Global Animation Industry 2015: Strategies, Trends and Opportunities

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1 Brochure More information from Global Animation Industry 2015: Strategies, Trends and Opportunities Description: The rapid advancement of technology has made computer animation available to the masses and the animation industry is one of the fastest growing industries. The demand for animated entertainment has expanded with the increase in broadcasting hours by cable and satellite TV along with the growing popularity of the Internet. In the past, animation series were aimed at children aged nine and below. In recent years however, TV stations have been producing animation series for teenagers, adults and the whole family. Animation series like The Simpsons and King of the Hill have been successfully aired on primetime TV. The major markets include the United States, Canada, Japan, France, Britain and Germany. Licensing operations for T-shirts, caps and other items have also been a major source of revenue for animation companies. In Japan, several successful computer games have crossed over and have become animated series like Pokemon, Monster Farm, Power Stone and Detective Conan. More broadly speaking, animation is increasingly used in video games, and movies are also increasingly reliant on animation and computer graphic special effects. Another key trend we are witnessing is the outsourcing of animation content to Asia. This market is increasingly being tapped by North American film and television program producers. The major factor behind this shift of computer animation production to the Asia/Pacific region continues to be the availability of low cost, powerful computer animation platforms and much lower labour rates in the Asian and Pacific Rim countries compared to North America and Europe. The bulk of the outsourcing happens for 2D animation content with some amount of 3D content. ECONOMICS OF ANIMATION COPYRIGHTS Animators face a long and daunting obstacle race to bring their works to market. First they must find a producer prepared to speculatively develop and package the work to an offerable stage. This typically involves the creation of a 'pilot' episode or sequence, plus extensive artwork, scripts and the gathering of commitments from key production facilities and personnel. Next the producer must secure an international consortium of broadcasters, distributors and sales agents prepared to commit to the production - international because no single, local market outside the US offers prices sufficient to underwrite a major animated work. The buying consortium in turn must be supported by a panel of investors or lenders prepared to cashflow production against the consortium's 'presale' and distribution commitments, which are normally contingent on delivery of the finished work. Even at this stage, there is typically a shortfall or 'gap' between the production cost and the presale commitments, which must be met by a third-party investor or else absorbed by the production team in the form of wage deferrals or the foregoing of profits. Only then, often after many years of effort, can the work attempt the final hurdle, of consumer acceptance. From an economic perspective, the creation of copyright works is a tenuous enterprise, characterised by high levels of risk and low average rates of return. This is not merely a local perspective: it is the same for copyright creators the world over. Even the Hollywood studios earn only a break-even return on their copyright investments, and rely on the 'upstream' profits of distribution for their corporate viability. DYNAMICS OF COPYRIGHTS How can such low average profitability be reconciled with the tremendous popularity of movies, animations and other copyright-based entertainments? To answer this question requires an assessment of the dynamics of copyright markets, noting in particular: - The long chain of intermediaries linking creation with consumption, each deducting their costs and profits before the remainder is passed on. The copyright market resembles a pyramid where the revenues flow from the top to the various entities below. - The zero-pricing of entertainment products in the main, free-to-air television markets, which are fully funded by third-party advertisers, so that consumers pay only by their attention to the advertising messages. Customers do a trade-off, whereby consumers accept their preferences in return for free entertainment. Web-based subscriptions systems may overcome this approach in the future. - TThe market power of ruling intermediaries who are the broadcasters and distributors who dominate the world market for content. Globally, there are about five or six corporations which between them command per cent of the main media markets; locally, their power is further concentrated so that a

