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NEWS: CPM Lays off Staff, Prepares for Bankruptcy


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Keonyn
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Joined: 25 May 2005
Posts: 5567
Location: Coon Rapids, MN
PostPosted: Wed May 31, 2006 12:19 pm Reply with quote
Quote:
Also, regarding Toei/Bandai, yes I realize their first releases have been HORRIBLE, but then again,... it might be "fairer" to compare their first releases to the U.S. companies' first releases and see how their respective first releases compare.


You can do that, you'd still find they'd fail. Besides, what matters now is releases now, no one achieves anything by dwelling on what was when it is what's now that is important and what's now doesn't support your theory.

Quote:
In any case, your post is just a series of nitpicks (It reminds me of the internet in the mid 90s), overlooking the fundamental issue here; CPM didn't have enough releases, and had made enough mistakes which lead to their current position. I don't think anybody can dispute this.


And yours is not? Heck, you turned an article about a licensor failing in to a rant about the evils of the US companies and the apparent saintly behaviour of the Japanese companies that is not only completely ridiculous but borderline laughable. Time and time again we've seen that Japanese companies make mistakes of their own. You're saying to dismiss the negative aspects of the Japanese controlled companies and cite other examples all while you have openly ignored every other example of American companies that don't coincide with what you want us to believe.

Quote:
1) Japanese companies or Japanese-funded companies tend not to have to pay for licensing (Naruto, Bleach, etc). This releases them from any pressure for break-evens... err.. I mean it lightens the burden for them.


Licensing will still be a factor because of commercial fairness laws and local distribution and the simple fact the studios want a huge chunk of change from domestic sales. When a different company licenses a title then they pay that flat licensing rate and they are then free to release that product for the duration of that contract. If it's the Japanese company then they aren't getting any of that money unless it sells, they still want to break even regardless so the cost remains relatively the same or becomes more of an issue because that company doesn't have the assurance that their money is coming back.

Quote:
2) Japanese companies have "ethical obligations" to the authors. They have reputations to save within Japan itself. And believe me, that goes a looong way.


Do they? And American companies do not? They aren't going to get many licenses if they don't follow the guidelines set by the producers, if anything they have greater obligations because their income relies on a continued partnership with another party. Those ethical obligations haven't gotten Japanese animators higher than what McDonalds pays and certainly hasn't prevented unreset to the point that some producers go independent or to other studios for later releases. They are businesses too, they have their product and now they want their money, if you think corporate practices are suddenly divine and perfect over there then you are fooling yourself.

Quote:
3) Yes, Toei and Bandai's examples are bad, but look at VIZ and Geneon as better examples. Yes, they have the super financial support, which lead to my statement that the world is better for anime fans; compare Geneon's packaging and menu designs. Pouring a lot of cash into packaging and marketing is the Japanese way of business. And while these same DVDs may go for 40-60 bucks in Japan, they don't charge nearly as much over here because they already know they can't get away with prices that high.


You put all the control in one entity and you only burn the consumers, history has taught this time and time again but apparently not enough. Geneon still magically generally has the highest priced releases out there and their packaging still pales in comparison to the likes of Funi.

People don't like what you have to say because what you're saying is incredibly bias and one sided to the point you'd do a politician proud, not to mention uninformed.
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orakga



Joined: 23 May 2005
Posts: 7
PostPosted: Wed May 31, 2006 12:30 pm Reply with quote
Keonyn wrote:
Quote:
p.s. Let it be known for the record that *some* companies (like MediaBlasters) have managed to prove me wrong on certain occasions and have shown hope for the American-owned Anime publishers. ADV has also started to clean up their act with the recent slim-paks as well. However, my point remains valid; the U.S. companies need to be TAUGHT what is right, while the Japanese companies already know what's right.


You really have no idea what you're talking about do you? For one thing, the costs are higher in Japan per episode than in the US, aren't available with subs generally and don't have multi-language dubs either.


ORLY?

YOU have no idea what you're arguing about. What you said above has NO relevance to what I'm talking about.

Also you don't seem to realize WHY the prices differ in Japan. But I don't waste my time trying to explain it. You have more basic training to do before that it seems.

Keonyn wrote:

Of the companies that you mentioned as the ones that should take over, reality is none of those companies have a dominant market share which is controlled by Funimation and ADV for the most part at this time. Of the cost involved in anime production domestically the bulk of that goes to pay for the licensing cost the studio asks for itself, so you can't really gripe about the price and then talk about how the Japanese companies are the only ones that know how to do it since it's their high licensing costs that are the root cause of the cost per episode.


