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INTEREST: Tokyo Keizai: Anime Industry Insiders Share Reservations About Netflix Streaming Model


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Ushio



Joined: 31 Jul 2005
Posts: 630
PostPosted: Wed Jun 10, 2020 7:41 pm Reply with quote
7jaws7 wrote:
The only good thing about Netflix is that it makes me appreciate the anime sitting on my shelf now more than ever. Fortunately, Violet Evergarden is the only show that I really want to add from its library; most anime they stream don't appeal to me at all.

That's not true for some fans though; hopefully the anime community can band together somehow and free a few of the really popular shows.


If Netflix is paying for the anime to be made rather than buying the rights to an anime already made then Netflix owns is permanently.

That's the issue when Neflix pays for a show to be made they pay it all upfront because the point of Netflix is that the show stays on Netflix for streaming forever.

Which is very different from how it traditionally was where a show aired once then had physical, rental and various licencing/syndication deals with other companies.

So Netflix pays more at the beginning but if a show becomes a breakout hit (which is very rare) then you don't get the ancillary income because other sales opportunities are lost.

Honestly I find the argument that Demon Slayer: Kimetsu no Yaiba becoming a hit couldn't happen if it streamed to be bullshit.

It grew from word of mouth because it's late night airing on it's own is a huge hindrance to gaining an audience (how many of the other 28 anime that aired in the same season can you name of the top of your head?) and the biggest money makers from that popularity the increased manga, music and merchandise sales would have happened.

Plenty of Netflix shows have seen huge popularity in the USA and Europe and as Netflix grows in Japan and gets more quality Netflix funded anime it will get hits.
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Ushio



Joined: 31 Jul 2005
Posts: 630
PostPosted: Wed Jun 10, 2020 7:45 pm Reply with quote
Kougeru wrote:
Quote:
Another issue, according to the management of an advertising firm, is that Netflix does not reveal viewership numbers at all to their partners. This makes it difficult to negotiate for a higher payment for the next streaming deal. A leader at one of the companies that participated in a well-known anime program is quoted as saying: "At this rate, we might become a subcontracting company to Netflix."



This should be reason enough to not bother. Without those metrics, how do you really gauge if the product you made was worth making? How do you gauge if it's worth making a season 2 or similar shows? You need to know how well something did so you can know what direction to go on the next one. No royalties is just insane but I heard that before



Well if Netflix wants to fund additional seasons it did well if they don't it didn't.

As to royalties Netflix pays more upfront because they don't sell shows on like traditional TV where a show airs on ABC then gets sold to syndication for example to TNT and then to various other countries as time goes on. Which is why royalties came to be.
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zrnzle500



Joined: 04 Oct 2014
Posts: 3767
PostPosted: Wed Jun 10, 2020 9:34 pm Reply with quote
Kougeru wrote:
I don't buy those responses. The fact that Netflix streams weekly in many other countries kills the argument on it's own but also that article claims Netflix needs to "drum up excitement" or whatever, but they've basically NEVER done that for anime. And there's also overall FAR more "excitement" with weekly shows. With Netflix shows, there's generally only a few weeks of excitement after a show/season comes out and then no one talks about it again until next season a year or so later. With weekly shows you get hype every week. Game of Thrones is one example - hype every week for 3 months. Netflix's experiment was interesting but it's time Netflix USA realizes most fans don't want to wait. I would bet my whole anime collection that their viewership on anime would go way up if they did weekly streams.


I'm not entirely convinced airing it weekly necessarily leaves a longer lasting impact vs streaming it all at once. The length of the discussion in time is longer, to be sure, but even with that, most shows are mostly just discussed while they are airing, and rarely brought up again until further seasons or end of year discussions, little different from Netflix shows streamed at once. A number of shows aired weekly barely elicit any discussion at all, during or after airing. I'm not certain what effect streaming all at once has isn't subsumed by other factors, like how much discussion a show warrants and how media is discussed in the age of social media and abundant new content. When there is dozens of new shows each season - or at least had been, before the current situation - the discussion moves onto the new stuff, as that generates more engagement than continuing to discuss stuff that has already ended. So I'm not sure people not actively talking about a Netflix show on social media and internet forums after a couple weeks is the result of its streaming model or just the outcome of how media is discussed nowadays and what audiences are most interested in discussing at a given moment. Unfortunately, without viewership numbers it will be hard to prove definitively whether Netflix shows as a whole are helped or hindered by its model.

