In order to buy an anime, you must know how good is that anime. Normally, people download the fansubs and then, if they like it enough; they will buy the DVDs.

We used to have this huge troll in this image board who would come up every day and post "don't forget to buy your anime!" and promote all Funimation licenced anime with "violence" (and bumping his own topics in order to keep them on the first page, and trolling the other topics). This didn't made people stop downloading but only angered people until he got banned. We still don't know if he really worked for Funimation but one thing is for sure, he was really irritating.

There is another thing. The anime industry doesn't live from DVD's only. Bandai creates it's anime in order to create franchise, how it happens with the gundam series which have their own department inside bandai. Code Geass has it's own line of mecha on sale and so does Sora wo Kakeru Shoujo. Japan gathers money directly from domestic sales, even if america is part of the pie charts; for japan, what their own people buy counts more.

That's a difficult question,... well from the point of view of International Manga and Anime Fan-network, it will help them satisfy their needs only to get the opportunity to watch Anime that is not available in their home countries (...yet) or which will never ever appear in their home countries at all.

You have to understand both sides. Personally I would not mind seeing a fansub in advance. It helps me and many other fans to consider whether it is worth to buy an animation or not... because their will always be fans who would sacrifice everything for their very favorite Hobby. And there are enough of them around the world. So, in other words I would say, Fansubs in a way help the Anime and Manga Industry to verify the purchaser decision on buying the right thing...

For any example of what producers think... watch this old one:

http://www.youtube.com/watch?v=OlAB0v8wHdc

I agree to an extent with Funimation trying to shut down fansubs, I was watching the new Full Metal Alchemist on my favorite site and they had it moved, but at the same time they're hosting subbed and dubbed anime on their own site, free of charge, in pretty high quality. I've picked up 5 new shows today alone just sifting through what they offer and I must say, I'm very surprised by them doing this. I would not have given them any amount of praise just a few years ago.

Back to the topic at hand though, I've already stated my views and I'll add that I'm always gonna check out the fansub first. The companies suffering losses in dvd sales to this method aren't going to matter as much when they're putting out all sorts of other merchandise to recoup the loss. As I said before though, If I like the series, I will pick up the dvd, not only to add to my collection, but to support the companies.

I'd have to say it's somewhere in the middle. Some people watch fansubs to get an anime for free, but there are a lot of people who, like Longbow said, use it as a demo to see if they would enjoy the show and if they enjoy they will go out and buy it. Now while they can help a lot due to giving a person a taste of the series before buying it, sometimes it can hurt anime in that some people will enjoy a series enough to watch it but not enough to watch it again and thus will watch it for free without buying the DVDs.

I think the problem is that there are a lot of series now that are being licensed and not broadcast on television so when the moment comes where you can buy such a series, your only option is to either risk it and buy the DVD hoping it is good or watching it for free and testing it out and most opt for the latter. Lately though some companies are catching on and releasing their episodes on a video service such as YouTube like FUNimation is doing so you get used to their version while also allowing people to see if they like it before choosing to buy it.

I think given the right tools, fansubs can help the anime industry. While there will always be some people who are just trying to get something for nothing, that doesn't mean that fansubs are bad. I guess I just think of fansubs as the free samples they give at stores, sure you could take a bunch and not it, but that doesn't mean there aren't plenty of people who will buy it after trying it.

This feels a bit like anime v manga for me. After reading a manga series through to the end should I watch the anime? Personally I always make a point of buying the official DVD of a series I really liked when it comes out. Haruhi for instance, I watched the fansub 100 times over but that didn't stop me blowing £40 on each of the 4 collectors editions when they came out. That's just me, I don't know how everyone is and I don't know if anyone will admit "I never buy the official crap, i get it for phr33 on the interwebz" on a thread like this but those people no doubt exist.

Having said that, what does drive me up the wall is when "scrupulous" torrent sites remove links for "licensed" anime. TBFH, If they can't be bothered to license it for UK release i can't be bothered to buy it.

I think fansubs are made for a clear purpose: to help the fans feel comfortable, Thanks to fansubs I've ever know a lot of (nowadays) classical series

I believe they hurt and help the anime.

They hurt them because they take money away from the creator but they help because they help promote the anime in foreign nations. In the end, people should buy or at least support the creator(s) by buying the manga or buying the dvds.

A critical question that need to be asked is, will those who watch fansubs buy the anime DVD if they fansub were not available. I have to ask this is because the whole premise of fansubs hurting Anime company is that they are losing costumer to fansubers.

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I believe they hurt and help the anime. They hurt them because they take money away from the creator but they help because they help promote the anime in foreign nations. In the end, people should buy or at least support the creator(s) by buying the manga or buying the dvds.

Wow, good job for stating the obvious, Captain Obvious! Haha, seriously.

In the end, let's face it: fansubs hurt the companies. Why do you guys think that companies such as FUNimation are hunting down fansubbers? Oh, that's right! Most people who download the anime don't want to buy DVDs -- they already have a good copy, so why buy (from an economical perspective).

