New York Times: How Hulu and Netflix Look at Anime and Niche Content

FUNimation signs deal to stream 5 more simulcast titles on Hulu

The New York Times has an article in today's paper which gives some insight into how and why mainstream services such as Hulu and Netflix and cable channels look at anime, as anime such as Naruto: Shippuden appears on the most watched list alongside major TV shows such as Glee.

 

The article goes into how Hulu and Netflix take a strong interest in niche content because of its comparatively low price and good viewer numbers versus mainstream media content. For anime, Hulu pays the anime distributor a small portion of the advertising revenue and Netflix pays a small licensing fee in most cases, allowing them to easily build up a large library of content.

 

The article also explains the parallels between this strategy and what cable networks such as G4, IFC, and Spike did in the early days, giving a glimpse into the thinking that goes into Adult Swim's somewhat infamous love-hate (or hate-hate if you prefer) relationship with anime:

 

“We’re not interested in paying a lot of money for anime because that targeted audience has so many different ways to see it before it goes on our air,” said Mike Lazzo, senior vice president for programming and production at Adult Swim.

...

“Every once in a while we look and say we could gain a rating point here and there, but we’d rather be more interesting and edgy from a programming standpoint, and that means anime,” Mr. Lazzo said.

 

Lastly, the article reveals that FUNimation signed a deal with Hulu this month to stream 5 titles on Hulu within 48 hours of broadcast in Japan. FUNimation has not specifically announced all the titles in press releases yet, but based on the most recently added anime to Hulu, Guilty Crown, Last Exile ~Fam the Silver Wing~, Future Diary, and Maken-ki are probably four of them while the fifth title is probably another FUNico title, with the third Kadokawa series, C3, being the easy suspect.

 

The full article can be read on the New York Times Website or on page B1 of today's New York Edition.

 

Source: The New York Times via The Fandom Post

Image ©Nobuyuki Fukamoto / Takeshobou・VAP・4cast・NTV

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"but we’d rather be more interesting and edgy from a programming standpoint, and that means anime,” Mr. Lazzo said

I hardly call an almost never ending block of Family Guy, American Dad, King of the Hill "interesting and edgy"

I used to love Adult Swim. Unfortunately, not so much anymore. I Miss the good stuff.
And by good stuff, I'm not referring to anime. I do also miss seeing the likes of cowboy bebop, but I am mostly referring to the likes of Home Movies, Sealab 2021, Brak Show, etc.
they still show it, givin not on the channel but the website itself
Still... They play Bleach and Dararara. That counts for something I guess. Still.... NEW ROBOT CHICKEN!
Just not to me. I can watch Dararara anytime I want and I despise Bleach.
That is just the first 3 hours of AS mon-fri and with that time slot they have to go mainstream popularity if they hope to make money. Watch Saturday and Sunday's line up for the things they are talking about, but even then the shows don't really compare to the classics although that may be due to the fact I have gotten slightly better tastes since then.
I remember back in its early days Adult Swim ran a lot of anime. Every night, practically. I guess they attracted enough viewers to produce more of their own shows. Now they broadcast more of their own shows. They make more money off their homegrown product, and anime, which is usually the property of outside corporations, doesn't. They really built their audience through anime, though you would never know that looking at their line-up today.
I would agree, but they do have the Durarara dub on Saturday nights, so I have a hard time getting too mad at them at the moment. Apparently it's getting pretty decent viewership.
I always suspected that's why they had so much anime. Several of those FUNi titles look interesting, too.
I really do hope these online streaming services succeed as an alternative to piracy. But that being said, WHY THE HELL ARE THEY NOT AVAILABLE IN AUSTRALIA?!!! Once these services are available in my country, I'll stop watching anime online for free.
Do you know how any of this stuff works? Do you honestly believe that companies in the anime industry pick and choose what shows air in which country? You might be surprised, but they don't! They aren't given any options. The reason why certain shows don't air in certain countries is pretty obvious. They are banned by those countries!
ahahahahah oh wow.jpg the last sentence is gold
"Banned" is quite the misconception there. You were right in implying there's little choice in the matter at least. I don't know well either since businesses are too secretive about conduct around money, however the majority clearly lies around licensing. I'll use Sailor Moon as an example here. In Japan, TV Asahi holds the rights to air SM. No other TV station in Japan can air SM without paying a convincing amount of money, but TV Asahi probably won't accept since they're better off getting all the profit from airing the show.

