Justin Sevakis' Answerman on 'What Ever Happened To Manga Entertainment?'

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I figured this would warrant a discussion of its own. It's a good explanation about how Manga Ent. ended up where they are right now.

http://www.animenewsnetwork.com/answerm ... -14/.92910
Anonymous asks:

I've always loved most of Manga Entertainment's output but it seems as they get older they do less and less. They used to co-produce stuff like Ghost in the Shell and video game tie-ins like Dead Space and Dante's Inferno, and have a pretty healthy library of licensed content. Now they just seem to distribute Right Stuf's catalog online, alongside their older titles. It also looks like to me their UK division is also becoming less and less active as well. It seems like their parent, Starz, doesn't quite know what to do with them anymore. Is the parent company to blame for their decreased output or did something else happen? Will they ever get back into the licensing/co-producing game again?

Justin Sevakis responds:

Once the biggest name in anime, Manga Entertainment today is a shadow of its former self. The history behind the label is a fascinating one, because unlike most of the other anime publishers, they were owned not by a Japanese company, but by a large Western entertainment publisher. Their story is one of extreme highs and lows, buyouts upon buyouts, and seeming abandonment.

Their story began in the late 1980s in London, when music producer and publishing manganate Chris Blackwell started a new subsidiary of his highly successful record label, Island Records, to distribute music videos and concert films for their musical acts. The division was called Island Visual Arts, and to run it, Blackwell promoted his prodigal marketing director Andy Frain to be in charge of the division. The division produced and distributed music-related films and videos from bands like U2, Bob Marley, Grace Jones, and many others, and also dabbled into nature documentaries. In 1991 the company got the distribution rights to Akira, and released it into cinemas. Its enormous success took the company by surprise.

Suddenly aware of the huge potential of anime, Frain quickly established a specialized label: Manga Video, and appointed Laurence Guinness to run day-to-day operations. Their timing was such that they were able to license nearly all of the big VHS-era hits for the UK market, and establish a partnership with American publisher Central Park Media to split the costs of dubbing. For a good few years, the company released some of the best anime feature films to UK cinemas, and pumped out tons of VHS releases. Frain noticed that Akira's biggest draw tended to be with rebellious young men, and so he fashioned the label's marketing as edgy and cyberpunk; dubs had profanity added to boost the mandatory BBFC age rating on the packaging. (UK anime fans, often bemoaning the company's lack of subtitled releases, really resented the implication that anime was basically just shy of a constant blood orgy.)

The label was successful, and eventually set up distribution through partners in Australia as well. But Frain hadn't found anything that came close to Akira's level of success. In 1994, Production I.G was planning the release of Mamoru Oshii's Ghost in the Shell feature. Sensing its potential, Frain bought his way into the production committee as a co-executive producer, offering the ability to release the film worldwide simultaneously. He bought the American anime licensing company L.A. Hero, which was owned by future Bandai Entertainment CEO Ken Iyadomi, and who had been providing Books Nippan with shows to release under their fledgling US Renditions label. Thus, was born Manga Video USA. Iyadomi proved invaluable in getting some major new titles like Macross Plus, and also brought with him a decent catalog of shows that had not been dubbed. The new company then released a ton of VHS releases at very low prices (typically 2 OVA episodes for $14.95 -- a good $10 less than other publishers), and used its music industry connections to aggressively drive its products onto retail shelves.

Ghost in the Shell came out near the end of 1995, and while it surprised film critics and did reasonably well for a small independent release, it was hardly the blow-the-doors-off success Frain needed. In fact, its success was actually upstaged by another Manga Video release, Ninja Scroll, which was released direct-to-video a few months earlier and had cost the company far less. Having spent a small fortune on Ghost in the Shell, Frain stepped down as head of the company. (He went on to form his own company and produce animation for the local UK market.)

For a while the label struggled to find its footing, having to resort to cheaper licenses and sometimes marginal quality dubs. (Vampire Wars and Sword for Truth, anyone?) Eventually the money coming in from its EXTREMELY successful catalog titles led them to recovery. The subsequent years, under CEO Marvin Gleicher, were spotty. The company also didn't weather the transition to DVD particularly well, as they were outsourcing all of their production to companies far, far away from their offices in Chicago. In an era when things like multiple language tracks and subtitles were becoming very difficult to juggle from a distance, the company faced a high number of technical screw-ups. In 1999, with the UK anime market in decline, the company's original London office was closed, with all operations to be remote controlled from the US. This is also the era where Pioneer, Bandai and ADV were becoming juggernauts, and without their own immediate source of licensing funds, Manga Entertainment had a hard time competing.

