CR but one of the reasons I pay, instead of pirating, is because I can load up a Funimation app on my TV and just stream it from there.

They do have apps though?
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BigOnAnime
Encyclopedia Editor


Joined: 01 Jul 2010
Posts: 1242
Location: Minnesota, USA
PostPosted: Sat Mar 26, 2022 1:26 pm Reply with quote
Key wrote:
Based on anecdotal evidence, I think the doomsayers in this thread are vastly overestimating the impact this will have.

For those who don't already know, I am a high school teacher. A significant number of my students (at least a quarter, maybe as many as a third) watch anime to some degree; I see it all the time in study halls, and catch students trying to watch it in regular classes on a regular basis. A lot of them are from poor backgrounds, too, so these are the up-and-coming anime fans that people seem most concerned about. However, absolutely none of them use legal ad-supported free services like Crunchyroll. CR's move on dropping ad-supported free service for new titles won't affect them one bit.

I got into digitally-distributed fansubbing relatively early, so was around for its heyday. That scene was never more than a fraction as vibrant as illegal streaming is these days, and that despite sites like CR having free ad-supported offerings. Between that and my observations on my students, I would bet that a large percentage of CR's free ad-supported viewers probably aren't watching new series on CR anyway. They do have a very substantial anime catalog at this point, after all.

Will be interesting to see what CR's viewership numbers look like after a full season of this change, but honestly, I'll be surprised if they change drastically. As others have said, it's a correct financial move for CR, and it will not shake up the streaming viewership scene anywhere near as much as some are fearing.
Except as I pointed out earlier in this thread, we know how many were watching for free with ads because Crunchyroll told us,115 million free users compared to 5 million paying subscribers. What are those 115 million going to do? Some will get subscriptions (mostly the older audience), others will flock to piracy (mostly the younger audience). Crunchyroll helped cause fansubs to become obscure (remember why Dattebayo stopped fansubbing Naruto Shippuden?), and now this move will only push more people to the most popular form of piracy these days, legal streaming rips.
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OtomeGay



Joined: 14 Oct 2021
Posts: 132
PostPosted: Sat Mar 26, 2022 1:26 pm Reply with quote
This is such a bad decision. Lots of people can't afford a subscription, myself included. Guess it's for the best that I stick to manga. You can buy it and own it permanently, unlike streaming a series.

Last edited by OtomeGay on Sat Mar 26, 2022 1:30 pm; edited 1 time in total
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CastMember1991



Joined: 06 Feb 2012
Posts: 864
PostPosted: Sat Mar 26, 2022 1:31 pm Reply with quote
Yuvelir wrote:
The last couple of headphones I've bought are from Sony and I must say, I'm quite displeased with them!


What model were they?
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Mune



Joined: 20 May 2004
Posts: 379
Location: Minnesota
PostPosted: Sat Mar 26, 2022 1:37 pm Reply with quote
JoelBurger wrote:
Mune wrote:
If you think waiting 3 months to watch something for free is too long, I'm calling you entitled. As a child, I had to wait years from the initial air date and months between episodes, (oh, the dark ages of anime or as some call them, the age of great anime).


Yes, clearly things should never get better, because they weren't good when you were a child. What a smart and totally not psychotic viewpoint on things.


I think things should get better. I am hoping that the one pulling the strings on this decision were doing it with the intention to appeal to those that binge watch anime or have some other benefit to doing so. Or maybe this will just be the new norm? I bet CR will be getting, if not already gotten, plenty of backlash from such a decision.

However, we do not know who is actually pulling the strings for these changes. Is it Sony? Is it the original publishers? Or is it CR trying to make changes on their own?
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LuScr



Joined: 26 Apr 2007
Posts: 143
PostPosted: Sat Mar 26, 2022 1:38 pm Reply with quote
No matter how I look at this, it doesn't make sense. The only conceivable reason I could see for CR doing this is because they decided the expense/hassle of supporting the ad-based version is not worth the extra revenue--but if that's the case, then why are they still offering the ad-based version for pre-Spring 2022 shows? It's not like that's a sunk, one-time cost. It should be just as much of an ongoing concern with the back catalogue as it would be with the new simulcasts.

(For that matter, how long will they continue to offer free ad-based viewing for those older shows? From the announcement, it sounds like this won't be a rolling thing--starting with Spring 2022, every new series will be locked behind a paywall in perpetuity--and the further out we go, the less sense that arbitrary dividing line will make.)

Even setting aside concerns about how this will affect viewership, I'm not sure what CR gains from this move.
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Covnam



Joined: 31 May 2005
Posts: 3787
PostPosted: Sat Mar 26, 2022 1:40 pm Reply with quote
I guess ad revenue wasn't that great (which has reportedly been down in recent years) + absorbing a major competitor led to this.

BigOnAnime wrote:
Quite the decision being made. As of last year, Crunchyroll had 120 million users, and of those, only 5 million were paying subscribers.

The difference between those numbers is enormous. A significant portion of Crunchyroll's revenue as a result is that ad revenue.