2 matrix of international media power would show a cross-linked and vertically-integrated network of interests. Contents: 1. Global Animation Industry History and Evolution Industry Differentiators Industry Characteristics ANIMATION INDUSTRY SUPPLY CHAIN ROLE OF TECHNOLOGY MERCHANDISING OPPORTUNITIES DISTRIBUTION OF ANIMATION CONTENT COMPETITIVE LANDSCAPE OF ANIMATION STUDIOS RISKS FACED BY ANIMATION STUDIOS DEMAND DRIVERS OF THE INDUSTRY GLOBAL CHARACTERISTICS AND DRIVERS FOR SUCCESS Market Opportunity Global Animation Studios: Distribution and Capabilities 2. Animation Segments Market Segmentation 2D ANIMATION COMPUTER GENERATED IMAGERY (CGI) VISUAL EFFECTS WEB ANIMATION CORPORATE SERVICES Computer Games CROSS OVER BETWEEN GAMES AND MOVIES Computer Generated Imagery (CGI) PRODUCING CGI ANIMATION ADVANTAGES OF CGI ANIMATION DISADVANTAGES OF CGI ANIMATION INFLUENCE OF CGI ON CEL ANIMATION CHALLENGES CRITICAL SUCCESS FACTORS FOR CGI PRODUCTIONS Stop Motion Motion Capture 3D Animation Movies KEY TRENDS, OPPORTUNITIES, FORECASTS 3. Forecasting Animation Content Demand Animation Content demand from TV Channels in Europe Animation Content demand from TV Channels in the US and Canada Animation Content demand from TV Channels in Asia Animation Content demand from TV Channels in Latin America Animation Content demand from TV Channels in Rest of the World

3 Total Animation Content demand from TV Channels Worldwide Size of the Global Animation Industry 4. Future Developments Key predictions for the future 5. Animation Software Industry 2D Animation Software Market Animation Workflow using 2D animation package 3D Animation Software Market INDUSTRY OVERVIEW 3D ANIMATION SOFTWARE MARKET SEGMENTS FREE ANIMATION SOFTWARES PLUG-INS TO PRODUCTS Analysis of key players in 3D Animation Software Market MARKET SIZE MARKET SEGMENTS Japanese Anime Production Softwares PROMINENCE OF 2D RETAS - SOFTWARE FOR ANIME PRODUCTION MANGA STUDIO - SOFTWARE FOR MANGA PRODUCTION Proprietary 3D Softwares of Animation studios Collaboration between Animation Studios and Software Firms 6. Animation Content Creation Content Creation Workflow in 2D Animation CONCEPTUALIZATION PRE-PRODUCTION PRODUCTION POST-PRODUCTION Content Creation Lead Time Calculation in 2D Animation SCANNING AND FILTERING INK AND PAINT COMPOSITING AND DOPESHEET PREPARATION Digital processing in 2D Animation WORKFLOW PRECEEDING DIGITAL PROCESSING Content Creation Workflow in 3D Animation CONCEPTUALIZATION PRE-PRODUCTION PRODUCTION POST-PRODUCTION PARALLEL ACTIVITIES Time Line of a Sample 3D production workflow Animation Software usage in 3D Production Workflow Animation Production Management GOVERNANCE TASK DIVISION AND PEOPLE ALLOCATION TECHNOLOGY 7. Audience Dynamics Marketing Strategies for Animation Studios MARKETING PROGRAM PROFILING AND TARGETING THE RIGHT AUDIENCE Strategies for Successful Animation Films BEST PRACTICES IN CHARACTER DESIGN LESSONS FROM PAST MISTAKES Profile of a 3D Animation Studio: Pixar PIXAR S TECHNOLOGICAL ADVANTAGE 8. Economics of Animation Revenue break-up across distribution channels Marketing to Exhibition MARKETING

