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Funimation Comments on Streaming Metrics in Crunchyroll Press Release


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machetecat



Joined: 06 Jan 2010
Posts: 396
PostPosted: Sat May 08, 2010 6:51 am Reply with quote
First of all, this is freaking HILARIOUS, and it totally made my morning.

But anyway, I can understand why crunchyroll has been seeing so much growth since it became "legit". As a fansub site who found backing by a company willing to gamble on them, they have what would be this fandom's version of "street cred". So I wouldn't be surprised if a bunch of fansub viewers flocked over to them.

Also, they have some good shows. *shrugs* So why not watch them?

As for Funi: They're EVERYWHERE. Obviously CR skewed the number info to make them look better.

Honestly, I don't really care who's epeen is bigger. I like CR for grabbing shows that would probably never make it to the States, but at the same time, companies have admitted that when CR streams a show, they're discouraged from trying to acquire the R1 DVD license. Thus it makes me sad when they get a REALLY good show. (PLEASE LICENSE DRRR, FUNI!)

As for this particular argument, I have the perfect solution: Both groups grab the same show for simulcast release (Maid-sama! hasn't been grabbed yet from my understanding.) After signing a contract stating what will and won't be considered a "view", CR Will put the show on their site, and FUNi will place it on all their sites. After a month, they will report their numbers at the same time. Then we shall know the TRUE streaming king! FOR THERE CAN ONLY BE ONE!
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garfield15



Joined: 06 Apr 2009
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PostPosted: Sat May 08, 2010 7:01 am Reply with quote
Deliverator wrote:

2) Whats this about CR charging people for other peoples fansubs ? I used to watch lots of music videos and concerts on crunchyroll, and a few other shows that I could only find on crunchyroll (the later half of SaiMono2 for example). But you know what I remeber - that I was never charged for anything at anytime. Actually I take that back, I was charged for some DDL, which were Tower of Druaga - which if you recall was through a partnership with GONZO. Legit downloads supporting gonzo.

I do recall they had donations, but in no way was this forced on users. It was optional, though i am sure there were perks for donating.

I've been a CR member since near the beginning of it so I can explain.

See a lot of people (though this has decreased thankfully) still are pissed at Crunchyroll because in the past before they became legit, they used to post fansubs of just about every show anime or drama. Basically, they were like a streaming site (only like 100x better because they had everything). Now here's where it gets a little off. In the past, CR used to have ads everywhere and if you donated for them (which was optional) you would become a premium member, the ads would be removed and I think you could watch the vids in HQ instead of youtube level low quality. Basically what they do right now with their premium member program. Now, you did not have to do this. This was just if you wanted the perks. You could still watch the shows normally. However, this got skewed in the community's eyes as "Paying for other fansubs groups' anime."
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jr240483



Joined: 24 Dec 2005
Posts: 4386
Location: New York City,New York,USA
PostPosted: Sat May 08, 2010 8:33 am Reply with quote
Paploo wrote:
Dark Elf Warrior wrote:
This is going to sound dumb, but what was the article trying to say? For some reason it made no sense to me. Yet, like someone said, I felt like "Oh snap!" why is that? Can someone fill me in?


It's basically Funi pointing out that Crunchy Roll had their streaming numbers wrong, and that their numbers actually work out to around 55 million. And that's probably not taking into account Funi's revenue streams from TV broadcasts, merchandise and dvd sales.


that may be true expect for funi's revenue streams. the sales from dvds and merchandise might help unfortunately the only TV broadcast funi has now is FMA Brotherhood on AS. they made a big mistake not making an attempt for have it's other series for TV broadcast too cause a lot of them (like Soul Eater & One Piece ) could benefit with a TV release. Especially OP.
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shawnek
Accredited Retailer


Joined: 05 Feb 2004
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Location: Right Stuf - www.rightstuf.com - Iowa
PostPosted: Sat May 08, 2010 8:49 am Reply with quote
_V_ wrote:
Think about it: ADV, FUNimation, all the rest: they *had* the resources to expand onto the internet, but they didn't.


