Anime Mysteries: How Big Is The Market? Part 2 - Clues?

By Jonah Morgan

My previous article, 'How Big Is The Market?' from just a few days ago has attracted a firestorm of interest in the form of emails, questions and comments ranging an entire spectrum from curious fans, to professional. Fans expressed curiosity and in one case pointed us out some important hints to the answer dropped in the course of certain interviews. In the commercial arena I heard from those interested in entering the anime industry in some way to those formerly of industry status. The consensus throughout is this question of the size of the American anime market with regards to sales, profits and volume is indeed a profound and sensetive one which has definitively never been asked or answered in the public domain with consistency. There are reasons behind this apparently and here we will continue our journey into this darkest of anime mysteries with information ecrewed from sources who will, for the purpose of this article, remain anonymous.

The View From Inside

Several questions and open-ended issues were presented in the last article, one of the first email responses came in from a veteran of the industry for several years addressing a few point by point. The answers provided are strictly the opinion of our source and should only be taken as such (the personal opinions of one person) and not as undisputed fact, likewise both parts of this article should be treated as editorial material. Below is a brief intro followed by a comment to the query on why the numbers of the market are not mentioned:

"I got into anime as a fan, then worked in the industry and then left as a fan. I often have felt the urge to talk about the industry though I have nothing to do with it any more.
It's a wild industry. Small yet ever expanding, competitive yet mind numbingly dull at times. During the early years, like most folks there, we all learned to wear multiple hats which made us all very in tune with where we felt the industry was and where it was going to be.
I think you are dead on that companies don't wish to reveal the numbers of the biz. In fact I'd go as far as to say that they can be down right paranoid regarding the numbers. And its not because they aren't allowed to talk about the numbers (that may be a factor), but I think they choose not to reveal information.
"

As was mentioned in part 1, it would be hard to dispute the lucrative nature of the modern anime industry. Thinking back over what I have heard at anime con industry panels and read online or in magazines, the numbers on the size of the market are just not out there in print (in even a limited capacity) and it would seem that as BIG as it all is no one is talking about that aspect. We supposedly have more fans, more interest, and more media type organizations all watching the industry to a heightened degree today than ever before and while they are clearly looking at something, the size and material nature of it is not even being taken into account. Why? So assuming this could be possible why would one want to keep the enormous success story that anime in America is a non-issue? Continuing:

"I think we never measured success of the industry by fandom, sure I mean that's a nice public image and all but on the books we don't see fans you see distributors that will take 10,000 pieces and move it, a 100,000 pieces all the better (provided it didn't come back). So I think it's better to understand the underlining business of it. It's a business first, fandom second.
So what are the numbers? Why would you want to toot yer horn so loud that more competition arrives. Least that was the theory back then. In the early days paranoia over big competition getting wind of animation ran wild.
Course now with production being cheaper equipment wise, and the realm of animation going 2d/3d, or computer assisted cel work etc, the competition is coming outa the woodwork.
"

Our source mentioned a good example in that if you notice how the industry is geared, the hype on a range of titles can be just enormous leading up to and just before it hits market: "G is coming soon loaded with extras, F is just about to hit with collectors metal box". On the flip side take the promotion and try to recall how often you've heard how well a title is actually selling or performing on the market after release equated to actual numbers (ie: Units sold, revenue generated). Continuing:

"No one will give you numbers.
I think it's a strategy really, a position of fear and paranoia that helps refine yer approach to the industry and control it provided you have the will to step thru all the pluses and minuses of it.
"

So there it is. True? False? A percentage either way? It's unclear. According to our contributor, the overall size of the industry may only be disclosed when one of the larger players decides to advertise the fact.

The Tip Of The Iceberg?

To be fair to industry, I've queried a large portion of my industry contacts before writing via email. For the most part I just asked the simple questions "Does X company keep stats on the estimated size of the industry? Can you reveal the numbers? If so what are they?" For the majority of attempts I did not receive a reply but in one instance I did get an estimate of the yearly market size as it currently may stand. Granted if you asked a representative this type of question could they answer it and not be potentially violating a company policy? Good question, it's true that many companies, in contract maintain that upon signing one must not divulge any trade secrets or details of the inside company activities. Beyond this sometimes seperate NDA (non disclosure agreements) come into play. So realistically as much as some may want to scream the nitty gritty on the market from the hilltops, they couldn't and keep their job.

About the estimate that did come in, before that response, a reply was sent by reader "Z" who supplied a 1999 figure which may or may not corroborate the current estimate. Z offered the voice actor community may have an answer, being in close contact with production of American English dubs of shows. Indeed, according to Z, in an interview from 1999, a voice actor had remarked that the US anime market then stood about $120,000,000 US. From that estimate came in another email, this time from someone currently employed who mentioned the 2002 market size standing may approach $150,000,000 US. Of course as there is not a body of knowledge to compare this too, these figures may not be an accurate estimation.

To be able to reflect on substantive real-world market data the issue lies in the hands of the fans and consumers who support the market, the media who watch it and those in the companies themselves who deal with figures first hand and may be able to provide the real answers in time.

All Stories, Graphics And Material © Jonah Morgan - Anime News Service Unless Otherwise Cited

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