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ADVENT INSTITUTE OF
MANAGEMENT SCIENCE AND
TECHNOLOGY (U.G)

A PROJECT REPORT ON

Animation Industry
YEAR:-2009-10

SUBMITTED TO: - SUBMITTED BY:-

Ms. Payal Sachdev Prashant Mahatma
B. M. S - 3rd semester
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INDEX
SR.NO. TOPIC PG.NO
.
1. INDUSTRY INTRODUCTION Pg 3

2. SWOT OF INDUSTRY Pg 6

3. MARKET SCENARIO Pg 8

4. PRODUCT & SERVICE RANGE Pg 11

5. DATA Pg 14

6. QUALITY ISSUES OF THE PRODUCT Pg 18

7. HR SPECIFICATIONS Pg 20

8. GOVT. RULES & LAWS Pg 21

9. MARKETING TECHNIQUES Pg 23

10. LEADER COMPANIES & COMPETITIONS Pg 24

11. CASE STUDY ON DISNEY Pg 28

12. CONCLUSION & SUGGESTIONS Pg 35

13. BIBLIOGRAPHY Pg 36
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Industry Introduction
Animation Industry is once again on its historical growth trend. It is undergoing
significant changes which are reshaping the industry demands and supply. It is growing
and expanding in new ways and directions Industry growth continues to be driven by the
new, smaller, computer animation production companies that are still starting up - taking
advantage of the very low industry entry level financial threshold as hardware and
software prices ease downward. It is expanding rapidly with many new production
facilities based in Asia and Pacific Rim countries. India has the world's largest
entertainment industry, a robust software industry and also skilled manpower, all
essential ingredients for the growth of Animation industry.

Major Player in the industry and competition level in the industry:

Till date the lords of the animation field are said to be Disnep, Sony, and IMAX only.
The prominent players in INDIA include UTV Toons, Jadoo works, 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 astonishing news is that 90% of the
total consumption for animation is in the North American and Canadian markets, of
which 90% of the production work is done in Asia.

Cost of animation production in India is the lowest compared to other destinations like
Canada, Korea, Taiwan and Philippines as seen in the table.
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Rates of production of a half hour animated program

Countries Cost (in US dollars)

US and Canada $250,000-400,000

Korea and Taiwan $250,000-400,000

Philippines $100,000 – 120,000

India $80,000 – 100,000

Till date Indian animation industry has around 20000 professionals available in the
market, at this consistent rate of growth we might require around 2 lakhs animated
professionals by the year 2008. Apart from the desired technical skills, animation
professionals must have innovative, artistic thinking along with colour sense and picture
motion ideas. This has been a major task for hiring the right professionals. So, we have to
have the training unit along with the development unit, which trains and grooms the
candidates on the required skill sets to build a body of manpower talent to fuel the growth
of animation market. Unlike the IT industry it doesn’t require only technical
professionals; it provides employment opportunity to even a 10th class drop out too. This
is a great opportunity for talented individuals from rural areas to make progress. Starting
salaries in animation are close to Rs 6,000 to Rs 6,500 and once you gain experience and
are good it could go upto Rs 35,000.

The main sources of income for Indian Animation industry are VFX work for TV shows
( there are at present 126 channels in India, hence VFX work also is on high demand),
movies, Advertising ( VFX and character animation), computer and mobile gaming,
comics, Simulations (Medical, Engineering, Architectural, Educational), web publishing
etc. Overseas entertainment giants like Walt Disney, IMAX and Sony are increasingly
outsourcing cartoon characters and special effects to India. Direct job contracts from
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these Hollywood Moghuls or indirect contracts from other Indian companies like UTV
Toons, Jadoo works, Crest Communications, Pentamedia Graphics, Padmalaya Telefilms,
Moving Pictures and Toonz Animation will be the constant source of work and money till
the new start up attain a quality name in the market.

