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Interview: Garden of Sinners' Atsuhiro Iwakami and Hikaru Kondo


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omoikane



Joined: 03 Oct 2005
Posts: 494
PostPosted: Fri Feb 25, 2011 2:48 pm Reply with quote
Thanks for the interview. Too bad they couldn't elaborate on the difference between the theatrical screening and what's on BD. I guess it would be closer to what hissatsu mentioned earlier in this thread, but I'm curious now!

As to the dreaded specter of tiered pricing and seeming diverging business methods, I think ultimately people (especially on this forum) have to realize is that English-language land is second fiddle to their domestic market. I mean the 60k yen box set sold 25000+ units in the first week. That's gross 10 million USD if you count it at $400 a pop (which is cheaper than what you could possibly buy it for, in Japan). There's no way they would jeopardize that much money (and good will )for a cheap North American release, just to satisfy a couple thousand fans who just want to pay less? Seems like a no-brainer on their part to not pursuit that, at least at this point.

The packaging is really just a value-added proposition, just another reason to push people into buying it. It isn't particularly expensive to create the extra stuff compared to how much more they may be charging for it, but it is easier justify the cost when they're starting at such a high asking price. Another $30-50 or whatever that goes into the packaging and extras is not going to be problematic when we're plunking down $400+, but I think almost everyone who bought the darned thing would prefer it over than some bare bones packaging.

Of course the problem is that the collector-minded strategy can alienate those who don't want to pay a lot of money. But the math just doesn't work out that way, so I hear from Iwakami when he's talking about the whole mainstream side of the business.
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nightjuan



Joined: 22 Jan 2008
Posts: 1473
PostPosted: Fri Feb 25, 2011 3:32 pm Reply with quote
omoikane wrote:
As to the dreaded specter of tiered pricing and seeming diverging business methods, I think ultimately people (especially on this forum) have to realize is that English-language land is second fiddle to their domestic market. I mean the 60k yen box set sold 25000+ units in the first week. That's gross 10 million USD if you count it at $400 a pop (which is cheaper than what you could possibly buy it for, in Japan). There's no way they would jeopardize that much money (and good will )for a cheap North American release, just to satisfy a couple thousand fans who just want to pay less? Seems like a no-brainer on their part to not pursuit that, at least at this point.


One of the many obvious counterarguments, however, would suggest otherwise. If they have already made over 10 million USD from the Japanese fans, releasing a less expensive foreign version a year or two down the line isn't going to affect those earlier profits at all. Nothing is being jeopardized when that money's already in their pockets and the product's continued sales have most likely slowed down in the meanwhile too. The domestic market has already been served and there's really no turning back.

At that point, any and all fears of reverse importation hurting their profits end up being exaggerated and essentially irrelevant.

Of course, one could always go ahead and try to argue that the entire business model is rotten to begin with and the cracks have started to show even within Japan itself. Nevertheless, that's obviously opening up a larger can of worms involving numerous additional factors and it's not the main point under discussion here. I suppose only the passage of time will be able to change any of this for better.


Last edited by nightjuan on Fri Feb 25, 2011 4:07 pm; edited 1 time in total
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reanimator





PostPosted: Fri Feb 25, 2011 4:07 pm Reply with quote
nightjuan wrote:
omoikane wrote:
As to the dreaded specter of tiered pricing and seeming diverging business methods, I think ultimately people (especially on this forum) have to realize is that English-language land is second fiddle to their domestic market. I mean the 60k yen box set sold 25000+ units in the first week. That's gross 10 million USD if you count it at $400 a pop (which is cheaper than what you could possibly buy it for, in Japan). There's no way they would jeopardize that much money (and good will )for a cheap North American release, just to satisfy a couple thousand fans who just want to pay less? Seems like a no-brainer on their part to not pursuit that, at least at this point.


The obvious counterargument, however, would suggest otherwise. If they've already made over 10 million USD from the Japanese fans, releasing a less expensive foreign version a year or two down the line isn't going to affect those earlier profits at all. Nothing is being jeopardized when that money's already in their pockets and the product's continued sales have most likely slowed down in the meanwhile too.


I think you're getting all communistic about it. So what's wrong with animation company making more money? It pays the people and the production in long run. In entertainment business, dry times without decent production contract forces production company to live off their savings. These guys are not living large with fancy cars and big houses. A fraction from $10 million is not much money when it comes to paying 100 animation professionals for almost 3 years. [/quote]
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reanimator





PostPosted: Fri Feb 25, 2011 4:16 pm Reply with quote
Spotlesseden wrote:
Ranma824 wrote:
I really don't want to get into this too deeply, but it does seem we are headed (or basically there) towards casual v. collectors when it comes to anime. Some just want DVD-only, and some want the whole nine-yards of the Japanese market. (with the latter group finally starting to grow)


alot of people who claim to only want the dvd and don't want anything extra that's on the blu-ray and special edition. They lied, They clearly want those extra. They always find a way to watch those extra illegally.


