The ADV Films panel was hosted by David Williams and Janice Williams. At the start of the panel, they both welcomed attendees, and informed them that the panel would be a Q&A session. Unfortunately, Williams did not have any title announcements to make at the moment.

The questions began with a guest who wanted to know if ADV had plans to license the Dirty Pair TV series. Williams replied that he's a huge Dirty Pair fan and would love to handle the series. Unfortunately, ADV Films has no plans to license the series.

Another guest inquired about ADV's Blu-Ray strategy. In a nutshell, Williams replied, they don't have one. Currently, no ADV titles have a Blu-Ray adaptation in the works. Williams offered his opinion on the situation, while stating the disclaimer that his opinions don't match with ADV, Matt Greenfield, or anybody else at ADV Films. Williams believes that, at the moment, since anime is a niche market, Blu-Ray just does not have enough critical mass to be profitable, unless it's a huge title. The Blu-Ray market is growing, but Williams is concerned that it's not growing fast enough. He fears that the market may turn out to be like Laserdisc in the long run. Williams admits that he doesn't own a Blu-Ray player, but he does have an HD-DVD player, which he acquired during the post-war fire sales that ensued when HD-DVD bowed out.

Janice took over at this point, and explained that in the past, ADV tried to schedule Blu-Ray releases in the past, but Best Buy rejected solicitations. Unfortunately, Best Buy rejected the titles, which stopped Blu-Ray plans in their tracks. With the reality of the market, if a seller like Best Buy rejects a title, it will be difficult to profit from it. Janice continued, explaining that, until Best Buy demands all anime to be on Blu-Ray, then ADV will not be working with the format.

The next attendee brought up an inquiry about the "Stack Packs" that collections are currently packed in. He expressed concern that ADV was packing either too few, or too many discs in the case, which can cause indvidual discs to break free of the hub. The attendeed asked if ADV was aware of the issue, and what they were doing to fix it.

Janice answered first, explaining that the switch to stack packs was made for economic reasons. It's cheaper to use stack packs over other packaging, and ADV is aware of the issue. They've devised an interim solution that does work, though it's not quite as ideal as they wish. A foam insert is inserted into the case of newer cases, which prevents the discs from moving in the case. Janice continued, explaining that ADV would be using a new type of stack case for sets of five of fewer discs. The new packs have a "seal" that tightens to hold the discs in place.

David explained that ADV used to use "paged" cases that would hold the discs securely. However, people would pick the case up, shake the case, and hear the pages rattle, which gave an impression that the discs were loose. Apparently, the paged cases received a lot of returns, which led to ADV's decision to use stack packs.

The next guest asked if ADV was planning to license Tetsuwan Birdy: Decode (Birdy the Mighty: Decode). David replied with his trademark answer: "I can neither confirm nor deny."

The next question revolved around ADV's work on Mermaid Melody. Specifically, does ADV have plans to release the title? Janice gave a short answer of "no." ADV did produce a dub for the series, but it was a "work for hire" situation, in which another licensor hired ADV to produce it. ADV threfore has no control over the title, or its release.

The following guest asked about ADV losing a "whole lot of licenses" to FUNimation recently. David Explained that the only real loss on that level was about a year ago, when Sojitz ended its relationship with ADV.

The next question revolved around FUNimation's increasing share in the market as a whole, to which David and Janice both said "Congratulations!" David explained that he has friends in all of the major companies and that he's happy to see them succeed.

Another guest asked about ADV's treatment of Clannad, which was a subtitled-only release. Janice cleared the air and stated that Clannad was a work-for-hire project for Sentai Filmworks. ADV did not release the title themselves, so they had no say in the title's treatment. She continued, stating that Sentai is happy with the series' performance, so consumers can expect to see more subtitled-only releases from Sentai in the future.

The next question focused on 5cm Per Second - specifically, what happened to the license. David explained that it was one of the titles that ended up being taken by Sojitz in the split.