Not just the requirement of manpower is a challenge, capturing the big domestic market
is a more daunting one. Though made a notable entry into 2D, 3D and flash work field,
yet it has to prove itself as a major player in feature film animation. One of the main
reasons why there is a lack of active interest in special effects is that of economic
feasibility and courage. Indian broadcasters pay very small amounts for producing
multimedia and graphic clips, though producing animation is very expensive. Setting up
infrastructure for 3D animation is also quite an expensive affair, and Indian film-makers
are still not daring to experiment with animation in a big way.

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.

Animation / Multimedia companies are still waiting for attaining industry status to enable
it to gain access to funding from banks and financial institutions. There is also a need to
set up more training institutes that focus on animation.
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SWOT Analysis

STRENGHTS
 High imagination and creativity support due to rich historical and cultural
heritages, mythological sagas etc.

 Availability of latest technologies.

 Lower production rates, in comparison to US / UK markets.

WEAKNESS
 Shortage of Skilled Manpower.

 Warm response from Indian market.

 Field is still in the initial stages, yet to flourish in a major way.

 Only 36% of over one million animation software packages available in market
are being used daily to produce commercial computer animation and visual
effects due to lack of skilled labour.

OPPORTUNITY
 NASSCOM predicts a market of 15 $ billion in near future.

 Increasing demand due to its applications in media, entertainment, architectural,

medical and educational fields.
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THREATS

 Serious competition from other Asian countries.

 Due to limited labor availability, high attrition rates.

 lower production costs and tighter margins

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Market Scenario
The Global Scenario
Animation is regarded as a part of the creative or content industry as artistic or
creative effort is essential to the process of developing animation. The segment,
according to the UK Creative Industries Task Force, has the potential for job creation
through the generation and exploitation of intellectual property. The US industry, the
largest user of animation products and services, describes entertainment as feature
films, TV programs, music, broadcasting, cable TV, games, sports, performing arts
theme parks and toys.
The total global animation production figures, according to the NASSCOM Animation
report, range between US$ 16-31.5 billion for the year 2000. Statistics for 2001,
stand anywhere between US$ 25 billion and US$ 38 billion. Analysts estimate that
the global animation production rose to about US$ 45 billion in 2002.
($ billion) 2000 2002E 2005F

Total global animation 31.5 45.0 51.7

production
Demand from 22.7 32.4 37
Entertainment Sector
Demand from Non 8.8 12.6 14.7
Entertainment Sector
Animation Production by 0.6 - 1.5
India

E-Estimate, F- Forecast
Some of the other estimates 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 (forecasts by Pixel
Inc.)
In the non-entertainment segment the demand for animation production
services will touch US$ 14.7 billion by 2005 (forecasts by industry source)—
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The global film/TV program production market will create a US $ 17.5 billion
revenue opportunity for animation production houses (forecasts by Pixel Inc.)
On the gaming side, according to an ICT industry leader, the demand for
animation production services was of the order of US$ 5 billion in 2000

Indian Animation market

The Indian animation market, fairly “static” until a few years ago and activity on this
front only began in earnest in the later half of the 90s when animation studios made
an appearance in the country and the industry developed a more serious, export
oriented outlook. India is now waking up to a host of global opportunities that
promise a lot of “action” for the country’s leading design specialists.
According to NASSCOM study, the forces that are shaping the development of the
animation industry in India include technical manpower to meet the 2-D and 3-D
animation requirements, lower costs of animation production, the expected demand from
domestic Indian television channels and the formation of domestic animation
studios and training centres.

