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NEWS: Sojitz to Dissolve ARM Subsidiary for Anime Overseas


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luisedgarf



Joined: 02 Oct 2004
Posts: 660
Location: Guadalajara, Mexico
PostPosted: Thu Oct 23, 2008 12:35 pm Reply with quote
tempest wrote:

Geneon / Dentsu is again a third very different scenario, but you described it pretty accurately. Dentsu's belief was that if they threw massive amounts of money at anime that their company would grow to a dominant and profitable position. Problem is that they overspent on manufacturing, under spent on promotion and made very questionable licensing decisions.


Maybe for licensing crap like Kannazuki no Miko (including a weeabootized translation) or Rozen Maiden perhaps?
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Colonel Wolfe



Joined: 05 Aug 2004
Posts: 370
PostPosted: Thu Oct 23, 2008 1:24 pm Reply with quote
ADV Films isn't floundering and never has. If you're referring to earlier this year? Then, you're talking about Sojitz ... while Sojitz was stomping its feet and behaving like a spoiled child, ADV stood its ground. While ADV is still here, and the fact they've just acquired more titles and a new licensor who believes in the company and is starting to acquire even more titles for the company, this leaves FUNI, who is seen as nothing more but a third rate distributor.

The reason why ADV Films, Bandai Entertainment, Viz Video, Media Blasters, Manga and the others still exist is their ability to offer anime to their consumers at fair prices. Spending $100 on a 26 episode boxed set from FUNI when you can buy a 26 episode boxed set from the other companies I mentioned for anywhere from $20 to as much as $50? FUNI is just your average b***h queen of the prom.

Just take a look at Viz Vide, I purchased all seven seasons of the Ranma 1/2 series on DVD for $40 a set. Great deal ... consumers respond more to affordable prices then they do to overpriced DVD's. I'm not saying the FUNI's policies won't work ... sure, they'll sell some sets, but in the long term, they're going to end up releasing the sets as those cheap-@#$ Viridian collections.

Talk about the dumbest idea on the face of the planet.
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GATSU



Joined: 03 Jan 2002
Posts: 15366
PostPosted: Thu Oct 23, 2008 1:25 pm Reply with quote
Yueh:
Quote:
But the economy has been going south for awhile.


Yes, but the bottom only really fell out earlier this year.

Quote:
People in my area got burned out last year about this time.


That's because they like building overpriced houses near places which tend to burn pretty easily. Even Arnie's said the state needs to re-evaluate that trend.

Quote:
They were looking for a market that didn't believe in saving a buck by downloading everything under the sun & selling titles non-downloaders therefore would never, ever, ever see here in the states. Why would that market want a dub? So if adding a dub wouldn't sell any more copies, or would only sell a handful more dvds, why put out the money? It's the Rolls Royce vs Ford market.


Except Rolls Royce cars would generally have the same options as a Ford car. As for why the people who download would want a dub, I imagine so they don't have to read bad fansubs.

Quote:

They should have sold obscure titles for the same prices as blockbusters they knew would sell 10 times as many copies? Hollywood doesn't even do that, dude. I paid sale price $25 for a "season" of Pushing Daisies-9 eps for $2.77 per ep.


Still a better episode deal than 2 eps for $40.
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melonbread



Joined: 09 Jan 2008
Posts: 317
Location: UK (London)
PostPosted: Thu Oct 23, 2008 1:35 pm Reply with quote
tempest wrote:
melonbread wrote:
It is sad, but on the other hand it's partly their fault that the growth didn't happen because they didn't guide ADV in the direction that results in good growth, ala the Funimation model, as Funimation have been growing constantly. Or maybe Sojitz invested the 20% and said to ADV "now make us some money, without any help from us", so ADV did things their way (the way I personally like it (singles) and it didn't work out.

If a major investor (i.e getting a place on the board of the company, which I suspect is what Sojitz got from a 20% investment) doesn't input advice into how to run the company they invested in, then it's their fault in the first place when they don't increase their money.


