July 19, 2007
AX Analysis: What About a Digital License?
Posted by Devin
Japan’s interest in cross-border licensing was pretty apparent from this years International Licensing Show last month in New York. According to LIMA Japan, at least 20 companies from Japan exhibited at the show in addition to Korean and Taiwanese pavilions that each housed a half a dozen organizations or more. No doubt, its now hot to license overseas.
But even with content licensing become much more common, the ‘hidden’ factor is content use and whether it can be used in a digital distribution. The issues related to digitization are not just related to weak government regulation but more than the way content is created and produced in Japan.
Right holders include talent as well as production companies and broadcasters, the search for permissions is frequently cumbersome or, in cases where rights holders have dropped out of the biz — or off the face of the earth — impossible.
Licensees have always had a tough time acquiring digital parts of licenses to use online. Sometime digital licensing for manga or anime for example “is not offered” in initial discussions. Digital distribution is often not a replacement license but an “add-on” costs to DVD or TV licenses. And knowing that, the US companies were quickly about to point out they are now “always asking” for digital rights. More than that, Japanese firms need to adapt licenses that are “multi-platform” or “advertising-based” like the a-la-Youtube model to successfully monetize in the US and European markets.
At the end of the day, Japanese licensing needs to change to meet digital demands. Per Discontent, we’re already seeing opinions change in Japan:
According to a Nikkei BP publication article, Japan’s Keidanren’s chairman Fujio Mitarai and Itochu chairman Uichiro Niwa has put forward a way to both allow for the full utilization of copyrighted content that may otherwise be ‘gathering dust’, and as enabler to fill the ever-expanding distribution channels with ‘much needed’ digital content.“[The government should establish new legislations that include a] more simplified, convenient procedure that could replace pre-authorization by each right owner” in a bid to promote the distribution of digital contents.”
A later article by VarietyAsiaOnline.com was misquoted in suggesting a government panel had formally recommended rule changes to ease TV to webcast licensing woes. Foreign pressure as well as the promise of wealth will only help to alleviate the “uphill battle vis-a-vis opposition from incumbent copyright holders who fear an erosion of their market power.”
Hat tip to PW Beat for the licensing article-
Filed To: Distribution / Over in Asia / Digital / Licensing
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July 13, 2007
Rebuild of Evangelion trailer available
Posted by Madeline
Rebuild of Evangelion is one of four films slated for release beginning this September by GAINAX, the studio behind the seminal and profitable series Neon Genesis Evangelion A viewer in Japan recorded the trailer while sitting in a movie theatre, then uploaded it to YouTube. The footage is grainy and the sound quality is poor, but savvy viewers will note the presence of more digital animation.
No word yet on North American distribution, leaving North American viewers to wonder if the films will be released consecutively, simultaneously, or simply in one large, expensive boxed set. Will there be VOD legal downloads when distribution is decided? What about theatre showings, as there were for the Cowboy Bebop, Fullmetal Alchemist, and Naruto franchises?
For more information, check out Eva creator Hideaki Anno’s statement on the subject.
Filed To: Over in Asia
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July 12, 2007
AX Analysis: The Changing Distribution of Anime
Posted by Devin
For the next week, we’ll be providing Anime-Expo (AX) post-conference analysis on the industry presentations we attended. Today is on Anime DVD sales:
One apparent issue is the dropping of DVDs sales starting last year. Over in Japan, anime DVD sales dropped to $826 mil, or down 2% over 2006. In the US market, the number of DVD anime releases has dropped to 767 titles in 2006, a 9% title decrease verses 2005. Anime DVD sales are still outpacing regular DVD sales by a few % points even if total DVD released decreased by 8.2%.
Because the audience anime companies serve is some of the most proficient online, there’s no doubt that anime more any other medium is shared on p2p networks. The danger is fans often don’t understand the rights and wrongs of IP. Take the quote from one 17 year old:
“I wouldn’t steal a car. I wouldn’t steal a DVD. But I might borrow a DVD from a friend. And what’s the Internet these days, but a big group of friends sharing stuff?” [And] ultimately, because downloading is just too easy…too attractive to resist. A click of a mouse and “it’s all at our disposal.”
Because of revenue declines, the anime market is changing the way they distribute in every channel. Debra J. Kennedy, Vice-President of Marketing and New Media, of FUNimation, during her “Future of Anime” keynote at AX, acknowledged the fight for retail shelf space is becoming more and more difficult. The retailers like anime because it supples them with higher margins, however their lack of shelf space and category management is a problem. Companies are also getting more promotion-minded by pushing catalogs and online contests. And its working:
Manga has had one of its biggest years, selling more than 750,000 units of Ghost in the Shell’s six volumes, Manga’s senior VP sales Ray Gagnon said. “It’s challenging for anime companies, because the price points are high,” So specialty chains such as Best Buy and Trans World rep prime retail outlets for Manga titles, Gagnon said.
Other strategies include pushing anime to the TV networks, well illustrated by Kokoro Media in earlier posts. Ms. Kennedy expressed FUNimation was able to introduce IFC to anime. To help spur retail hits, Bandai specifically focuses on leveraging the TV exposure of properties such as Cowboy Bebop and Gundam. “Now we and also the retailers need to be more discerning,” observed Bandai marketing manager Jerry Chu.
Ultimately, digital distribution and Internet sales, the long tail of media economics help anime and other nitch genres expand the anime market. iTunes, XBox, Direct2Drive, Vongo, Akimbo, and other legal ways to download via the Internet is the future of anime distribution. Ms. Kennedy also noted the market is working to develop business models with new ways of reaching customers. The development of co-productions and simultaneous releases and the need for investment into infrastructure such as VOD and cable are all keys to future market success.
Filed To: Distribution / Retail / Digital / Adv/Marketing / General
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