Editorials

Spreading the Idea Virus – Customers In the Anime Industry


As we continue our discussion of the anime market, I’d like to shift the lens to the largest, most influential aspect of the industry: the customers. Customers are, without a doubt, the very force that keeps the industry afloat.

Note that I didn’t use the word “fans” in this case. There are numerous “fans” who are quite content to download fansubs and never purchase a single DVD. At the same time, there are “fans” who will make excuses at every turn and create gripes, both real and imagined, to avoid paying for product. In the context of this discussion, these people don’t exist.

In the context of a consumer market, the anime industry is having issues. In 2009, the industry as a whole posted roughly $200 million in sales, which was the latest dip in a falling market. Chris Beveridge went on record at Anime Boston to state the a “high-performing” title sold in the realm of 2,000 copies. However, not all is in dire straits. Earlier this year, FUNimation stated that they were seeing improvements in the market, and that they were beginning to adapt to the changing face of the market.

However, even as businesses adapt, we must see if they can keep with the needs of the customer, while simultaneously expanding the market. Many of us can agree – a vast majority of customers in the anime industry are firmly rooted in the core market. Rather than pander strictly to us, the greater industry will need to look to the current non-customers.

Christensen likes to describe the level of markets of the Blue Ocean Strategy as a series of tiers. If we look at this diagram, we could assume that the typical anime buyer resides somewhere in the Customers circle, or the very edge of the First Tier of Non-Customers. The First Tier could be described as those who align closest to the customer market. These are the folks who may watch a stream on Hulu, or Funimation.com here and there, and they’ll buy a DVD of a show they saw on Adult Swim. However, they still don’t see themselves as a part of the market. This is a market that has great potential, and less of a risk than the other tiers. While this group will jump ship and abandon the hobby at the earliest opportunity, this group has the greatest potential to be convinced and converted to the Customer group with the right appeal to value and nurturing.

Lately, we’ve seen a number of attempts to appeal to this first tier of the market. FUNimation’s offering of 50,000 free episodes this summer, Crunchyroll’s low priced subscriptions that appear on everything from Android to Roku, and the companies’ eagerness to place cheap episodes on services like iTunes, Netflix Instant, and XBox Live Marketplace are examples of such attempts. The astute reader will notice a trend in this – we’re looking at products that many fans would deem “inferior” to the experiences that many customers are accustomed to. The absolute ideal would be that these customers, after finding products they enjoy, would be turned to looking for more. These so-called casual watchers would be converted to those who do want to pick up the latest DVD, to buy the next huge Blu-Ray.

The second tier, “Refusing Non-customers”, is made up of those who see the purpose of the anime industry, and have considered them to be a means to suit their needs, but still refuse. This group is the crowd that prefers other media over anime. These are the folks who choose to avoid the anime market. There could be as many reasons for this refusal – stigma, pre-conceived notions about the industry, less-than-satisfactory first experiences, literally anything could be a grounds for refusal. However, a refusal is a refusal all the same.

The third tier, “Unexplored non-customers,” is the largest, and the most difficult to tap. This market knows nothing about the anime industry at all. These are the folks who may have heard of Speed Racer or Robotech once or twice, but otherwise have absolutely no clue about what anime is, how it works, or why they should give a rat’s ass. They are almost impossible to market to directly, and will nearly always ignore any appeals from the industry.

When looking at the market in this light, it becomes very clear that the core, the customers are vital. After all – like-minded people tend to flock together. An enthusiastic customer, or a Sneezer, as Seth Godin calls him, will go out of his way to expose his friends and family to his hobbies, in an attempt to get others to join the fun. This is a powerful motivator, as such moves will ripple outward. Customers convert Tier 1s, who later convert Tier Twos, who then reach the Tier Threes. What is important is that Tiers Two and Three are impossible to reach without the help of customers and Tier One Refusers.

At the moment, it seems that Tier Two and Three are difficult to reach in the greater scheme of things. However, if we see a continued push to gain the Tier 1 refusers, and a continued effort to appease the non-customer while keeping the core happy, we’ll see a real potential for growth in the greater industry. Don’t misinterpret this – anime will always, without exception, be a niche product. However, there are large, untapped markets that can still be reached, to help grow the overall market. It just requires a combination of the right titles, and the right push to those who can spread the virus of appeal.

About the author

Samantha Ferreira

Samantha Ferreira is Anime Herald’s founder and editor-in-chief. A Rhode Island native, Samantha has been an anime fan since 1992, and an active member of the anime press since 2002, when she began working as a reviewer for Anime Dream. She launched Anime Herald in 2010, and continues to oversee its operations to this day. Outside of journalism, Samantha actively studies the history of the North American anime fandom and industry, with a particular focus on the 2000s anime boom and bust. She’s a huge fan of all things Sakura Wars, and maintains series fansite Combat Revue Review when she has free time available. When not in the Anime Herald Discord, Samantha can typically be found on Bluesky.

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