Highlights
- Cable television is declining, with networks like ABC and ESPN being sold off by Disney due to the rise of streaming platforms such as Peacock and Amazon Prime for live sports.
- Crunchyroll, the biggest distributor of anime in America, is partnering with GSN (Game Show Network) in a move to expand its distribution to TV, completing its presence across various entertainment mediums.
- Despite the decline of linear TV, Crunchyroll sees the channel as a way to generate revenue, attract casual viewers to sign up for its streaming service, and serve as an advertisement for its entire ecosystem, including its online store and theatrical distribution.
We live in a day and age where cable television is dying. Disney is rumored to be selling off networks like ABC and ESPN as not being "core to their business." This was a shocking admission from Disney CEO Bob Iger, who once considered ESPN to be one of the crown jewels of the company. These days though, the network has been undermined by live sports going to streaming platforms like Peacock and Amazon Prime, to the point where Spectrum was willing to part ways with the channel (and other networks) in a hotly contested negotiations feud with the mouse.
Throw in other facts like Warner Bros. Discovery enacting massive layoffs at Turner Classic Movies and shuttering the Cartoon Network offices, it is clear that common network and cable TV is on the decline. Even premium networks like HBO and Showtime have pivoted to a streaming first model. This is why it was such a surprise when it was announced that Crunchyroll would be entering the TV business in partnership with GSN. Why would they do this, what are the benefits, and does this say anything about the future of anime in America?
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Who is GSN?
We're assuming if you are reading this article you are aware of who Crunchyroll is (if not, the long and short of it is they are the biggest distributor of anime in America). There's a good chance many of you have no idea who GSN is though. For those people, GSN (Game Show Network) is an American basic cable channel that airs game shows and related programming. Launched in December 1994, the network primarily showcases original and revived game shows, with some classic reruns. In addition to game shows, GSN has also aired reality competition shows and casino related programming.
The reason Crunchyroll is likely partnering with GSN may have something to do with the fact that the network is owned by Sony Pictures Television. Sony also happens to own Crunchyroll, Funimation, and Right Stuf International. Therefore, the only medium that Sony did not distribute anime through was TV through their own network. With this announcement from Crunchyroll, that changes.
How is the Channel Preparing for Launch?
While this may be a huge announcement, like most new networks, the launch of Crunchyroll's channel is going to roll out slowly. The first services that will carry their channel are LG Channels, the Roku Channel, and Vizio WatchFree+, with a launch date of October 11. Amazon’s Freevee is set to launch the channel on October 17. Further service providers who will carry the channel will be announced at a later date
While the Crunchyroll channel will feature a lineup of older shows, dubbed in English, new and premium shows will remain on Crunchyroll’s subscription services. Some of the series available on the FAST channel at launch will include Ranking of Kings, Moriarty the Patriot, and Code Geass. At some point, more shows, genre blocks, and other announcements will be made as we get closer to the launch of the network.
Why Would Crunchyroll Go Down this Path?
This is where things get murky: if the TV landscape is truly dying, why would Crunchyroll decide to enter it at all? Well, there are a few good explanations for why they would do this. First, despite most of us streaming our anime, streaming itself is still not profitable. In all fairness, Crunchyroll likely has one of the more successful services since you likely have a subscription if you are into anime at all, but even the most successful streaming services make pennies on the dollar.
The real money in entertainment still comes from theatrical distribution, physical media sales, and mainstream TV. While these are declining industries (and some of them have profit margins that are razor-thin) we've seen the company make moves to corner every market anime enters. They are releasing more movies theatrically than ever before. They bought Right Stuf International, which was one of the most successful specialty ecommerce sites on the internet. Heck, they've even merged with their competition (AKA: Funimation), creating an anime superpower.
While linear TV may be dying, there is no doubt that it still makes SOME money! While it doesn't make enough for Spectrum to give Disney fee hikes for ESPN and Disney Channel, they certainly don't object to having the channels. In an era where it seems like every other cable network is airing Seinfeld and Law & Order, having a dedicated channel to anime (which is bigger than it was even in the early 2000s) is more than likely going to generate revenue for the company.
What's more, it creates a great synergetic energy with the app. Crunchyroll has made it clear that they see the network as a way for people to "sample anime." They are hoping that by catching the attention of casual viewers, those viewers will like what they see and sign up for the Crunchyroll app (maybe they'll even become a Crunchyroll Super Fan and buy from the Crunchyroll Store [which Right Stuf was recently folded into]). And even if they don't, if a casual fan has to cut the service due to financial concerns, they will capture that audience on the 24/7 channel instead.
What this really speaks to though is the fact that streaming is not the gold mine everyone thought it was. If Disney, Warner Bros. Discovery, and even Netflix have noticed this, you can bet Crunchyroll has as well. If companies like Disney are turning back to old methods of releasing movies (its massive $1,500 BluRay box sets for example) then Crunchyroll is turning to those methods as well. Their 24/7 channel will not be a major moneymaker, but it will make money and it will act as an advertisement for the entire Crunchyroll ecosystem.
Crunchyroll owns a streaming service, online e-commerce store, theatrical distribution, some of the content itself, the means to sell AND distribute in a versicle system! Now, they have a 24/7 network that cable companies can pay them to carry. That is a pretty strong statement for how much power they have in this niche industry, and when you look at it like that it makes sense.