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Hey, Answerman! - Anime Economics 101


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ptj_tsubasa



Joined: 04 Feb 2009
Posts: 129
PostPosted: Sun Jul 18, 2010 1:08 pm Reply with quote
PBsallad wrote:
I've heard that a mangaka will get 20% per manga sale in the US. But as Brian said it depends on contract to contract.

I have no doubts that the US publisher might pay 20% of their sales as royalties to the Japanese publisher, but I don't think that affects the contract that the author has with the Japanese publisher.

Then again, if the contract states that the author gets the same 10 % of every foreign volume too, and US versions are twice as pricy as the Japanese versions, it might be true...
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agila61



Joined: 22 Feb 2009
Posts: 3213
Location: NE Ohio
PostPosted: Sun Jul 18, 2010 2:39 pm Reply with quote
ikillchicken wrote:
Still not sure what you're driving at. You don't need to know who you can buy it from. You just need to search on amazon or elsewhere online or look around in certain stores, neither of which requires you to know who distributes it. You just need the name of the series.


Yes, same as the supermarket could just leave the candy in the candy aisle and the magazines in the magazine aisle, but for some reason also sell them at the check-out line. The more steps between impulse and purchase, the lower the fraction of impulses are converted into sales.

Quote:
I can see where directly advertising the DVD release after the stream as they sometimes do would be somewhat helpful but for the most part, I still don't see much reason that free streams would boost sales anymore than fansubs


That is an important part of it, and in addition, people are institutionalized into assuming you have to pay to get an ad-free copy of something that you watch free with advertising.

Quote:
and if the fansubs are still out there than you've still got all the negative elements as well.


This section is not clear.

Quote:
So if streams themselves are actually generating revenue then great. If not though then I have to wonder if they're really making much of a difference.


The ad-streams aren't generating a tremendous amount of revenue directly, because they need a substantially higher viewership to do so. But there's no way to get to a higher level of viewership other than growing from an existing foundation.

And in the meanwhile, even if they do not generate substantial revenues directly, since they are self-funding and will generate some net sales relative to bootleg streaming sites, why wouldn't you? Its not that often you have a way to advertise that covers its own expenses by carrying someone else's advertising.
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agila61



Joined: 22 Feb 2009
Posts: 3213
Location: NE Ohio
PostPosted: Sun Jul 18, 2010 2:43 pm Reply with quote
ptj_tsubasa wrote:
PBsallad wrote:
I've heard that a mangaka will get 20% per manga sale in the US. But as Brian said it depends on contract to contract.

I have no doubts that the US publisher might pay 20% of their sales as royalties to the Japanese publisher, but I don't think that affects the contract that the author has with the Japanese publisher.


If the Japanese publisher does not have international rights in the contract, they can't sell the license in the first place. Same with derivative rights (anime and merch) ... if its not in the contract, its not a right the publisher can sell on.

It seems highly unlikely that the publishers would pay up front for something as speculative as international distribution, so a royalty payment is by far the more likely compensation for signing over the international distribution rights in the original contract.
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ikillchicken



Joined: 12 Feb 2007
Posts: 7272
Location: Vancouver
PostPosted: Sun Jul 18, 2010 4:44 pm Reply with quote
agila61 wrote:
ikillchicken wrote:
Still not sure what you're driving at. You don't need to know who you can buy it from. You just need to search on amazon or elsewhere online or look around in certain stores, neither of which requires you to know who distributes it. You just need the name of the series.


Yes, same as the supermarket could just leave the candy in the candy aisle and the magazines in the magazine aisle, but for some reason also sell them at the check-out line. The more steps between impulse and purchase, the lower the fraction of impulses are converted into sales.


No, that analogy makes no sense whatsoever. It would if you needed to know about Funimation to buy the anime. If the process was: learn about an anime, use that info to find the distributor, use that info to find out where you can buy it, then you would be cutting out a step. But it isn't. It's just as easy for someone who knows: 'I like [X] anime show' to find the DVD as it is for someone who knows 'I like [X] anime show which is distirbuted by Funimation'.

Quote:
The ad-streams aren't generating a tremendous amount of revenue directly, because they need a substantially higher viewership to do so. But there's no way to get to a higher level of viewership other than growing from an existing foundation.


Agreed. It's a bit concerning though. From what I'm hearing, the increase in viewership would need to be massive to start generating significant money. I have to conclude that we're a very long way off from that then and it remains to be seen if we will ever actually see it reach that point.

Quote:
And in the meanwhile, even if they do not generate substantial revenues directly, since they are self-funding and will generate some net sales relative to bootleg streaming sites, why wouldn't you? Its not that often you have a way to advertise that covers its own expenses by carrying someone else's advertising.


