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NEWS: Crunchyroll to Halt Ad-Supported Streaming Starting With Spring 2022 Season


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Cardcaptor Takato



Joined: 27 Jan 2018
Posts: 4852
PostPosted: Sun Mar 27, 2022 5:48 pm Reply with quote
Quote:
They should get anime, but ideally it should be through companies that are actually located in those markets, and have a better understanding of viewers' languages, cultures, preferences, and economic situations. US anime distributors should not be expected to service the entire world and take on every risk. If CR and the like are providing a paltry or inadequate selection to these regions, surely there's room for local competitors to enter the market -- the US-based juggernauts can't simultaneously be too dominating and too neglectful.
Whether or not it should be done by local companies, Crunchyroll positioned themselves as the global leader in streaming anime and their worldwide numbers is something they brag about in all their marketing. It's not fair to those developing countries that they should have the free streaming option cut off from them because of a situation created by US companies cutting off all their competition and now that it's too late realizing that creating a monopoly might not be the best scenario if they're now realizing owning 90% of all anime is too expensive for them.
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Top Gun



Joined: 28 Sep 2007
Posts: 4585
PostPosted: Sun Mar 27, 2022 8:18 pm Reply with quote
Zalis116 wrote:

I don't know, why do you feel the need to throw out "Yar har fiddle-dee-dee" one-liners every time this topic comes up? I would say that the piracy-driven crash of 2007 drove distributors and dubbing companies whose work I enjoyed (such as Geneon / Bandai / CPM / New Generation Pictures / Ocean / etc.) out of the anime business, but believe it or not, I'm not against piracy itself. I'm against the dishonesty, ignorance, and hypocrisy that so often goes along with it, and since Newell/Steam are the ones propagating the "service problem" lie, I make fun of them when pirates give away the game and reveal that piracy in well-served regions is really about the money.

Even if the ads on CR had more variety and were perfectly placed at the original eyecatch point and before/after OP/ED (i.e. where they were in the original broadcasts, where Japanese fans somehow survived them just fine), there'd still be complaints and Jolly-Roger waving over "breaking my immersion."

Look, I'll freely admit that I'm rather glib in my replies to articles about this topic, but that's because I find so much of how the industry presents the issue to be laughable at best. (Hell, just yesterday we had an ANN headline offering further proof that the MPAA will never live down the "download a car" nonsense.) If you want a more measured response, I think this is a bad decision for Crunchyroll, at least in terms of optics if not financials. I do agree with several earlier posts that this probably won't affect their bottom line all that much: they can't be making a massive amount of profit from ad impressions, and the small percentage of free users that wind up subscribing will probably make up for it, or at least get near enough not to matter. But it's just a bad look to me: here you have this avenue where people can still legally support the industry for free in some small way, one that's existed for as long as Crunchyroll has been a legal service, and now it's being phased out. And it's being done with the full knowledge that anyone who's not willing to jump on board and start paying will almost certainly find their way to one of a myriad of shady illegal streaming sites out there. Kind of a wink-wink-nudge-nudge decision, at at least in my opinion.

As far as what you said about the 2007 crash, I disagree that piracy was the root cause, though I'm not naive enough to think that it wasn't a factor. From that legendary Geneon episode of ANNCast as well as other articles I've read over the years, the real issue seemed to be that of an inflationary bubble. Domestic distributors were all trying to outbid each other and snap up every single license they could, sometimes paying out six-figures-per-episode contracts for titles that had zero hope of ever recouping that investment. (Good ol' Heat Guy J...) Domestic releases still almost entirely consisted of paying $30 for 3- or 4-episode singles, with discounted collections only coming much later (if ever), and the industry was far too sluggish to pivot to more consolidated sets. Even the most popular series would take months or even years to make their way stateside. Then the global financial crisis hit, and the bottom completely fell out.

