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Netflix - Good or bad for the industry?


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Kyon27



Joined: 05 Mar 2008
Posts: 95
Location: Lake Stevens, WA
PostPosted: Mon Nov 03, 2008 12:04 pm Reply with quote
I'm curious as to what everyone's opinion is as to whether Netflix is helpful or harmful to the anime industry. I regularly use Netflix to watch anime because there's no way I can afford to go out and pay $30 per disc of a series I've never seen in the hope that I will like it. Instead, I use Netflix to sort out the crap, if you will, and I generally purchase the titles I'm particularly fond of. That way I'm still supporting the industry as a whole because Netflix pays for the DVDs they rent out (not as much as if everyone was buying them, but it's not insignificant and it beats fansubs). And I'm supporting more specifically the type of titles I enjoy by purchasing them in the hopes that my money will go toward the development of more anime that is in a similar vein to those I enjoy.

I would love to hear the opinions of others on this issue, pro and con, in the event there's something I haven't considered.
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Zewerr



Joined: 09 Jun 2006
Posts: 539
Location: Tacoma, WA
PostPosted: Mon Nov 03, 2008 1:36 pm Reply with quote
I'm the same as you. There's no way I would own as many animes as I do, if I didn't watch them already on Netflix. I don't like purchasing something, before even knowing how good it is. So in many ways, it is really good for the industry. But there's also a flip side. I know some people who burn copies of pretty much every DVD they get from NF. So I guess it all depends on who your dealing with.
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walw6pK4Alo



Joined: 12 Mar 2008
Posts: 9322
PostPosted: Mon Nov 03, 2008 1:40 pm Reply with quote
Well, it's a lot more regulated and slower than file-sharing, and the anime companies don't get a cut for each view, but I guess the difference is that the initial DVD had to be purchased. Either way, it's here, it's absolutely perfectly legit and legal, and there's nothing you or the anime industry can complain about. I just don't use it because it takes too long and they regularly don't have the right discs or lose them or so on.
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Zalis116
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Joined: 31 Mar 2005
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Location: Kazune City
PostPosted: Mon Nov 03, 2008 4:54 pm Reply with quote
If you've ever been to Greg Ayres' anti-downloading convention panel or seen it on Youtube, he declares Netflix and other rental services to be good. So if he says it's not bad for the industry, I'm willing to believe it. Just like DVDs lent between individuals (which Ayres also does not condemn), it's anime viewing that is based on a legitimate purchase, except that rental DVDs cost something like 3-4 times a normal retail DVD upfront. The logic is that it's better for the industry to have 1 purchase and a few dozen or hundred views, rather than 1 or 0 purchases and [tens of] thousands of views derived from illegally distributed anime.
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Kyon27



Joined: 05 Mar 2008
Posts: 95
Location: Lake Stevens, WA
PostPosted: Mon Nov 03, 2008 4:55 pm Reply with quote
While it's true the anime companies don't get paid for every view, it's my understanding that rental companies like Netflix pay a substantial amount for their rental DVDs. After all, it's not as though they can just waltz down to Target and buy their DVDs for $10, right? That's my understanding of the process anyway.
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Top Gun



Joined: 28 Sep 2007
Posts: 4893
PostPosted: Mon Nov 03, 2008 8:14 pm Reply with quote
I'd imagine they would have to pay substantially more for rental copies. In any case, I see Netflix as nothing but a huge benefit; it allows those of us who don't buy DVDs sight-unseen to legally preview what we might consider purchasing down the road. Like Zalis said, the anime companies wind up making at least some money out of the deal, as opposed to the myriad of illegal sources that don't net them a dime. I don't have a membership yet, but as soon as I get a steady source of income, I'm highly considering doing so.
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Keonyn
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Joined: 25 May 2005
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Location: Coon Rapids, MN
PostPosted: Mon Nov 03, 2008 8:31 pm Reply with quote
Kyon27 wrote:
While it's true the anime companies don't get paid for every view, it's my understanding that rental companies like Netflix pay a substantial amount for their rental DVDs. After all, it's not as though they can just waltz down to Target and buy their DVDs for $10, right? That's my understanding of the process anyway.


Correct. They're not just buying the DVDs, but also the rights to show and profit from the usage of those DVDs. So yeah, they're paying a lot more than the MSRP for those discs. Sure, the licenser isn't making as much off these, but there's also those that would then buy the actual disc having seen it when they rented it. Then there are those who just wouldn't have bought anyways, who are at least viewing it legally and showing some level of support towards the industry through the rental.
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Redbeard 101
Oscar the Grouch
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Joined: 14 Aug 2006
Posts: 16979
PostPosted: Tue Nov 04, 2008 3:50 am Reply with quote
Keonyn wrote:
Kyon27 wrote:
While it's true the anime companies don't get paid for every view, it's my understanding that rental companies like Netflix pay a substantial amount for their rental DVDs. After all, it's not as though they can just waltz down to Target and buy their DVDs for $10, right? That's my understanding of the process anyway.


Correct. They're not just buying the DVDs, but also the rights to show and profit from the usage of those DVDs. So yeah, they're paying a lot more than the MSRP for those discs. Sure, the licenser isn't making as much off these, but there's also those that would then buy the actual disc having seen it when they rented it. Then there are those who just wouldn't have bought anyways, who are at least viewing it legally and showing some level of support towards the industry through the rental.


