The cost of death and path to save a shrinking industry.



  • My post will describe the problem with the Anime industry, draw and analogy for the problem, then finally prescribe a method to fix this problem.

    analogy:
    The cost of death
    What does it cost to make a single episode of your favorite anime?
    Take that cost (obviously a negative number) and add it against the revenue of what the single episode brings in.
    This should include the cost of acquiring the rights to dub each show in English.
    The problem becomes more and more apparent as the number of episodes increases.

    The problem that Funimation has encountered is an age old business principle.
    in this example lets say that 100 people will give their time to view any episode on the site.

    Funimation can present selections for those 100 viewers to spend their time each month over 24 months
    Say they have three offerings. (Product)
    (1) Waldo's adventure
    (2) Tree and the hippo
    (3) Jim and that book

    for simplicity I will distribute the viewership in to New Hit, Fan Fav, and Classic.

    (1) will receive 55 views (New Hit) (it might only be for a year but it will have high ratings at first)
    (2) will receive 33 views (Fan Fav) (it will be lower than the New Hit however it will sustain viewership for a longer time period)
    (3) will receive 12 views (Classic) (older shows will not bring In that many views, it's activity will be low and dynamic spiking over time)

    The problem arises when reality hits and there are 20 different offerings (Products)

    (1) will receive 15 views (New Hit)
    (2) will receive 7 views (Fan Fav)
    (3) will receive 2 views (classic)
    (4) will receive 12 views (New Hit)
    (5) will receive 5 views (Fan Fav)
    (6) will receive 1 views (classic)
    (7) will receive 23 views (New Hit)
    (8) will receive 10 views (Fan Fav)
    (9) will receive 3 views (classic)
    (10)…

    Each product is turning in a different percentage of the viewership, however; the problem doesn't arise until you add the cost of production against the income provided due to viewership.

    each percent = $1 income
    all shows cost $20
    *=negative income

    (1) will receive 35 views (New Hit) (cost $20) (35%=$35) =$15
    (2) will receive 7 views (Fan Fav) (cost $20) (7%=$7) =$-13*
    (3) will receive 2 views (classic) (cost $20) (2%=$2) =$-18*
    (4) will receive 22 views (New Hit) (cost $20) (22%=$22) =$2
    (5) will receive 5 views (Fan Fav) (cost $20) (5%=$5) =$-15*
    (6) will receive 1 views (classic) (cost $20) (1%=$1) =$-19*
    (7) will receive 23 views (New Hit) (cost $20) (23%=$23) =$3
    (8) will receive 10 views (Fan Fav) (cost $20) (10%=$10) =$-10*
    (9) will receive 3 views (classic) (cost $20) (3%=$3) =$-17*
    (10)...

    Total income= negative a lot..

    with only three offerings

    (1) will receive 55 views (New Hit) (cost $20) ( 55%= $55) =$35
    (2) will receive 33 views (Fan Fav) (cost $20) (33% = $33) = $13
    (3) will receive 12 views (Classic) (cost $20) (12% = 12) = $-8*

    Total income= $40

    The ratio is view/income
    with every show needing at least 20% income it becomes more difficult to add shows.

    No fear...

    There is a way to increase the income of all shows while maintaining a low viewership.
    The easiest way to create income is by Advertising, (30 sec ad video's or other advertisement within each show. )
    think of it like this.

    on a video a small ad at the bottom of the video is worth
    $.05 if it appears
    $.75 if you interact with it
    15-30 second video ad's before the show are worth
    $1.50 per view
    $5.00 if you interact with it

    This is a rough analogy of how it works, but its along the same lines.

    The cost to dub episodes of (Case Close) would not be worth their time because the viewership over short amounts of time would not be enough to pay for the video.
    in other words.. it could take 10 years for one episode to be payed off....

    The solution I would like to offer is strategic partnerships with video streaming companies that would outsource all anime to Funimation in return for accurate and updated video series.

    (Hulu, Netflix, Amazon Prime) all offer anime as a given level (some better than others).
    in this agreement Funimation would be the (product supplier) to each streaming agent, while collecting on the cost of each show.

    Why would Netflix pay Funimation to maintain their videos.. if that's what they do?
    because the work that goes into a series is alien to the work that goes into a reality tv series.

    Streamers would pay a "Subscription" to Funimation, they would compile a run of 5-7 shows that would run like a tv series, however they would develop new content (more episode dubs) to those seasons for that time frame.

    this is similar to what the "Streamers" already do, the difference would be found in phase two.

    (the new content would be viewed and when it's contract ended it would return to Funimation.com for streaming, the next set of 5-7 shows would be submitted to the "Streamer" thus keeping their content new without them having to enter painful negotiations and the possibility of incomplete dub or sub jobs.

