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THE INDUSTRY: TECHNOLOGICAL CHANGES, PRODUCTION CHALLENGES, AND GLOBAL SHIFTS

DISSERTATION

Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University

By

Hyejin Yoon, M.A. *****

The Ohio State University 2008

Dissertation Committee: Approved by Professor Edward J. Malecki, Adviser

Professor Ettlinger Adviser Graduate Program in Geography Professor Darla K. Munroe

ABSTRACT

Animated have grown in popularity as expanding markets (such as TV and ) and new technologies (notably imagery) have broadened both the production and consumption of . As a consequence, more animated films are produced and watched in more places, as new “worlds of production” have emerged. The animation production system, specialized and distinct from production, relies on different technologies and labor skills. Therefore, its globalization has taken place

differently from live- production, although both are structured to a large

degree by the global production networks (GPNs) of the media conglomerates.

This research examines the structure and evolution of the animation industry at the

global scale. In order to investigate these, 4,242 animation from the Animation

Industry are used. The spatial patterns of animation production can be summarized as, 1) dispersion of the animation industry, 2) concentration in world cities, such as and , 3) emergence of specialized animation cities, such as Annecy and Angoulême in , and 4) significant concentrations of animation studios in some Asian countries, such as , South Korea and the Philippines.

In order to understand global production networks (GPNs), networks of studios in 20 cities are analyzed. Animation studios in these cities have formed different types of

networks - some global, some local, and some both global and local. In addition to

ii seeking lower production cost, other factors, such as institutions, business culture and cultural contents have affected the geography and strategies of animation studios throughout the world.

Keywords: cultural industries, animation industry, world city networks, global production networks (GPNs), technology, computer graphic imagery (CGI), globalization

iii ACKNOLEDGEMENTS

I could successfully complete this dissertation thanks to my advisor, Dr. Edward

Malecki. This dissertation would not have been possible without his patience, encouragements and thoughtful guidance. He is not only a great advisor but also a wonderful person. He is the reason that I joined the program in the Ohio State University.

I am deeply indebted to him.

I am grateful to my committee members, Dr. Nancy Ettlinger and Dr. Darla Munroe.

They provided me with invaluable advice and inspiration, and encouraged me to succeed in a whole new environment. Particularly, Dr. Ettlinger encouraged me to think and look outside the box and Dr. Munroe was so great in supervising me that I could stay on track.

I thank Dr. Becky Mansfield and Dr. Larry Brown for their thoughtful comments at the early stage of this research.

I also thank Dr. Kie-joo Hyung and the faculty members in the Department of

Geography Education at Dongguk University for their mentoring and support.

I express my thanks to the Department of Geography at the Ohio State University for the support.

I also owe a lot to my , Jae-Yong, Hyowon, Myong Jin, Hyun, Yongwan, Ho-

Seop, Gunhak and their family. In addition to these people, I am also grateful to my

iv colleagues in the department. I also wish to thank to my friend Eunhye for her cares for me.

Upon completion of my dissertation, I would like to thank my parents who gave birth to and raised me, and my parents-in-law who did the same thing for my husband

Woonsup. My beloved husband and my family including Hye-eun, Joon-han, Yuna and

Yu-seung deserve my sincere gratitude for their support and sacrifice throughout my life.

v VITA

March 18, 1972 Born – Seoul, Korea

February 1996 B.A. Geography Education, Dongguk University, South Korea

February 1999 M.A. Geography, Dongguk University, South Korea

1997~1999 Administrative Assistant, Department of Geography Education, Dongguk University, 2000~2001 Researcher, Department of Urban Management, Seoul Development Institute

2002~2003 Research Associate, Center for Urban and Regional Analysis, The Ohio State University,

2003 Teaching Associate, Department of Geography, The Ohio State University,

2004-2005, Research Associate, Center for Urban and Regional Analysis, The Ohio State University,

2005~2007 Teaching Assistant, Department of Geography, The Ohio State University

PUBLICATIONS

Research Publication

Park, S.A., Lee, S.H. and Yoon, H., 2001 The Policy Alternatives for Contracting Out in Seoul, Seoul Development Institute, 2001

vi Shin, C.H., Kim, R.H., Yoon, H. and Oh, E.J., 2000, Promotion Strategies of Cultural Industry in Seoul, Seoul Development Institute, ISDN 89-8052-212-6-93320.

Park Y.G, Kang, H.S, Song, Y.P. and Yoon, H., 2000, The Research of Agglomerative Venture Firms Region in Terms of Ecosystems, The Korea Chamber of Commerce & Industry.

Yoon, H., 1999, The network formation of small agglomerative industrial district, Space and Environment, 63(3): 41-52.

Yoon, H., 1997, The understanding of producer services, Journal of the Association of Korean Women Geographers. 3(2): 33-36.

FIELDS of STUDY

Major Field: Geography

vii TABLE OF CONTENTS

ABSTRACT...... ii ACKNOLEDGEMENTS...... iv VITA...... vi TABLE OF CONTENTS...... viii LIST OF TABLES...... x LIST OF FIGURES ...... xi

Chapters

1. INTRODUCTION ...... 1 2. LITERATURE REVIEW ...... 5 2.1. Introduction...... 5 2.2. Cultural industries...... 6 2.2.1. The growth of cultural industries...... 6 2.2.2. The distinctive characteristics of the cultural industries...... 8 2.2.3. Cultural industries vs. Creative industries ...... 12 2.3. World cities and global cities...... 14 2.4. Global production networks...... 17 2.5. Summary...... 19 3. THE ANIMATION INDUSTRY ...... 22 3.1. Introduction...... 22 3.2. ...... 24 3.2.1. From to (1887-1930) ...... 24 3.2.2. Expansion of the Market: depression of theatrical market and increasing demand on TV (1940s-1988)...... 26 3.2.3. The second heyday of the animation industry (1988- ) ...... 29 3.3. CGI (Computer-generated Imagery) animations (-2007)...... 30 3.4. Worlds of animation production ...... 34 3.4.1. The diversification of animation production...... 34 3.4.2. The diversification of animation production...... 36 3.4.3. The characteristics of animation production...... 42 3.4.4. Other production places: and India ...... 45 3.5. Conclusions...... 51 4. DATA AND METHODOLOGY...... 53 4.1. Introduction...... 53 4.2. The Animation World Network Data Base...... 54

viii 4.3. Methodology...... 58 4.3.1. Business type ...... 59 4.3.2. Animation specialty, style or technique...... 60 4.3.3. Types of animated work...... 67 4.4. Conclusions...... 69 5. WORLD CITIES OF THE ANIMATION INDUSTRY ...... 71 5.1. Introduction...... 71 5.2. World (global) cities ...... 72 5.3. World Animation Cities...... 76 5.4. Conclusions...... 89 6. GLOBAL PRODUCTION NETWORKS OF THE ANIMATION INDUSTRY ..... 91 6.1. Introduction...... 91 6.2. Networks of animation studios in 20 cities...... 92 6.2.1. ...... 94 6.2.2. India ...... 99 6.2.3. Europe...... 100 6.3. Global production networks of the animation industry ...... 106 6.3.1. Co-Production...... 108 6.3.2. Unbundling the animation production process ...... 109 6.4. Different types of production networks ...... 111 6.4.1. Global producers...... 111 6.4.2. National animation producers...... 112 6.4.3. Networking without Hollywood ...... 113 6.4.4. A focused network ...... 114 6.4.5. A locally embedded network ...... 116 6.4.6. Global subcontractor...... 117 6.4.7. A diversified global network ...... 118 6.5. Conclusions...... 119 7. CONCLUSIONS...... 121 7.1. Summary of Findings...... 121 7.2. Contributions of this study...... 123 7.3. Limitations ...... 124 7.4. Suggestions for Future Research ...... 125 BIBLIOGRAPHY...... 127 APPENDIX A: THE PROCESS OF ANIMATION PRODUCTION...... 145 APPENDIX B: ANIMATION STUDIOS: COUNTRY, LOCATION AND TYPES OF BUSINESS...... 152 APPENDIX C: CITIES OF WORLD ANIMATION STUDIOS...... 157

ix LIST OF TABLES

Table 3.1. Top animated films by total domestic box office revenue...... 33 Table 3.2. Characteristics of the animation industry ...... 44 Table 4.1. Contents of the Animation Industry Database...... 55 Table 4.2. Number of animation studios by country ...... 57 Table 4.3 Top 15 business of the animation studios...... 59 Table 4.4 Types of Specialties...... 61 Table 4.5. Types of projects/deliverable forms ...... 67 Table 5.1. Cities of animation studios ...... 77 Table 5.2. Cities of animation studios (Number of animation studios that have more than 8 studios 1 million population) ...... 89 Table 6.1. Numbers of animation studios in 20 cities with the list of clients...... 93 Table 6.2. Networks of animation studios in US...... 95 Table 6.3. Networks of animation studios in ...... 98 Table 6.4. Networks of animation studios in India...... 101 Table 6.5. Networks of animation studios in Europe...... 103 Table 6.6 Networks of animation studios in other cities ...... 105 Table 6.7. Top 5 cities in each network type ...... 106 Table B.1. Number of animation studios by country...... 153 Table B.2. Types of business ...... 155 Table C.1. Cities of world animation production ...... 158 Table C.2. Number of animation studios per 1 million population, for cities that have more than 8 total studios...... 162

x LIST OF FIGURES

Figure 3.1. Technological development in the ...... 23 Figure 3.2. Worlds of production...... 36 Figure 3.3. Two worlds of production between 1930-1980...... 37 Figure 3.4. Four worlds of production since ...... 39 Figure 3.5. revenue by source, 1981 and 2006...... 42 Figure 4.1 Animation Studios by Specialties (Traditional only) ...... 62 Figure 4.2 Animation Studios by Specialties (2D only)...... 63 Figure 4.3 Animation Studios by Specialties (3D computer animation only)...... 64 Figure 4.4. Animation Studios by Specialties (Traditional, 2D and 3D computer animation) ...... 65 Figure 5.1. The World Cities by GaWC ...... 73 Figure 5.2. World media cities...... 75 Figure 5.3. World animation cities: absolute number of studios ...... 81 Figure 5.4. World animation cities by per capita...... 87 Figure 6.1. Global producer/ client: Hollywood type...... 112 Figure 6.2. Hollywood subcontractor and high regional network: San Francisco...... 113 Figure 6.3. Networks of cultural closeness: Montreal ...... 114 Figure 6.4. Regional networks: Cardiff ...... 115 Figure 6.5. Locally embedded network: Chennai...... 116 Figure 6.6. Global subcontractor with strong regional and Hollywood networks Buenos Aires...... 117 Figure 6.7. Global subcontractor with various networks: Seoul...... 118 Figure A.1. The generalized production prodcess of the animation industry...... 149 Figure A.2. The production prodcess of 2D animation ...... 150 Figure A.3. The production process of 3D animation ...... 151

xi

CHAPTER 1

INTRODUCTION

The film industry, like many other cultural industries, is a growth sector of the

economy in developed countries and is characterized by a location pattern of agglomeration. Despite a large and growing global market for films, and the attraction of low-cost filming locations, production within this industry remains highly agglomerated

in traditional core regions, such as Hollywood in southern and

(Bombay or ) in India, with the recent emergence of a few satellite locations

where costs are lower. Basically, changes of the shooting locations have been carried out

by pursuing cheaper production cost, also by developments of technology (Scott 2005).

The animation industry, a growing sub-sector of the film industry, has adapted its

-dependent production system and has agglomerated in a few major countries,

such as the US and . Animation production also is concentrated but, at the same

time, processes which need labor-intensive efforts increasingly are subcontracted to firms

in other countries, such as South Korea. The animation production system is specialized

and distinct from film production, with different types of technology and skilled labor

from film production; therefore, animation is not as attracted to remote locations.

1 This research examines development, changes and situations within the animation industry at the global scale. This industry does not need, and is unlikely, to be global in its production. The success of hit films which used computer graphic imagery (CGI) has created a sharp dichotomy between traditional hand-drawn cel animation and CGI and their worlds of production.

Research on cultural industries has a relatively short history compared to other industries that contribute to regional development. Traditional manufacturing dominated discussions of regional development for a long time; however, interest in cultural industries has exploded during the past decade. Studies of cultural industries have tended to focus on two different spatial scales: the national scale and the city scale. For instance,

Scott (1997) has analyzed the spatial patterns of specific cultural industry sectors in the

US to illustrate the distinct characteristics of those patterns. Generally, the agglomeration of cultural industries at a few locations within national economies is a prominent characteristic.

The city level also has been the focus of much investigation. One place,

Hollywood, the capital city of the world picture industry, has been studied repeatedly, including the organization of studios and their employment patterns

(Christopherson and Storper 1989; Scott 2005). These studies have covered the changing location patterns of the motion picture industry and “runaway” production to low-cost filming locations. In general, the process behind these spatial patterns of cultural industries is not so different from that in other industries; that is, capital and labor are the most significant location factors (Pratt 2000).

2 This study contributes to understanding the historical and evolving location patterns

of the animation industry. Existing research has covered the location patterns of the

motion picture industry, especially the agglomeration of Hollywood. However, recent and important technological changes in the animation industry have not been addressed in

previous research. This study addresses three sets of research questions.

First, what the characteristics of the production of the global animation industry and how does the new digital technology change the map of the global animation industry?

Second, what are the spatial patterns of production in the animation industry? Are the spatial patterns of production in the animation industry similar to those of other cultural industries? Are animation studios concentrated in big cities? What countries play important roles in the global production of animation?

Third, what are the networks among the studios in the animation industry? What are

characteristics of these networks? Do studios in different locations differ in their global

production networks (GPNs)

To answer these questions and provide the background and examples of the global

animation production system, this research is organized as follows: In chapter two,

reviews of the literature and a definition of the key constructs of cultural industries,

debates on world cities and explanations of GPNs are presented. Then, history and

characteristics of the animation industry are reviewed in chapter three. The important

shift has been from hand-drawn animation to CGI. Chapter four explains the data and

methodology that will be used in this research. In chapter five, analysis of locations of

animation studios from the data base illustrates the animation production cities. Global

animation hubs and regional centers are presented. Chapter six focuses on global

3 production networks of twenty cities that are based on their clients’ locations and explains unique characteristics of each city as production places of the animation industry.

Lastly, chapter includes a summary and conclusions drawn from the findings of previous chapters. Also, this chapter points out limitations of the study and suggests directions for future studies.

4

CHAPTER 2

LITERATURE REVIEW

2.1. Introduction

Since the mid-1980s, many scholars have paid attention to how culture influences the regional or urban economy. They also have studied spatial patterns of economic activity in the “cultural economy.” The agglomeration of the movie-related industry in and near Hollywood has been the most attractive issue to both scholars and policy makers in recent years. is believed that cultural industries can make a positive impact to regional economies. In other words, culture – its production as well as its consumption – influences employment and economic growth at regional levels (Bassett et al. 2002).

This chapter reviews three different themes. First, previous studies on cultural industries are reviewed. Second, world cities/global cities have been studied following the enormous influence of globalization since the 1980s. Third, a recent research framework, global production networks (GPNs), is presented.

5 2.2. Cultural industries

2.2.1. The growth of cultural industries

Cultural industries are related to the entire spectrum from production to consumption.

Cultural products include aesthetic and symbolic forms. Culture is one of the indicators to

show “homogeneity” of a region. That is to say, culture and place cannot be separated.

However, much place-based culture has become “non place-based” globalized culture

(Scott 1997; Scott 2000a). Also, changes in the production system and the society, from

mass production to post-Fordism with flexibility, have brought diversification and

exploitation of niche markets for the changing needs and fickle tastes of individuals

(Throsby 1999; Throsby 2001; Scott 2000a; Drake 2003).

The cultural industries have been identified as a large and growing part of capitalist

economies. The recent growth of cultural industries is a result of several factors. The first

factor behind the growth of cultural industries is a change in the concept of culture. As

Pratt (1997a) illustrates, culture is deeply related to concepts of “civilization”,

“education” and “enlightenment” from the mid-nineteenth century. Thus many believe

that culture encompasses only “high culture”, such as classical music and . These

manifestations of culture have a very limited geography, confined to places, such as

opera houses and fine art galleries, where only a few people can enjoy the “culture”. For

instance, a symphony orchestra, an opera company and ballet company (SOB) and an art

museum are considered traditional cultural attractions of a city (Florida 2002).