Complicating all of this is the fact that Manga Entertainment has never owned itself, and has been subject to some extreme volatility on the part of its corporate overlords. Island World Communications was itself owned by PolyGram, which was owned by Seagram. However, by the late 90s the music business was in its Napster-era shambles, and with Seagram ready to merge PolyGram into Universal Music Group, Blackwell bought back his company. For a few years, he tried to streamline it to run in partnership with his indie film distribution label Palm Pictures, but the two companies had little in common, and the fact that Palm Pictures was in New York City (Manga Entertainment was in Chicago) didn't help matters. Finally, around 2004 the label was purchased by discount home video distributor IDT Entertainment, better known to consumers as Anchor Bay. Gleicher left the company around this time, leaving their licensing guy Kaoru Mfaume to run things.

Mfaume tried to get the ball rolling again, with shows like Karas, Tactics, Strait Jacket and Noein - to your other self. Mfaume also brokered a deal with Bandai Entertainment to release Ghost in the Shell: Stand Alone Complex, which Manga automatically owned (due to being co-producers on the first movie) but lacked the resources to release and market properly. But Manga's new parent company was already in trouble. This was the era of the retail returns that were hammering ADV, Geneon, and every other DVD publisher. Two of Anchor Bay's former executives were in trouble with the Securities and Exchange Commission, who alleged that the company engaged in millions of dollars worth of sham transactions to essentially look like they were selling mountains of unsold/returned inventory, but then secretly buying it back. The company had to redo its financial statements and, with the company now deeply in the red, ended up selling itself to Liberty Media, owner of the Starz cable channel in 2006.

The new company, Starz Media, would be headquartered in Los Angeles and New York City. They shut down both Anchor Bay's Detroit area office and Manga's Chicago office, laid off their staff, and absorbed all of Manga Entertainment's rights and identity. It's at this point that Manga basically went into "slumber" -- having no dedicated staff and no separate office. This buyout also severely disrupted any communication or relationship with Japanese licensors. There was simply nobody left to talk to.

But Starz knew that the Manga name had value, and a few dedicated individuals within Starz tried to get anime-related projects started again. In the early days of anime streaming, they took what was left of their own catalog and licensed streaming rights from Central Park Media, Right Stuf, Voyager and a handful of others, and offered those shows on digital platforms, some successful (like Hulu) and some not (like Joost). The same team also produced an anime, manga and video game review web series called Manga Minutes. Starz' home video label has re-released new versions of the first Ghost in the Shell movie as they've been allowed to, and continued to keep whatever hasn't expired of the Manga Entertainment library in print. They've also released a few marketing-related productions like EA's Dead Space: Downfall and Dante's Inferno under the Manga Entertainment brand. (They also released Redline, although that was in production for so long, I can't tell what regime licensed it.)

It's my impression that when these new video releases come up, Starz is treating them like any other film in their library. As nobody there is an anime specialist, they're simply doing what they can (which isn't always acceptable to anime fans). It's also my impression that the person who was driving anime web video initiatives is no longer at the company, leaving their continued interest in anime somewhat in doubt.

Meanwhile, Manga Entertainment's UK office was restarted as its own separate division in 2005, and the company has spent the last few years releasing UK editions of anime in cooperation with Funimation, Viz and Sentai Filmworks. Their catalog is now quite vast and valuable, but now things are changing. A few months ago two of their key executives, Jerome Mazandarani and Andrew Hewson, have left to start their own anime company called Animatsu Entertainment. Given that the new company has already announced quite a few titles for the UK market, including Knights of Sidonia, A Certain Magical Index, Beyond the Boundary and Nadia, they seem to be picking up the slack for what's left of Manga UK.

I can't tell what's left of Manga UK exactly. Their official Twitter feed is quite active, and they recently worked with Funimation to do UK screenings of Dragon Ball Z: Resurrection 'F', but their website seems moribund, as does their new release calendar. Web sales are being fulfilled by Wales-based competitor MVM. It is worrying.

Have we seen the last of Manga Video? Who can tell? That imprint has had a bizarre lifespan, and it wouldn't surprise me if some executive saw fit to dust it off and give the anime business another go with it. But then, this is also a company whose heyday was in the late 90s, and has little to no relevance to modern anime fans (except in the UK). It could be that it is, in fact, destined to be just a memory.
 