I say all of this because I know we've had a back-and-forth about the "service problem" strawman before, and here's the thing: just as it proved to be true in the case of Steam, it also proved true for the anime industry. I mean come on, Crunchyroll is literally the embodiment of giving (most) people what they want, and seeing fabulous success in doing so! Legal streaming became a thing, and then simulcasts and simuldubbing, and people were getting their anime about as quickly as viewers in Japan were. And Crunchyroll's subscriber counts have shown that a lot of people are more than willing to pay for it. Even on the physical release side you saw the retirement of singles in favor of 13-episode sets, with plenty of cheaper re-releases, and obviously those have worked well too because they've been a fixture for over a decade. Now are there still people who will exclusively pirate despite all of these other options? Of course, and there always will be. You're never going to eliminate piracy. But there are also a hell of a lot of people willing to pay for these new ways for consuming anime, because their own needs are being served by what the industry has accomplished over the past decade.
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Kusakabe



Joined: 22 Jan 2018
Posts: 98
PostPosted: Sun Mar 27, 2022 8:45 pm Reply with quote
I don't know how anyone managed to use Crunchyroll without paying for it. So many things are locked behind the subscription...
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BonusStage



Joined: 24 Oct 2011
Posts: 307
PostPosted: Sun Mar 27, 2022 10:06 pm Reply with quote
Kusakabe wrote:
I don't know how anyone managed to use Crunchyroll without paying for it. So many things are locked behind the subscription...


I've never paid for Crunchyroll. To be fair, I never used it much to begin with either. I usually only used it if I just wanted to watch a random episode to double-check something in a show since it was pretty easy/convenient to do so. It seems okay for a casual viewer in that sense.

But I guess this kind of move was inevitable for them. Every other big streaming service is pay to view only and CR stood out by letting anyone watch their catalog for free.
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Sheenoobuu



Joined: 17 Sep 2019
Posts: 80
PostPosted: Sun Mar 27, 2022 11:19 pm Reply with quote
brynhild wrote:
Maybe I'm just not thinking about it from the right angle, but I really can't see how this benefits the company. I only see them losing viewers from this move.


My best guess is that they want to see how the turnover rate is on who quits the service vs who joins, if the numbers are high enough for them, then this is how it is. But if the numbers aren't high enough then maybe they'll claim the backlash was too much and go back. Either way this experiment benefits them just to see the data.
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blooperboy



Joined: 28 Dec 2021
Posts: 131
PostPosted: Mon Mar 28, 2022 12:50 am Reply with quote
I just have my fingers crossed that they actually go any make the site and app user-friendly since they're going to be the only game in town. I've found myself in the 'fun' position of having a CR subscription but watching the shows on, less than legal sites, because the user interface is so bad. Like, take my money I want to support the industry but by golly PLEASE take some of that money and actually invest it into the web infrastructure.
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taster of pork



Joined: 11 Nov 2008
Posts: 594
Location: My House
PostPosted: Mon Mar 28, 2022 1:48 am Reply with quote
Top Gun wrote:
Zalis116 wrote:

I don't know, why do you feel the need to throw out "Yar har fiddle-dee-dee" one-liners every time this topic comes up? I would say that the piracy-driven crash of 2007 drove distributors and dubbing companies whose work I enjoyed (such as Geneon / Bandai / CPM / New Generation Pictures / Ocean / etc.) out of the anime business, but believe it or not, I'm not against piracy itself. I'm against the dishonesty, ignorance, and hypocrisy that so often goes along with it, and since Newell/Steam are the ones propagating the "service problem" lie, I make fun of them when pirates give away the game and reveal that piracy in well-served regions is really about the money.

Even if the ads on CR had more variety and were perfectly placed at the original eyecatch point and before/after OP/ED (i.e. where they were in the original broadcasts, where Japanese fans somehow survived them just fine), there'd still be complaints and Jolly-Roger waving over "breaking my immersion."

Look, I'll freely admit that I'm rather glib in my replies to articles about this topic, but that's because I find so much of how the industry presents the issue to be laughable at best. (Hell, just yesterday we had an ANN headline offering further proof that the MPAA will never live down the "download a car" nonsense.) If you want a more measured response, I think this is a bad decision for Crunchyroll, at least in terms of optics if not financials. I do agree with several earlier posts that this probably won't affect their bottom line all that much: they can't be making a massive amount of profit from ad impressions, and the small percentage of free users that wind up subscribing will probably make up for it, or at least get near enough not to matter. But it's just a bad look to me: here you have this avenue where people can still legally support the industry for free in some small way, one that's existed for as long as Crunchyroll has been a legal service, and now it's being phased out. And it's being done with the full knowledge that anyone who's not willing to jump on board and start paying will almost certainly find their way to one of a myriad of shady illegal streaming sites out there. Kind of a wink-wink-nudge-nudge decision, at at least in my opinion.