LOL. What makes you think I am unaware of the licensing costs? What if my thesis DID take licensing costs into consideration?

Anyways, thanks for the lesson. I'm sure somebody else reading this learned something new today.

Keonyn wrote:

Your examples are minor extremes that in no way represent the domestic market as a whole, no matter how much you may like the night there is day as well and ignore the sun as you might it's still going to be there. Point is, if you want to focus only on the singular negatives then be my guest, but luckily others make it a point to look at the full spectrum.


I didn't have time to type out the full spectrum.
The negative extremes are meant to give you an IDEA of the sort of issues I was referring to.

Keonyn wrote:

Your mindless swearing doesn't exactly make you look good either and the fact you obviously only look at the few negative examples despite them being a major minority these days doesn't add to the credibility. Not to mention your whole tirade at the end had nothing to do with your reasoning as to why CPM went bankrupt. You got one thing right, CPM likely failed due to irresponsible use of their resources, the rest of your uninformed rant has little to no real bearing on the topic at hand.


Okay first of all, I apologize for the swearing. I think I got heated while talking about this whole thing. (I'm still bitter about a lot of the shit I paid for back in the days; my own fault I'm sure)

However, I don't belive my arguments are wrong.

I have followed the international Anime market since 1993, and even spent quite a few years in the industry itself in a managerial position, and also made a great number of acquaintances at CPM during that time and still share gossip with them for kicks. Oopss... I mean I *used to*; they just got laid off, I forgot.

I understand that there are other factors I didn't list, and from a consumer's PoV, I'm sure you believe some of those unaddressed issues are relevant to what is happening.

However, let me assure you my words as probably as accurate as it can get, since they come right from CPM's key staff.

----

On that note, I will leave this forum.

I came back here today knowing some people will try to argue back. And while some have been entertaining and valid (Tempest's one-word post and Gatsu's), a lot of y'alls really just don't know 1) what's happening in this industry or 2) how to argue.

And while I'd be more than happy to share what I know, I simply can't motivate myself to do so when people's best shot at arguing is "you don't know what you're talking about lollerbldz", or simple nitpicking.

Highschool is..... THAT WAY >>>>

Ciao.
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Tempest
I Run this place.
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Joined: 29 Dec 2001
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PostPosted: Wed May 31, 2006 12:39 pm Reply with quote
orakga wrote:
the fundamental issue here; CPM didn't have enough releases, and had made enough mistakes which lead to their current position. I don't think anybody can dispute this.


I agree with you on the issue. CPM's lagging has been eveidensed by a lack of licensing of quality, long running, high visibility series.

But to simply state that this is because they are an American company is rather silly IMHO.

Funimation, ADV and Media Blasters are perfectly good examples of American run companies that continue to license & release high visibility, profitable series.

Anime companies go bankrupt in Japan all the time, and anime is often treated like trash in Japan as well as by Japanese run companies in america. There really is no reason to think this is a matter of "Japanese knowing how to package anime better" for US markets.

CPM simply hasn't had the cash to keep up in the current super expensive licensing market. And they didn't have the cash to handle the loss of their biggest client. Does this mean that the company is unviable ? Not in the least, I won't say that they are, but I'd like to suggest that its quite possible for CPM to have been profitable for all these years, but not profitable enough to build up a large capital fund. When the creditor of a small company asks for all its loans to be repaid instantly, it doesn't matter if that company is profitable or not, it has trouble. Unless it can secure new investment, or a new creditor, the company is gone. And even profitable companies can't always get the required investment.

(Imagine your bank asking for you to pay back you mortgage by the end of the week, imagine this happens at a time when you are "between jobs" but have enough saved up to pay the mortgage for several months and expect to find a new job within a month or two. Despite your savings, as long as you are unemployed, you won't get a new mortgage (fortunately this type of situation is rare in personal banking, but in business banking similar situations unfortunately happen all the time)).

John O'Donnell is a fighting man, he won't give up on CPM. What remains to be seen is whether or not his tenacity will be enough to save CPM or not.

As I said before, I'm rooting for him...

-t
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Keonyn
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Joined: 25 May 2005
Posts: 5567
Location: Coon Rapids, MN
PostPosted: Wed May 31, 2006 12:58 pm Reply with quote
Quote:
Dude, you're totally changing what I said.
So I'm not going to argue against you, when you're not even arguing about the same thing as I.

