IPO of Chinese anime streaming service reveal license fee cost

Documentations submitted by Chinese anime streaming platform for its IPO application earlier today reveals critical financial information, including its revenue and cost structure.
In year 2017, the gross revenue for the platform is 2.47B CNY, and lost of the year is 183M CNY. It is an improvement over the previous year where the revenue was 523M CNY while the lost is 911M CNY.
It was previously rumored that the reason behind the huge boost in revenue last year was because the platform have successfully obtained Fate GO's license and successfully capitalize from it. Indeed, the document stated that 83% of their revenue come from their gane business, and 72% of those revenue come from a single one. In other words, FGO have supported more than 60% of the platform's revenue. And then additional 7% of the platform revenue come from live streaming with only 6% come from advertisement which could be directly related to the business of streaming of anime but also other videos in the platform.
On the other hand, for the cost side of the platform, out of all cost of revenues, it is said that they have spent 926M CNY or 48% of their total cost in revenue sharing, including payment to UGC creators as well as fee charged by payment gateway and app store. Additional 24.4% are for server and bandwidth, and then just 13.6%, or 262M CNY, are for purchasing licensed content from rightholders.
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TLDR: They spend an average of 1 billion yen per quarter in buying anime and other content. Consider they license dozens of shows every season, on average each of those shows would get only like 30-50 Million Yen. Surely it would help with production and cost recovery, but in no way would it be able to "save" the anime industry or be able to "compensate" or "make up for" the lack of BD sales for some shows

Other urls found in this thread:

sec.gov/Archives/edgar/data/1723690/000104746918001244/a2234546zf-1.htm
animenewsnetwork.com/answerman/2018-02-21/.128068
bangumi.bilibili.com/anime/3461
twitter.com/NSFWRedditGif

Ok.

Next.

I wonder how that particular VEG fan feels.

You should have start with tldr
Anyway, thanks

Ok.

Thanks, quite a pity Japanese anime license holders won't jack up prices for their licenses.

That's true if only bilibili does it but if 5 other chink streaming sites do it that adds up.

Huh. But is that really sustainable? Seems like it'd be easy to overspend or make a bad call on licensing.

Thank you for this. Is there an article you could refer me to?

sec.gov/Archives/edgar/data/1723690/000104746918001244/a2234546zf-1.htm

Since 72% of their gross revenue comes from a single source which isn't anime, expensive video licenses aren't the risk they face.

Cool! Interesting that they're going public on the NYSE.

With 60% of their incomes come from Fate GO and then another 10% come from Azur Lane in 2017, it effectively mean most content on their site are just there to serve as a gateway to attract people join the site and play their games. If FGO decline in popularity and they can't find a nearly as popular replacement game to license then they would be deeply troubled. See the previous year's result, they lost more money than their total revenue that year

Does streaming actually help the industry? What about subscribing to CR or Netflix?

holy crap imagine having to review these documents

CR actually funds shows by being on the production committees. I'm sure Netflix has also funded some anime that way but I can't be assed to remember them.

Not a lot, just buy the BDs, Crunchyroll has only managed to make 10m dollars for the industry, Bilibili makes that in 6 months

Netflix is a yes.
CR? Fucking hell no.

>I'm sure Netflix has also funded some anime that way but I can't be assed to remember them.
LWA. They've also established a co-production alliance with Bones and IG.

Let me get this straight

IT WAS ALL FATE GO?

Freemium is an incredible racket.

A dollar to Netflix is a dollar for degeneracy. A dollar to CR is a dollar for comfiness like Yuru Camp.

CR does. Support CR today my fellow 4channer.

Support Horrible Subs my fellow user.

$100 million, you mean.

Tbf, an anime season costs ~250M yen. So 50M yen is a fifth of costs, which is somewhat large? I'm guessing it would help shows to recoup costs and end the cycle of most shows losing money and a few massive hits keeping studios afloat.

>most shows lose money
>show flopping having any bearing on keeping studios afloat

Less than bilibili at least. Roughly 23M yen for an average 1-cour anime.

Wait the chinese get a hold of fgo game? Might as not playing it then!

Oh, sorry. Meant 2.3 million.

Subscribe to KissAnime Plus for only ₽10 per month.

just move to japan and watch it in tv and buy merch

So, to get a billion yuan in revenues you only need to exploit a stupid market, in this case fatefags, is this correct?

>They spend an average of 1 billion yen per quarter in buying anime and other content
How did you come to this conclusion?

NOOOOOOOOOOOOO DELETE THIS MUH STREAM BUCKS MUH KYOANI SHOP THEY ALWAYS FIND A WAAAAAAAAAAY

262M CNY converted to JPY and then divided by four

I always assumed that the big chunk from Chinese money comes from merchandisng and not the actual licences.