Other media examples? Oh, how about the PSP and its "homebrew"? Why do you guys think that whenever a new PSP model comes out, Sony decides to make it harder to hack? Oh, maybe because they realize that when people hack their PSPs, the majority (enough to make Sony lose enough profit, obviously) think that it would be wise to download games instead of buying them (hence the reason why they hacked their PSPs).

To the people who use fansubs as "demos": bravo to you guys -- you guys are awesome! However, the majority of the people who watch fansubs don't buy the DVDs. If they did, then the companies would let the fansubbers do the "demo'ing" for them -- the companies would then rake in the amazing profits via the selling of the DVDs :)

Since everyone seems to just be stating the obvious

Person watches fansub - might buy dvd, merchandise

Person walks into a store and randomly buys a DVD, merchandise? Or puts down big bucks on the chance he/she will like a title from word of mouth and hype alone?

Second example is less likely to be the case, real anime fans are the ones that shell out money, and real anime fans watch fansubs, and do not wait months years for a release.

In Japan they watch the episodes for free, but many Japanese still fork out the cash on merchandise etc! Why do you think Gonzo covers up ecchi moments in broadcasts, so they can sell their uncensored dvds!

Gonzo probably wasn't a good example because of the whole bankruptcy thing lol.

I remember the first fansubs I watched was DNA^2 in 2000 on a vivd video format downloaded from a free FTP sites. This was a little earlier than the use of avi and few years earlier than bittorrents. That was 9 years ago, I don't even know how far fansubs go back with the VHS. What we know of the Anime industry in North America is that it grew over the past 9 years. During the same time, the number of fansub groups is pretty much limited to the amount of anime release that year. Although right now we have multiple groups per series but the affects to the industry had no greater difference.

I tend to believe that it was the fansub that created the market for the Anime industry. More offend than not, fans complains about how these Anime company butchered our favor animes. Just youtube 4kids you will know what I mean. If animes were left to these companies, I doubt that it will grow to what it is today.

In some cases, I think it may help Anime companies. Since the culture between the East and West is so different our taste for anime is also different. What is popular in Japan may not be popular in the U.S. Take Detective Conan (Case Closed in America) for example, one of the most cerebrated anime series in Japan. Right now it is running its 536th episode, has 13 movies, a live action OVA, it been featured in Japan's post Heroes and Heroines commemorative stamp series and it had been used to promote government policies.

What do the English speaking world thinks of Case Closed? We know that it had been cancel due to low ratings. I personally enjoy watching this series but I could of told them it was going to have low rating in America simply by monitoring Detective Conan bittorrent trackers. If they would use fansubs download as an indication on what to license, I am sure they will make wiser decisions.

Seems like everybody has already mentioned the pros and cons of Fansubs vs. Licensed series.

I believe there's a fortune to be made on anime merchandise, rather than the actual anime. Artbooks, figures, wallscrolls, oh my! I wonder what the cost of bulk importing would be... hmm maybe it's time to open a store!!

If I really love a series, then I end up buying the licensed copy (if it's available in the U.S.); but I usually wait until a box-set or collection is available. Same with manga, now that I think about it... oog I don't even want to think about the money I spent on manga, haha.

I think it help
as everyone can watch
and some may like the anime and buy their merchandise( Figure, Game, etc)

After watching Kurokami (Black God) on Bandai's Youtube Channel, I may have to rethink this. Kurokami release on Bandai Channel with sub title just as fast as fansubs. Their dub is a week later than the subs. Both Bandai's Channel and fansub's release date is very close. For every person that watch Kurokami on fansub, Bandai will lose ad revenues.

It all Depends really though from Economics point its probably hurting the Industry.
Well there is going to be a lot of what if's with this topic. It really all depends on the cases of what people are watching online and what they are watching online. Though from a pure economic stand point obviously it is hurting the industry being that people are more than likely not gonna buy the dvd's and are just gonna watch it online cause its free. So that is hurting the industry. Though on another hand I think this can be questioned. Cause I honestly wonder how much of the American profits for a anime released here go back to the original creator. Being the company has to keep some of the money for it's self. Though still because people aren't buying it and watching it free they are still hurting. It just varies in difference. Though at the same time yes it can be viewed as a good thing as some fan subs sub things that will never be released in America. Not to mention the even hard core fans who are willing to important merchandise from Japan. Not to mention you can have the good little fans here who demo a anime then go off skipping and purchase it because they love it so much. Though come on people reality check much? Economic Hardships? Free vs Pay? Which will the people do? Hmm . . .
I personally do prefer fan subs and try and buy the original series when I have money to and IF it comes out. (alot of the animes I watch like never come to the states) Honestly sometimes I think it would be good if there were some good fansubbing groups willing to go work for a company they would be getting paid to do something they like and then we could buy a anime with decent subs sounds like a win for everyone fantasy XP lol. . . it's never gonna happen though ._.