Here’s why Free Anime Studios can not profit in the long run


The debate over anime and the best way to watch it has been going on for years. As technology has advanced, it has become increasingly easier to access anime from Japan, and many series are being streamed simultaneously today. Sites like Funimation and Crunchyroll have streamed the way fans worldwide watch anime, but there are fans who still prefer to pirate their favorite shows. But in light of the explosive shutdown of one site, a report has gone live that breaks why watching anime for free is not good in the long run.

The words come from CanpiaSnow, a video editor with OTAQUEST. They took to Twitter to comment on the recent shutdown of Kissanime, one of the most prevalent sites for anime piracy in the world. It was there that the recent reports revealed that anime studios could let international licensors through by watching their content for free on Youtube. And if you look at the numbers, you will see that the report is spot-on.

For those who need a little context, a report went live last month about the arrival of AnimeLog, a new Youtube channel. The site is co-managed by several major studios such as Toei Animation, Kodansha, and more. The goal is to print free anime on the site with international subtitles to combat the ongoing piracy of anime. After the release of Kissanime, many fans have expressed the hope that this Youtube will create paid subscriptions for other sites, but the money does not add up.

My Hero Academia Season 4 Izuku Midoriya Deku
(Photo: TOHO Animation)

For example, if you look at Toei Animation’s fiscal reports, you’ll see why the free Youtube model is not sustainable. Free licenses are by far the largest source of income for large studios. The money these companies have paid for through Funimation, AnimeLab, and even Netflix are very important to the fiscal well-being of the studio. And although Youtube ads would pay the studios, it would not be enough to drive a fiscal report.

For example, even top Youtube initiatives like Good Mythical Morning are estimated to have a net worth of $ 9.5 million. In the latest recent fiscal report for Toei Animation, a massive 49% of licensing came from overseas distribution between Asia, Latin America, and more. It earned 27,359 million yen from overseas licensing agreements that had gone up year over year. In fact, the foreign profit is close to overcoming the domestic profit, so it shows how important licensing is for big studios.

Youtube can pay well, but licensing pays even better. This truth will make it difficult to ever run a free anime because studios can not afford to lose the revenue stream. Without those fees, many companies would flutter themselves to produce anime in the same way as now. And with animators in Japan being paid less than living expenses, you can see why it’s more important than ever to officially support licensed anime than ever.

Where do you land on the anime piracy debate? What pages are you looking at to see shows? Let me know in the comments or follow me on Twitter @MeganPetersCB to chat all things comics and anime!

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