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The Anime Economy - Part 1: Let's Make An Anime!


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agila61



Joined: 22 Feb 2009
Posts: 3213
Location: NE Ohio
PostPosted: Tue Mar 06, 2012 6:43 pm Reply with quote
HitokiriShadow wrote:
Right, but what I'm saying is that there could be a difference in how a publisher approaches it depending on whether they expect it to be a huge money maker like Naruto or if they don't really expect to get much out of it other a boost in manga/novel sales.

If its going to be a huge money maker, then the manka-ka has a lot more potential leverage in the negotiations, since that is going to be a huge money maker for everyone concerned. Though as noted, a manga-ka who is working 6 days a week with a squad of assistants with pay that more than consumes the serial page rate will often be happy to delegate that power to an agent.

Its not clear to me why the publisher would have to come up with a bigger share of the budget for a manga that is already a hit as a manga series and is seen as having the makings of a big hit as an anime series. They have more leverage, and if anything there would be more parties interested in getting a piece of the action, and so they might not have to come up with as big a share of the production budget for that kind of title.
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HitokiriShadow



Joined: 09 May 2005
Posts: 6251
PostPosted: Tue Mar 06, 2012 7:33 pm Reply with quote
agila61 wrote:

Its not clear to me why the publisher would have to come up with a bigger share of the budget for a manga that is already a hit as a manga series and is seen as having the makings of a big hit as an anime series. They have more leverage, and if anything there would be more parties interested in getting a piece of the action, and so they might not have to come up with as big a share of the production budget for that kind of title.


That's why I said I wanted to know how the royalty rights tended to work (if there is any "tended to" at all;maybe it varies wildly even among the same kinds of shows with the same kinds of sales and merchandising potential). If it went to the original publisher/copyright holder no matter what and the amount of money being put in had nothing to do with it, then no, it wouldn't make any sense for them to put up more money for the shows more likely to do well. But if the amount of money mattered, even if only in influencing the amount of the royalties in negotiations, then it might not make financial sense put the same kind of money into R-15 as they would for Naruto.

Now, having more leverage for having the original rights for a near guaranteed hit like Naruto is a good point, and something I didn't think about. That very well might allow them to get away with putting less money into its production than a mid to low level title while getting the same or better royalties.
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agila61



Joined: 22 Feb 2009
Posts: 3213
Location: NE Ohio
PostPosted: Tue Mar 06, 2012 8:32 pm Reply with quote
HitokiriShadow wrote:
That's why I said I wanted to know how the royalty rights tended to work (if there is any "tended to" at all; maybe it varies wildly even among the same kinds of shows with the same kinds of sales and merchandising potential). If it went to the original publisher/copyright holder no matter what ...

In print publishing, rights are unbundled, so the publisher only holds the rights to what they actually have contracted ~ unlike Marvel or DC, they have to sign a new contract for tankoubon. In anime, that's work for hire, and the production committee holds the rights in full, except it is typically a derivative work, so in anime made from manga, the manga-ka owns the original rights to the character designs and such.

How revenues run from the other members of the production committe to the original rights holder, I have no idea, I've never seen the legal documents that form a production committee, and if I had, I'd be unable to read it.
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CKSqua



Joined: 07 Oct 2011
Posts: 38
PostPosted: Tue Mar 06, 2012 9:04 pm Reply with quote
HitokiriShadow wrote:

That's why I said I wanted to know how the royalty rights tended to work (if there is any "tended to" at all;maybe it varies wildly even among the same kinds of shows with the same kinds of sales and merchandising potential). If it went to the original publisher/copyright holder no matter what and the amount of money being put in had nothing to do with it, then no, it wouldn't make any sense for them to put up more money for the shows more likely to do well. But if the amount of money mattered, even if only in influencing the amount of the royalties in negotiations, then it might not make financial sense put the same kind of money into R-15 as they would for Naruto.


My understanding is that a company gains three things by joining a production committee:
a) respective distribution rights, whether in the form of DVDs, TV broadcasts, music, or merchandise
b) a share of the licensing revenue, proportional to their stake in the production
c) influence on the project. For instance, a music label with a significant stake might insist on character songs or concert scenes in a show. If you want more control over how things are handled, you invest more.

I'm not clear on the details of how licensing revenue is divvied up (other than the fact that those who invest more gain more). Nevertheless, some anime studios do join committees in the hope of profiting from DVD sales, so royalties do go back to the committee to be split amongst members.

Quote:
That's how I understood it ~ at least, coming at it from the perspective oft the manga publishers of anime made from a manga ~ when a publisher puts some money into the pot to help make the budget for an anime made with their property, the increased sales of titles of the serials and tankoubon is the reward.


That's because the money they make from increased sales can dwarf the licensing revenue generated through anime production committees.

Many publishers aim for mixed media success though (which raises the profile of their properties across different forms of entertainment), so I think there's still a lot of incentive to be a big investor in production committees.
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BigOnAnime
Encyclopedia Editor


Joined: 01 Jul 2010
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PostPosted: Tue Mar 06, 2012 9:14 pm Reply with quote
Can't wait for part 2 tomorrow. Hopefully he also goes into the importance of the high price, and how lower priced releases like Emotion the Best bomb in sales to where they can't even get in the Oricon charts most of the time.

