Ask John: Will FUNimation Be Able to Sustain Its Success?

Question:
Funimation been going ADV on us for a while now. They’re really taking the industry by storm. Do you think they planned this out carefully or do you think they are going to end up taking a nap like ADV?

Answer:
It does indeed seem as if FUNimation has stepped into the role in America’s anime industry that was once held by AD Vision. In the late 1990s and early 2000s, AD Vision was a high profile industry powerhouse that frequently acquired and distributed the hottest fan oriented titles in America. Within the past two years AD Vision’s influence and profile has seemed to recede significantly as the company has drastically scaled back its acquisitions and is no longer associated with today’s hottest titles. Today FUNimation distributes Full Metal Alchemist, and has an upcoming catalog of high profile titles including Speed Grapher, Basilisk, and Trinity Blood. And while AD Vision’s Anime Network seems to be growing increasingly marginalized by steadily switching to premium subscription basis instead of being a free, linear network, FUNimation is moving into increased accessibility with FUNimation Films and the FUNimation Network.

While FUNimation does seem to be following in the footsteps of AD Vision’s past success, FUNimation seems to be planning for success more prudently than AD Vision did, and seems to be positioning itself for long term stability more effectively than AD Vision did. I don’t wish to seem acrimonious toward AD Vision, but I’ve long believed that ADV Films has concentrated on short term gain at the expense of long term stability. During its peak of success, ADV seemed to license any title it could get just to have the biggest catalog in America. AD Vision proudly announced its acquisition of a thousand volumes of manga – emphasizing quantity over selective quality. And AD Vision’s frequent, multiple DVD re-releases devalued its product and undermined the loyalty of its consumer base. After numerous lay-offs, company down-sizing, and drastic reductions in its DVD, toy, and manga output, AD Vision now seems to have shrunk to a sustainable size. But AD Vision presently seems like a shadow of its former self because the company ran on overdrive until it suddenly ran out of fuel and sputtered almost to an halt.

On the other hand, FUNimation seems to be approaching its growth more responsibly; concentrating on steadily developing a sustainable foundation. Rather than attempt to stockpile a gigantic and expensive catalog that includes numerous titles with minimal market potential, FUNimation is primarily pursuing licenses to solid investments. Titles like Full Metal Alchemist and Kodocha are tentpole titles that will sustain the company for a long time. And FUNimation is not compromising the profitability of those franchises by sinking money into expensive but non-profitable titles. Rather than relying on novelty gimmicks like intentionally controversial dubs, and heavily discounted re-releases in order to rake in short term profits, FUNimation seems to be building long term customer loyalty by acquiring good shows and releasing them in a way that satisfies both mainstream and “otaku” consumers. I get the impression that FUNimation is brand managing itself and its properties for steadily increasing long term stability. While AD Vision may have been reckless and thoughtless and is now paying for its avarice, FUNimation seems diligent, determined, and wise enough to ride out market fluctuations and remain a central focal point in America’s anime industry.