Though, frankly, given they have been streaming anime like this for 6 years (specifically talking about Netflix Originals), I think if streaming it weekly would have bumped their numbers significantly, they would have done it a long time ago. Certainly they have done so differently in Japan, where they have to compete with TV, but even that is changing, with Trigger's BNA streaming in two 6 episode chunks in Japan and The Great Pretender set to stream similarly. If the weekly model had generated much more traffic, they would have continued to stream shows weekly after Violet Evergarden did (outside the US), instead of sticking with the binge model. Rather, I think it's well past time for us seasonal anime fans to realize that this Netflix model isn't an experiment anymore (outside Japan), and that maybe the reason they refuse to submit to our demands for simulcasts is that we are not the majority of their audience, even when it comes to anime.
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Rentwo



Joined: 05 Oct 2019
Posts: 184
PostPosted: Thu Jun 11, 2020 12:00 am Reply with quote
Ushio wrote:
Well if Netflix wants to fund additional seasons it did well if they don't it didn't


Netflix has a weird way of releasing seasons though. Some shows have 4 episode seasons, others 8, others 13, others 20. A lot of the time they're ordered in bulk and released in random batches. In cases like Stranger Things, where there's such a long pause between seasons, over a year, that they did probably order seasons and shoot them individually. So that's when we see reports of shows being cancelled and not renewed for another season. But for animation, a lot of the time they do it all at once and just release them in batches with only a few months between them, which indicates production was done being done continuously since it takes more than 3 months to do an episode of a show. Glitter Force released 70 episodes on Netflix, but more than likely they licensed and dubbed all 70 of those episodes at once in a batch order. But again, we'll never know unless they say something officially. The truth is we don't know if a series does well or bad on Netflix until they say it's not being renewed. There's no real other way to tell outside of maybe outside factors like merchandise lines not selling well and being cancelled very quickly, which has happened to a few kids shows on Netflix.
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kgw



Joined: 22 Jul 2004
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Location: Spain, EU
PostPosted: Thu Jun 11, 2020 3:46 am Reply with quote
Well, let us remember that anime industry was the same who thought "Streaming? What's that? Releases in DVD, two episodes for disk and that's all!"

Are Netflix conditions fine and fair? Not, from what I've read. But then again we got Crunchyroll and (you in the US/Canada) Funimation, etc.
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Agent355



Joined: 12 Dec 2008
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PostPosted: Thu Jun 11, 2020 5:00 am Reply with quote
I hate the binge model personally (nice to see other binge model haters here! Validation!) and I never liked Netflix not releasing their viewership numbers because I imagined it was frustrating for creators to never truly know how well their shows did. But I didn’t understand quite *why* they refuse to release viewership numbers—I assumed that they were just trying to protect reputations of shows that don’t perform as well as anticipated. The motive of not allowing studios/content creators to negotiate is far more nefarious. I guess business ethics hasn’t caught up with the streaming model, and we can only hope that some disgruntled employees release Netflix’s ratings to spite them and force their hand (or some sort of entertainment business legal regulation, but I think the former is more likely).
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chronium



Joined: 25 Apr 2005
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Location: Canada
PostPosted: Thu Jun 11, 2020 5:44 am Reply with quote
It sounds to me that those anime companies need better negotiators. Sure having the viewership numbers makes it easier for them but there are enough alternative ways to gauge popularity that they can rely on.
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Scion Drake



Joined: 25 Nov 2017
Posts: 941
PostPosted: Thu Jun 11, 2020 6:51 am Reply with quote
Beatdigga wrote:
Baki was one of the top 10 most viewed shows on Netflix in the US over the weekend. Not anime, shows period. With the dub delayed. It’s clearly a worthy investment. I just wish they were more transparent, since the company has published reports saying the production committee system needs to be upended.


