How does anime generate revenue for their respective producers? It seems like right now they can't be very profitable. No one buys DVDs anymore especially people who are in the anime community ( because we are usually much younger than the general populace). No major networks will air anime for obvious reasons. The only place they can do well is streaming services, and I don't really know how profitable that kind of thing is. I just can't figure out how they can make money.
My main concern is that it simply isn't profitable, and if it's not profitable then no new good content will be created.
I'm coming at this from a western point of view. So, I'm sure it might be different in Japan, but that market is much smaller than the U.S. and other countries.
Upfront payment + royalties from related sales over a certain period.
Reputation is an asset, so being able to provide a record of your contract with a reputable company has its own advantages.
The Western market is largely irrelevant. Streaming sites like Crunchyroll and Funi pay a flat-rate licensing cost to the respective anime distribution companies, but this isn't where most studios would get their revenue from.
Anime fans in Japan do buy BDs. Those BDs tend to be very expensive so they don't get huge sales numbers, but those sales are important. And large TV networks in Japan do air anime; it's just usually late at night (traditionally from just before midnight through the early hours of the morning). And then you have merchandise sales and the like. If Western fans want to support the industry, they are better off buying figs from Japan than a CR subscription.
And in some cases, it doesn't really matter if an anime is profitable because it merely serves as a means to advertise the source material.
It's like a contract work. Publishers of OPM manga paid Madhouse to do an anime for the purpose of advertising the series & increasing manga volume sales. They were already paid & Madhouse had a small budget to work with. Only reason OPM looked good despite this was thanks to the passionate animators involved.
While I understand where you guys are coming from, and I'm sure they do well enough to stay solvent (for now), it has to be increasingly hard to make a buck in the industry.
I'm pretty blasted. I looked up some numbers and I think I saw that the anime industry is only doing 500 mil annually. So take away shit like pokemon and what are you left with?
>it has to be increasingly hard to make a buck in the industry.
Then I guess the question is why we're season progressively more anime aired every year and every season. It certainly doesn't seem as if studios are scaling back their production at the moment.
Not OP, but I guess that is also the reason why so few original anime get made?
If your anime is an original story then there's no manga or LN to promote, so you're not getting any financial support from publishers. That makes it a bigger financial risk and the BD sales are actually really important in cases like that. Is that the reason?
> why we're seeing progressively more anime aired every year and every season.
I actually haven't really noticed that.
After some quick google searching apparently it's not only me who is concerned.
>So take away shit like pokemon and what are you left with?
I'm pretty sure Pokemon doesn't really count on the anime finance because it's a game before everything. The anime is here only to ad for the games. Even the anime BD prices are substantially lower than for other anime.
>After some quick google searching apparently it's not only me who is concerned.
But are those informed opinions you're reading. That is, is there some understanding of how the cashflow in the industry is looking?
The western market isn't the target audience, it isn't relied on in the fucking least by the japanese anime industry. The japanese anime industry mainly rely on otakus and LN sales, which it seems to be doing perfectly alright on
Original anime are still made because promoting sales of source material isn't the only way to profit from anime. For example, shows like Love Live make a killing from music and other merchandise. Mecha shows get to sell toys. Some originals are done as multi-medium projects, with coordinated releases of anime, manga and video games. There are all sorts of ways to make money, and any combination of these could be enough to convince producers to invest the money.
This season alone we have Active Raid, Bubuki Buranki, Komugi-chan, Sekkou Boys, Shoujo-tachi wa Kouya wo Mezasu, Sushi Police, and Tabi Machi Late Show. Then there are other shows that have "source material" but are practically original, such as PSO2, or the mobage shows like Divine Gate and Luck and Logic.
They make shitty resin sculptures that cost 3 cents to produce and sell them for 70 dollars. PBS donation prizes are less of a ripoff.