Project Report On MARKETING STRATEGY OF INDIAN ANIMATION INDUSTRIES

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THEDEGREE OF BACHELOR OF BUSINESS ADMINISTRATION 2012-14 UNDER THE GUIDANCE OF JATIN VAID FACULTY, MAIMS Submitted by: SHILPI JAIN
14061101711 3rd semester

Maharaja Agrasen Institute of Management Studies

Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086
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STUDENT DECLARATION

This is to certify that I have completed the Project titled MARKETING STRATEGY OF INDIAN ANIMATION INDUSTRY under the guidance of JATIN VAID in partial fulfilment of the requirement for the award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

SHILPI JAIN

CERTIFICATE

This is to certify that the project titled MARKETING STRATEGY OF INDIAN ANIMATION INDUSTRY is an academic work done by SHILPI JAIN submitted in the partial fulfilment of the requirement for the award of the degree of Bachelor of Business Administration from Maharaja Agrasen Institute of Management Studies, Delhi, under my guidance & direction. To the best of my knowledge and belief the data & information presented by him/her in the project has not been submitted earlier.

JATIN VAID (Faculty, MAIMS)

ACKNOWLEDGEMENT

I would like to extend my heartfelt gratitude to many people who helped and supported me in successfully completing this project. I wish to thank Dr. N.K. Kakkar (Director, MAIMS) for his support and guidelines for preparing this project. I would like to thank to Asst professor, Mr, Jatin vaid for guiding me during the entire part of this project and imparting me with the knowledge and skills necessary to make this project successful. Thanks to the people who provided me the useful and necessary information needed for this project. I would also like to thank my family, friends and well-wishers.

- Shilpi Jain

EXECUTIVE SUMMARY
Indian Animation Industry is experiencing great boom and now has become a magnet which is attracting big shots of Animation Industry from all over world. The new upcoming Indian Cartoon characters like Hanuman, Krishna, Tenaliraman etc are not only satisfying the thirst of tiny tots (5-12) for entertainment but also increasing their quench to know more and more about their culture, religion and civilization. Moreover, these India owned cartoon characters are showing growth of Animation Industry of India. But still Indian animation industry is at very infant stage. Global Animation industry is $ 80 billion industry, where as Indian animation industry is just $ 950million industry which shows how small Indian industry is. The major trend which is going on in this industry is that right now it is working for global giants in animation sector instead of standing its own feet. Global animation giants like Imax, Walt Disney and other companies are getting into contracts with Indian animation studios to create cartoons. This shows that currently Indian animation industry is working more as outsourcing hub instead of developing our own market. So, I decided to study the Indian Animation Industry with certain objectives: 1) To analyze the various factors which are making Indian Animation Industry a outsourcing hub. 2) To study the impact of various factor which are important to make Indian Animation Industry self reliant and self sufficient. 3) To study the strengths of & opportunities available to Indian Animation Industry. The study was conducted in Mumbai. The study was conducted by professionals of this vast industry like animators, creative directors, cartoonists etc. The survey findings indicated that there are some problems which are not allowing this industry of India to grow and stand on its own feet. These problems are lack of skilled professionals, less investments, lack of support from government. But still this industry is growing at very fast speed. As it will grow it will definitely overcome all these stones it its way and will soon have many milestone to its credit. In the view of above, the recommendations for supporting this industry in India are presented in this report.

LIST OF TABLES

TABLE NUMBER 1. 2.

TOPIC
Channels dedicated to kids animation Growth of Animation industry

PAGE NO.
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LIST OF CHARTS

CHART NO.

TOPIC
Marketing strategy process Animation Entertainment chain Revenue distribution of the Animation Swot analysis of Animation Industry

PAGE NO.
8 18 39 40

1. 2. 3. 4.

CONTENT
Student declaration..i Certificate from Guide.ii Acknowledgementiii Executive Summary..iv List of Tables.v List of charts.vi Page no. CHAPTER -1 INTRODUCTION.1-24 1.1 Purpose of the study 1.2 Research Objectives of the study 1.3.1 1.3.2 1.3.3 Research Methodology of the study Research Design Data Collection

CHAPTER -2 ABOUT THE INDUSTRIES25-34 CHAPTER -3 FINDINGS AND ANALYSIS...35-40 CHAPTER -4 SUGGESTION..41-44 CHAPTER -5 LIMITATION AND CONCLUTION.45-52 Bibliography..53 Evaluation / Attendance Sheet.54 Schedule for Project Completion.56 8

Chapter-1

INTRODUCTION

1.1

PURPOSE OF THE STUDY

These are just several characteristics that vary across animation and accordingly, may influence the impact of such media on childrens development. We need descriptions of the way children of different ages use new media in the context of their relationships with others and social institutions. In this study, we offer a view of development as shaped by processes of media socialization. Within that framework, we discuss the special role of animation in development. We draw from varied theoretical backgrounds to examine both the potential and actual evidence of how animation influences children.

1.2

RESEARCH OBJECTIVES OF THE STUDY

To promote competitive strength for an edge to Indian animation industry through performance, seminars, talks, workshops and through design, production, launch, distribution, display etc. of the creativity of the animation and design artists, in particular young professionals, and to help and achieve a high degree of proficiency in various types of Indian animation art forms.

To encourage and secure the creation, establishment, management and/or maintenance of animation-related intellectual property.

To provide a larger platform for production houses to do business and to promote commerce in general and in particular to promote the Indian Animation Industry, allied industries and trades, including the interests of Animation Studios, Video Game Developing Studios, Freelancers, Animators, Training Institutes, learners and of all other persons connected with the Animation industry.

To encourage the industry to use all forms of animation techniques and technology to form a big market place for the world.

Promotion of Interests: To promote and assist a spirit of fair competition amongst the various classes of persons engaged in the Animation industry and its various entities and to maintain and encourage researches in respect of the making or

production or in any other matter in which the Society may be interested by granting stipends, bonuses, subsidies, scholarships, passage moneys, rewards and prizes and either for purposes or carrying on advanced studies in this country or for the purpose of proceeding to any foreign country with a view to carrying on research work or specializing in processes of manufacture or studying methods of manufacture or for any other purpose tending to further the interest of the Society or the Industry

Encourage all forms of Animation techniques: To encourage the industry to use all forms of animation techniques and technology to form a big market place for the world.

Forms of contract and deals: To provide standard forms and assist in making contracts and deals in order to promote responsible practices and repress malpractices.

1.3

RESEARCH METHODOLOGY
Methodology

The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process, which identifies and defines problems, within specified boundaries. It employs well-designed method to collect the data and analyses the results.
Research type: Exploratory Research The study is exploratory since we have limited knowledge about the area we will do research in. The study is also descriptive since we are doing a study with already existing information. Research Approach When conducting research there are different ways to address the topic. I will present and give the reason for the way we chosen to approach our study. My study is deductive since our frame of reference is based on existing theories. I based my empirical data studies on theories 11

and used them to form a base on how to analyze the collected data. In this study I chose the qualitative approach in order to be able to deal with research problem and research questions stated for the thesis, the qualitative approach is suitable since I want to obtain a deeper understanding on how factors induce companies to use celebrity endorsers in their marketing communication, and how the risks involved can be described and measures to decrease them. A quantitative approach is not suitable because I dont want to analyze the data in numbers. Therefore a qualitative study is the best approach for me when describing the collected data in words.

Research Design
In our study an experiment was not suitable strategy since we dont have control over behavioral events. Survey is not suitable either because we dont use the questions what, where, how many or how much. Archival records are not suitable either since we are not answering question such as how many and ho w much. We are looking at present time therefore history strategy is not suitable. The case study is generally superior when answering how and why questions about a specific topic and when control over the relevant behavior is not required and when research focus is on contemporary events. We will use a case study as research strategy because it is the most suitable. By this we think that we will be able to obtain a deeper understanding of our research area. The research is also based on present occurrences, which are motives to using case studies.