I’m curious, how or where do you check for that exactly?
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Beatdigga



Joined: 26 Oct 2003
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PostPosted: Thu Jun 11, 2020 6:57 am Reply with quote
Scion Drake wrote:
Beatdigga wrote:
Baki was one of the top 10 most viewed shows on Netflix in the US over the weekend. Not anime, shows period. With the dub delayed. It’s clearly a worthy investment. I just wish they were more transparent, since the company has published reports saying the production committee system needs to be upended.


I’m curious, how or where do you check for that exactly?


The Baki thing was reported by Netflix themselves -

https://collider.com/top-10-netflix-tv-shows-list/

The report about Netflix wanting to upend the production committee system was from their tech blog. They cite anime as a big growth sector.

https://netflixtechblog.com/bringing-4k-and-hdr-to-anime-at-netflix-with-sol-levante-fa68105067cd

Netflix is far from perfect, but the alternative of two episodes per disk releases and airings edited once a week, personally curated by a guy whose taste is from the late 90’s on Adult Swim is way worse.
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AtoMan



Joined: 17 Sep 2012
Posts: 161
PostPosted: Thu Jun 11, 2020 7:03 am Reply with quote
Rentwo wrote:
Glitter Force released 70 episodes on Netflix, but more than likely they licensed and dubbed all 70 of those episodes at once in a batch order.


Of course it didn't.

Glitter Force was two shows dubbed at least one year apart, released in two batches each. Even then, the first season was in a can for a while due to licensing issues.

Rentwo wrote:
But again, we'll never know unless they say something officially.


What we do know, for a fact, is that the piracy numbers of the shows that Netflix is essentially taking hostage skyrocketed to the levels unseen since the simulcast model was adopted.
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Ushio



Joined: 31 Jul 2005
Posts: 630
PostPosted: Thu Jun 11, 2020 9:14 am Reply with quote
Agent355 wrote:
I hate the binge model personally (nice to see other binge model haters here! Validation!) and I never liked Netflix not releasing their viewership numbers because I imagined it was frustrating for creators to never truly know how well their shows did. But I didn’t understand quite *why* they refuse to release viewership numbers—I assumed that they were just trying to protect reputations of shows that don’t perform as well as anticipated. The motive of not allowing studios/content creators to negotiate is far more nefarious. I guess business ethics hasn’t caught up with the streaming model, and we can only hope that some disgruntled employees release Netflix’s ratings to spite them and force their hand (or some sort of entertainment business legal regulation, but I think the former is more likely).


No company releases viewership numbers they get leaked by third parties who are used because they need an impartial company when selling to there actual customer advertisers.

Netflix doesn't deal with advertisers so no need to use a third party to sell viewership figures. Not that viewership figures are worth much it's breaking down that viewership figure into various demographic groups.

Netflix also does share viewership figures with those they want to continue working with.

So if you sell a show to Netflix and they aren't interested in sharing their viewership figures, well then it did so badly they don't care about working with you anymore.

The majority of all TV/streaming shows flop it's just the way it is and it has nothing to do with quality.
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Greed1914



Joined: 28 Oct 2007
Posts: 4441
PostPosted: Thu Jun 11, 2020 9:28 am Reply with quote
LegitPancake wrote:
If Netflix doesn't have any say in international home video licensing after all, then that must mean Funimation, Sentai, and Viz (other than Castlevania, strangely) are simply uninterested in getting home video rights without streaming? Sentai seems to do it frequently with Amazon shows (which admittedly do eventually expire if Kabaneri can be explained) and they used to do it with Ajin and a couple other, and Funi used to do it with Seven Deadly Sins season 1, so why hasn't anything been licensed in NA from Netflix in over two years (other than Aniplex/Fate stuff)? Did Ajin and Seven Deadly Sins not perform well? Does Netflix charge a hefty sum to use the English dub? UK, German, and Australian companies seem to keep licensing Netflix anime, so I really don't know how to explain the situation if Netflix has no hand on the home video rights.


I've been trying to make sense of this for a while. Goodness knows there are several Netflix shows that I would gladly buy on disc, but can't. My best guess is that it comes down to cost. Even though Netflix has shown no interest in producing blu-rays, I think they still view at as a certain amount of competition with its streaming platform. I know my Ajin discs have a Netflix logo right next to Sentai's, so on some level I think they still have to approve it and probably don't want such a deal to be competitive with their streaming service so they, at the very least, make interested parties wait, and probably make it pricey, at least for the English version.

