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How Much Does It Cost to License Anime Series?


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skemono



Joined: 26 May 2019
Posts: 75
PostPosted: Mon Aug 02, 2021 1:40 pm Reply with quote
Quote:
for catalog content, licensees are sometimes willing to pay a bit more than they otherwise would have (or might be expected to pay a bit more) if they want to pick up a pre-existing subtitle script or dub


Does this mean the original licensor own the rights to the subtitles or dub? I've been curious about that, whether someone would have to pay the English company that did the translation to buy the subs/dubs, or pay them royalties, or whether it goes through the Japanese company.

And would it be similar with manga? Like, when Kodansha US republished Shaman King they worked from the same translation Viz used originally, so did they have to negotiate with Viz for that or is that something Kodansha Japan owns the rights to?
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Tempest
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PostPosted: Mon Aug 02, 2021 1:53 pm Reply with quote
skemono wrote:
Does this mean the original licensor own the rights to the subtitles or dub? I've been curious about that, whether someone would have to pay the English company that did the translation to buy the subs/dubs, or pay them royalties, or whether it goes through the Japanese company.


Depends on the licensing contract. By default, the company that makes the translation "owns" the rights to it (there's some copyright nuance here that I won't get into). But sometimes the licensing contract can stipulate that the rights to the translation made by the licensee go to the licensor. This is pretty common, and I suspect that it's the norm right now, but I haven't asked anyone about it recently.

In the past there certainly were cases where new licensees had to license translations from a third party (past licensees, or licensees in a different territory).

-t
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CorneredAngel



Joined: 17 Jun 2002
Posts: 854
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PostPosted: Mon Aug 02, 2021 2:15 pm Reply with quote
kpossibles wrote:


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


I vaguely remembered some numbers coming up in that mess! But in all fairness, that was what, nine years ago now.

OTOH, hey, Chris, why not tell us how much ANN paid for licensing rights when ANN tried to get into the licensing game?

Or is that all still confidential?
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wjbraden



Joined: 23 Apr 2020
Posts: 36
PostPosted: Mon Aug 02, 2021 2:16 pm Reply with quote
Tempest wrote:

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.


Isn't it though, when you have licensees that are being asked to bid on things a year in advance with little to no indication on what the finished product will even look like? We know for sure there have been many duds and blunders that have happened in recent years (see last page for the Interspecies Reviewers debacle), surely that comes at a huge cost and represents something that isn't sustainable? What about the matter of saturation that we had in the last bubble? I think many would agree that we're seeing similar saturation currently.

Tempest wrote:
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.


Well yes, only some there of course, but $70K per ep for an average anime certainly represents a major chunk of production cost right there which surely isn't getting filtered down to the animators/core boots-on-the-ground production team. I guess the question is, who exactly is all this cash going to? I, for one, would really like that article/series of article regarding Production Committees.
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Ak Animax



Joined: 28 Sep 2020
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PostPosted: Mon Aug 02, 2021 2:23 pm Reply with quote
I wonder how much it can cost
To acquire the exclusive license for upcoming anime Chainsaw man ( including rights for streaming, to sublicense, broadcast on tv, physical media for example like Attack on Titan)
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Tempest
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PostPosted: Mon Aug 02, 2021 2:43 pm Reply with quote
Ak Animax wrote:
I wonder how much it can cost
To acquire the exclusive license for upcoming anime Chainsaw man ( including rights for streaming, to sublicense, broadcast on tv, physical media for example like Attack on Titan)


Chainsaw Man is probably already licensed, but if it isn't, it's gonna be expensive AF.

CorneredAngel wrote:
OTOH, hey, Chris, why not tell us how much ANN paid for licensing rights when ANN tried to get into the licensing game?


I didn't outright say what anyone paid for any specific title, I regularly hear what titles go for and am under no NDA for those titles, but I don't leak deal specific info. I'm not going to do it for deals I was involved with either.
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Shay Guy



Joined: 03 Jul 2009
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PostPosted: Mon Aug 02, 2021 3:23 pm Reply with quote
I remember how back when I was getting into anime, Samurai Champloo being licensed so far in advance of its airdate was cited as an indicator of how anticipated it was. Now, if an anime doesn't have a license before it airs, it's probably not gonna happen at all. Hell, there's probably an anime adaptation of Oshi no Ko in the works that someone's already licensed.

Quote:
However, acquiring cheap catalog rights from Japan poses an entirely different challenge. 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. Acquiring really old titles poses an even bigger challenge; the older the show is, the harder it is to even determine who actually owns the rights for the show and find the materials.


I know you can't confirm, but I'm willing to guess Kamichu's one of those "too cheap to sell" titles. Sad It's been out of print practically as long as it's been on my to-watch list.

Actually, another couple questions. One, how often do licensees end up paying royalties over the MG? Two, you allude to simulcast licenses having gone for $500 per episode once upon a time -- are we talking 2010ish?
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FlamingFirewire



Joined: 03 Jun 2013
Posts: 464
PostPosted: Mon Aug 02, 2021 4:15 pm Reply with quote
Tempest wrote:
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.


When it comes to apathy from corporations or people not wanting to spend the money to figure out who has what rights, this reminds me not only of old anime, but also of old games (where many different companies might now own the rights for different assets, or where no one knows who really owns the rights) - No One Lives Forever being one of the more recent high profile ones:

https://kotaku.com/the-sad-story-behind-a-dead-pc-game-that-cant-come-back-1688358811
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skemono



Joined: 26 May 2019
Posts: 75
PostPosted: Mon Aug 02, 2021 5:19 pm Reply with quote
Tempest wrote:
skemono wrote:
Does this mean the original licensor own the rights to the subtitles or dub? I've been curious about that, whether someone would have to pay the English company that did the translation to buy the subs/dubs, or pay them royalties, or whether it goes through the Japanese company.