I'm not disputing that. I just think it's a tad silly how some people scream bloody murder over piracy and then turn around and claim that legal streaming is just good advertising. Also I think it's important to keep in mind that while streaming may be helpful, it is a long way from replacing or even significantly supplementing DVD sales.
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LordByronius
ANN Columnist


Joined: 06 Feb 2002
Posts: 861
Location: Philippe for America! He is five.
PostPosted: Sun Jul 18, 2010 11:05 pm Reply with quote
Xanas wrote:
"Anime Economics" as it stands now is tied directly to government interventions in the market and would be far better off in a free market system.


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Vulcannis



Joined: 21 Jan 2008
Posts: 41
PostPosted: Mon Jul 19, 2010 12:38 am Reply with quote
As fun as it is to laugh to Randians, I just want to point out that you don't have to be a free market supremacist to be in favour of killing copyright. I'm a slightly left-of-centre Canadian, which makes me, what, almost a communist in American political terms? And despite relying on copyright for my current income I'd much rather trade it for something that works better. Of course, I also know this isn't the thread to explore such topics. Smile
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Saturn



Joined: 08 Aug 2002
Posts: 513
PostPosted: Mon Jul 19, 2010 1:23 am Reply with quote
Vulcannis wrote:
As fun as it is to laugh to Randians, I just want to point out that you don't have to be a free market supremacist to be in favour of killing copyright. I'm a slightly left-of-centre Canadian, which makes me, what, almost a communist in American political terms? And despite relying on copyright for my current income I'd much rather trade it for something that works better. Of course, I also know this isn't the thread to explore such topics. Smile


wooo, insulting Americans = automatic win! Or, you know, not *shrug*


Anyway. About movies vs. anime.
The movies so far this summer have been disappointing, but I'm loving on several series right now. I was about to complain about how too many movies this summer have been derivative or sequels and whatnot, but then I realized that my favourite shows currently on air are Kuroshitsuji II and Hetalia: World Series, so that renders my argument moot.
I think the logical conclusion, then, is that the movies this summer are entirely lacking in combat butlers and hilarious racism. But they always seem to be, don't they?

Of course, I've yet to see Inception, so my opinion might change Cool
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ikillchicken



Joined: 12 Feb 2007
Posts: 7272
Location: Vancouver
PostPosted: Mon Jul 19, 2010 2:30 am Reply with quote
Saturn wrote:
Vulcannis wrote:
As fun as it is to laugh to Randians, I just want to point out that you don't have to be a free market supremacist to be in favour of killing copyright. I'm a slightly left-of-centre Canadian, which makes me, what, almost a communist in American political terms? And despite relying on copyright for my current income I'd much rather trade it for something that works better. Of course, I also know this isn't the thread to explore such topics. Smile


wooo, insulting Americans = automatic win! Or, you know, not *shrug*


Yeah...things that are also not 'win': Getting all ridiculously and needlessly 'insulted' over nothing.
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Saturn



Joined: 08 Aug 2002
Posts: 513
PostPosted: Mon Jul 19, 2010 2:33 am Reply with quote
ikillchicken wrote:
Saturn wrote:
Vulcannis wrote:
As fun as it is to laugh to Randians, I just want to point out that you don't have to be a free market supremacist to be in favour of killing copyright. I'm a slightly left-of-centre Canadian, which makes me, what, almost a communist in American political terms? And despite relying on copyright for my current income I'd much rather trade it for something that works better. Of course, I also know this isn't the thread to explore such topics. Smile


wooo, insulting Americans = automatic win! Or, you know, not *shrug*


Yeah...things that are also not 'win': Getting all ridiculously and needlessly 'insulted' over nothing.


lol if I gave you the impression that I was "ridiculously insulted", then I do apologize.
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ikillchicken



Joined: 12 Feb 2007
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Location: Vancouver
PostPosted: Mon Jul 19, 2010 3:16 am Reply with quote
Well, you said he was insulting Americans...which was pretty ridiculous so yeah.
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Xanas



Joined: 27 Aug 2007
Posts: 2058
PostPosted: Mon Jul 19, 2010 6:37 am Reply with quote
LordByronius wrote:
rand picture


It's funny you mention Rand, LordByronius, as most objectivists are strong supporters of IP because Rand herself was a huge believer in it.

I mostly like Rand for the same reasons I mostly like Milton Friedman but I prefer Mises, Rothbard, etc.
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agila61



Joined: 22 Feb 2009
Posts: 3213
Location: NE Ohio
PostPosted: Tue Jul 20, 2010 12:42 am Reply with quote
ikillchicken wrote:
agila61 wrote:
ikillchicken wrote:
Still not sure what you're driving at. You don't need to know who you can buy it from. You just need to search on amazon or elsewhere online or look around in certain stores, neither of which requires you to know who distributes it. You just need the name of the series.


Yes, same as the supermarket could just leave the candy in the candy aisle and the magazines in the magazine aisle, but for some reason also sell them at the check-out line. The more steps between impulse and purchase, the lower the fraction of impulses are converted into sales.


