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NEWS: Japanese BD/DVD Sales Down 5.1% From 2014, Anime BD/DVD Sales Down 6.9%


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Remington Steele



Joined: 06 Dec 2015
Posts: 63
PostPosted: Mon Mar 21, 2016 9:14 pm Reply with quote
With Japan cracking down on anime being shared digitally, I am not surprised of the decline of anime being purchased domestically and internationally. Word of mouth on how good an anime will be, is basically dead. At least that is how I am seeing it. Less people know or see, the less interested they are.

With all the anime companies out there. I am surprised they don't just add English subs and stream them from their own website and stop blocking international IP addresses from accessing said content. They limit the source and then wonder why sales drop year to year. It should be self explanatory...
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Greed1914



Joined: 28 Oct 2007
Posts: 4446
PostPosted: Mon Mar 21, 2016 10:08 pm Reply with quote
Actar wrote:
I find it very disconcerting that many people have no problem with moving to digital. Honestly, the lack of any proper means of ownership and the intangibility of content is just scary to me. It means that there's no more permanence and I'll always have to depend on the host servers to stay up for my content to be available (thanks DRM).


I'm right there with you. I had similar apprehensions when the push seemed to be toward downloading everything onto a hard drive, but I'm more apprehensive about the concept of streaming everything. Not only do servers have to be up for normal viewing, but what happens if a company goes under? You're basically stuck hoping somebody else decides that those shows are worth acquiring for themselves. I still take joy in knowing that if I want to revisit an old series, all I have to do is take it off the shelf and put it in the player, not maintain a subscription to a service and hope that service still has the old show available.

Seeing articles like, "Here's what is Leaving Netflix Next Month," doesn't fill me with confidence for a future without physical media. Sure, Netflix might reacquire those movies, but only if they are worth the money, and not necessarily at a time when I want to watch them.
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mangamuscle



Joined: 23 Apr 2006
Posts: 2658
Location: Mexico
PostPosted: Tue Mar 22, 2016 1:27 am Reply with quote
Greed1914 wrote:
I'm more apprehensive about the concept of streaming everything.


A heads up, the 4k blurays have to "download the decryption key from the Internet" so if the servers fails, the company gets greedy or a court does a repeat of the "Nosferatu, destroy all the copies", well, said discs are no better than a streaming subscription.
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Haterater



Joined: 30 Apr 2006
Posts: 1727
PostPosted: Tue Mar 22, 2016 1:48 am Reply with quote
If it comes to a point that I need an internet connection every time I want to watch my physical media goods, I might have to give it up. I should be able to watch it any time I want without worrying to go online to activate it. Especially if its not a one-time activation.
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relyat08



Joined: 20 Mar 2013
Posts: 4125
Location: Northern Virginia
PostPosted: Tue Mar 22, 2016 2:28 am Reply with quote
mangamuscle wrote:
Greed1914 wrote:
I'm more apprehensive about the concept of streaming everything.


A heads up, the 4k blurays have to "download the decryption key from the Internet" so if the servers fails, the company gets greedy or a court does a repeat of the "Nosferatu, destroy all the copies", well, said discs are no better than a streaming subscription.


Oh FFS, is that seriously going to be a thing? I don't think I'll ever buy a single one if that is true. On the bright side, I highly doubt BDs are going anywhere any time soon. So I can just keep collecting those for as long as they keep making them, I guess.
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enurtsol



Joined: 01 May 2007
Posts: 14781
PostPosted: Tue Mar 22, 2016 3:35 am Reply with quote
The home video market almost everywhere has been decreasing for years, though it seems to have already bottomed out in N. America at about $17 Billion (so compared to that, the Japanese home video market of $1.96 Billion is tiny - imagine, without Frozen, Japan's home video market would've been even smaller in 2014).


Engineering Nerd wrote:

That is very understandable, since 2014 we have monster-seller series like Love Live!, Haikyuu, Yukai-watch etc; as well as numerous 10000+ and 7000+ sellers.

TheAAA wrote:

I feel like none of you read the article. They straight up say the data combines sales of anime and general animation, including international stuff. Meaning 2015 sales are down because 2014 had Frozen. It's more like 2014 sales were unusually high.


And still, "2014 saw an overall decrease of 8.7% from 2013."


DmonHiro wrote:

If only the market would understand it should make LESS anime per season, producers wouldn't be losing so much money of shows that are competing for the exact same limited demographic.


Yeah, even if all the anime produced are of high quality, about half of the shows would still lose money because they're competing for the same limited demographic that only has so much money to go around. Ya can only squeeze so much blood from a stone.


SilverTalon01 wrote:

Also a lot of the shows competing over the same demographic aren't anime original so even if the anime itself loses money, there might be money made elsewhere.


Might or might not, it's not good business to start out with a loss leader. Ya already dug yourself a hole that ya may not climb out of from, and even if ya make money elsewhere, ya may end up just even, just enough to pay off the hole ya dug. Then might as well had invested in the stock market and grow your money.