I do find the Nozomi/Manga US relationship a bit weird, as all that stuff that popped up on Viewster recently had the Manga logo slapped on it, but it was clearly Nozomi content. Likewise, even in the UK, Manga seems to have digital rights to stuff like Macross Plus which is obviously OOP physically.

I do find the company's origins in the music industry fascinating, and I suppose in their way, back in the 90s they were very ahead of their time anticipating the demand. It still makes me laugh that their old dubs were recorded out of a studio in Cardiff.
 
Lutga said:
I do find the Nozomi/Manga US relationship a bit weird, as all that stuff that popped up on Viewster recently had the Manga logo slapped on it, but it was clearly Nozomi content. Likewise, even in the UK, Manga seems to have digital rights to stuff like Macross Plus which is obviously OOP physically.

Manga US have been distributing Nozomi/RIghtStuf content online for a long time now. Their YouTube channel says this:

"Manga Entertainment, a Starz® Company, is the premiere entertainment source for anime enthusiasts worldwide. We specialize in the production and distribution of state-of-the-art animation for theatrical, television, Internet, DVD and home video release."

I do find the company's origins in the music industry fascinating, and I suppose in their way, back in the 90s they were very ahead of their time anticipating the demand. It still makes me laugh that their old dubs were recorded out of a studio in Cardiff.
I once looked up Manga at Companies House and the entity known as Manga Entertainment Ltd since 1993 was incorporated in 1987 as "Golden Square Music Ltd".

--edit--

Oh, and PS:
Jerome Mazandarani said:
I had a great chat with @worldofcrap from @AnimeNewsNet #Answerman last night 2 set v record str8. Hopefully! A new piece will go up today.
 
Part 2 (UK Edition)

In Monday's installment, I wrote in detail about how Manga Entertainment had fallen far from their place of dominance in the late VHS era, when they had such titles as Ninja Scroll, Macross Plus, Ghost in the Shell and Perfect Blue. The history was factually accurate, but predictably, when talking about what the brand has been up to these days, there were a few things I omitted.

As I mentioned, in the US the label is now basically a digital aggregator for their own back library, along with titles sub-licensed from Right Stuf and a few other smaller publishers. In addition to putting those shows up on Hulu, iTunes, Netflix and their own (kind of broken) site, I neglected to mention that they also have a social media guy who also make a lot of otaku-themed YouTube videos and viral Twitter content. The main force at Starz who cared for the brand was a guy named Kevin Carney,their Executive Brand Director. I've since been informed that Kevin is still there, but has been busy doing other things, and the company hasn't licensed any new anime themselves since the DVD bubble popped back in 2007 or so.

But in the UK, where the Manga Entertainment brand was very active until recently, a lot has happened that was not previously public knowledge. I knew some of the story, but not all of it -- and since it was still confidential I couldn't include any of it. After Monday's post went up, Animatsu Ltd. CEO Jerome Mazandarani got in touch, and decided it was time to go public. I spoke with him at length over Skype and talked about his history with Manga UK, and where things are now.

Jerome's background with Manga Entertainment goes back to 2005, shortly after Starz Entertainment bought Anchor Bay. Up until that point the brand had been essentially dormant: the Manga UK office was closed and its catalog and trademarks were taken over by Anchor Bay UK, which later came under Starz ownership. However, the Anchor Bay/Manga UK office operated entirely independently from the American mothership. They had their own management, their own acquisition budget, and their own deals. Jerome was brought in (and, in a land where nobody knew anything about anime, was immediately recognized as an expert), and started making deals.

Over the last decade, Manga UK made distribution deals with Viz and sister company Kaze, and had working relationships with Toei Animation and TV Tokyo. However, one thing frustrated Jerome again and again: as digital distribution became a more and more significant part of an anime release, Starz insisted on managing any digital rights through their New York City office. This meant that Manga UK would get the rights to something, then have to give the online rights to Starz' New York office, who would then immediately turn around and sell those rights to iTunes UK and Netflix UK. Disconnected from both the licensing and the UK fan base, it was very difficult for the New York office to know what those shows were worth.

After years of frustration, Jerome and his marketing guru Andrew Hewson left to start Animatsu, with the intent of finally being in the anime business without having to answer to a large, mostly-disconnected parent company. They licensed quite a few new shows and foraged a relationship with Sentai Filmworks (who often ended up with all English-speaking territory rights to shows, and needed to sub-license to publishers outside of the US).