The concept of culture has changed, however, since World War II in four ways

(Hesmondhalgh 2002). First, the proliferation of popular or “pop culture”, such as motion

pictures and non-classical music, has brought about the mass consumption of culture. 6 This change has been stimulated by young populations with high incomes. The mass

production of culture includes advertising, photography, pop music, films, cartoons, fashion, design, textile, toys and so on.

Second, culture has become an economic commodity, reflected in changes in policies toward culture (Lukinbeal 2004). Earlier cultural policies had the preservation and maintenance of high culture as the most important aims (Pratt 1997a). Consequently, public investment in culture has long been encouraged by local . In other words, culture is regarded as a profit sector through which places compete for tourists as

“competing localities” (Kong 2000). A new dimension of this competition is a result of the fact that many creative people are interested in “street-level culture”, which can only be consumed in particular places (Florida 2002). In other words, cultural industries have become sectors that can be profitable and beneficial to regional economies.

Third, growth of the cultural industries has exploded with the development of technology (Leyshon 2001; Power and Jansson 2004; Leyshon et al. 2005). Mass production of culture, in traditional and digital formats, including TV, film, printing and

MP3 music compression, are made widely available by the remarkable technological development of digital storage. In other words, the new technologies have given us new devices of art and made possible unlimited numbers of copies of songs, books, films and other cultural products. Regarding the impact of technology to cultural industries, these new innovations are adopted and diffused rapidly. Generally, early adopters are young and high-educated people (Hansman et al. 1999).

Fourth, based on all of the above factors, the emergence of both wide and niche markets has played a significant role in the expansion of the cultural industries. Scott

7 (2005) points out that “specialized cultural production” has been carried by cultural diversity. As explained, young people become the main consumers of the cultural industries, whereas old people, with a high level of purchasing power, remain an important part of consumption in the cultural industries (Norcliffe and Rendace 2003).

Therefore, technology and the existence of a variety of markets have attracted creative people and capital to cultural production. As a result, the cultural industries have become the one of the most important industries and turned into one of the main venues for competition among local governments. The growth of cultural industries is not a result of only one factor but of all the complex factors discussed above.

2.2.2. The distinctive characteristics of the cultural industries

As seen in the above discussion of the definitions of cultural industries, the cultural industries have diversified and complex characteristics. Overall, the cultural industries are considered as innovative, flexible, creative, idea-driven, constantly changing and risky industries (Banks et al. 2000; Hesmondhalgh 2002). Beyond these, the distinctive spatial pattern of the cultural industries is agglomeration (Schoales 2006). Agglomeration also has brought the spatial dispersion of these industries globally by the introduction of de-skilling processes in production system. Furthermore, changes of organization of the cultural industries have been observed. Two distinctive features, agglomeration and changes of organization, will be presented in this section.

8 2.2.2.1. Agglomeration economies

Many studies of the cultural industries have made efforts to find out the spatial patterns of the cultural industries. As illustrated earlier, these studies have adopted

employment analysis, especially the location quotient (LQ) technique, to explain the

concentrations of the cultural industries (Power 2002, 2003; Scott 1997; Pratt 1997a;

Scott 2000b). The scales of these studies range from cities and regions to comparisons

among countries. In this context, some cities or regions are specialized in the cultural industries and these spatial patterns and their success become the purpose of the cultural industries policy (Griffiths et al. 2003; Pratt 1997a; Garnham 2005). At the same time, their specialized products vary from region to region: book (publishing), jewelry, music, video games, film and , , and fashion design (Aoyama and Izushi

2003; Bathelt 2002; Ekinsmyth 2002; Rantisi 2002; Pollard 2004; Bassett et al. 2002;

Scott 1996; Pratt 2000; Norcliffe and Rendace 2003; Johns 2006a).

Cities that are well known as centers of the cultural industries, such as New York,

Paris, and Los Angeles, usually have the entire production system from production to

consumption (Scott 1999). Regarding the processes of locational patterns, localization of

the new industries is initiated by a historical event and then the clustering of new start-up

companies occurs in that location. The next process is dispersal: growth from core

regions to peripheries. Finally, a shift of the center of the industry may take place (Coe

2001; Scott 2000b).

Within a cluster, economic actors, firms, individuals or groups share their information

and learn tacit knowledge with the support of unique local institutions, customs and so on

(Cooke 2002; Asheim and Cooke 1999). Thus clusters and proximity are important 9 preconditions of building (formal/informal) networks (Sturgeon 2003; Henry and Pinch

2000). Large cities, such as New York and Los Angeles, are considered as important

places for innovation because individuals or economic actors create “buzz” in cities

(Storper and Venables 2002). Buzz is an important concept of communication to transfer

and exchange knowledge “within the same industry or and place or region” (Bathelt et al.

2004). However, proximity is not always important. It is possible to build especially

informal networks among small companies in rural areas (Kingsley and Malecki 2004).

The de-skilling of a cultural industry can result in the dispersion of production globally

and create new regional clusters (Scott 2004). The reason is that firms pursue profits by reducing production costs through vertical disintegration and outsourcing. Sometimes this outsourcing occurs within a region (city), but more commonly production moves to distant, low-cost locations.

Regarding the last two processes, similarities between the garment industry and the

motion picture industry can be observed (Coe 2001; Lukinbeal 2004; Gereffi and

Memedovic 2004). The technological development of communication has stimulated the dispersion of similar cultural content to other regions. Especially, shooting locations of the motion picture industry have been studied. The film industry, for instance, was a satellite production location with high dependency on Hollywood, but has become a hybrid industrial district, a “satellite-Marshallian district,” through active networks within the region ( Coe 2000; Coe 2001).

In general, the spatial patterns of the cultural industries essentially show

agglomeration with benefit of scale economies, but recent technology and communication development have facilitated location dispersion of the cultural industries

10 through opportunities to exploit reduced production costs in low-wage locations. Even

though this trend seems to support the perspective of globalization in the cultural

industries, the old-fashioned debates, such as north and south unevenness, remain

relevant (Gibson and Klocker 2004).

2.2.2.2. Changes of organization in the cultural industries

For a long time, the market of the cultural industries has been unstable, unpredictable

and fluctuating. Due to unstable market conditions, many firms in the cultural industries

have pursued higher profits and more creativity by turning to outside expertise rather than

having all personnel inside the company, which also may reduce the production cost

( Banks et al. 2000; Ekinsmyth 2002; Grabher 2002b). A specific creative project is staffed only through the completion of the project. To understand project-based systems, characteristics of the production system are as follows.

First, organization of project-based work has been practiced for a long time some industries including engineering and film production. This work is based on “temporary

systems” and contains various forms in terms of relationships with clients, forms of

organization and networks (Grabher 2002a). Second, inter-personal relationships are

more important than interfirm relationships, and regional clusters and their resources are very significant preconditions of project organization (Grabher 2002b; Hesmondhalgh

2002). Lastly, the goal of firms from projects is to improve profits with a reduction in sunk coast and risk, by moving the risk and uncertainty from the client to the freelancers

(Christopherson 2006; Ekinsmyth 2002). The reason is that freelancers are eager to succeed in the current project and demonstrate their capability for future work. If they fail 11 in the current project, they are unlikely to get the next opportunity. In this sense, unevenness and unbalanced power relations arises between large corporations and freelance, creative workers (Christopherson 2006; Ekinsmyth 2002).

At the same time, project-based practices promote agglomeration and bring about the spatial concentration of the industry in urban areas. Factors that influence location characteristics of the cultural industries are the networks of buyers, suppliers and labor and proximity to related industries. At this point, local inter-personal ties within a region are more important than inter-organization ties on international and global scales. The latter are more limited than those of the local-inter personal ties in a region (Grabher

2002b).

In sum, project-based production systems have brought positive characteristics in terms of innovation, different types of learning in the short term and regional concentrations of business within a region. At the same time, however, project-based organization also has negative features, such as unstable job conditions and unevenness of power between suppliers and customers.

2.2.3. Cultural industries vs. Creative industries

Earlier in this chapter, definitions and characteristics of the cultural industries were presented. Unfortunately, many recent studies do not distinguish the cultural industries and creative industries clearly. In this research, cultural industries will be used rather than creative industries. To show how they are different, explanations of the creative industries and then differences between the cultural industries and the creative industries will be illustrated in this part.

12 Recently, the concepts of creative industries, class and creativity have become hot

issues in the regional development field (Bakhshi et al. 2008; Yusuf and Nabeshima

2005). Of course, this is not a totally new concept, but is very “inventive” because of its

connections to everyday life (Florida 2002). The creative class emphasizes the amenities

and culture which attract people to some cities (Malecki 2004). In this sense, the concept

of creativity is connected to the urban areas directly and creative industries are

considered as a motor of urban economies. Also, based on agglomeration of creative

industries, cities become creative cities, a new basis for competitiveness (Scott 2006).

Creative cities emphasize the importance of services sectors, for example producer

services, such as , legal services and marketing rather than production

aspects (Donegan and Lowe 2008). With the diversification of industrial structure from a

manufacturing-based economy to a high-tech related service-oriented economy, creativity

has brought competitive advantage to some selected cities in the countries

(Florida 2002).

However, in debates regarding the term creativity, some believe that creativity is

emphasized too much. Recently, creativity is considered as a “panacea for urban

economic development problems” (Gibson and Klocker 2004). Policymakers exaggerate

the positive impact to economic development of cities. For instance, they overlook

polarization of the economy between high and low wage-jobs and “social marginalization” in urban communities (Scott 2006; Peck 2005; Gibson and Klocker

2004).

As explained above, the cultural industries and creative industries are frequently

considered as a single concept. However, technically these are not same. Usually high-

13 technology, bio-technology, and pharmaceutical industries are included in the creative

industries, but not in the cultural industries. Creative industries is considered a more

sophisticated term reflecting wider social changes in the (Garnham 2005).

The subsectors that are used in Florida’s book, The Rise of the Creative Class, should

be illustrated. Florida divides the creative class into two major sub-components: a super-

creative core and creative professionals. The super-creative class includes computer and

mathematical occupations, architecture and engineering occupations, life, physical and

social science occupations, education, training, and occupations and, lastly, arts,

design, , sports, and media occupations (p. 328). These occupations can

hardly be considered cultural in nature, except for the last set of occupations that are

related to arts. Furthermore, the creative professions also contain more service-oriented

occupations than the cultural occupations.

In sum, even though the creative industries encompass wider concepts that are

considered as very important and can provide well-defined and organized explanations to

regional competitiveness, cultural industries are more appropriate to this study.

2.3. World cities and global cities

Discussion on world cities and global cities traces back to Friedmann and Wolff

(1982) and Friedmann’s (1986) article, “The world city hypothesis.” In this account, world cities must include the following functions: corporate headquarters, financial centres and connections to world economies. This hypothesis leads to build a of cities. According to Friedmann, the hierarchy of cities is based on the different functions that each city has. In other words, cities in the highest rank in the hierarchy have more 14 functions than lower-ranked cities. For example, some cities are especially attractive to

multinational corporations. Multinational corporations prefer to choose these world cities for their headquarter locations or regional offices based upon a global strategy. In addition to this, world cities in high ranks are attracting high-skilled workers from all over the world, because jobs in the world cities need high-skilled labor. That is to say, command and control functions are concentrated on these world cities. This urban system can be considered as an extension of the spatial division of labor (Taylor 2004b). The

“core” and “periphery” issue is related to Wallenstein’s “world system theory”

(Wallerstein 1984). Therefore, North/South and East/West divisions appear in the world/ global city discussion and emphasize connections to the global economy as well as polarization.

Sassen also has contributed to the literature on world cities and global cities, preferring however to use the term global city (Sassen 1991, 2001). “The concept of the global city is more attuned to questions of power and inequality” (Sassen 2001, p. 80).

Taylor (2004b) has focused on the world city network, based on the locations of firms in advanced producer services. Especially “globalization” is more emphasized than before.

The role of global cities also is connected to not merely “command centers” but “global service centers”. In this context, the role of multinational corporations (or transnational corporations: TNCs) is the most influential on global cities and more industries such as finance services. Even though Sassen also uses the term, “network”, her discussion continues to hold “hierarchical urban system” rather than networks among world cities

(Taylor 2004b). In general, research on world cities or global cities compares the

15 standing or competitiveness among different places in the world, either overall or on the

basis of select urban functions or industries.

A large body of research on world cities is the product of researchers in the

Globalization and World Cities (GaWC) network. In addition to studies of advanced

producer services, other determinants of place attractiveness have been added. These

include transportation related indicators, especially on airline passengers (Taylor et al.

2007), locations of non-governmental organizations (NGOs) (Taylor 2004a) and flows of

high-skilled labor (Beaverstock 2002). Both of the main theoretical approaches – world

cities mainly by geographers and planners and global cities mainly by sociologists –

continue to generate research (Derudder 2006).

Studies on world cities and global cities have identified the capacities of cities under

globalization using diverse indicators, but these studies have some limitations. First, they continue to focus on the classification of world cities rather than the processes of formation of world cities. Most studies only show dichotomy and polarization of cities in the world. However, each city has uniqueness and its “political-economic processes” should be considered in research on the world cities (McCann 2004).

Second, studies on the world/ global cities have limited explanation of non-Western cities (Robinson 2002). Third, a small range of data and restricted data availability is a limitation of research on world cities (Short et al. 1996). Fourth, the basic determinants for world/global cites are advanced producer services, but development of creative industries and cultural industries have been overlooked. Production of cultural industries is a new type of economic activity that is deeply related to effects of agglomeration

16 economies in large metropolitan areas. Thus, the production side of the cultural industries

is an added dimension in contemporary urban economies.

In general, research on the world/ global cities has emphasized how globalization

influences changes of urban systems and showed inter-urban systems, but these

discussions also focus on rank of world cities as well as network and flows of people,

technology, knowledge and information.

2.4. Global production networks

The last framework of this study is global production networks (GPNs) (Coe et al.

2004). This research provides a framework for explaining agglomeration economies and

clusters within particular regions or industries as globalization has occurred.

Two different forces that have led to agglomeration: centrifugal and centripetal forces

(Roper and Grimes 2005). Various factors are centrifugal forces: pursuing lower production costs, reducing transportation costs and the increasing use of advanced telecommunication technology. In contrast, centripetal forces have been reinforced by spatial concentrations of skilled labor and by transaction costs, which are minimized in spatial agglomerations. Both forces have contributed to dispersion of industry globally as well as to the formation of clusters. As commercial and industrial activities have globalized, how aspects of globalized production are connected to each other has become a more and more important issue (Hess and Coe 2006).

First, the global commodity chain (GCC) framework includes commodity chains and sets of inter-organizational networks within the world economy in a world systems perspective (Gereffi 1994). In this framework, GCC investigates relationships between 17 firms using two types of commodity chains: buyer-driven and producer-driven chains.

Second, the global value chain (GVC) focuses on transaction economies and provides

comprehensive understanding of governance structures and global economy at a firm

level (Gereffi 2006).

These two frameworks give us insights into dynamics of networks under

globalization, but they overlook some aspects of current situations (Henderson et al.

2002). Neither GCC or GVC provide explanations of long-term or historical changes of

these chains and their primary concern is “currently existing chains”. In this sense, GCC

and GVC explain “simple” or “linear” flows of products or services. Thus GCC and GVC

largely overlook details of differences among the diverse products markets and different

levels of “how the fundamental structural and relational nature of production, distribution

and consumption of goods and services are organized” (Coe et al. 2008, p. 272).

Furthermore, they neglect nationality of firm ownership that can bring important

understandings of dynamic structures of global networks and their territorial aspects. In

addition to this, social, spatial and institutional aspects of globalized networks are not

illustrated by GCC and GVC. For example, supra-national organizations, such as NGOs, are not included in these frameworks. Flows within transaction spaces also seem to be complicated and winding webs rather than linear networks.

Global production networks (GPNs) were developed to address these limitations of existing frameworks, GCC and GVC. GPNs include four dimensional aspects: firms, sectors, networks and institutions. Based on these four dimensions, GPNs draw attention to “the organizationally and geographically complex webs of intrafirm, interfirm, and extrafirm networks that characterize contemporary production systems” (Hess and Coe

18 2006, p. 1207). In other words, GPNs identify the distribution of power among the

diverse organizations that are involved in production networks, including companies,

institutions and supra-national bodies. Furthermore, GPNs focus on broad aspects of

production networks – spatially and territorially as well as functionally. GPNs also

address the embeddedness of production networks in their regional contexts.