Data Source Market research requires two kinds of data, i.e., primary data and secondary data. In dealing with any real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that are appropriate. Primary Data: The data collected by the person himself/herself for personal use with the help of questionnaires, pie-charts, graphs, etc. This set of information is not available to anyone before the person collects it himself/herself.

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Secondary data: These are those which have already been collected by someone else and which have already been passed through the statistical process. I will collect it from the sources like internet, published data etc. This project is based only on the secondary data.
Data Collection I had to choose a mix of Documentation; mine own observation; and physical artefacts.

MARKETING

1. INTRODUCTION
Marketing is the process of communicating the value of a product or service to customers. Marketing can sometimes be interpreted as the art of selling products, but selling is only a small fraction of marketing. Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and managing customer relationships in ways that benefit the organization and its shareholders. Marketing management is the art of choosing target markets, as well as acquiring and keeping customers through providing superior customer value. There are five competing concepts under which organizations can choose to operate their business; the production concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept. The four components of holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially responsive marketing. The set of engagements necessary for successful marketing management includes, capturing marketing insights, connecting with customers, building strong brands, shaping the market offerings, delivering and communicating value, creating long-term growth, and developing marketing strategies and plans.

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2. CONCEPTS OF MARKETING
We have defined marketing management as the conscious effort to achieve desired exchange outcomes with target markets. Clearly, marketing activities should be carried out under philosophy of efficient, effective and social responsible marketing. There are five competing concepts under which organizations can choose to conduct their marketing activities:

Production
A firm focusing on a production orientation specializes in producing as much as possible of a given product or service. Thus, this signifies a firm exploiting economies of scale until the minimum efficient scale is reached. A production and orientation may be deployed when a high demand for a product or service exists, coupled with a good certainty that consumer tastes will not rapidly alter.

Product
A firm employing a product orientation is chiefly concerned with the quality of its own product. A firm would also assume that as long as its product was of a high standard, people would buy and consume the product.

Selling
A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such. Consequently, this entails simply selling an already existing product, and using promotion techniques to attain the highest sales possible. Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a product that is in high demand, with little likelihood of changes in consumer tastes that would diminish demand.

Marketing
The 'marketing orientation' is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans
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around the marketing concept, and thus supplying products to suit new consumer tastes. As an example, a firm would employ market research to gauge consumer desires, use R&D (research and development) to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure persons know the product exists.

Holistic Marketing
The holistic marketing concept looks at marketing as a complex activity and acknowledges that everything matters in marketing - and that a broad and integrated perspective is necessary in developing, designing and implementing marketing programs and activities. The four components that characterize holistic marketing are relationship marketing, internal marketing, integrated marketing, and performance marketing.

3. STRATERGIES OF MAKETING
The business environment today is more dynamic than 50-60 years ago. People are more stressful and both people and companies seek new challenges. These changes during the last century have led the business to a new direction and innovative strategies. Strategy is a game plan designed by every business firm for achieving its goals. Marketing strategy is obviously a game plan designed by the marketer for increasing its sales and market share for higher profitability and to retain customers continuously. A marketing strategy combines product development, pricing, promotion, channel, and relationship management. Over the years, with the growth of globalized environment, the ever increasing competition among the marketers and highly volatile business environment both nationally and internationally, has led to the dwindling of market share and rate of profitability. Marketing in such an environment is called the Red Ocean Marketing Strategy that involves the tactics of reducing price and spending huge amount on advertising to capture customers from each others domain. Guerrilla marketing in present times corroborates this view point. Whatever strategies are adopted, the modern organizations are customer oriented organizations which keep the customers on the top of a pyramid. Customers today are, infact, more
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educated and informed than ever, and they have the tools to verify companys claims and seek out superior alternatives. MARKETING STRATEGY PROCESS cc

Strategic situation analysis Designing marketing strategy Impleminting & managing marketing strategy Marketing program development

Chart: 1 Marketing strategy process

The marketing strategy analysis, planning, implementation and management process. The strategic situation analysis considers market and competitor analysis, market segmentation, and continuous learning about markets. Designing marketing strategy examines customer targeting and positioning strategies, marketing relationship strategies and planning for new products. Marketing program development consists of product, distribution, price, and promotion strategies designed and implemented to meet the value requirements of targeted buyers. Strategy implementation and
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management consider organizational design and marketing strategy implementation and control. Traditionally the marketing strategy adopted by business organizations is to compete in the existing market space. Competition based red ocean strategy assumes that an industrys structural conditions are given and that firms are forced to compete within them. In the red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known. Here companies try to out perform their rivals to garb a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Cut throat competition turns Red Ocean bloody. Each business organization tries to attract customers from the domain of the other firms. An important implication of ROMS is guerilla marketing which involves unnecessary expenses on advertising the products or services. Sometimes it goes against the marketing ethics. In this context, a case of HUL and P&G-- The Two FMCG Giants seems quite consistent.

ANIMATION
The world of animation is a world where reality meets imagination, where dinosaurs walk across silver screens, and where mind-blowing web sites greet the cyber voyager and take him on a journey of discovery. Animation is the art of capturing a series of individual movements, whether on film or in digital form and replaying them in rapid succession to give the illusion of movement. It can be achieved using images drawn on a paper or other medium, with clay figures or papers puppets or using computer generated images. Animation in India A recent study conducted by Andersen Consulting states that the Indian animation industry currently pegged at $550 million is slated to clock a growth rate of 30 per cent annually in the next three years and is expected to reach $15 billion by 2008. In the next three years India would receive more than $2 billion worth animation business, according to the study.
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Meanwhile, Nasscom estimates the current global animation market to be worth around $45 billion and expects it to jump to between $50 billion and $70 billion by next year. It also states that India could use 3 lakh professionals in content development and animation by 2008, up from 27,000 three years ago. The international animation industry is increasingly looking eastwards as the costs of real sets, studio space and outdoor locations skyrocket. India has one of the biggest film industries in the world as well as a reputation for low-cost high-quality software engineers. These are some of the reasons driving optimism in this sector. The Indian advertising industry has actually pioneered the use of animation in India. Advertisements are increasingly using animation to capture viewers imagination. Also animations are touted to be the next big thing on the Internet as soon as the bandwidth constraints will be resolved. Another area where animation has a lot of scope is in the high-end game technology. This has a huge market globally, requiring both software and animation (creative skills). Some of the leading animation design studios in India are Pentamedia Graphics, Crest Communications, Unilazer, Toonz Animation India Ltd., Magic Shop, Universal Studios, UTV Toons, Western Outdoor, Digital Canvas, ZICA and Shri Adhikari Brothers. On a growth track Apart from the local market, India is fast emerging as an important destination for outsourcing assignments from the global studios such as Walt Disney Pictures and Cartoon Network. India is increasingly presenting itself as a favourable destination for the animation industry, particularly in post-production and 3D content development activity. This surge in demand has spurred significant growth in the visual effects industry and has created high paying jobs for hundreds of digital artists and other technical specialists. There is also potential for the country to become a global animation hub.