In any case, an anime loss leader is bad for the anime studios and animators who'd see their budgets continue to shrink instead of growing as a business.


Inopethflames wrote:

I'm pretty sure the main point if this article is just to show how how physical disc sales are going down. Maybe it's still popular in Japan, but who buys dvd's still?? Not many in America. I think apparently overall anime money/sales are up, and that should continue with the fact that streaming makes it so much more accessible to the entire world, and anime companies are now getting money from that, which didn't even exist like 5 years ago or something, for the most part. Even if Japan is slow to adopt streaming, the money will come in for around the globe and the anime industry should be in great shape for the next few years.


AJA trends in Japanese animation market - streaming revenue won't be enough to cover the decline in home video disc sales.

Streaming is slow to take hold in Japan since mega-industries are run by old conservatives who are risk-averse to anything they don't understand. It also doesn't help that media rights issues are tangled spaghetti amongst different members of production committee. Japan had all this time to launch their own streaming services, but it took foreign services like Hulu and Netflix to come in and provide the services for them.

Here's the Japan market via AJA:



Top chart is broad animation market. 4-Internet distribution is fourth from the bottom, very small. 5-Merchandise (green) is largest by far, followed by 7-Overseas (maroon) then 8-Pachinko (beige, now ya know why Konami), then 3-Video (purple) then 1-TV (pink) then 2-Movies (cyan).

(Bottom chart is limited market of anime studios revenues. As ya could see, anime studios revenues are overwhelmingly smaller than the broad animation market - studios only get a portion of the monies, so pay is poor.)


yuna49 wrote:

From all I've read streaming is still pretty uncommon in Japan which seems to fly in the face of the "small homes mean small collections" hypothesis. I suspect the slow adoption of streaming has more to do with the producers' and distributors' policies than demand from consumers, but I really haven't seen much that explains well the slow adoption of streaming. One reason might be that a lot of Japanese households do not own PCs. In 2013 the figure was just 57% nationwide. In contrast, as early as 2007 Nielsen reported that 88% of Korean households owned a PC.


Unfortunately, PCs are still mainly seen as for work in Japan - it's something they do at work, not something to do at home for fun. Instead, they use their cellphones for that, since it's mobile and they spend their days longer for school/work and commuting.

There are many other devices besides PCs for streaming nowadays like Roku and Chromecast. It's just that Japanese businesses are slow to put stuff up on streaming devices.


Valhern wrote:

Does anybody here know the economical situation in Japan overall in those two years?


Japan’s economy grew 0.5% in 2015 after flat-lining in 2014.


Valhern wrote:

Is there inflation? Are salaries discussed between syndicates (if there are any) and government? Is school/university mostly private and if it is, how hard is it to mantain it? And cars, are they easy to mantain too? How is the unployement?


The Abe administration BOJ monetary policy has been trying to create inflation to reverse the deflation trend of the 2 "lost decades"...... unsuccessfully (good or bad, up to you). They've been trying to increase prices and sales tax and been urging businesses to increase labor pay to match (suffice to say, prices increase but labor pay do not).

Unemployment is still low due to the increase usage of part-time temp workers in lieu of higher-paid full-time staff.


yuna49 wrote:

Most viewers watch a series once and never watch it again so they don't see a downside to streaming like you do. People on ANN are much more committed to physical media than anime viewers on sites like MAL. Of course, a large fraction of those viewers don't pay anything for the content they consume.

I'm much older than the general MAL audience, and I do subscribe to streaming services and buy the occasional disc. But I, too, generally don't have much interest in watching series multiple times.


With the prevalence of anime nowadays like watching TV, it's become like TV more as a commodity and less something special to keep when it was scarcer.


TarsTarkas wrote:

Everyone is a doomsayer nowadays. PC gaming is dead,


PC disc buying may be dying, but PC gaming is growing thanks to Steam and MOBA e-sports, such that even Microsoft (who neglected PC gaming after their failed Games For Windows initiative) is now focusing back on it.


TarsTarkas wrote:

As long as Japanese fans are happy to fund the current anime model, nothing will change. And there is no indication that is changing anytime soon.


Though all the while the current anime model may continue to shrink.


relyat08 wrote:

On the bright side, I highly doubt BDs are going anywhere any time soon. So I can just keep collecting those for as long as they keep making them, I guess.


Until "BD quality" becomes not good enough like "DVD quality" is becoming
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Malcolm Whatley



Joined: 28 Aug 2015
Posts: 20
PostPosted: Tue Mar 22, 2016 4:46 am Reply with quote
This was a repeat of your previous post. --willag
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Crisha
Moderator


Joined: 21 Apr 2010
Posts: 4290
PostPosted: Tue Mar 22, 2016 8:32 am Reply with quote
dark13 wrote:
See I'm not sure if I should see this an attack or as a insult from you, I try to stay away from these types of Discussion But I needed to say my piece before I left, also where did I overquote in this thread ?

