I'm not buying chainsawmerch or a blueray, I don't even own a way to watch one, but I am now the proud own of all eleven physical volumes of Chainsaw Man Part One.

“The problems of wages and the production environment are not forced upon us by other companies, but are in part created by ourselves.” Most self-aware CEO. Please let the animators go home and sleep.

Not that, he can't really say the big publishers are fucking the industry because he can't afford to throw Kadokawa/Kodansha under the bus, its a very small world. Of course the studios are responsible too since they ultimately have direct control, but he wont cross that line.

The fact he openly admits the problem exist is already different from just literally shrugging it off "shikata ga nai" like they all like to do.

In a surprisingly far-sighted take, in his opinion the largest risk factor to the industry is foreign streaming services like Netflix consolidating demand.

This is what the fandom has been saying for years though. The Netflix model is cancer that nobody likes, the lack of simul releases is bad enough but the delays are insane. Then the subtitles are just as bad as CR or worse.

But there is more, the fact that anime has a much longer production time means that unless multiple cours are ordered together(basicaly the old 24+ runs that rarely exist now) it means multiple years between releases and Netflix just wants to dump everything and move on. The industry is already bad with sequels already and Netflix would kill it.

The only positive for Netflix so far is the money period, but the financial side of the industry can and should be fixed without them imo.

I'm less concerned about them making CSM "safe", and more concerned about just cutting the budget and crunching the workers harder. It'll be interesting to see what kind of sales they get with One-Punch Man S3, as imo the source material is, like S2, much weaker than S1.

(Machine Translation via DeepL, Google, Yandex and others) by Mazen141 on r/anime subreddit

"Weekly Toyo Keizai" released on May 22nd features "Karakuri of Anime Enthusiasm". In the animation industry, production companies are said to be in an "unprofitable" position. This is because, in the "production committee" system that is currently the mainstream, TV stations and advertising agencies are investors, while production companies are generally subcontractors who are paid by the production committee to undertake the production.

However, there is one production company that is attempting to change that position: MAPPA, established in 2011, is one of the most promising production companies in the industry today, having produced such films as "Jujutsu Kaisen" and "Attack on Titan: The Final Season"

When the company announced that it would invest 100% of the production costs for the animation of the popular manga "Chainsaw Man" serialized in Shueisha's "Shonen Jump+" magazine, the industry was abuzz with excitement over this unprecedented challenge.

We asked Manabu Otsuka, the representative director of MAPPA, about the aim and underlying issues facing the industry.

――MAPPA invested 100% of the production costs in addition to the production of the animation of the popular manga "Chainsaw Man". What is the aim?

Anime is now attracting attention as a business all over the world. However, while anime production committees and other companies that own merchandise and distribution rights earn considerable profits, production companies are the least profitable in the industry, Under such circumstances, I challenged "100% investment" as a necessary means for the production company to earn profits.

At MAPPA, we have been focusing on making about 6 to 8 works a year, regardless of whether they are series or theatrical works. Through our production capabilities and branding that we have developed in this way, we have been able to obtain opportunities to work on animated versions of famous original works, which led to this 100% investment.

It is also a statement of intent, both inside and outside the company, that the company will not only accept orders for production, but will also manage its business with an eye toward rights management in the future.

――I think it was a big challenge, but how do you look back on the results so far?

Never before had we received so much attention before we released our work to the world. We are a young company, so we struggled with how to handle that pressure and give our best performance.

It's been a good learning experience for me to experience the kind of work traditionally done by the production committee, such as detailed procedures for rights, licensing, and product planning. If you're a big production company, you probably already have that experience.

Financially, it was a complete success. However, I'm still not satisfied with whether it has the same impact as "Jujutsu Kaisen", which I worked on most recently.

Some works sell a lot of packages (DVDs and Blu-rays), while others get a lot of views through distribution. To be honest, I wish I could have reached more audiences who pay for the package.

We will explore how to approach the target audience who will pay money for the work of "Chainsaw Man".

――How did you secure enough funds for a 100% investment in the company, when many production companies are running on a bicycle as subcontractors?