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Animation as a promising business proposition is a comparatively recent field of serious interest in India. India has seen at least 75 large animation post-production studios coming up in less than five years. Indian animation studios are now marching ahead in the arena of creating original products and establishing their own intellectual property rights. In this area India has several advantages not only over China but the rest of the world with its rich history and culture of storytelling along with high quality artistic capability. In India a new animation revolution is underway with Generation Next being exposed to world-class animation from TV channels such as Cartoon Network, Disney Channel, Hungama, Pogo and Animax. This is also creating a domestic market for Indian animation products. History The first animated film from India is considered to be "Ek Anek Aur Ekta", a short traditionally animated short educational film released in 1974 from Doordarshan's Film Division. Doordarshan is a government run public television service in India. The film is presented as a fable meant to teach children the value of unity. After its success, more shorts were produced by Doordarshan. This was the first time that original animated films from India were broadcast on national television in Hindi. The first Indian animated television series is Ghayab Aaya, aired in 1986 and directed by Suddhasattwa Basu. The First Indian 3D + VFX was done for television series "CAPTAIN VYOM" by MAYA ENTERTAINMENT LTD. The first Indian 3D animated film is Roadside Romeo, which was a joint venture between Yash Raj Films and the Indian division of the Walt Disney Company. It was written and directed by Jugal Hansraj. Market The Indian animation industry was estimated at $354 million in 2006 and was forecast to reach $869 million by 2010. Animation in India is currently riding on two key
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factors - a large base of highly skilled labour, and low cost of production. While the industry is gaining prominence steadily, several important factors such as the government's role in supporting the animation industry, and producing original content locally. In 2009, the state of the animation industry in India, was growing at a CAGR of 30%, is estimated to reach US$ 1.5 billion by 2015. Some of the other estimates of the NASSCOM report on animation indicate the following:

The global entertainment market will generate a demand for animation production services of the order of US$ 37 billion by 2003

In the non-entertainment segment the demand for animation production services will touch US$ 14.7 billion by 2015

The global film/TV program production market will create a US $ 17.5 billion revenue opportunity for animation production houses

The Indian gaming industry was estimated at nearly $48 million in 2006 and is expected to cross $424 million by 2010.

Pune is competing with Hyderabad and Mumbai to be the country's animation hub. With the sector facing severe human resources shortage, more and more studios are increasingly venturing into animation training. Chetan Deshmukh, an animator and special effects expert, recently shifted his base to Pune from US. He has worked on Hollywood movies like Chicago and Shanghai Knights. The Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), a premier body of industries in and around Pune region has launched a programme to catapult Pune as a global hub for animation and gaming. It has recently formed a group of professionals, training institutes and celebrities to implement the initiative, with filmmaker Amol Palekar has as their brand ambassador.

Animation Institution

Asian Academy Of Film & Television DSK Supinfocom

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Frameboxx Animation & Visual Effects Image College of Arts, Animation & Technology MAAC (Maya Academy of Advanced Cinematics) National Institute of Design, Gandhinagar The Animation industry in India is set to witness an exponential growth. Indias role as a significant destination for outsourcing of works related to animation is a fact. But a larger fact that needs immediate attention is the strength of the Indian animation market to produce, create and develop exceptional animation works and workers and their strong acceptance in the Indian markets itself. Today, there is an increasing section of audience, appreciators across age groups, that is emerging and interested in works related to animation. A case in point is the recent release The Adventures of Tintin. Based on a comic book, the 3D-film was lauded by a wide range of audiences in India and abroad, too. Experts believe that the potency of an animation film in the Indian film market is not emphasized strongly despite the viability and immense business sense of releasing animation films. So, what are the factors that have driven the growth of the Indian animation industry? Why do films like Avatar, Hanuman Returns and Roadside Romeo command a huge audience despite stiff competition from the usual Bollywood market? We explore the opportunities, size and the factors that make the Indian animation market one of the most sought-after arenas. Indias first work of animation was a short educational film released in 1974. It was called Ek Anek Aur Ekta. This was telecast on national television in Hindi and was produced by Doordarshan. Then came the first Indian animated television series called Ghayab Aaya, which was aired in the year 1986. The first Indian 3D animated film Roadside Romeo was a joint venture between Yash Raj Films and the Indian division of Walt Disney.

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After this film, several producers jumped onto the bandwagon owing to the encouraging response received by these animated films and today one of the recurring themes used in an animation film is Indian mythology and culture. Experts believe that the Indian animation industry is set to clock stupendous growth in coming times. Animation, which encompasses gaming, web designing, creative content, television commercials, games for internet, personal computer and consoles, has a strong and wide reach across sectors. According to a report by auditing firm Pricewaterhouse Coopers on the Indian media & entertainment industry, the animation industry is estimated to have been around Rs.1,100 crore in the year 2006 and it is expected to grow at a rate of 22% to reach Rs.5,400 crore at the end of 2014. This is just over 2% of the size of the worlds animation industry and hence, there is tremendous growth potential of the industry. The animation industry can be broadly classified into six categories: 3D animation, 2D animation, gaming, multimedia, web designing and visual effects (VFX). Here is an explanation of these categories:

3D Animation 3D animation entails the creation of moving pictures in a 3-dimensional digital format. It is achieved by sequencing consecutive images or frames in a slow progression of steps. It is recorded with the help of a virtual camera. Then the output is transferred to video by a rendering engine to make a full-fledged animated work

2D Animation 2D animation also involves the creation of moving pictures but in a 2-dimensional space. This can be achieved through a traditional computerized animation software.

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Gaming This is one of the flourishing segments in the animation industry. The extent to which gaming has struck a chord across age groups can be found in the sale of gaming consoles like the Playstation or Xbox. Hence, this category would ensure that the animation industry prospers and grabs incremental customers. Games for personal computer, Internet, consoles and quite understandably mobile phones, have added to the business sense of this category. Many a player has ventured into this category considering the high degree of making huge revenues and a short breakeven period.

Multimedia

Multimedia means using multiple media. These include fine arts, entertainment, commercial art, journalism, media, designing and software services. These media come together to offer a rich mix of informative products. A case in point is the illustrations, designing and sketching of original photographs in media like newspapers.

Web Designing Web designing entails creating web pages. Web designers use graphic design skills for the purpose of layout and presentation in different types of media. Software programmes such as Adobe Photoshop and Quark Express among others have added to the charm of this category.

VFX Animation and multimedia specialists also work with Visual Effects (VFX). A chief difference between animation and VFX is the interval of time. While animation is
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used for a prolonged period, VFX is for a small period of time with a smack of animation.

OPPORTUNITIES There is enough scope for animation companies to grow in the Indian entertainment industry. There are two factors that would drive the growth of the animation industry: high-skilled workers and low cost of production. According to a Nasscom survey, gaming and animation are no longer sunrise industries. Instead, they have started taking wings in different directions. The survey says, While the Indian animation and gaming industry is still in the nascent stage, the sector is expected to show significant growth in the near future as global outsourcing within the market takes off. The Nasscom survey zeroed in on three key factors that are responsible for the growth of the Indian animation and gaming industry. It said that the cost competitiveness factor of Indian workforce plays a crucial role in the Indian animation industry. The survey also predicts that most mobile companies have realized that the model of coproduction is quite feasible and lucrative. At present, most Indian companies are graduating from traditional outsourcing to coproduction model. The production of the animation film Alpha and Omega by Crest Animation is a case in point. Besides this, experts believe that custom content development would be a large segment, going forward. 3-D mobile games are also gaining popularity and it is expected that the future of the animation industry lies in this segment. Another study by industry body Associated Chambers of Commerce and Industry of India (Assocham) and Deloitte shows that the custom content development and education segments are expected to see huge momentum largely due to corporate elearning programmes and would grow at 11% per annum. One of the observations of the study is that the rising number of TV channels, greater accessibility to internet, proliferation of mobile devices that leads to the popularity of

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video and gaming content are set to offer a huge potential for animation and character licensing.

ANIMATION ENTERTAINMENT Indian animation entertainment industry is a highly fragmented industry. Indian players are primarily involved in the labour-intensive production and post-production activities, as a Service Provider working on the revenue model of Work-For-Hire. This means that most skill sets are at the lower end of the value chain. Though there are a few firms offering world-class capabilities for India to emerge as a global animation hub, there is a need to upscale these capabilities across a wider section of the industry by focusing on owning the IP.