    Funimation could have 20 offerings

    (1) will receive 6708 views (New Hit) (cost $20) (6708%=$6708) =$
    (2) will receive 3854 views (Fan Fav) (cost $20) (7%=$7) =$
    (3) will receive 1000 views (classic) (cost $20) (2%=$2) =$
    (4) will receive 2234 views (New Hit) (cost $20) (22%=$22) =$
    (5) will receive 500 views (Fan Fav) (cost $20) (500%=$500) =$
    (6) will receive 240 views (classic) (cost $20) (1%=$1) =$
    (7) will receive 2300 views (New Hit) (cost $20) (23%=$23) =$
    (8) will receive 10 views (Fan Fav) (cost $20) (10%=$10) =$-10*
    (9) will receive 3 views (classic) (cost $20) (3%=$3) =$-17*
    (10)...

    The cost to make the shows would be paid by the "streamers" and thus allowing Funimation to return to their prior model.
    If shows 1-7 are paid for this year and 8-14 will be next year, funimation will be able to independently develop 15-20 on the old model.

    (1) will receive 55 views (New Hit) (cost $20) ( 55%= $55) =$35
    (2) will receive 33 views (Fan Fav) (cost $20) (33% = $33) = $13
    (3) will receive 12 views (Classic) (cost $20) (12% = 12) = $-8*

    Total income= $40

    Negotiations would cover the cost of SEASON development instead of episode. Funimation would get to develop new episodes increasing it's library (product) without taking on more cost.

    The 5-7 shows would increase in popularity increasing traffic to Funimation website and merchandise sales during their run.
    when they are replaced they will be available on Funimation.com for direct income via Ad's.

    Funimation production budget
    $1,000,000
    Cost per show
    $100,000
    total show development
    10
    Remaining
    $0

    Funimation production budget
    $1,000,000
    Cost per show
    $100,000
    Streamers agreement
    $700,000
    total show development
    7
    Remaining
    $1,000,000

    Funimation would have stimulated growth by means of strategic partnerships, while securing marketing, flow of income, and ability to develop more shows.

    The cost to develop shows ties the hands of the big companies, however; if you help big Streamers (Netflix, Hulu, Amazon Prime) offer top rate Anime that is updated and pre-licensed through funimation then the money they would have spend on negotiations, licensing, and development would all be added to subscription payment.

    inshort... Funimation could negotiate their way to develop shows no matter what the rating are. shows would rotate so if it didn't do good, they wouldn't offer it to that provider for a while.

    let them pay for it.. they want subscribers for their latest drama and to fill the streaming market they must offer anime... funimation could be their go to company...

    one truth prevails... I just want to see more case closed, if it takes me negotiating with Netflix my self, so be it. I have done it before...



  • Wow they should hire you, except your numbers are nothing short of fiction and the anime industry in North America is arguably as big and mainstream as it's ever been



  • You know if all you wanted was more Case Closed, you could've just said so right at the beginning.

    It's still never gonna happen though. :hmm:



  • @crashball254:

    I just want to see more case closed, if it takes me negotiating with Netflix my self, so be it. I have done it before…

    Good luck with that.



  • @crashball254:

    My post will describe the problem with the Anime industry, draw and analogy for the problem, then finally prescribe a method to fix this problem.

    analogy:
    The cost of death
    What does it cost to make a single episode of your favorite anime?
    Take that cost (obviously a negative number) and add it against the revenue of what the single episode brings in.
    This should include the cost of acquiring the rights to dub each show in English.
    The problem becomes more and more apparent as the number of episodes increases.

    As an accounting student, the moment I read the line I bolded I knew I was going to be reading a lot of conjecture with a lot of number pulling that has no substance anywhere.

    You obviously spent more than 5 minutes thinking this stuff up, but there is very little indication that the anime industry is "dying" (as you so eloquently put it), actually as far as everywhere not Japan goes, its probably growing and I'm basing this on the availability of anime compared to how it was >8 years ago.

    Also, the nitpicking accounting student inside me wants to point this out, you never want to have income and revenues be synonyms of eachother. Income is your revenues minus your costs (or your expenses), and not just income = revenues.



  • The problem is, anime stories are becoming way to generic and alot of shows are either moe, ecchi, magic academy. 90s to 2006 were the best for the industry, especially the 90s, cause anime was actually good with none generic plots and appealed to people that didn't know anime. now its labeled {weird} because the things in anime are strange to people outside of japan. when you show someone whose new to anime your not going to show them a ecchi or moe. your going to show them something badass like gundam or cowboy beep bop, or something heart warming like a good fantasy or romance. mot of those shows will most likly be from the 90s to 2006. anime needs to take a look back and tackle those things that made anime great. witch was anime that could appeal to foreigners and the plot not being generic, but of its own story.