Well, as I said, and ADV has publicly said, the "breakup" was because ADV's management team and Sojitz did not agree on how things should be done (the specifics of those disagreements haven't been publicized).

So Sojitz did put plenty of input into ADV. ADV's management just didn't like the input. Who was right ? We'll probably never know. Could be that Sojitz's ideas would have bankrupt ADV, could be that they would have lead to significant improvement.

Bandai Visual USA was a different story altogether. They entered the market in an attempt to move it upscale. To say that they completely failed would be inaccurate, the Honeamise Line will continue at BEI as a home for high end releases for certain titles. The reason that BVUSA was shut down was that, now that Bandai Visual is a wholly owned subsidiary of Namco Bandai, there was no reason to have two competing subsidiaries in the USA. Still, IMHO, BVUSA's business model was unsustainable the way they were going about it. The anime market is too small to sustain a company that is geared exclusively towards high-end, high-price DVD releases.

Geneon / Dentsu is again a third very different scenario, but you described it pretty accurately. Dentsu's belief was that if they threw massive amounts of money at anime that their company would grow to a dominant and profitable position. Problem is that they overspent on manufacturing, under spent on promotion and made very questionable licensing decisions.

Of course, there is a common thread through the three companies. Japanese management felt things would work in a certain order, and at the end of the day they were either wrong or perceived to be wrong and blocked from going any further.

Of course, it would be very silly to come to the conclusion that Japanese management can't run a successful American anime/manga company. Look at BEI and VIZ. There are clear differences between the way all five companies are/were operated, but obviously BEI and VIZ have found a working balance between their Japanese owners and the American market. The same can be said for Pioneer prior to its involvement with Dentsu.

-t


Yeah I see where you're coming from.

I just got the distinct impression from reading things that Sojitz were a "spreadsheet" company, so I just had visions of them presenting ADV with loads of numbers and targets and left ADV to produce/distribute the product however they saw fit, it's just they didn't hit the numbers Sojitz wanted. All speculation again of course.
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jsevakis
Former ANN Editor in Chief


Joined: 28 Jul 2003
Posts: 1684
Location: Los Angeles, CA
PostPosted: Thu Oct 23, 2008 2:11 pm Reply with quote
God, some people just see the world through funny glasses, logic and common sense be damned.

Colonel Wolfe wrote:
ADV Films isn't floundering and never has. If you're referring to earlier this year? Then, you're talking about Sojitz ... while Sojitz was stomping its feet and behaving like a spoiled child, ADV stood its ground. While ADV is still here, and the fact they've just acquired more titles and a new licensor who believes in the company and is starting to acquire even more titles for the company, this leaves FUNI, who is seen as nothing more but a third rate distributor.


Yes, a third rate distributor with a gigantic lead in market share. ADV, meanwhile, had to lay off a huge percentage of their workforce, and have admittedly had a very scary few months. There are additional data points I'm not at liberty to share, but suffice it to say that what retailers alone went through with them pulling solicitations at the last minute and canceling wholesale orders burned many bridges, and retail placement is going to be a significant challenge for them going forward. They look to be recovering at the moment, and I think we're all happy about that, but that doesn't change what they went through.

Quote:
The reason why ADV Films, Bandai Entertainment, Viz Video, Media Blasters, Manga and the others still exist is their ability to offer anime to their consumers at fair prices. Spending $100 on a 26 episode boxed set from FUNI when you can buy a 26 episode boxed set from the other companies I mentioned for anywhere from $20 to as much as $50? FUNI is just your average b***h queen of the prom.


Not saying you're right (clearly business economics is not your strong suit), but this is at least an interesting point. I'd say that if all licenses and production costs and marketing costs were free, you would be right. But they're not, and many of the titles sold for dirt cheap are not profitable, and those companies still exist in spite of them.