Content development and pre-production activities are nascent in India, both for the domestic and the outsourcing market. However, this is expected to see some momentum owing largely to corporate e-learning programs. Content requirement for corporate e-Learning is expected to grow at 11% per annum (2009-13). This requirement for content, added to the inclination of corporate in the US to outsource custom content development is likely to be a future opportunity for custom content development companies in India

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The Indian Animation industry was worth US$ 631million in 2011 and is expected to grow at CAGR of 23% to reach US$ 961million by 2013.

Animation Entertainment Chain

Chart:2 Animation Entertainment chain

Animation Entertainment Service Model

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Animation in TV

In 2010, 2 channels for kids were launched. The number of TV channels dedicated to animation and kids has been steadily increasing in India. Moreover, the share of kids genre in overall TV viewership has been rising significantly, which indicates the growing demand for animation content in India.

TV channels dedicated to animation and kids

Table:1 Channels dedicated to kids animation

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Global channels cater to original Indian content

The demand for original Indian content has been increasing over the years. Channels such as Turner network that hold a substantial market share in Kids channels have forayed into the live action original productions space in India with iconic shows like M.A.D and the animation series such as Kumbh Karan. This focus on originally produced content has been witnessed across kids channels in India. Comics Players: Increasing scope for character licensing

The rising number of TV channels, greater accessibility to Internet, proliferation of mobile devices that leads to the popularity of video and gaming content is set to offer a huge potential for the animation and character licensing in India. Hence, Comics players are looking to monetize their content libraries through other new media mediums in addition to TV and Film. Recently, Diamond comics joined hands with License India, a licensing solution provider to market its famous characters to be used in animation films marketing campaigns.Indian publishers like Diamond, Raj, Vimanika and Chandamama have announced plans to enter the movie space with their famous comic characters. Some of key events in this area were: Increasing influence of comics players in the animation industry

Diamond Comics considers the launch of a TV channel with shows based on some of its popular characters in animated versions, including Chacha Chaudhary . May also look at promoting and selling them on other digital platforms like Internet, television, Direct-to-Home (DTH) and mobiles Large production houses are also buying rights from these publishers to produce animated TV series - Big Animation Pvt. Ltd has bought rights from publishers of Chandamama to produce an animated TV series In Oct 2008, Toonz Animation entered into a partnership with Chandamama India to produce a full-length animated feature film based on a prime property from the library of Chandamama The dog-masked popular superhero from Raj Comics is set to be developed into a movie by film maker Anurag Kashyap.

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Animation in TV Advertising The Indian TV advertisement industry size is expected to increase to US$ 3.3 billion by 2013. This, coupled with growing popularity of animated characters is expected to boost the industry. The reasons can be attributed to making cost effective commercials or doing away with the clutter of celebrity overkill. Animation commercials cost far lower compared to advertisements with celebrities and establish connect with children and adults alike. They relate to audiences irrespective of language and cultural barriers. Further, in some cases animations are also used to increase the visual appeal of the advertisement or as a part of the concept of a commercial.

Animation Movies for Theatres The release of Avatar, a movie that is a hybrid of live action and computer generated animated characters became the largest grosser in India indicating that Indian audiences are interested in high quality animated content. The animation film industry sighted the trend and a number of animation films were made and released to
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capitalise on this interest. However, Indian animation films did not live up to the expectations set by their Hollywood counter parts. As the country moves out of recession and Indian audience matures, animation movies in the pipeline are expected to see execution. (Refer figure for major movies released in 2010 and 2011)

Increased usage of VFX in domestic movies

There is a rising demand for visual effects in most mainstream films in India today. VFX has been used in live action films to increase the visual on tent in the screen. Films such as Patiala House, Tees Maar Khan, No One Killed Jessica, and My Name is Khan etc. have used VFX to improve shots. The use of VFX in live action films has seen a steady and significant growth over the years. Many live action films today include a VFX sequence and the sheer duration of these screen shots has also risen substantially. Further, owing to its large domestic film industry India is bound to find increasing opportunities to use VFX in the domestic market.

Cost advantages drive increased domestic and outsourced VFX

Usage of VFX in broadcast helps in significant reduction of costs. Its usage brings down the set creation costs for a broadcast by almost 60-65%, particularly for mythological shows. It also helps in costs savings of 30-40% for commercials. The whopping success of VFX extensive movies at the box office overseas is expected to drive the VFX usage in other movies as well. This coupled with the cost savings is
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expected to lead to greater outsourcing. Indian studios are increasingly receiving work for quality western productions. Pixion, a post-production company that offers visual effects services, has worked in globally acclaimed films such as The Kings Speech.

Growth in e-learning to drive custom content development

Growth in e-learning market has been rapid in the past few years and is expected to continue going forward. However, the market is now expected to be more mature and stable. Major markets for e-learning globally are the US and western European nations across both educational institutions and Corporate Sector for training purposes. Currently, e-learning initiatives amongst mid-sized firms and SMEs are
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low. However, a large number of these small and mid-sized companies are expected to show willingness to adopt e-learning, the main drivers being cost savings and wider reach. As the corporate sector expands its distribution and adopts IT increasingly, demand for custom content development is expected to increase. Most of the increased demand is expected to come from the small and medium enterprises (SMEs).

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Chapter 2

ABOUT INDIAN ANIMATION INDUSTRY

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Animation Industries in India

The Walt Disney Company (India) Pvt. Ltd

For over 85 years, The Walt Disney Company has been the preeminent name in the field of family entertainment; the Disney name has symbolized creativity, innovation, trust, decency, optimism and quality.

Disney, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with five business segments:

Media Networks Walt Disney Television International (India), Disney Media Distribution (Asia Pacific), ESPN

Disney Interactive Media Group - Disney Interactive Studios; Disney Online; Disney Online Studios; Disney Mobile; Playdom;

Studio Entertainment - Walt Disney Studios Motion Picture International, Walt Disney Studios Home Entertainment, Disney Music Group, Disney Theatrical Group Disney Consumer Products Consumer Products, Publishing Parks and Resorts - Disney Destinations International Disney is a Dow 30 Company, had annual revenues of over US$38billion in its most recent fiscal year, and a market capitalization of US$72.66billion as of August 1, 2011. Worldwide, The Walt Disney Company has approximately 144,000 employees.

In March 2011, Disney was named in Entertainment on World's Most Admired Companies by Fortune for the second year in a row, in Interbrand Best Global Brands study, and in the media entertainment category. The Landor Companys 2010 Breakaway Brands survey ranks Disney as the 10th fastest brand value growth company from 2006 to 2009 and in July 2010, Forbes named Disney at in The World's Most Valuable Brands survey, the only entertainment company to appear in the top 50 list.

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Disney's Strategic Priorities Our goal is to create the worlds best family entertainment and apply innovative technologies to raise the level of the consumer experience in a way that differentiates Disney. We call this value dynamic the Disney Difference. Across all of our businesses, Disney is focused on three strategic priorities:

Creating quality and innovative content that continues to differentiate Disney as best-in-class;

Deploying cutting edge technologies to showcase our content for early competitive advantage while enhancing the customer experience; and

Expanding and adding depth to our global presence, particularly in emerging markets

Delivering the strategic success, we are focused on brand support, growth and creation through our core brands Disney, Pixar, ESPN, ABC and Marvel.

WALT DISNEY TELEVISIONINTERNATIONAL (INDIA)

The Disney network of channels is the leading entertainment destination for kids 4-14 in Cable & Satellite (C&S) programming in India and a key brand driver for Disney in the market. The network comprises of three pan-India channels including the awardwinning Disney Channel (DC), Disney XD and Hungama TV, and was the first to have 24 hour feeds in regional Indian languages from day one. Our portfolio of channels seeks to strengthen connections with kids and their families by developing creative local content while making our globally acclaimed content relevant to them.

