It's the kind of penny-wise and pound-foolish behaviour that happens in any large business. As you say, the productions cost dwarf the costs of subtitling so much it is ridiculous. Every unique frame of that show was literally hand drawn and colored by someone, to say nothing of all the writers, the voiceover, the marketing, etc. To refuse the light penny-shaving required to present the final product in a good light is completely non-sensical. If you have so little confidence then why are you licensing and paying for bandwidth to show it?
However, there is somebody in charge of subtitles, and they don't really care about overall business outcomes. So if they can reduce the budget of their department by squeezing typesetting, they win on an objective metric at the cost of a subjective (ie ignored) one.
While it's true crunchyroll has a lot of the anime market, there are more streaming platforms than ever right now, and people don't just consume a fixed amount of legal anime episodes per week, forever unchanging. If they have it in their head that they cannot gain or lose subscribers, that's extremely short-sighted.
I wonder if it's just a limited number of people who could do this. There was a time when nearly all the anime in my country was dubbed by 2-3 people (and why all the anime had the same lame voices). Maybe if they were paid the same rates as proper voice actors, the quality and people willing to do so would go up.
Presumably the company translating and subtitling anime is licensing the show, not producing it. So subtitling and translation costs for a business like Crunchyroll would be most of their production budget (assuming licensing fees are not egregious).
idk but I think it's possible that baseline licensing fees are/were way lower than imagined. The entire rest of the world except Japan, in many anime type contexts in Japan, are still considered the singular entity as "the kaigai". Export sales are just coin rooms.
Or, this could be reflection of that "the kaigai" mindset rapidly changing causing prices to skyrocket. Anime is exclusively made in Japan(with outsource efforts from all over East Asia, but always concentrated back into Japan), so there's no competition. Zero competition over nonzero demand -> +Inf price.
Either ways, it does feel that licensing model could be key to understanding this.
However, there is somebody in charge of subtitles, and they don't really care about overall business outcomes. So if they can reduce the budget of their department by squeezing typesetting, they win on an objective metric at the cost of a subjective (ie ignored) one.
While it's true crunchyroll has a lot of the anime market, there are more streaming platforms than ever right now, and people don't just consume a fixed amount of legal anime episodes per week, forever unchanging. If they have it in their head that they cannot gain or lose subscribers, that's extremely short-sighted.