Still, he hadn't burned his bridges with his old employer, and it's a good thing he didn't. In February, only a few months after the founding of Animatsu, Jerome got a call from his old boss, Colin Lomax, managing director of Anchor Bay/Manga UK. He had some big news: Colin had reached a deal with Starz to buy the entire UK business and take it independent. The new company could no longer be called Anchor Bay (it's now called Platform Entertainment), but they'd have exclusive rights to all Manga Entertainment branding and show catalog within the United Kingdom and Ireland. Starz would no longer own the operation, and would have no claim on anything they did.

And so, the two companies started working together and becoming one again. Animatsu needed a distributor, and Manga UK was an ideal one. Manga UK, having lost Jerome, didn't have much new anime in the pipeline, and without Andrew they had no one to market them. So Animatsu started licensing and marketing on behalf of Manga UK. While they're still separate companies on paper, the two now share office space and are in the process of merging operations. Right now they're in growth mode, working on a bunch of new and renewing licenses, and beefing up their marketing team to four people. They're also working on the theatrical release of the new Dragon Ball Z movie, which is currently set to run at 50 theaters across the UK.

Moving forward, Jerome intends to release most shows as Manga Entertainment, but keep the Animatsu brand alive as a special division for things that aren't simple UK license deals. He has plans for development, and hopes to get into co-productions, global rights management and cooperative deals with anime producers. The end goal, as anime becomes more and more of a global, digital streaming market is to make new shows that have appeal beyond just core anime fans.

"The niche is not enough to maintain a streaming platform," Jerome says. "The valuation of a [streaming platform] is based on how many subscribers they'll have, and there's a ceiling we can't go beyond if we only act as a portal for purely Japanese content." Many previous US/Japan co-productions, he says, are examples of times where the Japanese crew just wasn't all that into it, and the end result suffered. He sees a future where in order to grow beyond core anime fans, Japanese and Western companies will have to come together to find stories that production teams in both countries can be excited about.

So that's where Manga UK is today. Coming out of a turbulent and odd stretch of its history, but hopefully swinging towards a much more active future. The US division should be so lucky.
 
So that seems to confirm that Animatsu are basically the licencing arm of Manga UK and occasional mask for Manga to hide themselves behind when anyone goes "Hey, arn't those the jerks to only got like three or four sets of Fairy Tail out?"
 
Interesting to see they plan to license most shows as Manga Entertainment - the last few months seem to have suggested otherwise, but perhaps that's just the kinds of shows we've had recently.

And yeah, the Funimation question remains unanswered.
 
So if they're slowly merging back together, which name wins out? If they couldn't keep Anchor Bay for the parent company, will the reunited venture formally become Animatsu? 'Manga' is kind of outdated for an anime company title anyway.
 
HellCat said:
So if they're slowly merging back together, which name wins out? If they couldn't keep Anchor Bay for the parent company, will the reunited venture formally become Animatsu? 'Manga' is kind of outdated for an anime company title anyway.

Platform is the name of the company, Manga is the name it uses for mainstream anime products, Animatsu is the name it uses for it's more cult animation (Animatsu has RWBY, and a tweet from Jerome M asked about a potential Steven Universe blu-ray so it's possible they may be working on a Cartoon Network tie-up, like Madman has in Australia), Asian cinema and the odd obscure live action title.

What's interesting is that they let them keep the Manga branding with exclusivity, but not the Anchor Bay branding. Which would seem to suggest at this point, Manga US is basically dead.
 
Buzz201 said:
HellCat said:
So if they're slowly merging back together, which name wins out? If they couldn't keep Anchor Bay for the parent company, will the reunited venture formally become Animatsu? 'Manga' is kind of outdated for an anime company title anyway.

Platform is the name of the company, Manga is the name it uses for mainstream anime products, Animatsu is the name it uses for it's more cult animation, Asian cinema and the odd obscure live action title.

What's interesting is that they let them keep the Manga branding with exclusivity, but not the Anchor Bay branding. Or to put it another way, Manga US is basically dead.

Ahhh. So it's much like how Disney uses different names depending on if it's family fair vs edgy drama?
 
Buzz201 said:
HellCat said:
So if they're slowly merging back together, which name wins out? If they couldn't keep Anchor Bay for the parent company, will the reunited venture formally become Animatsu? 'Manga' is kind of outdated for an anime company title anyway.