Depends on the licensing contract. By default, the company that makes the translation "owns" the rights to it (there's some copyright nuance here that I won't get into). But sometimes the licensing contract can stipulate that the rights to the translation made by the licensee go to the licensor. This is pretty common, and I suspect that it's the norm right now, but I haven't asked anyone about it recently.

In the past there certainly were cases where new licensees had to license translations from a third party (past licensees, or licensees in a different territory).

-t


Thanks!
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TheConqueror



Joined: 19 Jul 2015
Posts: 101
PostPosted: Mon Aug 02, 2021 5:25 pm Reply with quote
I wonder how much it costs to license a long running anime nowadays like Black clover/One Piece/Boruto. I'm pretty sure the licensing contracts for these shows are way different from seasonal anime.
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Peebs



Joined: 07 Dec 2005
Posts: 420
PostPosted: Mon Aug 02, 2021 5:54 pm Reply with quote
Thank you for the insight. It is infuriating to find out how some companies are making money which the people who actually make it happen can't even eat or get sick from being overworked. It's also infuriating to find people on my Twitter TL suggesting pirating something. Even if big companies are making all the money, the animators suffer in the end.
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Pokenatic



Joined: 24 Jan 2012
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PostPosted: Mon Aug 02, 2021 6:27 pm Reply with quote
Man, I did not realize how much licensing costs had ballooned in the last decade. I recall that $250,000 sounded like a realistic number for a middle of the road 13 episode series years ago, but those days are clearly gone.

Makes me wonder what those AnimeTube guys thought they could have even done with $50k. That might have been enough for designing the website and initial server costs. I think.
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samuelp
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Joined: 25 Nov 2007
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PostPosted: Mon Aug 02, 2021 7:39 pm Reply with quote
To give everyone a mild sense of the timeline for the price increases, I heard rumors back in the day that One Punch Man was the first anime to have its NA rights sold for 6 figures/episode, and at the time it was considered kind of nuts.
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Shay Guy



Joined: 03 Jul 2009
Posts: 2158
PostPosted: Mon Aug 02, 2021 7:43 pm Reply with quote
Pokenatic wrote:
Man, I did not realize how much licensing costs had ballooned in the last decade. I recall that $250,000 sounded like a realistic number for a middle of the road 13 episode series years ago, but those days are clearly gone.


I decided to look at the AJA reports, and 2019 saw overseas revenues of 1200.9 billion yen from 107,006 minutes of TV animation and 7,336 minutes of theatrical animation. That's 10.5 million yen per minute (a very rough metric, granted). In 2012 it was 240.8 billion yen and 105,070+4,713 minutes, or 2.2 million yen per minute.

So if you told me that license costs per episode went up fivefold in that seven-year span? I'd say yeah, that passes the sanity test.
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BigOnAnime
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PostPosted: Mon Aug 02, 2021 8:26 pm Reply with quote
kpossibles wrote:
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
Funny enough, Anime Tube cited that and was like "That's not how much it costs." Prices today make those look like nothing, and those prices crippled ADV Films who was at the time the largest anime licensor. They overpaid for nearly everything, with the most expensive title being Kurau: Phantom Memory which amounted to $960,000 or $40,000 per episode. Nearly every single title likely lost money, especially when you consider they lost them after less than 2 years, multiple titles were left unfinished (Devil May Cry, Kanon (2006), Pumpkin Scissors, Red Garden, Shattered Angels, Tokyo Majin, The Wallflower, and Welcome to the NHK), and only a few got box sets (Comic Party: Revolution, Coyote Ragtime Show, Jinki:Extend, Moeyo Ken TV, Nerima Daikon Brothers) and they weren't out very long (1 month to 7 months at most). There is also this to consider.
Quote:
As an example provided in the court documents, the series 009-1 was acquired for $25,000 an episode. This title was not very popular at all and would need to sell about 10,000 units to break even on licensing costs alone, at a time when other sources indicate half of that was what a good title sold.
https://www.crunchyroll.com/anime-feature/2012/01/26/feature-adv-vs-arm-a-tale-of-two-lawsuits (Bottom)

Little wonder why ADV was so crippled after the deal blew up, and Sentai Filmworks appeared as an escape route from the partial Sojitz ownership (Sojitz still owned 20% of ADV after the deal fell apart). ADV's slates afterwards were nothing but re-releases and then the news hit.

Should be noted lots of stuff lost money in the 2000s anime DVD bubble, wasn't just ADV with that problem. Like Chad Kime from Geneon (which went under in late 2007) stated numerous times on that ANNCast (animenewsnetwork.com/audiovideo/anncast/anncast017.mp3) titles were losing money, not a lot of titles lived out their full license periods and made back the minimum guarantee in those days.
Lord Geo wrote:
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.
Queen's Blade may qualify funny enough.
Media Blasters wrote:
We trying reissue but they will not respond. Even met with them. They do not care of old titles as company changes ownership.
https://twitter.com/mediablasters1/status/1398351991449997318
https://fandompost.vbulletin.net/forum/anime-manga-discussions/us-blu-ray-dvd-and-simulcast-industry-news/772000-what-titles-would-you-like-media-blasters-license-license-rescue-re-release?p=792287#post792287
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