I will tell you that it was not that they did not want to do so, but the biggest issue was and has been the reluctance and/or refusal in many cases from the Japanese licensors to allow such usage of the content. For years, internet rights were difficult to impossible to obtain.

It took many years, and honestly (unfortunately) the fact that the content was being posted by non-licensed parties to get licensors to wake up to the fact that such rights needed to be provided in order to be protected. The head-in-the-sand approach to this new technology caused the current situation, not the US companies who wanted to be able to provide this content.

I know many blame the US companies and say they should have done something about this, but don't realize that the way product is licensed is more complicated that this simplistic view. You are at the mercy of the licensor, what they will support, and what is allowed under your agreement. It is a similar argument to "this stuff should be brought over faster" - but not realizing that to license these products often involves negotiations with not only the licensor, but the original creator, music and mechanical clearances, and the fact that the production many times completes days before (or the day of) broadcast.

Quote:

The R1 companies are living in a fantasy where "DVD is the primary medium by which people watch anime"


The fact is, DVD is the primary medium by which anime is monetized. The revenue from streaming is severely dwarfed by DVD revenue, even at this stage. That is not to say that people MUST watch anime on DVD. But revenue from other sources is miniscule at best.

Quote:
There is money in internet streaming. If you can't make a profit on it YET, its because you don't really seem to be trying hard enough.


You are assuming someone is making a profit on it. I have seen nothing to support that assumption.

At the present time, there has been no streaming service to my knowledge that has provided a revenue stream large enough to fund the complete production of a localization of an anime series, including licensing and clearance costs.

Many decry the lack of dubs, but also expect those dubs to be created and then provided "free" on these services. Even advertising-supported streaming pays pennies per view, and the cost of creating this content (dubbed or not) is still substantial enough that that advertising will not at present recover that cost. It is a tough position to be in, to be sure. [And no, I am not looking to open a dub/sub argument, but instead mention this as simply a cost of localization that is not quick to be recovered in this medium.] In addition, the same content that is attempted to be monetized by legitimate streaming has competition for what limited dollars there are by unauthorized, unlicensed streams.

It is certainly interesting to see the statistics provided by various firms as to the number of views and unique hits, and obviously more and more people are looking to view content (not only anime content) using the internet. But monetizing these views is difficult at best (even Hulu has only recently announced running at a profit, and is looking to add subscription services, and they have the advantage of mass-market TV and other titles). And it still my opinion that leaving such content up indefinitely damages what is left of the DVD market, giving consumers no real reason to obtain that product if they can get it for free at any time.

Shawne Kleckner
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shawnek
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PostPosted: Sat May 08, 2010 8:56 am Reply with quote
Quote:
the sales from dvds and merchandise might help unfortunately the only TV broadcast funi has now is FMA Brotherhood on AS. they made a big mistake not making an attempt for have it's other series for TV broadcast too cause a lot of them (like Soul Eater & One Piece ) could benefit with a TV release. Especially OP.


You are assuming that Funimation isn't trying hard to get TV Broadcasts for their titles. Getting something on TV, especially now, is INCREDIBLY HARD and manytimes the only way it can be done is to share the DVD revenues or to actually PAY to get it placed on the air.

I have heard this argument also before, that the Licensees could solve their problems by getting more content on TV, and that it's their fault they haven't done so. There is a limited number of places that will take anime content, and honestly, they are either full up or would prefer something that they can get tie ins to toys and whatnot to get more revenue for themselves. Believe me, any licensee in our market would KILL to get more of their stuff broadcast.
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agila61



Joined: 22 Feb 2009
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PostPosted: Sat May 08, 2010 9:28 am Reply with quote
jsevakis wrote:
A couple of things...
...
As an aside, __V__, you are 100% wrong about there being significant revenues in streaming. There are revenues, but they're pretty piddly at this point, as we went over recently in ANNCast. I will not repeat myself here.


Hell, I will ... my numbers will be very back of the envelope, but Funimation gave this 55m number to work with, so go with that.

Remember that at its peak, the US anime market was around $500m, with figures floating around that it had downsized to about half of that ... I think the latter is 2008 numbers, so it may be even smaller than that today. But the last "boom market" was connected to revenues of $500m.

