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12:17:58 <bay|AX|Streaming> We're going to have everyone introduce themselves starting at the far left
12:18:26 <bay|AX|Streaming> My name is Atsuki? from animebancho is an original youtube channel which launched last december. I hope you know some anime from it.
12:18:42 <bay|AX|Streaming> I'm Vince Shortino, I'm a big fan of animebancho, and I work for Crunchyroll.
12:19:13 <bay|AX|Streaming> I run the Japan office, our headquarters is in SF, but we also have an office in Harajuku, and I've been working for crunchyroll for 5 years and am in charge of acquistions
12:19:23 <bay|AX|Streaming> (lost)
12:20:37 <bay|AX|Streaming> My name is Lance Heiskill, I'm the director of corporate strategy, I've been there 10.5 years, so this is my 11th AX and what a difference AX makes
12:20:42 <bay|AX|Streaming> We try to make our content widely available
12:21:04 <bay|AX|Streaming> My name is Sam Pianski, and I'm in charge of the streaming site animesols which is a brand new site launched about a month ago
12:21:25 <bay|AX|Streaming> we focus on classic anime and anime for pierrot, tatsunoko (lost)
12:21:40 <bay|AX|Streaming> (also are like kickstarter where can pledge for DVD sets)
12:21:46 <bay|AX|Streaming> completely free to watch for streaming anime
12:21:50 <bay|AX|Streaming> and hopefully some will meet their goals
12:22:31 <bay|AX|Streaming> My name is Christopher Mcdonald, I'm the CEO of ANN, I don't stream anime but I aggregate content from some of these guys and we've been a proponent of streaming for a long time
12:22:37 <bay|AX|Streaming> and why i'm moderating this panel
12:22:48 <bay|AX|Streaming> and have worked with some of these guys
12:22:52 <bay|AX|Streaming> (lost)
12:23:13 <bay|AX|Streaming> Unforunately, there are a few companies we would have liked to have had up here but had other commitments...
12:23:18 <bay|AX|Streaming> Right now I'm going to run over the other significant sites..
12:23:32 <bay|AX|Streaming> Neon alley..can't really call it a site, it's an initiative by viz and it's available on psn and xbox
12:23:40 <bay|AX|Streaming> and the interesting thing is that neon alley is linear vs VOD
12:23:50 <bay|AX|Streaming> there is also daisuki.net which just launched very recently
12:24:02 <bay|AX|Streaming> thery are a japanese company, subsidiary of 5 studios
12:24:21 <bay|AX|Streaming> and their goal is to introduce people to new titles, and they are a completely free service and they just launched their ecommerce platform
12:24:46 <bay|AX|Streaming> Also we have a very important non-anime sites that are still huge in the industry, lance alreayd mentioned hulu and netflix
12:25:06 <bay|AX|Streaming> they are a very important company to anime companies, as they reach non-anime fans
12:25:21 <bay|AX|Streaming> i'd also like to mention viki which ...is a subsidiary..or an investment partner of the bbc
12:25:24 <bay|AX|Streaming> they carry a bit of anime
12:25:26 <bay|AX|Streaming> and other content
12:25:28 <bay|AX|Streaming> everyone knows youtube
12:25:34 <bay|AX|Streaming> not that important for streaming for long form anime
12:25:46 <bay|AX|Streaming> more for trailers and what not, though animebancho is there
12:25:59 <bay|AX|Streaming> there is also a new service called simultv which primarily streams lineartv channels
12:26:12 <bay|AX|Streaming> they are also working on having a small anime catalog
12:26:17 <bay|AX|Streaming> they announceed a few catalog titles last week
12:26:20 <bay|AX|Streaming> so that's, i think it
12:26:22 <bay|AX|Streaming> did i miss anyone
12:26:34 <bay|AX|Streaming> and our next topic, the history of streaming anime
12:26:57 <bay|AX|Streaming> and I think our friend from crunchyroll will be good to put on this topic as they are the leaders of streaming anime and i think lance has something to say too
12:27:50 <bay|AX|Streaming> V: i think everyone knows the history of crunchyroll, the site was started in i think 2006, (and he came on later and in late 2008 with mostly illegal content, they went and approached licensors)
12:28:01 <bay|AX|Streaming> so in 2009, in the beginning, we shifted over, to 100% licensed anime site
12:28:09 <bay|AX|Streaming> and this is something the industry was pressuring us to do at the time
12:28:28 <bay|AX|Streaming> and i think lance was.. and i remember seeing lance on youtube railing against illegal sites
