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Answerman - Are Streaming Revenues Improving The Lives Of Animators?


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configspace



Joined: 16 Aug 2008
Posts: 3717
PostPosted: Fri Feb 23, 2018 3:25 am Reply with quote
residentgrigo wrote:
Quote:
As of this writing they have yet to actually personally produce an anime or sit on a single production committee.

I though that Deviman and B The Beginning were the first wave of anime that only got green lit due to Netflix. I guess not?

The 300.000 dollar an ep. number is interesting to me. Where does it come from, as it seems kinda high for the average anime project. One 13 ep. season of anime would cost at least 4 mil. to put together. One 40 min. episode of CW´s Flash should cost a bit more that that but still...
300k is nearly 1/3 of what an ep. of Clone Wars cost, which is one of the costliest TV toons of all time, and Disney needed to bring down the budget of the followup show too, to satisfy profit margins. But Justin could be right. Japanese studios have become way too expensive to still get animation jobs for US animation works.

I distinctly remember The Under The Dog producers quoted a figure of $7.4 million (or 7.6 million? somewhere in the mid-7 millions) for a 24 episode show when they where trying to find investors. So that figure of around $320,000 per episode average jives with what they said too. Animation ends up costing a lot of money even at the current low wages. Actually it's a given how many man hours are involved vs total budget.

But it's not like any single entity is hugely profiting from that figure either. In an earlier Answerman article Justin cited another producer that it can take something like 10 or so years to recoup costs. It's basically the reason why production committees exist, rather than anime studios funding their own productions (which does happen but is rare). So that in the meantime, all the losses are spread out among many different companies and sponsors on the production committee.

That anime cost figure however high it might seem, pales in comparison to American animation studios which are a hell of lot more expensive per man-hour, especially since most demand royalties and residuals. It's also ironic given the lower quality animation and animation demands for western 2D cartoons. I had cited several references in another thread before, but overall, positions in the Japanese professional/skilled economy by a native Japanese company pay a lot less than equivalent American positions.
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HeeroTX



Joined: 15 Jul 2002
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PostPosted: Fri Feb 23, 2018 12:03 pm Reply with quote
Crext wrote:
Another funny creative solution is for all the best animators to open patreon accounts and give reference pieces to what they've done/show cast quality. That way the community can give them a pay-rise directly, and it wouldn't really matter what projects they work on as long as they get motivated.

While I agree that that would be cool, I don't think most animators have the time to keep content flowing on a patreon. What WOULD be interesting is if a patreon could keep animator workloads down (pay from animating+patreon funds giving a comfortable living) thus likely raising pay as workers get tougher to find. But more likely, if "patreon animators" worked less they'd just be seen as less reliable and replaced with non-patreon animators.
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relyat08



Joined: 20 Mar 2013
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PostPosted: Fri Feb 23, 2018 1:18 pm Reply with quote
invalidname wrote:
Quote:
However, it's slightly less exciting when you realize that those revenues aren't going to everybody equally, [...] If you look at Crunchyroll's list of popular shows, you'll see a lot of the same shows that have always populated that list. Naruto Shippūden and Boruto. One Piece. Dragon Ball Super. My Hero Academia.

At Crunchyroll Expo last summer, they had a session for premium subscribers only that pointed out something about their finances that I thought was really interesting. They said that your monthly subscription (minus whatever costs Crunchyroll takes for itself) is paid proportionately to the shows you watch. I would have assumed that payouts are simply based on what gets watched overall, but this seems to imply that it's paid out on a per-viewer basis. Meaning that if I never watch Naruto, none of my money goes to Naruto, and if I only watch Pop Team Epic, then all of my money goes to Popuko and Pipimi.


I thought this was a more understood fact of how royalty payments work, but I guess not. I think maybe the confusion comes from the fact that people are still thinking of royalty payments and licensing payments as the same thing. Royalties are paid based on views. To give an example, I used to work in a similar field and the standard royalty payout was $0.03 per view. So someone watching that show was directly contributing $0.03 to that project. Everything you watch is directly contributed to. $0.03 may seem like a tiny amount of money, but just multiply that by a few million and see how much of an impact it can have, especially over the course of a long series, or just multiple episodes in general.
Licensing is different. Those are upfront fees obviously paid to initially acquire something. Crunchyroll uses your monthly subscription to pay for everything the site does, more or less, so it is paying for both the $0.03 royalty per view you engage in, as well as the license payments they make. If you watch nothing, your subscription is only paying for licenses, but the more you watch, the more you are directly contributing to specific series. To clarify though, if you watch just one show, it's not like your entire subscription is going to that show. You're still only contributing $0.03 per view.


