Ask John: How Much Impact Does Piracy Have on the American Anime Industry?

Question:
To what extent do you think piracy hurts the anime and manga market, as it exists in North America? I am referring to “fans” downloading/burning commercially released DVDs and fan translated mangas, etc. I think this is a serious threat to the industry.

The people who are unwilling to wait for a domestic anime release are the very people who would be motivated by their obsession as to go out and buy the product if it was avalible simultaneously. With that core fanbase having already watched the show via file sharing networks months/years before its release in America, doesn’t it create a problem for sales revenue? And when you consider that anime DVDs cost anywhere between $20-30 a piece, piracy is more and more of a necessity for those individuals that lack respect for the intellectual property they so desperatley want. The same goes for manga; you can find scores of “Manga CDs” on eBay. And manga is, unless sealed in a polybag, something that anyone can read at a bookstore instead of buying it. I’m interested in your thoughts on piracy and anime/manga, and the extent of the damage it has on licensed anime.

Answer:
Unfortunately, there’s really no way to estimate how much impact piracy and unauthorized access has on the American anime industry. I’m not aware of any hypothetical estimates on the financial impact of bootlegs, counterfeits, and unlicensed copies in the American market. As far as I’m aware, no statistical study has ever been conducted to determine the impact of video and manga piracy in America. Such a study would be exceedingly difficult to conduct because there’s a lot of grey area involved in American anime piracy. I think it’s safe to assume that a percentage of American consumers who do consume unlicensed anime or manga also legitimately purchase a lot of anime and manga. A straightforward accounting of the amount of piracy in America and its estimated dollar value may not reflect the amount of legitimate sales generated as a result of initial unauthorized access. Countless times I’ve heard anime fans state that they can’t or won’t invest in an anime or manga unless they know what they’re getting and know that they’ll enjoy it. That consumer confidence comes from having prior access to the product.

Anime industry observers, critics and professionals who make broad statements about the state of the anime market in America do so based on amorphous impressions rather than solid facts. For example, I know for certain that statistically anime series that have been heavily fansubbed in America sell more copies on DVD than shows that are relatively unknown in the fan community. I can’t cite exact figures, but I’m certain of the generalization because I work for an anime retail company and see first-hand which titles sell consistently and which don’t. Furthermore, opposition to anime piracy in America is not limited to concern with just its impact on the American market. I’ve personally heard A.D. Vision representative Matt Greenfield tell a convention panel audience that American produced fansubs have a harmful impact on the anime industry because they’re exported to Asian countries like China and sold as counterfeit commercial translations. So some of the American opposition to anime piracy is not related to the impact piracy has on American retail sales.

It’s fair to think of fansubs, scanlations, imported Asian counterfeit DVDs, and bootlegs as a serious threat to the American anime industry because there’s no substantial evidence to support or negate that belief. I don’t oppose the assumption that piracy significantly reduces the number of anime DVDs and manga sold in America. I’m sure that piracy and unpaid access to anime and manga do compromise legitimate sales. However, in the absence of statistical evidence, there’s no way to tell if the amount of anime and manga purchased in America would be more, less, or the same if there was no anime piracy in America.

I’ve encountered countless consumers who complain about the expense of anime and cite the high cost of the hobby as a rationale for piracy. A conscious decision to obtain unlicensed alternatives to legitimate releases is unethical and detrimental to the future of anime. There’s no valid justification for circumventing the legitimate purchase of an available official release. Anime is not cheap and likely never will be because anime will never be as mainstream or as profitable as live action film. However, sampling anime and manga in advance of an official local release does not deprive creators or distributors of their income if consumers do purchase releases targeted at them when such releases become available. In fact, my observation seems to confirm that advance unauthorized access to anime and manga can create word of mouth interest that results in more official sales than a release would have gotten otherwise.

Again, to cite another relevant personal anecdote, my DVD shelves are filled with literally hundreds of official American and imported Japanese DVDs that I’ve never even unwrapped. I admit that I’ve watched countless anime series in advance of their American release. I also go out of my way to purchase official anime DVDs just to support the shows I like and directly contribute to the anime industry. I, like many American anime fans, do consume unlicensed copies of anime and manga prior to their American release, but not as an alternative to official American releases. I make an extraordinary effort to purchase an exceptional amount of officially licensed anime, manga, and merchandise in order to more than make up for what I preview. Undoubtedly even the slightest illicit access to anime and manga is unethical; however, I honestly believe that I contribute more to the anime industry than I take away from it, and my actions may be motivated by self interest, but they’re not selfish or malicious. If I may stand as a representative of American anime fans and consumers, anime piracy can only have a serious impact on the American and Japanese anime industry if fans and consumers allow piracy to have a serious impact.