How do series/anime earn money ?

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I get how movies does but i’m clueless when it comes to series/anime. It’s not like everyone buy Blu-ray or DvD these days, so where the money comes from?

In: Economics

5 Answers

Anonymous 0 Comments

This is true of *all* shows on all platforms: the network will license the show for broadcast, meaning they pay the studio that made the show (if it wasn’t a studio already owned by that network) for the right to broadcast or stream the show on their network. The network makes *their* money through selling time for advertising and through subscriptions.

So, for example, Studio Gainax makes *Gurren Lagann*. The licensing/distribution company Aniplex of America buys the rights to *Gurren Lagann* from Studio Gainax and holds the broadcast license for the United States (other companies or other Aniplex divisions hold the broadcast license in other countries or regions). The online streaming platform Crunchy Roll “rents” the license from Aniplex of America, which means they have legal permission to stream episodes of *Gurren Lagann* on their platform. Some company, say, Raycon or whoever, buys advertising time from Crunchy Roll, so that their ads will appear while you, the consumer, are watching the show. Also, because it’s a website, Crunchy Roll can sell ad space for the webpage around the video player and on the main page and every page in between. You, the consumer, can also pay for a subscription to Crunchy Roll so that you don’t see ads, and that money goes directly into Crunchy Roll’s pockets.

Other streaming platforms can also “rent” the license, like how Netflix *also* pays to be able to stream *Gurren Lagann*. Netflix doesn’t have a lot of ads, but there’s no free version so you have to pay for the subscription.

The license can also include distribution in other forms, like DVD/Bluray sales. It may be a separate license, though. Other licenses include merchandise like toys, official artwork, T-shirts, etc. This may *also* be included in some licenses or a separate merchandising license.

This is how pretty much all shows work – anime, network TV, the works. The only other thing that happens is how the studios pay to make the show in the first place. Networks generally *produce* the show, meaning they provide some or all of the up-front capital needed to, you know, pay the animators and actors and camera operators and director and such. Producers themselves often get loans or invite investors to contribute in return for a share of the profits. That network then owns the license and can broadcast the show or sell the license or “rent” the license to other networks.

So, in rough order: Network needs a show, so they get money from investors or from their own funds and hand it to producers. The producers manage the money and give it to a studio, with vague “we would like a show like *this* please.” Alternatively, someone has an idea and pitches their idea to a studio, which asks a producer for money to make the show; or they pitch it to a producer, or to a network. Or the studio pitches an idea to a network. Either way, the studio pockets some profit and the rest pays the employees and contractors of the studio that make the show. When the show is good, the network broadcasts the show and sells spots during the commercial breaks. Consumers want to watch the show so they pay for a subscription fee if there is one. After the initial broadcast, the network wants to have room for new shows, so they sell the license to someone else to broadcast it (this process is called *syndication*). The syndication networks sell their own ad spaces and/or subscription fees. The network also either sells merchandise or sells the license for someone else to make and sell merchandise.

Anonymous 0 Comments

Ads

TV channels have to pay licensing fees to air a show on TV. In turn when an anime show is played on TV the advertising space is sold for commercials. Part of that revenue is used to pay for the show.

Streaming networks like Netflix charge monthly subscription fees instead.

There’s also product placement. If you see a name branded thing in a TV show or movie you can almost guarantee that brand paid good money for that product to be there.

Like all shows anime makes money selling DVD/BluRays, ticket sales for theatres, merchandising (posters, costumes, toys, etc)

Anonymous 0 Comments

Advertisements, subscriptions (like Netflix, Hulu and Crunchy Roll) and merchandise sales. Those are the three main ways TV shows and anime earn money, but there’s also product placement (which falls under advertisement), general sponsorship deals, and the like

Anonymous 0 Comments

The rights to show them are bought by channels or content providers who get their money from subscription fees and/or ads.

Anonymous 0 Comments

Note that all the other answers for anime pertain to international distributers.

In Japan, however, anime doesn’t usually earn money. The point of anime is to advertise and sell more copies of the source material, usually a manga. As long as this happens, it’s considered successful. If an anime actually makes a profit, it’s long term and comes from merchandise sales. This profit is not for the studios who make the anime, they have already been paid by the production committee. Any money the anime eventually makes goes back to the production committee as a return on their investment.