A snapshot of the Indian animation market scenario in the 90’s:

‫ ־‬The merger of two existing and leading design studios-Ram Mohan Biographics and
United Studios-made available for the first time, infrastructure and resources required for
animation. Design studios began teaming up with overseas animation firms, taking the
co-producing or subcontracting route, and in this way upgraded their technical skill sets
‫ ־‬By 1993, there were around 15 animation studies in the country, with three
to four using IT tools and techniques. These studios were coming up in cities
such as Mumbai, Hyderabad, Chennai and New Delhi.
‫ ־‬Leading animation studios included the Silvertoon Studio and Crest
Communications, both of which took on subcontracted work from US, French
and British studios.
‫ ־‬Training in animation became more rampant, with organizations such as the
Film and Television Institute in Pune offering three-year diploma programs in
animation
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The animation market in India today is characterized by the presence of multiple

players including Crest Communications, Films Division Maya Entertainment,
Silvertoon Studio, 2NZ Studio, Cine Magin, Climb Films, UTV Toons, Zee Institute of
Creative Arts (ZICA), Digital Studio, Pentamedia Graphics, Prasad Studios, Acropetal,
jadooWorks, Color Chips, Heart Animation, Ocean Park, Padmalaya Telefilms, and
Toonz Animation, Magic Shop, Moving Pictures, among others. These companies are
spread across cities such as Mumbai, Chennai, Bangalore, Hyderabad and
Thiruvananthapuram.
India’s animation studios are catering to the requirements of various end user
segments such as feature films, TV programs, advertisements/commercials and
computer games. Animation solutions are also finding a place in niches such as film
titling, special effects, Web entertainment programs, TV broadcast graphics, 3D
modeling and background development. In each of these areas the extent or scope
of services for an animation production company include offering services in
animation production services, co-production and content creation.

Product and Service Range

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Film animation

In the early 1890s, Thomas Edison's Kinetoscope was invented. The history of film
animation begins with the earliest days of silent films and continues through the present
day.

The first animated film was created by frenchman Charles-Émile Reynaud, inventor of
the praxinoscope, an animation system using loops of 12 pictures. On October 28, 1892
at Musée Grévin in Paris, France he exhibited animations consisting of loops of about
500 frames, using his theater optique system - similar in principle to a modern film
projector.

The first animation on standard picture film was Humorous Phases of Funny Faces by J.
Stuart Blackton in the year 1906. It features a cartoonist drawing faces on a chalkboard,
and the faces coming to life.

Fantasmagorie, by the French director Émile Cohl (also called Émile Courtet), is also
noteworthy; it was projected for the first time on August 17, 1908 at 'Théâtre du
Gymnase', in Paris. Émile Courtet later went to Fort Lee, New Jersey near New York
City in 1912, where he worked for French studio Éclair and spread its technique in the
US.

The first puppet-animated film was The Beautiful Lukanida (1910) by the Russian-born
ethnically-Polish Director Wladyslaw Starewicz (Ladislas Starevich)

The first animated feature film was El Apóstol, made in 1917 by Quirino Cristiani from
Argentina. He also directed two other animated feature films, including 1931's
Peludopolis, the first to use synchronized sound. None of them, however, survive to the
present day; the earliest-surviving animated feature, which used colour-tinted scenes, is
the silhouette-animated Adventures of Prince Achmed (1926) from German Lotte
Reiniger and French/Hungarian Berthold Bartosch. Walt Disney's Snow White and the
Seven Dwarfs, often considered to be the first animated feature when in fact at least eight
were previously released, was the nevertheless first to use Technicolor and the first to
become successful within the English-speaking world.
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Intro To 2-D Animations

To animate means to bring to life and communicate feelings through storytelling.

Students of all ages can create animations with new technologies. Telling a story that
communicates emotions to an audience involves deep thinking, creativity and reflection.
The old saying, “A picture says a thousand words,” is very true with animation because
the picture moves, and is alive. And there is usually other media such as sound to add
another layer of meaning.

"An animator is an actor with a pencil", goes the oldest and truest animation cliché. Not
"a draftsman that acts", but first and foremost - an actor. If you're trying to tell a story
through a character, inevitably you're an actor. The only question is whether you are a
good actor or a bad one.

