ADV Spending $50 Million on Anime Network

According to a recent article in Forbes magazine, ADV expects to spend around $50 million in building the Anime Network to a break-even point in about three years. Although it may not sound like it, that cost is actually a bargain; the average cost to launch a new cable network is around $100 million, and some have spent as much as $500 million. ADV's costs are lower because it already controls massive amounts of anime content and doesn't have to go out and license new content exclusively for the network.

Anime Network is available as a video on demand service on some Comcast systems, has recently added VOD availability on Adelphia systems in Southern California, and has also recently signed its first deal to be offered as a regular cable channel on Insight systems.

An investment this size indicates a high degree of faith in the continuing demand for anime programming in the U.S., especially given the entrenched competition from outlets such as Cartoon Network, which is widely available and has made anime an important portion of its programming.