4 LICENSING MERCHANDISING DISTRIBUTION EXHIBITION Economics of Animation Copyrights DYNAMICS OF COPYRIGHTS 9. Guidelines for Setting up an Animation Studio Investments Needed for Setting up an Animation Studio Specialised Hardware and Software Investments 10. Managing an Animation Studio Key Issues of Concern Formulating the Long Term Strategy 11. Animation Content Outsourcing Offshore Computer Animation Production BUSINESS AND REVENUE MODELS Drivers 12. Animation Industry in Europe Winds of Change DEMAND FOR TV CONTENT FEATURE FILM INDUSTRY IN EUROPE MARKETING AND MERCHANDISING Collaboration among European Studios Drivers for Success Trends in Europe Germany SIZE OF ANIMATION INDUSTRY IN GERMANY CHANGING STRATEGIES KEY PLAYERS IN THE INDUSTRY UK SIZE OF ANIMATION INDUSTRY IN THE UK INDUSTRY SUCCESS KEY PLAYERS IN THE INDUSTRY Italy SIZE OF ANIMATION INDUSTRY IN ITALY KEY PLAYERS IN THE INDUSTRY France SIZE OF ANIMATION INDUSTRY IN FRANCE KEY PLAYERS IN THE INDUSTRY Spain SIZE OF ANIMATION INDUSTRY IN SPAIN KEY PLAYERS IN THE INDUSTRY Denmark KEY PLAYERS IN THE INDUSTRY 13. Animation Industry in USA Market Size Production and Post-Production Market MARKET SIZE KEY TRENDS Animation Value Chain 14. Asian Animation Industry Establishment of Local Animation Industry Early Trends in Animation Outsourcing to Asia ANIMATION OUTSOURCING IN CHINA ANIMATION OUTSOURCING IN INDIA ANIMATION OUTSOURCING IN SOUTH KOREA

5 ANIMATION OUTSOURCING IN PHILIPPINES ANIMATION OUTSOURCING IN TAIWAN ANIMATION OUTSOURCING IN VIETNAM Local Content Productions Trend towards Co-Productions CO-PRODUCTIONS IN JAPAN CO-PRODUCTIONS IN CHINA CO-PRODUCTIONS IN KOREA CO-PRODUCTIONS IN INDIA CO-PRODUCTIONS IN TAIWAN CO-PRODUCTIONS IN PHILIPPINES CO-PRODUCTIONS IN SINGAPORE CO-PRODUCTIONS IN MALAYSIA Popularity of Foreign Animation Controversies Surrounding Foreign Animation PHILIPPINES SINGAPORE KOREA MALAYSIA INDONESIA Animation in Asian Societies Successful Business Models Animation Studios in Asia 15. Animation Industry in Africa EGYPT KENYA ALGERIA SENEGAL ZIMBABWAE NIGER IVORY COAST GHANA CONGO BURKINA FASO 16. Animation Industry in Japan MARKET OVERVIEW COLLABORATION BETWEEN JAPANESE AND OVERSEAS STUDIOS OUTSOURCING TO OTHER COUNTRIES SUCCESSFUL BUSINESS MODELS CHALLENGES Anime Exports OVERSEAS INFLUENCE OF ANIME Globally Successful Japanese Animes THE POKEMON PHENOMENON Japanese Anime Production Models PROMINENCE OF 2D Future Trends 17. Animation Studios in Japan Animation Industry in South Korea Emergence of the Industry Functioning of Korean Animation Studios Changing Business Models GOING BEYOND SUBCONTRACTING INVESTMENTS BY INDUSTRIAL GROUPS CHANGES IN INDUSTRY STRUCTURE SUCCESS IN OTHER COUNTRIES Current State of the Industry GOVERNMENT SUPPORT COLLABORATION WITH OVERSEAS PARTNERS

6 KEY TRENDS LOCAL CONTENT Market Opportunity SIZE OF THE KOREAN ANIMATION INDUSTRY Future Outlook Animation Schools in Korea Animation Studios in Korea 18. Animation Industry in Canada Industry Drivers ANIMATION FUNDING Strategies for Animation Studios in Canada Data on Animation Studios in Canada 19. Animation Industry in Australia Competition from Asian Studios Government Support Strategies for Animation Studios in Australia Animation Studios in Australia Animation Movies in Australia Animation Schools in Australia Animation Studios in Australia Animation Industry in Argentina LOCAL CONTENT 20. Animation Studios in Argentina Argentina s first 3D Animated Feature Film Government Support Industry Drivers Industry Opportunities Strategies for Animation Studios in Argentina Data on Animation Studios in Argentina 21. Animation Industry in Brazil LOCAL CONTENT Animation Studios in Brazil Brazil s first CGI Animated Feature Film Brazil first TV animation series Government Support Industry Drivers Industry Opportunities Strategies for Animation Studios in Brazil Data on Animation Studios in Brazil Animation Industry in Colombia 22. Animation Studios in Colombia Industry Drivers Industry Opportunities Strategies for Animation Studios in Colombia Data on Animation Studios in Colombia 23. Animation Industry in South Africa Animation Studios in South Africa