In 2D computer animation, animator makes the drawings by the help of digitalizers on a

computer screen, not on a paper, which is made by hand working. On the other hand
there is another possibility that one can transfer the products of traditional animation that
were ones produced on paper to computer by scanning. Some primitive drawing forms
like square; circle, line and the tools for an artist like eraser, brush, and airbrush are
simulated in computer. There is no need for the user who produces computer animation
to use a ruler to draw a line, to struggle with the measurements for a milimetric square or
to mix different colors to obtain the desired color. These kinds of simple operations are
made with a high sensitivity by the computer software. At the end, computer gives the
opportunity to the user to get an outcome for his/her animation through a printer, a video,
etc.

Intro To 3-D computer animations

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3-d computer animation is the projecting of two-dimensional pictures one after the other
which are rendered in the means of width, length and depth in the space supplied by
computer software’s. 3-d computer animation has some characteristics that are different
from the traditional animation in terms of method and techniques. By the user’s
commands, the computer calculates the details like movement, color, light, and
perspective of the objects on the created visual stage accurately and gives the outcome as
an image. Animator plans the model, which is thought to be on the stage with architecture
sensitiveness, chips into shape with a skill of sculpture, makes it move in aesthetic way
by the help of observation, experience and creativeness. While doing this work, his/her
brush is digitalizes like mouse and keyboard, his/her canvas is computer screen. His other
tools are like modeling, metamorphosis, giving movement; primitive objects, camera,
lighting and color materials that the software enables.

Services provided
 High quality graphics & animation support for movies, television and
advertisements
 Titles for television, movies & presentations.
 Product design, modeling & animation advertisement.
 Animated Serials & music videos.
 Cartoon animation
 Composition & special effects.
 Exciting educational medium for students.
 Animation & simulation support to all companies & organisation.
 Low poly models for games developing agencies.
 Architectural 3D perspective views & walk throughs.
 3D animation logos.
 Flash & powerpoint based corporate Presentations
 Website design & developments.

Data
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History Of Animation

Winsor McCay, father of the animated cartoon, pronounced the doom of the very
industry he had inadvertently helped create.

From 1911-21 McCay nursed animation from a simple camera trick to full blown
character animation that would take 20 years to be surpassed. McCay animated his films
almost single-handed; from inception to execution each cartoon was his and his alone. He
took the time to make his films unique artistic visions, sometimes spending more than a
year to make a single five-minute cartoon. But the burgeoning world of cinema could not
wait so long for so little, and so the modern animation studio came into being. The art of
animation was no longer the work of one man, it was a streamlined, assembly-line
process in the best Henry Ford tradition. But was the art of the animated cartoon
sacrificed for the trade's sake? That, of course, depends on the studios themselves.

Through the years several institutions have proven McCay's prophecy at least partly false;
indeed, without such positive collaborations of talent the art of animation would not have
advanced to the level of sophistication it enjoys today. But who exactly was it "bad luck"
for: the art, or the artists themselves?

Even before McCay had shown the world the true potential of the animated cartoon in his
landmark film "Gertie the Dinosaur" (1914), the first animation studios were already
around, trying to exploit the medium for what they could. Raoul Barre' opened the first
animation house in 1913, and within five years a new industry was born as more and
more studios began to pop up around the New York metropolitan area.

For the first time a studio produced what may be considered true art, but in doing so took
the credit usually given to the artist.

Hands Down the most influential studio (from an artistic as well as a commercial
standpoint) in the history of animation is the Walt Disney Studio, which exploded onto
the scene in 1928 with Mickey Mouse in "Steamboat Willie" and continued to dominate
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the field to this very day. It is at Disney that we see the studio system's best and worst
effects on the development of animation as an art form.

Without Disney's streamlined organization of talent and creative collaboration the

animated cartoon could never have advanced as rapidly or as beautifully as it has....yet, as
at the Bray and Sullivan studios, in the process many of the men responsible for the
studio's achievements remain anonymous and forgotten. Had Disney animators Vladimir
Tytla and Freddie Moore been alive during the renaissance their names might well have
been numbered among Da Vinci and Michelangelo. For all their accomplishments,
however, they remain totally eclipsed by the titanic figure of Walt Disney.

