So looking at recent announcement at the recent AX, it's been revealed that Funimation is part of the production committee for the anime 'Dimension W'. What exactly does this mean, and how could this sort of involvement possibly affect business practices in anyway? Is there a likelihood other companies will follow in this sort of thing too?
Production committee members are basically the investors in an anime. From the earliest stages they're putting in money up front to actually make the production, and then get a say in every committee meeting, where every strategic decision about that anime is made, from licensing to casting choices. Every committee member has put in a pretty substantial sum of money to be a part of this, and as part of their participation, they get certain rights to the show. A music company on a committee will definitely have soundtrack rights, and the ability to put their musicians in the show. A toy manufacturer will have toy rights. And Funimation certainly has streaming and distribution rights in English territories.
Being on a production committee is something extremely rare for an American company. Since every member on a committee gets to sign off on nearly every decision made about a show, only the most trusted partners are invited into that inner circle of influencers. It's a huge honor. That's the good news. The bad news is that, the last time this happened, it was a sign that licensing had gotten so insanely expensive and competitive that this was actually a good deal for the Western publishers. Joining these committees was a way to beat their competitors to a new show before the bidding process could actually begin, and the license fees had risen to a rate that being a committee member wasn't THAT much more expensive. Based on what I've heard, it means the same thing today.
This isn't unprecedented. Manga Entertainment was a committee member for the original Ghost in the Shell movie; ADV was on the production committee for Kino's Journey and others, Geneon USA was on the committee for Ergo Proxy and others. To be brutally honest, I am extremely doubtful that any of those investments back then broke even. Throwing money at anime rights was basically a pissing contest. Nobody was making money.
I don't know that nobody is making money today, but I do know that from what I'm hearing, spending is out of control, bidding wars are as intense as ever, and the cost of doing business has gotten outright stupid. I congratulate Funimation on joining a production committee, but as we know nothing about the show or if it'll be any good yet, it's far too early to celebrate. If the show ends up being a dog, it could end up being a very costly disaster.