Kristopher comments

Posted in: Japan's anime industry in crisis even as its popularity soars See in context

Some people are hinting at it, but the real problem is structural. In the US animation industry, the studios own the copyright of the works created and are the direct beneficiaries of any profits derived from the work with the caveat that a lot of the studios do end up subcontracting production to production services companies as works-for-hire, especially in TV. But typically, if Disney Animation or Warner Brothers Animation produces a film, they own the IP and make money directly from box office revenue and other downstream ancillary revenue sources. From what I understand of the Japanese Anime industry, this is not often the case. A lot of studios only receive revenue as a production fee for work-for-hire work while the profits derived from the IP and product created flow to the financing entities that comprise the Production Committee. This isn't always the case as some larger studios are able to bring financing themselves and have a seat on the Production Committee. That said, work-for-hire tends to be a race to the bottom in any industry, and that's especially true here. Add to that the fact that studios must be able to commit financing for the properties they're working on to really benefit from the majority of financial success a show or film has and you have a recipe for studio churn as companies fold and go under.

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