12:28:48 <bay|AX|Streaming> and that's what we did, and we worked hard to convince the license holders in japan to let us license, translate and stream the anime to the world right after
12:29:07 <bay|AX|Streaming> i think ANN at the time did the study and noted the drop in illegal naruto downloads
12:29:23 <bay|AX|Streaming> so the industry looked at that and jumped on board
12:29:25 <bay|AX|Streaming> (lost)
12:29:58 <bay|AX|Streaming> but the anime that is interesting to the audience overseas, i think we have everything simulcast which is great for the industry and the fans
12:30:03 <bay|AX|Streaming> and it's now starting to generate good revenue
12:30:12 <bay|AX|Streaming> so the industry is very happy and so the studios are starting to adjust for simulcastin
12:30:29 <bay|AX|Streaming> and now streaming is becoming a legitimate business 5 years later and making the industry more healthy
12:30:38 <bay|AX|Streaming> whether you watch for fre or paid, there is revenue paid back into japan
12:30:47 <bay|AX|Streaming> and so , that's the history according to crunchyroll
12:30:57 <bay|AX|Streaming> and lance at funimation has done simulcasts
12:31:00 <bay|AX|Streaming> and sam is doing old anime
12:31:08 <bay|AX|Streaming> so the point ismaking stuff accessible to fans around the globe
12:31:27 <bay|AX|Streaming> C: Lance, I know you were knocking on doors before naruto came out
12:31:28 <bay|AX|Streaming> can you talk about that ime
12:31:34 <bay|AX|Streaming> L: it's all about access and demand
12:31:41 <bay|AX|Streaming> there is a reason bbc america decided to switch to day and date
12:31:48 <bay|AX|Streaming> it's a content across the world probem
12:32:02 <bay|AX|Streaming> you have geeks across the world who want to watch content and they don't understand rights issues and hurdles and contracts
12:32:05 <bay|AX|Streaming> and they just understand content
12:32:14 <bay|AX|Streaming> it's a long road for education
12:32:33 <bay|AX|Streaming> in japan, there is a lot of committee that own titles, and it's condesning everyone in a committee
12:32:43 <bay|AX|Streaming> and so once they see it works, others will jump on
12:33:02 <bay|AX|Streaming> and the great thing now is that all the stuff on illegal sites, you have an alternative, now it's getting friends and peers to stop watching on illegal sites
12:33:09 <bay|AX|Streaming> we've done our effort, and it's getting fans to support
12:34:25 <bay|AX|Streaming> all the illegal fansubs and everything, it created a demand in the market with LD and VHS and then CD and then it really just blew up with adult swim expanding everyone's knowledge and everyone goes online and sees the latest in japan and don't understand why it takes a year to come to the US
12:34:20 <bay|AX|Streaming> so it's getting our japanese partners to understand that people want to watch it now, and then that people want to collect it , and some people will watch but not collect
12:34:45 <bay|AX|Streaming> there are different levels of fans, different ways of wanting to watch it, collecting it, so we try to serve the needs of each group
12:35:06 <bay|AX|Streaming> C: Lance just brought up a point part way through that I'd like to touch on, one of the things is that fans don't understand why they can't watch something
12:35:31 <bay|AX|Streaming> Earlier this week, daisuki announced a few new shows, and the reaction was obvious "Why can't I watch this, why is it only these countries"
12:35:42 <bay|AX|Streaming> they dont' understand why they can't watch it
12:35:51 <bay|AX|Streaming> as a fan, you don't give a damn about the other company that has the rights
12:36:07 <bay|AX|Streaming> if the fan can't watch it, we can bang on the wall about illegal downloads and fansubs, but if people want to watch stuff
12:36:08 <bay|AX|Streaming> they can watch it
12:36:13 <bay|AX|Streaming> but it's a struggle to meet people half way
12:36:25 <bay|AX|Streaming> the anime industry has to deliver to anime fans what they want and how they want it
12:36:28 <bay|AX|Streaming> or they will do it themselves
12:36:43 <bay|AX|Streaming> that's the kind of thing crunchyroll, funimation, ANN, and a lot of companies realized about a decade ago
12:36:51 <bay|AX|Streaming> that's why we started working toward the goal of streaming things internationally