GPNs do not only connect firms functionally and territorially but also they connect

aspects of the social and spatial arrangements in which those firms are embedded and

which influence their strategies and the values, priorities and expectations of managers,

workers and communities alike (Henderson et al. 2002).

In order to understand global animation production and its outsourcing, the GPN

framework is helpful to make clear complex networks of the animation industry. Also,

GPNs provide a neat framework to comprehend intermingled production agents, including small and medium-size animation studios and supra-national business, such as

multinational media conglomerates, as well as local and national governments.

Regulations and institutions that are different in each country are important aspects of the

animation industry and these are part of the GPN framework.

2.5. Summary

In this chapter, three different literatures have been presented that are related to the

animation industry: cultural industries, world/global cities and global production

networks or GPNs.

First, the cultural industries are a relatively new issue in studies on economic

geography and have been developed coinciding with changes of production and 19 consumption from Fordism to post-Fordism. Development of technology also has

brought about a proliferation of niche markets in the cultural industries. The animation

industry shows some common characteristics with the cultural industries, as later chapters of this dissertation will show.

Second, the literature on world cities and global cities shows establishment of urban systems under globalization. Some functions are concentrated in a few cities, such as

New York, London and . These world/global cities dominate through their attraction to some industries, mainly in advanced producer services and this dominance also represents high levels of regional competitiveness. In this context, globalization has led to flows of labor as well as polarization within places.

Third, studies on GPNs provide understanding of production networks of the animation industry and this is a useful tool for global production in the animation industry.

The geography of the animation industry can be explained by the combination of

these three theoretical backgrounds. The overriding locational patterns of cultural

industries is that big cites are the base of cultural industries. Thus studies of world cities

provide a perspective on the nature and networks of large cities. In addition to this, GPNs

provide an insight into the structure of the animation industry which is mainly controlled

by multinational corporations, especially a mall number of media conglomerates. The

megacities that are production sites of the animation industry are linked through the

structure of GPNs in the media sector.

The following chapter adds to these three theoretical frameworks reviewed in this

chapter by focusing on the specific historical context of the animation industry. In

20 addition, it shows how the evolution of technology has influenced the globalization of the

industry. Together, these two chapters provide a strong framework for an analysis of global animation production.

21

CHAPTER 3

THE ANIMATION INDUSTRY

3.1. Introduction

The development of technology has from the very beginning affected the growth of

the motion picture industry and the animation industry, as it has other cultural industries.

After the Lumière Brothers invented the cinematograph in 1895 in Lyon, France, the

motion picture industry and the animation industry evolved rapidly. The impacts of technological development have influenced not only the artistic purpose but also the form of the industry (Figure 3.1). The Lumière Brothers’ brought the birth of the new to the public. That is, the new technology shed light on the expanded market for performances and entertainment available to the motion picture industry.

Before this invention, theatrical performances were only for the few people who had leisure time and enough money to enjoy them. In other words, film also engendered a new concept: distribution.

Film makers who pursued profits from their works adapted themselves to this new environment and extended the market. Before the motion picture era, the producers had to pay actors and staff, and they had to be concerned constantly with unexpected events, such as an actor’s daily health and condition. However, once a motion picture is made, it 22 can be shown repeatedly in many places simultaneously. While the Lumière Brothers

promoted the diffusion of the new technology in Europe, Edison Manufacturing

Company and other competitors developed new technology for film exhibition, such as

multi-reel films in 1909 (Mieizas and Kuperman 2000).

As shown in Figure 3.1, new technology in the 1920s, such as and

adding sound, made the motion picture industry more popular. In parallel to the technological development of the motion picture industry, animation has experienced

technological change. The most significant technological change in the animation

industry is the use of computer graphic imagery (CGI). The next section explains more

details of the development of the animation industry, dividing the historical changes

Figure 3.1. Technological development in the film industry 23

of the industry into cel animation and CGI animation. The brief history of the animation

industry will be explained in terms of these two different technologies, the traditional

two-dimensional or 2D, and newer three-dimensional or 3D animations. The global

production of the animation industry also will be illustrated more in detail. The final

section of the chapter addresses the considerable power accumulated by the studios,

which have become the hubs of production and distribution.

3.2. Cel Animations

3.2.1. From New York City to Hollywood (1887-1930)

As the center of cinema moved to Hollywood, animation studios gradually

headed from New York to Hollywood. Once many worked for comic strips in

New York, but they started animation production with the development of cel animated

techniques by Bray and Hurd, patented in 1914 (McLaughlin 2001). Imitating and

improving upon this invention, many animators entered animation production and opened

their studios in New York City, which became the hub of this new industry. At the

beginning of animation and motion picture production, the New York-

metropolitan area was the main center of the film industry in terms of both production

and exhibition (Scott 2005). Companies such as Kleine Optical Company and Kodak

Film Company also influenced the concentration of the film industry. Furthermore, subsidiaries for both production and exhibition were found in and Philadelphia during the 1920s.

24 In the 1920s, however, some animators such as and Walt Disney1 moved to California, influenced by the moving of the whole motion picture industry.

Most big motion picture industry studios and independent studios found good weather conditions and cheap production costs in Hollywood, California, ideal for shooting locations. Thus, Hollywood itself was could be considered as the first “runway production” location (Scott 2005). However, since the headquarters of the major studios, such as MGM, Twentieth Century Fox, moved into California, a high level of of the industry evolved (Storper and Christopherson 1987). Therefore, major studios in Hollywood are both animation studios’ important clients and powerful distributors; thus animation could not stay away from major Hollywood live action film studios.

During this period, one of the most important technological changes in the film industry was introduced: adding sound to films (Acheson and Maule 1994). The first movie that had sound – the spoken words of actors – was in 1927. The introduction of sound also expanded the market of American films, because English already was spread throughout much of the world as a by-product of British and

American imperialism (Dixon and Zonn 2004). Furthermore, the production of “talkie” movies could be connected with the music recording industry through sales of original sound tracks.

As in motion pictures, the use of sound also affected animation. The person who first used sound in the animation field was (McLaughlin 2001; Brasch 1983).

1 Walt Disney, opened his studio, Laugh-O-Gram Films, in 1922 in his home town, Kansas City. After his studio became bankrupt, Disney moved it to Los Angeles, California in 1923. 25 Beginning with his successful sound animation film, in 1928, Mickey

Mouse became a widely popular animation character (Wright 2005). Thus the use of sound made animated films more popular and established animation as an important genre within the motion picture industry (Bendazzi 1994; Barrier 1999; McLaughlin,

2001). In summary, the early hub of the animation industry was New York, but relocation of the animation industry to California eventually occurred. Strong interrelationships between the business of live action film and the animation industry evolved.

3.2.2. Expansion of the Market: depression of theatrical market and increasing demand on TV (1940s-1988)

After many animation studios settled down in California, the “golden years” of cartoons began. The success of highlighted the importance of animated characters. During this period, other studios introduced their own characters, such as

Betty Boop and , and obtained great popularity (Bendazzi 1994). The expanded demand put pressure on the studios and, in turn, on their workers, to churn out more animated films. Labor issues arose, in part because the workers in the animation part of Hollywood studios were paid lower wages than other people who worked on live action films in the same studios (Barrier 1999; Lent 1998). During the early years of animation, there were many talented workers, but the studios gradually lost talent – not to competitors but to burn-out. The reason is that the repetitious and monotonous character

26 of the work made people tired easily, which conflicted with the tight production schedules and long hours of daily work based upon the Bray-Hurd system2.

The use of the Bray-Hurd system brought about an increase of production volume, but this system also changed labor characteristics from creative artistic animators to cheap and deskilled “assembly line elements” – with job titles such as “in-betweeners”,

“tracers”, “opaquers”, and “story personnel” with different salaries (Bryman 2000; Yu

1999).3 That is to say, Fordism of the animation industry had begun.

Protesting their low salaries, animators in Disney and other animation studios, such as

Max Fleischer’s studio, went out on strike in 1941 (Yu 1999).4 Besides this, a depression of the US film industry, which began in the 1950s with diffusion of television (TV) broadcasting, forced the animation studios in the US to find cheaper labor elsewhere.

These labor problems in Hollywood led to the global production of the animation industry beginning in the 1950s. The early off-shore production sites were Japan and

Eastern European countries (Solomon 1989).

In addition to labor concerns, the arrival of TV production and smaller theater audiences resulted in a decrease in profits and caused the decline of the entire film industry, so many studios eliminated jobs in the animation area during the 1950s. The case of MGM illustrates this trend clearly. The animation part of MGM was closed in

1957 and people shifted their jobs to TV. For instance, the animators Hanna and Barbera

2 Generally, animators, during the “Golden Years” made at least 23 feet or 276 finished drawings per week. Based on this minimum work load, animators did not have any vacation, health care etc. The average weekly work hour was 55 hours (Sito 2006). 3 The Bray-Hurd process accelerated the speed of animation production with remarkable efficiency but it needed a large amount of cheap labor (Yu 1999) 4 ’s studio is well known for Boop and cartoons. 27 were in the same studio in MGM, but after the MGM was closed, they

began to make TV animation independently (Burke and Burke 1999). Moreover, the

animation studios struggled with the lay-off of labor or complete shut-down of studios.

In general, agglomeration economies permit firms (studios) in Hollywood to achieve lower production cost because of proximity to other related firms or services. In addition, the abundance of high-quality labor, including freelancers, benefited from the size and diversity of the Los Angeles regional economy. Therefore, they can get the advantages of reduction of production cost and scale and scope economies, because freelance animators and other related firms were located near major animation studios in Hollywood (Barrier

1999).

After World War II, then, the overall trend in the motion picture industry was that the

number of cartoons that were shown in theaters decreased. However, the emergence of

TV presented a new opportunity to the animation industry. The development of the

television industry was aided by the supply of laid-off animators from Hollywood

(Barrier 1999). After World War II, TV sets diffused through the US (Mullen 2003). In this context, children’s cartoons became popular at first in Saturday morning programs, largely substituting for the shortage of animation in theatres5. The regular schedule of the

cartoons on television created continuous demand for animations which, together with

labor issues in the US, reinforced the global production of animation.

5 Based on the success of children’s cartoons on TV, adult cartoons, such as Fritz the Cat, were shown to the public in the 1970’s by , who had worked at . However, adult cartoons were not as successful on TV as children’s cartoons. His cartoons, such as Fritz the Cat and Coonskins, included too much satire and many people thought cartoons were for children and not for adults (Roman 2005). 28

3.2.3. The second heyday of the animation industry (1988- )

Since the 1950s, television networks have become significant customers of the animation studios, but a further opportunity for the market expansion came with a new technology: CGI. Before the 1980s, CGI was mainly developed in universities for academic purposes, frequently collaborations between experts in art and . An

artistic film, Hunger, an 11-minute short animated film, became the first Academy

nominated CGI film in 1974 (Jones and Oliff 2007). Eight years later, the memorable use

of CGI in animation began in 1982 in a 15-minute film by Walt Disney Studios,

(McLaughlin 2001). CGI had been used in motion pictures for special effects in the late

1970s, but use of CGI in some movies and short animations showed the possibility to

produce animated films using CGI.

During the 1980s, after a hiatus of two decades, 2D animated films were made for

theatrical exhibition again. The motion picture director, , produced a 2D

animation, An American Tale, in 1986. In addition to this animation, Who Framed Roger

Rabbit, which was not entirely for children’s audiences, was shown in in 1989

and its total gross was over $300 million at the box office. In the same year, Disney made

a feature-length animated film again for theatrical purpose, . Its

success in the theatres led Disney to continue with more animated films.6 This was the

beginning of of cartoons. Since 1989, Disney has presented at least one

animated film per year and has had huge success in both exhibition and selling video

tapes, DVDs and related items all over the world. That is, the development of home and

6 Beauty and the Beast (1991), (1992) and (1994). 29 personal electronic devices also enabled a post-exhibition market. The recent success of

Disney has accelerated competition with other studios in the animation industry, such as

DreamWorks. In addition to competition from US studios, animation studios outside the

US, such as the famous Japanese , have rushed into the global market and

expanded that market with diverse cartoons. In general, the depressed market of the

1970s has transformed into a boom since the late 1980s again and competition has

become fierce among the major studios in the US and other studios in foreign countries

with the development of technology.

3.3. CGI (Computer-generated Imagery) animations (1990s-2007)

The beginnings of computer animation trace back to the 1960s, but the monochromatic computer animation of the time was very simple compared to recent CGI animations. Early animation was usually made in laboratories in universities, such as

MIT’s Lincoln Lab, the , and the New York Institute of Technology, many funded by the Defense Advanced Research Projects Agency (DARPA) (Bendazzi

1994). The commercialization of CGI in the entertainment industry began in the 1970s,

when the CGI technique was mainly used for science (SF) movies and visual

effects (VFX) in wide of live action films. Increasing use of CGI in live action

films led to change audiences’ aesthetic view and widen participation of CGI in the film

industry. In addition, the first major use of computer animation in an animated film

appeared in The Great Mouse Detective (1986) by Disney studio (Jones and Oliff).7

7 Jones and Oliff (2007) claim that an animated film, The Black Cauldron (1985) used CGI before The Great Mouse Detective. 30 In the CGI production process, animations begin with 2D techniques in the

conceptualization stage, especially the design of the characters. If the director and

animators are satisfied with the designs in 2D, they move to the next step, modeling in

3D (Wright 2005).8 Besides the characters in the animation, other aspects, such as

backgrounds, pass through this stage. Usually, this step needs many skilled workers and

takes much longer time than cel-animated films. Consequently, production of CGI

animated films requires bigger budgets to finish a full-length film (Crawford 2003).

Because the large budgets and assembly of skilled CGI animators are high barriers to

entry, full-length CGI animations that are released in theatres are made by only a few

major companies, even though CGI techniques in special effects are much more

widespread. The CGI production process uses , not human hands, to

draw and color each frame, but the process is still somewhat labor-intensive. CGI brought

about a change from a need for animators who paint characters on each cel to animators

who have computer skills (Economist 2005; Crawford 2003).

These changes also have emerged in markets as well. In recent data, audiences

prefer CGI animation in box office. Table 3.1 shows the recent full-length films that had

the greatest success in the US market from 2004 to 2008 (April). Of the total 24 animated

films, CGI was used to produce 21 of them (87.5%). Only three non-CGI animated films

have been popular during the time.

In addition, major distributors, including DreamWorks, (Disney), Fox,

Warner Brothers, Paramount and , have made successes. Three studios, , Blue

8 “Characters can be modeled on a computer – often from basic geometric shapes – and the parts fused, or sculptures can be digitized as a wire-frame model” (Wright, 2005, p. 8). 31 Sky, and an Australian animation studio, Kingdom Feature,9 mainly created those movies,

but the role of major distributors is very important in box office success. In addition to

Disney, Warner Brothers, DreamWorks, Paramount, and Sony have started to compete with other major distributors in the animated film market since 2006. As mentioned above, ancillary markets have increased and these are also related to the success of box office. Thus animation production, particularly CGI, has been an important source of profits to the major Hollywood conglomerates.

In addition to CGI animations in theatres, the penetration of CGI in TV animation has increased. Recently, the cost of CGI TV production has come down to only 10 to 25 percent higher than traditional 2D TV animation production, because of “fast rendering time and better software packages” (Raugust 2004; Strike 2006). Since the 1990s, the use of CGI in TV animation has been popular: early shows include ReBoot (1994) and Rolie

Polie Olie (1998).

In addition to production of original CGI TV series, recreations of old animation including Mickey Mouse and Popeye have been done. These CGI TV series are created by various animation studios, including major studios, such as DreamWorks, Disney, and

Nelvana (Canada), and independent studios, such as Attitude Studio (France) (Strike

2006). Compared to production of blockbuster CGI animation, the shorter, less demanding TV audiences of CGI animation shows face lower entry barriers and

animation studios in many countries – not merely the US – participate.