Ad rates for video streaming ads seem to have been slumping (and ad demand - when I recently watched Baccano! on Hulu, half the ads were community service, which will be cut-rate filler while waiting for orders to be placed for full rate ads) but be optimistic and suppose that its around $0.03 per view. Assume March was a typical month, so 55m views per month would be 660m views per year.

That's $19.8m/year, and that is an extremely optimistic revenue per view number ... if the ad revenue is more like $0.01 on average, more like $6.6m/year.

If it is still a $200m+ DVD market and Funimation has 40% market share, as widely reported, that is $80m+ on DVD sales.

And a 40% market share in boom conditions would have been $200m. To recreate boom conditions, "new" revenue streams have to be in the $100m's.

And that is why the idea that "if the companies just tried" there would be this big windfall in streaming there for the taking ... its silly. Certainly I would argue that the companies in Japan ought to commit to growing that market but that is not on the basis of current $'s available, that is on the basis of growing the market to have it there in the future.

One obstacle - and in studying entrepreneurship, this is normal for basic innovations - is that growing the streaming market requires a different mindset. Its not a market segment that works on the small market paying a large share of their disposable income. It depends on getting a much broader market spending a bit of their spare time per week watching the show.

And when the otaku in Japan are spending $b's, and the traditional R1 market is still in the $100m's, its not like a revenue stream in the $1m's and $10m's altogether is going to compel a change of approach. The production committees have to be talked into it, and they all want to avoid being the early adopter on the bleeding edge that gets burned because the first couple of efforts have some hidden "gotchas".

But that is why Crunchyroll's press release focused so heavily on growth. The press release was clearly targeted to Tokyo, to get growth numbers floating out there to help get CR's foot in the door.
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Annf



Joined: 20 Feb 2009
Posts: 578
PostPosted: Sat May 08, 2010 10:40 am Reply with quote
shawnek wrote:
And it still my opinion that leaving such content up indefinitely damages what is left of the DVD market, giving consumers no real reason to obtain that product if they can get it for free at any time.

I agree if it's (1) really indefinite and (2) the complete series in its entirety for free and (3) identical to the DVD/BD content, but none of those have to be the case.

I think there's still experimenting to be done on online streaming's usefulness for promoting sales, with things like limited-time streams, half-series streams, censored streams (e.g. Strike Witches), bonus materials exclusive to the disc release, and probably other things I haven't thought of.

The streams themselves need ads that push the value of buying the discs; I'm not sure how well they're doing that. Simulcasts by their nature don't fit into that well, but even when I'm watching something on Crunchyroll that's published on disc in the region I live in (determinable from my IP address), I see ads for Skittles and AT&T phones instead of the disc release of the show I'm watching.

Just now I went to check the first episode of Strike Witches on Funimation's site, and there's no video ad during it for the disc release. To me that seems like an incredible waste of an opportunity to tell me what's on the disc that I'm not getting from the stream and why I should click on the Right Stuf link to the right of the video window.


Last edited by Annf on Sat May 08, 2010 12:00 pm; edited 1 time in total
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Almaz



Joined: 06 Oct 2008
Posts: 134
PostPosted: Sat May 08, 2010 10:52 am Reply with quote
shawnek wrote:
Quote:
the sales from dvds and merchandise might help unfortunately the only TV broadcast funi has now is FMA Brotherhood on AS. they made a big mistake not making an attempt for have it's other series for TV broadcast too cause a lot of them (like Soul Eater & One Piece ) could benefit with a TV release. Especially OP.


You are assuming that Funimation isn't trying hard to get TV Broadcasts for their titles. Getting something on TV, especially now, is INCREDIBLY HARD and manytimes the only way it can be done is to share the DVD revenues or to actually PAY to get it placed on the air.

I have heard this argument also before, that the Licensees could solve their problems by getting more content on TV, and that it's their fault they haven't done so. There is a limited number of places that will take anime content, and honestly, they are either full up or would prefer something that they can get tie ins to toys and whatnot to get more revenue for themselves. Believe me, any licensee in our market would KILL to get more of their stuff broadcast.