As far as what you said about the 2007 crash, I disagree that piracy was the root cause, though I'm not naive enough to think that it wasn't a factor. From that legendary Geneon episode of ANNCast as well as other articles I've read over the years, the real issue seemed to be that of an inflationary bubble. Domestic distributors were all trying to outbid each other and snap up every single license they could, sometimes paying out six-figures-per-episode contracts for titles that had zero hope of ever recouping that investment. (Good ol' Heat Guy J...) Domestic releases still almost entirely consisted of paying $30 for 3- or 4-episode singles, with discounted collections only coming much later (if ever), and the industry was far too sluggish to pivot to more consolidated sets. Even the most popular series would take months or even years to make their way stateside. Then the global financial crisis hit, and the bottom completely fell out.

I say all of this because I know we've had a back-and-forth about the "service problem" strawman before, and here's the thing: just as it proved to be true in the case of Steam, it also proved true for the anime industry. I mean come on, Crunchyroll is literally the embodiment of giving (most) people what they want, and seeing fabulous success in doing so! Legal streaming became a thing, and then simulcasts and simuldubbing, and people were getting their anime about as quickly as viewers in Japan were. And Crunchyroll's subscriber counts have shown that a lot of people are more than willing to pay for it. Even on the physical release side you saw the retirement of singles in favor of 13-episode sets, with plenty of cheaper re-releases, and obviously those have worked well too because they've been a fixture for over a decade. Now are there still people who will exclusively pirate despite all of these other options? Of course, and there always will be. You're never going to eliminate piracy. But there are also a hell of a lot of people willing to pay for these new ways for consuming anime, because their own needs are being served by what the industry has accomplished over the past decade.
Could you elaborate on what Geneon said?
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AJ (LordNikon)



Joined: 14 Apr 2009
Posts: 504
Location: Kyoto
PostPosted: Mon Mar 28, 2022 5:44 am Reply with quote
JoelBurger wrote:
Mune wrote:
If you think waiting 3 months to watch something for free is too long, I'm calling you entitled. As a child, I had to wait years from the initial air date and months between episodes, (oh, the dark ages of anime or as some call them, the age of great anime).


Yes, clearly things should never get better, because they weren't good when you were a child. What a smart and totally not psychotic viewpoint on things.


I love all the ageist comments on here. I guess that it's ok to call people out and ridicule them on their age. Everything else is as always off-the-table. Inclusion and safe space my ass as my kids would say Rolling Eyes
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SHD



Joined: 05 Apr 2015
Posts: 1752
PostPosted: Mon Mar 28, 2022 5:57 am Reply with quote
AJ (LordNikon) wrote:
JoelBurger wrote:
Mune wrote:
If you think waiting 3 months to watch something for free is too long, I'm calling you entitled. As a child, I had to wait years from the initial air date and months between episodes, (oh, the dark ages of anime or as some call them, the age of great anime).


Yes, clearly things should never get better, because they weren't good when you were a child. What a smart and totally not psychotic viewpoint on things.


I love all the ageist comments on here. I guess that it's ok to call people out and ridicule them on their age. Everything else is as always off-the-table. Inclusion and safe space my ass as my kids would say Rolling Eyes

Yeeah, in this case? Nope. As an older person myself I'm all against ageism, but frankly I agree with those who say that it's ridiculous to say that things that were slow/difficult/problematic when I was young should not improve and young people today are entitled to expect better, especially considering the considerable improvements that make that thing possible in the first place. (I mean back when I was a child we had to wait a year to get landline phone when we moved within the same city, would people today be entitled for expecting it to be done sooner, and should stop complaining and be grateful that it's being done at all?)
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SpiritSmoocher



Joined: 06 Mar 2021
Posts: 182
PostPosted: Mon Mar 28, 2022 6:23 am Reply with quote
Considering how funimation locked nearly all the gundam shows behind paid subscriptions and still a bunch of gundam you have to buy the blu ray to legslly watch, i say crunchyroll is going to take it a step further and start locking more shows that were once free to being paid only. This will not only reduce bandwidth but make people buy discs.
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Alan45
Village Elder



Joined: 25 Aug 2010
Posts: 9853
Location: Virginia
PostPosted: Mon Mar 28, 2022 7:33 am Reply with quote
In my experience, every time a major change to a business comes out that is not obviously favorable there will be a period of yelling, cursing, wailing and gnashing of teeth. When this subsides things go back to normal. (in this case most subscribers will go back to subscribing and most pirates will go back to plundering.) I'm sure Sony is well aware of this, which explains why this change is coming out on top of the merger, the incomplete transfer of assets from Funimation to Crunchyroll and the dropping of a number of shows. They are basically putting all of their rotten eggs in one basket.