9 Pixar (, and Ratatoulle), Blue Sky (Horton Hears a Who?, Ice Age: Melt Down, and Robots), and Kingdom Feature () are important full-length CGI animation studios. 32 Total Title Year Distribution Type Gross/Theaters($) 2004 DW* 441,226,547 CGI Shrek the Third 2007 Par**/DW 322,719,944 CGI The Incredibles 2004 BV*** 261,441,092 CGI Cars 2006 BV 244,082,982 CGI 2007 Fox 217,275,958 CGI Ratatouille 2007 BV 206,445,654 CGI Happy Feet 2006 WB# 198,000,317 CGI Ice Age: Melt Down 2006 Fox 195,330,621 CGI 2005 DW 193,595,521 CGI The Simpson Movie 2007 Fox 183,135,014 2D The Polar Express 2004 WB 162,775,358 CGI Over the Hedge 2006 DW 155,019,340 CGI Horton Hears a Who! 2008 Fox 150.093.773 CGI Chicken Little 2005 BV 135,386,665 CGI Robots 2005 Fox 128,200,012 CGI 2007 Par/DW 126,631,277 CGI Beowulf 2007 Par 82,195,215 CGI Monster House 2006 Sony 73,661,010 CGI Banayard: The Original 2006 Par 72,637,803 CGI Party Animals 2006 Par/DW 64,665,672 CGI Surf's Up 2007 Sony 58,867,694 CGI : The Course of the Were- 2005 DW 56,110,897 Clay Rabbit 's Corpse 2005 WB 53,359,111 Bride Hoodwinked 2005 Weinstein 51,386,611 CGI * Dream Works ** Paramount *** Buena Vista # Warner Brothers Source: Box Office Mojo (2008)

Table 3.1. Top animated films by total domestic box office revenue

The animation industry has expanded its capability to other segments of the entertainment industry and has shown that animation can be very profitable. For example, video games have improved and become widely popular for their realistic graphics, in large part as a result of CGI technology and roots in the and animation industry

(Johns 2006b; Aoyama and Izushi 2003). As noted above, the development of exhibition

33 technology, such as home electronic devices, had led to DVD sales becoming one of the

main growth segments of the global animation market.

In summary, the introduction of new CGI techniques has led to the success of a few

major studios in the global film market (e.g., Pixar (originally independent but acquired

by Disney in 2006), DreamWorks, and Disney) and has opened a wider market to the

animation studios. Furthermore, the technical demands of CGI have brought about new

partnerships and linkages that are different from traditional subcontracting in the

production system of cel-animation. Examples of cases will follow a proposed framework for understanding the location of animation production.

3.4. Worlds of animation production

3.4.1. The diversification of animation production

To explain how production of animated films is influenced by these forces, the analytical framework of Salais and Storper’s (1992) “worlds of production” is borrowed.

Salais and Storper suggest that two exogenous determinants, technologies and markets,

are able to influence the real world of production. To explain this, they show four

categories – standardized generic products, standardized dedicated, specialized dedicated

products and specialized generic – that are defined by a combination of technology and

market characteristics of products and represent four different worlds of production

(Figure 3.2). Each “world of production” in the figure is based on a different combination

of determinants.

34 As shown in Figure 3.2, firms in the bottom-right quadrant (I – the Industrial World) make standardized generic products with wide markets and many clients. It is a “modern mass production world” (Salais and Storper 1992). Second, the upper-right quadrant stands for standardized dedicated products. This world’s products are specialized and have a small number of clients, but products become standardized because their life cycle is relatively long. Interfirm competition is determined largely by price competition with subcontracting.

The third cell is called the “Marshallian market world” (III). In this world, the market is narrow and firms may face the uncertainty of the market but, because they have dedicated products, they have a few clients who value high quality products with a particular use. In this world, firms have close relationships with their customers in order to understand their tastes and needs. The last quadrant is the “world of innovation” (IV).

Firms in this world usually produce high-technology outputs. One of the major characteristics of this world is large investment in research and development with new scientific and technical know-how. This world is controlled by “scientific and professional rules” (Salais and Storper 1992). As explained above, these four different

“worlds of production” are a consequence of complicated determinants that can however be illustrated in the real world. In their research, Salais and Storper draw examples from the French automobile industry. This analytical framework helps to understand production in the animation industry.

35 Marshallian Market Network Market World World II III

Specialized Standardized dedicated products dedicated products

World of Innovation Industrial World IV I

Specialized Standardized generic products generic products

Source: adapted from Salais and Storper (1992); Storper and Salais (1997)

Figure 3.2. Worlds of production

3.4.2. The diversification of animation production

As shown previously in the technology development of the film industry (Figure 3.1), exhibition has been the center of film consumption for decades. From the late

1960s, the major studios in Hollywood did not produce animated films for theaters directly, but they produced and provided nationwide distribution for animated films for

TV. Also, some major studios no longer contained animation divisions in their studios; they subcontracted production of animated films to subcontractors, mainly overseas.

Because production of cel animation is labor-intensive work (repetitive drawing and coloring), similar to sewing or cutting tasks in the garment industry, the garment industry 36 and production of cel animated-films chose a similar strategy – finding cheap labor sources globally.

Based on their production systems and competitive criteria, including quality of production, characteristics of products/market, and technology, four different “worlds of production organization” are suggested. Between the 1930s and up to the 1980s, animation production systems can be separated into two different types (Figure 3.3). First, the beginning of animation production can be found in the left cell. Generally, the early generation of animation production and animated films by artisan studios in Eastern

European countries were supported by the governments. The then-Czechoslovakia was a dominant high-quality animated-films producer.

Local Artisan Style Animation The Globalized Hollywood System

Focus on artistic quality and local For theaters: contents Focus on market appeal: “a good story, memorable characters, and good music” (Sito 2006, 296)

For TV: Focus on cost and schedule

Snow White(Disney) Lotte Reiner’s (Warner Brothers)

Source: adapted from Salais and Storper (1992); Storper and Salais (1997)

Figure 3.3. Two worlds of production between 1930-1980

37 Second, two different distribution channels are shown in the right cell. For theaters, the production system has different priorities compared to TV production. Sito (2006) indicates the ingredients which create market appeal: a good story, memorable characters and good music. Many of Disney’s feature-length films for theatres from the 1920s to the

1980s include all these in films.

For TV, diffusion of TV has brought a new market to animation studios. Animation studios produced many TV animation series for Saturday morning cartoons during this time (Roman 2005). Thus, the main characteristics of TV animation production are low production cost and a quick pace of work to fit the schedule for airing. Competition based on lowering the labor cost is the most important factor that can decide production location. It can be done by subcontracting labor-intensive tasks to studios in other countries that have cheaper labor. Also, competition among firms in this production system is determined first by price (low production cost) and on time delivery based upon tight schedules. Quality of products is the second priority in this situation. In this production system, location shifts imply that an industrial standard is required.

In this context, less creative work is shifted to subcontractors outside the US. Even though the number of animated films that were released in theatres decreased after World

War II, growing demand from TV made the US market into a major customer of

animation studios.

These two different production worlds continued into the 1980s. However, the

animation industry has experienced many technological changes in the development of

exhibition devices as well as the development of CGI (Figure 3.4). As explained

38

Local Artisan style animation The Globalized Hollywood System (2D and CGI) Focus on artistic quality For theaters: Frequently Subsidized Focus on market appeal; market has almost disappeared since CGI emerged

For TV: Focus on cost; often “”

Wallace and Gromit (AKOM)/Sponge Bob ( Movies) The Lion King (Disney)

Theaters (Mainly CGI) Mass production for non-theatrical markets Focus on entertaining Characterized by high cost and high Focus on large non-theatrical markets, risk such as home entertainment Lower quality, (and lower budget) products for TV

Toy Story/ (Pixar) Fairytopia series (Mainframe) Shrek 1, 2, 3 (DreamWorks) Baby Einstein series (Disney) Happy Feet (Kingdom Feature) Pororo (Iconix)

Source: adapted from Salais and Storper (1992); Storper and Salais (1997)

Figure 3.4. Four worlds of production since 1980s

above, the two main markets for the animation industry before the 1980s were theatres and TV. Based on the diffusion of TV sets in nearly every home, cable TV became more specialized and began to launch specialized animation channels. Long and short animated

films began to air 24 hours a day. Additionally, the popularization of new electronic devices, such as VCRs and DVD players, created new markets (the lower-right quadrant

39 in Figure 3.4). Besides the growth of individual purchases, new technology, such as

Direct TV or “On demand TV”, permits sales of animation to people who watch at home

anytime they want. That is, the market becomes bigger and bigger and effectively

stimulates the mass production of animation products. In this sense, this new production world is now added to the previous two old worlds of animation production.

Figure 3.5 shows the effects of changes of delivery formats. Theaters were the biggest revenue source (58%) of the movie industry and TV was the second biggest source in

1981. Video rental and video sell-through shared only small portions of the market.

These four revenue sources of the movie industry still exist in the market 15 years later.

By 2006, however, the portion of revenue from theaters has decreased and TV has

become the biggest revenue source for the industry. This illustrates that diverse delivery

channels are used commonly in the current market. Most importantly, video sell-through

has become the major delivery form in 2006 compared to that of 1981. Also, a new

revenue source, “a la carte”, that did not exist in 1981, has appeared in 2006. The portion of TV in studio revenue source also is bigger in 2006 (Adams 2006).10 The largest source of revenue today is video sales, or “sell-through”, which now account for 42% and, together with video rentals, 50% of studio revenues. Television, including broadcast channels, cable and satellite, has grown as a source of revenue from 24% in 1981 to 34% in 2006. A currently small (less than 2%) but potentially huge source of revenue is (VOD). Thus those various delivery formats accelerate growth of new non-

10 Adams (2006) provides examples of new revenue sources in 2006: syndication, premium TV and broadcast networks etc. 40 theatrical markets. Some animations, such as the Barbie series, focus only on DVDs for

home entertainment.

The fourth world of animation production is CGI animation for theatre (the lower left

quadrant in Figure 3.4). The use of 3D technology in production of animation may be

considered the innovation world in the animation industry. Recently, 3D animated films

have become a major part of the industry and make enormous profits from theatres as

well as from home-exhibition devices. Among the top 30 movies in US box office

revenues in 2007 are five animated films, four of which are produced by CGI.11 In this

world of production, the production work is done by people whose training in computer software is very different from that of traditional cel animators. Jones and Oliff (2007) point out that 3D animators show “loss of technique”, a lower level of artistic knowledge of performance and cinematic storytelling, a result of the different training of traditional and 3D animators.

In summary, the development and use of new technologies in production of the animations has enabled production to diversify. This diversification is drawn from not only saving labor cost but also other determinants, such as the different types of market or products. Additionally, all four different world of animation production permit lucrative licensing of non-film products, including book publication, toys, video games,

11 The five animated films are Shrek the Third (Paramount/ Dreamworks), Alvin and the Chipmunks ( Fox), Ratatouille (/ Pixar), (20th Century Fox), and Bee Movie (Paramount/ Dreamworks) (BoxOfficeReport 2008). Among them, only The Simpsons Movie is considered as a traditional cel animated film. 41 apparel, and other related products (Raugust 2004; Mortimer 2004).12 For instance, the characters in Barbie and Thomas the Train are well-known in the licensing industry with various products that their fans are eager to buy.

100% 90% 80% 70% A La Carte 60% Video Sell- Through 50% Video Rental 40% TV Theaters 30% 20% 10% 0% 1981 2006

Source: Adapted from Adams (2006)

Figure 3.5. Studio revenue by source, 1981 and 2006

3.4.3. The characteristics of animation production

As explained earlier, production in the animation industry generally is divided into the traditional cel-animated production and new CGI. As the animation market has grown, major studios have found subcontractors who have many diligent, cheap workers for

12 Overall, the licensing business of the animation industry includes three different categories: preschool children’s TV shows, family/children’s films, and action-themed video games (Raugust 2004). 42 more routine work, such as painting . The production process of animation allows us

to better understand global production of the animation industry. The production process

of animated films can be classified into four stages: development (conceptualization),

pre-production, production, and post-production (See Appendix A).

Based on differences of their production processes and labor forces, contrasts emerge

between the traditional cel-animated film industry and the CGI animation industry (Table

3.2). The main differences between the two different types of animation production are

labor creativity. As mentioned above, low-wage and low-skilled labor is the most

significant location factor in both the garment and cel animation industries, but CGI

animation is likely to be located in regions where high-skilled workers are abundant.

Also, part of the distinctive production process of CGI animation is computer

modeling and rendering work. This early production stage in CGI can take up to two

years of round-the-clock computer calculation for a feature-length film (Economist 2005).

Using these computer models, the major studios produce animated films primarily in their studios in California or Tokyo. In addition to these places, other places have begun to be involved in production of CGI animation (See Section 3.4.4 on China and India).

Based on differences of technology and labor, other comparisons are evident. The need for powerful computers and specialized software limits CGI production to a few countries, such as the US, Japan and a few newcomer countries, including Australia,

South Korea and India. However, only firms in the US and Japan are able to distribute

CGI animation to the global market because the required pre-production, post-production and distribution of CGI production are very costly. The high total cost of animated CGI

43 films has not been affordable to animation studios in other countries yet, compounded by a shortage of creative and skilled workers.

Thus far, any feature-length CGI animation that has made a profit at the box office has been made in wealthy countries, such as the US or Australia or Japan, often assisted by subcontracted low-cost labor elsewhere. CGI animation from other countries or from independent, young animators is not yet competitive in the full-length film market, but they have begun to penetrate to young people through web-based distribution (Crawford

2003). In short, even though both use a project based production system, cel animation production and CGI animation production are very different from each other, emphasizing different technological skills and labor characteristics.

Cel Animation CGI Animation Labor Low-waged labor High-waged labor Skill Low Skills vary by different tasks

Creativity Working with others’ High level of technical and Content creativity capability; Typical South Korea, US, Japan

Countries Philippines Newcomers: Australia, South

Newcomers: China, Korea, India

India

Table 3.2. Characteristics of the animation industry

44 3.4.4. Other production places: China and India

Blockbuster full-length CGI animations are produced in a few countries, including the

US and Australia, and more countries are involved in CGI animations for TV. In recent years, however, other countries, notably China and India, have begun to be involved in

CGI production.

3.4.4.1. China

Along with its recent rapid economic development, the animation industry in China has grown and is often considered the replacement for other subcontractor countries, such

as South Korea. Animation production in China has a long history dating back to the

1920s, the time of the four , who had an important role in animation

production during the 1920s and the 1930s (Bendazzi 1994). In addition to the domestic

market, the patriotic content gave the brothers an advantage to export to countries near

China, such as Indonesia, which also had a threat from Japan. According to Bendazzi

(1994), before World War II, the four Wan brothers sought to educate young animators as

well as to make new cartoons, and this tradition has recently reemerged in an education

institute for animators in Beijing. This long-standing tradition makes

production very competitive with other countries (Fu 2003).13

Chinese animations traditionally used “the mythological novel” and adapted typical

Chinese calligraphy methods for cartoons. Therefore, these animated films have a

Chinese style – a style clearly distinct from cartoons of other countries. These Chinese cartoons are shown mainly in China and not in foreign markets. The Shanghai animation studio became the center of Chinese animation production once again by 1965, before the

13 Shanghai was the “Hollywood of the East” (Fu 2003). 45 in China. During this period, many young animators worked in the

Shanghai animation studio and developed and elaborated its distinctive style. Animation

production in China seemed to flourish in terms of both technology and industry, but the

artistic expression of Chinese animators faced strict censorship. Cartoon content included

more ideological context compared to the early Chinese cartoons.

Under this political situation, for decades Chinese cartoons have mainly targeted the

domestic market. The Shanghai animation studio was closed from 1965 to 1972 and, after

re-opening, made fewer animations than before 1965 (Bendazzi 1994). Even though

fewer works were made after 1972, Chinese animators continued to build experience and

expertise in several genres, such as cel animated films and . Furthermore,

production in the Shanghai studio continues, using Chinese tales together with traditional

artistic techniques, such as Chinese calligraphy. Under their political situation, however,

Chinese animated films lost competitiveness in the world market and could not catch up to the market trends. Therefore, the portion of Chinese animated films in the domestic market, especially in Chinese television, became smaller than before. As in Korea’s case,

cheaper imported animated films were shown increasingly on TV (Ehrlich and Jin 2001).

