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NEWS: State of Animation Industry In Japan




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tiredgamer



Joined: 11 Mar 2004
Posts: 243
Location: Florida
PostPosted: Thu Aug 11, 2005 12:52 am Reply with quote
Boredom compels me to convert the numbers...

    $1.73 Billion in anime market sales (DVD + TV + movies) for 2003, down from $1.93 Billion in 2002.

    $4.53 Million was pooled by JETRO to back anime production in 2005

    30-minute productions cost roughly $90,000 per episode, while some can be had for about $45,000 per episode

    Production IG is pushing for quality and some animators are earning upwards of $90,000 per year.

    Spirited Away was backed by $22.6 Million in upfront financing.

    Feature-length anime box office revenues in 2003 were $305.6 Million

    Anime video sales were down to $839.8 Million in 2004

    The anime market was estimated to be $181 Million based on DVD sales in 2004 (this number doesn't make a lot of sense)

So you get most animated television series for about one to two million USD. The companies don't make their money back except for video and DVD sales, along with the smattering of merchandising. This makes a lot of sense, but it also makes it that much more difficult to justify the online trading; the high R2 prices are a necessary evil and not trying to "rip off" anyone.

Overall this is interesting. It makes me wonder how much global licensors are paying since it can't be more than two or three million (USD). I can see how the U.S. licensors are starting to get directly involved, considering the ease of splitting costs and contributing to production.
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ANN_Bamboo
ANN Contributor


Joined: 05 Jan 2002
Posts: 3903
Location: The OC
PostPosted: Thu Aug 11, 2005 3:13 am Reply with quote
tiredgamer wrote:

Overall this is interesting. It makes me wonder how much global licensors are paying since it can't be more than two or three million (USD). I can see how the U.S. licensors are starting to get directly involved, considering the ease of splitting costs and contributing to production.


You'd be surprised, actually, regarding your first assumption.... The US licensors are starting to get involved because the price is so high, and having a hand in production drastically cuts costs...
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tiredgamer



Joined: 11 Mar 2004
Posts: 243
Location: Florida
PostPosted: Thu Aug 11, 2005 4:55 am Reply with quote
SakechanBD wrote:
tiredgamer wrote:

Overall this is interesting. It makes me wonder how much global licensors are paying since it can't be more than two or three million (USD). I can see how the U.S. licensors are starting to get directly involved, considering the ease of splitting costs and contributing to production.

You'd be surprised, actually, regarding your first assumption.... The US licensors are starting to get involved because the price is so high, and having a hand in production drastically cuts costs...

That could be good or it could be bad. I hope it means lower prices in R1 and more feasible prices in R2. A good reason for charging so much for R1 rights could be argued that reverse-importation threatens R2 sales. But that's neither here nor there...

I'm still confused why the overall market is so big, while the DVD market is a small percentage.
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mrgazpacho



Joined: 14 Jan 2002
Posts: 316
Location: Australia
PostPosted: Thu Aug 11, 2005 5:44 am Reply with quote
tiredgamer wrote:

I'm still confused why the overall market is so big, while the DVD market is a small percentage.


Plushies Very Happy
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Gauss



Joined: 22 Oct 2004
Posts: 519
Location: Finland
PostPosted: Thu Aug 11, 2005 1:01 pm Reply with quote
Hmm, the report doesn't mention merchandizing, although it's entirely possible it's included in the totals. As was said, the market estimate didn't make much sense. Possibly that's the profit on sales, rather than total sales. Or then a zero dropped off (roughly 200 billion for 2004 vs 191.2 billion yen in 2003).