Targeted at kids 4-14 and their families, Disney Channel programming has set several viewership benchmarks propelled by a compelling mix of local and international content. It is available in English and Hindi with specific programming blocks also available in Tamil and Telugu. Disney XD themed around sports, technology & gaming and the spirit of accomplishment, is available in Hindi, English, Tamil and Telugu while our third channel Hungama TV is available in Hindi, Tamil and Telugu. Adding to the choice of offerings, Disney Channel launched a new programming block branded Disney Junior in July this year especially for kids aged 2-7. The channels together reach

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over 71 million homes in India. Select Disney Channel and Disney XD shows are also available on leading mobile networks via a deal with Apalya TV- Indias largest content aggregator for mobile TV service.

Our ongoing commitment to bring localized content extends to several top rating, hit kids and family shows such as Disney Channels original series Best of Luck Nikki, Ishaan and our first family game show Mai Ka Laal. The group's multiplatform strategy also includes content-rich websites disney.in, disneyxd.in and hungamatv.com. DISNEY MEDIA DISTRIBUTION (DMD) Disney Media Distribution (DMD) is responsible for The Walt Disney Companys branded and non-branded content distribution and marketing worldwide to platforms encompassing television, broadband and mobile outlets. The division distributes more than 30,000 hours of programming to over 1,300 platform partners across 240 territories worldwide including 160 distributors across 35 territories in Asia Pacific. DMD was the first U.S. studio to establish a TV distribution office in India and has a significant on-ground presence across Asia Pacific. DMDs program portfolio includes feature films, scripted & reality series and formats, live action & animated kids content, ABC News programming, and specials including the Academy Awards. DMD works closely with Indian broadcasters to provide dubbed content in local languages that appeal to local audiences and is the exclusive regional distributor of Disney Channel, Disney XD and Hungama TV. In 2010, DMD signed a multi-year agreement with Sun Distribution Services, for channel distribution of Disney Channel, Disney XD and Hungama TV, across multiple platforms including Cable TV, Direct-to-Home (DTH) and IP-TV which takes Disney's television channels to kids and families in over 71 million homes across the country. DISNEY INTERACTIVE MEDIA GROUP (DIMG) Disney Interactive Media Group (DIMG) is responsible for the creation and delivery of Disney branded interactive entertainment content across online and mobile platforms. DIMG is a leading mobile content publisher in India and provides a wide variety of Disney-branded mobile content available across leading carriers, such as Airtel,

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Vodafone, Tata, DoCoMo, Aircel and more, reaching out to over 350 million subscribers across India. DIMGs has developed popular local mobile games with hit titles Aladdin, Jungle Book and Disney Cricket as well as working with mobile handset manufacturer, Spice Mobile to provide exclusive embedded content on Disneys Prince of Persia Sands of Time. Online, disney.in, disneyxd.in and hungamatv.com - the respective flagship sites for the Disney brand in India feature games, videos, applications and other experiential content that consistently sees it being ranked amongst the top two websites for Indian families and kids.1 In September 2010, Disney Online Studios launched a localized rupee payment gateway for the popular virtual world Club Penguin. One of the largest and fastest-growing virtual worlds for children, Club Penguin has won numerous international online awards for its content and commitment to safety. STUDIO ENTERTAINMENT

WALT DISNEY STUDIOS MOTION PICTURES (INDIA) (WDSMPI) Walt Disney Studios Motion Pictures International (WDSMPI) is Disneys film distribution arm, responsible for distributing and marketing Disneys animated features and live action films on the big screen. We distribute films under several banners which include Walt Disney Pictures, Walt Disney Animation Studios, Pixar Animation Studios, Disney Nature, Touchstone Pictures, Dream works and Marvel. The 2011 release of Cars 2 and Pirates of the Caribbean 4 are the biggest animation and live action titles of all time in India. This follows on from an exceptional 2010 at the box office with Disneys international hits Toy Story 3 and Alice in Wonderland topping the 2010 highest grossing films of the year, making Disney the only Studio in history to cross the $1billion mark for both films in a single year. Operating in one of the largest film markets in the world in terms of ticket sales, the Company is focused on finding and developing locally relevant and appealing content. Disney released its first live action Hindi feature Do Dooni Chaar (Two Times Two Is Four) in October 2010 which won ten Industry awards including the National Award for Best Film, Anaganaga-O- Dheerudu (Once Upon a Warrior), a Telugu feature targeted at the southern audiences in January 2011 and Zokkomon, the first live-action film in Hindi in April 2011. Disney India, recently announced a creative
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alliance with UTV Motion Pictures to co-produce family films. WALT DISNEY STUDIOS HOME ENTERTAINMENT (WDSHE) WDSHE distributes the full range of Blu-ray and DVD products produced, developed or acquired by the Studio group. WDSHE is a leading player in the Indian home entertainment marketplace and popular titles include Disney/Pixars Up, Tinker Bell, Snow White, The Lion King, Jungle Book, The Incredible and Pirates of the Caribbean 2- which was the highest selling DVDs of all time in India. WDSHE also distributes select UTV Motion Pictures titles including UTV blockbusters Raajneeti and Udaan. DISNEY CONSUMER PRODUCTS (DCP) DCP plays a critical role in allowing Indian consumers a chance to bring a piece of the Disney magic home through a wide range of creative and locally-appealing merchandise ranging from apparel, toys, home dcor and books and magazines to foods and beverages, stationery, electronics and fine art. This is accomplished through DCP's various lines of business which include: Disney Toys, Disney Fashion & Home and Disney Food, Health & Beauty. DCP continues to be the worlds biggest licensor in character merchandising with US$28.6 billion in retail sales for fiscal year 2010. The Disney Stores retail chain, which debuted in 1987, is owned and operated by Disney in North America, Europe, and Japan. DCP Indias growth is set to continue as it focuses on broadening its distribution by expanding product reach beyond large cities through existing licensees and direct to retail relationships. Working with over 85 licensees across categories, DCPs retail presence, such as the unique store-in-store concept in prominent retail outlets such as Lifestyle and Hamleys in Mumbai, Sapphire in Bangalore and Big Bazaar corners, deliver a broad range of products and continue to reach more consumers across the country. Today, Disney products are available across 100,000 different retail formats in India. In November 2010, Disney and Net Distribution Services announced a multi-year E-commerce agreement, to sell authorized Disney branded products on disney.in/shopping. DISNEY PUBLISHING WORLDWIDE (DPW) Disney is the worlds largest childrens publisher has an extensive presence in India

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with over 250 titles published through five licensees. Disney books feature popular and classic Disney stories and characters including Mickey Mouse, Winnie the Pooh, Disney Princesses and Disney Fairies, available in different formats including storybooks, activity, colouring and sticker books, junior novels and comics. DPWs recent localized efforts include the launch of the popular Jungle Book untold stories and The Adventures of Vanayu. In December 2010, Disney Publishing and India Today inked a multi-year agreement for publishing and distribution of Disney magazines in India. DISNEY DESTINATIONS INTERNATIONAL When Disneyland debuted in Anaheim, California, on July 17, 1955, Walt Disney created a destination built around unique storytelling experiences and ushered in a new era of family entertainment. Disney Destinations is part of Walt Disney Parks and Resorts and encompasses 11 theme parks at five of the worlds leading family vacation destinations- Disneyland Resort, Walt Disney World Resort, Tokyo Disney Resort, Disneyland Resort Paris and Hong Kong Disneyland. In India, the team is responsible for the promotion of the Anaheim, Orlando, Hong Kong and Paris Parks and Resorts as well as the Disney Cruise Line and represented by AviaReps based in Mumbai. DISNEY WORLDWIDE OUTREACH Disney is committed to improving the lives of kids and families by contributing to their wellness through public service initiatives, community outreach and volunteerism. The company is passionately delivering on this mission through its hospitals projects, school contact programmes and special events. Disney is also actively seeking to champion conservation by educating and inspiring its cast members and kids and families to work towards a better future. Disney Volunteers in India devote more than 3500 hours for community welfare every year and have brightened more than 40 hospitals, reaching out to over 3million kids.