The difference between those two number is huge, but that doesn't mean that it still represents a significant portion of their revenue. If each user's ad revenue was only 1/100th of a subscriber's revenue, then the story is different. Also remember that registered users does not equal active users.

Sony's a business, if they were making $90 million on ads and $10 million on subscribers, they (most likely), wouldn't throw away such a huge difference in revenue in an attempt to push people to pay. It's certainly possible of course, but Sony is going to do whatever will make the most sense financially to them in both the short and long term.

It could also be that they see enough revenue from non-current content that the loss of revenue from those users who just watch the new content is worth it. Though that seems less likely, perhaps the costs to support all those free users hammering the servers when a new episode drops isn't worth it either.

Hagaren Viper wrote:
This is interesting as I keep hearing that other streaming services like Disney+ are considering adding a streaming-with-ads option, so to see Crunchy do the opposite is a choice for sure. Charging for something that has been free for ages rarely feels like a great move.


We don't know what Disney's pricing will be, but likely it won't be free, so I wouldn't say it's exactly comparable.

I could see Crunchy doing a less expensive ad tier after this, though they may need to get rid of a paid tier then to not seem too bloated. Premium (full access, no ads), Paid+Ads (full access) and Free+Ads (limited access).
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poltroon



Joined: 26 Sep 2018
Posts: 105
PostPosted: Sat Mar 26, 2022 1:40 pm Reply with quote
Interesting perspectives here that are different from how I experience it.

I find the ad-supported version unwatchable. I'm on a marginal connection, and my experience is that my anime, if for whatever reason I'm not logged in, is constantly interrupted. And not just at the midpoint. Each interruption is 5 ads that buffer... and are the same ad repeated 5 times in a row. Buffering separately each time. Or maybe it will be two different ads for the same company that I will have to watch literally 20 times total to get through an episode. Like if I had ever had any good feelings about Domino's Pizza, I assure you they are completely gone now.

This is not like a broadcast TV ad experience.

Compared to having a $150 cable bill, I don't find the monthly fee to be so inaccessible.
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paulchaested



Joined: 04 Oct 2016
Posts: 266
PostPosted: Sat Mar 26, 2022 2:00 pm Reply with quote
Covnam wrote:
I guess ad revenue wasn't that great (which has reportedly been down in recent years) + absorbing a major competitor led to this.

The difference between those two number is huge, but that doesn't mean that it still represents a significant portion of their revenue. If each user's ad revenue was only 1/100th of a subscriber's revenue, then the story is different. Also remember that registered users does not equal active users.

Sony's a business, if they were making $90 million on ads and $10 million on subscribers, they (most likely), wouldn't throw away such a huge difference in revenue in an attempt to push people to pay. It's certainly possible of course, but Sony is going to do whatever will make the most sense financially to them in both the short and long term.

It could also be that they see enough revenue from non-current content that the loss of revenue from those users who just watch the new content is worth it. Though that seems less likely, perhaps the costs to support all those free users hammering the servers when a new episode drops isn't worth it either.



I've tested it myself and you can definitely bypass CR's ads using ad-blockers if you're a free user and it's actually easy to do.

If this is causing CR to not make as much money as they want from ad revenues while they are comfortably making significantly more money from subscribers then yes I can see why they would discontinue their ad-supported free episodes.
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Cardcaptor Takato



Joined: 27 Jan 2018
Posts: 5068
PostPosted: Sat Mar 26, 2022 2:01 pm Reply with quote
Mune wrote:
No one said their back catalogue would be subscription only. Free users will still have access to it with ads. Likewise, there was no indication that after the spring season that they wouldn't just make this only for the current season. So, at most viewers would be behind is 3 months, not forever.

If you think waiting 3 months to watch something for free is too long, I'm calling you entitled. As a child, I had to wait years from the initial air date and months between episodes, (oh, the dark ages of anime or as some call them, the age of great anime).

That's an unhelpfully snide and judgmental attitude to take about this and it's not even true from the article. The article clearly states only the first three episodes of future simulcasts will be available for a limited time and that all future simulcasts after those first three episodes will be available only to paid subscribers. When they say prior seasons will be still be available for free users, that doesn't mean there will be a three month wait for the current season to be free. It means only seasons prior to spring 2022 will be available for free and all future seasons will be for paid users only. Nowhere does it say the spring season will be available free three months later and you have to twist the meaning of what's being said to justify assuming everyone with an issue with this is coming at it with ill intentions.

Quote:
Based on anecdotal evidence, I think the doomsayers in this thread are vastly overestimating the impact this will have.

