Ask John: Why Don’t ‘B’ Titles Sell in America Anymore?

Question:
I read Anime News Network’s interview with John Ledford in which Mr. Ledford stated anime titles with only “B” and “C” levels of popularity just will not sell in America anymore – everyone is buying only the most popular “A” titles. Is this true? If so, why has it happened and what can be done to change it so that a bigger and wider variety of anime becomes available in America?

Answer:
From my position as a professional anime retailer, I can confirm from first-hand observation that there are many anime titles released in America which do not sell particularly well. American anime DVD sales are heavily influenced by exposure and name recognition. What the industry refers to as “A” titles are not necessarily the highest in quality. Industry rankings like “A,” “B,” and “C” refer to series’ name recognition and sales potential. The anime titles most widely known in America sell well while obscure titles, regardless of quality, do not sell well. Some of the blame for this situation rests on America’s distribution industry, but a larger degree of the blame, I think, is the responsibility of American fans themselves. American consumers just seem to have very narrow taste in anime, and have developed a resistance to effectively supporting anime.

A year ago, market saturation was widely blamed for the slow-down in American anime sales. The theory was that there were too many different anime titles available in America, making it impossible for American consumers to effectively support them all. I refute that assertion. Japan is a country the size of California, yet Japanese consumers manage to support exponentially more anime releases, at significantly higher prices, than all of America combined. In pure mathematical terms, it should be virtually impossible for America to genuinely hit market saturation in terms of number of titles. The market saturation that slammed the American anime community a year ago wasn’t entirely caused by a glut of titles; it was caused by a glut of releases. Domestic licensors releasing multiple versions of series – for example first releasing a title in single DVDs, then in double disc sets, then again in series sets – floods store shelves, causing retailers to scale back their purchasing. Flooding the market with multiple re-releases also encouraged consumers to stop buying initial releases, and encouraged consumers to stop paying the retail prices that distributors depend on to stay in business.

Despite the fact that Japan has fewer potential anime consumers than America, and releases much more anime product than America, Japan hasn’t encountered the tremendous market slow-down that America has encountered. I attribute the reason for Japan’s continued support of its anime industry partially to the fact that Japan’s anime industry does not undervalue itself. Anime DVDs are expensive in Japan, and discount priced re-releases are an exception, not a predictable standard practice as they are in America. Japanese consumers recognize that anime is expensive, and accept that situation. American consumers inaccurately compare imported, niche market anime sales to domestic mainstream American releases and expect low prices. American corporate greed, or at times financial desperation, have caused American distributors to appease consumer demands by slashing prices on anime DVDs. Inexpensive domestic anime DVD releases generate instant profits, but undermine the long-term sustainability of the American anime industry. Companies like Central Park Media, which continually undercut its prices, eventually drove itself out of the industry. AD Vision, which likewise flooded the market with re-releases, has changed its commercial practices and has had to seek partnerships with Japanese investors in order to return to near its former status.

So if the business practices of the American anime industry have contributed to diminished support for anime in America, it’s anime fans themselves who are even more culpable. The temptation of cheap anime has convinced American consumers that anime isn’t worth high prices. Furthermore, the easy availability of anime has compromised the feeling of necessity to support the industry. This is where fansubs and illegal distribution come into effect. The availability of free, illegally distributed anime and the availability of cheap official releases have combined to convince consumers that anime isn’t worth paying for. American consumers will eagerly spend their money on high profile titles. Reliable, popular titles like Naruto, Fullmetal Alchemist, and Dragon Ball Z continue to sell well because American consumers purchase safe and familiar anime. Consumers buy what they’re familiar with, what they’re comfortable with, and what their friends and neighbors are buying. Consumers don’t spend their money on lesser known or more uncertain titles because they know that they can either obtain these titles for free through illicit means, or they know, with certainty, that these titles will soon be available in cheaper official re-releases.

Fansubs are a double-edged sword. America’s highest profile and most successful anime titles undeniably owe some of their fortune to the market and word-of-mouth interest generated by fansub distribution prior to their official American release. I seriously doubt that titles like Naruto, Bleach, Fullmetal Alchemist, Ghost in the Shell, and others, would be as successful in America as they are had they premiered in America with no advance exposure. Popular fansubs lead to successful commercial releases. But while American consumers feel a pressure to buy the highest profile releases, they don’t purchase low profile titles because fansubs suffice, or they’ve been indoctrinated into the belief that only the highest profile titles, or the titles they like best are worth supporting. Contemporary American consumers simply feel no commitment or responsibility to support obscure titles or niche releases. The feeling of entitlement – the feeling that consumers have an inherent right to watch anime and selectively support only titles we want to support, and the feeling that consumers have a right to pay whatever they believe is relative and fair for particular anime – has superseded the traditional American precedent to support the anime industry.

The focus of anime in America has shifted away from American fans supporting a small, struggling industry to a perception of the industry existing to satisfy the whims of consumers. The sentiment of anime being a two-way street has given way to a perception of anime being a one-way distributor to consumer product that will exist with or without consumer reciprocation. Unfortunately, that theory doesn’t reflect reality. There are fewer anime titles being released in America now than there were five years ago because consumers are buying fewer anime titles, or buying fewer titles in large numbers, or buying fewer titles at prices which actually support industry growth. For better or worse, Americans have shed their willingness to support anime and replaced that sentiment with a willingness to support anime, “as much as it suits me.”

The number of anime titles coming to America seems to be declining, and many American fans don’t care because titles will always be available through illicit means. Fans also don’t care if fewer niche titles reach America because of the perception that only high profile titles are worth buying anyway. The American industry may combat this growing sentiment by cutting costs on niche titles (i.e. subtitled only releases), changing distribution methods (i.e. digital distribution and produced on demand DVDs), or raising prices on niche titles to offset fewer sales (i.e. Bandai Visual USA). But the ideal way to reverse this trend is for American consumers to become aware of the trend. If American fans renew their commitment to support the anime industry, and reinvigorate their interest in the depth and diversity of anime instead of concentrating exclusively on a handful of “A” titles.

America’s anime industry is not self-sufficient. It will not thrive and grow without the support of America’s anime fans. Fansubs are not a replacement for official releases. The cost of anime cannot be compared to conventional American home video. Ultimately, as common sense dictates, we get what we pay for. Select, high profile titles overshadow smaller releases because consumers refuse to support smaller releases. It’s reasonable for consumers to be hesitant to spend money on uncertain or unfamiliar goods, but anime fans need to act like anime fans in order to sustain a thriving anime community. Ultimately, looking beyond narrow personal policies, being willing to encourage the growth of the anime industry and appreciation of anime is the only thing that will allow America’s anime industry to bloom.