Ask John: Why Are Anime Series Being Licensed So Quickly?

Question:
ADV has just begun releasing Le Chevalier D’Eon, even though the series has not finished airing on TV in Japan. And they snatched up 009-1 after only one episode made it onto BitTorrent. It seems like a pretty risky (or gutsy) move. Do you think it is an attempt to prevent YouTube or BitTorrent versions, a bid to capture a series before it becomes hot/expensive, or both?

Answer:
No one is more qualified to answer this question than AD Vision, but I’m not sure that any ADV representatives would provide a concise and informative answer since an official answer could also be very revealing about the company’s status and principles. So I can only speculate and hope that my speculation, in relation to the anime industry, may provide some insight or a unique perspective on the anime community. The theories that AD Vision’s recent quick acquisition and release of certain titles is a method of competing with underground distribution or a method of cost management are both logical and possible explanations, I have a feeling that the answer is something else. Judging by the current evident state of the domestic anime market, I think that AD Vision may be attempting, as much as possible, to get new anime onto the American market while it’s current in Japan.

Distribution and advertising methods including YouTube and BitTorrent seem to be one of the primary driving forces behind the current American anime retail business, along with mainstream television broadcast. As an employee of an anime specialty retailer, I can confirm through first hand observation that the titles which sell best in America are the ones that people are watching and talking about. Outstanding and critically praised anime, and little known shows of every quality, typically don’t sell very well in today’s market. DVD series that don’t have a lot of consumer buzz may sell only a couple thousand units during their entire American lifespan because today’s anime fans and consumers buy what they’re familiar with, and what their friends are buying. The fansub community may, in fact, have more influence over the domestic anime industry today than ever before because it’s the series that are popular in the fan community which sell well, and the attention of the fan community shifts quarterly with each new Japanese television season.

Viz has announced its intention to release Death Note in America concurrently with its Japanese broadcast. That, the speedy release of domestic titles like Chevalier, Utawarerumono, and Coyote Ragtime Show from AD Vision; and FUNimation’s public announcements of their hopes to have series out in as little as six months after acquisition may be a sign of the industry’s recognition that domestic sales are now distinctly tied to transient popularity. Anime titles released on domestic DVD while they’re still popular in the fan community seem to have a much better chance of success than shows which the fan community is no longer interested in, or never really was interested in to begin with. AD Vision has not yet announced a release date for 009-1, but early rumors were that the series would see American release within only three or four months following its domestic acquisition.

As far as I know, licensing fees on anime typically don’t increase unless there are multiple potential licensors bidding for distribution rights. Expensive licenses are expensive from the outset, so licensing early doesn’t necessarily save money. However, acquiring distribution rights by investing during the production phase may ensure a distribution foothold on a show that could eventually be subject to a bidding war. There’s really no way for an outsider to know exactly why AD Vision licensed the shows it did when it did. Perhaps 009-1 was simply offered to them, or the staff wanted the show for personal reasons. It’s also not unreasonable to guess that AD Vision may have acquired Chevalier and 009-1 quickly to try to minimize competition from illegal distribution. However, I think that these acquisitions are signs of an industry-wide effort to license and release new anime quickly in order to capitalize on consumer interest. In fact, much of the domestic anime industry seems to be turning into a literal do or die principle of getting new anime to consumers quickly or risk sitting on a title which consumers refuse to purchase.