For those who don't already know, I am a high school teacher. A significant number of my students (at least a quarter, maybe as many as a third) watch anime to some degree; I see it all the time in study halls, and catch students trying to watch it in regular classes on a regular basis. A lot of them are from poor backgrounds, too, so these are the up-and-coming anime fans that people seem most concerned about. However, absolutely none of them use legal ad-supported free services like Crunchyroll. CR's move on dropping ad-supported free service for new titles won't affect them one bit.
You already have tons of people on Twitter who are threatening to pirate anime if Crunchyroll gets rid of ad supported services. Maybe a lot of these people were never going to use Crunchyroll to begin with, but it doesn't help there's also this growing attitude among young people who see pirating as justifiable if they see a company as corrupt or unfair to consumers. How many times do you see young people on Twitter saying things like "it's always morally permissible to pirate Nintendo or Disney"? Now people already see Crunchyroll as this evil monopoly out to ruin anime. And again maybe these people were always never going to support Crunchyroll but anti consumer decisions like these will definitely help fuel their justifications.


Last edited by Cardcaptor Takato on Sat Mar 26, 2022 2:03 pm; edited 1 time in total
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Яeverse



Joined: 16 Jun 2014
Posts: 1144
Location: Indianapolis
PostPosted: Sat Mar 26, 2022 2:02 pm Reply with quote
ErikaD.D wrote:
Crunchyroll is sending "F-ck you" to non-subscriber users, including those who are low income. Watch free with ads after one week model is dead. Won't be surprised if CR will raising prices like Netflix.


from my experience, most low-income folks would gladly just take the abundance of free codes provided to CR members, additionally, people whould just binge watch when the season was over.

did many people really watch with ads week to week???

also viewing anything on any platforms with ads is going the way of the dinosaur, especially considering how powerful ad blocking technology is becoming,

a company would be wise to wean or get rid of such video type of revenue

consider twitch, no one generally believes that having ads in your streams is a good idea or pleasant experience and people are quick to sub and pay to not view with ads, from my experience only kids without any access to their own income endure such ads

Also tons of deals for low cost cr subs exist, especially during BF etc.
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AntiKuro



Joined: 01 Aug 2017
Posts: 202
PostPosted: Sat Mar 26, 2022 2:03 pm Reply with quote
Key wrote:
.
Quote:
If CR is going to do anything at the moment they need to make an app so you can stream. I don't mind switching from Funimation to CR but one of the reasons I pay, instead of pirating, is because I can load up a Funimation app on my TV and just stream it from there.

Really curious to know how you do that, as I thought Funi had stopped support for the Smart TV-friendly app they had years ago.


Not unless they just stopped it in the past month. It's one of the reasons I actually decided to get there streaming services. It was just easier to load up the app on my TV versus everything else, and it worked better for the most part.

Yuvelir wrote:
AntiKuro wrote:
Eh, Honestly the way CR did there ads are one of the main reasons I refused to use CR in the first place. If I remember right they'd slot like 3 or 4 of the same 5 seconds ads right in the middle of an episode.

Which, honestly, is annoying as shit, especially because they'd do it in parts where there was no intended ad break and it was jarring.

If CR is going to do anything at the moment they need to make an app so you can stream. I don't mind switching from Funimation to CR but one of the reasons I pay, instead of pirating, is because I can load up a Funimation app on my TV and just stream it from there.

They do have apps though?


CR doesn't have an app for the Smart TV unless they've recently just put one out in the past month.

Edit: I do know you can technically screen cast it to your TV from your phone, but if they already have apps for the website I don't see why they can't put it on the actual smart TV apps. I shouldn't need a Roku or Fire Stick.


Last edited by AntiKuro on Sat Mar 26, 2022 2:08 pm; edited 1 time in total
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Yuvelir



Joined: 06 Jan 2015
Posts: 1620
PostPosted: Sat Mar 26, 2022 2:04 pm Reply with quote
CastMember1991 wrote:
Yuvelir wrote:
The last couple of headphones I've bought are from Sony and I must say, I'm quite displeased with them!


What model were they?

MDR-EX110LP, which are kind of cheap but sound worse than everything I've ever bought at that range, and MDRZX110NAB.CE7, which works with AAA batteries and the sound quality drops significantly if you turn off the noise cancelling.

LuScr wrote:
No matter how I look at this, it doesn't make sense. The only conceivable reason I could see for CR doing this is because they decided the expense/hassle of supporting the ad-based version is not worth the extra revenue--but if that's the case, then why are they still offering the ad-based version for pre-Spring 2022 shows? It's not like that's a sunk, one-time cost. It should be just as much of an ongoing concern with the back catalogue as it would be with the new simulcasts.

The distribution method is probably stated in the licensing contracts, so they can't just go and change that unilaterally on a whim.

Covnam wrote:
The difference between those two number is huge, but that doesn't mean that it still represents a significant portion of their revenue. If each user's ad revenue was only 1/100th of a subscriber's revenue, then the story is different. Also remember that registered users does not equal active users.

Sony's a business, if they were making $90 million on ads and $10 million on subscribers, they (most likely), wouldn't throw away such a huge difference in revenue in an attempt to push people to pay. It's certainly possible of course, but Sony is going to do whatever will make the most sense financially to them in both the short and long term.

1/100th of a subscriber would mean it gives them like 10 cents per month per free user...
I suspect the intent isn't so much immediate net profit as influencing user behaviour and habits into something more profitable long term.
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