  • Or you know go to CR and watch the current episodes of Detective Conan over there



  • @rammstein4g3:

    snip

    That's not to say that some of the current shows available today aren't great and/or original though and that aside from the mainstays I notice very little reference to other older anime which makes me think that you (people in general) are looking at them through nostalgia goggles. And its entirely possible that its because of those mainstays that we have what we have today because everyone wants to copy the success of the old shows and you could just say that the creators just thought of it first.



  • its not nostalgia. i can see the flaws in today's anime. i just used the 90s to 2006, because they were the best years for anime and anyone can see that. new people to anime wouldn't know cause there used to today's anime. witch is a generic plot and characters and same themes. you can obviously notice the difference in anime from looking at 90s to 2006 to 2007 to current. its very noticeable. to people who watches anime ALOT. im not saying all anime today is generic, but a damn good portion is. most anime companies arnt original and copy a popular show and change it up. weather that changing the characters and having the same plot or magic academy with same characters, but different plot. there's alot of reference in todays anime and if you been watching anime for awhile you can see that.



  • I'm seeing the same things for anime now versus anime in the 90's. some really big hits and amazing shows, a lot of decent and perfectly average shows and a nice helping of drek. only difference is, there's just more of each. instead of 20-40 shows a season, we now have 150-170 a season



  • @rammstein4g3:

    The problem is, anime stories are becoming way to generic and alot of shows are either moe, ecchi, magic academy. 90s to 2006 were the best for the industry, especially the 90s, cause anime was actually good with none generic plots and appealed to people that didn't know anime. now its labeled {weird} because the things in anime are strange to people outside of japan. when you show someone whose new to anime your not going to show them a ecchi or moe. your going to show them something badass like gundam or cowboy beep bop, or something heart warming like a good fantasy or romance. mot of those shows will most likly be from the 90s to 2006. anime needs to take a look back and tackle those things that made anime great. witch was anime that could appeal to foreigners and the plot not being generic, but of its own story.

    There was harem garbage in the 90s as well. You don't remember it because it doesn't have much staying power, since those shows are normally dependent on the art style and the hot new character type/trope of that era. These shows today will also fall into relative obscurity

    Meanwhile, shows that rival things like Cowboy Beep Boop are in abundance each and every year, simply because the industry itself has grown exponentially. I'm not sure the breakdown of genres has budged too much over the years (though mech shows specifically probably have a smaller slice of the pie at this point), but the sheer volume of shows every year has increased, which is probably why you think you see nothing but ecchi moe candy



  • To continue from Riles here: saying that everything from 90-05 is kind of misleading because anime has changed since then (in multiple ways). And there have been many anime in past years that are just as good (I would assume) as Bebop. (This said as someone who hasn't actually watched Bebop, nor does he want to.)

    And people like different things, I will fight tooth and nail to say that High School DxD and Rokka are both really cool animes, though for different reasons. I actually don't really care for a lot of the shounen anime that have a massive popularity and tend to go for with the ones that have a cool premise, generic or not.

    And based on the first line on wikipedia about bebop's plot, it reads more like a generic american type of sci-fi that i've come to expect.



  • @crashball254:

    one truth prevails… I just want to see more case closed, if it takes me negotiating with Netflix my self, so be it. I have done it before...

    Man, me too. I want more case closed. Such an awesome show. PLEASE FUNIMATION. Advertise it on your Youtube channel. The reason I didn't jump into it was because I didn't understand how the Conan shrunk, in fact it was a turn off to just see the kid advertised.. IT MAKES SO MUCH SENSE. haha Anyways, hope someone with power sees this.



  • @jjfriday:

    The reason I didn't jump into it was because I didn't understand how the Conan shrunk

    The reason is explained at the beginning of every episode except for the first one.



  • @jlaking:

    The reason is explained at the beginning of every episode except for the first one.

    Yes, but to a new viewer it didn't seem worth the effort to even check out the first episode. I was hooked when I started, but only after my brother said with certainty, that it was good.

    I just feel like people are missing out because they're not given a good enough explanation for why he is a kid. Advertising correctly is key to this anime's success. At least from my experience. Perhaps ask others what made them get into it. Seeing it randomly air on tv may only count if proper digital advertising has been achieved. Its a toss up.

    Anyways, I can hope. with the streaming kicking off maybe they'll give it a shot of booster power.


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