Ask John: Will ImaginAsian’s Anime Distribution Strategy Be Successful?

Question:
Do you think ImaginAsian’s strategy for releasing classic anime on DVD will be successful?

Answer:
The particular brilliance of ImaginAsian’s anime acquisition and distribution strategy lies in the fact that, depending on the precise stipulations of the company’s licensing contracts, there’s virtually no way it could fail. In a case of a distributor acquiring Orguss, Cat’s Eye, and Nobody’s Boy Remy, the qualifications for success are obviously relative. I can’t conceive of any commercial company investing in a line-up of vintage anime with expectations of reaping tremendous profits. ImaginAsian’s business model is especially well suited to the titles acquired.

These three vintage television shows are now airing on the ImaginAsian television network. None of these shows is destined to become a smash hit, but the entire ImaginAsian broadcast line-up is specifically targeted at the American niche market for Asian film. So the television broadcast alone provides ImaginAsian with unique content. The value of the TV broadcast alone is probably worth the amount ImaginAsian probably paid in distribution fees.

These three anime series will be released subtitled only, minimizing localization costs. (The first 18 episodes of Orguss will be bilingual, but ImaginAsian is not paying for a new, original dub.) Furthermore, the DVDs will produced on demand, meaning that ImaginAsian won’t have to expend thousands on DVD replication, warehousing, and distribution. Given the DVD release strategy and the low retail prices of the discs, ImaginAsian probably won’t profit from the DVD release. The DVD release is probably just a second method, in addition to the television broadcast, to make these anime series available to consumers, and gain exposure for the ImaginAsian brand name.

I can’t imagine any scenario involving ImaginAsian having paid exorbitant licensing fees for its initial three anime series. In every respect, the acquisition seems primarily intended to provide content for the ImaginAsian TV network and bring these vintage shows to the American market. There’s no sign to suggest that ImaginAsian is hoping to profit from a domestic DVD release, as other domestic anime distributors do. So if a successful television broadcast on a niche network with limited national exposure is all that’s required to make ImaginAsian’s anime licensing successful, I virtually can’t imagine any situation in which ImaginAsian’s venture won’t be “successful.” ImaginAsian’s licenses will never compete with or rival the popularity of domestic titles like Evangelion, Cowboy Bebop or Trigun. And ImaginAsian doesn’t seem to be trying to compete with other American anime distributors on the DVD-release-for-profit business model. So the qualifications for success for ImaginAsian are much lower and easier to attain and sustain than the measure of success for other American anime distributors.