Last edited by relyat08 on Fri Feb 23, 2018 3:30 pm; edited 2 times in total
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jr240483



Joined: 24 Dec 2005
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PostPosted: Fri Feb 23, 2018 3:10 pm Reply with quote
MarshalBanana wrote:
The confusion seems to lie in that people forget/don't know, that animators are paid to make the product, at which point their involvement ends. The money CR, Sentai, Funi, Viz etc pay goes to the people who paid to make the product.


along as they get the income to do what they do best, its all that matters to me. however it will technically mean nothing since they aren't cracking down on those illegal streaming websites and torrent download websites. those sites like kiss anime have to be costing them serious revenue and their not doing something about it.

its a problem they really need to get their hands on otherwise it will be a problem later on. especially for the US side cause well known english dub VO's are more or less leaving the industry and going to other places like exclusively voicing for video games since piracy isn't as frequent.
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Compelled to Reply



Joined: 14 Jan 2017
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PostPosted: Fri Feb 23, 2018 10:08 pm Reply with quote
Cutiebunny wrote:
..And yet, what is happening is exactly what you're complaining about...corporations are starving those on the lowest rung of the corporate ladder. While this is not likely done with malicious intent, it IS happening. There's no reason that the CEO of any company in the US should be making over 30x what the lowest paid employee makes. I'm all for people putting in hard work to get there, but 30x...? That's just greed.

Going on a class warfare tirade doesn't help your argument.

Frankly, going by your logic, American streaming services would actually squeeze Japanese companies involved in anime production further if they're part of any committees, worsening what are "deplorable" working conditions for animators, according to a few disgruntled people. Unfortunately, squeezing every cent out of something is the American way of doing business for quite some time now. I've seen shakedowns of big Western European and Japanese companies, and even many of our own that haven't "adapted."
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leafy sea dragon



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PostPosted: Sat Feb 24, 2018 3:04 pm Reply with quote
Crext wrote:
I see, so it's a classical case of oligopoly conditions. In other words a few companies have received an "understanding" between themselves, with very little competition.

If all of this is true, then it should only be a matter of time until some alpha dog investor swallows the industry and creates a lasting competitive advantage by soaking up all the best talent. As a matter of fact it is astonishing it hasn't happened already. There has to be more to it than this...


That would make it a cartel, I believe, a condition in which a few major players in a business agree to a fixed price. Cartels have a reputation, regardless of industry (whether it be gasoline, drugs, or telecommunications), of being extremely hard to break, as any business that bucks the trend will fall under attack from or risk a hostile acquisition by one of the cartel members.

#861208 wrote:
- Opening up new demographics for anime - and not just in terms of geographic country. The same shonen shows get to be the most popular - why not focus on raising awareness among people who don't like that genre, that anime has more to offer than just that? I've been saying this for years, though...

But if that last point is accomplished, there can be a bigger market for more shows, for more studios = more pies, so that everyone involved can get a bigger slice, while still having enough slices to go around.

And people can finally get paid to make something other than shonen.


I believe that has already been tried. With some exceptions here and there (like Mr Osomatsu, and to a lesser extent, Pop Team Epic), the anime business has had a very hard time selling outside of its usual demographics. Either their marketing is bad, they've been judging the outside audiences wrong, or these potential viewers never had any interest in watching to begin with.

I do believe it can be done on a wide scale, but everything has to go right for that to happen.

HeeroTX wrote:
The real problem is everyone wants all of the "reward" with none of the "risk". Game companies go under ALL THE TIME, because when the hits dry up, you bleed money in a hurry. If you aren't careful with the millions from your one hit, you're in debt (and worse off than before you had the hit). I'm sure anime companies are the same way.


The game company that immediately comes to mind for me is Rovio. The reason why they merchandise and sold the rights for Angry Birds to pretty much anyone who asked and would pay money, though, was because the people who ran Rovio KNEW they'd be unlikely to come up with anything to match the success of Angry Birds...and as they've failed to make anything that could even catch on, the company shrank dramatically.

MiloTheFirst wrote:
Personally I think the issue with animators´ wages lies in themselves, and their own lack of emotional intelligence, any self respecting person wouldn't take a job that doesn't pay a living wage specially when entry level non-qualified jobs offer better. as citizens of a industrialized country they do have options, they just choose to keep working under unfavorable conditions. if anything they should let the industry short staffed in order to force their labor's value higher. or do you guys think workers of any other industry wouldn't be paid less if they didn't stand their ground and allow so?


They become animators in an anime because this is what they really want to do, and they will take a low wage to do it. It's really the same deal with Hollywood: Until you advance far enough in, you won't be getting a living wage (or perhaps any wage at all, as major studios each have their own little armies of unpaid interns that, despite the law saying they have to be given educational opportunities, are mostly just used as unpaid labor).