It's not an attack, it's a moderator request. The fourth rule of this site is to use proper English grammar and punctuation. Zalis116 has pointed out where you previously overquoted.
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SilverTalon01



Joined: 02 Apr 2012
Posts: 2403
PostPosted: Tue Mar 22, 2016 9:38 am Reply with quote
enurtsol wrote:
The home video market almost everywhere has been decreasing for years, though it seems to have already bottomed out in N. America


In general, but I'm pretty sure anime disc sales specifically have been going up in the US.

enurtsol wrote:
Might or might not, it's not good business to start out with a loss leader. Ya already dug yourself a hole that ya may not climb out of from, and even if ya make money elsewhere, ya may end up just even, just enough to pay off the hole ya dug. Then might as well had invested in the stock market and grow your money.


There is always a might or might not when marketing a new good or service. Why do people ever do that instead of investing in the stock market? Since you're missing it, I'll answer.

A reasonable investment will only return the market rate because in general the market does not reward you for taking on diversifiable risk. There are a couple of ways around that. You could look for arbitrage or look for a risk seeking investment. The former isn't easy to do. The latter is quite likely more risky than them making a unique offering such as a new series which has the potential to have a higher return than a diversified market investment.

The thing is that there isn't that great of an indication which series will be mega hits. Take Infinite Stratos. It was 'just another LN adaption' of a not super popular LN. It ended up with massive disc sales and the anime caused the books to break a million sales that year. A lot of the lower budget shows also don't need to make all that much to just break even. They can make up for a large number of minor losses with even one reasonable hit.

Your chart either puts LN/Manga sale boosts under merchandising or disregards it entirely. If it is the former, notice that was growing.

Also licensing fees are going up so they're making more money from that than previously.

Even without streaming taking hold to make up for lower disc sales, there are still other things that can make up for that.
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relyat08



Joined: 20 Mar 2013
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PostPosted: Tue Mar 22, 2016 12:41 pm Reply with quote
enurtsol wrote:

relyat08 wrote:

On the bright side, I highly doubt BDs are going anywhere any time soon. So I can just keep collecting those for as long as they keep making them, I guess.


Until "BD quality" becomes not good enough like "DVD quality" is becoming


Aye, but DVDs are still around 13 years after the advent of Blu-ray, and many think they will go strong for a while even still. Even if Blu-rays become like DVDs, they'll stick around for a good long while.
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mangamuscle



Joined: 23 Apr 2006
Posts: 2658
Location: Mexico
PostPosted: Tue Mar 22, 2016 12:52 pm Reply with quote
relyat08 wrote:
Aye, but DVDs are still around 13 years after the advent of Blu-ray, and many think they will go strong for a while even still. Even if Blu-rays become like DVDs, they'll stick around for a good long while.


Aye, Blu-rays are the new Internet Explorer 6 in the sense that long after DVD become the new VHS (as in "out of the market"), companies will try hard to push Blu-ray 4k and probably another new format (with even more DRM) but most people will continue to use blu-ray because we aren't buying 4k screens (unless I get a new bigger house) nor there is that big of an improvement from regular blu-ray, heck, most animes are still created at 720p (and many of them don't fill the screen with detail) and watching Fuller House in 4k is a waste of pixels.
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SilverTalon01



Joined: 02 Apr 2012
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PostPosted: Tue Mar 22, 2016 3:09 pm Reply with quote
I wonder if 4k will ever really pick up for anime anyway. I mean a lot of anime blurays (maybe less somewhat more recently) don't even have true 1080p and it is just a 720p upscale. If it isn't actually produced in 4k, a 4k bluray is pretty pointless.
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Hoppy800



Joined: 09 Aug 2013
Posts: 3331
PostPosted: Tue Mar 22, 2016 3:20 pm Reply with quote
mangamuscle wrote:
Greed1914 wrote:
I'm more apprehensive about the concept of streaming everything.


A heads up, the 4k blurays have to "download the decryption key from the Internet" so if the servers fails, the company gets greedy or a court does a repeat of the "Nosferatu, destroy all the copies", well, said discs are no better than a streaming subscription.


4K BD is a piece of garbage and not worth it right now. No consumer protections whatsoever, what we need is a Steam for anime.
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TarsTarkas



Joined: 20 Dec 2007
Posts: 5842
Location: Virginia, United States
PostPosted: Tue Mar 22, 2016 4:18 pm Reply with quote
enurtsol wrote:

Though all the while the current anime model may continue to shrink.


Considering the amount of anime we are getting, I don't see a shrinking anime model.

I don't see the numbers as a shrinking market, but just a normal fluctuating market.
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Ambimunch



Joined: 30 Aug 2012
Posts: 2012
PostPosted: Wed Mar 23, 2016 1:41 pm Reply with quote
In my opinion, ever since 2004 we've been getting shit shows more and more. Look at 2015, how many shows were actually good? Not many. Hence the decline. 2004, in contrast, had one gem after another - or at least lots of fun and original stuff in those years many of which are considered classics.
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