Ask John: Why are DVD Collections Cheaper Than Separate DVDs?

Question:
Why are DVD collection cheaper then separate DVD? I have notice this recently when I saw Haruhi DVDs. Separate DVDs would cost more then the collection. Why is it like this? Is it worth waiting for DVD collections?

Answer:
There are two primary explanations for the disparity between the retail price of initial individual DVD volume releases and re-releases in multi-disc sets or complete series collections. The most frequent reason for this difference lies in the fact that domestic distributors strive to recover their licensing and localization costs from the sale of initial, individual DVD releases. The conventional American $29.98 price point for a single new release anime DVD is a standard because the domestic market traditionally won’t support a higher retail price while a lower retail price won’t generate enough revenue to recover the acquisition and production costs of the show.

After the successful initial release of an anime series in sequential individual discs, the licensor has recouped the investment put into the show, so additional sales generate primarily profit. At that point, a domestic distributor wisely reissues the title in a format and price that’s attractive to a large consumer audience because there’s no necessity for the title to recover its initial expenses. In other words, distributors repackage and re-release successful series at a lower price because they can.

The second reason for inexpensive re-releases is desperation. In a case in which the initial, individual volume release of a title is a commercial failure, its distributor may repackage and re-release the show at a lower price in hopes of stimulating some additional sales. In this case, the title is probably destined to lose money, but recovering some revenue from the sale of an inexpensive complete collection is preferable to simply losing money on the title.

Note that these explanations only apply to re-releases. Anime series initially released in multi-disc or complete sets are typically the beneficiary of lower licensing fees or other special arrangements between the Japanese licensor and the American distributor.

The tendency of American distributors to repackage and re-release anime DVD series in complete sets at reduced prices has encouraged consumers to delay purchasing debut anime titles until inexpensive collections are released. Unfortunately, this tendency has created a hazardous trend that has crippled the American anime distribution industry. Commercially successful anime series can only be re-released in bargain priced collections after their initial individual volumes have been successful. That fact seems to punish the consumers that diligently purchase initial individual releases. But bargain priced re-releases can only happen if consumers support and purchase the original release. Boycotting the initial individual volume release may result in the release of a less expensive collection, but such a boycott also drives distributors to financial ruin.

ADV Film’s canceled distribution of Best Student Council and Innocent Venus prior to their re-release as complete collections attests to the fact that collectors who are interested in particular anime titles need to support those anime titles by purchasing them. Consumers may understandably worry over anime series releases being prematurely canceled, but it’s just common business sense for distributors to not continue producing and releasing DVDs that don’t sell.