Yep. I'm sure people didn't overlook this statement.

Hikaru_Kondo wrote:
We released the Tales of Symphonia limited-edition DVD box set with bonus features for a price of about 8,000 yen (about US$97.85). It was different from the standard edition. We included a five-minute bonus feature for the fans who bought it. The feature was uploaded onto [Japanese video streaming site] Nico Nico Douga. We deleted it. But during the short period of time before we stopped it, it was accessed 100,000 times. I was shocked.


Don't want extras? The numbers say the different story.
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nightjuan



Joined: 22 Jan 2008
Posts: 1473
PostPosted: Fri Feb 25, 2011 4:30 pm Reply with quote
reanimator wrote:
I think you're getting all communistic about it. So what's wrong with animation company making more money? It pays the people and the production in long run. In entertainment business, dry times without decent production contract forces production company to live off their savings. These guys are not living large with fancy cars and big houses. A fraction from $10 million is not much money when it comes to paying 100 animation professionals for almost 3 years.

This has nothing to do with "communism" in any recognizable sense of the word, but...that's not the point either.

Nobody is against letting the companies make money. Nobody is against letting the production staff make money. In fact, even under the current business model and pricing scheme it's a proven fact that animators and other staff members are usually paid rather poorly for their services. If anything, they deserve to earn much more. But the way things are going right now, desperately clinging to old practices and resisting any form of change isn't going to make their situation improve at all. That argument is useless.

You appear to be suggesting that there is no possible alternative to the current scenario other than quietly biting the bullet...but that's completely false. Some of the most successful companies in the history of the world have taken risks and acknowledged opportunities that others could not see. The modern entertainment industry as a whole has changed a lot since its inception and will continue to do so, in spite of all the obstacles. The key words here should be trying to innovate and establish a better balance, as opposed to refusing to listen to critics and always defending the status quo.
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GATSU



Joined: 03 Jan 2002
Posts: 15310
PostPosted: Fri Feb 25, 2011 6:02 pm Reply with quote
Mune: The only reason it sold out was they didn't overstock on it.

Ranma: I'm ok with it doing well, because I don't like any company losing money on it in this economy, but I don't really see how it'll significantly add to Aniplex's bottom line, when there are still fewer Americans willing to buy this stuff at that price than Japanese consumers. Plus, copies of it will probably end up on an auction site at least half the price in a year, so anyone really interested will just wait it out, anyway. It's not going to do anything for anyone, really, and Aniplex will end up being more niche than it is in Japan. I don't really see how that's sustainable. Bandai wasn't willing to deal with its own American off-shoot losing money, and it had more Gundam dough to "experiment" on BVUSA. Aniplex is small-time, compared to them, and they think they can be more successful, just because of a smaller over-head?

reanimator:

Quote:
No matter how vocal casual fans get on cheaper versions, does it represent demand from all casual fans? Not likely. How many casual fans in the US or Canada either seen or heard this about the movie? Again, not much.


Well, fine. But then why screen the film in theaters, if not to attract casual fans? They can't have it both ways.

edz:
Quote:
The former actually add something over whatever will end up floating about on the internet, but the latter will invariable be worse.


Well, that's not always the case, as Princess Jellyfish seem to attest. I have yet to see the series myself, but it appears to be a highly-praised property which could more likely find a bigger audience on DVD/Blu-Ray than KnK.

Seif: Well, as much as I would've liked the Goemon PS2 game here, the company did have an uneven sales history, after all. I mean, when over-priced Lunar re-releases are your bread and butter, I'm surprised they didn't close up sooner. And they got a final chance with that Growlanser thing, too.

omoikane:
Quote:
I think ultimately people (especially on this forum) have to realize is that English-language land is second fiddle to their domestic market.


Then why are they even bothering with our market?

Quote:
There's no way they would jeopardize that much money (and good will )for a cheap North American release, just to satisfy a couple thousand fans who just want to pay less?


They could be losing out on hundreds of thousands of fans.

reanimator: I agree they should make more money, but it's pretty obvious that the only way for them to do that at this point is to expand, not contract. And they're acting incredibly phobic about gaijin consumers and the Internets when now's a better time than ever to reach a global audience.
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sonickid101



Joined: 24 Apr 2009
Posts: 132
PostPosted: Fri Feb 25, 2011 6:56 pm Reply with quote
Quote:
We have built a relationship with Japanese fans and would like to [build the same relationship] with U.S. fans.


that's an abusive relationship and I don't want it.

Anyway great interview I really enjoyed it, very informative
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John Casey



Joined: 31 May 2009
Posts: 1853
Location: In My Angry Center
PostPosted: Fri Feb 25, 2011 7:59 pm Reply with quote
Just purchased a bootlegged copy from eBay.