12:36:56 <bay|AX|Streaming> and there are still barriers out there
12:37:24 <bay|AX|Streaming> but it's disappointing that companies like crunchyroll and daisuki, etc can't stream international when they definitely want to
12:38:00 <bay|AX|Streaming> V: from crunchyroll's perspective, we started with English, then got spanish, then portuguese, and now finally getting spain and portugal
12:38:04 <bay|AX|Streaming> but now there are streaming sites around the world
12:38:13 <bay|AX|Streaming> korea, french,e tc
12:38:35 <bay|AX|Streaming> and we're now getting requests to merge the encode specs, so i dont' think it's far off before everything in japan will be streamed
12:38:53 <bay|AX|Streaming> everywhere in the world in all major languages
12:39:11 <bay|AX|Streaming> S: Speaking as my role from Yomiuri Televation, one of the animesols partners
12:39:29 <bay|AX|Streaming> and one of the changes that's going on in the japanese industry is consideration of non-exclusive licenses vs exclusive licenses
12:39:39 <bay|AX|Streaming> what chris wa talking about, not being able to stream in thailand cause another company
12:39:45 <bay|AX|Streaming> rights will soon be sold on a non-exclusvie basis
12:39:50 <bay|AX|Streaming> that's the way it's sold in japan now
12:39:57 <bay|AX|Streaming> there is a streaming service on every cell phone
12:40:15 <bay|AX|Streaming> the same anime is licensed to multiple streaming sites in japan
12:40:20 <bay|AX|Streaming> and aas that happened, more streaming sites will pop up
12:40:29 <bay|AX|Streaming> and all these sites will start wanting to license
12:40:48 <bay|AX|Streaming> and the non-exclusive licenses will be able to go international
12:40:59 <bay|AX|Streaming> (who watches streaming anime? @ audience from anime bancho)
12:41:24 <bay|AX|Streaming> (who stil buys? @ audience from lance)
12:41:48 <bay|AX|Streaming> L: and the number one influence for buying DVDs which is around 60-69% is "I watched this series online"
12:42:03 <bay|AX|Streaming> There is people, there is fans, there is people who just want to watch a lot
12:42:04 <bay|AX|Streaming> and there is collectors
12:42:07 <bay|AX|Streaming> and when there is an anime
12:42:12 <bay|AX|Streaming> there is diffferent revenue streams
12:42:15 <bay|AX|Streaming> and each stream is important
12:42:18 <bay|AX|Streaming> if one contracts, another has to make up for it
12:42:26 <bay|AX|Streaming> the DVD/BD market is healthy
12:42:34 <bay|AX|Streaming> but all these other revenue streams like netflix, etc
12:42:52 <bay|AX|Streaming> all this money goes back to japan and that money is leverdged to do more shows
12:43:06 <bay|AX|Streaming> C: Want to do a quick informal survey... who doesn't buy DVDs
12:43:28 <bay|AX|Streaming> who doesn't buy merch
12:43:47 <bay|AX|Streaming> what we're seeing is that a lot of people who watch anime onilne and don't buy DVDs do end up buying merchandise
12:43:51 <bay|AX|Streaming> and that's why streaming is also important
12:43:58 <bay|AX|Streaming> one of the things i liked that crunchyroll started doing and daisuki is doing
12:44:04 <bay|AX|Streaming> is here's an anime, and here's the merchandise
12:44:13 <bay|AX|Streaming> i've been bitching to these guys thta tthye haven't been doing it
12:44:19 <bay|AX|Streaming> V: We have to get merchandise out there
12:44:32 <bay|AX|Streaming> I've been talking to japanese rights holder this week about how we can get more products to you in a legal manner
12:44:39 <bay|AX|Streaming> frankly a lot of it is parallel import which isn't great
12:44:55 <bay|AX|Streaming> so one of the goals is to make crunchyroll into a giant department store
12:45:08 <bay|AX|Streaming> we've been talking a lot about TV anime, but we should talk about bancho
12:45:12 <bay|AX|Streaming> they are doing some cool things
12:45:14 <bay|AX|Streaming> (lost)
12:45:27 <bay|AX|Streaming> one other important thing is discovering new talent
12:45:34 <bay|AX|Streaming> a lot of the anime you see is the same recycled old stories over and over
12:45:37 <bay|AX|Streaming> and a lot of them aren't hits
12:45:45 <bay|AX|Streaming> and what we need to start doing is the next gen of creators and animators
12:45:50 <bay|AX|Streaming> and that's what animebancho does
12:46:07 <bay|AX|Streaming> tsunami-san, can you talk about how you find these guys?
