Ask John: Are Bargain Priced DVDs a Continuing Industry Trend?

Question:
I have seen a lot of new anime titles out there. I’m also finding a lot of old anime beig re-hashed, giving them titles such as “signature” series or what-not. I’ve also noticed the price difference ($30.00 dvd versus $19.99). Is this trend going to continue for anime titles that have been out for a while? It makes me not want to buy new titles and just wait for them to get old so they can be rehashed for a cheaper price.

Answer:
Traditionally anime releases in America have held steady in the $30 per volume range. $30 to $35 per volume was the original retail price of subtitled anime during the VHS era, and that price range carried over into the DVD era. This price point was necessary to cover the expense of licensing and domestic production while still generating a profit. Especially recently, particular retail prices for anime releases have drastically fallen. Geneon, Central Park Media, and AD Vision have all established reduced price lines of older catalog titles. Media Blasters has slashed its retail prices on less popular titles. AD Vision, especially, has developed a habit of re-releasing complete sets of anime series at 50% or greater discount relatively shortly after the title’s American debut. And now FUNimation has announced plans to release single episode DVD volumes of Dragonball GT and other anime titles at $3.99 each. Presumably these “DVD Singles” will be edited, English dubs only. But for consumers who are only interested in watching the American TV version episodes, it’s actually cheaper to buy 3 or 4 FUNimation DVD Singles than buy the actual full length DVDs that contains the same episodes.

Presumably the domestic anime companies releasing these discounted DVDs and releasing new titles at price points as low as $14.99 per DVD, are doing so in order to maximize immediate sales and amass quick profits. In what seems to be a competition of lower price points, each company seems to be attempting to monopolize consumers and squeeze out competition. At the same time, other new DVDs from even these same companies are still released at $30 price points, with limited editions costing as much at $60 each. I have to wonder if these companies have considered the long-term effects of such marketing strategies, or if they’ve simply chosen to disregard the hardcore anime fan community, or if we’re actually seeing the beginning of American market forces influencing the American anime industry.

Less expensive anime DVDs certainly do encourage increased sales. But bargain priced re-releases and selective bargain priced DVD releases theoretically encourage consumers and fans to cease buying new release titles. Why purchase a $30 DVD on release date when the same DVD will be available for $10 or $20 only a year or less later? Bargain priced releases and discounted series sets are profitable now, but will they also ultimately destroy the American anime distribution industry? It’s simply not possible to continue releasing new anime DVDs that no one buys because everyone is waiting for them to get cheaper. Bargain priced re-releases are only possible because the DVDs sold well during their original, full price release. If few customers buy a new release because they’re all waiting for it to be re-released at a cheaper price, the distributor makes no sales and no profit, and so stops releasing anime altogether.

The only way for lower priced anime DVDs to not undermine the long term stability of the industry is for all anime DVDs to lower their retail prices. So far, that’s not happening because plenty of new releases still debut at $30 or more. I’m as grateful as any fan for inexpensive anime DVDs and bargain priced re-releases, but I’m fearful that this trend of prioritizing immediate profit by encouraging consumers not to buy new, full priced releases will be harmful to the industry and ultimately fans themselves. Honestly, I don’t know if inexpensive anime DVDs are the future of the anime distribution industry that we’re beginning to see occur now, or if they’re a narrow-minded attempt to boost short term profits by encouraging consumers to play a wait and see game instead of eagerly and immediately supporting new releases. Based on market trends, from a consumer perspective, it is wiser not to buy DVDs when they’re first released because they’ll almost invariably be re-released a year or two later at half the price, or later re-released in a better version. But if no one buys anime DVDs when they’re first released, it won’t be long before there are no new anime DVDs released at all.