You know what, you had the least intelligent post on this entire thread. Yes, you throw in true statements here and there, but your argument is just INVALID, because I never said some of the things you are arguing about.

Wake the fudge up. Get some coffee. Get some sleep. Go eat. Take a shit.

THEN try to read this thread again.
Either way, I won't be there when you are back.

I only replied to this because I noticed your reply.


Yet you claim mine was the least intelligent post here.

I know what you said, you might notice that I quoted exactly what you said, nothing was changed. In the first quote you talk about comparing intial releases of US to Japanese companies, hardly relevant as that has little to no bearing on releases now, end of story.

In the second instance you note how all he's doing is nitpicking, I simply noted that you were doing the same, ignoring the full issue and simply prodding the soft spots you knew would represent your viewpoint well.

In the third instance you make references to the economics of the licensing process and the earnings. I simply pointed out the factors you selectively ignored in your statement.

In the fourth you reference ethical obligations and reputations so I pointed out that they're not the only ones with obligations and that they aren't as saintly in that regard as you claim.

In the fifth I took your comment and simply pointed out the flaws yet again. Geneon is generally higher priced than the rest and that if you give full control to the studio's it generally only benefits that studio and not the consumer as you claim.

I know full well what you were saying, apparently you don't know what I'm saying. Either way, resorting to cussing and insults certainly doesn't represent yourself as intelligent so I'm not sure how you intended to flame my intellect effectively with a post such as that.
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Twage



Joined: 29 Jul 2003
Posts: 356
Location: North Bergen, NJ
PostPosted: Wed May 31, 2006 1:09 pm Reply with quote
Quote:
Well it's too bad, because your purchase came a few years too late. Alien 9 and Narutaru had also been out for years now (Alien 9 in 2003?), so what took you so long?


Hey, you're the one who asked. And Narutaru finished coming out in late 2005.

Quote:
Yes. It was indeed a good show.
But again, shows like that don't' make enough money. They are the novelty shows that companies who can afford to lose some money should be acquiring. Not a company that's already struggling for cash.

And who cares of Pokemon is crap. It makes money. Something CPM hasn't been making in the last few years.


I care, because I don't want to watch crap. And things like Kakurenbo and Narutaru and Doggie Poo and Votoms aren't "novelty shows," they're GOOD shows.

Quote:
Also, when did I say they should have picked up boobie shows? All I said was that their two-three 30 minute shows each year just wasn't cutting it in terms of cashflow.


I count at least four series (Votoms, Kizuna, Narutaru, Patlabor New), six one-shots (Negadon, Kuromi 2, Munto 2, Otaku Unite, Hammerboy, Kakurenbo, I'm sure there are some I'm missing), and countless manga releases and DVD re-releases announced or made over the past 12 months. So they're doing much more than "two-three 30 minute shows each year." But this is beside the point because I'm not especially averse to the argument that CPM could have made better choices from a business perspective.

Quote:
In any case, your post is just a series of nitpicks (It reminds me of the internet in the mid 90s), overlooking the fundamental issue here; CPM didn't have enough releases, and had made enough mistakes which lead to their current position. I don't think anybody can dispute this.


Again the selective memory rears its head. Let me jog your memory. My main contentions, which were not addressed in your response, were related to your statements that

Quote:
They've had a good run messing up packages and editing scenes to no end, and making a countless number of mistakes along the way. Companies like that simply cannot survive too long; especially after the Manga-ka in Japan gets a hold of the ugly DVD, and realizes what's happened to his precious creation.


and

Quote:
only the Japanese know how to properly package and sell Anime


To which I said:

Quote:
What?? CPM's Grave of the Fireflies release has arguably the best picture quality and extras of any release of that film IN THE WORLD. On all their releases their special features are consistently way above and beyond the call of duty. There are plenty of huge, successful companies that treat anime like product to be screwed with and make scads of money (4Kids, Shopro, etc). CPM is not one of them.


and

Quote:
Bandai is a shadow of its former self, and Viz and Geneon are far from dominant when you consider Funimation and ADV. And someone else has already mentioned the complete failure of Toei. And Sony has been a dismal anime licensor (Cyborg 009, Astro Boy). So no, you're completely wrong.


So how's about actually replying like a mature adult instead of dismissing me?


Last edited by Twage on Wed May 31, 2006 1:39 pm; edited 2 times in total
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Colonel Wolfe



Joined: 05 Aug 2004
Posts: 370
PostPosted: Wed May 31, 2006 1:21 pm Reply with quote
I have to agree that CPM hasn't had any quality releases in some time. World of Narue was a very good release for that title but I don't think they've released any newer titles or acquired any quality shows in some time. DOn't get me wrong, I thoroughly enjoyed the Hades Project Zerorymer releases, at around $6 each, they were worth picking up.