7 South Africa s first Animated Feature Film South Africa s successful 3D Feature Film Government Support Industry Drivers Industry Opportunities Strategies for Animation Studios in South Africa Data on Animation Studios in South Africa 24. Animation Industry in Mexico LOCAL CONTENT Animation Studios in Mexico Animation Schools in Mexico Mexico s 3D Animated Feature Films Government Support Industry Opportunities Industry Drivers Strategies for Animation Studios in Mexico Data on Animation Studios in Mexico Figures and Tables Figure 1: Early Animations Table 1: Animation Movies Adapted From Television Figure 2: Animation Industry Activity Flow Figure 3: Animation Industry Supply Chain Figure 4: Early CGI Based Animations Table 2: Live Action Movies Featuring CGI Characters Table 3: Top Grossing Animation Movies Figure 5: Size Of Global Animation Industry Figure 6: Geographical Break-Up Of The Global Animation Industry Figure 7: Geographic Distribution Of Animation Studios In The World Figure 8: Break-Up Of Animation Studios Based On Capabilities Table 4: Leading Animation Studios In The World Table 5: Animated Feature Films From Prominent Studios Figure 9: Break-Up Of Global Animation Industry Based On Market Segments Table 6: Games Based On Animation Movies Table 7: Movies Based On Video Games Table 8: CGI Feature Films Table 9: Top Grossing CGI Animation Movies Of All Times Table 10: Prominent Stop Motion Animation Movies Table 11: Prominent Motion Capture Movies Figure 10: Global Box Office Revenues Of 3d Movies Figure 11: Box Office Revenues Of 3d Movies In North America Figure 12: Growth Of Global 3d Screens Figure 13: Number Of 3d Movies Released Globally Table 12: Prominent 3d Animation Movies Table 13: Top Grossing 3d Animation Movies Of All Times Table 14: 3d Animation Movies In The Top 20 Grossing Movies Table 15: 3d Television Channels Table 16: Animation Content Demand Forecast TV Channels In Europe Figure 14: Break-Up Of Animation Content Demand By TV Channels In Europe Figure 15: Cable TV Watching Pattern In The Us Table 17: Animation Content Demand Forecast TV Channels In The Us And Canada Figure 16: Break-Up Of Animation Content Demand By TV Channels In The Us And Canada Table 18: Animation Content Demand Forecast TV Channels In Asia Figure 17: Break-Up Of Animation Content Demand By TV Channels In Asia Table 19: Animation Content Demand Forecast TV Channels In Latin America Figure 18: Break-Up Of Animation Content Demand By TV Channels In Latin America Table 20: Animation Content Demand Forecast TV Channels In The Rest Of The World Figure 19: Break-Up Of Animation Content Demand By TV Channels In Rest Of The World