12:47:01 <bay|AX|Streaming> A; We launched in Dec, and we're founded by google, we have a contract to make 100 episodes for 1 year, and I don't say how much cause it's based on budget...and some of them the guest are here, which is trigger, they used to work at gainax, they produced for us, a title called inferno cop
12:47:12 <bay|AX|Streaming> what we have asked from google/youtube is make it short andmake it funnny
12:47:17 <bay|AX|Streaming> most of our program is based on comedy
12:47:35 <bay|AX|Streaming> and make it have a continuous and have it so people watch
12:47:43 <bay|AX|Streaming> so we're producing anime
12:47:51 <bay|AX|Streaming> and what we're doing is kinda testing what's good for a new anime
12:48:20 <bay|AX|Streaming> or so far i think the youtube and google people are happy, because more american people watch than japanese people
12:48:43 <bay|AX|Streaming> so many american fans are asking for more of this
12:49:06 <bay|AX|Streaming> V: an example of fans starting influence how japan does is, that if the fans get behind it, like how many people watched the kyoani swimming anime "CM"
12:49:08 <bay|AX|Streaming> (para)
12:49:58 <bay|AX|Streaming> C: What you watch and get excited influences what you watch and gets made, but you are picking from a fairly narrow gene pool, but if you get behind something like anime bancho, you have the potential to have a greater impact because you are saying that's something you want
12:50:12 <bay|AX|Streaming> and that can change what they produce
12:50:07 <bay|AX|Streaming> (lost)
12:50:26 <bay|AX|Streaming> A; and ask your friends to be a member
12:50:37 <bay|AX|Streaming> it's free to subscribe
12:50:45 <bay|AX|Streaming> C: I'd like to delve a little deeper into what goes on into getting anime on streaming sites
12:50:52 <bay|AX|Streaming> Once again, I think this is something lance and vince touch on
12:51:04 <bay|AX|Streaming> Lance, want to go ifrst this time?
12:51:31 <bay|AX|Streaming> L: some of it is, whenever things are airing, the contracts can be kinda be up to whenever it airs, and you have got to work on quick deadlines and have really talented people who know there stuff
12:51:34 <bay|AX|Streaming> and security is #1 out of everything
12:51:40 <bay|AX|Streaming> secure servers, sercure everything
12:51:51 <bay|AX|Streaming> you don't want to be the person where the show comes out before it airs
12:51:57 <bay|AX|Streaming> and then the quality of the subtitle
12:52:03 <bay|AX|Streaming> and you do have to negotiate timing of when it airs from broadcast
12:52:14 <bay|AX|Streaming> because there is different rules and different committees want different things
12:52:20 <bay|AX|Streaming> and whether you want it behind a subscription wall or not
12:52:22 <bay|AX|Streaming> those are just the main points
12:52:31 <bay|AX|Streaming> i know you can go more indepth
12:52:37 <bay|AX|Streaming> V: there are a bazillion reason that it's hard
12:53:07 <bay|AX|Streaming> but the wya you do it is run around tokyo 24/7 and collect materials and stuff, the good news is the industry is starting to get used to it, and learning how to encode, and sam's been instrumental in teaching them that
12:53:28 <bay|AX|Streaming> and one of the things is getting the committees to make a decision before it airs
12:53:37 <bay|AX|Streaming> Sam does this as a living, he does getting materials to people for a living
12:53:57 <bay|AX|Streaming> C; How long do you think simul companie have to get everything turned around?
12:54:27 <bay|AX|Streaming> You have 4 days to receive materials, transfer it from Digitbeta...