After the 1980s, the planned economy system in China has changed and the Chinese

government partially opened the market to foreign investors. With the open market policy

of the Chinese government, the animation industry also has experienced changes. Before

the market opening, the price of an animated film, the production cost, and the salaries of

animators were managed and controlled by the Chinese government. In 1999 the Chinese

government began to cut its support to Shanghai animation studio. This change brought

about the commercialization of the Chinese animated-film industry, which began to enter

46 into subcontracting and co-production with foreign studios. As the cheap labor in China became attractive to foreign companies in the animation industry, many young animators have been trained in the Shanghai animation studio and the Chinese government also now is eager to boost the animation industry. The Chinese government has announced incentives and protection of intellectual property (Wong 2006; Lent 2008). Currently,

Beijing, Shanghai, and Hong Kong are emerging centers of the Chinese animation industry (Wong 2006).

China is the one of the biggest markets for animation in the world with nearly 400 million TV sets. However, most animations shown on Chinese TV, approximately 90 percent, originate in foreign countries, such as the US or Japan. Thus the Chinese government recently announced a plan to support local production by creating 13 animation centers (Schwankert 2004). Besides the government support, the development of technology, especially CGI, which is also related to computer games, promotes the fast growth of Chinese animation production (Bynum 2005).

In general, production of Chinese animated films has occurred since the 1920s and the industry has developed unique techniques from those of other countries. However, its position in the world market is placed in the less creative jobs, such as painting and inking in the making of 2D animated films, because of the impact of the Cultural

Revolution. The recent fast growth of the animation industry combines cheap labor with new CGI technology, in which many new animators are being trained in many colleges

(Ortolani 2005).

47 3.4.4.2. India

In production of live action films, India is a major place, making over 800 films per

year (Scott 2005). Most live action films in India are produced in Mumbai, known as

Bollywood.14 India is the one of the largest live action film production clusters and has a

large market both nationally and globally, because these films are imported by other countries in the Middle East, South-East Asia, Australia and even Europe and North

America (Srinivas 2002). Beyond the cultural similarity in countries that are near India, the market expansion of Bollywood is a response to the diaspora of the Indian population.

However, animation production in India has been less energetic than live action film production.

Like animated film production in other countries, making television series, educational films, commercial/advertisement animation and outsourcing have been the main demand factors for the animation market in India (Nasscom 2005; Goldman 2007).

Thus, the animation studios in India have been able to accumulate skills and know-how from this experience. Furthermore, the special effects in live action films from

Hollywood have led to imitation in India to make their films more real (or more

Hollywood-like), which supports the growth of the animation industry in India as well.

According to Nasscom (2005), outsourcing from foreign companies, for example the

US, French and British studios, to the animation studios in India grew during the 1990s.

In addition, some animation studios and art institutions trained young and talented

14 Although Mumbai/Bollywoood is the center of live action Hindi-language film production, other states produce in regional languages (Srinivas, 2002). 48 animators and well-equipped studios supported this.15 In this fertile context for the

animation industry in India, India has become an important animation offshore factory

for global production. To train young animators, in addition to Indian instructors, skilled

animators from the Philippines went to India to train Indian animators (Tschang and

Goldstein 2004). Furthermore, the development of IT technology brought about the

agglomeration of animation studios in several cities, including Mumbai, ,

Chennai, New Delhi, and Bangalore (Iype 2005; Bound 2007).

As mentioned above, subcontracted work in India by the animation studios in other

countries has increased from the 1990s. What has drawn attention to India as a new

production center? First, the presence of many animators who can speak English is

considered as the main reason. As explained earlier, production in cultural industries is

mainly customer-driven and thus it needs good communication with clients, foreign

animation studios and subcontractors. Second, the competitiveness of the animation

industry in India is mainly drawn from low-cost production. For instance, producers in

the animation industry spend US$250,000-400,000 to make a half-hour animation

program in the US and Canada, but only around US$ 60,000 makes the same program in

India. The reduction of the cost of production is primarily due to labor cost differentials.

As in the global production of the garment industry, the growth of the animation industry

in India is led by cheap labor. Indian animators can earn $25 per an hour – one-fifth of

15 The major animation studios are in India include: Crest Communications, Films Division Maya Entertainment, Silverstoon Studios, 2NZ studio, Cine Magin, Climb Films, UTV Toons, Zee Institute of Creative Arts (ZICA), Digital Studio, Pentamedia Graphics, Prased Studios, Acropetal, JadooWorks, Color Chips, Heart Animation Ocean Park, Padmalaya Telefilms, Animation, Magic Shop and Moving Pictures (Nasscom, 2005). 49 salary earned by animators in US studios (Iype 2005). This is much lower than the labor

cost even in many other Asian countries.

Third, IT strength also helps the boost the animation industry in India. This has led to

progress in 3D animation skill with the development of software. As with the software

industry in Bangalore, India, this development can be expected to bring about change

from an emphasis on low-cost, low-skilled labor to value-added production by skilled

CGI engineers in India (Parthasarathy 2004).

In addition, the recent success of a 2D animated film, Jai Hanuman in domestic market has brought a new opportunity to Indian animation production (Goldman 2007).

Even though this animation film cannot guarantee the best quality, a story of familiar

methodology and a young god appeals to Indian audiences.

Despite the developments in animation production in India, the Indian animation studios face some difficulties to become a hub of the global animation industry. Goldman

(2007) points out difficulties of Indian animation production. First, animation production is less favorable than live-action Bollywood films. In general, animation production requires higher production cost than live-action films in India. Second, despite a huge animation market in India, a “business hurdle” that is difficult to overcome remains: the multiple Indian audiences with different languages, dialects and cultures. Third, the lack of understanding of licensing and merchandising is an obstacle to animation production.

Finally, the Indian animation industry has struggled with a lack of financing by both the private sector and the government.

In summary, the development of the software industry in India has built the

foundation for the growth of 3D animation production but, overall, the animation industry

50 in India is still an offshore factory to other major animation studios outside India

(Nasscom 2005). The animation industry in India has focused on production of 2D

animation, with low-cost production and a language advantage compared to that of other

countries that do not use English. On the other hand, they are still almost exclusively involved in low-skilled work and low-waged labor. To change this to value-added production, they need local demand for increasing original programs.

3.5. Conclusions

This chapter has discussed the evolution and the current situation of the animation industry. The animation industry has experienced the globalization of production and distribution. Until the1980s, targets of animation production had only two different dimensions or “worlds”: Local artisan style and globalized Hollywood system.

Development of technology has led to the emergence of new markets in the animation industry and currently we can observe two more worlds of production in the animation industry: CGI blockbusters in the world market and mass production for non-theatrical markets.

The animation industry has been influenced by two main factors. First, the role of development of technology is important in the animation industry because advanced technology supports not only various new types of delivery formats and diversified markets and products but also improves the capability of animators to express their ideas and creativity. Also, this contributes to the expansion of the global market and multiple regional niche markets for the animation industry. Second, efforts to reduce production cost are the main factors for globalization of the animation industry. At the same account, 51 this provides basic conditions for animation production to other subcontracting countries.

There are many animation studios in the world that want to be the second Pixar or

DreamWorks. Moreover, the use of cheap software and fast rendering of CGI animation has brought changes in TV animation from 2D traditional to CGI. These changes also have made a huge impact on the geography of the animation industry. Thus some countries, such as India and China, have been spotlighted in the animation industry based on development of CGI skills.

The following chapter describes the data collected for the study. The data are collected from the Animation Industry Database and shows information of the database set.

52

CHAPTER 4

DATA AND METHODOLOGY

4.1. Introduction

The previous chapter has shown the historical development of the animation industry.

Its development has been highly connected to changes of technology and the diffusion of the industry has been affected by labor supply. However, there has been little literature on the geography of the industry so far. Among the few studies are on segmented production in Europe (Cole 2008), outsourcing of the animation industry in the Philippines (Tschang and Goldstein 2004), and animation studios in Asia (Lent 2001).

All these studies focus on development of the animation industry in a particular region and influences of Hollywood animated films on the local animation industry. As

noted before, the animation industry has globalized since the 1960s with outsourcing and

coproduction to overcome different local/ regional market and budget constraints. In

addition to this, diffusion of new software has lowered the entrance barriers to the

animation industry. Studies on the animation industry at a global scale are needed to be

done to understand the current and complicated production and market of the animation

industry.

53 In this sense, a principal objective of this research is to draw the map of this industry

for the first time. To draw the map, the online Animation World Network (AWN) data

base is considered as a good source to understand the animation industry. I will use this

data set to map where the firms are located and to analyze several characteristics of the

firms in the animation industry.

This chapter begins to explain what the AWN data base looks like and what

information the data base includes. Then I will outline characteristics of the data set from

AWN and the current situation of animation studios.

4.2. The Animation World Network Data Base

The AWN is the online network of animators, computer graphic designers, producers

and others. This provides information and forums for professionals and general

audiences who are interested in animation-related business and production.16 Many animators, designers and producers in related fields share information on new technology, job announcements, and services on this online network website.

This online network also includes information on animation firms and studios which choose to submit it. Each animation firm fills out an online form and submits it through the website. The AWN data on studios includes the following categories: company name,

16 The Animation World Network is “the largest animation-related publishing group on the , providing readers from over 145 countries with a wide range of interesting, relevant and helpful information pertaining to all aspects of animation. Covering areas as diverse as profiles, distribution, commercial studio activities, licensing, CGI and other animation technologies, as well as in-depth coverage of current events in all fields of animation, AWN gives its readers an easy to navigate, visually and intellectually creative mechanism to electronically access a wealth of information previously unavailable anywhere in the world” (Animation World Network 2008b). 54 location, business type, animation specialties (or styles and techniques), types of

animated work (or projects and deliverables) (Table 4.1). These sub-categories are

important variables in the data set that were collected from the AWN (Animation World

Network 2008a).

Expected features Number of % firms reporting Variable this item

Name/Country 4242 100 Basic Address/ Location 4212 99 Information Contact information Website Details of firms 3661 86 Firm’s age and 373 9 Year founded experience # of employee Studio size 41 1 Information Types of services or 4058 96 Business type from products they provide studio sources Animation Animation styles or 4036 95 Specialties techniques Projects/ Specific types of 2867 68 Deliverables animated work Links between players 1474 35 in the animation Clients* industry/ ties

Source: compiled from data in Animation Industry Database (AIDB) (2008a) NOTE: * 1,473 animation studios provide names of clients on AIDB (Animation Industry Database), but only a few studios identify their clients.

Table 4.1. Contents of the Animation Industry Database

55 Data on a total of 4,242 studios from 92 countries were collected from the AWN data

base. These firms describe themselves as related to “animation production” in the

variable “business type.” The data were collected from August 2006 to July 2007.17 All

4,242 studios provide the firm’s name and country, but 30 studios do not provide a detailed address; thus 4,212 studios have a precise location.18

More variables are shown in Table 4.1. The most frequently checked categories are business type (96%) and animation specialty (95%). The third highest percentage of categories is each firm’s website, but their vary greatly in the information provided. The next category, types of animated work (or projects/deliverables) (68%) includes several possibilities: short films, feature films, TV series, educational products, animation character designs etc. A minority of firms in the database (35%) provided a list of clients on AIDB. However, 1,468 studios do identify their clients, and this information

can help us to understand networks of production of the industry globally. The locations

of all clients were searched through each client’s website.

The “number of employees” is the least frequently-answered variable. Only 41

studios reported the size of their studios in terms of number of employees. Year founded

is provided by 373 animation studios, or 9% of all studios.

As mentioned before, information on location is more frequently provided than other

information about these studios. Table 4.2 shows the 20 countries that contain over 30

animation studios. These 20 countries account for 85.9% of all global studios.

17 AWN provides only an individual web-based form on each firm – not an aggregated data set. 18 All 4,242 studios checked their countries, but 30 studios did not provide detailed location information on AWN database. Also one studio is located in Ohio, but this studio left detailed location, a city or address, information empty. 56 We can see several situations in Table 4.2. First, only 14 countries contain more than

80% of the 4,212 studios that provide their country location. Nearly one-half the world total are in three countries: US, India, and UK. Of the 92 countries, 18 have just one studio; the complete list of all countries is shown in Table B.1 (Appendix B).

Second, several big clusters are revealed in Table 4.2. In particular, the US has the largest number of animation studios in the world – a total of 1211 studios (28.7%) of the world total.

The second largest is found in India which has 449 studios (10.6% of the world total).

The United Kingdom (376 studios, 8.9%) follows in third place, and Canada ranks fourth

Cumulative Rank Country Number % % 1 1211 28.7 28.7 2 India 449 10.6 39.3 3 United Kingdom 376 8.9 48.2 4 Canada 354 8.4 56.6 5 France 314 7.4 64.1 6 Germany 127 3.0 67.1 7 119 2.8 69.9 8 108 2.6 72.5 9 Australia 99 2.3 74.8 10 China 60 1.4 76.2 11 South Korea 54 1.3 77.5 12 , Mexico, Netherlands 46 3.3 80.8 15 Belgium, Philippines 41 2.0 82.7 17 38 0.9 83.6 18 Ireland 34 0.8 84.4 19 South Africa 32 0.8 85.2 20 Sweden 30 0.7 85.9 Source: compiled from data in AIDB (2008a)

Table 4.2. Number of animation studios by country

57 (354 studios, 8.4%). Four other countries, France, Germany, Israel and Spain have more than 100 animation studios each.19

Third, the number of animation studios also refers to tradition of the animation

industry in a country. For example, long-time animation pioneers, such as the US and

France, hold high ranks in the current animation industry. Popular outsourcing countries,

such as South Korea and the Philippines, rank 11 and 15, respectively.

Fourth, even though animation studios are agglomerated in a few countries, 92 countries still have at least one animation studio. Thus, animation production has dispersed and becomes more and more globalized. A total of 45 countries have ten or more animation studios.

Total numbers of the animation studios in the world provide a large-scale picture of the global animation industry. However, these numbers do not give us details of the structure of the industry. Variables to analyze industry structure will be introduced next.

4.3. Methodology

Collecting the data and finding the location of animation studios at a national scale shows the spatial distribution of the animation studios in 92 countries. Moving beyond the basic map of the animation industry, other variables which are frequently reported will be analyzed.

19 A very small number of animation studios in Japan (29) reported their information in the AWN data set. That is because the Animation World Network might not be as important for studios in countries whose first language is not English. Also, animators in Japan may have Japanese-language websites for sharing information with each other. 58 4.3.1. Business type

The first variable is business type – that is, the types of services or products they provide to clients. This variable is how a studio defines itself as a company.

Types of business are divided into six categories: business/professional management, careers, community, production, commerce, and information/publishing. The animation studios on which data were collected are involved in animation production first and then they serve other forms of business to maintain the studio in competition with others.

% of Number of Business number of studios studios Business/Profession Advertising agencies 341 8.4 al Management Animation production 4242 100.0 867 21.4 production 843 20.8 Web animation production 823 20.3 Post-production services 786 19.4 Production / Interactive development 776 19.1 Pre-production services 558 13.8 Web site development 459 11.3 Game development 384 9.5 Motion picture studio 238 5.9 Sound/Music production 196 4.8 Animation products/ supplies 322 7.9 Commerce Educational products 190 4.7 Information/ New media 378 9.3 Publishing Total Studios 4058 Source: compiled from data in AIDB (2008a)

Table 4.3 Top 15 businesses of the animation studios

In addition to animation production and publishing, various types of business are done by each animation studio (Table 4.3). The 4,058 studios reported 13,659 business 59 types, or approximately 3.4 per firm (See Table B.2 in Appendix). We can see all stages that are related to animation production from the planning of animation production to distribution. Some studios are even doing retail business, as resellers and rentals as well as other businesses. Others are involved in designing theme park and rides. The scope of animation studios is much wider than merely “making ‘toons” (Neuwirth 2003).

4.3.2. Animation specialty, style or technique

The next variable is the studios’ specialties. A total of 31 types of specialties are defined by the AWN, and a total of 9,531 specialties are reported by 4,036 studios, or 2.4 specialties per studio. Table 4.4 shows how many specialties are reported by animation studios. Making an animation film, for example, requires various workers with different skills in an animation studio. Having various specialties means that an animation studio can satisfy clients’ needs and allow the studio to be flexible in meeting customers’ needs.