Like the article said, Netflix doesn't share its viewership data, not even with its production partners, so I could easily see where Funimation, Sentai, etc. decided that Netflix shows are too much of an unknown quantity for the price.

Sentai's situation with Amazon is a bit different. During the time that Amazon was trying to make Anime Strike a thing, it was the streaming platform for several shows that were actually licensed by Sentai. That arrangement, and Sentai's seemingly sudden spending spree certainly suggested that Amazon was footing the bill in large part, but legally, Sentai had the physical rights. Throw in that Amazon has basically thrown in the towel on doing its own thing with anime, and I doubt if they have much concern about those discs. Plus, they would likely see a bit of those sales coming their way in the end when people buy discs through Amazon.

As a big physical media collector, the situation bugs me a lot. I suppose there isn't as much risk of a show outright disappearing when Netflix produced it, but you're still stuck using it anytime you want to rewatch something. I've seen enough shows go by the wayside because a streaming service didn't want to retain rights, or switch to a different one because the owners decided they no longer wanted to share, so streaming-only is never a satisfactory status in my opinion.
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minakichan





PostPosted: Thu Jun 11, 2020 9:30 am Reply with quote
Megiddo wrote:
Well, knowing that there are no royalties and the production companies can't even get viewer metrics of their work for bartering future productions makes it so much easier to not worry about not subscribing to all these various streaming services.


That is for *Netflix*. Other services/distributors provide this information and pay royalties.

The thing to note (and why the comment was made 'If the anime is a hit, it's a win for Netflix. But if it's a loss, it's our win') is that 50-70 million yen per episode is a LOT. That's more than double, on average, what it costs to make the episode.

Aside from Netflix most license deals are a fee paid upfront + royalties later if the series is successful. If the series was going to be a big hit and another distributor would be paying royalties out the wazoo, then the production company "loses" because they could have made way more money from like a Crunchyroll or Funimation non-Netflix deal. But if the series was kind of a flop, the production company has literally made back 200-300% what it cost to make the anime up front, whereas a non-Netflix deal could have gotten them a smaller upfront fee and no royalties.

This is why the tone of the article is so mixed--we can't say "Netflix is good or bad" because it depends. It might have been bad for Kimetsu no Yaiba, but like... ID-0? B: The Beginning? Probably making bank from this Netflix deal.

LegitPancake wrote:
If Netflix doesn't have any say in international home video licensing after all, then that must mean Funimation, Sentai, and Viz (other than Castlevania, strangely) are simply uninterested in getting home video rights without streaming?


Not getting a license isn't the same as not being interested; for example, if such rights are not available.
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TarsTarkas



Joined: 20 Dec 2007
Posts: 5839
Location: Virginia, United States
PostPosted: Thu Jun 11, 2020 1:52 pm Reply with quote
Agent355 wrote:
I guess business ethics hasn’t caught up with the streaming model, and we can only hope that some disgruntled employees release Netflix’s ratings to spite them and force their hand (or some sort of entertainment business legal regulation, but I think the former is more likely).


It is not about ethics, but what both parties contracted out. It's a dog eat dog world out there, and you don't just give out your business secrets. You can't really complain about things you didn't contract out for.
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yuna49



Joined: 27 Aug 2008
Posts: 3804
PostPosted: Thu Jun 11, 2020 2:44 pm Reply with quote
AtoMan wrote:
What we do know, for a fact, is that the piracy numbers of the shows that Netflix is essentially taking hostage skyrocketed to the levels unseen since the simulcast model was adopted.

It certainly appeared that a lot of people were watching Carole & Tuesday way before it was released by Netflix.

I have no qualms about torrenting shows in cases like this. I'm a Netflix subscriber so they've gotten their money. Yes, in a narrow legalistic sense, I didn't pay for the rights to watch episodes weekly, but frankly, I don't care. Netflix and the production committees earn the same amount of money from me whether I wait for the show to be released or not.
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