UlasanAnime.com – In a playful turn of events, the author was tagged in a blog chain by Zzeroparticle from his anime music blog. This chain involves answering five questions and then forwarding the tag to five other bloggers with their own set of questions. While most questions delve into personal preferences, one question about the survivability of Crunchyroll’s business model and its potential competitors sparked a more in-depth discussion.
The author acknowledges the game-like nature of this blog chain, where participation involves answering questions and then tagging others. While many of the questions are personal, the one concerning Crunchyroll’s business model and competitive landscape provided an opportunity for a more analytical response.
1. While you’re watching an anime, what makes the soundtrack/music so memorable you’d actively seek it out?
The author outlines three scenarios where anime music becomes memorable enough to actively seek out. The first is when a specific track stands out so much that they feel compelled to listen to it again, either in full or by itself. The second is through name recognition, such as when a composer like Yoko Kanno is credited, or when the anime is a sequel to a series with a soundtrack they previously enjoyed.
The third scenario, which the author admits is not strictly “while watching,” involves recommendations. While it’s rare to receive soundtrack recommendations during the actual viewing of an anime, it has happened. The author provides examples, like Jormungand’s “LOCO KOKO” track, and another unnamed track that stood out. The case of the Full Metal Alchemist: Brotherhood soundtrack, which a friend persistently recommended while the author was watching, exemplifies this third point.
2. What do you think about Crunchyroll’s business model’s survivability 5 years down the line and do you think Hulu or Youtube are capable of becoming a stronger competitor?
This question prompts a comparative analysis of Crunchyroll and Viki, with a focus on their respective business models and market positions.
Crunchyroll, as far as the author understands, operates on a break-even model, generating revenue from subscriptions, advertising, and merchandise. Their expenses include licensing fees (which cover the cost of producing subtitles), marketing, and operational costs for maintaining their services. Licensing agreements often involve minimum guarantees and revenue splits based on viewership. The author speculates that bandwidth costs are likely tiered, making playback volume less of a direct cost factor.
The author’s conversation with a Viki marketing representative revealed insights into the competitive landscape. Both Crunchyroll and Viki leverage their agility in adapting to market trends and their relationships with content owners. Viki, for instance, has been instrumental in making certain titles, like those from Tezuka Productions, available on platforms like Hulu, something Hulu itself might not prioritize. This highlights Viki’s ability to access niche content.
Crunchyroll caters to a different demographic, primarily anime fans, and has focused on providing high-quality, speedy subtitling, mirroring the efforts of traditional fansubbers. Viki, on the other hand, focuses on a broader range of genres, including K-dramas and telenovelas, targeting audiences interested in content that might not be readily available elsewhere. Viki’s model taps into the desire for accessible international content, a market often overlooked by larger media corporations. The author notes that Viki provides the infrastructure and distribution channels that enable fans of these genres to access content regardless of their geographical location.
The author sees the two companies as complementary. Crunchyroll’s strength lies in content delivery, while Viki excels at connecting with end-users. From a financial perspective, Crunchyroll’s survival seems plausible given its emergence during a period of market adjustment. While increased licensing costs and slower subscriber growth are potential risks, the author believes the market for anime streaming is not large enough to support many major players. Crunchyroll benefits from the growing acceptance of new media consumption models, and its diverse library is expected to sustain it for the next few years. The author anticipates Viki might experience more significant growth or decline due to its different market approach.
The author concedes that the long-term outlook for startups like Crunchyroll is inherently uncertain, but acknowledges their success in capturing a specific market segment and competing with piracy. The five-year plan for Crunchyroll remains a valid question, especially in the dynamic streaming landscape.
3. What would it take for you to contribute to an anime that is aiming to get crowdfunded through a site like Kickstarter?
The author reflects on the concept of crowdfunding for anime, referencing a podcast where localization projects were discussed. While the question is specifically about contributing to anime production, the author also considers the broader context of crowdfunding for anime-related projects.