Tata Elxsi
Tata Elxsi(TEL) is a technology arm of the Tata Group. Tata Elxsi addresses the Broadcast, Automotive, Consumer Electronics, healthcare, Media &
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Entertainment, Semiconductor, Communications, Aerospace, Defence & Homeland Security, Healthcare & Medical Devices and other Emerging technology sectors. It employs over 4000 people and has a network of design studios, development centers and offices worldwide. Its core practice areas cover embedded electronics and software development, industrial design, systems integration, animation and visual FX services. It is headquartered in Bangalore and is a public stock company in which Tata Group still maintains a major stockholding. Gaming TATA Elxsi Gaming practise provides game engineering and art services to interactive entertainment companies. The division has developed games on multiple platforms like iOS (iPad/iPhone), Symbian, Android, Sony PS3, PSP, Nintendo Wii, Microsoft X360, PC, Online and other CE devices. The gaming practise has games published on AppStore, Intel AppUp, Kongregate and other online sites. TATA Elxsi game services portfolio includes game engineering, game art and game testing.

Game engineering services include graphics and production tool development for the game studios, game porting, game expansion packs, game engine programming and modifications, integration with social networking websites, enabling games for 3D stereoscopy and game testing.

Game Art offerings include Video game cinematic and trailers, 3D modeling of characters and sets, Cinematics, Texturing , Animation and 3D Stereoscopic content.

Other Animation Companies

Studios spread across the country are doing animation work like cartoon characters and special effects for clients around the world including Walt Disney, Imax, Warner Brothers and Sony. Some of the other companies are outsourcing animation for commercials and computer games. Some of the prominent animation outsourcing companies are:

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1. Toonz Animation India, is based in Thiruvananthapuram and has to its credit the successful series The Adventures of Tenali Raman. The team here is also working on a full-fledged feature film called Tommy and Oscar which is a 2D /3D combo project. This is apart from completing work for the Italian producer Rainbow Productions; a 2D television series called Will o the Wisp (26 X 6 min) for Animoon Plc, United Kingdom and a big-budget 3D television series for major a US broadcaster. This company has tied up with First Serve International to form First Serve Toonz.

2. Pentamedia Graphics, Chennai is a subsidiary of computer software company Pentafour. It is best known for its animated 3D film using the motion capture technique, Sindbad: Beyond the Veils of the Mists. 3. Maya Entertainment, Mumbai has been doing outsourced work for a while now and has done the special effects for The Mummy and Stuart Little. It is also working on animating short films starring a character called Wabo, to be used by the United Nations to educate worldwide audiences on the importance of fresh drinking water. 4. UTV Toonz, Mumbai is the animation division of UTV Software Communications and is one of the top ranking studios dealing in flash as well as traditional animation. It has bagged a US$10 billion deal with an American company for outsourced work. Other assignments for international clients include like two Dutch deals to produce a musical cartoon series called ClubNow! and a fantasy series The Donz; a project with Cinegroup of Canada for the images for a sci-fi series. They are also working with companies in Scotland and Luxembourg for the development of series like Clootie & Dumpling and Snow Queen. It will also be working on Kong: The Next Generation for New York-based BKN New Media. 5. Heart Entertainment, a 2D animation studio is yet another big name in the animation sphere, which is doing a lot of outsourced work. Among the animation featured in its portfolio are Warner Brothers Histeria, Tommy Nelsons Crippled Lamb and Little Dogs on the Prairie. It also has to its credit some work done for Walt Disney.
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6. Padmalaya Telefilms, Mumbai is a unit of Indias largest listed media firm, Zee Telefilms. It is expected to make 104 cartoon episodes for US$ 14 million and distribute Mondos library for US$ 15 million. It has also inked some deals with British animation companies like Mallard Media and Ealing Animation. 7. Nipuna Services Ltd, a division of Satyam Computer Services, has recently bagged a project worth US$ 8 billion from 4K Animation GmbH, a German animation company. This assignment is among the biggest deals struck by an Indian BPO in the animation space. It is also doing significant work for a New Zealand based company called Applied Gravity. The work includes animatronics models for New Zealand Theme parks as well as an animatronics dog for Animal Planets series K9 to 11. 8. Jadoo Works, Bangalore is working on an animated film series Lord Krishna and the crime caper Bombay Dogs. It has done work for US animation studios like Wild Brain and Guardian Angel Animation (GaGa). 9. Crest Communications, Mumbai, is a leading 3-d animation company and does a lot of work for American Studios. It came into limelight in 2002, when it won an Emmy for animation production work done for the animated series Jakers: The Adventures of Piggley-Winks. It is also to work on three features for Lions Gate Family Entertainment. Crest is also expected to produce and release Sylvester and the Magic Pebble based on the story by William Steig the creator of Shrek. 10. Silvertoon Studio, Mumbai, is engaged primarily in subcontract work for U.S., French, and British studios, using digital ink, paint and compositing system.

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Chapter -3

FINDINGS & ANALYSIS

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Indian Animation
The Animation Industry has done extremely well for itself in the past few years, especially when you consider the amount of animated movies that Hollywood has produced in the past 5 years, which have done so well even commercially. The best of the lot was, of course, the Toy Story series, which broke all kinds of records in the box office- giving the makers a big grin owing to huge pay-outs. So, what is about an animated character that is so appealing? What really wins over an audience when they are watching some sketches in motion? For one thing, these sketches are getting more and more realistic. Especially with the advent of tools that lets designers and programmers work on 3D scales. With softwares like Maya and Max 3D, there has been a marked increase in the actual effects of the visuals that you see on the big screen.

THE CURRENT MARKET SCENARIO

The Indian animation industry was estimated at $354 million in 2006 and was forecast to reach $869 million by 2010. Animation in India is currently riding on two key factors a large base of highly skilled labour, and low cost of production. While the industry is gaining prominence steadily, several important factors such as the government's role in supporting the animation industry, and producing original content locally. In 2009, the state of the animation industry in India, was growing at a CAGR of 30%, is estimated to reach US$ 1.5 billion by 2015. Some of the other estimates of the NASSCOM report on animation indicate the following: The global entertainment market will generate a demand for animation production services of the order of US$ 37 billion by 2003. In the non-entertainment segment the demand for animation production services will touch US$ 14.7 billion by 2015.

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The global film/TV program production market will create a US $ 17.5 billion revenue opportunity for animation production houses. The Indian gaming industry was estimated at nearly $48 million in 2006 and is expected to cross $424 million by 2010.

The Indian animation and VFX industry showed a healthy growth in 2011 on the back of the growth in the global animation industry and the subsequent work outsourced to Indian firms. The Indian industry was estimated to be INR 28 billion in 2011 showing a growth of 23.3% over 2010. Backed by good growth in the childrens television genre and the success of Avatar, a greater share of revenue is estimated to have come from these two segments as compared to direct to DVD content.

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Table:2 Growth of Animation industry

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Chart: 3 Revenue distribution of the animation There is no doubt that with so much activity taking place in the Animation Industry in India, it is going to go places. At present, most Indian companies are graduating from traditional outsourcing to co-production model. The production of the animation film Alpha and Omega by Crest Animation is a case in point. Besides this, experts believe that custom content development would be a large segment, going forward. 3-D mobile games are also gaining popularity and it is expected that the future of the animation industry lies in this segment.

SWOT ANALYSIS OF INDIAN ANIMATION INDUSTRY

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Chart:4 Swot analysis of Animation

Indian Animation is creating an identity for itself today in the global market place. The animation industry is expected to go up from $0.6 billion in 2001 to$1.5 billion by 2005. India has the world's largest entertainment industry, are bust software industry and also skilled manpower, all essential ingredients for the growth of Animation industry. The prominent players include UTV Toons, Crest Communications, Pentamedia Graphics, Padmalaya Telefilms, Moving Pictures and Toonz Animation. The animation studios are catering to the requirements of segments such as feature films, television programmes ,advertisements and computer games. Currently, Indian animation players are predominantly catering to the needs of overseas television programme production companies. The biggest challenges that the Indian animation industry is facing are awareness, skills and manpower development, infrastructure and financial support, which would require industry and government to partner.