This too will pass and fandom will find some new reason to express outrage.
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kgw



Joined: 22 Jul 2004
Posts: 1071
Location: Spain, EU
PostPosted: Mon Mar 28, 2022 7:56 am Reply with quote
Well, I think neither Disney, HBO, Netflix or Amazon offers ad-supported content for free, but when CR does it is bad because… "Anime should be free?", I guess.

There are free (and legal) anime channels at Youtube and free (ad-supported) streaming services, too, btw.

EDIT: I agree with the poster right above me.
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BigOnAnime
Encyclopedia Editor


Joined: 01 Jul 2010
Posts: 1231
Location: Minnesota, USA
PostPosted: Mon Mar 28, 2022 8:37 am Reply with quote
taster of pork wrote:
Could you elaborate on what Geneon said?
Link to ANNCast in question:
animenewsnetwork.com/anncast/2009-12-03
animenewsnetwork.com/audiovideo/anncast/anncast017.mp3

I'd really recommend listening to the ANNCast yourself, but here's a few things of note:
-Budgeting for shows that they knew would get licensed by others.
-They overprinted stuff and the retailer returns hit them hard. This is ultimately the biggest factor in them going under. Everyone overprinted back then, but Geneon was king at it. Here's a screenshot I took in October 2014 for RightStuf's stock of eX-Driver: The Movie. RightStuf only recently FINALLY sold out of it after 17 years. Geneon really overestimated the demand, the OVA series did just "okay" for Media Blasters.
-They thought sports anime would be the next big thing when those never did well. It's only recently sports anime have finally become viable on home video here (Ex: Free!, Haikyu!!). They historically did poorly, and this remained the case in like 2009. Hajime no Ippo bombed very hard for Geneon, though it's doing far better for Discotek. If you wanted to lose a lot of money, licensing sports anime is what you would do to accomplish that.
-They paid so much for Demon Lord Dante they needed to sell 30,000 units just to break-even. For how absurd that is, one of Bandai Entertainment's top 5 best-selling anime was Haruhi (bottom of article) which sold 80,000 copies per volume. They needed all-time best-selling sales for a Go Nagai title when those never did that well.
-What they spent to get Heat Guy J was roughly the same amount FUNimation spent on Fullmetal Alchemist. They paid so much because Heat Guy J had some of the same staff as The Vision of Escaflowne which was one of Bandai's top-5 best-selling titles and thought it would do Escaflowne numbers. It bombed extremely hard and sold worse than Ai Yori Aoshi. RightStuf only recently FINALLY sold out of the first artbox after 18 years.

The anime DVD bubble was full of so many very bad decisions (Overprinting, overpaying for licenses, dubbing everything under the sun). To add onto this, what crippled ADV Films was the Sojitz deal where they overpaid for nearly everything. This was such a bad deal. According to this article at the bottom, 009-1 for example needed to sell 10,000 units just to break-even on the licensing costs. After the deal imploded, ADV's release slate consisted of just re-releases except for Kiba their last new title which made this piece of news not surprising. Sentai Filmworks was created as an escape route as Sojitz still owned 20% of ADV after the deal fell apart.
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An Anime Visitor



Joined: 07 Feb 2020
Posts: 3
PostPosted: Mon Mar 28, 2022 10:30 am Reply with quote
Zalis116 wrote:
I would say that the piracy-driven crash of 2007 drove distributors and dubbing companies whose work I enjoyed (such as Geneon / Bandai / CPM / New Generation Pictures / Ocean / etc.) out of the anime business, but believe it or not, I'm not against piracy itself.

The 2007 "crash" had absolutely nothing to do with piracy and everything to do with an industry which refused to adapt a changing marketplace.

Rather than build new business models using the internet and streaming, publishers in both Japan and the United States ran to governments demanding copyright protection by trying to stifle internet growth.

I'm sure everyone remembers the stupidity that is "You wouldn't steal a car."

The crash was due to publisher greed, just as it was in the early 90s when Japan's anime studios exploded from about 80 to a staggering 600+. In both cases, anime publishers started raising licensing costs to distributors which, ultimately, became unsustainable

There was one benefit to the 90s crash: this forced licensing costs to be lowered, allowing companies to distribute more anime outside of Japan.