Walt Disney's first important contribution to animation was to move his studio to
Hollywood in 1923. Los Angeles had become the center of live-action filmmaking, but
the animation industry remained rooted in New York (with a few studios scattered
throughout the Midwest, like Disney's). Accompanying him on his move from Kansas
City were Hugh Harman and Rudy Ising, who would eventually found the Warner Bros.
and MGM animation houses. These three studios were to become the leaders of the
animation industry. Disney's decision to move to California was a pivotal turning point in
the development of animation as a business.

Growth of Animation Industry

The international animation industry is increasingly looking eastwards as the cost of real
sets, studio space and outdoor location skyrockets abroad. The demand for animation
professionals had been going up, said Rajesh Turakhia, Chief Executive Officer of Maya
Entertainment Limited, a company engaged in animation works and training.

According to an industry forecast by Anderson Consulting, the animation industry in

India is poised to touch a whopping $15 billion by 2008. It has achieved remarkable
growth from $550 million in 2002.
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In comparison, Globally, the animation industry is expected to grow at a CAGR of 10%

to USD 100 billion from USD 68 billion in 2008.

Given the financial meltdown many western countries are actively looking at destinations
like India to develop animation content with moderate budgets. The increased interest of
Bollywood and regional cinema industry for animation has boosted the growth for the
industry. The Indian animation industry has moved from a pure offshore model to co-
production model in some cases with Indian studio contributing with it manpower and
infrastructure, the international producer contributing with marketing, distribution etc.

Revenue from Animation Industry (in USD Million)

Animation Industry Breakup 2008 2012
Animation Entertainment 107 207
Custom Content Development  256 542
Multimedia / Web Design

VFX 65 174
Animation Education 67 173

Future of Animation Industry

Indian animation by 2010

"India can be recognized as a key player in animation if you look at the industry as a
serious business and invest heavily in developing this space"
“India is emerging as a destination for outsourcing assignments from global studios such
as Walt Disney Pictures and Cartoon Network. Although most Indian production houses
still earn their bread and butter from low-end projects, some of the top companies are
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slowly moving up the value chain Availability of right skills and cost competitiveness
will lead Indian industry to potential growth. NASSCOM, the premier trade body and
'voice' of the IT software and service industry in India. The 'NASSCOM Study on
Animation and Gaming Industry in India' was unveiled at the event. In the period of 2002
it was in nascent stage, the animation industry in India has not been very stable.However,
it is stepping into the next era of development. The though countries like South Korea
and China were far ahead of India in this space, India had the potential to be recognized
as an animation hub, if certain factors like education facilities, funds, infrastructure and
constant development of original content were stressed upon. The Indian animation
industry today stands at Rs 16 billion, and is projected to grow to Rs 42 billion by 2009.
Animation in India is currently riding on two key factors - a large base of highly skilled
labor, and low cost of production.
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Quality issues Of The Product

Film animation

In the early 1890s, Thomas Edison's Kinetoscope was invented. The history of film
animation begins with the earliest days of silent films and continues through the present
day.

The first animated film was created by frenchman Charles-Émile Reynaud, inventor of
the praxinoscope, an animation system using loops of 12 pictures. On October 28, 1892
at Musée Grévin in Paris, France he exhibited animations consisting of loops of about
500 frames, using his théatre optique system - similar in principle to a modern film
projector.

The first animation on standard picture film was Humorous Phases of Funny Faces by J.
Stuart Blackton in the year 1906. It features a cartoonist drawing faces on a chalkboard,
and the faces coming to life.

2-D Animations

To animate means to bring to life and communicate feelings through storytelling.

Students of all ages can create animations with new technologies. Telling a story that
communicates emotions to an audience involves deep thinking, creativity and reflection.
The old saying, “A picture says a thousand words,” is very true with animation because
the picture moves, and is alive. And there is usually other media such as sound to add
another layer of meaning.