Thanks for your posts Shawn. I think more people are getting educated on the business side of anime slowly. It just takes a while for some to absorb the knowledge, if ever Wink The knowledge of the inner dealings of the industry is helping. Trying to get over some prejudices is getting to be more of the issue.

The whole Crunchyroll press release was nothing more than bravado to get the attention of those overseas. The fact that Funimation made a lukewarm reply to the statement shows that they are willing to work with Crunchyroll. I know that previous statement did not come out right. Funimation was cordial with their counter-statement. At this point, any legit services showing anime is good for the industry. Trying to get the Japanese to see that is the fun part.

I still find it interesting that the Japanese companies do not start their own streaming services IN JAPAN with English subtitles. There are Japanese credit cards and US credit cards. They can separate the two with this. With the exception of Japanese Itunes gift cards, it is near impossible? (that I know of) to get music/video off of Itunes. Having a subscription service set up there would solve some problems. The US companies can focus on DVD sales and merchandise. There are many shows I (and others) would still buy just to have a hard copy of.
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jsevakis
Former ANN Editor in Chief


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PostPosted: Sat May 08, 2010 12:46 pm Reply with quote
Deliverator wrote:
1) Seriously ? Really ? You guys are going to talk smack about CR for posting what they did ? Then you guys must hate EVERYTHING that has ever been put on the market. I see commercials all the time with a company saying "our stuff is way better than so and so".


I can see why it SEEMS like that, but it's not exactly the same thing. When you see comparisons like that on TV, it's always about some feature that's indisputable about the product itself. (i.e. this car has 4WD, this car doesn't.) If the subject is even vaguely subjective, the competitor's name is removed. (i.e. Tide removes more stains than "the leading brand")

There are legal reasons for this (a company that feels it was unfairly represented can easily sue for libel or slander, and even if the court disagrees the legal fees would hurt a lot), but also as a company it's important that people think of your product independently of a competitor's. The goal is that they don't think about your competition at all! Political ads are the only exception to this, and frankly those are such a cesspool that most companies wouldn't want to be associated with them.

Also, it would be one thing if a CR rep posted these numbers on a forum or something, but this was a press release, which have a strict format and are expected to have some formality to them. I can guarantee you that if someone at Sony put out a press release that said, "Well, we sold xx number of TVs this quarter, which was way more than Panasonic, who sold xx number," that person would be fired. Companies just do not represent themselves that way.
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samuelp
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PostPosted: Sat May 08, 2010 2:17 pm Reply with quote
jsevakis wrote:

Also, it would be one thing if a CR rep posted these numbers on a forum or something, but this was a press release, which have a strict format and are expected to have some formality to them. I can guarantee you that if someone at Sony put out a press release that said, "Well, we sold xx number of TVs this quarter, which was way more than Panasonic, who sold xx number," that person would be fired. Companies just do not represent themselves that way.

I'm sure that Cr had their reasons for putting this out, and baiting Funi was not one of them...
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agila61



Joined: 22 Feb 2009
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PostPosted: Sat May 08, 2010 2:22 pm Reply with quote
shawnek wrote:
And it still my opinion that leaving such content up indefinitely damages what is left of the DVD market, giving consumers no real reason to obtain that product if they can get it for free at any time.

Shawne Kleckner


One business model is shared streaming rights to new shows for three months and release of back catalog titles that have exhausted their primary DVD sales impetus for streaming back catalogs. What matters for, eg, Crunchyroll in maintaining market growth is (1) getting broad access close to air date (2) as close as possible to full R1+R2+R4-Japan streaming rights (and R3 whenever there is an opening) and (3) having a substantial back catalog to explore.

They obviously would prefer ongoing streaming rights, but if they are taking a cold eyed look at their commercial priorities, their priorities are different to a DVD distributors, and greater breadth at the expense of, say, only 1/3 of their shows going directly from simulcast into their back catalog, and substantial cross-streaming where they are only getting residual income from R1 ad-supported streams would be a perfectly viable growth model.

A complementary model for the right niche series is to acquire the rights and outsource DVD mastering and distribution, so that the partner is working fee for service and for that title the trade-off between DVD sales and benefit to streaming market growth is carried by CR. Aoi Hana is an example of the kind of niche title where a production house like Nozomi could provide substantial value-added on a sub-only thinpak boxset release, with multiple sub options, and features like a slideshow for subtitling of JPN-audio material like a drama CD.