Unfortunately, greed never stops being stupid. The secondary crash, the one most US anime fans are familiar with, is the destruction of our distributors such as Geneon, Media Blasters, and too many more to list.

Again, greed is the culprit here, not piracy. Just as it was in Japan with an explosive growth in studios, so too did the US do with its anime publications. More companies sprouted up, and all vying for titles left and right.

Remember the days of walking into stores and seeing aisles of anime? Unsustainable market, folks. There's a reason you saw so much of it: it wasn't selling. It didn't help that individual disks were hard to find, let alone abused in distribution such as the infamous disk 5 of Kanon.

The "solution" of the box set only ensured a quick demise of distributors. To understand why comes down to the price of doing business. While fans loved the box set, distributors did not. It meant more had to sell in order to break even or profit, and we're back to those aisles again.

Despite contrary belief, making something "legal" doesn't mean it'll sell out everywhere. There's a balance between pricing, offerings, and availability, and if one of those core components is out of balance, the entire revenue stream will fail.

With so many titles and so many produced, retailers were forced (again) to handle the products which simply did not move out of inventory. Tens of thousands of product were sent back to the distributors, and eventually, the loss was too much that the companies had folded.

Doesn't matter if they had a few good titles or not, most carried bad titles.

FUNimation survived because of Dragonball, but sadly, not all distributors had such a tent pole title as to generate record profits. It wasn't without trying, though, that's for sure!

ADV, to drive home the point further, made a deal with an investment group which turned sour. Rather than deal with the situation, the company folded and the CEO/investors started Sentai, which is still around today.

The ridiculous belief that every piracy viewing is equal to a lost sale never stops coming up in discussions, and it's ridiculous for a reason. Anime piracy has been going on for decades, yet despite free access, it still flourished despite publisher and distributor greed. I recall watching many anime on pirated VHS tapes, for crying out loud.

Today, anime is the most profitable it has ever been, and the majority of its revenue is based on merchandising rights. Here I am pounding the same facts I did over 12 years ago.

As long as publishers keep licensing costs down, streaming can be a success, even with such news as Sony implementing a subscription requirement for new anime.

The reality is this: $15/mo (or whatever it is) is still far cheaper than buying individual titles on physical media. Sony knows this, so the "backlash" people are complaining about will not change their mind about the subscription service.

Advertising is not a business model, and has never been unless the company deals in ads. It solely puts the profitability in the hands of the advertiser, not the company. Google, as a reminder, is an advertising company, not a search engine.

CR running on ads is bad business. Sony knows this, and as the owner of CR, now will demand a guaranteed payout per month rather than the constant changes of advertising revenue.

I'm not stating piracy don't affect sales. It can, but there's a very massive line in the sand between "small business goes under due to piracy" vs. "Multi-billion dollar industry, set to break records again, whines about piracy".

The latter never justifies their excuse or reasoning to continue to run to government to bash copyright into submission for the sole purpose of a monopoly control on distribution while raising subscription prices continually since there is no legislation or action to stop them from doing so.

I will say this, on a personal level: this is a smart move by Sony. It makes sense given the other industry Sony is recognized for: gaming.

It's widely known many anime fans are also gamers, and as Microsoft shakes up the world by being 100% stupid (again!), Sony is feeling the pinch from investors to quell the popularity of GamePass and a potential loss of current members to XBox.

I wouldn't be one bit surprised if Sony includes CR as part of its PS Now/PS+ service to sell more consoles as well as entice existing owners into their sub services. Currently, the app requires a separate sub for ad-free viewing.


Just one more thing before I go: these companies know very well people will justify the monthly cost to the access given to them, only to convince themselves it's still cheaper than outright ownership of the product.

What they don't want you to think about is the price you're paying when you're not using their service.

When you sign up, I highly recommend you do so via monthly subscription, rather than yearly. I know it's cheaper yearly, but you're wasting money if you're using other services and not the one you're paying for.

Cancel at any time means you won't pay for something you're not using.

Well, that's all I have to say about this. I haven't used CR since the site turned to trash, but I'm hopeful this means my PS+ service gets free access to CR.

Have a nice day and thanks for reading, if you made it this far.

PetrifiedJello out.
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Aresef



Joined: 22 Jun 2005
Posts: 911
Location: MD
PostPosted: Mon Mar 28, 2022 1:50 pm Reply with quote
Crunchyroll really going back to its roots by encouraging piracy.
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