l What is the
size of the animation market in India?
In terms of the number of studios, the size of the Indian animation market
is around 75. As for a measure of revenues, there really hasn’t been a
definitive report, which clearly outlines animation sales. The number will
vary greatly depending on which animation services are being included in the
survey. However, a number that is commonly quoted is US$100 million.
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l What is the
kind of work is being done in India and how high are we in the value chain?
A lot of animation work is being done for the domestic marketplace.
Advertisement films, commercials, special effects, and some serial work for
Indian clients make up a large percentage of business for many Indian
studios. Outsourcing is also big business. This normally includes
contract services work and co-productions with studios in other countries.
A small amount of original work is also being produced. While Toonz has
already sold two television series, PentaMedia has been involved in feature
length films for the international market. There has also been some
regional work being done for Singapore and Malaysia. While most of the big
players are concerned about the training and development of human assets for the
sector and are addressing the issue by getting into training themselves, couples
of Indian players are also attempting to address the gaming market.
l Which are
the countries outsourcing animation works to India?
Countries in Europe have been outsourcing a lot of work to India.
These include France, UK, Spain, Italy and Germany. In North America, both the
USA and Canada are now sending work. We expect the amount of work coming
from Canada will increase dramatically once the animation trade treaty between
India and Canada is signed. This is now slated for next month. There
is also an increasing amount of outsourcing from the Middle East countries.
l What does
the industry as well as the Indian government needs to do in order to make India
the hottest destination for animation outsourcing?
Some progress has already been made. The treaty with Canada will be
very helpful. Canada is one of the most prolific countries in the world
when it comes to animation production. But there are other things that
would help. High on that list would be having the government get involved
with animation training and education. This is a tremendous cost that most
studios must bear. Globally, the countries that have been successful in
animation production are those backed by animation colleges and I’d certainly
like to see at least one or two such school being dedicated to the sector
soon.
l What are the
challenges that the Indian animation industry needs to tackle if it has to
succeed globally?
Aside from animation colleges and trade agreements I think a major challenge
for Indian studios involves the disciplines of on-time schedules and
airdates. Sometimes appetites are greater than capacity and schedules are
missed. This gives the whole industry in India a sore eye. Our client
studios, understandably, will not tolerate missed air dates. We’re growing so
fast that it’s not uncommon these kinds of problems to crop
up. Experience will help us solve such issue. Another big challenge is
to find ways to make potential clients feel comfortable about communication and
security issues. All of us here know that these aren’t problems, but when
we’re courting new clients, they’re wary.
l Do you see
the India-Hollywood relation changing and maturing to the extent that we can
expect big orders?
India’s Hollywood connection has certainly undergone significant
change. At least three Indian studios now have offices in Hollywood
(Burbank). At Toonz, we’re now completing the first animated series to
come out of India for worldwide audiences, thus competing with Hollywod
series. The series is being distributed by UK-based Indigo Kids and
discussions are currently underway with US broadcasters. It will have its
world premiere on Cartoon Network India sometime in April or May.
l Does that
mean India can crack the animation market?
There’s absolutely no question in my mind that India can and is cracking
the animation market. In fact, I expect the sector to grow by 50% to 75%
annually for the next five years. Today, India is at a very advanced stage in
digital animation technology and almost at par with the global
standards. With many of the studios being involved with special effects for
advertisement films and live action films, the country as a whole has gained
great deal of technological experience. And, of course, India has a rich
heritage in IT training and technology. Not to forget the price and
language advantage that India has over numerous competing countries. What
we just need is a bit more seasoning. The area where India needs to pay
attention is, however, that of traditional 2D animation where we lack of
much-essential trained manpower. Another are of concern is to expand the
domestic market. The reason why there is so little animation produced
specifically for the Indian market is purely economical. Indian
broadcasters pay very small amounts for animation programming and producing
animation is very expensive. Hence, there is need for creating awareness and
change in mindset.