These are people very passionate about the line of work they've chosen to enter. They are essentially starving artists: They're not making a lot of money, but they have no intention to quit because they'd rather live without a lot of money than take a better-paying job they dislike. You know, the idea that "You get into this line of work not because you want to get rich; you get into this line of work because you like it." I don't see a lack of self-respect in that at all.

angelmcazares wrote:
Netflix's involvement in anime is interesting and potentially very exciting if more great stuff like Devilman Crybaby keeps showing up. There are a lot of question about how Netflix may impact the anime industry in the long run, but I want to be positive in hoping to see quality anime produced by them, and that the money they spend will reach the creators and staffers struggling with low wagers.


Devilman Crybaby definitely felt like the ind of show that could not have passed a production committee--or ANY sort of executive screening for an established company, for that matter. Netflix is currently in the phase in which they'll greenlight anything if it sounds interesting or different enough. The company's looking for its next big breakthrough hit. (Or its first, depending on how you look at it, but Orange Is the New Black has established itself pretty firmly.)

Cutiebunny wrote:
Studios could sell the actual artwork that goes into making these series, and I'm sure companies like Crunchy could easily find buyers in the US. I would (and have) bought lots of background artwork from previous anime works. Some of them are works of art in their own right. Or, distributors could arrange things so that a certain percentage of royalties/licensing fees goes to the animators themselves.


Like everything else though, unless the animators are selling those directly, there's no guarantee the money's going to mostly go to the animators. Or go to them at all.

#861208 wrote:
Also, a budget doesn't just get divided into wages. There's materials, transport, office rent, etc. - those things cost money. The physical tools of animation don't just materialize out of thin air. "But computers-" yeah, those aren't cheap either, in case you haven't noticed. Especially the ones that can run that level of advanced graphics software.

The software engineers, pencil manufacturers, train tickets, car insurance/repair, office rent, office electricity... adults shouldn't have to tell each other these things on online forums. Everyone should have learned this in high school, middle school even. What it really takes to run a business.


I used to work at a thrift store, and people would ask why they have to pay for these items when we received them for no cost in the form of donations. So I would commonly tell them that we still have to pay for rent, gas, water, electricity, Internet, phone, insurance, security, legal fees, garbage disposal, equipment, transportation, and so forth. Most of the time, they realize that the place is paying a lot of costs they don't really notice.

For other businesses, though, I sometimes see the inverse: Some people see the price of the raw materials and forget that, well, people have to be paid to turn those raw materials into something useful to the buyer.

TheAnimeRevolutionizer wrote:

And not to turn the conversation 180 degrees, I hope I am not, but honestly, I hope Netflix has a good grasp of knowing what they are doing with their new enterprise in investing money into the anime industry. As we've all seen in the past, it's going to take more than just blindly throwing money at various startups and any show idea presented (ahem Neo Yokio coff) and as we all know, show biz is "a hideous bitch goddess".


Actually, that is exactly what might work: What Netflix is doing right now is rolling the dice and hoping to get the numbers they want. The Netflix people have a lot of money, not a lot of hit shows, and not a lot of experience in picking people,so they're doing the only thing they CAN do, which is to greenlight risky projects and hope the risk pays off.

This has had precedent in the past with networks. The biggest example is The Simpsons, in which FOX, trying to elevate to the big three of CBS, ABC, and NBC, put out a whole bunch of TV shows, and The Simpsons was the one that did exactly that. Other examples I can think of are Comedy Central with The Daily Show and South Park, Cartoon Network with Dexter's Laboratory and The Powerpuff Girls (that's what the Cartoon Cartoon project was for: To let a lot of new and established talent make something and then let the viewers vote), and the Sci-Fi Channel (now SyFy) with Babylon 5 and Battlestar Galactica.

configspace wrote:
That anime cost figure however high it might seem, pales in comparison to American animation studios which are a hell of lot more expensive per man-hour, especially since most demand royalties and residuals. It's also ironic given the lower quality animation and animation demands for western 2D cartoons. I had cited several references in another thread before, but overall, positions in the Japanese professional/skilled economy by a native Japanese company pay a lot less than equivalent American positions.


Lower quality? They're different standards. Anime is more geared toward detail per individual frame; western animation is more geared toward smoothness. That is, for anime, more time (and thus money) is spent per frame, but for western animation, there are a lot more frames (and they are checked more for accuracy, particularly off-model shots and lip-synching). They also use different animation shortcuts, codified by Osamu Tezuka for anime and Hanna-Barbera for western animation (though they both share a common major shortcut of letting dialogue ease up on animators' work).
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