Global Outlook

The Animation industry in India is set to witness an exponential growth.

Contributed by Nirmal Bang

By Nirmal Bang

India’s 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.

India’s 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.

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 world’s 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.

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 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 co-production is quite feasible and lucrative.

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.

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 e-learning 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 ofvideo and gaming content are set to offer a huge potential for animation and character licensing.