
This has been a topic that has been brewing in my head for a few days. Now I haven’t been watching anime for ages honestly it’s been almost one year. In that one year I’ve completed about 30 animes, met a lot of new people, began blogging on this awesome site.
Being an American, getting into anime was hard because it’s stepping into something new. I found a lot of great anime via help over at Anime On DVD (Animeondvd.com) a great R1 review site along with forums. I quickly realized that the “new” anime that was hitting American shores was sometimes quite outdated or by the time it hit American shores it was already on it’s third or fourth varation over in Japan.
While learning more about anime I began to really like certain distribution’s of the DVD I have my favorites, Funimation, ADV, Geneon in that order. I than opened up to fan subbing, I had heard about it but didn’t really know where to began recently I’ve gotten into looking forward to the newer anime in Japan. It’s also really fun to discuss something that isn’t “outdated” to some people as well.

Recently their has been trouble for Geneon, they laid off a large amount of their sales staff and than attempted to reach a deal with ADV Films to handle distribution, marketing and sales of Geneon properties on October 1. Geneon, however, will still be able to acquire, license and produce anime in North America, but everything else will be handled by ADV.
So in a nutshell Geneon would still exist their brand name intact and if you weren’t an anime insider or a news reader you wouldn’t have a clue ADV had their hand in keeping Geneon afloat. Unfortunately On September 21, 2007, Dentsu confirmed the distribution deal as canceled through a press release, no details were given other than Geneon and ADV were “unable to reach a mutual agreement.” and that “From October 1, 2007, Geneon USA will focus mainly on management of its works portfolio.
So I ask you the readers and mainly any American anime fans that buy and otherwise watch subbed anime should we worry? is this a hint of something bigger to come? also where does this leave Geneon with their titles that they’ve already annouced.

Now I’m not into business and all that but it seems to me “will focous mainly on mangement of its works portfolio” Now I heard that they are trying to make the company work like Kadokawa is doing and just publishing. But I don’t know I dont’ have any inside contacts or really understand the whole business model I’m just a fan. Where does it leaves the titles that they have currently licensed and waiting to be released, last year they licensed Magical Lyrical Girl and most recently A’s as well.
So do those titles still get released or will they be let go and back to being unlicensed? What do you think will be the outcome in all this? do you see more, less anime being licensed next year, less releases being released in America or less dubs?
Personally I don’t know what to say I mean maybe this is a freak thing where a company just isn’t being handled very well by the top brass, maybe it’s a sign that anime isn’t a viable market to be in America I know that Bandi has been losing boat loads of money over in Japan. I guess if I had to give you my opinion I think it’s possibly a wake up call and that other companies should watch this with interest.
I consider anime an expensive hobby $20 - $50 per volume how much longer will that be the price in three or four years will we be looking back saying that was a cheap price to pay for a volume of anime? personally I just hope that this Geneon, ADV doesn’t affect the American anime industry as a whole that it just happens to be bad choices on the side of Geneon and not early look into the future of the rest of the industry crashing down around us.
I’d love to read your comments on this issue, am I thinking too much into, is enough nothing be said about it tell me.






October 1st, 2007 at 2:51 pm #0rion
Geneon has been struggling financially for years; it’s honestly not really that much of a surprise.
I think one of the big problems in the U.S. anime industry is that recently lots of companies were licensing up lots of series that weren’t really that good or popular. This year they’ve all become a little more realistic about what the market will bear profitably, and have scaled back the number of series they pick up significantly.
That’s probably the only major change we’ll see in the industry - fewer titles will be licensed for U.S. distribution.
October 1st, 2007 at 4:06 pm #shia
well… Anime is a luxury product in that sense, You do not need Anime to physically survive. In the US, My guess is that its appealing to the demographics of students and young working adults with disposable cash. But Students do not really have that much cash and cant afford to buy R2’s.
Fansubs come into play. Delivering Subtitled Anime within the week of broadcast. People get to watch latest Anime via online methods.
In terms of Exposure, The internet has propagated the exposure of anime to new heights and many japanese media companies are doing anime production because of the percieved ‘growth’ in demand of anime.(EG: TMK/JVC) My personal hypothesis is that, because Such companies sees great overseas potential, Companies are willing to invest $ and time into making them.But are they getting a good return on Investments?
Making a Anime Takes lots of money. Lets see… Main groups of people at the bottom working, Animators/Music & Effects/Voice Acting/Sales/Marketing.Above them are, Script Writers/producers/Directors. All of these are people, who need to be paid, looked after. On top of that, there is marketing costs,legal costs, licensing costs. All this add up to alot of costs. How does a Anime get its funding then? Sponsors
For those that watched the tv edition from japan. Have you ever noticed How many sponsors are there.Its like a average of 2-8 sponsors. These are companies that contributed the project. That is how expensive they are to make. Lets take a example, Seto no Hanayome. Licensing company, TV Tokyo Medianet. But sponsored by, Avex Entertainment, Square Enix, AT-X(some r-15 TV station) and Gonzo Digital Holdings. Thats how they get the capital to do the Anime. But these above are commercial entities. They can’t always do charity for free. So, Shows will have commercial belts for taking back some of the cost. But does money coming in from the commercial belts recoup back all the capital? I don’t think so. So What they will do ? Sell DVD’s to Otakus.4-5 years back when anime was still like 6-7 shows a season its was still viable. Since there were few shows. People could still afford to buy more. Thus they would be able to profit. But in the recent years… lets take for example, This fall. More than 20 shows are airing in a week . The market has been over saturated with shows. People cant afford to buy that much now. Profits suffer and they are more or likely not to be able to sustain via domestic(japan) Market.Solution to them ? Sell the rights overseas.
While more japanese companies joined in the fray to make anime,Anime was gaining popularity in the states as well as other places overseas due to the internet. This led to a Period where demand for anime is more than what the japanese could sell. It set the stage for what is happening now. Over glut of the Market.
Whats happening now I believe is the market trying to Adjust to changes. The Demand for Anime in the US has been lowered to sustainable levels where consumers think 1st before buying. But there is too much supply from the Japanese market.Geneon IMO took the believe that pleasing the Fans would be the best way to do it. but it seems like It didnt help in the end. On top of that. Fansubs are available nearly as fast as japan tv broadcast. People get the choice to pick the good shows. Moe-type shows i feel are one trick ponies. Once you watched them on fansubs. You won’t really bother to buy the show once it comes out. And on the other end . Japan is running out of ideas for new anime and are producing crappier and crappier stuff. and the vicious cycle continues.
In a nutshell, what I foresee in the future.
Commercially Sold Anime around the globe will die due to fansubs.
Many Japanese Anime Companies that are small will Fold because domestic market cannot support it.
From then on , it will go into a downwards spiral until the domestic market can support it.But by then, Anime will be a spent force, no investors would want to invest towards a Anime. Quality will become crap.
Its not entirely Any 1 or few parties fault. You can blame most japanese companies for poorly paying their staff thats at the lower levels. Blame large corporations for vying for a piece of the profit.Licensing Companies thats trying to push anime that are subpar down at the masses.Fansubbers for fulfilling a role that should be the licensor’s role (spreading awareness of anime). People who download but do not buy original DVD/VHS/VCD and are merely in it for the free entertainment.
But for now, Enjoy this golden age of anime. For soon, There wont be any quality Anime left. And all of us will talk about animes long past.
Sorry if it sounds like rambling of a madman, but thats my 0.02 cents