Quote:
Just take a look at Viz Vide, I purchased all seven seasons of the Ranma 1/2 series on DVD for $40 a set. Great deal ... consumers respond more to affordable prices then they do to overpriced DVD's. I'm not saying the FUNI's policies won't work ... sure, they'll sell some sets, but in the long term, they're going to end up releasing the sets as those cheap-@#$ Viridian collections.


Most of those "cheap-@#$ Viridian collections," no matter what YOU think of them, sell a hell of a lot better than Ranma does.

Oh, why am I bothering to respond to fanboy trolling? Why, oh, why...?
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GATSU



Joined: 03 Jan 2002
Posts: 15366
PostPosted: Thu Oct 23, 2008 2:20 pm Reply with quote
jsevakis:
Quote:
There are additional data points I'm not at liberty to share, but suffice it to say that what retailers alone went through with them pulling solicitations at the last minute and canceling wholesale orders burned many bridges, and retail placement is going to be a significant challenge for them going forward. They look to be recovering at the moment, and I think we're all happy about that, but that doesn't change what they went through.


If they're willing to make nice with studios which backed HD-DVD, they got no excuse for fronting on ADV.
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MokonaModoki



Joined: 30 Oct 2005
Posts: 437
Location: Austin, Texas
PostPosted: Thu Oct 23, 2008 2:47 pm Reply with quote
Quote:
Hmm, didn't occur to me that Sojitz still owns that extra 20%... I would have thought they would have sold it back to Ledford for nearly whatever he'd pay for it when they retracted all the licenses.


I'd imagine that there's probably a good deal of dissent about what the JCI equity in ADV is now actually worth to either party, if anything. I don't know if the existence of Sentai Filmworks is "protection" from JCI so much as additional motivation for them to get the rest of the way out of ADV. If it causes JCI to realize less profit from whatever might be left of their investment in ADV then I say good for ADV. I don't expect much is left of that investment though.

JCI started with a total investment of 1.4 billion yen ($12 million at that time) which was immediately followed by reports that AD Vision got a capital infusion of $20 million from them (but I have no explanation for the discrepency in these figures).

Whatever JCI actually spent, it represented 21.6% equity in ADV (if the reported figures from Sept. 11, 2007 were correct). But that capital investment (the $$$) was presumably re-assigned to ARM. We know that some of it was used to acquire 30+ licenses, and I assume that some was presumably paid back into ADV's Amusement Park Media Studios to complete the dubbing on them. I don't know that is how it worked, but that's how it looks on the chart from the June 26, 2006 Sojitz press release.

At that point, the money from the investment that was used is essentially gone in investments elsewhere - either to licensors the titles were obtained from, or to APMS (ADV) for completed work product on those licenses, which is not a profit center. Then with all assets from those investments held by ARM, the only place left for return on investment from those titles via ADV was going to come from distribution of those works by ADV.

That means that once ARM ended ADV's right to distribute the licensed titles in question, the value of the JCI's capital investment which was applied to developing those titles effectively became nothing from an ADV perspective. For JCI it was then vested in assets held by ARM. So did JCI not divest itself of its share of ADV by taking the assets and distributing them elsewhere through ARM?

I'd expect there's a good argument to be made that wiping out a partner's future earning potential by selling assets to a competitor (while simultaneously destroying relationships with retailers and customers) pretty well dissolves your investment in the partnership.

If not, and if there's still anything that ADV "owes" JCI from the original investment, then I would expect that there's a big bargaining chip in play in the form of Sergeant Frog and an even bigger one in Mermaid Melody: Pichi Pichi Pitch (for which dubbing was completed shortly before this "breakup") - neither of which has been liquidated by ARM yet.
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jsevakis
Former ANN Editor in Chief


Joined: 28 Jul 2003
Posts: 1684
Location: Los Angeles, CA
PostPosted: Thu Oct 23, 2008 3:19 pm Reply with quote
GATSU wrote:
If they're willing to make nice with studios which backed HD-DVD, they got no excuse for fronting on ADV.