It does seem movie revenue suffered the single biggest drop, more than twice as much than DVD/Video sales. Not sure where the remaining loss comes from, possibly falling exports or stingy broadcasters (there's obviously a glut when the number of episodes continue to rise but value of sales fall).
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.Sy



Joined: 11 Mar 2005
Posts: 1266
PostPosted: Fri Aug 12, 2005 7:17 am Reply with quote
That's not too good. Not having stable incomes would discourage some people from joining the anime industry. When I first got into anime, the only titles I really knew were YGO, DBZ, and YYH, but those are just a tiny fraction of the anime produced. Obviously every anime can't turn out like YGO, but maybe they're producing too much? I read an ask John article recently about Gonzo, and by the loks of it, at least one company has their hand full.
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Jadress



Joined: 08 Oct 2003
Posts: 805
Location: Seattle. It purdy and nerdy!
PostPosted: Fri Aug 12, 2005 8:46 am Reply with quote
I get worried sometimes that people will stop making great anime because it's not profitable enough. I mean, sure, people will still buy merchandise of an quality anime, but I'm sure merchandising from a series like Wolf's Rain or even Cowboy Bebop doesn't even come close to kids toy-commercial series like Yu Gi Oh or Pokemon, or the ever-dependable dating-sim/harem series for otaku who buy everything. I'm sure there will always be people willing to tell good stories no matter what, but I always get sad and concerned when there's no monetary incentive for people not to suck.
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mufurc



Joined: 09 Jun 2003
Posts: 612
PostPosted: Fri Aug 12, 2005 9:46 am Reply with quote
tiredgamer wrote:
This makes a lot of sense, but it also makes it that much more difficult to justify the online trading; the high R2 prices are a necessary evil and not trying to "rip off" anyone.

Necessary evil or not, Japanese anime DVDs are too expensive, so no-one should be surprised that people are looking for... well, "alternative solutions." Every Japanese anime fan I asked about this told me that the biggest reason they don't buy anime DVDs (but download/rent instead) is that they're just too bloody expensive - it seems even the otaku are reaching their limit. I myself had decided to buy the R2 edition of Gankutsuou (24 eps)... but my determination lasted only as long as I realized that it would cost me almost twice as much as buying the complete FMA series (51 eps) on R1.
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Mach5Motorsport



Joined: 05 Jul 2005
Posts: 38
Location: CA
PostPosted: Fri Aug 12, 2005 12:20 pm Reply with quote
The companies reep the havest of bitter fruit created from their own planted seeds. I hate the complaining of the companies both here in the US and Japan. They are not entitled to consumers buying their products. People have the right of refusal if they feel the set prices are too high and will seek out other choices: Economics 101
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Joe Mello



Joined: 31 May 2004
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PostPosted: Fri Aug 12, 2005 1:13 pm Reply with quote
mrgazpacho wrote:
tiredgamer wrote:

I'm still confused why the overall market is so big, while the DVD market is a small percentage.


Plushies Very Happy


Heheh. Very nice. 20 points.

Isn't Japan still going through a "recession"? (which is still better than any good day in the US stocks)
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tekwych



Joined: 18 Mar 2005
Posts: 75
Location: New Mexico
PostPosted: Fri Aug 12, 2005 3:17 pm Reply with quote
What are the NA numbers that would correspond with these? I know anime numbers are up in NA but what percentage of profit are some of these title getting (needing) from over here?
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scatteredshadows



Joined: 13 Oct 2004
Posts: 22
Location: Chicago
PostPosted: Mon Aug 15, 2005 9:34 am Reply with quote
People can certainly choose not to buy the product, however prices being deemed too high by some does not justify piracy and theft by anyone. It's amazing what people feel entitled to.

There are a lot of things I want that I cannot afford, so I either adjust my spending in other areas to accomodate what I want most or I do without. At least with anime, there are affordable solutions such as NetFlix and anime clubs.

Just because we're talking about intellectual property doesn't change anything by the way.
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scatteredshadows



Joined: 13 Oct 2004
Posts: 22
Location: Chicago
PostPosted: Mon Aug 15, 2005 9:53 am Reply with quote
tiredgamer wrote:
Boredom compels me to convert the numbers...

[list]$1.73 Billion in anime market sales (DVD + TV + movies) for 2003, down from $1.93 Billion in 2002.


Does anyone know what percentage of the total DVD/TV/film market anime represents in Japan?
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