Here's Why Free Anime Can't Benefit Studios in the Long Run

The debate over anime and the best way to watch it has been around for years now. As technology has advanced, it has become increasingly easy getting access to anime from Japan, and many series are streamed simultaneously nowadays. Sites like Funimation and Crunchyroll have streamlined the way fans worldwide watch anime, but there are fans who still prefer to pirate their favorite shows. But in light of one site's explosive shutdown, a report has gone live that breaks down why watching anime for free isn't good in the long run.

The words come from CanpiaSnow, a video editor with OTAQUEST. They took to Twitter to comment on the recent shutdown of Kissanime, one of the most prevalent anime piracy sites in the world. It was there the fan dismissed recent reports that anime studios could bypass international licensers by making their content free-to-watch on Youtube. And when you look at the numbers, you will see the report is spot-on.

For those needing a bit of context, a report went live last month regarding the arrival of AnimeLog, a new Youtube channel. The page is co-managed by several major studios like Toei Animation, Kodansha, and more. The goal is to push free anime on the site with international subtitles to combat the continued piracy of anime. In the wake of Kissanime's shutdown, many fans have expressed hope that this Youtube will make paid subscriptions for other sites redundant, but the money doesn't add up.

If you look at fiscal reports from Toei Animation, for example, you will see why the free Youtube model isn't going to be sustainable. Overseas licenses make up the largest source of income for major studios by far. The money paid to these companies by Funimation, AnimeLab, and even Netflix are hugely important for the studio's fiscal wellbeing. And while Youtube ads would pay the studios, it would not be enough to float a fiscal report.

For instance, even top Youtube initiatives like Good Mythical Morning are estimated to have a $9.5 million net worth. In the most recent fiscal report for Toei Animation, a massive 49% of licensing revenue came from overseas scattered between Asia, Latin America, and more. It earned 27.359 million yen from overseas license agreements which was up year over year. In fact, the overseas profit is close to overcoming the domestic profit, so that shows how important licensing is to major studios.

Youtube may pay well, but licensing pays even better. This truth will make it difficult to ever float free anime longterm because studios cannot afford to lose the income licensing provides. Without those fees, many companies would find themselves floundering to produce anime in the same way they are now. And with animators in Japan being paid less than living wages, you can see why it is more important than ever to support officially licensed anime than ever.

Where do you land on the debate regarding anime piracy? Which sites are your go-to to watch shows? Let me know in the comments or hit me up on Twitter @MeganPetersCB to talk all things comics and anime!