3-D computer animations

3-d computer animation is the projecting of two-dimensional pictures one after the other
which are rendered in the means of width, length and depth in the space supplied by
computer software’s. 3-d computer animation has some characteristics that are different
from the traditional animation in terms of method and techniques. By the user’s
commands, the computer calculates the details like movement, color, light, and
 P a g e | 19

perspective of the objects on the created visual stage accurately and gives the outcome as
an image. Animator plans the model, which is thought to be on the stage with architecture
sensitiveness, chips into shape with a skill of sculpture, makes it move in aesthetic way
by the help of observation, experience and creativeness. While doing this work, his/her
brush is digitalizes like mouse and keyboard, his/her canvas is computer screen. His other
tools are like modeling, metamorphosis, giving movement; primitive objects, camera,
lighting and color materials that the software enables
 P a g e | 20

HR Specification
Till date Indian animation industry has around 20000 professionals available in the
market, at this consistent rate of growth we might require around 2 lakhs animated
professionals by the year 2008. Apart from the desired technical skills, animation
professionals must have innovative, artistic thinking along with colour sense and picture
motion ideas. This has been a major task for hiring the right professionals. So, we have to
have the training unit along with the development unit, which trains and grooms the
candidates on the required skill sets to build a body of manpower talent to fuel the growth
of animation market.

 2 Offline editors
 4 Online editors
 2 Sound designers
 2 Music composers
 75 3D animators/compositors
 3 Project Managers/Producers

Unlike the IT industry it doesn’t require only technical professionals; it provides

employment opportunity to even a 10th class drop out too. This is a great opportunity for
talented individuals from rural areas to make progress. Starting salaries in animation are
close to Rs 6,000 to Rs 6,500 and once you gain experience and are good it could go upto
Rs 35,000.
 P a g e | 21

Government Rules & Laws

Ministry of Finance and State Administration of Taxation jointly announced on the 31st
of supporting the development of animation industry of the tax policy, specifically from
this year the domestic animation industry in value-added tax, enterprise income tax, sales
tax, import tariffs and import value-added tax and other tax benefits enjoyed and
emphasis on encouraging domestic animation industry, the ability of independent
innovation.
Published in accordance with the two departments "cartoon on the support of industrial
development policy issues related to taxation," which in the value-added tax, the
December 31, 2010.
Corporate income tax, the two departments clearly identified by the independent
development of the animation business, the production of animation products, may apply
for the state's software industry to encourage the development of the existing income tax
preferential policies.
In sales tax, according to a notice on the animation business for the development of
animation products for the preparation of the animation scripts, image design,
background design, animation design, sub-mirror, animation, film, tracing lines, color,
picture synthesis, dubbing, scoring, sound synthesis, editing, subtitling, compression
codec (for Web animation, mobile animation format adapter) services, in December 31,
2010 temporarily reduced rate of 3% sales tax.
In addition, the notice also pointed out that the relevant departments by the State Council,
the animation company that self-development, production animation direct product, of
imports of goods needed to enjoy exemption from import duties and import value-added
tax preferential policies.
Enjoy tax benefits on the animation business and self-development, production animation
products and found that the standard procedures, clear the two departments in accordance
with the relevant departments of the Ministry of Culture in December 2008 issued the
"management approach that animation companies (Trial ) "implementation.
 P a g e | 22

The status quo for the domestic cartoon industry, released in 2006, "Office of the State
Council transmitted on the Ministry of Finance and other departments to promote China's
cartoon industry to inform the development of a number of comments" made clear
China's cartoon industry development goals. Through increased investment and financing
to support the implementation of tax incentives to support the animation industry bases
and personnel training, such as a series of policies to promote and strive to use 5 to 10
years, so that domestic production of original animation substantial increase in product
quality significantly improved ability to continue to enhance technological innovation,
quality work will continue to emerge, creating animation industry development and
production capacity among the world of big and powerful animation ranks gradually
occupy the major market, actively explore the international market.
 P a g e | 23

