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How Much Does It Cost to License Anime Series?


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Lord Geo



Joined: 18 Sep 2005
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PostPosted: Mon Aug 02, 2021 11:17 am Reply with quote
An outstanding article, and one that I hope will be referenced & relied on for a good while. A perfect mix of telling fans stuff that we obvious don't know all about, but not so much that it could get anyone into trouble for revealing too much information that would otherwise be trade secrets.

However, one line really caught my interest:
Quote:
If the show is only worth a couple hundred dollars per episode, some licensors won't consider it worth the effort to bother with the sale


OK, if Chris brought this up then that has to mean that it's actually happened at least once or twice in the past. Now I REALLY want to know what anime were actually considered "too cheap to license out" by Japanese licensors.
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Angel M Cazares



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PostPosted: Mon Aug 02, 2021 11:31 am Reply with quote
Thank you for writing this article.
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Greed1914



Joined: 28 Oct 2007
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PostPosted: Mon Aug 02, 2021 11:45 am Reply with quote
This is a worthwhile article that I hope people read. I'm sure that at least some of why something like AnimeTube can attract backers is that many people are unaware of how much anime can cost. $100,000 in crowd funding seems great until you see that it might get you one episode of a popular or new series.

Those costs make it pretty clear why even the big players in the market wound up with even bigger companies backing them. And why the smaller ones have focused heavily on getting good at catering to a niche or cooperating with the bigger companies to serve a need they can't currently meet.
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isahackjob



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PostPosted: Mon Aug 02, 2021 11:51 am Reply with quote
How much for MD Geist 1&2? We can make this happen.
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Tempest
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PostPosted: Mon Aug 02, 2021 12:32 pm Reply with quote
Quote:
If the show is only worth a couple hundred dollars per episode, some licensors won't consider it worth the effort to bother with the sale


Lord Geo wrote:
OK, if Chris brought this up then that has to mean that it's actually happened at least once or twice in the past.


Once or twice is a massive understatement.
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Marzan



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PostPosted: Mon Aug 02, 2021 12:39 pm Reply with quote
Thank you for a very interesting and informative article.

So a top level series first run can cost around 5,6 million for a season? That’s real money. No wonder the small guys cannot compete
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Shiroi Hane
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PostPosted: Mon Aug 02, 2021 12:41 pm Reply with quote
> Imagine paying for a series that is supposed to be a little risqué, but receiving a show that ends up being borderline pornographic?

That would never happen surely?
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kpossibles
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PostPosted: Mon Aug 02, 2021 12:51 pm Reply with quote
Glad that there's an updated article on this topic! The last one that I could find was 9 years old and so much has changed since then.

Here's previous ANN articles on this topic:

All About Licensing: Part I (2012): animenewsnetwork.com/feature/2012-06-11

ADV Court Documents Reveal Amounts Paid for 29 Anime Titles (2012): animenewsnetwork.com/news/2012-01-30/adv-court-documents-reveal-amounts-paid-for-29-anime-titles
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Erufailon4



Joined: 18 Jun 2019
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PostPosted: Mon Aug 02, 2021 12:51 pm Reply with quote
Quote:
These days, most licenses from Japan are for “physical media + streaming.” Some companies are only active in one business area: for instance, Crunchyroll is a streaming service, so they often sublicense physical media rights to another company such as Sentai Filmworks. Likewise, Viz and Discotek are physical media companies, so they often sublicense streaming rights to other companies.


This is interesting. Am I right to assume that Netflix only buys streaming rights? (I looked up packaging scans of the American blu-ray of Violet Evergarden and it has ABC Animation's logo in the spine instead of Netflix's.)

Quote:
A more typical show, or what the industry calls a “B/B+,” will have an MG of between $70,000 and $150,000 if it's a new (first run) show.


So a typical 1-cour anime can cost $840,000 to $1.9 million in total to simulcast. That's a lot of money to pay for one isekai.

Quote:
Imagine paying for a series that is supposed to be a little risqué, but receiving a show that ends up being borderline pornographic?