Surprisingly, 3D computer animation, the newest technology, as discussed in Chapter

3, is the most popular specialty or skill among the animation studios in the AWN data set, found in 2,117, or 52.5%, of studios. However, studios that are good at 3D computer animation also can do other specialties, such as traditional hand drawn skills (30.5%) and

2D computer animation (37.5%). Currently, these three specialties are the most widely used skills in the animation industry. Widely-available and inexpensive computer animation software can bring to a studio capability in both 2D and 3D computer animation at the same time. Both 2D computer and 3D computer animation are likely to share the same labor in a company. Based on specialties from the AWN data set, the

60 Specialty Number % of number of studios % of specialties 3D computer animation 2117 52.5 22.2 2D computer animation 1515 37.5 15.9 2D/ Traditional 1229 30.5 12.9 Digital/ Visual Effects 1054 26.1 11.1 Flash/ Internet animation 1030 25.5 10.8 Animated objects 552 13.7 5.8 Live action 305 7.6 3.2 Rotoscope 236 5.8 2.5 Clay 222 5.5 2.3 Pencil on paper 203 5.0 2.1 Cut-outs 176 4.4 1.8 Photos 168 4.2 1.8 Ink on paper 167 4.1 1.8 159 3.9 1.7 Puppets 115 2.8 1.2 99 2.5 1.0 Pastel on paper 77 1.9 0.8 Paint on glass 38 0.9 0.4 Engraving on film 33 0.8 0.3 Sand 13 0.3 0.1 Others 23 0.4 0.2 Total numbers of studios 4036 100.0 Source: calculated from data in ADIB (2008a) Table 4.4 Types of Specialties

First, many animation studios with the specialty “traditional hand drawn skill

(traditional 2D)” are located in animation countries that have longer histories within the

animation industry than others. These studios are mainly located in the US, especially in

cities along the East coast area and near Chicago, and in Western Europe (Figure 4.1).

Compared to its total number of animation studios, India and Australia have very small

numbers (4 studios each) with traditional hand drawn skill. Especially in this case, the

cities with traditional 2D specialty in India are not the same as the cities of high tech

industry, such as Bangalore.

61 The second specialty is 2D computer animation. A larger number of animation studios answer that they deal with 2D computer animation (37.5%) than 2D traditional hand drawn specialty (30.5%) (Figure 4.2). The pattern of the studios’ distribution is similar to that of 2D traditional skill. India also has a few 2D studios in a couple of cities that are not IT (Information Technology) specialized areas. However, the concentration of a specialty in computer-enabled 2D only is more prevalent in Europe than is the case for 2D traditional only.

Source: based on data in AIDB (2008a)

Figure 4.1 Animation Studios by Specialties (Traditional only)

62 The third specialty is only 3D computer animation (Figure 4.3). Three distinctive agglomerated regions are found: North America, Europe and India. Many studios appear

Source: based on data in AIDB (2008a)

Figure 4.2 Animation Studios by Specialties (2D computer animation only)

in the US, especially in the New York and Los Angeles areas. The UK and France are important within Europe. The case of India expands location of animation studios in famous outsourcing cities, such as Mumbai, Bangalore and Chennai. In addition to these countries, animation studios with a 3D computer animation specialty are found in

63 Chinese cities, notably Shanghai and Hong Kong. Cities in Australia, however, are not shown, unlike the case of 2D traditional and 2D computer animation.

Source: based on data in AIDB (2008a)

Figure 4.3 Animation Studios by Specialties (3D computer animation only)

Among animation studios in the AWN data set, a total of 663 animation studios are specialized in all three: traditional, 2D and 3D computer animation (Figure 4.4). Cities in

North America, Europe, and India are still dominant places. In addition to this, more countries are shown in Figure 4.4 for the combination of all three specialties: Argentina,

Brazil, and Uruguay in Latin America, New Zealand, countries in East Asia including

Japan, South Korea and the Philippines, Singapore in South East Asia, and Johannesburg

64 in South Africa. Thus, specializing in a single skill or technology, animation studios tend

to extend their specialty to as many as possible to fit various projects with diverse clients

Source: based on data in AIDB (2008a)

Figure 4.4. Animation Studios by Specialties (Traditional, 2D and 3D computer animation)

Based on these specialties, animation studios that report that their specialty is only

traditional hand drawn style without 2D or 3D computer animation skills can hardly

expand their business. Only one animation studio which is specialized in only traditional

hand drawn specialty (traditional 2D only) marks the Digital/ Visual effects (or special effects; SF) field together. There is no animation studio which is specialized in only 2D computer animation that has SF related projects at the same time. In animation studios

65 with 3D only skill, 94 animation studios report that they are also working on SF related projects.

This gives us explanations to understand the current animation industry market situation. Under unstable market conditions, animation studios can manage their business using several types of animation specialty to make profits. If in-studio animation production decreases, they are able to use another specialty and get projects from different types of clients to reduce the ups and downs of their business. While there is no best or optimized way to reduce business risk, this portfolio approach has advantages.

In general, particular specialties tend to agglomerate in specific areas, such as the

US, Europe and India. Additionally, many animation studios prefer to show themselves as capable in several different specialties (Raugust 2004).

The recent failure of traditional and 2D animation in the box office has led to the increase of 3D computer animated film. Producing 3D animated feature films takes more time and money than 2D animation. Also, the growth of demand in 3D animated films forces medium-size or small studios to develop other types of markets. The next variable, the type of animated work or the type of projects and deliverables, gives us richer information on this situation.

66 % of Types of animation work Number of % of number of (projects/ deliverables) studios projects studios Animated characters 1673 58.4 12.5 Commercials 1465 51.1 10.9 Television Series 1266 44.2 9.4 Short Films 1166 40.7 8.7 Feature Films 1010 35.2 7.5 Multimedia/ New media 879 30.7 6.6 Animated web graphics 878 30.6 6.5 Music 819 28.6 6.1 Television Specials 679 23.7 5.1 Title Sequences 663 23.1 4.9 Interstitials/ Logos/ Bumpers 622 21.7 4.6 Educational/ Industrial films 583 20.3 4.3 Games 549 19.1 4.1 Websites 493 17.2 3.7 Webisodes 390 13.6 2.9 Rides/ Simulators 158 5.5 1.2 Others 123 4.3 0.9 Total 13416 100 Source: compiled from AIDB (2008a)

Table 4.5. Types of projects/deliverable forms

4.3.3. Types of animated work

The third variable is the type of animated work or the form of the studio’s projects or

deliverables (Table 4.5). A total of 2,867 animation studios provided their types of

projects in the AWN data set. A total of 13,416 available projects are shown from among

16 possible types of projects. Overall, the studios tend to do various projects – an average of 4.7 per firm – at the same time. As mentioned before, doing different types of projects helps to reduce the firm’s risk in the market.

67 The most frequently reported type of animated work is development of animated characters (58.4%). Many animation studios are involved in designing of animated characters which therefore is a basic project in the industry. Designing animated characters is one of basic studio capacity and independent of the levels of their skills or technology – that is, whether their specialties are traditional hand drawn or 3D computer graphic. Commercials (51.1%) are the second most frequently reported type of animated work.

Other important projects that play important roles in studios’ business are: TV series

(44.2%), short films (40.7%), feature films (35.2%), and music videos (28.6%). These are types of “animated films” projects that are considered as typical projects of animation studios historically. Game-related projects (19.1%) are an important revenue source for studios. Sometimes, CGI animators switch their jobs to gaming production and vice versa

(Edwards 2002). Also, gaming and animation production have similarities in general processes from creating scripts to post production. Therefore, many animation studios work on game projects as well.

Some animation projects are web based projects: animated web graphics (30.6%) website development (17.2%) and webisodes (13.6%). Responding to the growth of the

Internet as a distribution channel, web based projects are seen in the list of studios’ projects or deliverables. Webisodes are short animated films that are distributed on websites using streaming video or downloading formats. This type of delivery has become more popular than before, because it is a good way for studios to advertise their new series or films to the public (Raugust 2004).

68 To survive in the market, animation studios take advantage of presenting themselves

as all-round players who can do everything as professionally as possible. In this sense,

developing websites for other companies, commercials (advertising), animated web

graphic, and title sequences are effective capabilities for an animation business.

Therefore, a hierarchy of types of work in the animation industry is observed: from basic and simple projects to longer and more complicated projects, such as TV series/ specials

and feature films that need greater experience as well as more labor and solid financial

resources.

4.4. Conclusions

In this chapter, characteristics of the data from the AWN were described. A total of

4,242 animation studios reported, with varying numbers of studios providing their

locations, types of business, specialties, and types of animated work or forms of projects/

deliverables.

Most animation studios prefer to use many specialties and are involved in diverse

types of business rather than use one or two specialties. In general, animation studios in

the AWN data set are engaging in diversification and exploring wider markets by newly

developed distribution windows. More details of the industry will be explained in the

following chapters.

A prominent characteristic of the animation industry, along with other cultural

industries, is its agglomeration in metropolitan areas. Chapter 5 will focus on showing

this characteristic of the animation industry and then draw the global geography of the

animation industry at the scale of the urban area. Also, this study will adopt global 69 production network (GPN) analysis to understand details of the globalized animation

industry in Chapter 6. The clients of the 1,468 studios reporting allow us to analyze each studio’s roles and connections in various global production networks (GPNs) that rely on animation. These data enable us to report the links on the global map of animation production between the suppliers (the studios) and their customers or buyers (the clients) of animation projects. These lists of clients will be the bases of the analysis reported in chapter 6 at the scale of cities. GPNs also help us to understand centrifugal and

centripetal forces of the animation industry at a global scale.

70

CHAPTER 5

WORLD CITIES OF THE ANIMATION INDUSTRY

5.1. Introduction

The previous chapter has described several characteristics of the data set collected from the Animation Industry Data Base (AIDB) of the Animation World Network

(AWN) The chapter also presented general information of the animation studios from data set, including the location of animation studios among 92 countries.

In this chapter, the focus shifts to the scale of urban or metropolitan areas. The distribution of the “world cities” of the animation industry will be compared with the spatial patterns of world cities from other studies. Firstly, world cities identified by the research group on Globalization and World Cities (GaWC), and other but more specialized “global media cities” that are elaborated by Krätke (2003), will be presented.

Secondly, world animation cities by absolute numbers will be provided and be compared with these two previous lists of world cities. The scale of this research is global, so the similar scale from other studies can give us easy but useful understanding of the big picture of the animation industry. Finally, findings from the location patterns of the animation industry will be drawn at the end of this chapter.

71 5.2. World (global) cities

Many people, firms and services have concentrated in cities. As mentioned in Chapter

2, agglomeration is the one of the characteristics of the cultural industries, at times with different names, such as clustering (Porter 1988) and nodes (Amin and Thrift 1992).

Recently, a new term and related concepts, creative class and creativity, have been added to studies of agglomeration. These have been initiated by Florida (2002) and applied to many places in many countries so far. Creative people bring creative thoughts and values and they become an important generator of regional economies (Currid 2006; Gabe 2007).

Also, cities are always attractive to those people who are creative. In addition to jobs for creative people, different levels of jobs need various different skills and creativity and this variety exists in cities. Thus, cities always have an abundance of people who want to make their living. Furthermore, various services for firms and business are concentrated in cities as well. Especially producer or professional services sectors, such as finance, law, public relations and advertising, are clustered in urban areas (Sassen 1991). In addition to basic functions and the concentration of related services in cities, more choices, including leisure and other cultural activities, are very important attractions to people.

In this circumstance, we can expect agglomeration of animation studios in some large cities and their metropolitan areas as an outcome of the attraction of urban environments.

An example of the benefits of living and working in a node of the animation industry is seen in the advice of Simon (2008) to young animators: “Most animation studios are in

Los Angeles, especially around Burbank. For the best possibility of landing a job at a studio, you should live near the studios.”

72

Source: Beaverstock et al. (1999)

Figure 5.1. The World Cities by GaWC

In the research on the world city network by GaWC researchers, three types of world cities are categorized by their capacity to provide advanced producer services for companies, especially transnational companies. In other words, locations of companies in specific industries are gathered and selected for showing networks of global cities. Based on these networks among cities, they identify three different groups: alpha, beta, and gamma world cities. These three levels of cities serve different levels of the world city network. The world cities identified by GaWC (Figure 5.1) include 10 cities as alpha

73 world cities. As in other studies on world cities, top cities, such as New York, London,

Paris, Milan, and Tokyo, are foremost. Following those alpha cities, 10 cities, for

example, , San Francisco, Moscow, and Zurich, are regarded as beta world cities.

Lastly, many gamma cities are shown in Figure 5.1. Even though gamma cities are spread

out geographically, they are mostly located in North America, Europe and Asia. Some parts of the world, such as Africa, South America and Oceania, have fewer world cities.

Especially, we find no alpha city in those areas (Robinson 2002).

Research also has been done on specific types of world cities. Krätke (2003) and

Krätke and Taylor (2004) provide empirical studies on global media cities that use

locations of 33 global media firms and their branch offices and networks. They use the same categories – alpha, beta and gamma world cities – to analyze the world media industry and add one more category: regional media centers (Figure 5.2).

The alpha world media cities are similar to the GaWC alpha cities, such as New York,

Paris, and London. Differently from other studies on world cities, cities in Europe seem to be more prominent. Even though many multinational media conglomerates fix their headquarters in the US, many other media conglomerates have their regional offices in major cities in Europe to control local markets there. Thus, not only London and Paris, but also Frankfurt and , are shown in the list of world media cities. Also, fifteen beta media cities are identified and the majority of them are in Europe. Only two beta media cities, Toronto and Sydney, are outside Europe.

In the case of gamma global cities, seven cities, Helsinki, Prague, Vienna, Lisbon,

Düsseldorf, Cologne, and Rome are spread throughout Europe. However, no Asian cities are identified as either alpha or beta cities. Only three cities in Asia, Tokyo, Hong Kong

74 and Singapore, are gamma world media cities. These three cities are usually considered

as alpha cities in most research, especially Tokyo, and Hong Kong and Singapore are also

regarded as hubs of transportation and financial centers in Asia (Alderson and Beckfield

2004). However, because these world Asian cities are less directly connected to the

networks of multinational media conglomerates they emerge as gamma world cities. It

seems that Asian media markets are, thus far, more independent of the giant media firms

compared to those in Europe.

Source: Krätke (2003)

Figure 5.2. World media cities

75 5.3. World Animation Cities

Studies on world cities emphasize the network and its nodes and highlight flows of

people, technology, knowledge and information rather than fixed places. In this context,

world cities are attractive to large multinational corporations because these cities support

the economic activities of multinational firms with various producer services and

amenities. In research on three different types of world cities, Beaverstock et al. (1999)

analyze locations of advanced producer services, especially four sectors of corporate

services: accountancy, advertising, banking and law (or legal services). Based upon this

framework to study world cities, research has also analyzed other aspects, such as economic, cultural and political indicators (Alderson and Beckfield 2004). As Krätke

(2003) points out, however, these studies pay little attention to production activities and

focus on service related activities. Furthermore, based upon the unique characteristics of

cultural industries, production facilities of cultural industries tend to be agglomerated in

large metropolitan areas – perhaps even more than producer services – because those

large cities make it possible for firms of the cultural industries to work with various the

production-related services. Additionally, both production and consumption of the

cultural industries occur in metropolitan areas. In other words, value chains of the cultural industries cannot be separated from large city areas and this is also the case in the animation industry. Even though every country has variant institutions, policies and characteristics, the functions and services of cities become are similar: they provide critical conditions for economic activity.

