Ask John: Why Hasn’t Ouran High School Host Club Been Licensed?

Question:
What are your thoughts on whether Ouran High School Host Club will be licensed in the US? I have heard a lot of buzz about this show both at conventions and on the internet, and I know the manga has been coming out for a while. I heard that people were expecting a license for it to be announced at Anime Expo this year, but it wasn’t. I know anime companies are always looking for the next big show to license, so it’s puzzling to see a show with growing hype in the US yet unlicensed. Do you think that it might already be licensed but is currently under wraps, or could there be some type of issue (such as cost or cultural references) that could be keeping it unlicensed?

Answer:
I believe that the Ouran High School Host Club anime television series is a useful barometer for the Japanese and American anime industries. The status of the show reflect different, revealing things about the Japanese and American anime industries. I think that the existence and popularity of the show in Japan exemplifies the creativity and vibrancy of the current anime production industry. And the show’s lack of a US license reflects the slowing growth of the American industry.

In a record setting year for amount of anime released in Japan, Ouran Host Club sits near the top of the heap of best titles of 2006. The show is witty, particularly well animated, highly stylish and individual, and thoroughly entertaining. American fans who complain about the stagnancy of contemporary Japanese animation, and complain that there are no good current anime, haven’t been paying attention to exceptional shows like Ouran Host Club. The show doesn’t fall into the conventional realm of shonen action or adventure anime that typically guarantee a level of success in America, but the show also isn’t entirely without American market potential. The American success of shows like Fruits Basket and Utena, and the exposure already created by fansubs and by the official English translation of the source manga should adequately establish Ouran Host Club as a viable American prospect. So if Ouran Host Club has a significant American sales potential, the fact that it hasn’t been licensed yet must say something.

Ouran Host Club is the latest work from Studio Bones, a studio whose previous productions including Wolf’s Rain, RahXephon, and Fullmetal Alchemist have been very successful in America. The precedent set by previous Bones titles may increase the asking price of current and future productions from the studio. In other words, it’s possible that the licensing fees for the Ouran High School Host Club anime are higher than any American company wishes to pay. But even if there aren’t excessive licensing fees associated with the show, American distributors may still hesitate. At the height of America’s anime licensing frenzy, there were over 100 anime titles licensed for American release from January to September 2004. In 2005, during that same time period, the number of shows licensed dropped by 50%. Similarly, so far in 2006 the licensing announcements from America’s anime industry have been about half the number of announcements made two years ago. America’s anime industry is simply not licensing as much anime as it previously did. Decreasing sales for average catalog titles, and decreasing profits from all anime sales have left America’s anime industry with less investment capital to spend on acquiring new titles. Currently only about one out of every ten new anime titles in Japan is being licensed for American release. Many new shows aren’t being licensed for American release, not because there’s a lack of interest, but because there’s a lack of funds.

I do fully expect to see the Ouran High School Host Club television series eventually licensed for American release. The show is too good not to reach America; and it has too much commercial potential in America to go ignored indefinitely. However, a few years ago fans could have expected a show like this to be quickly licensed, or even acquired before its Japanese broadcast. Today, with America’s anime industry earning less profit, new anime series are being licensed less quickly, and a greater number of shows are remaining unlicensed. There may be an increasing number of viewers watching anime in America, but American consumers are paying less for anime, and spending less on anime. As a result, American distribution companies have less money available to spend on licensing new shows. I’m not trying to imply that the decrease in new American anime licenses should be blamed on American anime fans and consumers. I mean only that support from American consumers is one of several influences that have a major impact on anime licensing.