Oh shut up about shops already, it's not just them who have shops.

You are missing ad revenue, that was the agreement bilibili had to make with the producers to take part in bid wars for licenses.

Domestic Chinese companies rarely make their own merchandise. Whenever Chinese people want to buy merchandise, they usually just go to Japanese sites and buy/import them using methods describes in buyfag threads. As such they are sold within Japanese point of sales and won't count as foreign market in corporate financial reports

What do you think revenue sharing means?

Ad revenue is only 6.5% of their total revenue. And that is for their entire site which also have lots of UGC.

>Domestic Chinese companies rarely make their own merchandise

These people barely know how to innovate things so they just copy. Look at all those knockoff apple phones.

It's not like western companies make their own merchandise for anime either

Not him, but most of these are online shops. KyoAni, on the other hand has both an online shop, and a real shop you can visit in person.

Kyoanus doing damage control never cease to amuse me.

And crunchyroll boasts about its 100 millions in 10 years

Forget about paying for streaming in hopes of "supporting the industry". Very small portion of that actually goes to the creators. And never mind buying BD's, because lets face it, most people can't afford to buy many of them.
Remember what these anime were made for. They were meant to be advertisement for LN/VN/manga. Buy those instead. The publishers see a boost in sales, they invest more money into anime. But what if there is no licensed translation and you can't read moon? Well then there isn't much you can do so just keep on "pirating" anime.

1) 1 chinese yuan is 0.16 U.S dollars
2) Crunchyroll doesn't have games like bili bili

>but in no way would it be able to "save" the anime industry
Funny because the anime industry has been growing and growing and growing and revenue from international streaming has increased as well. There is no saving something that doesn't need something.

>with only 6% come from advertisement which could be directly related to the business of streaming of anime but also other videos in the platform.
This kills the VEGfag.
And more accurately, the "chinesebucks" kind.

>7% of the platform revenue come from live streaming
Hahahaha. China saving anime, they said.

You shouldn't buy things like merchandise or a subscription service for the purpose of supporting the anime industry. It is healthy and growing.
You should forget the idea that your BDs or nendos would support the lowly animators at the bottom of the entire production process, because those get paid by the studios, and the studios only get what they negotiate out of all the sponsors.
Buy the shit that you want because it has personal value to you, not because you think that it would actually help anyone. Unless you actually do care about the Good Smile Company or videogram makers.
If you're one of the bleeding hearts from reddit and Sup Forums who cares about those poor starving inbetweeners, send them your money directly.

This "livestreaming" refer to Twitch-styled live streaming by gamers and girls. Because they put no ads between videos, the only ad revenue are ads on webpages, and that is what that 6% was being referred to.

Not really. Netflix and CR toss money at a few production committees here and there. Production committees for each anime are constructed separately, but with so many foreign capital influx to Japanese anime production market in recent years including CR, Netflix, and the mass of Chinese capitals, it’s been reported that they are having a hard time to even maintain a simple majority of Japanese capital in some production committee. Overall, they're making more shows just to have a place for these foreign capitals to invest in without letting them take over and directly control some of the production committee. In other words, they don't make nearly enough money to interfere with the industry on a grand scale, nor would they be willing to spend that much in the first place.

Yes.
>animenewsnetwork.com/answerman/2018-02-21/.128068

>Crunchyroll's recent announcement of having paid out over US$100 Million in royalties and license fees to anime producers was big news, and certainly something to crow about.

Chink shill on suicide watch
You could tell he's a massive retard since he also claimed Death March and Ramen are more popular than PTE in Japan because that one irrelevant poll

You're just proving the opposite.

Learn to convert currency.

>Buy the shit that you want because it has personal value to you, not because you think that it would actually help anyone
This.

TL;DR -- VEG fags BTFO.

Explain.

100m in a decade. Actual literal chump change compared to the amount of money that circulates in the industry every year. Barely even funds eight one cour series.

CR is practically inconsequential. The only thing that they've done for the anime industry lately is give us URAHARA and everyone knows how that turned out.

100% of that goes to publishers, not production entities.
If you wanted to actually support anime studios, you would go japan and do unpaid service work.

As compared to what? A typical one-cour show costs $3-4M. $100M is a significant contribution.

Fuck you.
I liked Urahara. ;_;

Is this ironic shitposting?

Why would the Chinese even want to own Japanese merchandise, when they can simply make their own knock offs?
Heck, most of the garbage produced in Japan is made in China in the first place, and then shipped to Japan.