In a sense, commercialization following the path pointed to by the leech streaming sites, which have a wide variety of sources of content pooled together in once place, including "found" streams and direct uploads to offsite video servers ... except aggregating different ways to market the material instead of different ways to leech videos being streamed by other sites.
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yamiangie



Joined: 03 Mar 2010
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PostPosted: Sat May 08, 2010 3:25 pm Reply with quote
[quote="Annf"]
shawnek wrote:

Just now I went to check the first episode of Strike Witches on Funimation's site, and there's no video ad during it for the disc release. To me that seems like an incredible waste of an opportunity to tell me what's on the disc that I'm not getting from the stream and why I should click on the Right Stuf link to the right of the video window.


well the video add for the dvd they are running doesn't have any info on DVD features either. Besides textless endings are standard now and we aren't seeing much more from them than that extras it seems lately since they went to half seasons and full seasons. Looking at their blog for releases man did they reprice everything like mad last month.
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agila61



Joined: 22 Feb 2009
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PostPosted: Sat May 08, 2010 3:54 pm Reply with quote
Annf wrote:
The streams themselves need ads that push the value of buying the discs; I'm not sure how well they're doing that. Simulcasts by their nature don't fit into that well, but even when I'm watching something on Crunchyroll that's published on disc in the region I live in (determinable from my IP address), I see ads for Skittles and AT&T phones instead of the disc release of the show I'm watching.


You have (1) the streaming audience that won't be buying any discs, (2) the streaming audience that will be buying the discs anyway when they hear that they have been released and (3) those on the fence who can be persuaded to buy a disc with embedded ads. For (2), the streaming content itself is the advertisement, and an advertisement that generates a modest amount of revenue, instead of costing money.

If they do not buy the video advertisements, it seems they do not think that (3) is a very big group of people.
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sdhd



Joined: 27 Nov 2007
Posts: 169
PostPosted: Sat May 08, 2010 7:32 pm Reply with quote
agila61 wrote:
sdhd wrote:
To settle the dispute Funimation and Crunchyroll should post their quarterly earnings and give the anime fans to see if it is worth supporting the companies.
Note that this is quite insane. Its "worth supporting Funimation" by watching their streams if you like the shows. Its "worth supporting Crunchyroll" by watching their streams if you like the shows. If you really like a show, tell someone else where to watch the legit stream.

Quote:
Maybe the anime fans should just watch fansub. That will solve the problem of ego.
???? Punish the creators to force two companies involved in streaming to settle arguments in forums? That does indeed sound like an ego problem, but not ego at Funimation or Crunchyroll.


I watch anime on Crunchyroll and a few titles on Funimation because I am interested in the titles not because I am doing it to support the sites. If the companies and people needs to feel good about themselves by using the word "support" so be it.

When the companies ask the fans to support the sites then what's in it for me?

I don't hear Youtube or Hulu asking users to support their websites. They know it is a business and if they don't have what people want then they go out of business.

It is Crunchyroll and Funimation jobs to advertise to get people to watch their contents on the sites. It is not my job to go around and get people to watch the sites.

Obviously you didn't read my response to the second quote that you commented me on. It was meant to be sarcastic.


Last edited by sdhd on Sat May 08, 2010 10:20 pm; edited 2 times in total
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Mr. sickVisionz



Joined: 28 Oct 2007
Posts: 2173
PostPosted: Sat May 08, 2010 8:22 pm Reply with quote
MeggieMay wrote:
First, could someone break down what a "streaming metric" is, exactly? URLs to a site with a explanation is welcomed.

Second, if Funimation would ever get their player to work right with Firefox and/or my IP, and all the other people who have never ending problems with the Funiplayer/site, then they're numbers would most likely go up.


If Funi's player worked as well as CR or Hulu their numbers might drop. Their player dies on me 50% of the time and when I refresh the page that probably counts as an extra play. Compare that to CR dying less than 10% of the times I use it and Hulu dying once in the 2 or 3 years that I've used it.
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