However TV Asahi does not exist outside Japan. TV Asahi cannot show it where they do not exist. So a new party has to come into play. Naturally, a company will want all profit a show earns to go to themselves, so they'd prefer to have the show for themselves alone and no one else. So companies more or less fight to get to the rights to air the show themselves and flaunt money as to be convince the original party (a bid, I assume proposed contract terms also play a role). Most contracts to air a show are not permanent, so when that expires, either the current company must fight again to keep it, or another company can fight to take it from there. Seeing as that US TV stations are not in Australia, Australia's TV stations have to participate in a separate battle.

Sailor Moon has been in the US on at least USA Network, Cartoon Network, and NBC; in Canada it has been on YTV and Global; in the UK it has been on Fox Kids and ITV; in Australia it has been on ABC, Seven Network, Network 10, and Fox Kids.

Look at how many companies are fighting over the rights for it! And think of how many more nations there are to tend to. Furthermore this is only TV broadcasting rights I demonstrated. There's other types of companies that have partial rights to franchises as well such as dubbing companies and toy manufacturers. As a fictious example, lets say fox pays one BILLION dollars and are then told they have exclusive rights to the show. Then, merely because of it being a different medium, they also give rights to Funimation to stream it on the web for free. That is completely unfair to the first company here (hence completely avoided per lawsuit), thus rights overlap across mediums.

Also the owning company needs to be satisfied that it will be profitable enough to themselves. They're not going to hand over the rights for $100 if that company will go on to make $100,000 in a day. Likewise if a potential distributor cannot assume they'll profit well, they cannot be burdened with paying a high fee to get the rights if they are to continue to exist.

With all these companies fighting over money like this, it becomes impossible to toss the rights around everywhere. Therein however is a flaw in our economic model; resources to act on the idea are there, but money is the only limitation. It is right to be angry at companies and accuse them of greed (often the ones closer to the source), however their conduct is somewhat forced as to survive as a company.

However this info is only derived from logic. I too may have some misconceptions. But none of the companies want to explain it directly. I do wish someone like Funimation would explain in full in plain english as to calm the audience.
Read the whole article...typical as usual most anime fans are male and etc..... crap
probably means that women are more willing to watch shounen genre shows where as men aren't willing to watch shoujo
I can watch Shoujo, they tend to have more story less "AHHHHHHHHHHH here is my final attack!!!!!!!"
my basic rule is watch everything then decide. there at so many titles i would have never enjoyed (E.F, Clannad, Utawearlumono) if i didn't just say "why not" and start watching
Exactly this. This is why I am watching Honey & Clover on Netflix. And also why I watched The Girl who Leaped Through Time (Great Movie).
Honey and clover ended horribly.
Yes. the desired demographic of the tired, old-school marketing dimwits are 18 - 34 year old, males.

They never really look down the road to see who actually buys the stuff.

The most successful titles are ones that attract both genders.
Hmm, I'm impressed that their logic for pursuing anime is so simple. Indeed that logic is a win-win relationship, benefiting both the fans and the distribution company.

On a side note about Hulu, I recently noticed in Hulu's search results, they will show results from Crunchyroll and link to Crunchyroll. How kind! Certainly Hulu has demonstrated a positive mindset in benefiting the fans.
well there loss.
This is why the practice of online streaming will end, or at least cripple, the businesses of cable and satellite. While online streaming services reach out in an attempt to gain larger libraries, networks still adhere to the old ratings standard. Why would anyone pay to watch what someone else chooses to show rather than just choose what they want to watch?

In terms of anime, a genre that has been constantly ignored or even shunned by many networks, including Cartoon Network after the leadership change, online streaming is providing access while making a profit in a way that networks could have, but chose not to. SyFy, formerly Sci Fi, killed their anime lineup, Cartoon Network neutered theirs on Adult Swim, and G4 is only now deciding to play the occasional anime in between their endless marathons of Cheaters and COPS, but only the ones associated with Marvel Comics.

The quality of network television has dropped substantially, and not just due to a lack of anime. Television has become less about intelligent and thought provoking content and more about shock and controversy with a generous dose of stupidity and annoyance mixed in. Consider the fact that when I was a kid I watched Robotech, Thundercats, G.I. Joe, and Ninja Turtles, all of which actually had something called a storyline that progressed with each show, and in the case of Robotech was very deep and thought provoking. Cut to today and we have Sponge Bob and Adventure Time for the kids, with 30 Rock and Family Guy for the adults. Like them or not, these shows are neither thought provoking nor do they have concrete storylines. It's as if the networks believe that their audience is comprised of complete idiots and they are creating shows accordingly.