Because they don't want to buy something like this

I thought the Chinese just shot each other with tanks

There's plenty of weebs on the Chinese web that buy tons of merch, CDs, manga, Blu-rays, etc.
>Why wouldn't they make their own knockoffs?
If you ever went to China, you would know that rich Chinese people want the real thing because they want guaranteed quality and will gladly pay for foreign imports.

>Netflix gets into anime business
>OMG leftist SJW get out of my animes reeee
>Literally Communist Party-controlled """corporation""" gets into anime business
>*cricket sounds*

KyoAni has a physical store. If you're a fan of kyoani, you'd want to take a trip to the store and visit all the places that appear in their shows. The pilgrimage in itself is amazing experience.

But Urahara is a great commentary about how the creative industry actually works. Which is how you have to produce pandering mass-produced garbage most of the time.

>100m in a decade
In 5 years. Crunchy were pirate niggers 10 years ago, newfag-kun. They only became serious business after they got bought out and received big corp backing to pay for all the licensing.

>I have the reading comprehension of a chimp

>I am a chimp

Finally we have numbers

Can we have a proper stalker thread now or would they be deleted again?

There's literally no value to Stalker besides shitposting

>Consider they license dozens of shows every season, on average each of those shows would get only like 30-50 Million Yen. Surely it would help with production and cost recovery, but in no way would it be able to "save" the anime industry or be able to "compensate" or "make up for" the lack of BD sales for some shows
Leap in logic. There is still no data on the pay-to-view model since it's very recent.
Lumping the profitability of popular shows with the average trash and then saying these big shows don't make a buck is also bullshit.

Let's take a close look at the show these logical missteps are probably aimed at, Violet Evergarden.
First of all, the pay-to-view model (10 CNY/view - $1.6 ) is not looking successful in general. This model also seems to present risks that most producers do not consider worth taking, as most shows chose to remain entirely free to view since this new model was introduced.
Violet Evergarden is the only show on the entire website that is consistently making more than 6.34M CNY ($1M) per new episode. As of this post, episode 8 has 558.000 paid views - 5.5M CNY ($0.88M) in revenue.
We do not know how much the servers cost and how much of this new model goes to the producers of the show - in this case, Kyoto Animation - but we do know bilibli can pay around $1M for popular shows. Assuming costs, this means that 2 or 3 episodes of Violet Evergarden make enough money to pay for the licensing of a big league show like Overlord if that's something the website wants to do.
Taking into consideration that previous episodes had even more paid views and that it still has 5 episodes to go, Violet Evergarden might as well make over 95M CNY ($15M) throughout the season.

tl;dr bilibli chokes to make money from streaming but VEG is not such a case, you can put down the pitchfork now

>TLDR: They spend an average of 1 billion yen per quarter
Wrong.

They're getting deleted? Bless the mods, for once.

Wasn't Re:Zero fully locked behind paywall?

The last 1 yesterday did. I don't think another one rose up yet

It is currently fully pay-to-view but I do not know if it was like that when it was airing.

>Can we have a proper stalker thread now
No such thing ever existed since at least 3 years

VEG being the only successful one is pay-per-view sounds cool until you realize that there's barely any title there that are not free.

If there's really profit from paid stream in bilibili, then there's no need for mainstream anime such as SAO and Attack on Titan to be free. If it is on the site.

Based chinese yuans being worth more than a japanese yen.
Just like the people of China being worth more than a Japanese.

Right. Like I said, the pay-to-view model looks grim right now, VEG just turned out to be one big exception.

>Does streaming actually help the industry?
Nope. Probably about as much as buying overseas discs.
The big money is in domestic discs. merch and domestic source material sales.

Just think about the cut CR/Netflix/Amazon take from your money, and not hand it onwards.
I'm not blaming them for that. That's capitalism. But I still think Japan made more money from the West in the 00s and early 10s from the Western audience that build up the broadcast infrastructure literally for free.

No, you're just paying a middleman

Maybe this will finally shut his trap about much veg chink monies.

Based Crunchyroll. I knew my subscription was not in vain.

> it is said that they have spent 926M CNY (chinese yuan)
>They spend an average of 1 billion yen
So which is it? Yuan or yen? The yuan is worth more than 10 times the yen's value.

Crunchyroll also gave us Yuru Camp and Sora Yori, the best anime which are the talk of the season.

>The pilgrimage in itself is amazing experience

I know right

It is? No wonder the view is not as high.

re zero is on iqiyi though not on bilibili, I don't think I've seen any anime on bilibili get locked behind a paywall

Wrong and wrong.
bangumi.bilibili.com/anime/3461