Apples and oranges. All the studios that drove the HD format war were big Hollywood brands, and not stocking their product would hurt the retailer more than the studio. Conversely, small non-diversified publishers really get pushed around and taken advantage of by big retailers, who often have to prioritize both limited shelf space and payments if it was a bad month (and if you're a retailer, chances are things are tight right now). They can often strongarm publishers into accepting tons of returns and/or ridiculously deferred payment.

A media company that can't stick to street dates and can't meet sales obligations, no matter the excuse, are in the world of retail buyers treated as if they have a very bad farting problem.
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Hon'ya-chan



Joined: 31 Jul 2007
Posts: 973
PostPosted: Thu Oct 23, 2008 4:04 pm Reply with quote
Kireek wrote:
Hon'ya-chan wrote:
*looks at her pile of cash*

Still waiting...still waiting....


Nah............it must be the fansubs. Rolling Eyes


Actually, I want to own legit copies of Japanese Anime Shows/TV shows/whatever. Unfortunately, because of numerous factors, we in the USA get shafted and many people are .

The issue I have is that I'm willing to pay for physical/legitimate copies. All the companies need to do is provide it. Like how some books are printed to demand. Offer a service where you have the option of buying episodes onto physical media as well as downloads.

All the companies have to do is meet halfway.
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LuckySeven



Joined: 02 Sep 2008
Posts: 585
Location: Georgia, USA
PostPosted: Thu Oct 23, 2008 4:45 pm Reply with quote
On this I'd agree. Personally I'd rather have my anime on some sort of physical medium. Digital downloads are great if you're into that stuff, but for me watching anime is my escape from the internet and my PC. Even more so with all the problems I have had with my PC this year since around March. I would rather have something I can pop in my DVD player so I can just relax and enjoy.
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GATSU



Joined: 03 Jan 2002
Posts: 15366
PostPosted: Thu Oct 23, 2008 4:52 pm Reply with quote
jsevakis:
Quote:
All the studios that drove the HD format war were big Hollywood brands, and not stocking their product would hurt the retailer more than the studio.


Well, ok, how about FUNimation's Geneon re-releases then? Yeah, they're now in box-sets, but I can't imagine even that would have made the retailers feel any better.

Anyway, I don't think that ADV will have that much of a problem, since they had a fairly good record on the anime front until Sojitz came along.
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TJ_Kat



Joined: 11 Jan 2007
Posts: 370
Location: Saskatoon, Canada
PostPosted: Thu Oct 23, 2008 5:50 pm Reply with quote
Colonel Wolfe wrote:
Pumpkin Scissors, Red Garden, Welcome to the NHK, has FUNI lost their mind? I've talked with a lot of anime fans on other message forums about this and they've expressed displeasure with how FUNimation has decided to break these titles up and release them as two 13 episode sets.

That wouldn't be so bad, but FUNI is also releasing both sets on the same day forcing a potential anime fan to spend anywhere from $85 to over $100 for a complete series. There's something screwed up about that line of thinking. I have a tough time justifying spending $50 for a potential set, and I have, mind you, on a 26 episode series. FUNimation seems to think they want to try and squeeze as much money from the pickets of anime fans then to keep them as long time consumers.


Glad I'm not the only one to notice FUNi's somewhat deceptive price scheme. Yeah, they're selling box sets a bit cheaper than everyone else does, but they're only half season sets. By the time you buy both halves, it's now quite a bit more than what others are selling sets for.
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Serge



Joined: 29 Mar 2005
Posts: 162
PostPosted: Thu Oct 23, 2008 6:13 pm Reply with quote
TJ_Kat wrote:
Colonel Wolfe wrote:
Pumpkin Scissors, Red Garden, Welcome to the NHK, has FUNI lost their mind? I've talked with a lot of anime fans on other message forums about this and they've expressed displeasure with how FUNimation has decided to break these titles up and release them as two 13 episode sets.

