I can understand why some people get confused about this, since they don’t necessarily understand the complexity of the licensing business or how the cable companies and networking business operates. You aren’t paying only for the content, you’re paying for how that content is delivered.
That’s not really possible for the issues that slickwolfie described. The blockbuster analogy is a good one since the distribution channels for VOD and Online are completely different.
You’re not necessarily paying for the content alone, you’re paying for how the distribution channels are granted for Anime Network, ie. cable/satellite companies getting a share of the pie for granting AN access to their networks.
When you pay an SVOD fee for Anime Network VOD on cable or satellite, that money helps pay for cable services. When you pay for Anime Network Online Player it helps pay for Anime Network’s own services, bandwidth, servers, storage on Anime Network. They are two different things entirely. One is handled by your cable company and one is handled here by Anime Network.
Second, the amount of shows on the Online Player are significantly more. On Cable you’re paying for the Cable company to grant access to Anime Network, for 10-30 hrs of content there at a time. On Anime Network Online Player the amount of content is much more at a time since Anime Network is paying for that itself. Completely separate.
The production and employees delivering both contents are also different. What you pay for Cable VOD doesn’t necessarily pay the department, staff, production, network, infrastructure that handles the Online Player etc. enough to sustain itself.
Most importantly, one has to remember licensing costs. To get a lot of these shows online requires paying Japanese companies more money. Digital distribution costs and broadcasting licenses are not the same thing. For ADV Films and Anime Network to be able to bring these shows Online requires monetization of the cycle. Old contracts had to be redone/talked over again etc. When a lot of these shows were produced there were no digital distribution rights granted to US companies. There are also some cases where Japanese companies (understand that Japanese business is very oldschool and conservative) do not want to grant digital rights no matter what either. So the fact that Anime Network was recently able to get so many to Premiere Online recently is rather big, big news around here. But… these things do need to pay for themselves.
It’s a very complex chain and business model.