Showing posts with label dvd. Show all posts
Showing posts with label dvd. Show all posts

Wednesday, March 12, 2008

This is Not New

It seems to have reached a crisis level, and is the talk of the world of American anime economics, the notion that there is an impending collapse of the anime market in the U.S. in general, because of very poor DVD sales.

So fansubs can be seen to hurt a license, but also help it by creating brand awareness. “Brand awareness” however, is totally worthless if it can not be translated into sales of consumer goods of any kind. In many cases the ability of a property to make money in other fields of licensing is killed by fansub proliferation. It is a form of “bootlegging” in a way, not quite different from another segment of Asian entertainment that went through something similar over two decades ago in the 1980’s; Kung Fu.

One of the most pirated genres out there is the martial arts film. Now what’s important to realize that the audiences for anime and for martial arts films have only the slightest bit of overlapping (Fred Perry), and are mostly made up of groups that have nothing to do with each other. However a comparison of historical context is still worth something.

Like a combination of Adult Swim titles, Bruce Lee’s Enter the Dragon set off a huge explosion in interest in martial arts both as an activity/sport and as entertainment. There was also a new technology coming out at that time as well, one that the industry said would ruin the viability of all video entertainment, and that was the brand spanking newfangled contraption known as the VCR. At the point that martial arts became popular, the primary delivery method for such media was shifting from the cinema to the home. By the early 80’s there are back rooms in small shops pumping out bootleg versions of every Gordon Liu and Chan Seng chop saki basher to be sold on the street, in mail order catalogues, or at conventions.


The result of this was a large market for such material, but a market with standards which would make legitimate operation of media companies almost impossible based on the levels of pricing and sales would support. At the same time, there was a little known phenomenon that got around the language barrier, and that was Hong Kong colonial law. It stated that any cinematic media made in Hong Kong had to have an English version made as well. This is why all those old English dubs of kung fu flicks are done by drunken Australian sailors. Without this, the spread of kung fu in America would have been seriously hampered by a need for subtitling and a general audience not ready to accept anything in a subtitled form. That, coupled with the ethics of a martial arts movie consumer making fansubbers look like media boy scouts, brought a rapid growth of material with an underdeveloped legitimate infrastructure.

After a while of legit and bootlegs warring with each other on the video shelves things seemed to collapse when production could no longer be sustained due to the inability of the money generated in the U.S. make it back to the studios to finance ever more expensive productions. Throw in a change in tastes in the domestic audience, and you have a dark age for the genre. We are now out of that dark age as Crouching Tiger Hidden Dragon has become the Akira of a new era of martial arts as entertainment, but one that still has quite visible scars.


Now what does this remind you of? Let’s run down the list:
• Entertainment from Asia in high demand.
• New Technology circumventing the industrial infrastructure.
• Language barrier overcome without use of commercial means.
• Production of more original content stymied by lack of revenue.

The main difference is that the unlicensed copies of media in anime are being distributed for free, even further damaging the market since the information gathered about the market based on taking a free product is almost worthless and can not help companies make plans for the future.

The recent developments over at ADV are sending ripples throughout the industry and the questions about the future that are being raised now, are very different than those from just 6 months ago. Some questions are bleaker than before, others smack of the denial and ignorance running throughout fandom which simply serves to feed the burning anger and frustration of guys like me.

Like Ancient Rome, American fandom has sucked in the resources from the producers and have built a massive city, all without producing a single thing in return to help further that production. Simply “liking it” does not mean a thing if it operates outside the areas which provide economic subsistence. Like Ancient Rome, anime in America is surrounded on all sides and has no way to pay its own army. Like Ancient Rome, anime in America may see a long dark age before technology or a new method of international collaboration bring us into the light. We have seen it with martial-arts an era ago, and history may be about to repeat itself.


T.A.O.

PS:
AWO used this incident in their latest episode in their news section, very cool. I can now declare victory, in that I have been mentioned twice in a row on AWO and not once has Daryl uttered "Apollo Smile" not even once, as my bluetooth deception master plan is finally complete!

Thursday, October 25, 2007

All of a sudden,

The home media bubble and its effect on anime as a home media force, and what the future will hold.

Since I am currently a freelance licensing agent, and event consultant, there are times when all of a sudden out of nowhere all this work lands on your head and you have no time for keeping up appearances on the interwebtubes. Now is such a time, however I do feel the need to continue to update this blog lest the content become amazingly stale.

I had a conversation today with a former colleague (read; "boss") of mine regarding a few historical things, our mutual insane friend, and where things are headed. From every perspective, it would seem to be official, the home media business is imploding. If this phenomenon wasn't so close to pure physics it would be just horrifying for us in this business to watch unfold.

As DVD expanded and became the dominant force, a few things happened to change the home media market.

1) Real Estate:
The shelves of any retailer who carried any home media, all of a sudden became capable of carrying an exponentially larger amount of releases since DVDs took up less space on the shelves in the store. That means for the same rent, the store can carry the same amount of titles without any financial risk what soever (that's because of "returns"... I left AWO a message about what "returns" are... maybe they'll play it maybe they won't).

2) Production Cost.... no Manufacturing Costs: DVDs take less time than a VHS to make, and since they can hold so much more video content, all of a sudden the massive libraries of TV productions become viable products. Supply ends up slightly outpacing demand, and a paradox is on it's way. Much like the real estate market is almost about to deal with now... nobody cared. They were making money and getting their sales commissions, the future would have to hold the bag so what did they care.

3) Market indigestion -or- Collective buyer's remorse:
OK so everything you've ever wanted (except Daria and Miami Vice ...thanks RIAA bastards) is now out on DVD for a price that seems too good to be true. Of course you're going to binge, you are only human right? So now what... the consumer home media market binged, passed out and is now very hung over in the "never gonna do that again" phase.

Number three is what's affecting the market now. The new genres that exploded during the infancy of DVD (anime being a major part of that) are now the ones being cut back on. The number of genres forcing this implosion range from softcore adult, to indie films, budget horror (thanks Blair Witch), documentary, martial arts, and anime.

So are there any survivors? ...Only one, and that's TV on DVD. Why? Well there's the obvious fact that these shows are on TV first and what better advertizing can you have? But that's only half of the equation, and half a tank of gas won't get you where you're going. You ask what the other half is? Cannibalism. TV on DVD has bitten out such a huge chunk of Hollywood movie DVDs that it can now survive whatever the market throws at it. mmmmm market share.

So what does this mean for anime? In a single explanation, it's growing pains. In 1999 Taeko Baba of all people (if you don't know who she is, you don't know much about the anime business ...but not in a good way) gave a very detailed presentation at The Japan Society expounding the differences between the American and Japanese "otaku" consumer markets. She also prophesied the eventual transition of the then US consumer market model into the Japanese consumer model, which was an immensely major transition. I invited her to the Anime Convention I chaired in Albany NY to give the same presentation... I am not sure how that worked out since I more or less blacked out that weekend.... but um...


Anime is in there... somewhere

The US market is in the midst of that transition. If you want to really have a true understanding of this, I suggest you read; A Clustered World, The Japanese Economy, Japan Inc (I know it's old but read it anyway), Shadow Shoguns, Hit and Run, Good to Great (full of market-speak), and just for fun try the translation of the novel Battle Royale. Just a bit of light reading. Such a transition will see losers and winners, and lots of both. No one may know what the future holds, so place your bets... place your bets.