Anyway, as for part 1, I read the whole thing immediately upon coming home from school yesterday, and while I knew some of the stuff, I did learn other things. Apparently the costs don't range from $100,000-$200,000, but actually now $300,000 is the high. Though I do wonder what Fate/Zero and Guilty Crown have pushed for production values.
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050795



Joined: 27 Mar 2009
Posts: 230
PostPosted: Tue Mar 06, 2012 10:16 pm Reply with quote
Quote:
No mother dreams of having an ugly baby, and yet ugly babies are born with astonishing regularity. Likewise, no producer dreams of making a terrible show, and yet they happen all the time.


True but only one puts you in a must lie situation. Laughing

I also found this really interesting and look forward to the next installments.
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Elves



Joined: 23 Mar 2005
Posts: 269
Location: USA
PostPosted: Wed Mar 07, 2012 1:42 am Reply with quote
Very interesting. I look forward to parts II and III. Smile
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Panda-s1



Joined: 14 Dec 2007
Posts: 10
PostPosted: Wed Mar 07, 2012 3:15 am Reply with quote
Don't know if it's brought up yet, but I kinda wish he'd brought up groups like Type-Moon or... whoever made Higurashi no Naku Koro ni. I mean it's not like they went directly from doujin to anime, but Tsukihime and Higurashi are examples of series based entirely on an independent work, made in the past ten years.

Granted, such a dream is way out of grasp of us foreign fans, but it's still a phenomenon that's worth noting for this article, IMO.
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nhat



Joined: 21 Jan 2008
Posts: 922
PostPosted: Wed Mar 07, 2012 11:11 am Reply with quote
jsevakis wrote:
Glad everyone's into this article. Very rewarding. It took a very long time. Smile

Part 2, which will post Wednesday, will get VERY deep into the R2 DVD market, with numbers. And yes, I can tell you the Manabi line is ludicrously low.


It's a very good article. Some fans NEED to know that anime isn't produced by magic or by a sub group (people give way to much credit to the subbers when rarely you see anyone giving credit to the people and studio who MADE the ACTUAL show).
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Catseyetiger



Joined: 20 Oct 2009
Posts: 779
PostPosted: Wed Mar 07, 2012 11:18 am Reply with quote
I have a question? anime that gets sold on iTunes such as A Time of EVE movie. why would the anime publisher not want to try and sell more anime on iTunes in subtitled format? I know the cost of subtitles in a anime can not be that high. What with the translation software out now. I would think that older shows like Minami-ke would be offered on iTunes for the world wide audience. That this would help make some money for the show well after release. I do not understand how copyright laws keep publishers from wanting to make money on the older titles never released from japan. also as a fan who owns many anime titles on dvd and watches hulu, cruchyroll, vizanime, theanimenetwork and those shows posted here. I can say that i have become a fan of some of the Japanese voice actors. I will keep collecting as long as they create stories i want to see more than one time and enjoy the vocal cast of the show performance much the same with the tv programs i enjoy.

also why have publishers like VIZ limited their titles to apples device I collect the books and would have kept collecting titles offered in a digital format such as Princess Resurrection. With the lowered costs of not having to create the book product you would think it would be at least profitable to offer such services. I think people honestly would pay for titles if offered in a legal format.

Thanks!
a fan,
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RGaspar



Joined: 04 Oct 2011
Posts: 236
PostPosted: Wed Mar 07, 2012 12:36 pm Reply with quote
Great Article!! Looking forward to part II and III =D

I was planning to bombard AnswerMan with questions about budgets, profits and stuff but it seems I won't need to do so!

Indirectly, it seems I'm not the only one that really likes this kind of insight into one of the industries we love.

Thank you very much guys.


I think my otaku-power-level is quickly increasing over 9000!! ever since I've joined this site Razz
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pinoiBIGscientian



Joined: 02 Oct 2005
Posts: 8
Location: Philippines
PostPosted: Thu Mar 08, 2012 7:30 am Reply with quote
Quote:
Sometimes the production delays get so bad, the producer has no choice but to allow a hastily-edited recap episode to be inserted, buying the crew an extra week. (Recap episodes are seldom planned, and usually indicate chaos behind-the-scenes.)

And now we know.

We should make an exception for Chobit's recap episodes, though. The director took great pains in making sure that the recap episodes won't look tacky. He/she even took the time to create scenarios to somehow justify showing those recaps. You'll definitely regret not seeing Chobit's recaps, especially the second one.
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Shiroi Hane
Encyclopedia Editor


Joined: 25 Oct 2003
Posts: 7580
Location: Wales
PostPosted: Fri Mar 09, 2012 10:31 pm Reply with quote
I haven't the foggiest idea where it came from, but I was just browsing random images on my hard drive and found this picture of a spreadsheet that appears to break down some of the per-episode costs of Bamboo Blade. Thought someone might be interested

https://picasaweb.google.com/lh/photo/FBtcYa1OUn3qqew3ZTR-YtMTjNZETYmyPJy0liipFm0?feat=directlink
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