Ask John: When Will American High Definition Anime Release Become Common?

Question:
When are American licensors going to decide to release thier anime TV shows on Blu-ray? So far there are a few anime movies to pick up, but since WB and New Line made the switch it should be obvious to let open the floodgates.

Answer:
I’ve addressed the question of high definition anime releases before, but since this question comes up periodically, it may be time to discuss this topic again in light of recent events. The format war between Blu-ray and HD DVD is still ongoing, but the tide of battle certainly seems to be turning in favor of Blu-ray. Warner Bros and New Line have recently phased out their support for HD DVD in favor of exclusively utilizing the Blu-ray format, bringing major studio backing of Blu-ray up to roughly three-quarters of the American movie industry. The nationwide Target retail chain carries only Blu-ray hardware in its retail stores. Since the introduction of the two high definition formats, Blu-ray media has captured nearly two-thirds of all domestic high definition disc sales. And especially relevant to anime fans, the Blu-ray format currently commands a dominating 96% market share of all high definition media released in Japan. (For the sake of journalistic objectivity, I personally don’t own a high definition media player and have no affiliation or bias to either Blu-ray or HD DVD.)

However, to cite some statistics from the January 6-12, 2008 issue of Home Media Magazine, both Blu-ray and HD DVD presently have only around 400 releases each, and according to a prediction from the NPD Group research firm, high definition home video discs are expected to account for only 3.5% of this year’s domestic packaged media sales. As of last September, a mere four months ago, a study conducted by Warner Home Video concluded that 50% of respondents were uninterested in high definition media. While mainstream American adoption of high definition packaged media has been laggard, the anime fan community has traditionally been on the forward cusp of adopting new technology. However, domestic anime DVD sales have been steadily decreasing over the past two years. While I can’t discount the possibility that the American fan community is purchasing fewer DVDs because collectors are holding out for high definition releases, I don’t see any evidence of that being the case. I can confirm that sales of the handful of high definition anime releases that are available domestically have not been especially strong for AnimeNation.

The cost of mastering anime in high resolution, and the cost of manufacturing high definition discs are still significantly higher than the costs of producing standard definition discs. America’s anime industry is certainly more likely to increase its production of high definition releases when a clear and singular format has “won” the modern format war and emerged as the singular choice for high definition releases. However, the format war alone is not the primary blockage of the floodgates to high definition anime discs. At the present time there’s simply not enough evidence of enough consumer demand for domestic high definition anime releases to justify a large scale adoption. Even in Japan, where better than nine out of every ten high definition discs sold is a Blu-ray disc, there’s still no significant movement in the anime industry to adopt Blu-ray as either the next home video standard, or a dual standard in conjunction with standard definition DVD. Even in Japan, where Blu-ray has practically won the format war, high definition anime releases are still a relative rarity.

With the speed at which modern technology evolves, there’s no guarantee that Blu-ray and HD DVD will not be superseded by more advanced home video formats before they ever gain significant mass market traction. One can’t rule out the possibility that Blu-ray will be for this generation’s American anime community what laserdisc was for the American anime industry in the 1990s – a transitional footnote with a handful of releases.

Presently only four domestic distributors offer or have announced plans to offer anime titles on high definition media, and two of those distributors – Sony Pictures and Warner Bros., are not typically considered part of the core domestic anime industry. FUNimation has released only one high definition disc and currently has no other high definition releases on its schedule. Bandai Visual has released domestic titles on HD and Blu-ray media, but has no future releases scheduled for either format. In fact, presently the upcoming Blu-ray version of Appleseed: Ex Machina from Warner Bros. is the only high definition anime disc confirmed for future American release. When the entire American movie industry is avoiding high definition anime releases, it’s because there’s just no significant consumer demand for them. American anime fans are purchasing fewer DVDs, and even fewer high definition anime discs. The costs of producing and releasing high definition anime titles in America are high, and the rewards from doing so are small. Considering the present condition of the American anime consumer market and the health of the American anime industry, I don’t think we’ll see a large scale flood of high definition anime titles in America in the foreseeable future even if Blu-ray definitively wins the format war. The price of niche market high definition anime releases won’t drop until they hit a sales watershed, but sales won’t reach that consistent height until prices come down and adoption becomes commonplace – a perpetual conflict that’s not likely to be resolved in the immediately foreseeable future.