Funimation: *cold sweat*
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Dayraven



Joined: 21 Jul 2021
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PostPosted: Mon Aug 02, 2021 12:53 pm Reply with quote
Quote:
If the show is only worth a couple hundred dollars per episode, some licensors won't consider it worth the effort to bother with the sale

I guess at some point, if the income’s small enough, the licensor would have to consider whether the work on their end in administering the deal and providing materials is actually worthwhile.
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wjbraden



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PostPosted: Mon Aug 02, 2021 12:57 pm Reply with quote
Pretty disgusting that so much money flows in just from a simple foreign licensing agreement that in some cases completely covers the entire cost of production, and yet animators struggle to survive. I think it's pretty clear the industry's setting itself up for another bubble burst, straight down to the insane pricing we became privy to through the ADV/Sojitz affair.

One question I have is, how do dubs factor into this model, does it make more financial sense for licensors to get their ROI back if they produce one or some such thing? I ask because we're for sure seeing greater dub output in the last few years than ever before, and for titles that would never have seen a dub previously.

Oh also, though Adult Swim is the only one in the anime TV biz these days, is there any idea how much TV rights cost/what the procedure is for landing a deal on Toonami?
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Top Gun



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PostPosted: Mon Aug 02, 2021 12:59 pm Reply with quote
isahackjob wrote:
How much for MD Geist 1&2? We can make this happen.

I will pay you double whatever it's worth to make it not happen. Razz
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Tempest
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PostPosted: Mon Aug 02, 2021 1:19 pm Reply with quote
Erufailon4 wrote:
This is interesting. Am I right to assume that Netflix only buys streaming rights? (I looked up packaging scans of the American blu-ray of Violet Evergarden and it has ABC Animation's logo in the spine instead of Netflix's.)


Netflix isn't particularly interested in physical media rights. I've heard of them picking them up and sublicensing them, but I've also heard of them passing on them, but requiring a holdback. However when Netlix "owns*" the show outright (as in, they paid the production studio to make it for them), they obviously also "own" the physical media rights and will license them out themselves (in this case Netflix is the licensor).

*No one owns content. Copyright gives the copyright holder a limited, exclusive right to exploit the content. Copyright is not ownership.

wjbraden wrote:
I think it's pretty clear the industry's setting itself up for another bubble burst, straight down to the insane pricing we became privy to through the ADV/Sojitz affair.


I don't think we're in a bubble. Yes, costs have increased massively, but this is because revenue from streaming platforms is way up. Increased production costs and competition do play a part in this, but increased revenue is the primary driver. Licensees are offering MGs that they calculate based on expected revenues from the shows.

The early 2000s bubble was entirely speculative and competition based, and not related to real-world performance.

Quote:
Pretty disgusting that so much money flows in just from a simple foreign licensing agreement that in some cases completely covers the entire cost of production, and yet animators struggle to survive.
I am as equally disturbed by the low wages being paid to animators in Japan, but keep in mind that "full production costs" is only for the A+ shows. Most shows are not getting that much from overseas licensing.

Something needs to be done about animator pay.

-t
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relentlessflame



Joined: 14 Dec 2004
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PostPosted: Mon Aug 02, 2021 1:28 pm Reply with quote
Regarding “originals,” I noticed in recent years that Crunchyroll has started labeling several shows as “originals” even though they otherwise have every appearance of being a normal Japanese Production Committee show (where CR may or may not be a member). I took this as sort of competitive branding against Netflix, which might reflect their exclusive streaming rights rather than “truly” being an original production. Of course, without knowing all the details, who knows…
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Tempest
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PostPosted: Mon Aug 02, 2021 1:36 pm Reply with quote
relentlessflame wrote:
Regarding “originals,” I noticed in recent years that Crunchyroll has started labeling several shows as “originals” even though they otherwise have every appearance of being a normal Japanese Production Committee show (where CR may or may not be a member). I took this as sort of competitive branding against Netflix, which might reflect their exclusive streaming rights rather than “truly” being an original production. Of course, without knowing all the details, who knows…


Netflix does this too. Not every Netflix "Original" is the same arrangement.
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