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Ohayocon
State of the Industry
2004
When U.S. anime industry leaders met with fans at Ohayocon, they chatted about the growth of their business, the rise in the number of fans and the expanding number of anime genres that are being released in English. From left to right they're Keith Burgess of Manga Entertainment, Lance Heiskell of Funimation, and Matt Greenfield and David Williams of ADV Films. The group also had a warning about a rising problem, a trend among anime fans which they said was damaging the business -- fansubs distributed over broadband Internet connections. The talk about the problem grew out of comments from the industry group that the North American and European audiences for anime were larger than the Japanese and Asian markets. They mentioned that best-selling anime titles in Japan move fewer copies than in the U.S. and Europe, and that U.S. companies are making larger investments in anime production.
But Greenfield and Williams emphasized that the wave of anime fansubs which can be downloaded is leading to a growing problem of piracy in Asia. Since there are no limits on who can download the fansubs, and because the fansubs are of near-broadcast quality, the fansubs are being downloaded by bootleggers and sold at cheap prices in Asia, said the ADV representatives. "They (fansubbers) would put it on  the Internet and three weeks later, it would be on sale in Hong Kong as a bootleg." Greenfield said. "In parts of Asia, there is no market for anime because fansubs have killed it. When you start giving it away for free to anyone who wants, it you're stealing and you're killing the industry."
The ethical weakness of fansubbing always has been the possibility of having those recordings bootlegged, and there's a long history of having fansubs copied and sold on VHS tapes. But now that fansubs can look nearly as good as the originals, with less of the reproduction losses caused by using home video machines, and since it's easier to duplicate the shows onto optical discs, the result is lower sales of legitimate copies of the shows. Williams said ADV had an example; early episodes of the Nuku-Nuku series they handled that had been fansubbed had lower sales than later episodes that had not been fansubbed, while earlier episodes of other series had higher sales than later episodes. And while fansubs once got obscure anime titles exposure outside of Japan, Greenfield flatly said "There's really no purpose for fansubbing anymore - if it's being made in Japan, it's going to come over here."