Vanilla is a product of Lussumo:
Documentation and Support.
With the globalization of anime, online distribution isn't the only place they're hurting, as they're also losing revenue to reverse-importers who wait and grab our 4-6 episode discs for less than half the price of a single disc of the local release.
There's nothing to 'buy'... I'm not moralising,
Amazon thinks I wrote books that I only turned out a foreword for
What do you mean exactly, and do you mean the local Japanese market or the exporter's market? Is it the distributors in trouble or the production studios or both?
I find it hard to believe that a market that's survived on its own in Japan for decades through various forms of economical crisis without significant support from exports is suddenly getting in trouble because of fansubbing.