That wouldn't be so bad, but FUNI is also releasing both sets on the same day forcing a potential anime fan to spend anywhere from $85 to over $100 for a complete series. There's something screwed up about that line of thinking. I have a tough time justifying spending $50 for a potential set, and I have, mind you, on a 26 episode series. FUNimation seems to think they want to try and squeeze as much money from the pickets of anime fans then to keep them as long time consumers.


Glad I'm not the only one to notice FUNi's somewhat deceptive price scheme. Yeah, they're selling box sets a bit cheaper than everyone else does, but they're only half season sets. By the time you buy both halves, it's now quite a bit more than what others are selling sets for.


Agreed, I'm looking for the RRP for Ouran High School Host Club (Part 1!) and it's $59.99, so both Sets would cost you $120 RRP, considering the way the econ is nowadays, I'll like to think people are holding back.

And once you get the actual product, it's rubbish and cheap They've stripped out the Original Japanese Credits, and put overlays several times in the whole show = Frustrating. Minimal Extras.

I'm fine with the 7 Episodes per disc (They've done it before with Fruits Basket for example, and put 2 episodes worth of extras on the disc as well and the quality is fine with me), so it takes less space on my shelf, it's just taking things out on the DVD's, when they can just leave it in place like how they did with their previous releases.
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Dargonxtc



Joined: 13 Apr 2006
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PostPosted: Thu Oct 23, 2008 8:28 pm Reply with quote
Serge wrote:
TJ_Kat wrote:
Colonel Wolfe wrote:
Pumpkin Scissors, Red Garden, Welcome to the NHK, has FUNI lost their mind? I've talked with a lot of anime fans on other message forums about this and they've expressed displeasure with how FUNimation has decided to break these titles up and release them as two 13 episode sets.

That wouldn't be so bad, but FUNI is also releasing both sets on the same day forcing a potential anime fan to spend anywhere from $85 to over $100 for a complete series. There's something screwed up about that line of thinking. I have a tough time justifying spending $50 for a potential set, and I have, mind you, on a 26 episode series. FUNimation seems to think they want to try and squeeze as much money from the pickets of anime fans then to keep them as long time consumers.


Glad I'm not the only one to notice FUNi's somewhat deceptive price scheme. Yeah, they're selling box sets a bit cheaper than everyone else does, but they're only half season sets. By the time you buy both halves, it's now quite a bit more than what others are selling sets for.


Agreed, I'm looking for the RRP for Ouran High School Host Club (Part 1!) and it's $59.99, so both Sets would cost you $120 RRP, considering the way the econ is nowadays, I'll like to think people are holding back.

I think what people need to keep in mind, is that these are the initial releases. And instead of comparing them to other companies complete set releases, whom have already gone through an entire run of singles. You should compare them to other companies initial single volume releases. So $60 for 13 episodes, or $75-$90 for other companies singles. $120 for 26 episodes, versus $150-$180 for singles, $190 if you get an artbox. As initial releases go, it is far cheaper.

Another thing to keep in mind is that almost no one is going to be paying theses prices, since most will buy under MSRP. But it is just easier to use them for comparisons sake.

Quote:
And once you get the actual product, it's rubbish and cheap


This I agree with and is a concern of mine as well. Low disc count scares me(especially since I just got a new TV), flimsy packaging, and haphazard to very little extras is not a direction I want anime to go.
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Colonel Wolfe



Joined: 05 Aug 2004
Posts: 370
PostPosted: Thu Oct 23, 2008 11:24 pm Reply with quote
Dargonxtc, I can agree with you mostly but these shows have already been released with the exception of the last few disks. I think if they would have packaged the entire season together for their normal price of $69.99 it wouldn't be such a big problem but it's not like sets are in their first release.

Plus, they are boxed sets ... I'm glad that I'm not the only one seeing that FUNI has a screwed up sense of marketing for these already released DVD's. Far as I'm concerned, I'm just going to order the ADV Films releases through [This URL is a known Bootlegging website] and Amazon and get them for $14.99 and wait for FUNI to release the final disk.
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