Marketing Techniques
 Visual advertisement through Electronic media on different channels
 Through Seminars
 Free Summer Camps
 Through Gaming Zones
 Animation movies and Computer games
 Special proposal for Film Industries
 Audio advertisements through various F.M channels
 Internet Advertisements
 Newspaper advertisements
 Advertisements through pamphlets hoardings
 P a g e | 24

Leader Companies and Competition

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:

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 &
 P a g e | 25

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 Nelson’s Crippled Lamb and Little Dogs
on the Prairie. It also has to its credit some work done for Walt Disney.

6. Padmalaya Telefilms, Mumbai is a unit of India’s largest listed media firm, Zee
Telefilms. It is expected to make 104 cartoon episodes for US$ 14 million and distribute
Mondo’s 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 Planet’s 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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Competition

India has around 10 major studios who gets outsourced work from US/Canada/UK and
Japan

1. Crest Communication, Mumbai. (250-400 Staffs _Oldest and strongest)

2. DataQuest, Hydrabad. (150-250 Staffs)
3. Prana, Mumbai. (100+ Recently started)
4. Visual Computing Labs, Bangalore. (50-75 Staffs - From the house of TATA's)
5. JadooWorks, Bangalore. (150-250) (Sold to CGI Mantra_ Thats the hottest news now)
6. Toonz Animation, Trivandrum. (150-200 Mainly into 2D. Recently got a big project
from Korea)
7. Paprikaas Animation, Bangalore. (30-60)
8. Padmayala ZICA, MUmbai & Hydrabad (300+)
9. CGI Mantra (100+ Studio not yet started. Taking over JadooWorks)
10. Idea Studios, Hydrabad (Starting off)

The figures above are not actuals. Its a wild guess on the basis of the news and web
reports of these companies. Apart from these, there are several small small players who
work with less number of staffs. Maximum there can be 5000 people working on
Outsourced projects from other countries. Out of 100 Million population, just 5000 young
people are in the 3D Animation sector.

The Animation Industry of India has competition with the U.S companies like

1. Alphanim (the French independent animation production and distribution

company)
2. Amblimation (the animation production arm of Steven Spielberg's Amblin
Entertainment)
3. Barré Studio (1914-1923) (after 1917 called Bud Fisher Films Corporation)
4. Bill Melendez Productions
 P a g e | 27

5. Blye Migicovsky Productions

6. Bray Productions
7. Burbank Films Australia (1981-1988)
8. Chuck Jones Productions
9. Cinar (now Cookie Jar Entertainment)
10. DePatie-Freleng Enterprises (1963-1981)
11. Ellipse Programme
12. Filmation (1963-1989)
13. Fleischer Studios (1921-1942)
14.  Famous Studios (1942-1956)
15. Paramount Cartoon Studios (1956-1967)
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Case Study on Disney

Agenda
►About Disney
►Divisions of Disney
►A bit of History
►About the CASE
►SWOT Analysis
►Its Current Executive Management
 P a g e | 29

About Disney

► The Walt Disney Company (most commonly known as Disney) (NYSE: DIS) is one
of the largest media and entertainment corporations in the world. Founded on October
16, 1923 by brothers Walt and Roy Disney as a small animation studio.
► Today it is one of the largest Hollywood studios and also owns eleven theme parks,
two water parks and several television networks, including the American Broadcasting
Company (ABC).
► Disney's corporate headquarters and primary production facilities are located at the
Walt Disney Studios in Burbank, California, USA.
► The company is a component of the Dow Jones Industrial Average. It had revenues of
$31.9 billion in 2005
►On June 12, 2006 Disney Mobile phone service is launched
►On January 23, Disney announces a deal to purchase Pixar Animation Studios in an
all-stock transaction worth $7.4bn
►In July 2006, the Disney film Pirates of the Caribbean 2 is the highest grossing movie
in opening weekend history at $135,000,000 USD
►Employees: 133,000 (2006)
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Divisions of Disney
Media and Entertainment
 American Broadcasting Company
 Buena Vista Distribution
 Buena Vista Motion Pictures Group
 Walt Disney Studio Entertainment
 Walt Disney Parks and Resorts
 Disney Consumer Products

