AMBot | 10/22/2009 | Reading Time: 3 Min.
The oldest German anime label OVA Films has announced that it will file a so-called "planned insolvency."
The following statement can be read in the OVA Films forum:
"As is generally known, the anime market is in a dire state. The main culprits are the dramatically increased illegal downloads and, consequently, the equally dramatic decline in DVD sales. These have shrunk by over 65% in the last two years (not just at OVA Films)! Despite all countermeasures, OVA Films is unfortunately forced to facilitate restructuring measures through a planned insolvency. This means business operations will continue—but it also means further delays and setbacks can and will occur. OVA Films thanks you in advance for your understanding!"
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A brief comment from us. Of course, all of this is correct, though perhaps a bit oversimplified—the blame certainly doesn’t lie solely or even primarily with illegal downloads. The DVD medium and the sales model around it simply aren’t feasible for today’s generation. The integration of media content on the internet has effectively replaced CDs first and then DVDs (easier, cheaper, younger target audience). But since these online offerings are increasingly treated as a "service" (especially TV elements) rather than a "product," the old sales models are becoming obsolete. People point to illegal downloads but overlook the fact that every major US broadcaster now offers its entire TV programming as a free internet service multiple times over. Alternatively, there’s also the bundling of magazines with DVDs as an add-on at almost no extra cost. Profit margins are thus incomparable to earlier times. Of course, this can’t be equated with illegal product ripping, but that certainly doesn’t account for the missing 65% market share.
What’s clear is that the trend is unmistakable across all traditional formats (see IVW). In the print sector, especially among the younger generation, things will soon move in this direction (PC monitor vs. book). Currently, we’d estimate a decline of around -20% per year.
The following statement can be read in the OVA Films forum:
"As is generally known, the anime market is in a dire state. The main culprits are the dramatically increased illegal downloads and, consequently, the equally dramatic decline in DVD sales. These have shrunk by over 65% in the last two years (not just at OVA Films)! Despite all countermeasures, OVA Films is unfortunately forced to facilitate restructuring measures through a planned insolvency. This means business operations will continue—but it also means further delays and setbacks can and will occur. OVA Films thanks you in advance for your understanding!"
----
A brief comment from us. Of course, all of this is correct, though perhaps a bit oversimplified—the blame certainly doesn’t lie solely or even primarily with illegal downloads. The DVD medium and the sales model around it simply aren’t feasible for today’s generation. The integration of media content on the internet has effectively replaced CDs first and then DVDs (easier, cheaper, younger target audience). But since these online offerings are increasingly treated as a "service" (especially TV elements) rather than a "product," the old sales models are becoming obsolete. People point to illegal downloads but overlook the fact that every major US broadcaster now offers its entire TV programming as a free internet service multiple times over. Alternatively, there’s also the bundling of magazines with DVDs as an add-on at almost no extra cost. Profit margins are thus incomparable to earlier times. Of course, this can’t be equated with illegal product ripping, but that certainly doesn’t account for the missing 65% market share.
What’s clear is that the trend is unmistakable across all traditional formats (see IVW). In the print sector, especially among the younger generation, things will soon move in this direction (PC monitor vs. book). Currently, we’d estimate a decline of around -20% per year.
This article was originally published in German. It was translated with technical support and editorially reviewed before publication.
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