I would like to see Central Park Media acquire some of the newer titles being released in Japan but I think they mainly deal with releasing some of the older OVA's and movies and some shows than deal with newer shows. All in all, I'd be very interested in seeing them release more of those eighties and nineties anime titles ...
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Area88



Joined: 26 Jan 2006
Posts: 374
PostPosted: Wed May 31, 2006 1:22 pm Reply with quote
Yatta! CPM are releasing the rest of Votoms and Wrath of Ninja (Yotoden) after all.

CPM do have a future. My optimism from the previous statement appears to not have been blind.

Has there been a mistake on ANN's part? According to AOD's forum CPM are not filing for bankruptcy.

Did ANN's source misinterpret the Musicland bankruptcy for CPM?
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Twage



Joined: 29 Jul 2003
Posts: 356
Location: North Bergen, NJ
PostPosted: Wed May 31, 2006 1:32 pm Reply with quote
The scuttlebutt is that there will probably be no bankruptcy filing, though of course we can't be sure.

Heh. Scuttlebutt.
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doc-watson42
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Joined: 10 Feb 2003
Posts: 1708
PostPosted: Wed May 31, 2006 1:33 pm Reply with quote
Area88 wrote:
Has there been a mistake on ANN's part? According to AOD's forum CPM are not filing for bankruptcy.

Did ANN's source misinterpret the Musicland bankruptcy for CPM?

No—I was also at the Saturday Anime Boston panel, and the rep specifically confirmed that CPM was filing for bankruptcy (he had received "the call" about an hour and a half before Friday's panel, and that was the reason that he had not shown up for it), though he could not specify what type, telling us to wait for the official press release on Tuesday. That may have changed between then and now—perhaps Mr. O'Donnell was able to scrape up enough cash and/or cut enough costs (e.g., jobs) to satisfy his creditor for the short term.

Edit: Fixed a verb tense. ^_^;


Last edited by doc-watson42 on Wed May 31, 2006 1:35 pm; edited 1 time in total
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Twage



Joined: 29 Jul 2003
Posts: 356
Location: North Bergen, NJ
PostPosted: Wed May 31, 2006 1:34 pm Reply with quote
doc-watson42 wrote:
No—I was also at the Saturday Anime Boston panel, and the rep specifically confirmed that CPM was filing for bankruptcy (he had received "the call" about an hour and a half before Friday's panel, and that was the reason that he had not show up for it), though he could not specify what type, telling us to wait for the official press release on Tuesday. That may have changed between then and now—perhaps Mr. O'Donnell was able to scrape up enough cash and/or cut enough costs (e.g., jobs) to satisfy his creditor for the short term.


That's also what I had heard. It's probably that either the Boston rep was misinformed (very possible considering what a chaotic day that must have been) or that things changed over the weekend.

It's not a mistake on ANN's part, they were just going with what they had at the time.
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Area88



Joined: 26 Jan 2006
Posts: 374
PostPosted: Wed May 31, 2006 2:13 pm Reply with quote
Ah no problem, wasn't trying to blame ANN.

I was just curious if there had been a communication breakdown somewhere down the line as everything now seems to be all and well in camp CPM.
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Colonel Wolfe



Joined: 05 Aug 2004
Posts: 370
PostPosted: Wed May 31, 2006 2:37 pm Reply with quote
Most likely they're probably filing for Chapter 11 Bankruptcy Reorganization to restructure their company in the wake of the Musicland fiasco.
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GATSU



Joined: 03 Jan 2002
Posts: 15306
PostPosted: Wed May 31, 2006 3:32 pm Reply with quote
orakga:
Quote:
2) Japanese companies have "ethical obligations" to the authors.


Except when Toei gets so greedy that they make a Dr. Slump sequel without Toriyama's consent and shuts down the publication of Naoko Takeuchi's Sailor Moon in the U.S. and Japan, because they aren't getting a bigger piece of the pie.

Quote:
But let me ask you this (feel free to answer this one too), is this because you've finished buying everything you wanted from the other two already?


Not necessarily. I just am not that interested in Geneon's flashy but shallow action-adventure sagas and pseudo-arthouse epics, or ADV's teen angst dramas and harem shows.

