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When I read on February 20th that Viz Media asked Hulu and Joost to disable embedding of their episodes, I wasn’t that surprised because it was part of a larger (possibly temporary) pullback by entertainment studios in general regarding how their content is streamed online.

Earlier that same week, there was a back-and-forth between CBS and Hulu following the disabling of embeds Feb. 17 on TV.com, which was part of CBS’ acquisition of CNET Networks in June 2008. (CBS content doesn’t show up on Hulu because the network hosts videos on its proper site as well as TV.com.) That was followed by Hulu pulling content off Boxee (a media center program) and explaining that it was done at the request of their content providers. TV.com came out with an iPhone/iPod Touch application (iTunes link) on Friday, increasing the sense of competition between the two sites.

Joost wrote a short message about the anime matter, saying they “hope to be able to allow you to embed and watch these shows on other sites again soon”. Just before publishing this post, I checked Joost and embed codes have returned to Viz’s shows – I was able to get self-embeds of Death Note and Naruto Shippuden from Hulu to play more often than not, so maybe Viz’s posturing has ended for now.
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Even though the news about Crunchyroll’s deal with TV Tokyo for Naruto Shippuden, Gintama, and three other unnamed series came four hours after Viz’s announcement of their streaming plan, I decided to break it out into its own entry because there are different mechanisms involved in the CR case including more places of distribution, a tiered viewing system, and ditching of what initially grew the site’s popularity.

The terms of the arrangement are that paid monthly Crunchyroll members ($3/month is the going rate) will get access to subtitled streaming episodes of Shippuden an hour after it airs in Japan while non-paying members as well as Joost and Hulu users seeing the same episodes a week later. It is not clear whether those paid CR members will be allowed to download versions of those episodes, high-quality or otherwise. The first episode to be distributed will be the one airing January 8th and should be episode 90. (See the Viz post for projected Japanese airdates.) Since Shippuden currently airs at 19:30-19:57 JST Thursday and will likely keep that timeslot, the quicksub version should appear one hour later at 3am PST/6am EST/1100 UTC that same day.

What may be the more important aspect of this story to Crunchyroll’s future is the “decisive transition” (press release) from user-submitted to professional-provided content. By the same day this new partnership launches, all user-submitted videos will have been removed from the site and many users will likely have leave for other haunts, not caring enough to stick around a place where a significant amount of fansubs of anime and Asian dramas once resided but will no longer after Jan. 8th.

Co-founder Vu Nguyen remarked in his keynote address at Anime Expo this year that the amount of illegal downloads of Tower of Druaga and Blassreiter dropped by a significant amount as they legally premiered online in conjunction with GDH and that they will strive to find a balance between the desires of their audience and advertisers’ requirements while aiming to become an interactive experience built around content, not merely a venue for anime or other videos. An community thrives based on the quality and strength of its users and while the company may feel better about itself for assuming a no tolerance stance on user uploads (by disabling them entirely), their good intentions will, and may have already, leave many of their frequent, yet infringing users with a misplaced feeling of betrayal and abandonment and only time will tell if Crunchyroll will recoup its lost user numbers. High profile series like Naruto Shippuden and Gintama will certainly help them in offsetting an expected dropoff.

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Viz’s announcement to stream quicksubs of Naruto Shippuden builds on the momentum of Gonzo’s same-day releases back in March and July and Funimation’s “just a few weeks behind” arrangement last month. I did some back-of-an-envelope projections of how all the parts might work when this plan gets implemented in January.

First let’s look at the “within a week of broadcast” component: Viz said in its release that “beginning January 15th the latest episode…will be available for free viewing…within days of its original airdate in Japan” with subsequent quicksubs appearing on a Thursday schedule. As of this posting, 84 episodes of Shippuden have aired so far in Japan, the latest premiere occurring on Nov. 13th. Taking into account that the regular schedule may take a break for Christmas and New Years’ Day, as those holidays fall on Thursdays this year, episode 90 would likely be the ‘latest episode’ once the 15th rolls around unless the translations for #91 are already ready in time of compete against raw viewership (and Crunchyroll’s base of paid subscribers).

(Projected Japanese Shippuden airdates:
11/13 – #84; 11/20 – #85; 11/27 – #86; 12/4 – #87; 12/11 – #88; 12/18 – #89; 1/8 – #90; 1/15 – #91)

The other half of this budding online initiative is a batch availability of eight subtitled episodes each Friday beginning on Jan. 2nd “until the series eventually catches up to the current third [sic] season”. (Shippuden is currently in its fourth twenty-six episode season but who’s counting?) That eight episodes a week rate means that the batch containing #89 through #96 would debut online on March 20th. The use of the word ‘until’ implies that the batch uploads would halt after the catch has been completed so I hope Viz keeps their more advanced episodes online all along, meaning that the first 109 episodes will be online by then (#99 would’ve been posted the day before on Mar. 19th).

I figured I would track when the regular series might finish its initial run on American TV. This past Saturday, November 15th, saw the airing of episode 203 out of 220 on Cartoon Network so if the pace of one episode per week continues, episode 220 would air on March 14th, 2009. The accelerated “11 volumes in three months” manga release schedule laid out by Viz confirms what was suspected a few weeks ago based on Simon & Schuster and Amazon listings.

There is no question that this is a smart move by Viz in order to divert views and traffic away from Dattebayo and scanlation sites in order, as ICv2 described, “to garner the promotional and advertising benefit of distributing new episodes on its own site, rather than ceding it to pirate third party sites” as well as to stave off any ill effects from scan-hosting sites by tightening the gap between Japanese and American manga volume releases.

[Update 11/21: Dattebayo has said they would stop fansubbing Naruto once the freely available, legally subtitled episodes begin appearing online on January 15th out of respect that "Viz and Crunchyroll have gotten their acts together and are trying something new". They will still continue to work on Bleach.]

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It is pretty clear that FUNimation’s roll out of their new license Shikabane Hime onto streaming video websites on Friday trumped what little bit of buzz ADV planned to generate with its Monday license revelations, not only because the title debuted only three weeks ago on Japanese television but also because of the strings and behavior involved in what will be the company’s most ambitious venture into digital distribution yet.

Let me make this clear before I proceed: I will not intentionally imply or assert that FUNimation has any ill intentions despite what the title of this editorial might suggest through subtle reference to contemporary politics; I simply wish to flesh out the many promises and concerns I have about their influence on how the handling of Japanese animation in North America will evolve in the near future. I will give them respect when due but I will also not hold back on expressing any pertinent criticisms.
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Earlier this week, both Hulu and Joost announced the launch of anime channels on their respective sites. While some people joked about the sliver of revenue publishers get from Hulu or complained about watermarking (get over it, it’s FREE content), I think these efforts as well as any similar future ones are beneficial for the licensing companies in terms of increasing reach and awareness.

The shows Funimation, Viz and others are providing to streaming sites have very likely already made most of the gross revenue they will ever produce. I doubt Slayers, Blue Dragon, and Astro Boy are generating any significant scratch for their rights holders compared to the bigger franchises (e.g. Bleach, Naruto) so why not let online users see half or all of a series they may not have known existed and might never buy on DVD. The more recent fare like the entire Death Note series, uncut and subtitled, has the potential of cannibalizing Viz’s sales of digital downloads through Direct2Drive, Xbox/Zune Marketplace, and the iTunes store along with physical DVD sales.
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