Ask John: Does Buying Out-of-Print Anime DVDs Help the Industry?

Question:
Does buying out of print anime from defunct or dormant companies (like CPM or Animego) benefit the anime industry? I’d like to know if buying old OOP helps the Western market for anime in any way even though it may be a company that’s not around anymore. Especially since now it’s easy to just download nearly anything, is only brand new releases from vital companies the way to help the market for anime stay alive?

Answer:
Actually, where consumers purchase their anime from is just as important, if not more so, than what anime they purchase. Practically speaking, collecting out-of-print domestic anime DVDs does little to support the anime industry. The original manufacturer/distributor earned its wholesale revenue from out-of-print DVDs long ago, so the consumer sale of the disc now only provides revenue to the retailer. However, purchasing anime DVDs from a retailer may encourage the retailer to continue stocking or even purchase more anime DVDs from current, active distributors. Simply purchasing anime DVDs – any anime DVDs – from retail companies lets these companies know that a demand for anime DVDs still exists. While the purchase of out-of-print discs may not contribute profit directly to any anime company, the purchase encourages retailers to not disregard or dismiss current anime releases from active distributors.

Certainly, purchasing new release discs does the most to benefit the domestic anime industry. Typically American anime distributors deliver a supply of new anime DVDs to a wholesale distributor that sells a supply of the discs to retailers. When those discs sell to consumers, the original distributor receives the wholesale cost of the disc plus a small amount of per-disc sales royalty, usually 90 days after the initial DVD release street date. Typically small retailers purchase their supply of DVDs from the wholesaler and keep the discs until consumers buy them. Big, influential chain retailers like Best Buy and Wal-mart have the clout to force wholesalers to accept returns of unsold discs after 90 days. If wholesalers receive large shipments of returned, unsold DVDs from retailers, the wholesalers eventually return those discs to the original manufacturer/distributor in place of monetary revenue. So distributors like FUNimation, Viz, and Media Blasters patiently wait the initial 90 days after release and hope to receive money from sold discs, not returned unsold discs.

Purchasing new release DVDs keeps retailers happy, prevents unsold discs from being returned to the distributors, and sends money back to the licensor/distributor. Purchasing old, out of print DVDs that remain on the shelves of small, specialty retailers helps them recover their original cost of purchasing the discs, and provides revenue for these small companies to continue stocking new anime. Purchasing out of print discs that remain on the shelves of big retailers doesn’t contribute any money to the anime industry but does show the big retailer that anime still sells, hopefully encouraging the retailer to continue stocking current anime. Purchasing anime DVDs from fellow fans, for example, through Ebay, doesn’t really make any significant contribution to the anime industry in any way, but hopefully the fans that do purchase anime DVDs from other private fans are also devoted enough to likewise purchase new discs from commercial retailers.

Ultimately, buying new release anime DVDs and Blu-rays is the most effective way to support and sustain the domestic anime industry. But purchasing any legitimate anime DVDs any way is still a greater help to the anime industry than not purchasing any DVDs at all. After all, if no one buys domestic anime DVDs, there will be no reason to produce, release, and distribute domestic anime DVDs. Practically speaking, doing something is better than doing nothing.