State of the Industry Looking Grim

Home Media Retailing magazine’s July 17-23 issue includes an article titled “Anime Taking Some Punches” which includes startling facts about the American anime industry. Some quotes from the article include:

“Anime DVDs account for less than 7 percent of the releases in the market since the format’s inception, according to The DVD Release Report.”

“This year, only powerhouse Geneon is on target to release more titles than it did last year.”

“‘A title that cost $2,500 an episode a couple years ago would now cost $20,000 or $25,000 an episode,’ said one industry head. That’s pricing some companies out of the domestic anime business.”

“‘Now, when it gets to be a bidding war for a title, we can’t compete,’ said Tokyopop spokesman Matt Nixon.”

“Perhaps the biggest problem anime companies are facing is the relative stagnant growth of the fan base.” “‘We need to reach out to more than just these core fans,’ Bandai’s Jerry Chu said.”

“Nobody at Anime Expo predicted the demise of the domestic anime industry. But industry executives did predict more than one company will bow out of the business.”