Things took a more serious turn when an attendee asked how ADV would weather the current storm - how they would survive the current financial situation. David explained that, no matter what happens in the industry, Matt (Greenfield), Janice, John (Ledford), and himself will always be in the industry, because it's their passion. He explained that he's starting to see signs that the economy is improving. Sales are starting to pick up, even though things are still a bit tight. He continued, saying that any company surviving today needs to be nimble and able to change with the times, while also able to manage costs.

Another guest piped up, asking if ADV had plans to license End of Evangelion, since Manga let the rights expire. He continued, asking if ADV had plans to release all of its VHS titles onto DVD. On the DVD front, David explained that contracts were made for VHS and VHS only. When DVD hit the market, the Japanese demanded that the contracts be re-negotiated, since DVD is considered a separate medium. In regards to Evangelion, he just smiled and repeated "I can neither confirm nor deny."

The next guest asked if ADV had a specific strategy for digital distribution. Janice explained that they do have a strategy in place, and that ADV's titles were available via a number of sources, including the XBox Live Marketplace, iTunes, and The Anime Network. She continued, explaining that ADV plans to expand its online offerings in the future. David interjected, explaining that he expects the digital sector to expand immensely, now that the average consumer can purchase a TV with internet capabilities, offering immediate access to sites like Youtube and Hulu. Because of this, David explained that he sees a possibility to market more niche titles, since digital product is cheaper to acquire and distribute than DVDs.

Another attendee asked about the shortening gap between American and Japanese releases. David replied that more and more shows are kicking out fairly quickly. He cited FUNimation's simulcasts, and how he saw some of the titles close to two years ago, when they were in planning stages. A lot of the titles that weren't being licensed when they were in planning are starting to be picked up now.

The next question focused on how ADV selects titles for the market. Specifically, does ADV have plans to ask the users what they want? Janice explained that they've done polls in the past, but they observe things far more than they outright ask. She explained that ADV members read forums, keep an eye on what users are talking about, and look for cosplayers at conventions, among other things. At convention booths, they try to keep an eye on what consumers are picking up and buying.

Another guest asked if ADV was planning to cut back its sales forecasts due to Best Buy's decision earlier this year. David explained that he hasn't seen any cutbacks. He explained that Best Buy wasn't cutting back its stock. Instead, Best Buy was cutting anime in stores where anime didn't sell, and they were moving the product to stores where it does sell. Best Buy wasn't reducing its buying on the whole, even though a number of their stores wouldn't carry anime anymore.

This was quickly contested by a guest who explained that her local store was eliminating anime from its stock. David quickly rebutted her, explaining that sales were being made up for in other stores.

The next question focused on ADV's live-action science fiction line. Specifically, did ADV have plans to release more? Janice said that it would be difficult to do so, since their live-action licenses were acquired at a time when most companies didn't do their own DVD authoring (but do now). David said that he'd love to have another Andromeda or Farscape in ADV's catalog.

Another attendee asked if David and Janice could compare the fall of the anime market with the bursting of the comics bubble. David said that he actually likens the situation to the video games crash of the 1980s. So many companies were putting out so much product that the market just collapsed under its own weight. Too much hit the market too quickly, and the market was eventually unable to support itself. He said that [the bust] was a necessary evil, though: the anime market needed to constrict in order to survive. He hopes to see the market get back on its feet and start growing again in the future.

I had the opportunity to ask the next question - Since the anime bust of 2006, have licensing costs fallen as a whole, and was ADV still seeing the bidding wars that symbolized the anime boom? David replied that license costs have dropped somewhat. The bidding wars have become a thing of the past, and the feuds that many of us saw and speculated on calmed down immensely. The market as a whole contracted, since everybody recognized that a viable industry can't be supported on the expenses that the companies were racking up.

The next guest asked about upcoming titles from ADV. Janice explained that the titles they know about haven't been announced yet. However, some former-CPM titles are coming out, such as Now & Then Here & There, Grave of the Fireflies, and The World of Narue - all due for a July release.

Another attendee inquired about ADV acquiring titles that they do not intend to dub. Janice explained that ADV's released sub-only titles in the past, and that it depends on the show, and whether a dub will bring in more viewers. David took over, and explained that the age of the show could also be a factor, since older titles did not have split voice and effects tracks.