76

Total # Cumu # of # of Name of City* of % lative studios cities studios % 309 Los Angeles 1 309 7.3 7.3 220 New York 1 220 5.2 12.6 195 Paris 1 195 4.6 17.2 177 London 1 177 4.2 21.4 121 Toronto 1 121 2.9 24.3 92 San Francisco 1 92 2.2 26.4 70 Chennai 1 70 1.7 28.1 69 Mumbai 1 69 1.6 29.8 65 Montreal 1 65 1.5 31.3 64 Vancouver 1 64 1.5 32.8 57 Bangalore 1 57 1.4 34.2 51 Hyderabad, Seoul 2 102 2.4 36.6 47 Delhi 1 47 1.1 37.7 40 Boston 1 40 0.9 38.7 38 Buenos Aires, Chicago, Manila 3 114 2.7 41.4 37 Annecy, Barcelona 2 74 0.9 43.1 35 Milan, Sydney 2 70 1.6 44.8 28 Kolkata, Pune 2 56 1.4 46.1 27 , Washington 2 54 1.2 47.4 26 Melbourne, Mexico City, Rome 3 78 1.8 49.2 25 Philadelphia 1 25 0.6 49.8 24 Portland 1 24 0.6 50.4 22 Dublin, Miami, Singapore 3 66 1.5 51.9 21 Bristol, Cologne, Copenhagen, Madrid, Munich, Tokyo 6 126 0.5 54.9 19 , Phoenix 2 38 0.5 55.8 18 Minneapolis, Kuala Lumpur 2 36 0.4 56.7 Ahmadabad, Austin, , Istanbul, Johannesburg, 17 7 119 0.4 59.5 Orlando, Seattle 16 Dallas , Helsinki, Hong Kong, Sofia, Stockholm 5 80 0.4 61.4

15 Brisbane, , Houston, Ottawa 4 60 0.4 62.9 Auckland, Budapest, Halifax, Karachi, Manchester, 14 6 84 0.3 64.5 Tehran 13 Beijing, Detroit, Rio de Janeiro, Shanghai 4 52 0.3 65.8 Amsterdam, Bogota, Bucharest, , Guadalajara, 12 7 84 0.3 67.8 Kochi, San Diego NOTE: * “city” is shorthand for urban or metropolitan area Continued Source: calculated from data in AIDB (2008a)

Table 5.1. Cities of animation studios 77

Table 5.1 continued Calgary, Denver, Dhaka, Lyon, Prague, São Paulo, 11 9 99 0.3 70.1 Taipei, Tampa, Vienna

10 Bangkok, Cardiff, Stuttgart 3 30 0.2 70.8 Belfast, Brighton, Cape Town, Dubai, Montevideo, 9 10 90 0.2 72.7 Oslo, Valencia, , Angouleme, Bilbao, Coimbatore, Jakarta, Lisbon, 8 Moscow, Saint Petersburg, Salt Lake City, Santiago, 10 80 0.2 74.6 Torino 7 7 49 1.2 75.8 6 8 48 1.1 76.9 5 18 90 2.1 79.1 4 27 108 2.6 81.6 3 47 141 3.3 85.0 2 105 210 5.0 89.9 1 408 408 9.7 99.7 Total 4212 100.0 NOTE: * “city” is shorthand for urban or metropolitan area Source: calculated from data in AIDB (2008a)

As discussed in Chapter 4, the collected data on 4,212 studios include city locations

in their addresses from the Animation Industry Database. These locations of studios make

it possible to identify location patterns of the animation industry.20 In the Animation

Industry Database, all 4,242 animation studios provide their nationality, but 30 animation studios did not report details of their names of cities. Thus 4,212 animation studios are used in Table 5.1.

As mentioned in Chapter 4, high portion of animation studios are concentrated in some countries, including the US, India, the UK and Canada. More than half of the

animation studios (56.6%) are located in these four countries. As pointed out in Chapter 4,

20 A whole list of cities for animation studios is provided in Table C.1. 78 animation studios are operating in 92 countries. Of the total, 90.7% are concentrated in

only 30 countries.

At a city level, the 4,212 animation studios are located in 729 cities. Of the 4,212

studios, 3,132 firms (74.4%) are found in 108 cities that have at least eight studios (Table

5.1).

Differently from studies on global cities which focus on producer services, this study

concerns the production side of the animation industry at a global scale. However, the

groups of cities below do not deal with networks of global animation cities, but just focus

on their location and concentrations of the animation studios. From the collected data of

the locations of the animation studios, four different types of animation cities are

characterized by numbers of the animation studios. Five alpha world animation

production cities each have more than 100 animation studios and 24.3% of global

animation studios are concentrated in these cities. Eight beta world animation production

cities serve more than 50 and less than 100 animation studios. The next group, gamma

world animation cities, contains smaller numbers of animation studios than those of the

first and second groups. This group of 29 cities has more than 20 and less than 50

animation studios in its area.

Roughly, two main patterns are observed from three different world animation city

groups.

First, a large number of cities serve as a base of the animation industry. Not only super mega cities, such as New York, but also small rural towns are locations of animation studios. A total of 736 cities in the world have at least one studio that is related to animation production. Regarding numbers of studios in each city, the variation of

79 numbers of studios in each city is very big. While 309 are located in one single area, Los

Angeles, many cities have small numbers of animation studios. Of the 732 cities with at least one studio, 408 cities have only one animation studio. It seems that these cities with only one studio are not big major metropolitan cities in their country (See Table C.1)

Cities which have small populations also exist on the list of the animation cities.

Second, a few cities have far more studios than other cities. Five world cities –Los

Angeles, New York, Paris, London, and Toronto – contain 901 animation studios (24.3% of the world total). In addition, approximately three-fourths of all animation studios are

located in only 108 cities, which indicates the concentration of the animation studios in a relatively small number of cities in the world. Even though, overall, animation studios are spread out at a global scale, a few cities gain higher status than others. To put it another way, the concentration of the animation studios identifies the major clusters of the animation business.

Defining the alpha world animation cities, the upper five cities are: Los Angeles, New

York, Paris, London and Toronto. Usually, many studies show that New York, London,

Paris and Tokyo are the top four world cities (Beaverstock et al. 1999). Additionally, other cities, such as Los Angeles, Frankfurt, and Amsterdam are also classified as alpha cities in GaWC studies. Except for Tokyo, these cities are in North America and Europe.

Tokyo is the only one mega city that is located in Asia. However, after the depression of the bubble economy, some scholars give strength to other Asian cities, such as Singapore,

Hong Kong, Shanghai and others (Taylor 2005). Krätke (2003) has a similar but longer list of alpha world media cities in his research. Seven global cities – New York, Los

Angeles, Berlin, Amsterdam, London, Paris, and Munich – comprise his top media city

80 group. In both lists of alpha cities, European and North American cities dominate. The

influences of large multinational corporations are huge in location choice of the cultural

industries (Krätke and Taylor 2004; Krätke 2003).

Source: based on data in AIDB (2008a)

Figure 5.3. World animation cities: absolute number of studios

Compared to other top world cities, one of the most distinctive alpha animation cities is Toronto. Usually, Toronto has been regarded as a beta world city or as a regional center (Beaverstock et al. 1999), However, Toronto is a very important city in the animation industry. Proximity to major US media conglomerates and a similar business culture encouraged to set Toronto as an international office that 81 manages the world market (except for the US market) (Animation World Network 2007).

Also, Toronto has served as a frequent shooting location of low and medium budget

Hollywood movies. Film studios take advantage of Toronto’s similar landscapes to US cities and English-speaking labor. More importantly, state-of-the-art post-production services are another huge attraction of Toronto in film production (Goldsmith and

O'Regan 2005). Based on the experience of Toronto firms in post production services, many computer graphic imagery studios are concentrated in Greater Toronto area (Bielik

2004; Tetiker 2004).

A total of eight cities exist in the group of beta world animation cities: San Francisco,

Chennai, Mumbai, Montreal, Vancouver, Bangalore, Hyderabad, and Seoul. These cities are concentrated in North America and Asia. Europe has no cities in this group. This uneven distribution is considered as the clear contrast to other world cities in the beta group. Among Krätke’s beta world media cities, cities in Europe dominate this category; however, no city in Europe is in the beta group of the world animation cities. This is because the animation industry in Europe, rather than having one agglomeration form, shows many small groups of animation studios through the whole continent (Cole 2008).

Cole argues that one huge agglomeration is not a necessary condition of the European animation industry and the industry is appropriate for specific niche markets rather than one globalized market, the target of the US animation industry. Even though Paris is one of the leading alpha animation cities, many small towns in Europe, such as Annecy and

Angoulême, are identified as locations for the animation business in Table 5.1.

In North America, two cities are famous as film industry satellite hubs: Vancouver

(“”) and San Francisco (). The former is a well-known

82 shooting location of many Hollywood movies and also has related services (Scott and

Pope 2007; Tinic 2005). Thus, as in the case of Toronto, we can expect that there are a lot of animation studios in Vancouver. The latter is the home of world high-tech industry, especially computer and software related industry utilized in CGI animation, so a large group of animation businesses in the San Francisco area is not a surprising result.

The next group is four beta cities in India among beta world animation cities. The center of the Indian film industry, known as Bollywood, is in Mumbai (formerly

Bombay) (Lorenzen and Taeube 2007), Bangalore, Chennai and Hyderabad are well- known as the industrial and educational hubs of India (Basant and Chandra 2006). Lastly,

Seoul is the only city that joins the group from East Asia. Studios in Seoul have been involved in global animation production for several decades.

The gamma world animation cities consist of 27 cities in North and South America,

Europe and Asia. Compared to the beta world animation cities, we see a more even distribution of cities geographically. Most of these cities are each country’s industrial, economic and cultural center or capital city: Buenos Aires (Argentina), Manila (The

Philippines), Barcelona (Spain), Dublin (Ireland), Copenhagen (Denmark), Tokyo

(Japan), and Singapore. Most American cities in the group (Boston, Chicago,

Washington) are considered as centers of the creative class (Florida 2002).

Compared to these large cities, one very unique city is observed in the gamma world animation group: Annecy. This city lies in the Rhône-Alpes region of France has more animation studios per 1 million people in the city than Los Angeles. Annecy has hosted the Annecy International (Festival du Film d'Animation du Annecy) since

1960. This festival is very famous both commercially and artistically. Its International

83 Animated Film Market (MIFA) is the biggest event for both producers and clients; it

covers various “windows” including television, cinema, video, cable and satellite industries. Thus, a wide variety of animation related agents, not only on the creation side

such as individual artists and producers but also distributors, manufacturers and other

educational institutions, get together in the festival, share information on markets, new

technologies and other topics through various kinds of meetings. Individual artists and

major studios open booths for exhibition and sell their animation products including films,

character licensing and so on. Thus an animation festival like the Annecy International

Film Festival is considered as a good opportunity to show individual animation artists’

potential to future clients and for film samples to find distribution channels. These

vigorous businesses in the market make the animation festival prominent. This animation festival leads Annecy to the stature of a distinctive animation city among other cities. The reputation of the animation festival contributes to the agglomeration of firms and related services in the city much as similar agglomeration in London takes place in financial services (Cook et al. 2007). Thus not only regional or national major cities but also places for specialized clusters appear among the gamma world animation cities.

The many gamma world animation cities located in Europe, North America and Asia contrast with the small numbers of gamma cities in Eastern Europe, the Russian federation, Africa, and the Middle East. The only city in Africa is Johannesburg. Even though large cities in India and small cities in Europe have played a role in the industry, the places of the animation industry still have concentrated in limited cities, places, and countries in the world.

84 The last group of world animation cities is “regional animation centers” of the animation industry. Cities in this group include from eight to nineteen animation studios

(Table 5.1). We can see regional animation centers in North America, such as

Minneapolis, Austin, Halifax and Calgary and, in Europe, such as Cardiff, Glasgow, and

Wilmington appear. In addition to those cities, finally we can observe cities in Africa, the

Middle East, Eastern Europe and Russia on the list of regional animation centers: Cairo,

Cape Town, Colombo, Dubai, Moscow and St. Petersburg. That is, regional animation centers are dispersed widely. As mentioned in Chapter 3, animation production in Eastern

Europe and Russia had strength based on pursuit of artistic perfection by support from governments. However, their connections to the globalized animation industry are less vigorous than studios in other cities or other countries. They have not yet dealt with the tough competition and short life cycles of the global animation business. Especially,

Russia contains only two regional animation centers: Moscow and Saint Petersburg.

Besides the regional animation centers discussed above, one another special city in

France, Angoulême, is noticeable among other cities. Angoulême has been the host city of the Angoulême International Comics Festival (Festival International de la Bande

Dessinée d'Angoulême) since 1972 (Festival International de la Bande Dessinée

D'Angoulême 2008). A small town in France, Angoulême does not appear on other rosters of world cities or among “wannabe” world cities (Taylor 2004b). The main industries of Angoulême are paper making and printing, but hosting a festival becomes a major advantage to the city attracting many animators. In particular, Forum International

85 des Technologies de l’Animation (FITA)21 is held every year since 1998, and a large group of people who work in animation, post production, game development, and computer graphic related services meet and share trends of the industry and know-how and issues of current technology through this forum (FITA 2007). In fact, this annual event builds buzz in the business and brings reputation to the city.

Another city outside North America and Europe that is interesting is Dubai (one of the United Arab Emirates). This fact is regarded as a consequence of efforts to cultivate the media industry in Dubai. In order to make Dubai as a regional media hub, the government of the United Arab Emirates (the UAE) provides world-class infrastructure and good working environments including visa issues to multinational multimedia groups including CNN and BBC (Al-Abed et al. 2006)

So far, the global animation cities identified here are based on the total number of animation studios in each city. As we would expect, cities with large populations generally have large numbers of animation studios. But which cities have more than we would expect? A hint at an answer can be found by calculating the number of animation studios per 1 million people in each city (Figure 5.4). This calculation is done only for cities with eight or more studios.

First, this provides unusual results especially for alpha animation cities. Compared to the world animation cities (Figure 5.3), based on the absolute number of animation studios, the world cities based on animation studios per million population (Figure 5.4) has only one alpha animation city, 28 beta animation cities and 174 gamma animation cities (Figure 5.2 and Table C.2).

21 International Forum for Animation Technologies 86

Source: based on data in AWN (2008)

Figure 5.4. World animation cities by per capita

Annecy is the only alpha animation city when calculated per 1 million people. To define the groups above, more than 50 studios per 1 million people is a condition for alpha animation city and Annecy has 74.0 animation studios per 1 million people. Second, following Annecy, 28 cities are shown in beta world animation cities. Of the beta cities,

17 cities in Europe, six cities in the US, five cities in Canada and 1 city in New Zealand are identified. These cities have more than 11 and less than 50 animation studios per 1 million people in each city.

87 Third, some cities in the beta group appear in other lists of world cities (Beaverstock et al. 1999). For example, Los Angeles, London, Paris and New York are joined by

Toronto, Vancouver, San Francisco, Copenhagen and Oslo. In general, the cities of the beta animation city group are similar to other lists of world cities.

Fourth, many cities in Europe place in higher rank. Especially, both the beta and gamma groups include many cities in Europe. We can see small cities in Europe such as

Bristol, Brighton, and Cardiff (UK) in the beta group.

Fifth, the status of animation cities in Asia is somewhat different when controlling for population from their status based on the absolute number of animation studios.

Animation cities in Asia are clearly important world cities in the animation industry, particularly in both the alpha and beta groups. However, the importance of cities in Asia seems to shrink in number of animation studios by number of population compared to absolute number of animation cities. Thus we can say that animation studios are mainly located in big cities in Asia.

In general, animation studios are found in large world cities as well as small and medium-size animation cities in Europe, such as Annecy, Cardiff and Bristol. However, this pattern appears differently in Asia. Big-size cities, including Bangalore, Chennai,

Hyderabad, Seoul and Taipei, turn out to be major animation cities in Asia. These cities are regional centers of economy and culture where many people live in. Thus people in creative fields in Europe are more dispersed than those people in Asia.

88 City (Number of studios Per capita) Alpha Annecy (74.0) Beta Bristol (38.2), Brighton (35.8), Halifax (35.0), Vancouver (29.3), Cardiff (28) (28.7), Los Angeles (25.1), Toronto (22.8), Dublin (21.2), Cologne (21.0), London (20.8), Paris (20.3), Copenhagen (19.3), San Francisco (18.3), Montreal (17.9), Brussels (17.0), Munich (16.2), Austin (15.5), Helsinki (14.6), Sofia (14.6), Portland (13.3), Orlando (13.1), Auckland (12.7), Ottawa (12.5), New York (11.8), Milan (11.7), Zagreb (11.6), Valencia (11.3), Oslo (11.2 ) Gamma Amsterdam (10.9), Taipei (10.7), Calgary (10.4), Chennai (10.1), Stockholm (17) (9.4), Prague (9.4), Boston (9.2), Bangalore (8.8), Hamburg (8.8), Salt Lake City (8.5), Bilbao (8.5), Hyderabad (8.3), Brisbane (8.3), Budapest (8.2), Kochi (8.2), Sydney (8.1), Berlin (8.0) Source: calculated from data in Animation Industry Database (2008)

Table 5.2. Cities of animation studios (Number of animation studios that have more than 8 studios per 1 million population)

5.4. Conclusions

From the collected data, locations of 4,212 animation studios are categorized by

groups for explaining spatial patterns of the animation industry and production. To do this, the concept of alpha, beta and gamma world cities are adopted from previous studies.

