This panel discussion at Otakon 2008 brought together members both from U.S. anime licensing companies and fansubbing groups in order to discuss some problems affecting the industry, which are supposedly attributable to the prominence of fansubs on the internet.  The industry representatives argued that the wide availability of anime fansubs on streaming sites such as YouTube have significantly impacted DVD sales and thereby led to reductions in series production.  Actual market figures presented include a drop in DVD sales from $550 million in 2003 to an estimated $300 million in 2007, while an estimated 6 million fansubs are downloaded every week.  Fansub members respond to these claims by arguing that (1) they serve an important promotional role for unlicensed anime series, (2) they preserve the integrity of shows which have been heavily edited or censored, and (3) the industry has not presented any alternatives that meet fan demand for timeliness.  The panelists then discuss some approaches that companies could take in order to address these issues, such as streaming simulcasts of shows and digital downloads.

Just like every other media industry that has experienced declining sales, the anime industry has also attributed these losses to digital piracy and filesharing.  However, the practice of fansubbing cannot be reduced simply to that of digital piracy since it developed prior to the advent of the internet and in fact served an important and acknowledged positive role in promoting and developing the anime market in the United States.  Furthermore, the transparency and codes of conduct within fansubbing communities are often proposed as a basis that justifies their practices and separates them from pirates.  Although the anime industry has undeniably been faced with a contraction in sales due in part to digital piracy, any legal response from these companies must be targeted towards the correct group of perpetrators, namely the pirates and not fansubbers.  Furthermore, companies must leverage the influence of fansubbing groups within anime fandom by working with them to provide legal alternatives, such as fansite-based internet distribution, that balance respect for creators’ rights with the demands of fan communities.