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Chapter 4

SUGGESTIONS

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Hype usually precedes anticipated success, and is usually more than is warranted. As far as the animation industry is concerned, however, the hype surrounding it, is justified; at least, if the industry's expected development in the coming years is any indication. Sudhir Srinivasan converses with animation experts in South India and analyses the industry, and the multiple opportunities it provides students. According to a recent report by Price water house Coopers International Limited, an international business consulting service provider, the Indian animation industry is poised to grow by, hold your breath, about 23% in the next four years! This means that the value of the industry that was estimated at 18.5 billion in 2009 will be a whopping 54 billion by 2014. This income has mainly come about as a result of the growing reputation of India as a quality place to outsource animation work to. Production for films including the Lord of the Rings, the Harry Potter series, The Chronicles of Narnia, and Spiderman 3 have taken place here during the last few years. Cartoons that were strictly in the domain of Cartoon Network are now a regular feature of many channels including POGO, Hungama TV, Nickelodeon, Disney XD and Disney Channel. From merely being a country that helps Hollywood studios make animated films, we are now witnessing several Desi production houses evince interest in making such films. Some of the films that will be made during the coming years include Walt Disney's Zokkomon and Krayon Pictures' Delhi Safari, amid others. What also works in the favour of the growth of the animation industry, is the anticipated phenomenal growth of an allied industry - the gaming industry - that is expected to grow by about 36 per cent in the next four years. All in all, the growth of the industry means that the time is perhaps the ripest it has been in recent years for students interested in dabbling with the virtual world. Philip Thomas, Regional Head - Kerala, IMAGE, one of the oldest multimedia institutes in the country, explains that the primary growth of the industry results from the increased volumes of outsourced work that the country's animation studios have received.

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"The industry is short of people with quality skills," he says. IMAGE, which has over 40 centres across India, presently has almost 7,000 students enrolled in its courses. Y Nageshwar Rao, Business Manager - Hyderabad, ICAT (Image College of Arts Animation & Technology), while encouraging these courses to be pursued by students, is also wary of the number of small-time institutes that have come up to take advantage of the demand for animation studies. "The Government has to form a body like the UGC (University Grants Commission) to standardise animation courses in the country like the US has," he says, "This will also help provide the Indian animation industry that needs about 25,000 skilled employees in the coming year." The alumni of IMAGE have found work in several leading companies including Rhythm & Hues, Prime Focus, Prasad EFX, EA Sports and DQ Entertainment. M Satish, who works for the Asian Institute of Gaming and Animation, Bangalore, as a Marketing Co-ordinator in Business Development, suggests that a student interested in making a career in this industry take up courses in animation or game development after finishing Class 12. "It is a creatively fulfilling industry," he says. Navaneeth Ramamurthy dropped out of his engineering course to pursue Professional Diploma in Game Art from the Asian Institute of Gaming and Animation. He says, "I realised that my interests lay elsewhere - in art and computer games," he says. Now, after completing his gaming course, he works for SR Unify Interactive for its maiden iPhone project at a starting salary of about 3 lakhs. "The animation industry is like any other industry," he says, "As long as you are genuinely interested, are willing to learn continually and have a desire to contribute creatively, you will find a job." Opportunities for students are abundant in the industry, as S Manohar, Project Head, Pentamedia Graphics Limited (which is presently working on an animation movie titled Tarzan and Aliens), Chennai, agrees. "Things are definitely looking upbeat. We are planning to release at least two animation films by next year," he says, "Also , more than 100 students have passed out of our institute in the last year and have found well paying jobs."

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Courses in this industry can cost anywhere between 10,000 and 3 lakhs based on the duration of the course and any possible affiliations that the institute may have with foreign universities. That students of animation can find jobs in allied industries like advertising is best exemplified by Rathish Subramaniam, Creative Director of JWT (an advertising agency), in Bangalore. Rathish, who has won the Cannes Award twice, explains that after he finished his course in animation at IMAGE - Bangalore in 2001, he realised that he was more interested in advertising. "IMAGE offered me good leads in the industry," says Rathish, who earns more than 14 lakhs/annum, "With experience, I have found that even though the animation industry may not seem too accommodating initially, if one is prepared to spend time and gather experience, it will reap rich dividends." The skills needed to carve a name for oneself in the animation industry are perhaps best encapsulated by him when he says, "Technology can only render as an output what one's mind visualises." The more creative the mind, the better the results.

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Chapter 5

CONCLUTION & LIMITATIONS

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LIMITATIONS
While it is true that India's animation industry is growing at a remarkable pace, the fact remains that this growth is largely a result of the mushrooming of studios-forhire. In animation feature films, for example, while Indian companies carry out the animation work, most of the writing, character design, and storyboarding are done abroad. India is yet to become a successful player in concept creation, the high valueadding segment of the industry which remains a preserve of western firms. India's advantages of low costs in this industry will be too short-lived, and sooner rather than later, the country will have to start developing its own intellectual property. There are several challenges faced by the Indian animation industry which later become limitations of Indian animation industry.

Lack of Finance
Indian animation firms cannot match their western counterparts in financial strength. It is pointed out that state support in the form of tax holidays is crucial for success in the animation business. Canada, for example, offers major incentives to its studios for developing animation products. However, financial institutions in India have not been much forthcoming in funding projects in animation and interactive media. The long gestation period before fruition of projects discourages potential investors. This can be a major hurdle, and it has, in fact, led to the stoppage of a few production ventures. For example, Jadoo works had to stop production of animated epic of Krishna due to technical problems and lack of funding. The firm was supposedly on the verge of bankruptcy and this has led to the retrenchment of about Interestingly, Jadoo works is the same firm which drew appreciation from 250 workers. Thomas Friedman in an article in February 2004 for employing traditional artistes and transforming their skills to computerised digital painting - he was arguing that globalisation can have beneficial impact on traditional artists. The experience of Jadoo works underlines the fact that it is still too ambitious for Indian companies to single-handedly enter into animation projects. Even a small project in the animation industry entails a budget of US$30 million, which is not affordable for Indian firms.

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International Attention
Tata Elxsi Visual Computing Labs (VCL) in India tied up with Prologue Films in the United States to design the computer generated graphics for display at the academy awards in March 2004. This fact is not very well known. What this highlights is another challenge faced by the Indian animation industry - attention at the national and international level. While Indian animation companies do contract work for western firms, the entire credit, including ownership of copyrights, for the work goes to the western firm.

Paucity of Physical and Legal Infrastructure

As per the recommendations by a NASSCOM study, improvement of animation studios and better training for Indian animators are important for India's long term success in the animation industry. India should develop an organized animation sector and also frame suitable laws and copyright rules. The infrastructural facilities have to be improved to attract more foreign investment and to enhance the efficiency of the industry. Also more emphasis has to be placed on the domestic industry as the domestic demand for animation in the entertainment; gaming and computer sectors are expected to grow multifold.

Need For Training

"There are no academic institutes like Indian Institutes of Technology, Regional Engineering Colleges, Polytechnics, etc., churning out animators by the thousands. What we have are only fine arts schools which teach the fundamentals but not the technical skills required for production," points out K. Chandrasekhar, General Manager, Media Works, and Tata Elxsi. According to him, this is a major drawback for the industry in India. Education in new media has to be embedded into the mainstream curriculum. Students have to realise that they can have a lucrative career as animators, and the government as well as educational institutions have to start programmes for their career development. The animation sector will benefit greatly by giving encouragement to the community of traditional artists as much as to technically
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trained professionals. In other words, integration of the rural and urban talent will prove highly beneficial. Also, NASSCOM's President Kiran Karnik believes that there is a need for an animation academy to build a steady inflow of animation professionals in the industry. NASSCOM extended its help to the government for framing the curriculum and also work with the industry players to enhance the academic-industry interface.

