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NEWS: 11 Arrested in Japan for Uploading via Share Program

but if the actual show offers no value whatsoever then how much benefit is there really in an official release?

This is my point exactly. There is no point in selling DVDs if nobody wants to buy them. So stop selling them, use an alternative, far cheaper, distribution method, and sell at a much lower price, one that people are actually willing to pay, or no price at all. Rely on physical goods to make money (e.g. figures, toys, artbooks, etc).

So stop selling them, use an alternative, far cheaper, distribution method, and sell at a much lower price, one that people are actually willing to pay, or no price at all.

I would not expect to pay $40 for 3 episodes of Naruto because they will make more money selling a box of 13 eps for $40 or $50

And they would make even more by selling boxes with even more episodes for even less. And even MORE by selling downloadable burnable discs for vastly less. Imaging if each burnable DVD, with 3 episodes on it, cost $3. That's essentially $3 pure profit, with a massive increase in the number of purchasers.

It's like people only do things because they get paid, and that's just really sad.

And they would make even more by selling boxes with even more episodes for even less. And even MORE by selling downloadable burnable discs for vastly less. Imaging if each burnable DVD, with 3 episodes on it, cost $3. That's essentially $3 pure profit, with a massive increase in the number of purchasers.

Rely on physical goods to make money (e.g. figures, toys, artbooks, etc).

You're conflating patents (a system of temporary monopoly on NOVEL physical devices to promote continued research) with copyright. Stop that.

And they would make even more by selling boxes with even more episodes for even less. And even MORE by selling downloadable burnable discs for vastly less. Imaging if each burnable DVD, with 3 episodes on it, cost $3. That's essentially $3 pure profit, with a massive increase in the number of purchasers.

Get real man. A tiny fraction of the most hardcore fans want that kind of thing.

The vast vast majority just wants to watch the shows.

It's not even close to the size necessary to actually make up the costs of creating anime itself.

I doubt it would work for even the most mainstream stuff like Naruto let alone semi-obscure stuff.

Even people who buy this stuff are only going to buy it for stuff they really like. If your response to a title is 'eh, it was okay' you don't want an artbook and a bunch of figures.

The thing is though, the bulk of the stuff you see it probably going to be mediocre.

So basically, even with the tiny little market for merchandise you're not going to generate any revenue from all but the best shows.

Bottom line is, the numbers aren't there.

If this doesn't seem like a problem to you then you're not really living in the real world.

You base your whole thought process on what you want. "Hmm. I don't want to pay for anime. I don't mind paying for figures though...Hey! The industry should just give me anime for free and make money off figures! Yeah!" Except while that may be the reality of what you demand, it's not reality in terms of what the industry can supply and still profit.

Get real man. A tiny fraction of the most hardcore fans want that kind of thing.

The vast vast majority just wants to watch the shows. It's not even close to the size necessary to actually make up the costs of creating anime itself. I doubt it would work for even the most mainstream stuff like Naruto let alone semi-obscure stuff. That's just the beginning of the problem as well. Even people who buy this stuff are only going to buy it for stuff they really like. If your response to a title is 'eh, it was okay' you don't want an artbook and a bunch of figures.

Bottom line is, the numbers aren't there.

This is fairly observable to even an outsider actually. Clearly the industry has been selling merchandise for ages. So when you say just sell merchandise and not the shows them self you're actually going to see the exact same situation but without the small remaining revenue from DVDs. So basically, the industry will be making less money than they are now.

If this doesn't seem like a problem to you then you're not really living in the real world. Honestly I think that's the problem here. You base your whole thought process on what you want. "Hmm. I don't want to pay for anime. I don't mind paying for figures though...Hey! The industry should just give me anime for free and make money off figures! Yeah!"

Except while that may be the reality of what you demand, it's not reality in terms of what the industry can supply and still profit.

It costs what-half a million or so to make a show, but $1 per ep is pure profit?
To whom? Some fan who posted a copy on the net?
If the studio pays $1,000,000 for the show, spends $50,000(conservative I know) advertising it, $1,000 (since you are of the opinion it costs nothing to make dvds) to manufacture the dvds, with an estimated 500,000 interested audience, they have to sell for at least $2 per set (& I really believe that's dreadfully conservative. I'd figure at least $100,000 advertising & $10,000 manufacturing--& maybe double or triple on the cost to make the title Look at American shows where they pay the fricken star 5 arms & 2 legs per ep).
Then the store selling it has to make their money-employee costs, rent, etc.

This "tiny little market" accounts for 90% of anime revenue.

I'll to resort to fullcaps again for comedic value: DISTRIBUTE DIGITALLY. DISTRIBUTION COST EFFECTIVELY NILL. NO RETAIL MARKUP. PROFIT INCREASE WITH PRICE DECREASE.

Can you or anyone else who states or implies that DVDs "aren't all that essential to the anime market" explain to me why you think that MOST anime series are supported by merchandise sales?

Can you tell me where to buy a Ghost Hound plushie?

The "other merchandise makes way more money than DVDs" thing is extraordinarily misleading.

licenses

site upkeep

translations

dubs

advertising

are low enough in your reality that companies would be able to recoup the costs with... $3 DVD-Rs?

And, as I asked earlier, "you give no reason to believe that people would prefer buying the same (or lower quality!) presentation for something they could get for free with that kind of model."