If they don't want my money, I'll give it to somebody who does. Be it a Taiwanese pirate. Regardless, I wanted a physical copy of this series, and when I want it, I get it.

(Oh, by the way... To all those who remembered my rants and arguments about the release... "Told ya so.")
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Zac
ANN Executive Editor


Joined: 05 Jan 2002
Posts: 7912
Location: Anime News Network Technodrome
PostPosted: Fri Feb 25, 2011 8:01 pm Reply with quote
John Casey wrote:
Just purchased a bootlegged copy from eBay.

If they don't want my money, I'll give it to somebody who does. Be it a Taiwanese pirate.


You're aware that buying those bootlegs funds things like sex slavery and drug trafficking, right? Those guys are *actual* gangsters and pirates.
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John Casey



Joined: 31 May 2009
Posts: 1853
Location: In My Angry Center
PostPosted: Fri Feb 25, 2011 8:40 pm Reply with quote
Zac wrote:
John Casey wrote:
Just purchased a bootlegged copy from eBay.

If they don't want my money, I'll give it to somebody who does. Be it a Taiwanese pirate.


You're aware that buying those bootlegs funds things like sex slavery and drug trafficking, right? Those guys are *actual* gangsters and pirates.

When I was in middle school, I used to hang out with guys from MS13. They're not as scary as the History Channel leads you to believe. They're more like bunnies. Fluffy bunnies, that when in the mood, turn into the rabbit from Monty Python.

That said, you've just made something of a very, very sweeping generalization... Kind of like saying...drinking tap water will lead to kidney failure due to the amount of flourine. That's not to say it isn't true, or that it won't happen... But the actuality and amount present is absurdly insignificant. Something tells me that my one, single purchase from an eBay seller whom does NOT trade in strictly bootlegged items alone (the guy just sells random stuff - that one DVD set was like....the only DVD set he had listed) won't sell a woman into prostitution, and something tells me I won't lose any sleep over it.

It isn't string theory: I want a physical copy of Kara no Kyoukai in my collection. Aniplex seems hell bent on preventing me from having one. And I don't happen to have a convenient printing studio next door. So, what else can I do?

I'm not terribly proud of the purchase, cause it sort of ruins my groove: This is the first ever bootleg I'll have, and probably only one - it's the black sheep in my collection. However, will I have the desired physical copy? Will I be able watch it anytime? Will I be able to prevent letting my dad down, and finally get to watching this series like he's been wanting to do with me for a while now? Yes, yes and yes.
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hissatsu01



Joined: 08 May 2006
Posts: 963
Location: NYC
PostPosted: Fri Feb 25, 2011 9:08 pm Reply with quote
That poor dead horse, you'd think it would have had enough already. *sniff*
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skchai1



Joined: 12 Oct 2009
Posts: 33
PostPosted: Fri Feb 25, 2011 10:33 pm Reply with quote
nightjuan wrote:
omoikane wrote:
As to the dreaded specter of tiered pricing and seeming diverging business methods, I think ultimately people (especially on this forum) have to realize is that English-language land is second fiddle to their domestic market. I mean the 60k yen box set sold 25000+ units in the first week. That's gross 10 million USD if you count it at $400 a pop (which is cheaper than what you could possibly buy it for, in Japan). There's no way they would jeopardize that much money (and good will )for a cheap North American release, just to satisfy a couple thousand fans who just want to pay less? Seems like a no-brainer on their part to not pursuit that, at least at this point.


One of the many obvious counterarguments, however, would suggest otherwise. If they have already made over 10 million USD from the Japanese fans, releasing a less expensive foreign version a year or two down the line isn't going to affect those earlier profits at all. Nothing is being jeopardized when that money's already in their pockets and the product's continued sales have most likely slowed down in the meanwhile too. The domestic market has already been served and there's really no turning back.

At that point, any and all fears of reverse importation hurting their profits end up being exaggerated and essentially irrelevant.

Of course, one could always go ahead and try to argue that the entire business model is rotten to begin with and the cracks have started to show even within Japan itself. Nevertheless, that's obviously opening up a larger can of worms involving numerous additional factors and it's not the main point under discussion here. I suppose only the passage of time will be able to change any of this for better.


I don't think there's any contradiction in what you guys are saying, since omoikane was talking about the initial release period only. Also, IMHO, those were the two most coherent arguments made so far on this thread.

In a similar spirit, instead of arguing with extreme words, let's seriously try to work out the numbers. We assume (just for rhetorical purposes, of course) that anime companies are businesses. . . .

No question U.S. sales would go up if cheaper sets were available here simultaneously with the Japanese release. But enough to offset reverse imports?

