Ask John: Why Isn’t Anime Getting Cheaper?

Question:
Looking back on how much anime VHS tapes would cost, and since anime is more mainstream than it used to be and more anime is sold now than ever, isn’t it about time the companies that release [anime] DVDs do something for the fans and lower the MSRP for them? I mean, the cost of Hollywood releases are getting cheaper than ever, so I think anime DVDs should follow the trend and help out avid anime fans that want to own every release there is. A good portion of viewers are younger people too. How many teens have that much money to throw around anyway?

Answer:
It’s certainly reasonable for consumer level anime fans to expect the cost of anime to decrease, especially now that the anime distribution industry in America is over 12 years old. However, consumer level anime fans aren’t always cognizant of the factors that effect the retail price of anime, and may not be privy to certain information that the professional distribution industry is. And furthermore, fans themselves have a significant influence on the cost of anime released in America.

There should be little argument with the fact that anime released in America is now less expensive than it was a decade or more ago. In the early days of the American anime distribution industry, it wasn’t uncommon for 30-45 minute long subtitled only VHS tapes to retail at $30 – $35 each. Streamline released single 25 minute long dubbed anime episodes at $24.95 each. Now it’s not unusual to find bilingual DVDs with 4-5 episodes retailing for as little as $20. Central Park Media has just inaugurated its introductory line of 2 episode sampler DVDs that retail at $7.99 each. And early next year Geneon will introduce its “Signature Series” line of Playstation 2 style “red band” anime DVDs retailing at $20 or less per disc. While new release anime titles still retail for roughly $30 each, the same way they did 10 years ago, the difference is that now consumers get volumes with much longer running times for the same $30.

Older catalog titles decrease in price because they can. A title that’s been on the market long enough to be re-released in a boxed set or collection or bargain priced edition has already earned back its licensing fees and production costs, so a reduced price re-release is virtually pure profit. There are three main reasons why new release anime titles still retail for $30 each: the cost of licensing has not decreased, the market for anime has not dramatically grown, and fans themselves are apparently willing to pay high prices for anime.

In fact, if anything, the cost of bringing anime to America has actually increased over the past decade. As Japanese producers realize that there’s a lucrative international market for anime, the fees they demand for translation and distribution rights to anime reflect the fierce competition among domestic distributors bidding for titles. For example, it’s not a well kept secret that AD Vision snatched the distribution rights to Bubblegum Crisis 2040 away from AnimEigo. Urban Vision publicly announced that they were nearing the completion of a deal for Berserk when Media Blasters suddenly grabbed the title. There’s a rumored good-natured antagonism between AD Vision and Bandai Entertainment over AD Vision, not Bandai, acquiring the Azumanga Daioh TV series. Even AN Entertainment has tried to acquire titles, only to find them already licensed for in final negotiations. With so much demand and so much competition, it’s rare for a Japanese copyright holder to willingly give up a title for English language distribution “cheap.” So in order to remain solvent, American distributors have to pass along expensive acquisition fees through retail DVD prices.

In 2001, largely due to the “Pokemon fad,” the American anime industry mushroomed from a $100 million dollar a year industry to a $500 million a year industry. But since 2001 the American industry has been growing at only a marginal 10 to 20% growth rate (estimated by industry analyst ICv2). That means that there simply aren’t a massive consistent number of new anime fans joining the hobby and buying DVDs. And with the ever increasing number of anime DVDs available in America, it’s becoming increasingly difficult to existing fans to even keep up. Major Hollywood studio release DVDs like The Matrix Reloaded can be double disc special editions and retail at under $20 because they sell millions of copies. Anime DVDs in America just plain do not sell millions of copies. In fact, Viz has reported that even highly popular anime DVDs like Inuyasha may sell less than 10,000 copies. A major Hollywood DVD release that sold less than 10,000 sell-through copies would be considered a horrific failure!

And finally, anime fans themselves have not demonstrated an appreciable demand for less expensive anime DVDs. In fact, the exact opposite seems to be the case. Expensive limited edition releases and upscale DVDs with bundled series collector’s boxes routinely sell out quickly. And there are now a strata of rarified anime fans that refuse to buy DVD series that don’t come with a collector’s box. While collector’s boxes and limited editions full of plush toys and soundtrack CDs and other collectable goods are mana for the collector’s they’re intended for, their success and the continued demand for them also tells American anime distributors that consumers are not only willing, but are eager to pay $35 up to $60 for single domestic anime DVDs. Fans and collector’s certainly don’t want to give up their posh limited edition DVD sets, and domestic distributors of course kill for releases that can support strong selling DVDs that retail at $35 or more per disc. The result is the simple traditional rule of anime: anime isn’t cheap.

The easy alternative, set upon by many “fans,” is purchasing cut-rate “import” DVD sets on Ebay and Amazon.com’s affiliate retailers and “Discount Anime DVD” websites. Sadly, all of these “steal” priced anime DVDs are actually stolen. They’re all unlicensed bootlegs made by Chinese and Taiwanese video pirates. (I’d feel remiss for not mentioning bootleg DVDs, but they are not the point of this response.) Part of the reason why anime is expensive is because the money we anime fans pay for official anime DVDs is the money that pays for Japanese artists’ food and clothing and rent. Art has never paid well. We need only look at history to see countless examples of master artists dying in poverty. By the same token, supporting art is likewise not cheap. As an anime fan, it’s discouraging not to be able to afford every DVD release. But as a contentious anime you have an obligation to realize that every officially licensed anime DVD you buy literally supports the art form and the artists responsible for making anime. There are too many factors prohibiting a dramatic decrease in the price of anime to see anime DVDs become as affordable as other types of DVDs in the foreseeable future. But believe it or not, anime in America is actually less expensive now than it was a decade ago. And you can (and should) temper your anxiety over the cost of anime DVDs with the knowledge that buying an anime DVD at full price not only brings more anime into your personal collection, it contributes to the betterment of the hobby for everyone involved in the anime community.