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The author’s personal decision to contribute to a Kickstarter project would depend on the specifics of the project when it arises. However, they note that crowdfunding for anime adaptations of popular properties can be successful due to the existing fan base. The cost of producing a typical 1-cour TV anime is substantial, and crowdfunding could potentially cover such expenses, including marketing.
The author takes Kickstarter projects seriously and vets them carefully, with the exception of novelty items like smartphone accessories. For an original anime project, the author would need to see evidence of sufficient financing to ensure the project’s execution. The author believes that faking such financial backing would be difficult.
For smaller projects like indie anime shorts, which are often produced with minimal budgets, the author is less likely to contribute, as they are more challenging to vet and often made with readily available resources.
4. Which anisong artists who’ve debuted in the past 3 years do you predict will still be popular 5 years from now?
The author considers the timeframe and notes that some artists like Sphere, who debuted over three years ago, would have been a strong contender if the criteria were different. The author generally believes that well-produced idol groups have a high chance of sustained popularity. Momoiro Clover Z is highlighted as a prime example, with their engaging and often humorous approach to music and tie-ins.
The author expresses a particular fondness for Momoiro Clover Z’s unpretentious attitude and entertaining music, stating that the members’ appearances are secondary to the overall appeal of the group. Similarly, StylipS and ClariS are mentioned as other idol groups with potential for long-term popularity.
5. What is the biggest barrier that prevents anime from being more popular in the West?
The author addresses this question from two perspectives. Firstly, they acknowledge that anime often tells Japanese stories to a Japanese audience, reflecting cultural nuances that may not translate directly to Western audiences. This inherent cultural difference, the author suggests, will always be a factor in anime’s appeal, making it attractive to some while limiting its mainstream popularity.
Secondly, the author considers specific content elements that might hinder broader appeal in the West, such as violence, sexual content, ethnocentrism, and adult themes. However, they argue that these factors are not the primary barriers, as Western audiences are exposed to similar content through television. The author posits that the quality of storytelling in many late-night TV anime might be a more significant deterrent. Ultimately, the author believes that good content will find its audience, and any lack of a widespread audience simply indicates market opportunities.
My Questions (and the people I’m tagging)
The author is tagging the following individuals, adhering to a personal policy against perpetuating chain games but inviting them to participate: Momotato, Jasc, Hayama, Jeff Lawson, and Zepy. They also welcome anyone else to answer these questions on their own blogs.
1. How do you think Tari Tari has improved over True Tears? Or not?
2. Whose blogs do you read now?
3. Played any cool board games/tabletop games lately?
4. How much do you think a set of used (mint condition) Love Hina R2 DVDs go for these days?
5. Are you buying a Vita? Why or why not?
My Answers to my own questions
1. How do you think Tari Tari has improved over True Tears? Or not?
The author finds Tari Tari to be visually superior to True Tears. However, they hold a slight preference for True Tears, citing its innovative approach to the “romance with a crazy chick” trope and its superior background art. Tari Tari’s strength, according to the author, lies in its better integration of the “angry adult sharing past trauma with the present” narrative, a plot device that felt underdeveloped in True Tears.
2. Whose blogs do you read now?
The author estimates they follow between 300-400 sites via Google Reader, acknowledging that a significant portion may be inactive. They mention discovering several blogs from an anime blog tournament and also follow a few seiyuu blogs that are worth subscribing to.
3. Played any cool board games/tabletop games lately?
The author recommends “Innovation” as a neat board game, and for those seeking something less complex, “Quarriors.”
4. How much do you think a set of used (mint condition) Love Hina R2 LE DVDs go for these days?
The author estimates the price at $5.
5. Are you buying a Vita?
The author anticipates purchasing a Vita eventually. While “Miku f” is a tempting game, it hasn’t yet convinced them to buy the console. They regret not opting for a Sony laptop to take advantage of a free Vita deal. The author sees the Vita’s advantage in its ability to play games from different regions, unlike the 3DS, and the potential to download Japanese PSP games, even if at an additional cost.
