Ask John: Why Are Good Anime Overlooked for American Release?

Question:
Why are there so many great series that never seem to get licensed for North American release? I know there are a number of great titles that deserve to be brought over here, but it seems as if the companies don’t ever mention the titles they’re interested in, or seem to bother noticing. For example it’s been over a year since the Xenosaga anime series has ended. With such popularity of the game itself, why hasn’t anyone been able to license it over here? Is it because they really think the majority of the public wouldn’t be interested in the anime at all? That doesn’t seem to make sense. Don’t the companies ever listen to the fans instead of being afraid of possible profits or listening to their shareholders?

Answer:
There are probably too many different factors involved in American anime licensing for me to be able to cover them all in a reasonably brief response. Licensing may be influenced by licensing fees, availability, licensor stipulations, the financial means of the potential distributor, the tastes of the distributor, the distributor’s plans for the title, the title’s American market potential, the title’s content and suitability for American release, and probably numerous other conditions that I’ve forgotten, or which I’m not aware of. With my own experience in being involved in international anime licensing, and my second-hand knowledge of America’s anime industry, I’ll attempt to provide an overview that broadly answers your questions.

I can say with certainty that the core members of America’s anime distribution industry are very conscious of what American anime fans are watching, what they’re interested in, and what types of anime they’re interested in. Although I often wish the situation was otherwise, anime distributors are not altruistic non-profit organizations. Anime distributors are multi-million dollar businesses that must concentrate on fiscal realities in order to stay alive. It’s admirable to wish to license and distribute an influential and historically significant anime series like Rose of Versailles or Princess Knight, but doing so is almost a guarantee of losing money. A title like Xenosaga the Animation may remain unlicensed because its licensing fee may be considered too expensive; the show may not be available for international licensing due to disputes among the original Japanese owners, producers and investors, or may not be available because the Japanese owner doesn’t want the show distributed internationally. Or the show may possibly be unlicensed because it’s not considered a strong investment. After all, the Xenosaga anime was not highly successful in Japan, and the show was heavily criticized in America’s fan community.

Right Stuf’s recent acquisition of the second half of Super GALS! Kotobuki Ran is an enlightening example of the compromise necessary between commercial licensors and the consumer market. Right Stuf has stated that demand from the American fan community encouraged the acquisition of the show. However, Right Stuf initially set a target goal of 600 pre-orders. That goal has now been exceeded, but even if it’s doubled, that’s still only 1,200 sets sold. A best selling mainstream American animated film can sell a million copies in a few days, yet an anime that had enough fan demand to get licensed seemingly struggles to reach a thousand unit sales. In simple terms, popular and deserving anime series not available in America aren’t overlooked; there’s probably a reason why they haven’t been licensed. An anime series that’s popular in the fansub community may have a few thousand American fans, but even if every single one of those fans actually purchased a legitimate, official copy of the legal American release (which is very highly unlikely to happen), a few thousand sales may not generate enough revenue to even break even on licensing, translation, and production costs.

On a tangential topic, there are two primary reasons why domestic anime companies generally don’t reveal which titles they’re seriously interested in licensing or are negotiating for. Although they may be polite to each other, America’s anime distribution companies are competitors, and company secrets contribute to financial success. No one wants to give away valuable ideas or hints, or create more competition for themselves. Furthermore, considering how close knit the American anime industry is with the fan community, creating anticipation for potential licenses that aren’t completed only generates criticism and negative word of mouth. It’s safer for America’s anime distributors to only reveal confirmed plans and acquisitions, not goals or business strategies.

America’s anime distributors do pay attention to the requests and demands of the fan community. Just a small handful of examples include Right Stuf licensing Super GALS! season two, AD Vision reversing its decision to change the American name of Utawarerumono in response to criticism from fans, Media Blasters releasing Kite fully uncut and obtaining the rights to re-release Shin Bible Black with its original Japanese dialogue, AnimEigo acquiring Yawara, and the way FUNimation has evolved its entire business strategy from its inception until now. Unfortunately, it’s simply not physically possible for America’s anime industry to satisfy each and every one of the fan community’s desires. And the commercial industry needs consumers and fans to respond and support its efforts. I often hear fans complain about older, obscure, and deserving anime titles going unlicensed, but often times consumers and anime fans refuse to buy older, obscure, and deserving titles that do get released in America. Unlike many industries in America, the anime industry is really a partnership. I believe that America’s anime industry tries to satisfy the demands of the American fan community, but sometimes that effort just isn’t an available option, and the anime industry can’t try to satisfy the fan community if the fan community doesn’t also hold up it’s end of the bargain by supporting the industry’s efforts.