02/11/08

A bit of History
For more than eight decades, the name Walt Disney has been preeminent in the field of
family entertainment. From humble beginnings as a cartoon studio in the 1920s to today's
global corporation, The Walt Disney Company continues to proudly provide quality
entertainment for every member of the family, across America and around the world
 Disney Legends
The Disney Legends program was established in 1987 to acknowledge and honor the
many individuals whose imagination, talents, and dreams have created the Disney magic.
Since its inception, the program has honored many gifted animators, Imagineers, song
writers, actors and business leaders as having made a significant impact on the Disney
legacy
 The Walt Disney Family Museum
The Disney Family Museum Web site is produced and maintained by the Walt Disney
Family Foundation, a nonprofit organization. Founded in 1995, the Foundation strives to
promote education, writing, and scholarship about Walt Disney.
 P a g e | 31

11/08

About the CASE

The Walt Disney Company
►Is heralded as the world’s largest entertainment company
►Earned the reputation by tight control
►Although control pervades the company, it is not too strong a grip.

Strict control but independent

► Employees are aware of their prime objectives
► Have freedom to think beyond limit and come up with new innovative ideas
► Company have adopted the phrase “Dream as a team”
► The concept of independency tempered the control over each department
► Managers here do the great job of encouraging the imagineers and employees
► Imagineers have a brainstorming session called “Blue sky”
► Disney president Frank Wells believes that “If a good idea is there. You know it, you
feel it, you do it, no matter where it comes from”
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SWOT Analysis…
STRENGHTS
 Global Standardization
 Target Customer: Children
 Creative Process
 Popular Brand Name
 Diversification

WEAKNESSES
 High sunk cost
 Excessive Research & Development
 Constant Up gradation
 High Investment
 High Risk Factor

OPPORTUNITIES
 Merchandise
 Global Localization: Think global, Act Local
 Characters of national or regional appeal
 Cheaper alternatives to soft toys
 Disney Music Channel
 Disney School of Management/Training Institute
 P a g e | 33

THREATS
 Competitors: National, Regional & Global
 Employee Retention
 Highly Demanding in terms of Sales,
 Creativity and Innovation
 Unprofitable or hasty acquisition
 Brand Consistency
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Its Current Executive Management

Robert A. Iger
- President and Chief Executive Officer, The Walt Disney Company
CORPORATE BUSINESS UNIT
Walt Disney International : Disney Media Networks :
President Co-Chairman

The Walt Disney Company : The Walt Disney Studios :

Senior Vice President, Senior Chairman
Executive Vice President,
Executive Vice President
ABC : Co-Chairman and President

Disney Consumer Products :

Chairman

Walt Disney Parks and Resorts :

Chairman

Walt Disney Internet Group :

President
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Conclusion and Suggestions

Conclusion

 India has great brilliant future for animation industries.

 The animation production industry in India has the potential to grow into a major
export engine for the country.
 India cannot only catch up with competitors such as the
Philippines, Korea and Taiwan, it can easily exceed their potential.
 The industry is growing.
 All it needs is the right kind of support.

Suggestions

 Recruit local animators, train them well and start production.

 Provide In-house training.
 Start off training centers.
 Bring down the top level people from US who will manage the complete
workflow.
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Bibliography

 http://www.managementparadise.com/forums/basics-computers-p-c/43103-
project-animation.html
 http://en.wikipedia.org/wiki/Animation
 http://indiabusinessweek.com/Industries/Computers/animation.html
 http://www.scribd.com/doc/17342633/Overview-Animation-Indutry