It is true it's not as much money for the companies as everyone buying the discs but in this download laden environment now I'm sure they're happy for all proceeds they can get at all. I myself use Netflix all the time and have the 4 discs at a time plan. I too am in the boat of not being able to buy all I want. What better way to see all the shows I want while still legally supporting the industry? Plus through the rentals you can find out what series you truly like so the amount of bad buys you make should be greatly diminished. That way you spend the money you can spend on those series or movie you like best. I honestly cannot see how Netflix could be bad for industry at all. Plus there are other rental sites like AnimeLane or RentAnime as well. I stick with Netflix because their shipping is the fasted of all 3 that I know of.
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manuelRN



Joined: 26 Sep 2007
Posts: 35
PostPosted: Tue Nov 04, 2008 5:16 am Reply with quote
I agree Netflix and other rental services are a plus for the industry. Consider Netflix's maintenance of anime titles. Lost, broken, and unplayable DVDs must be replaced to maintain their selection. Netflix has sent me 32 broken anime DVDs during my subscription. I imagine another 32 broke on their way back to their warehouse. I suspect, Netflix spent $800 ($25/dvd) replacing the 32 broken DVDs I reported. With maintenance issues like that Netflix has to be the industry's best customer.
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Vortextk



Joined: 10 Jan 2006
Posts: 892
Location: Orlando, Fl
PostPosted: Tue Nov 04, 2008 11:39 am Reply with quote
If netflix wasn't working for anime, then blockbuster wouldn't have been working for other companies all this while which is obviously false since it's so old now, renting is a net positive impact on these companies.

I don't buy or pay for things to "support" whatever I like(in this case, anime). I feel if everything is being done right, the companies should be able to do fine with the right products/pricing/advertising. Anime is not doing terribly well in the US now and although I love dubs, is not my problem.
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jel123



Joined: 28 Nov 2005
Posts: 108
PostPosted: Tue Nov 04, 2008 9:24 pm Reply with quote
Zalis116 wrote:
...except that rental DVDs cost something like 3-4 times a normal retail DVD upfront. The logic is that it's better for the industry to have 1 purchase and a few dozen or hundred views, rather than 1 or 0 purchases and [tens of] thousands of views derived from illegally distributed anime.
Kyon27 wrote:
After all, it's not as though they can just waltz down to Target and buy their DVDs for $10, right? That's my understanding of the process anyway.

I have seen this quoted before and never questioned it because it kind of makes sense. But according to this Google Answers post Netflix actually pays the studio every time a disk is rented. That might explain why they only charge $20 per disk that you (not the post office) lost or damaged rather than 3-4x retail. All the disks I've seen look like the same thing that you buy at retail - no "not for sale/rental only" markings. They also sell off their old disks for only $5.99.

So do they pay more up front AND pay per rental or maybe it's handled differently for anime?

Anyway, I think that Netflix and rental in general is a good thing for anime. There are a few series I probably would have never considered buying if it hadn't been for seeing it as a rental (or watch instantly) first.
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Xanas



Joined: 27 Aug 2007
Posts: 2058
PostPosted: Wed Nov 05, 2008 8:39 am Reply with quote
If I'm spending money on rental it's money I'm not spending on purchasing dvds. Only if I'm not purchasing dvds in the first place do I see how that makes a bonus to the industry, or if I somehow rent and spend the same amount on dvd purchases. Or if rentals somehow provide more to the industry than the actual dvd purchases do themselves.

Let me say, based on the percentage I've spent on anime DVDs that if I were to buy netflix it'd be 1 less dvd per month I'd be buying. So I don't use netflix nor do I desire to. If someone can show that netflix might potentially be better for the industry than me buying 1 more dvd, then please let me know the facts to back that up.
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asimpson2006



Joined: 13 May 2008
Posts: 3151
Location: USA
PostPosted: Wed Nov 05, 2008 9:42 am Reply with quote
I really only use Netflix to watch movies so that I don't end up buying a whole bunch and not like most of them and cost me a lot of money. I also use to it preview an anime series that I may have interesting in buying in the near future.
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doctordoom85



Joined: 12 Jun 2008
Posts: 2094
PostPosted: Wed Nov 05, 2008 12:03 pm Reply with quote
Xanas wrote:
If I'm spending money on rental it's money I'm not spending on purchasing dvds. Only if I'm not purchasing dvds in the first place do I see how that makes a bonus to the industry, or if I somehow rent and spend the same amount on dvd purchases. Or if rentals somehow provide more to the industry than the actual dvd purchases do themselves.

Let me say, based on the percentage I've spent on anime DVDs that if I were to buy netflix it'd be 1 less dvd per month I'd be buying. So I don't use netflix nor do I desire to. If someone can show that netflix might potentially be better for the industry than me buying 1 more dvd, then please let me know the facts to back that up.


I don't think anyone was saying rental services contribute MORE than buying the DVDs. However, for people who don't buy until they've seen it, or for people who would never buy but would be willing to rent, it's definitely a plus for the industry.

Besides, as someone else said, Greg Aryes approves, and if he's got no problem with it, that's good enough for me.
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Top Gun



Joined: 28 Sep 2007
Posts: 4893
PostPosted: Wed Nov 05, 2008 3:57 pm Reply with quote
Exactly. Netflix isn't a replacement for people who buy gobs of DVDs already; it's an alternative for those of us who don't buy many DVDs at all or only buy shows/movies we've already seen. I know that, with very few exceptions, I fit into that latter category, so a service like Netflix gives me all sorts of options to pump more money into the industry while keeping everything nice and legal. And if I wind up renting something and decide not to buy it, at least I've earned the distributor whatever money Netflix had to pay them in the first place.

Damn...I'm really talking myself into signing up for this. Very Happy
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