Assume a scenario where a U.S. BD boxset at $50 street price is released simultaneously with a Japanese versions at 41.6K yen or approx. $500 s.p.. Suppose this causes (conservatively) 30% of the 26K Japanese buyers who purchased the domestic version to instead web-purchase the U.S. version. Assume markup is similar.

Question: What level of increase in U.S. sales would make this a wise business decision? Anyone care to do the math? Change the percentages within reason if you want. How likely is it that such a number would be reached?

US sets get do released a few years down the line if there seems to be enough demand, since, as nightjuan says, this doesn't hurt domestic sales nearly as much. The core audience is too impatient to wait. The time lag does hurt U.S. sales, of course, since the U.S. audience is also impatient and may resort to fansubs instead. Factor that in if you want, and even ignore free legal streaming since that hasn't been available so far in the case of KnK.

If we're claiming that a much cheaper U.S. simul-release would be the smart thing for Aniplex, let's provide some realistic math to show how this would work. . . .

As for reducing the price in Japan, that is indeed a can of worms. But if anyone cares to do take this on with plausible assumptions (including factors such as the current and potential market for different genres, the relationship between price and demand in each market, rental at Tsutaya etc., legal streaming on Niconico etc., illegal downloads and torrents vs. prosecution etc.) to come up with something that resembles an optimal pricing model for anime producers, they are 9000*GARrer than Kenshiro.


Last edited by skchai1 on Fri Feb 25, 2011 10:49 pm; edited 1 time in total
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Buster Blader 126



Joined: 14 May 2005
Posts: 1206
Location: Mississauga, Ontario, Canada
PostPosted: Fri Feb 25, 2011 10:44 pm Reply with quote
sonickid101 wrote:
Quote:
We have built a relationship with Japanese fans and would like to [build the same relationship] with U.S. fans.


that's an abusive relationship and I don't want it.


If that is the only relationship that they want to build with North America, then I don't want it either.

If they continue to have different price structures both available to North Americans - let's hope Durarara!! won't be the last decently-priced release from them - then I will pony up the cash for the certain titles that I desire ASAP upon Japan's release, and not buy those that I'm not as keen on and hope for a future, more economical re-release. if I even have interest in it in the first place.
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nhat



Joined: 21 Jan 2008
Posts: 922
PostPosted: Fri Feb 25, 2011 10:59 pm Reply with quote
John Casey wrote:
Zac wrote:
John Casey wrote:
Just purchased a bootlegged copy from eBay.

If they don't want my money, I'll give it to somebody who does. Be it a Taiwanese pirate.


You're aware that buying those bootlegs funds things like sex slavery and drug trafficking, right? Those guys are *actual* gangsters and pirates.

When I was in middle school, I used to hang out with guys from MS13. They're not as scary as the History Channel leads you to believe. They're more like bunnies. Fluffy bunnies, that when in the mood, turn into the rabbit from Monty Python.

That said, you've just made something of a very, very sweeping generalization... Kind of like saying...drinking tap water will lead to kidney failure due to the amount of flourine. That's not to say it isn't true, or that it won't happen... But the actuality and amount present is absurdly insignificant. Something tells me that my one, single purchase from an eBay seller whom does NOT trade in strictly bootlegged items alone (the guy just sells random stuff - that one DVD set was like....the only DVD set he had listed) won't sell a woman into prostitution, and something tells me I won't lose any sleep over it.

It isn't string theory: I want a physical copy of Kara no Kyoukai in my collection. Aniplex seems hell bent on preventing me from having one. And I don't happen to have a convenient printing studio next door. So, what else can I do?

I'm not terribly proud of the purchase, cause it sort of ruins my groove: This is the first ever bootleg I'll have, and probably only one - it's the black sheep in my collection. However, will I have the desired physical copy? Will I be able watch it anytime? Will I be able to prevent letting my dad down, and finally get to watching this series like he's been wanting to do with me for a while now? Yes, yes and yes.


True but you're not helping the situation either. If you wanted a physical copy, just burn it on disk.

Are you trying to prove something to yourself or to the people at Aniplex?

If you want to prove Aniplex a point, send the bootleg to Aniplex office or something with a letter.
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ZeetherKID77



Joined: 17 Jun 2007
Posts: 981
PostPosted: Fri Feb 25, 2011 11:12 pm Reply with quote
I'm surprised they sold out of all the Blu-ray sets because I had never expected people to be so desperate that they'd blow $400 on them.

I was actually interested slightly in KnK but at the price they charged, not being bilingual (I'm not ready to plunk down cash on something like that) and the fact that it included extras I could care less about I'd rather have spent the money on other things.

Aniplex, you're not going to build a relationship with fans this way. And I'm still upset over what went on with the Gurren movies.


Last edited by ZeetherKID77 on Fri Feb 25, 2011 11:25 pm; edited 2 times in total
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