No, that analogy makes no sense whatsoever. It would if you needed to know about Funimation to buy the anime. If the process was: learn about an anime, use that info to find the distributor, use that info to find out where you can buy it, then you would be cutting out a step. But it isn't. It's just as easy for someone who knows: 'I like [X] anime show' to find the DVD as it is for someone who knows 'I like [X] anime show which is distirbuted by Funimation'.


You are ignoring the fact that when the stream finished there are a set of actions ... watch the next episode, buy the series, watch a similar show, and etc.

It is not as easy for someone to look up the show at Rightstuf or Amazon and buy it as it is for them to click that "buy this series link" embedded into the end of the legit stream.

And that is something a legit streaming host can provide to Funimation that no leech streaming site supported by illegal uploads by site volunteers has any interest in matching: they say "buy the show when its licensed", but they don't actually promote what they say by linking people directly to places to obtain legal copies.

You don't have to know Funimation's name to search for a series on Hulu, watch an episode, and then get presented with a "buy this series" option. Of course, what the Funimation site does, once you get there, it to market the range of anime titles that Funimation sells, but that is only one dimension of their streaming strategy: the majority of their streams are viewed via YouTube and Hulu.
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ikillchicken



Joined: 12 Feb 2007
Posts: 7272
Location: Vancouver
PostPosted: Tue Jul 20, 2010 1:45 am Reply with quote
agila61 wrote:
You are ignoring the fact that when the stream finished there are a set of actions ... watch the next episode, buy the series, watch a similar show, and etc.

It is not as easy for someone to look up the show at Rightstuf or Amazon and buy it as it is for them to click that "buy this series link" embedded into the end of the legit stream.


No. It is you who is ignoring the fact that I have said, quite explicitly that I agree that direct advertisements for the DVD are helpful. I am NOT DISPUTING THIS. You're apparently so eager to argue your point of view that you've not bothered to actually grasp what is being discussed. What I was originally asking was why Brian felt that merely by pasting the Funimation logo all over a stream makes a difference. That seems meaningless to me and that would seem to be all a number of streams are doing as direct ads for the DVD are only applicable in some situations.
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agila61



Joined: 22 Feb 2009
Posts: 3213
Location: NE Ohio
PostPosted: Tue Jul 20, 2010 11:05 am Reply with quote
ikillchicken wrote:
What I was originally asking was why Brian felt that merely by pasting the Funimation logo all over a stream makes a difference. That seems meaningless to me and that would seem to be all a number of streams are doing as direct ads for the DVD are only applicable in some situations.


Brian can answer to why he felt that.

I disagreed that it was limited to that:
agila61 wrote:
Xanas wrote:
Quote:
Of course, the problem is you can't necessarily purchase it right then and there, which limits the benefit for those shows streamed before being available for purchase.


If its a licensed series, and you have a credit card with adequate balance, you can definitely click the "buy series" link when its done streaming and buy it right then and there.

Can't do that on a leech streaming site.


You seemed to dispute that and argue that there was no difference between the sales promotion that happens on a leach streaming site and the sales promotion that happens on a legit streaming site.

But, first, the most successful leech streaming sites deliberately refrain from doing sales promotion, since it leads people into legit anime social networks which do not link back into the bootleg anime social networks.

And second, even if leech streaming sites that actively promoted legit sales were not selected against, there is still a limit on how actively they can promote sales, since the license holders cannot work directly with them, in the way that legit streaming sites can.

If you agree that there is a massive difference in the way that legit streaming can be used to promote sales but are more interesting in debating a minor point on whether Brian expressed that difference in the most correct or complete way, that would seem like pointless quibbling.
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ikillchicken



Joined: 12 Feb 2007
Posts: 7272
Location: Vancouver
PostPosted: Tue Jul 20, 2010 5:12 pm Reply with quote
agila61 wrote:
ikillchicken wrote:
What I was originally asking was why Brian felt that merely by pasting the Funimation logo all over a stream makes a difference. That seems meaningless to me and that would seem to be all a number of streams are doing as direct ads for the DVD are only applicable in some situations.


Brian can answer to why he felt that.


Then why don't you stop beating this dead horse already?

Quote:
You seemed to dispute that and argue that there was no difference between the sales promotion that happens on a leach streaming site and the sales promotion that happens on a legit streaming site.


NO. I. DID. NOT. I don't know how I can say that any more clearly.

Quote:
If you agree that there is a massive difference in the way that legit streaming can be used to promote sales...


Here's the problem we seem to be encountering: You are painting this as a completely black and white issue. According to you I either must be claiming that legal and illegal streaming are identical or I must agree that they are massively different and therefore I am just quibbling over nothing. This is a completely ridiculous and self serving way to look at it. Obviously there is an entire middle ground in between there. I've made it explicitly clear that what I am saying falls into that middle ground.
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