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In the past few weeks, several controversies shook the anime world as industry giants like Crunchyroll and Mappa Studios were seen in the headlines. The Crunchyroll controversy came from a fan mail mishap involving one of the popular voice actors, David Wald. The voice actor personally took this to social media, expressing disappointment and frustration at the mishandling of his fan mail.
Also, some resurfaced backtalk regarding poor working conditions, low compensation, and dissatisfaction within MAPPA’s production team, further fueled this long-standing controversy. However, one might think these are nothing compared to the recent accusations that threaten to change the ground rules of this industry: regarding Netflix’s methods of not providing creator loyalties!
It Was Netflix All Along!
A recent report from the Association of Japanese Animations (AJA)brought to light a contentious practice of withholding royalties from anime creators, regardless of the show’s extra success. Filed with the Japanese government’s Agency for Cultural Affairs, the report details an unfair compensation structure used by a “global distribution provider,” none other than Netflix. This flat flee model denies creators extra income even when their respective shows are very popular and earn big.
This report brought out concerns about Netflix’s long-held practices with this questionable business model. Reportedly, Crunchyroll uses a minimum guarantee model and pays royalties to its creators. Whereas, Netflix claims to be in favor of the anime industry and wouldn’t offer any form of royalties.
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It has made this issue very challenging for the anime industry and they are now forced to address such problems regarding the Digital Transformation of entertainment media. The AJA is still demanding clarity and equitable treatment. They will maintain keen vigilance on Netflix’s actions and their implications for the sake of all the hardworking anime creators and the market at large.
Netflix Claims They Are NOT Guilty!
Netflix has consistently refuted any allegation of impropriety, and defended the flat fee licensing it offered even when the Association of Japanese Animations pointed it out! Netflix’s business model flat out refuses to pay additional royalties even when some of the shows it broadcasts are exceptionally successful. Reportedly they even denied the shows’ original right holders the chance to do a royalty audit.
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Netflix CEO Ted Sarandos insiststhat the upfront payment model works as well for creators as it does for Netflix. According to Sarandos and Netflix’s Chief Creative Officer, there would be a financial risk in changing this business strategy, and creators would have a harder time focusing on their work! He also added that with this model,Netflixacquires talent from all parts of the world.
Look, we like our model and talent likes our model. It’s so much more impactful for our business if we can make our films, our shows just a little bit better, so much more impactful than making them a little bit cheaper… We’re not changing our compensation structure.
Sarandos dismissed all the accusations and insisted that the payment model would not be changed. He claims that Netflix would be willing to do anything special but they feel like that raw talent usually prefers this certain business model. At a time when several criticisms of the overall industry are the talk of the town, his words are truly noteworthy. Despite a report from AJA suggesting the flat fee system is inefficient for them, Netflix’s harsh decision would absolutely fuel further arguments on industry compensation standards.
Diganta Mondal
Anime Content Writer
Articles Published :741
Diganta Mondal is an avid Content Writer at Fandomwire, specializing in anime and pop culture-related stuff. With over 600 published articles, he boasts his knowledge on this beloved media and strives to connect with fellow anime enthusiasts all across the globe.Despite having a non-journalism educational background, his love for shows like Vinland Saga, Violet Evergarden, and other Naoki Urasawa works constantly inspires him to share informative news, theories, and recommendations on almost all anime genres, aiming to create a shared platform for nerdy discussions.
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crunchyrollMappa StudiosNetflix
