Ask John: How Do American Distributors Choose What to License?

Question:
Is there any sort of way anime companies choose anime to come to US? Or do they just pick what they want, because that doesn’t sound fair.

Answer:
I hope that I don’t spoil your positive and idealistic perception of America’s anime industry, but I have to clarify that fairness has little to do with official anime distribution. The exact procedures and details surrounding anime licensing are considered proprietary trade secrets in America’s anime industry, so American distributors don’t share details about how they acquire anime even among each other. I can provide only non-specific details about AN Entertainment’s licensing, which I’ve been personally involved in, and extrapolate about other companies’ practices based on their public statements and known information.

There are two primary ways that anime reaches American distributors: distributors make inquiries about specific anime, and Japanese distributors market shows for international distribution. AN Entertainment begins its hunt for new anime by having its employees brainstorm a list of potential licenses. We construct our list by considering which titles we like and would like to distribute in America, and by considering which titles seem like they’d be marketable and profitable in America. While it would be wonderful to base acquisition decisions entirely upon personal taste, most licensors can’t afford to invest massive amounts of money on anime that won’t at least break even in America. AN Entertainment’s long list gets narrowed to a handful of titles before its sent to Japan to find out which of the titles are available for potential licensing. The list is then further narrowed based on availability and asking price.

The other primary means of acquiring anime occurs when Japanese distributors offer titles to American licensors. Japanese distributors and brokers may tell an American licensor, “This title is in the planning stage. Would you like to contribute and/or negotiate for distribution rights now?” Japanese distributors also invite licensing inquiries about particular shows by sending sample episodes to American licensors.

Certain anime series may come to America because the distributor liked the show, because the show was anticipated to sell well in America, or because it was offered to an American distributor that agreed to negotiate a distribution agreement. Shows might not get licensed for American release because their licensing fees may be too expensive for an American company to afford, because the show isn’t expected to sell well in America, because it’s too little known for American distributors to inquire about, or because the Japanese owner doesn’t want the show released in America. Although that may be difficult to imagine a Japanese company not wanting an anime released internationally, Japanese licensors may sometimes believe that American distribution of a particular show may create unwanted controversy or reflect negatively on the reputation of the Japanese distributor.

Ultimately the anime industry is run by individual people who have their own, individual ideas and preferences. That’s particularly why the influence of American anime fans can have an effect on what does and doesn’t get licensed for American release. Market and financial conditions have a major influence on anime licensing, but the perceptions and personal taste of the people who work for America’s anime distributors also influence what gets licensed. Fans that want a particular title to get released in America can help make that happen by telling distributors what they want to watch and buy, and by purchasing anime DVDs. If a particular genre or style of anime doesn’t sell well, no American distributor will be eager to invest in shows that represent that genre or style. Distributors may have their own, personal reasons for wanting to license and release particular shows. Consumers and fans can also provide reasons why distributors should try to license particular shows.