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VORTIA
Subscriber
Joined: 26 Jul 2005
Posts: 941
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Posted: Sat Mar 26, 2022 10:06 am
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Remember how in the early 2000s Japanese record labels wouldn't allow their artists videos to be streamed because they wanted people to buy overpriced CDs, and Korean record labels uploaded all their stuff to Youtube for free, and now BTS plays in the U.S. Billboard Top 40 and J-Pop is a little known financial wasteland?
Yeah. Get ready for something similar.
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FilthyCasual
Joined: 01 Jun 2015
Posts: 2189
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Posted: Sat Mar 26, 2022 10:17 am
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So this is the first consequence of the merger, huh.
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Kougeru
Joined: 13 May 2008
Posts: 5527
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Posted: Sat Mar 26, 2022 10:25 am
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Crunchyroll about to lose 90% of their viewership. Not even kidding. Last I checked ad revenue was most their income too
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MFrontier
Joined: 13 Apr 2014
Posts: 11178
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Posted: Sat Mar 26, 2022 10:27 am
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Well that sucks, especially for those who mainly watch with ads.
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CastMember1991
Joined: 06 Feb 2012
Posts: 858
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Posted: Sat Mar 26, 2022 10:30 am
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Can't say I didn't see it coming, but disappointing nonetheless. I think that seeing how Netflix operates, as well as Sony's own faith-based streaming service Pure Flix (pretty much the Fox News of streaming entertainment) demonstrates, Sony probably thinks people will want a premium product at a premium price. They're known for quality products such as electronics (I own a wide variety of Sony tech, and their WH-1000XM4 noise-cancelling headphones are great), but that doesn't mean they have to cave and turn Crunchyroll into a premium service. What a shame.
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Mune
Joined: 20 May 2004
Posts: 376
Location: Minnesota
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Posted: Sat Mar 26, 2022 10:32 am
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ANN wrote: | Crunchyroll confirmed that with continuing anime, ad-supported viewing will not be available with episodes starting with the spring season, but episodes prior to the spring season will be available. |
Just not the current season, but prior seasons will still be available, meaning that spring 2022 won't be available for ad-supported viewing until summer 2022. Then, summer 2022 anime won't be available for ad-supported viewing until fall 2022. Rinse and repeat. Sounds like a mess, but the idea is that you pay to get the content quicker, and not just a week.
This also might be a way to curb some traffic, as we don't know what the current capacity for CR's servers is and what they can handle after this merger.
Meowtain Duwu wrote: | Won’t be shocked if people start sharing their accounts with friends and family once this starts… |
It's actually against CR's ToS, so I don't recommend it.
Netflix is also testing the CR model in other countries to eliminate shared accounts to maximize profits. Hulu and HiDive have multiple user accounts.
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Akemi Tachibana
Joined: 30 Aug 2014
Posts: 50
Location: Chesapeake, VA
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Posted: Sat Mar 26, 2022 10:33 am
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So instead of giving fans a legal free alternative to piracy, by watching anime free with ads that ads profits to Crunchyroll, they take that away so people will return to watching anime illegally on websites that do the same thing. Piracy websites will see a lovely increase in ad profits.
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Beatdigga
Joined: 26 Oct 2003
Posts: 4371
Location: New York
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Posted: Sat Mar 26, 2022 10:35 am
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This seems...unwise. Especially when you've made it a binary choice between it and the Hulu/Netflix drip down or just plain piracy, which seems to be more and more often, the anime fan's first choice when confronted with financial hurdles. (Seriously, "this VA said something I didn't like! PIRATE! This translator supported a political position! PIRATE!") With the market expanding as it is, restricting access is the absolute worst thing you can do.
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Wyvern
Joined: 01 Sep 2004
Posts: 1555
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Posted: Sat Mar 26, 2022 11:14 am
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Funny how Crunchyroll could afford to do free ad-supported streams for years when they were an independnt company, but now that they're owned by an $80 billion megaconglomerate suddenly they can't provide that anymore? This is just pure greed.
It's going to hurt anime in the long run, too. First Crunchy nearly monopolize the business with the Funimation merger, now they put everything behind a paywall. In the long run, all that does is mean fewer people will get into anime, which means fewer customers for Crunchyroll. The ad-supported streams were how a lot of kids and casual fans became more devoted fans, and now that's going to be over.
Sounds like another case of a huge company buying a business they don't actually understand.
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ErikaD.D
Joined: 09 Jun 2019
Posts: 659
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Posted: Sat Mar 26, 2022 11:16 am
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Crunchyroll is sending "F-ck you" to non-subscriber users, including those who are low income. Watch free with ads after one week model is dead. Won't be surprised if CR will raising prices like Netflix.