The next guest asked about ADV's financial footing, since the company as a whole has been quiet. David stated that neither he nor Janice were qualified to talk about that aspect of the company. Neither has access to the books.

Another guest asked for a reaction on recent Media Blasters statements that Best Buy was pressuring the company to release more boxed set titles. Janice explained that the pressure doesn't come specifically from Best Buy, but rather the market as a whole. Consumer buying patterns have changed, and people prefer to wait for boxed sets, and as a whole forego buying singles. The guest continued, saying that he found it frustrating to only be able to buy a few volumes out of a whole series. David explained that many stores only buy the first volume to gauge interest, and will not hesitate to cancel their orders if a title doesn't sell a certain number of copies in a given time frame.

The next guest asked about whether ADV noticed an actual production drop for anime in Japan. Janice explained that it's hard to say whether there is a noticeable drop. They check the TV schedules, and look at the newest material. David explained that some studios even send ADV pre-production materials for titles, which could be as little as a short descriptive blurb, and a few pages of character art. Janice hasn't noticed a drop in production yet, though she did note a sharp decrease in "A" titles (big sellers) on Japanese television. Titles like Evangelion and Haruhi are not as common as they were ten years ago.

It was my turn to ask another question at this point, to which I asked if ADV had plans to cross-promote their City Hunter titles with the upcoming Fox series. David expressed surprise at the news, stating that he hadn't heard about a live-action TV series.

The next guest asked whether Hollywood adaptations of anime titles were actually good for the market. David said that he hadn't thought of it as good or bad. He said that he thinks it's good for the market in general, but it's bad for fans, since it takes a few titles off the market completely. There is a short window to acquire titles for US release, before fans move on to the next big thing. The longer it sits in Japan, the lower its sales potential becomes. The next guest continued this line of thought, as he asked about Battle Angel. David simply said "Talk to Cameron! I have no control over that!"

The panel continued with a question about download-exclusive titles, a la FUNimation's release of Phantom. Janice simply said "never say never!" David said he likes the idea of using downloads to serve the niche market. However, he's a collector by nature, and prefers to have the physical item on his shelf - which generated applause. He explained that he bought an e-book reader, and he enjoys reading titles that way, but he would rather have the real thing. He praised O'Reilly because they offer a physical book, then they offer the e-book for a few dollars more. For anime, he explained that he likes the idea of streaming titles but, at the end of a title's run, he wants to be able to package a show in a collector's set with extras, specials, and the like.

The next attendee posed a question about the impact of illegal downloads, such at Bittorrent. David explained that downloading has indeed impacted the industry. However, the major woes of the industry come from other factors, namely the glut of titles coming out every month. The market jumped from 4 to 5 titles per month to around 30. It's good for the fan because it gives him a choice, but it's bad for the industry as a whole.

The questions shifted back to anime-based movies, as the next guest asked whether the quality of anime-based titles had a bearing on the market. David said that if something doesn't perform as well as it should, it will affect the market as a whole. He explained that Speed Racer's theatrical flop had an impact on other anime-based films in production at the time, but he couldn't pinpoint a specific example of an anime title that suffered from a bad anime-based movie. He continued, saying that he has a knack for knowing what people like. It may not be something he likes, but he knows when something will appeal to the market. David cited Gantz, which he recommended despite not being a fan of ultra-violent shows.

The next question tied to the increasing sales topic, mentioned earlier. David explained that he runs a small business on the side, and that he is seeing sales increase in general. He said that he thinks the economy is bottoming out, and that the market is getting ready to pull out of its current rut.

With time running short, there was time for two more questions. The first question focused on Elfen Lied, namely, why were the OVAs sold separately from the TV series? Janice explained that the OVAs weren't made until after the TV series was licensed, so they were unable to include the OVAs without renegotiating the contract. This would have delayed the process, and led to a later release.

The final question of the day inquired about Yen Press's releases of Yotsuba&! The attendee wanted to know if the license lapsed, or if some other outside circumstances had effected the license. David said that he simply did not know, since he is only peripherally connected to ADV Manga. He never really kept up with that division.

David closed the panel by thanking everybody who attended, and invited attendees to ask further questions at his booth in the dealers' room.