12:54:31 <bay|AX|Streaming> Sam: there is no digibeta anymore
12:55:05 <bay|AX|Streaming> C: 4 days to translate it, ...3 days or less..because after it's all done
12:55:15 <bay|AX|Streaming> because depending on the company, you ahve to send it for approval, and wait for them to send the okay
12:55:32 <bay|AX|Streaming> S: I can speak to that directly, part of my day job is handling that for a couple shows on crunchyroll and animesols and other sites
12:56:13 <bay|AX|Streaming> And one of the things that's making things faster finally and starting to change in the industyr, but it's still going on with most shows, but until recently, everything was done with tapes, HDcam tapes or digitbeta tapes, and in some cases, the other tapes sent to the licensor are copies specially made
12:56:17 <bay|AX|Streaming> and then to get it on a site, you have to digitize a tape
12:56:44 <bay|AX|Streaming> so what happens is you have a digital file that gets turned into tape, copied multiple times, and then sent to another company to digitize it
12:56:53 <bay|AX|Streaming> so the question is why don't you get the original digital files
12:57:04 <bay|AX|Streaming> so now some shows are being done all digital at Yomiuri
12:57:18 <bay|AX|Streaming> so now we are getting direct from the studio, with the master files
12:57:26 <bay|AX|Streaming> and this makes it easier for the companies
12:57:31 <bay|AX|Streaming> we can do things slightly earlier
12:57:46 <bay|AX|Streaming> for example, we start doing translations off the same thing the voice actors use to record
12:57:52 <bay|AX|Streaming> and then when we get the final video, we do final adjustments
12:57:55 <bay|AX|Streaming> and that gives us more time
12:58:03 <bay|AX|Streaming> and as vince said, contracts are not even done at that point at time
12:58:11 <bay|AX|Streaming> so it's really hard for lciensing companies to start that early
12:58:16 <bay|AX|Streaming> but it's possile for the producers to do it
12:58:21 <bay|AX|Streaming> (lost)
12:58:42 <bay|AX|Streaming> V: So we used to get the scripts as a book, and it's a bound book, so we have to get the pages out of the book
12:59:01 <bay|AX|Streaming> the easiest way is to microwave the book
12:59:34 <bay|AX|Streaming> and once time i burned a book, so i'm glad they are coming in digitally now
12:59:52 <bay|AX|Streaming> C: So we had a couple more topics, but we wanted to let you ask questions
12:59:55 <bay|AX|Streaming> So we'll open it to Q&A
13:00:16 <bay|AX|Streaming> Q: I know you do TV anime, but what about OVA and movies?
13:00:32 <bay|AX|Streaming> V: We don't do as many ovas cause a lot of it makes it on to dvds, so that's a question for lance
13:00:46 <bay|AX|Streaming> L: since it's not streamed, it's direct to retail, usually we'll do a subtitled version online about 4-6 months before DVD
13:01:03 <bay|AX|Streaming> a lot of people watch the show before they collect it
13:01:04 <bay|AX|Streaming> and it depends on the rights we have
13:01:20 <bay|AX|Streaming> sometimes when there is an ova with manga, it might be from a different company, sometimes we might have access, sometimes we don't
13:02:13 <bay|AX|Streaming> Q: Did you notice any effect from things like the shut down on bandai on your subscription base?
13:02:29 <bay|AX|Streaming> V; I didn't see that much of an effect, we didn't see it... cause most of the views are simulcast
13:02:47 <bay|AX|Streaming> I don't think we had many bandai titles on our site either
13:03:02 <bay|AX|Streaming> L; Bandai still has the rights, they aren't distributing, that doesn't mean they won't be available again
13:03:23 <bay|AX|Streaming> It's unfortunate that bandai ent isn't here anymore, but those titles will be eventually avilable again, like with pioneer and geneon, so it's not like they go away
13:03:39 <bay|AX|Streaming> but with older titles and catalog, wheneve we do dvd consumer surveys, so we have 25% that are less than 2 years
13:03:45 <bay|AX|Streaming> so every pre-2011 show is new to them
13:04:19 <bay|AX|Streaming> we have back catalog, crunchyroll has one...one thing we didn't mention, theanimenetwork, they have a subcription service with a back catalog
13:04:28 <bay|AX|Streaming> so it's a matter of trying to find a new home
13:05:07 <bay|AX|Streaming> Q: (basically a question of evaluating titles before licensing for CR)
13:05:23 <bay|AX|Streaming> V: Our goal is to get 100% of anime that is on TV in japan available as widely as possible
13:05:32 <bay|AX|Streaming> of course, there is some anime that is more agressively licensed than others
13:05:35 <bay|AX|Streaming> even shorts, i don't know if people watch those
13:06:01 <bay|AX|Streaming> C: Thank you for coming, and I'd like to thank tsunami san for putting the panel together, thank you to our panelists
13:07:35 <bay|AX|Streaming> ENd