UlasanAnime.com – The concept of content arbitrage, where content is acquired in one market and sold for a profit in another, is a key strategy for platforms like Viki. This model, akin to the “buy low, sell high” principle seen in games like Tradewars or the anime Spice & Wolf, leverages geographical and cultural differences in content value.
Essentially, content that holds significant value in one region, such as K-dramas or telenovelas appealing to middle-aged women in Korea or China, might have little to no commercial appeal for broadcasters in other parts of the world, like South Africa. The internet and a globalized market have facilitated this arbitrage, with traders or, in Viki’s case, fansubbers, acting as intermediaries.
Viki provides a framework not only for content delivery but also for fansubbers to contribute, making the process smoother for everyone involved. While some might view this as exploiting free labor, it allows content owners to generate licensing revenue from their creations, which they may not have originally intended to distribute globally. This essentially turns previously undervalued content into a source of supplementary income.
Crunchyroll operates on a similar principle, though the North American anime market presents unique challenges. Foreign investment has become increasingly crucial for anime production since the early 2000s. While anime production costs are significantly lower than prime-time TV dramas, even modest revenue from overseas markets can be substantial for production committees. This strategy is particularly effective in larger international markets like France, Germany, the UK, Australia, North America, Korea, Hong Kong, Taiwan, China, and Singapore, as revenue from smaller markets like Zimbabwe or Nepal would be negligible.
The feasibility of tapping into these larger overseas markets is amplified by modern technology, enabling businesses to operate efficiently and profitably on a global scale. Crunchyroll’s efforts to expand internationally are evident in their practice of listing the countries where each new stream is available. While shows might not be widely available in places like Iceland or Turkey, there’s a greater chance of availability in regions like South Africa, with potential for localized language efforts and specific offerings for markets like Latin America.
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This discussion of content arbitrage and international streaming leads to the recent news about a new overseas anime streaming venture. Japanese financial newspaper Nikkei reported that Asatsu-DK (ADK) is launching an initiative to stream anime titles overseas starting in April. This venture involves significant investment from six major anime companies in ADK’s subsidiary, which will be responsible for the streaming service.
The Japanese financial newspaper Nikkei is reporting on Wednesday that Asatsu-DK (ADK) will begin streaming anime titles overseas in April. Six major anime companies are investing in ADK’s subsidiary that is handling the streaming. The venture will translate and host popular works from over 500 titles, and it plans to recoup costs through fees and advertising.
ADK issued third-party stocks worth 340 million yen (US$3.69 million) in its 100%-financed subsidiary Daisuki. The anime companies Toei Animation, Aniplex, Sunrise, TMS Entertainment, and Nihon Ad Systems (NAS), along with Dentsu, are investing in the subsidiary. ADK plans to retain a 26.3% stake in Daisuki.
Nikkei notes that Toei’s One Piece anime and Sunrise’s Gundam anime have garnered many fans overseas. Daisuki’s site will present new titles nearly simultaneously with their Japanese broadcasts. The venture will also stream live programs to anime fans in English. [Links removed.]
The announcement also raises questions about the mention of “live programs.” It’s intriguing to consider whether this might include anime-based TV shows hosted by voice actors, which could be a significant draw for fans.
Upon further reflection, the establishment of Daisuki as a wholly-owned subsidiary of a Japanese startup warrants careful consideration. While $3.69 million USD in startup capital is comparable to what Crunchyroll initially had, the history of Japanese tech startups in the global market, particularly after the failure of Nico US, leads to a degree of skepticism. The fact that it’s a subsidiary of a media company, with TV Tokyo holding a minority stake, raises concerns about potential limitations and the influence of established corporate structures.
There are valid reasons to doubt its execution, not because the core idea is flawed, but due to the potential for bureaucratic constraints and the adherence to traditional business practices that have hindered similar ventures. The Japanese business environment can be more challenging for new companies compared to other developed nations. However, on a positive note, these companies are actively seeking to innovate and compete, recognizing the necessity of adapting to the current landscape.
This situation is unlikely to significantly impact Crunchyroll. If Daisuki succeeds, it will benefit both licensors and consumers by increasing competition and expanding access to anime. If it fails, the status quo will remain, with minimal disruption.
A side note regarding Viki’s initial foray into anime: their focus on older, classic anime like Tezuka Pro works and “The Rose of Versailles” can be attributed to several factors. These older titles often have fewer complex licensing restrictions compared to new projects. Furthermore, for content that may not be a primary revenue driver, the focus shifts to expanding market reach, especially in regions with limited exposure to such anime. Viki and the North American anime market have established a track record, which likely facilitated these initial licensing agreements.
If Daisuki were to offer niche or less mainstream titles, such as “Tokyo Encounter,” it might attract a dedicated following and be a compelling reason for early adoption of their service.
And finally, a catchy song has been stuck in my head, adding a lighthearted touch to these business and industry discussions.