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Erufailon4
Joined: 18 Jun 2019
Posts: 193
Location: Finland
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Posted: Sat Mar 26, 2022 11:20 am
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Since ads can be blocked quite easily and the resolution was not limited, the only actual incentive for anyone to upgrade from the free plan to premium was always the one-week delay of new episodes. Now that wait is going to get even longer - possibly eternal - but I do wonder how much good it will actually do them.
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Yuvelir
Joined: 06 Jan 2015
Posts: 1558
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Posted: Sat Mar 26, 2022 11:30 am
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Just Passing Through wrote: | It's the Funimation NOW streaming model being applied to Crunchyroll. It's worth remembering that while the Crunchyroll name has been adopted for the company going forward, no doubt due to the name's market reach, it was Funimation that bought out Crunchyroll, not vice versa.
They obviously think that with the existing Crunchyroll subscription base, plus the Funimation NOW subscribers transferred over, plus the fraction of free users that bite the bullet and subscribe, they'll have enough to offset the lost ad-revenue. And if that isn't enough, they'll raise prices. It's not like they have any equivalent competing service now, is it? |
To be fair, they will raise prices even if it is enough.
CastMember1991 wrote: | They're known for quality products such as electronics (I own a wide variety of Sony tech, and their WH-1000XM4 noise-cancelling headphones are great) |
The last couple of headphones I've bought are from Sony and I must say, I'm quite displeased with them!
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sharkticon
Joined: 19 Jul 2011
Posts: 30
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Posted: Sat Mar 26, 2022 11:32 am
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Honestly, this probably would have happened without the merger and is probably the right move for the company, even if it does result in an increase in piracy.
You have to keep in mind, they make a small fraction of a cent per ad view. I have seen rates for streaming ads in the one third a cent per view range, so assuming no ad blockers, CR likely makes less than 2 cents per viewer watching 8 ads attached to an episode. Even assuming CR gets better than average rates, a free viewer would have to watch 250 to 375 episodes a month to bring in the same income as a $10 subscription, and the latter user is using less ancillary costs such as bandwidth. That 250 number is also still more than double the number of new episodes offered a month.
This last season, I watched one seasonal anime, and caught up on two seasons of another anime, so I watched about 36 episodes on CR. I pay for a $10 subscription, because I don't like waiting a week for new episodes. If I was a free member, and didn't use an ad blocker, they would have made about $0.75 off me.
Ad blockers are also probably the main driving force behind this, not the merger. Let's be honest, ads have gotten increasingly intrusive, and the only way to not have a user hostile web browsing experience is to use a ad blocker. From there, about 64% of millennials use ad blockers. So, we can probably cut their expected income per free viewer by about half.
The cold reality is, they probably break even if less than 5% of free viewers convert to $10 subscriptions. If 10% do, it will be a runaway success. And that is before including benefits such as reduced bandwidth costs from the free users no longer visiting, and no longer having to maintain the portion of their codebase related to those ads.
TL;DR - Yes it sucks, but it is the absolute right decision for Cruncyroll. This was always going to happen eventually. It likely has more to do with ad blockers than the Funimation merger.
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09jcg
Joined: 19 Sep 2006
Posts: 523
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Posted: Sat Mar 26, 2022 11:44 am
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Wyvern wrote: |
It's going to hurt anime in the long run, too. First Crunchy nearly monopolize the business with the Funimation merger, now they put everything behind a paywall. In the long run, all that does is mean fewer people will get into anime, which means fewer customers for Crunchyroll. The ad-supported streams were how a lot of kids and casual fans became more devoted fans, and now that's going to be over.
Sounds like another case of a huge company buying a business they don't actually understand. |
I think this is the biggest issue. I've been a paying subscriber for years, but I'm older and well into an established career. 14 year old me would never have been able to afford a subscription. I don't think I'm unique, in that as time went on and I began to have disposable income that I started paying for subscriptions. They're cutting off their future paying customers before they get a chance to become fans
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sharkticon
Joined: 19 Jul 2011
Posts: 30
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Posted: Sat Mar 26, 2022 11:48 am
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09jcg wrote: |
Wyvern wrote: |
It's going to hurt anime in the long run, too. First Crunchy nearly monopolize the business with the Funimation merger, now they put everything behind a paywall. In the long run, all that does is mean fewer people will get into anime, which means fewer customers for Crunchyroll. The ad-supported streams were how a lot of kids and casual fans became more devoted fans, and now that's going to be over.
Sounds like another case of a huge company buying a business they don't actually understand. |
I think this is the biggest issue. I've been a paying subscriber for years, but I'm older and well into an established career. 14 year old me would never have been able to afford a subscription. I don't think I'm unique, in that as time went on and I began to have disposable income that I started paying for subscriptions. They're cutting off their future paying customers before they get a chance to become fans |
Crunchyroll didn't exist when I was 14. I became a fan watching the Sci-Fi channel, Cartoon Network, and Saturday morning cartoons on various channels. Anime is even more culturally ubiquitous now. There will still be new fans.
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