Government Support
Mr. Kapil Sibal, Minister of State for Science and Technology, identified animation industry However, compared to as one of the important sector for India's export oriented growth. Governments in other countries, efforts by the Indian government to encourage the sector have been very minimal. The government of South Korea funds animation ventures on partnership basis. Bangladesh has a World Bank-funded support programme for the animation industry. In contrast, there have not been many initiatives from the Indian government to promote the animation industry, at least till the past one year. The Indian government signed co-production treaty with France about 20 years ago and efforts are on to reactivate it. A treaty was signed with the Italian government, which in turn sent a delegation to Goa. Efforts are also on to sign similar agreements with Britain, Japan, Brazil, Canada, Netherlands and China. These treaties will lead to sharing of costs by partner nations and also the dispersion of technical know-how amongst the partner nations.

New Moves by the Private Sector

Ittina Group, a property development firm, has invested US$5 million in an animation studio and school, Takshaa, in the Indian city of Hyderabad. The company plans to invest US$20 million by the year 2007. The school has the capacity to train 250 students and boasts of inculcating traditional artistic skills in addition to software training. The team heading this venture is renowned for its contribution to the global animation sector. It is planning to collaborate with universities in Germany and Singapore to offer university programmes.

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Maya Entertainment has collaborated with international clients such as BBC, Nickelodeon (UK) and Electronic Arts among others. Toonz Animation's top customers are Disney, Hallmark, Paramount and Marvel Pictures. It also has coproduction agreements with Eva (France) and Viva Vision (Canada). Maya Entertainment was nominated for the Best Cinematic' award at the game developers conference for their work at the Electronic Arts School in 2004. It was also nominated for the Puldnella awards in animation for its work for the TV series The Tale of Jack Frost made for BBC. Tata Elxsi, in addition to the computer graphics work it did for the 2004 academy awards, also helped New York designers in their Hungama TV (in which more than 80% of the capital is bid for the 2012 Olympics Games. Contributed by UTV) has plans to acquire overseas strategic investments. UTV has the option to invest up to 20% of the capital in a joint venture deal with Malaysia's Astros All Asia network for setting up a kids channel in Malaysia, Indonesia, Singapore and Brunei within three years. Sun Network TV is planning to launch a kids cartoon channel in association with UTV. As per the discussions conducted so far, UTV will take care of the programming and marketing of the channel while the distribution of the channel will be handled by Sun TV. Plans are on to create an Indian version of Sesame Street and the local version is expected to be called Gali Gali Simsim, and this will be launched on Cartoon Network. An educational research team led by Dr. Asha Singh is in the process of developing an innovative curriculum keeping the Indian kids in mind. Animation Company Colour Chips has entered into an alliance with a South Korean government agency to explore possibilities for Korean film makers to tap the low cost technical expertise in India.

Professional Bodies in Indian Animation Industry

The Animation Society of India (TASI) and Association International Du film D'Animation (ASIFA) have been involved in various animation workshops and events since their inception. Experts feel that it is a very important time for the Indian animation industry, both for professionals and budding animators. Organisations like ASIFA India and TASI have been nurturing talented artists in the animation industry
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TASI has been in the business for almost four years and has been involved in more than 80 interactive sessions and numerous full day workshops. According to TASI secretary, Ranjith Singh, the objective of TASI is to promote the cause of animation industry through collaborative efforts with other organizations.' ASIFA, the only internationally recognized organisation for animation, has opened up it first ever national chapter in India. The Indian chapter of ASIFA will be located in the Toonz Studios in Techno Park, Trivandrum. The need for creating more awareness about the animation industry among the public and market players was stressed by ASIFA. It will act as a manpower consultant providing artists to studios around India. It has also given a representation to the Indian Government to recognise the animation industry as a part of the information technology industry.

New Government Initiatives

A 25-acre Special Export Zone (SEZ) is going to be constructed in the outskirts of Thiruvananthapuram exclusively for the animation industry. The commerce ministry is said to have approved the creation of the SEZ within the Film and Video Park (FV Park) set up by the Kerala Industrial Infrastructure Development Corporation near Thiruvananthapuram. The state government is said to have created a 15,000 sq metres animation facility to welcome animation houses to create their bases. The FV Park made a good start when the Chennai-based Prasad Labs has made it its base to process all Malayalam films for the next two years. Kerala has been making efforts at convergence in the areas of information technology and cinema. Animate' is a new animation academy in Kolkata. This offers programmes in basic and advanced 2D and CG (computer generated) animation with a curriculum that focuses on hands-on training. An alliance has been formed with Los Angeles-based Gigapix Studios to facilitate technical support, co-production and co-finance animation projects. The state government of West Bengal is providing much encourage. The Animation Production Association of India recently suggested to the Information and Broadcasting Ministry of India that all TV channels must ensure 10% reservation for local animated content. The government can further encourage investments and participation in this sector by providing tax benefits. It can provide

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grants to Indian animators for participation in international conference and for taking up training programs abroad. ement to the animation industry.

Opportunities in Collaborations
Indian companies are trying to improve quality and making attempts to compete globally with the market leaders in the industry. It is said that the year 2004 is a watershed for the Indian animation and gaming industry (according to the Federation of Indian Chambers of Commerce and Industry [FICCI] report on the Entertainment Industry). The year was marked by increased use of animation in the Bollywood segment. According to the FICCI report, the increasing demand for downloads of games on mobile phones will enhance the opportunities for gaming companies and bring in new entrants. Several Indian companies are entering into collaborations with foreign new media companies, which outsource their work to the Indian companies. Recently, Toonz Animation floated a joint venture with First Serve International LLC, a global media company which aims to produce and distribute top-notch animation programming for the world market. The new venture will be headed by former Walt Disney executive Ed Borderding. In 2004, a Chinese company also invested in India Games Ltd. Toronto-based entertainment products company Kahani is collaborating with Mumbai based Animation Bridge. In this venture, Kahani is expected to invest US$30-US$40 million over the next three years to engage in film production. The storylines and scripts will be completed in Canada whilst product development and promotion are expected to be done in India. The company is also planning to tie up with Bangalore and Hyderabad-based studios. Zee's animation arm, Padmalaya Telefilms, has signed a US$14 million contract with Italian producer-distributor, Mondo TV, to co-produce four new animated series. Padmalaya also has collaborations with British animation companies Mallard Media and Ealing Animation.

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CONCLUSION
The Indian interactive media and animation industry has seen tremendous growth in the last year or so. It is fast emerging from being an outsourcing destination for western animation companies to develop and showcase its own capabilities and potentials. The emergence of various industry-related organizations and companies, and the availability of affordable and talented expertise, point to tremendous potential this sector has to offer. Whilst there are internal challenges to the Indian interactive media and animation industry, given the efforts being undertaken by the government and like-minded organizations, it will be sooner rather than later, that India lays a strong claim as a major international player in this industry. It is thus opportune for Singapore and countries in the region to identify potential opportunities for collaboration so that we are able to ride on the waves of the Indian interactive media and animation industry.

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BIBLIOGRAPHY
The lists of reference for the purpose of completing this marketing project are as given below:

BOOKS
1. Chhabra, T.N. Marketing Management, 3rd edition, 2004, Dhanpat Rai & Co., New Delhi. 2. Kothari, C.R. Research methodology, 3rd edition, 1997, Vikas Publishing House Pvt. Ltd, New Delhi.

WEBSITES
1. en.wikipedia.org/wiki/Indian_animation_industry 2. www.disney.in/corporate/ 3. www.marketresearch.com/IS-Advisors-v3900/Animation-Gaming-India-Swot-6891342/viewtoc/

4. www.tataelxsi.com/

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