In business: Indian animation

The Indian animation industry, due to recession, has been going through a difficult period in the last two years. FICCI-PwC Entertainment and Media Report 2008 has stated, “The Indian animation industry in 2007 was estimated at USD 0.31 billion and is expected to grow at CAGR 24% to reach USD 0.94 billion by 2012”. In that context, we have seen a significant growth in three areas – 2D to 3D conversion, co-production in broadcasting and feature films, and it was delightful to see that the original Indian content is reaching global markets, finding international distributors, getting sold in international territories, properties exploring 360 degree marketing approach, and all of this is surely taking the process forward. One can’t expect changes to happen overnight, but the progress has been steady.  It’s about time that the Government steps in and gives the much-needed push that Indian animation industry needs to succeed at a greater scale.

Struggling to survive?

I won’t put it as the Indian animation industry is struggling to survive. It’s just a matter of one successful film or a few successful series in broadcasting to turn it around. Having said that, if Indian animation industry gets the patronage of government and the Indian broadcasting and of course support from distribution, then there is no reason why we can’t be at the top. As long we pursue a strategic three-way operation of co-production, outsourcing and content creation, we should see things falling into place soon enough.

Approaching Indian market

To introduce an animated character in the Indian market, one definitely needs to understand that if you want to create a property with international quality then Indian market alone will not be able to support the cost-profit ratio. So, it is imperative that whatever be the character or property, it must be conceived with Indian or Asia Pacific sensibilities but with an international perspective. This balance is critical. We have created a great success story with Little Krishna following this model and now we are replicating the same model with Shaktimaan and Big Bees. The result is that both Little Krishna and Shaktimaan (even before its launch in broadcasting) has found international distributor. To give you an example, we positioned Shaktimaan as a “Cyber Yogic Hero”.  The content is neutral for the global audience but Cyber and Yogic aspect lends an unmistakable Indian sensibility to the character. Also, there is a fusion in terms of look and feel with Indian and global acceptability. Shaktimaan is going to be launched in Indian broadcasting soon for the Indian audience.

Expanding the different way

In the present scenario, L&M (Licensing & Merchandising) is vital for business of any animation property. There are countless success stories from West (Marvel Properties) and even in Asian Pacific region (Upin & Epin from Malaysia) as to how much successful L&M programmes can contribute to the business. We have experienced it with Little Krishna.

With Little Krishna we have explored 360-degree marketing approach with great success. We have launched multiple product categories in L&M segment for Little Krishna. Being out of the box, we launched Little Krishna incense sticks with Mysore Sugandhi and it is doing particularly well. We have launched our L&M programmes in Indonesia and Malaysia as well and the reports are extremely encouraging.

Our brand portfolio has surely expanded. Along with Little Krishna, we are now going to have Shaktimaan and Big Bees, two properties that allows similar kind of 360-degree exploration possibilities and we have our plans in place already. L&M is surely going to be big with both these upcoming properties.

For young artists and graphic designers, L&M also offers to serve as a great career opportunity. The same is for character designers in animation who are majorly responsible for creating L&M friendly character designs.

Animated Indian property going abroad

First and foremost, you cannot take an Indian property abroad if the quality parameters do not match the international standard, which means you will have to invest in pre-production, surely in the voice cast and script and also in production. We are getting our scripts written by the best of the writers in Los Angeles and getting our voice cast and recordings done there too, which means we are aligning our properties as per the standards and taste of the western market. Secondly, the properties need to be neutral in nature for its global acceptance with a balanced approach of Indian sensibilities. Thirdly, distribution is the key. One needs to find appropriate international distributors to take their property in global markets. Fourthly, one needs a solid broadcasting partner in India to start off with and then distributing for international broadcasting. Fifth is the 360 marketing approach that the property must be capable of to explore monetization possibility because animation business by nature needs sustenance over a period of time before you can make profit.

Revenues at box-office

Be it live action or animation, the success or failure of the films is determined by its content, story telling, execution and overall quality parameters. It’s common everywhere in the world. Before we say that animation films don’t do well in India, we need to ask ourselves:  did the films match all the above criteria in order to be successful? Also, along with correct content another major factor is distribution and promotion. That is severely lacking in India for animation films. That needs to change. But having said that, it needs one really successful Indian animation film to change it all.

Scenario abroad

If you look at the North American and the European markets along with Japan in particular, they have a larger exposure and a powerful history of comics, animation and L&M for several decades. The exposure in Asia Pacific, Middle East and Latin America is merely a decade old. In most of the countries, animation is positioned as kid’s content and is finding itself competing with live action. Many countries understand the need for digital content creation in the present scenario of consumption on mobile phones, computer screens, television screens and theatrical screens, and have drafted their policies and are executing it providing a great support to artistic and creative skills. More over these countries have extended further support in the form of subsidies and project financing to encourage studios to create original content. Particularly in India, the tax holidays and other incentives like marketing, etc face a severe competition against live action. 

Driving force and the time to come

This industry has the potential to grow multiple folds and India as an animation hub has a long way to go. Hence we are very optimistic about the industry. The only barrier we see is lack of government intervention at this point of time. Coming forward and recognising Animation, VFX, Gaming and Comics (AVGC) as an artistic industry and supporting it with a tax holiday and setting up a co-production fund to encourage original IP creation, thereby creating a level playing field for developing original IP with co-productions and outsourcing will be the real driving force to explore the true potential of this industry.

 The author is CEO, Big Animation