8 Table 21: Worldwide Animation Content Demand Forecast TV Channels Figure 20: Break-Up Of Animation Content Demand By TV Channels Worldwide Figure 21: Global Animation Industry Break-Up Based On Applications Table 22: Classification Of Animation Softwares Table 23: Leading 2d And 3d Animation Softwares Table 24: Key Players And Their Products In 3d Animation Software Market Table 25: Free Animation Softwares Table 26: Pricing Structures Of Animation Software Packages Figure 22: Commercial 3d Animation Software Market Size Figure 23: 3d Animation Software Market Break-Up By Segment Figure 24: 2d Animation Production Workflow Figure 25: 3d Animation Production Workflow Figure 26: 3d Animation Workflow Using 3d Software Figure 27: Pixar s Productions Figure 28: Animation Movie Marketing Cost Break-Up Table 27: Cost Break-Ups Of Leading Animation Movies Table 28: Capital Expenditure For Setting Up An Animation Studio Table 29: Profile Of Employees Required To Manage The Studio Figure 29: Size Of Animation Industry In Germany Table 30: Animation Studios In Germany Figure 30: Size Of Animation Industry In The UK Table 31: Animation Studios In The UK Figure 31: Size Of Animation Industry In Italy Table 32: Animation Studios In Italy Figure 32: Size Of Animation Industry In France Table 33: Animation Studios In France Figure 33: Size Of Animation Industry In Spain Table 34: Animation Studios In Spain Table 35: Animation Studios In Denmark Table 36: Leading Animation Studios In The Us Table 37: Leading Animation TV Channels In The Us Figure 34: 3d Animation Salaries In The Us Figure 35: 2d Animation Salaries In The Us Figure 36: Flash Animation Salaries In The Us Figure 37: Gaming Salaries In The Us Table 38: Key Animation Studios In Asia Figure 38: Earliest Egyptian Animation Production Figure 39: Egyptian Animation Productions Figure 40: Kenyan Animation Productions Figure 41: Senegalese Animation Productions Figure 42: Africa s First Animated Feature Film Figure 43: Zimbabwean Animation Productions Figure 44: Early Niger Animation Productions Figure 45: Early Ivory Coast Animation Productions Figure 46: Ghana s Animation Productions Figure 47: Congo Animation Productions Figure 48: Early Burkina Faso Animation Productions Table 39: Most Popular Japanese Animation Movies Figure 49: Size Of Animation Industry In Japan Table 40: Leading Animation Studios In Japan Table 41: In-House Content Developed By Korean Animation Studios Figure 50: Size Of Korean Animation Industry Table 42: Animation Schools In Korea Table 43: Korea s Leading Animation Studios Table 44: Animation Studios In Canada Figure 51: Number Of Animation Studios In Canada Figure 52: Break-Up Of Animation Studios In Canada Based On Size Figure 53: Classification Of Animation Studios In Canada Based On Capabilities Figure 54: Break-Up Of Animation Studios In Canada Based On Applications Figure 55: 3d Animation Salaries In Canada Figure 56: 2d Animation Salaries In Canada Figure 57: Flash Animation Salaries In Canada Figure 58: Gaming Salaries In Canada