At the start of a company, the only way to make money is to earn a few units anyway. However, if you run a company with only production costs and a small amount of production royalties, it will be a bicycle operation. Therefore, it is necessary to turn the money earned from production into investment little by little. 100% investment is the result of gradually increasing the ratio.

The difficulty in running a production company is that it takes time and money to produce anime. It takes two to three years to produce even a broadcast work of one cour (broadcast period of three months). If only a few tens of millions of yen of profit remain, it is quite difficult to make a profit. It is not a viable business, and the company is merely making the work.

We do not want to do everything 100% funded in the future, but the important thing is to create works on an equal footing (with other investors) through investment.

――What is required of the manager of a production company?

Until now, the management of animation production companies has been "uncharted territory." It is the era of our predecessors, where a few geniuses paved the way, and made development like the Big Bang of the universe. However, I don't think there are many companies that have grown as a company, developed as an organization, and created works that can compete on the world stage. Game companies are capable of such management.

What is required for the management of production companies in the future is to secure and train human resources. The company must consider what kind of human resources are needed for the company's growth and make sure that the necessary human resources are brought into the company. In addition, by considering what benefits can be provided to these human resources, the number of human resources will gradually increase.

As the number of animated works produced increases year by year, the key question is whether we can generate sufficient supply to meet the strong demand. The most important factor is money. Without money, it is impossible to nurture and develop the production environment.

――How does MAPPA develop human resources?

For a long time now, we have been using a format in which we first have a training period and then go into actual production. Although we are upgrading the content of the training every year, it still has not reached a satisfactory level. With the number of students decreasing, we need to do more fundamental training.

Currently, the industry is competing for good applicants who happen to apply. Instead of expecting good animators to apply, companies should approach the younger generation. Scouting in professional baseball and football is a good example. We want to be able to take the time to generate the talent we need ourselves.

――What do you focus on when selecting works?

The "sense of the times" is important. What is easily accepted now? If a work fits in with the current situation, it will naturally perform well and attract people.

Today's industry is particularly oriented toward producing animation based on famous original works. There are risks that can be avoided by doing so, so there is no need for us to break that trend.

However, if everyone in the industry continues to compete for original works, it will definitely not be the case. Flexibility is required in a situation where it is not possible to accurately predict what will happen in three years.

In my opinion, original animations are not at all inferior to the original works. Some works, like "Lycoris Recoil," have left a strong impact. In order to create our own beloved characters and works, we need to challenge ourselves and gain experience in original animation.

――How do you plan to grow as a company?

MAPPA may have the brand power of its works and company, but its credibility as a corporate entity is not yet beyond the realm of a medium-sized company. There is a huge difference from major game companies that are in the same entertainment world.

Unless they understand the value of what they are creating and develop the awareness to increase that value and sell it themselves, production companies will remain small for a long time.

It would be good if the various businesses were to be created in a way that is tied to the people who are making them. However, in the current scheme of the animation business, those who are making animation are the lowest in the hierarchy. If we do not become a group that can think of ways to change this situation, there is no future for us. Time is limited.

――In the industry, there seems to be a mood of giving up on improving the profitability and status of production companies.

If we give up on that, we will have to accept the status quo. The problems of wages and the production environment are not forced upon us by other companies, but are in part created by ourselves. I have been in the industry for almost 20 years now, and there is still a bad custom of affirming the status quo, such as "animation does not make money" or "this is how animation is supposed to be.

That is one way of life, but MAPPA, established in 2011, is still too young to choose that way of life. We do not want to crush our own potential. It is good to have big dreams. We don't want to be pessimistic about our situation and do nothing.

――Why do bad customs remain?

I really understand the feeling (of affirming the status quo).In the past, it was a time when anime couldn't make money, so I might have given up if I was an older generation.

Now we have people all over the world who see our work, and we are blessed. That is why we feel we have to do it. We have to fight while we have the chance.

――The animation industry is booming at the moment, but what could be the risk factors in the future?

The most recent risk is the trend of major overseas distribution platforms. A little while ago, the pa chin ko business was in its heyday, but that too has calmed down. Demand changes over time. It is dangerous to rely on any one demand, and it is important to be needed according to each era.

Are there any other anime this year where the studio has the merchandising and distribution rights?