Platform is the name of the company, Manga is the name it uses for mainstream anime products, Animatsu is the name it uses for it's more cult animation (Animatsu has RWBY, and a tweet from Jerome M asked about a potential Steven Universe blu-ray so it's possible they may be working on a Cartoon Network tie-up, like Madman has in Australia), Asian cinema and the odd obscure live action title.

What's interesting is that they let them keep the Manga branding with exclusivity, but not the Anchor Bay branding. Which would seem to suggest at this point, Manga US is basically dead.

STEVEN UNIVERSE BLU RAY!?!>!>?!?!?>....oh yes yes yes yes yes oh please be true, I absolutely adore Steven Universe and would love to see a BD release of the series......and hopefully a proper BD release of the likes of Adventure Time and Rick And Morty that the US and Austrailia got
 
Invisible Crane said:
Buzz201 said:
HellCat said:
So if they're slowly merging back together, which name wins out? If they couldn't keep Anchor Bay for the parent company, will the reunited venture formally become Animatsu? 'Manga' is kind of outdated for an anime company title anyway.

Platform is the name of the company, Manga is the name it uses for mainstream anime products, Animatsu is the name it uses for it's more cult animation (Animatsu has RWBY, and a tweet from Jerome M asked about a potential Steven Universe blu-ray so it's possible they may be working on a Cartoon Network tie-up, like Madman has in Australia), Asian cinema and the odd obscure live action title.

What's interesting is that they let them keep the Manga branding with exclusivity, but not the Anchor Bay branding. Which would seem to suggest at this point, Manga US is basically dead.

STEVEN UNIVERSE BLU RAY!?!>!>?!?!?>....oh yes yes yes yes yes oh please be true, I absolutely adore Steven Universe and would love to see a BD release of the series
Calm down. Jerome asked about whether people would buy it. There was no statement of intent, no suggestion it was a possibility. It was a simple question I read between the lines of. Please don't start harassing him.

https://twitter.com/ReallyShitTweet/sta ... 9065031680
 
I know the Manga branding has strong awareness, but to anyone who follows anime online, the brand is damaged. To those outside the niche, they don't care whether its Animatsu or Manga, so I find it out that they've decided to go back to the old brand for the most part.
 
Not so sure. The Manga brand logo is iconic, even outside the niche. Casual fans can probably identify with that and be blissfully ignorant to any reputational damage that niche followers are aware of. To those who follow things more closely then I guess anyone hoping that Animatsu might bring an upswing in quality to their own brand can now hope that they bring it to the Manga label instead.

If they were going to get behind one brand as the primary then it was likely always going to be Manga.
 
King Jimmeh said:
I know the Manga branding has strong awareness, but to anyone who follows anime online, the brand is damaged. To those outside the niche, they don't care whether its Animatsu or Manga, so I find it out that they've decided to go back to the old brand for the most part.

I think that's the point, products that have casual appeal get released by the brand people have heard of, products that don't have casual appeal get released by a brand that hasn't been tainted. That way they get the best of both worlds.

ConanThe3rd said:
Invisible Crane said:
Oh, but still if Animatsu brought Adventure Time, Steven Universe, Rick And Morty, etc to UK BD and as long as was the same as the US/AU BD I would be all over those
The important part being "BD"

I think AT fans would take anything vaguely complete and uncut at this point. Rick and Morty is currently airing (I think it just started on Fox), so Warner Bros. may keep that to themselves. But with both Warner and Madman having masters (although Madman may just using Warner's master), I can't see why they wouldn't release one.

Although, I think this is a moot point, as Warner Bros. do not operate their own business in Australia, and that's probably what allowed Madman to get the Cartoon Network deal. But Warner Bros. has sold AS content to another distributor before (Revolver Entertainment released a few series), so who knows.
 
HellCat said:
So if they're slowly merging back together, which name wins out? If they couldn't keep Anchor Bay for the parent company, will the reunited venture formally become Animatsu? 'Manga' is kind of outdated for an anime company title anyway.
From the article: "The new company could no longer be called Anchor Bay (it's now called Platform Entertainment), but they'd have exclusive rights to all Manga Entertainment branding and show catalog within the United Kingdom and Ireland."
 
The situation regarding Animatsu seems bizarre. Jerome had no previous idea that his former boss was trying to do essentially what he was in the process of doing with Animatsu, but with the ability to retain the Manga name? Smells shadier than a sunny day under a palm tree.
 
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