Quote:
Don't get me wrong, there are a handful of good titles I purchased from CPM as well, but none of them were released after 2000. Which is exactly my entire point; they have nothing new to sell.


I just listed plenty examples of "new" titles from them.

Quote:
You can't judge Media Blasters for what they did BEFORE Berserk and Kenshin


Sure I can. I can also talk about how Geneon's only acquisitions when they were Pioneer were, for a long time, mediocre but flashy ovas from AIC, while ADV's only noteworthy titles before Evangelion were of the hentai kind.

Quote:
MB, unlike CPM, continued to invest in good shows after pulling off those mega hits, while CPM simply decided to spend it elsewhere.


I don't see how investing in a bunch of interchangeable Harlock spin-offs is a good investment.

Quote:
No. I'm not. AnimEigo does not have a staff of 40 people, at a Manhattan office, therefore, they don't *need* cashflow like CPM does.,


That's not the point I was making. They did quite well licensing "old anime", too.

Quote:
My point was that Genshiken is new, and the fans love it, NOW.


If "new" is what the fans want, then why are ADV and Geneon's stocks in the crapper?

Quote:
Slayers is going to become 10 years old by next Summer.


Escaflowne is ten years old, too, but Bandai made more money off it here than in Japan.

Quote:
The company just laid off everybody because they couldn't pay for their salaries. I don't see how I am wrong.


Because they're not done for yet.

Quote:
I wrote a thesis back THEN saying that the Japanese companies will eventually take control. They did.


And the only one which has got it right thus far is Shueisha.

Quote:
But what about Geneon, Bandai (come on they're not SO bad, are they? I'd take their stuff over ADV or CPM's) and VIZ?


Geneon stupidly chose to lose the last Tenchi to FUNimation, Bandai(as I pointed out earlier) got swallowed up by Namco, and Viz makes money, but they play it safe by toning down "mature" content for kids and charging more for less episodes than the competition.

Quote:
Bandai didn't get "swallowed up". It was a Merger. They kept their name (which comes BEFORE Namco, mind you).


And Square kept their name before Enix...

Quote:
Because their parent companies own the rights. VIZ has dibs on every manga-based anime which gets created out of Shueisha or Shogakkan's catalog.


But they're only going to release those which have wide appeal.

Quote:
I have followed the international Anime market since 1993, and even spent quite a few years in the industry itself in a managerial position,


Being a manager isn't the same as being a CEO.

Tempest:
Quote:
I agree with you on the issue. CPM's lagging has been eveidensed by a lack of licensing of quality, long running, high visibility series.


Yes, why can't CPM be like FUNimation and invest in a 400+ episode series like Detective Conan, simply because, "It's big in Japan, so it must be big here"?

Front page:

Quote:
A CPM spokesperson told us that, while the company is re-organizing, it is also heading forward with new releases.


Thank you for letting me finish Utena at your expense. I love you, John O' Donnell. Crying or Very sad
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Gawyn



Joined: 10 Feb 2005
Posts: 19
PostPosted: Wed May 31, 2006 4:08 pm Reply with quote
It's nice to hear they have some hope of a future after what appeared to be the definitive end for the company.

They are one of the few US companies I have regularly imported any anime from. I'm from the UK and many of the older classics don't get the respect they deserve from the distros over here, who simply treat them as a cheap way of making money so I was always glad to have CPM in the US to provide quality releases of those old shows Smile.

As for titles released by CPM a few spring to mind, including (but not limited to) Legend of the Dragon Kings, Alien 9 and Narutaru as titles I've purchased over the last few years. I certainly hope to see them spring back from their troubles in the future.
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ac_dropout



Joined: 05 Oct 2004
Posts: 88
Location: Newark, NJ
PostPosted: Wed May 31, 2006 8:45 pm Reply with quote
John is the heart and soul of CPM, if he believes it can survive then it shall.

Unless someone here has all of CPM business endeavor and decisions from BAAF to AnimeOne, it is kind of difficult to figure out where CPM went wrong.

Case in point. From BAAF I hear CPM came out on top when it charged the Republican convention to take it time slot 2 years ago. And from AnimeOne they are in litigation with a subsidary of SONY over infringement.

So not all income from CPM are derived from anime sales. Its a pretty diverse company when you look beyond the anime side of it.

I'm sure John will pull out of this.

As for the rest of the discussion....

It is not as simple as Japanese companies vs. USA companies.

The market is complex and is not as forgiving about mistakes as it use to be. Due to cost, change in market taste, and overall economic trends in the USA.
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