V I D E O • A G E JU N E 2 0 11 22 O u t s o u r c e & C o n q u e r BY ERIN SOMERS Outsourcing work to India has become such a common theme in the West that there was even a U.S. sitcom — the aptly titledOutsourced—about it on NBC TV network, although it was recently cancelled. In the entertainment sector, this trend is reflected in post-production work, special effects and in one genre of content above all others: animation. In recent years, India has stepped forward as a major player in the animation exportation game. As of 2010, a reported 300 animation houses staffed by around 12,000 professionals have pushed India into the top echelon of the animation-for-hire game for films, TV series, commercials and computer games. Since 2006, the industry has grown 25 percent, and as there seems to be no end in sight, is poised to one day displace China, Korea and the Philippines as the top inexpensive animation hub. At present, the animation business brings in the equivalent of more than U.S.$650- $700 million a year, and that figure is expected to grow to over a billion by 2013. Its strongholds are Mumbai (Bombay), Channai, Bangalore, Hyderabad and Thiruvananthapuram, but animation houses can be found all over. The main catalyst for the Indian animation boom was technological advancement. Computer animation platforms in Asia — like SGI, SoftImage and 3DMax to name a few — have become increasingly powerful, and the skilled workforce has increased, although not in sufficient number to meet demands. Entertainment juggernauts from all over the world including Imax, Walt Disney and Sony have taken note, and have begun outsourcing large amounts of content to the region. Biren Ghose, head of Bangalorebased Technicolor India and chairman of NASSCOM Animation and Gaming Forum (National Association of Software and Services companies, a trade organization that caters to the Indian software industry), summed up the Indian animation business thus: “There are several animation studios in India, and the number that are purely animation studios would easily exceed 100, with many others using CG for visual effects in the live action sphere.” Formerly known as Paprikaas Interactive, Ghose’s animation house has come 100 percent under parent company Technicolor’s control in the past few years. Ghose pointed to DQ, Toonz Animation, Prana, Tata Elxsi and Crest, in addition to Technicolor, as the major companies dominating the field. Indeed, Technicolor is a large operation — its new animation and gaming production facility staff is 1000 strong, and boasts the production of such highprofile projects as Nickelodeon’s U.S. series Kung Fu Panda as well as much of the CGI work on series Penguins of Madagascar. Competitor Toonz, which many rank as the number one company of its type, is responsible for a number of big budgets, notably The Adventures of Hanuman for Cartoon Network Asia and feature filmThe Adventures of Tenali Raman, which was sold in Europe, Asia, North America and Singapore. But big guys aside, there are also many smaller up-and-comers competing for a piece of the pie. One such firm is Digitoonz, which specializes in Flash, 2D, 3D and motioncomic animation from its home base in Noida, about 12 miles outside of New Delhi. While Digitoonz has only a modest-by-comparison staff of 100 animators, CEO Vikas Kumar noted that, like most Indian animation houses, his company’s biggest asset is its ability to deliver high quality product at a very low price. He stated, “Digitoonz leverages its Indian advantage of highly skilled talent and cost efficiencies. Our creative and production teams, client services, breadth of experience and technological savvy help us in surpassing client expectations.” For Kumar and company, keeping costs low is key. An animated feature film produced in the U.S. typically costs $100 million to $175 million, of which a large portion goes to paying highprofile voiceover talent. Still, celebrity voices aside, an estimated 80 percent of an animated film’s cost goes to labor, putting the cost of actual production in the $80-$140 million range. Meanwhile, the cost of labor for an animated film made in India ranges from $15 million to $25 million — a fraction of the price. The cost of labor breaks down to $125 per hour for an animator in the U.S., as compared to $25 per hour for an animator in India. Kumar noted, “There are very few companies working on Indian domestic content. We generally do overseas business.” Plus, when it comes to producing animation for the west, India is not alone: Japan, Korea and China all have booming animation industries of their own. Technicolor’s Ghose weighed in on the competition from other countries in Asia: “Japan has a cultural tradition for this art form and related arts. Korea paid its dues making content for others, but the big leap came when they could get support from the government and also sustain the publicity and coming out parties. China does not have a level playing field in that language and artists’ welfare and treatment are subject to bare minimums and sometimes transgress the limits set.” Kumar admitted that the three countries “are our competitors, especially China.” In the case of China, he shared Ghose’s opinion that, “they always quote very low but their services are not up to the mark because they are a non-English speaking country.” Despite the fact thatmostof its animation is commissioned by overseas producers, there is still a market, if a small one, for animation within India. Ghose estimated that, “Domestically produced content on air would be approximately 20 hours per annum at the maximum,” but pointed out that both volume and prices are getting better on a year-to-year basis. “We are just about scratching the surface when it comes to sales and business development,” he said of the domestic side. Meanwhile, Kumar pointed to several cartoon channels that air animated content in India, including Cartoon Network, Disney, Hungama, Pogo, Animax and Disney XD. Just a week ago, we enabled an innovative concept around an e-puppet, where a virtual car interacted with the audience and responded to questions, all with realistic lip synch and movements. This concept and the launch were a great hit, and also helped reflect the technological innovations that are built into these vehicles. VideoAge: Has animation in India created its own style (for example Japan’s big eyes) or will it do whatever clients want? S. Ramadorai: Well, this continues to be a topic of discussion in several animation forums across India. At this point in time there is no specific Indian style of animation. India continues to develop content as per client’s needs and requirements. Animation styles are usually said to be derived from the culture, target audience and content/story. Since India brings a culture of over 5,000 years of history, Indians can lean on great tales of the stories of Ramayana and Mahabharata, to animal stories and parables around Buddha to develop its own discrete content and style. We believe that possibly the new ways of showcasing these stories to audiences not just in India but worldwide will help us connect to all types of people and enable us to define a distinct Indian style. Currently Tata Elxsi is working on a feature film calledArjuna— a CG film for a Disney owned company, UTV. Based on the warrior prince from the Indian epic Mahabharata, Tata Elxsi has created a distinctive look with toon shaded (CG with a 2D look) characters contrasted against richly textured backgrounds — often matte painted. This kind of work might help India develop an ‘Indian style’ in the animation sphere! VideoAge: Executives in the international animation business complain that the TV animation business is shrinking, that competition is tough and that there is more supply than demand. What does this leave Tata? S. Ramadorai: This is an opportunity where Tata Elxsi can leverage its creative talent both in its Hollywood and India studios, and provide customers a unique benefit of lowered cost and international quality. VideoAge: Show business is different than engineering and it will bring Tata under more scrutiny simply because of more media coverage. Is Tata’s corporate culture ready for some show? S. Ramadorai: Yes, we are! Indian Animation Biz Brings Money, Takes Investments Technicolor’s Biren Ghose, chairman of Animation and Gaming Forum association (Continued from Page 20) Bollywood For Hollywood
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