9 Table 45: Animation Studios In Australia Table 46: Animation Movies In Australia Table 47: Animation Schools In Australia Figure 59: Number Of Animation Studios In Australia Figure 60: Break-Up Of Animation Studios In Australia Based On Size Figure 61: Classification Of Animation Studios In Australia Based On Capabilities Figure 62: Break-Up Of Animation Studios In Australia Based On Applications Figure 63: 3d Animation Salaries In Australia Figure 64: 2d Animation Salaries In Australia Figure 65: Flash Animation Salaries In Australia Figure 66: Gaming Salaries In Australia Table 48: Original Animation Content Created In Argentina Table 49: Animation Studios In Argentina Figure 67: Argentina s First 3d Animated Feature Film Figure 68: Number Of Animation Studios In Argentina Figure 69: Break-Up Of Animation Studios In Argentina Based On Size Figure 70: Break-Up Of Animation Studios In Argentina Based On Capabilities Figure 71: Classification Of Animation Studios In Argentina Based On Applications Figure 72: Number Of People Employed In The Argentine Animation Industry Figure 73: Cost Projections Of Producing One Episode Of Animation Work In Argentina Figure 74: Annual Animation Content Output Of Argentine Animation Industry Figure 75: Break-Up Of Annual Animation Content Output Of Argentine Animation Industry Figure 76: 3d Animation Salaries In Argentina Figure 77: 2d Animation Salaries In Argentina Figure 78: Flash Animation Salaries In Argentina Figure 79: Gaming Salaries In Argentina Table 50: Original Animation Content Created In Brazil Table 51: Animation Studios In Brazil Figure 80: Brazil s First CGI Animated Feature Film Figure 81: Brazil s First Locally Produced TV Series Figure 82: Number Of Animation Studios In Brazil Figure 83: Break-Up Of Animation Studios In Brazil Based On Size Figure 84: Break-Up Of Animation Studios In Brazil Based On Capabilities Figure 85: Classification Of Animation Studios In Brazil Based On Applications Figure 86: Number Of People Employed In The Brazilian Animation Industry Figure 87: Cost Projections Of Producing One Episode Of Animation Work In Brazil Figure 88: Annual Animation Content Output Of Brazilian Animation Industry Figure 89: Break-Up Of Annual Animation Content Output Of Brazilian Animation Industry Figure 90: 3d Animation Salaries In Brazil Figure 91: 2d Animation Salaries In Brazil Figure 92: Flash Animation Salaries In Brazil Figure 93: Gaming Salaries In Brazil Table 52: Animation Studios In Colombia Figure 94: Number Of Animation Studios In Colombia Figure 95: Break-Up Of Animation Studios In Colombia Based On Size Figure 96: Break-Up Of Animation Studios In Colombia Based On Capabilities Figure 97: Classification Of Animation Studios In Colombia Based On Applications Figure 98: Number Of People Employed In The Colombia Animation Industry Figure 99: Cost Projections Of Producing One Episode Of Animation Work In Colombia Figure 100: Annual Animation Content Output Of Colombian Animation Industry Figure 101: Break-Up Of Annual Animation Content Output Of Colombia Animation Industry Figure 102: 3d Animation Salaries In Colombia Figure 103: 2d Animation Salaries In Colombia Figure 104: Flash Animation Salaries In Colombia Figure 105: Gaming Salaries In Colombia Table 53: Animation Studios In South Africa Figure 106: South Africa s First Animated Feature Film Figure 107: South Africa s 3d Feature Film Figure 108: Number Of Animation Studios In South Africa Figure 109: Break-Up Of Animation Studios In South Africa Based On Size Figure 110: Break-Up Of Animation Studios In South Africa Based On Capabilities Figure 111: Classification Of Animation Studios In South Africa Based On Applications Figure 112: Number Of People Employed In The South African Animation Industry

10 Figure 113: Cost Projections Of Producing One Episode Of Animation Work In South Africa Figure 114: Annual Animation Content Output Of South African Animation Industry Figure 115: Break-Up Of Annual Animation Content Output Of South African Animation Industry Figure 116: 3d Animation Salaries In South Africa Figure 117: 2d Animation Salaries In South Africa Figure 118: Flash Animation Salaries In South Africa Figure 119: Gaming Salaries In South Africa Table 54: Original Animation Content Created In Mexico Table 55: Commercially Successful Mexican Film Productions Table 56: Animation Studios In Mexico Table 57: Animation Schools In Mexico Figure 120: Mexico s First 3d Animated Feature Film Figure 121: Number Of Animation Studios In Mexico Figure 122: Break-Up Of Animation Studios In Mexico Based On Size Figure 123: Break-Up Of Animation Studios In Mexico Based On Capabilities Figure 124: Classification Of Animation Studios In Mexico Based On Applications Figure 125: Number Of People Employed In The Mexican Animation Industry Figure 126: Cost Projections Of Producing One Episode Of Animation Work In Mexico Figure 127: Annual Animation Content Output Of Mexican Animation Industry Figure 128: Break-Up Of Annual Animation Content Output Of Mexican Animation Industry Figure 129: 3d Animation Salaries In Mexico Figure 130: 2d Animation Salaries In Mexico Figure 131: Flash Animation Salaries In Mexico Figure 132: Gaming Salaries In Mexico Ordering: Order Online - Order by Fax - using the form below Order by Post - print the order form below and send to Research and Markets, Guinness Centre, Taylors Lane, Dublin 8, Ireland.

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