Is anime always intelligent and thought provoking? No, but there again is the beauty in online streaming services, as you can pick and choose what to watch instead of being subjected to the stupidity broadcast by network TV on a daily basis.
Good read. Nothing really new, but interesting none the less.
Anime is cheap for the rating its can provide, this should be obvious. Sindicated shows are also cheap ratings arguably much cheaper, theres a reason MASH, Simpsons, and Family Guy have been running sindicated for so long.

I've all but moved away from HULU, and netflix which I have a love/hate relationship with often doesn't feature subtitles on streamed anime (only dubbed). Between those things its still just far too convenient for me to pirate most anime that isn't on crunchyroll or a handful of other specialist sites.
Not entirely true. Honey & Clover is subbed as is Bleach. Possibly Naruto as well but I haven't checked that. Besides, voice acting has come a long way since the days of Akira. Most of the dubbed anime on Netflix isn't bad.
This article forgot to mention that those 5 titles are going to be only on hulu+, which sucks. I refuse to pay for hulu.
This. I would rather pay the money to Funico. I'll get HD as well as NO ADS.

I don't understand what those idiots at Hulu are thinking. They make you watch ads even when you pay for a subscription. Don't they pay any attention to the polls that indicate people would rather have an ad-free experience above all else when paying a subscription?
if you have a laptop (or tablet) and TV with HDMI, hook it up. No need for Hulu+.
Interesting NYT article. (Ooh, Hulu has Korean drama? *runs to check it out*)
Very interesting article! I'll agree that it didn't have much new information, but it was an interesting read nonetheless. ^^
I agree with everything Mad-Loner said. And as for Adult Swim and CN as a whole, the last good thing I saw on that channel was "Code Geass" and "Blood+". I have to give them credit for helping to get me into those shows, but even when I was watching those 2 just about everything else on the AS block was TOTAL CRAP! I could not stand the shows they produced in-house. "Venture Bros." was only moderately entertaining, and the rest were just....blech! And while the shows from their other programming blocks like "Cartoon Cartoon" might be good enough for an occasional chuckle, unlike anime they were not able to hold the attention of us older viewers (especially over 30). Sure I'd enjoy the occasional "Power Puff girls" ep or whatever, but the only show of theirs I really loved was "Megas XLR" and they cancelled that one.

My local cable company no longer even carries CN and nowadays I don't even have cable service anymore, but I honestly don't miss it. Everything I really want to watch is available online on places like Crunchy, and on the odd chance I do want to watch a "mainstream" American show I can watch it on Hulu, so I could really care less about the networks or cable companies.
Adult Swim was never good. Even when it was good. Even when it was playing Cowboy Bebop and Home Movies. You tuned in knowing every night might be the last night your eyes wouldn't be raped by undulating crap. Those iconic black screen inserts were a ticking countdown to eye rape.
I remember one time when they decided to draw mustaches on all the characters in animes. It was witch hunter robin and then I think bebop. I didn't know that they were the ones doing it until the second one, I thought that maybe it was just the anime because it was my first time watching it.

It just really turned me off to adult swim.
Ahahah! Eye rape! Yes! and actually TRYING to read them all! i would much rather have worthwile content and HEAD ON commercials to a million black screen comments.
The black insert commercial things were for people with attention spans. And Cowboy Bebop is a classic anime. Sorry but if you don't like anime then this is likely not the site for you.
if only there were an anime that would please both japanese and american audiences (excluding ghibli films).
Anime has been getting more mainstream and widespread with each passing year. A ton more kids from middle school to high school watch Anime now than they did than even 5 years ago. They make clubs and everything now.
im sorry, but i actually wanted to watch adult swim when there was back to back anime for half the time. now, i really see no point to watching it if all the shows they air i can watch elsewhere at an earlier time.
same here they use to have some really good stuff and that involved anime
Sorry... You can't blame companies for trying to make money by cutting corners and doing whats popular. That's what a company is made to do.
"but we’d rather be more interesting and edgy from a programming standpoint, and that means anime." I say it depends on what anime you show, it could backfire and then turn new viewers off before they even know what's out there.