Based upon results from grouping of animation cities, characteristics of the spatial

patterns of the animation industry are as follows.

First, overall locations of the animation industry are extended out globally: 408 cities

have at least 1 animation studio.

Second, world cities are dominant production places for the animation industry. Los

Angeles, New York, Paris, London, and Toronto are the major animation cities, each with

over 100 studios.

Third, some specialized cities are shown in the animation industry. These cities show

distinctive feature in the hierarchy of the animation industry. In particular, two cities in

89 France, Annecy and Angoulême, are unique compared to size of city or other world cities.

France’s long-time strength in animation production is no doubt responsible for this result.

Fourth, some countries, particularly India, have many animation studios in major national cities, such as Chennai, Mumbai and Bangalore. This characteristic is also seen in Seoul (South Korea) and Manila (The Philippines), national capitals and the largest metropolitan area in each country.

Based upon the above results, the globalization of the animation industry is demonstrated, but only tentatively in Africa and Latin America. However, the above results mostly focus on location of the industry rather than linkages and networks of animation production. This does not give us full understanding of worlds of production.

Thus, networks of the animation industry from selected countries will be presented and analyzed in the next chapter.

90

CHAPTER 6

GLOBAL PRODUCTION NETWORKS OF THE ANIMATION INDUSTRY

6.1. Introduction

The previous chapter identified the top-ranking global animation cities and compared

those cities and the global media cities. The list of global animation cities also pointed to

possible explanations for the location patterns of the animation industry. One of the

characteristics of cultural industries, agglomeration in metropolitan areas, is reinforced.

While some global animation cities also are identified as world cities in other research,

specialized animation cities that have not appeared in other studies of world/global cities are observed in this study, including Annecy, France, and Brighton, UK. These cities have not appeared in other studies of world cities, but they are important cities in the animation industry. Especially, these cities are top rank cities in their ratio of number of animation studios and population. In the case of other world cities, such as New York,

London and Paris, these world cities also are top on the rank of total numbers of animation studios. However, small cities are identified as specialized animation cities.

This chapter presents global production networks (GPNs) in the animation industry. The analysis of production networks makes use of data on the clients or customers of 1,468 animation studios. Those examined are located in agglomerations or clusters of animation 91 - that is, cities where at least four studios (and up to several dozen) have identified their clients.

6.2. Networks of animation studios in 20 cities

In order to show the interlinked networks that exist among animation studios and their cities, animation studios in 20 cities are analyzed. The principle of selection is the availability of a list of a studio’s clients on the Animation Industry Database website

(Animation World Network 2008a). Only a minority of animation studios report their clients list on the AWN data set. This research focuses on the clients of 540 animation studios in 20 different cities. This is 13% of the total of 4,242 animation studios, and

36.8% of all studios which identified one or more of their clients.

Numbers of clients that are shown in the list vary by each studio. Some studios provide the names of more than 10 clients and some studios add only one or two animation clients. Of the total 4,242 studios, 1,468 animation studios (35.7%) provide locations of clients. Also, the locations of most clients are not provided by many animation studios, thus locations of their clients were searched through the Internet.22

However, these 1,474 are not evenly distributed in the world. The 540 studios that provide a large client list are in six different continents (Table 6.1).

22 Location information of client firms was searched in hoovers.com or client firm’s websites. However, some location information could not be found through any sources. 92 Continent Country City Number of Animation studios companies per 1 million people Africa South Africa Johannesburg 7 5.2 Asia India (76) Bangalore 17 8.8 (95) Chennai 27 10.1 Hyderabad 7 8.3 Mumbai 18 3.8 Delhi 7 3.1 South Korea Seoul 9 5.3 Europe Austria Vienna 4 4.9 (84) Sweden Stockholm 12 9.4 United Kingdom Cardiff 7 25.7 (68) London 61 20.8 Oceania New Zealand Auckland 10 11.8 N. Canada (87) Montreal 19 17.9 America Toronto 47 22.8 (332) Vancouver 21 29.3 United States Los Angeles 104 25.1 (251) New York 100 11.8 Portland 10 13.3 San Francisco 37 18.3 S. Argentina Buenos Aires 16 3.0 America Total 540 Source: calculated from AIDB (2008)

Table 6.1. Numbers of animation studios in 20 cities with the list of clients

The largest group is animation studios in North America (Canada and the United

States). Cities with studios reporting client lists include 104 animation studios in Los

Angeles, 100 in New York, and 47 in Toronto. The second largest group is animation studios in Asia, where five cities in India and one city in South Korea are selected to be analyzed. Chennai has 27 studios reporting their clients. In Europe, four cities have studios that report their client networks, led by 61 animation studios in London that report their business connections. Finally, in the southern hemisphere, are the networks of studios in two cities, Johannesburg (South Africa) and Buenos Aires (Argentina). 93 After choosing animation studios in 20 cities, the locations of their clients provide a rare glimpse at the global production networks of the animation industry, especially connections between producers and clients, which also indicate flows among cities. The next part of his chapter presents the networks of studios in each city.

6.2.1. North America

The networks of studios in the four US cities are shown in Table 6.2. In the first city,

Los Angeles, 104 animation studios identify a total 898 clients. In this case, Los Angeles includes the Combined Statistical Area (CSA) as defined by the US Census Bureau.

Therefore, Los Angeles and Hollywood are in the same area in this study.

Networks of Los Angeles based animation studios tend to be localized. Local ties are related to animation or live-action film production. In this case, their clients are major film production studios or animated film studios. Regional links (to clients in other US cities) also comprise a high percentage (37.6%). This number is same as the percentage of networks with other countries including Canada, Europe, Japan and other global (449),

94 San Type LA % NY* % Francisco % Portland % Local 449 50.0 198 27.5 29 8.5 12 17.9 Regional Other US 338 37.6 345 48.0 166 48.7 44 65.7 Canada 28 3.1 9 1.3 2 0.6 Hollywood N/A 108 15.0 118 34.6 8 11.9 Europe 37 4.1 40 5.6 11 3.2 3 4.5 Global Japan 22 2.4 5 0.7 13 3.8 OG 25 2.8 131.9 2 0.6 Global Total 112 12.4 175 24.5 146 42.8 11 16.4 Total 898 100.0 718 100.0 341 100.0 67 100.0 NOTE: Local – LA, NY, San Francisco, Portland except Hollywood (LA) Regional – Other US, Other Global OG_LA = Argentina + Australia + Brazil + China + Japan + New Zealand + South Korea + Thailand OG_NY = Australia+ China (Hong Kong) + India+ Israel+ Malaysia+ Pakistan+ South Africa + South Korea OG_SF = New Zealand + Israel * Locations of 19 clients of New York area studios were not found.

Table 6.2. Networks of animation studios in US

and this is one-half of all ties of the studios in Los Angeles. As major broadcast

companies are located in New York, networks of Hollywood animation studios are highly

regionalized outside Hollywood but within the US.23 Both local and regional networks combined account for 75.5% of all clients of New York studios, and 87.6% of clients of studios in Los Angeles. Relatively few of their clients are located outside North America.

The second city for animation in the US is New York. The 100 studios in the New

York CMSA identify a total of 718 clients. New York shows a lower degree of localized networks (24.5%) compared to Los Angeles. A total of 48% of clients are in other US

23 Three American major broadcast networks, ABC, CBS, and NBC are located in New York. 95 regions, bringing the percentage of local and regional networks combined to 75.5%.

Regarding relations with Hollywood, 15% of New York studios’ clients are located in

Hollywood.

The third city is San Francisco. The most distinctive characteristic is weak local networks. Only 8.5% of total networks in San Francisco are within the San Francisco

CMSA. On the contrary, nearly one-half (48.7%) of San Francisco-based animation studios are involved in projects from other US regions. The 37 San Francisco studios identify 118 clients in Hollywood, or nearly 3.2 per studio. Locations of Pixar and many

CGI animation studios are found in or near San Francisco. The last city in the US analyzed here is Portland, where 10 animation studios report their clients. Portland, like

San Francisco, shows weak local networks (17.9%). Reliance on clients in other US areas, or regional networks, is much higher than in the local area.

In sum, networks of animation studios in Los Angeles are highly localized, drawing on the rich base of film studios and other animation customers in . On the contrary, animation studios in New York find their clients throughout the US rather than in the local area. Studios in San Francisco and Portland also show weak localized networks. However, these two cities are highly dependent on regional networks – notably to clients in Hollywood for San Francisco-area studios. Thus, animation studios in these four US cities have strong local or regional networks but weak networks with other countries. The largest agglomerations of animation studios, Los Angeles and New York, have the most global networks of clients. These are small in percentage terms, but include dozens of clients in Europe: 37 for Los Angeles studios and 40 for New York studios. In

96 addition, studios in Los Angeles have 22 clients in Japan, and San Francisco studios have

13 Japanese clients.

Table 6.3 shows networks of animation studios located in three cities in Canada.

Montreal is the economic and regional center of Quebec. Toronto is the national center of

the economy and culture in Canada. The third city, Vancouver, is well known as

Hollywood’s runway production location.

The National Film Board of Canada (NFB), initially known as the National Film

Commission and now a federal cultural agency within the portfolio of the Canadian

Heritage Department, has supported Canadian animation production as well as live-action film production. Montreal has been the center of animation training and has trained young and talented animators at the NFB. Young animators in the NFB, including

Norman McLaren and his colleagues, created animation films with innovative techniques beginning in the 1990s. Their work was the part of French program of the NFB

(McWilliams 2006). In addition to this, French Canadian culture has influenced Canadian animation (National Film Board 2006). After the NFB divided English and French language studios, five other cities, Toronto, Vancouver, Edmonton, Winnipeg and

Halifax, became other branches of English language studios and Montreal remains the branch of French language studio. Also, the production facility in Montreal is well- known for its good production environment (Bendazzi 1994).

In Table 6.3, the category “local” means each metropolitan area and “regional” designates other regions of Canada except each city. Also, other global (OG) networks vary by their clients’ locations.

97 Montreal % Toronto* % Vancouver % Local 30 23.4 65 16.8 25 13.6 Regional Other Canada 31 24.2 106 27.5 51 27.7 Hollywood 14 10.9 80 20.7 34 18.6 US 19 14.8 100 25.9 51 27.7 Europe 22 17.2 12 3.1 5 2.7 Global Japan 5 3.9 20 5.2 16 8.7 OG 7 5.5 3 0.8 2 1.1 Global Total 67 52.4 215 55.7 108 58.7 Total 128 100.0 386 100.0 184 100.0 NOTE: Local – Montreal, Toronto, Vancouver Regional - Canada OG_Montreal= China + India + Israel+ South Africa+ Turkey OG_Vancouver= Australia + Mexico OG_Toronto= Mexico *Locations of 6 clients of Toronto area studios were not found.

Table 6.3. Networks of animation studios in Canada

The Montreal vicinity area shows stronger local ties (23.4%) than the other two cities.

The proportion of client networks that link studios in Montreal and other locations in

Canada (24.2%) is similar to the percentage found in the Montreal area. Studios in

Montreal have more global clients than local or regional. A total of 52.4% of Montreal

animation studios’ clients are located in other countries. The highest proportion appears

in networks with clients in Europe (17.4%) – a percentage that is higher than of clients in

Hollywood (10.9%) or other US regions (14.8%). Animation studios in Montreal have many clients in Europe, including ImageEngine and Television Suisse Romande.

Montreal studios identify only five clients in Japan.

Toronto is the largest city in Canada and large Canadian animation studios, such as

Nelvana, have their headquarters in this city. Local networks within Toronto are weaker

98 than for Montreal studios (16.8%). Additionally, the proportion of global networks of

Toronto (55.7%) is higher than both local and regional networks (44.3%). Especially,

other areas of US (25.9%) and Hollywood (20.7%) are important clients to animation

studios in the city. Clients in Japan (20, or 5.2%) outnumber those in Europe (12, or

3.1%).

Animation studios in the third city, Vancouver, also have relatively few local client networks (13.6%), but the share of clients in regional networks of Vancouver studios

(27.7%) is much higher than local networks. By contrast, their dependency on Hollywood

(18.6%) and other US clients (46.3%) is high. Few studios have clients in Europe (5, or

2.7%). Like studios in Toronto, animation studios in Vancouver have many clients in

Japan (16, or 8.7%).

In general, studios in the three Canadian cities can be categorized as more globalized network cities than are studios in major US animation centers. The production networks of studios in all three cities are predominantly global – that is, the majority of their clients are outside Canada. Toronto and Vancouver show strong ties with clients in the US and particularly Hollywood, but the largest group of clients of Montreal studios are European firms and film production companies.

6.2.2. India

Five cities in India are shown in Table 6.4. These five cities also are the first tier high- tech centers in India (Bound 2007). The city that has the largest number of studios in the

AIDB is Chennai with 27. Chennai studios also have very localized client networks:

51.6 % of clients are local – that is, within India. The proportions of local networks of

99 other city, Mumbai is also high. These highly localized networks suggest that customers

of these two Indian animation studios are less oriented to countries outside India.

However, global networks of customers are more common for studios in four cities,

except for Chennai. In general, Animation studios in Indian cities have not strong

networks to Hollywood. By contrast, studios in Mumbai, also known as Bollywood, have

more networks to Hollywood, compared to other four cities. Increasing outsourcing from

Hollywood studios have brought post-production tasks, especially visual effects, into

India (Govil 2005). The data in Table 6.4 suggest that this outsourcing is centered in

Mumbai and Bangalore and Mumbai, including work for clients in the US but outside

Hollywood as well as clients in Europe. The Indian studios that have clients in Japan are located in Bangalore. In short, animation studios in Chennai and Mumbai are largely dependent on local and regional clients rather than global clients but Bangalore, Delhi and Mumbai posses more globalized networks.

6.2.3. Europe

The fourth group of studios is located in four cities in Europe: London, Cardiff (both

in the UK), Vienna (Austria) and Stockholm (Sweden) (Table 6.5). In this group, local

clients are considered to be those located in the country of each city and regional

networks are clients elsewhere in Europe.

100

Bangalore % Chennai* % Delhi % Hyderabad % Mumbai* % Local 44 30.6 111 51.6 22 38.6 13 39.4 80 50.3 Regional 31 21.5 64 29.8 9 15.8 7 21.2 13 8.2 Global Hollywood 8 5.6 2 0.9 0 0.0 0 0.0 12 7.5 US 30 20.8 11 5.1 13 22.8 8 24.2 27 17.0 Canada 2 1.4 1 0.5 4 7.0 1 3.0 3 1.9 Europe 17 11.8 16 7.4 7 12.3 2 6.1 10 6.3 Japan 4 2.8 2 0.9 0 0.0 0 0.0 1 0.6 OG 8 5.6 83.7 23.5 2 6.1 13 8.2 Global Total 69 47.9 40 18.6 26 45.6 13 39.4 66 41.5 Total** 144 100.0 215 100.0 57 100.0 33 100.0 159 100.0 NOTE: Local – Bangalore, Chennai, Delhi, Hyderabad and Mumbai Regional – Other India OG_Bangalore = Australia + China + Singapore + + Turkey + Saudi Arabia OG_Chennai = Australia + Malaysia + Singapore + UAE + Ukraine 101 OG_Delhi = New Zealand + Singapore OG_Hyderabad = Australia + Pakistan OG_Mumbai = Australia + Brazil + Egypt+ Kenya + Kuwait + Singapore + South Korea + Tanzania + UAE *Locations of 4 clients were international organizations and not included. ** Locations of total 10 clients in India were not found

Table 6.4. Networks of animation studios in India

101 Animation studios in all four cities in Europe have locally oriented networks. The

most localized networks are those of studios in London (64.0%), followed by those in

Stockholm (61.7%).Therefore, these four cities also are less globalized in terms of

clients’ locations. Furthermore, studios in two cities, Cardiff and Vienna, have no

connections with clients located outside Europe or the US.

The animation industry in Cardiff has the support of a Welsh television channel,

(Sianel Pedwar Cymru).24 Cardiff is the center of the Welsh animation industry and a

media center outside London. The unique Welsh culture and language, supported by S4C,

includes support for local cartoon makers (Welsh Animation Group 2004). Additionally,

the production networks of animation studios in Cardiff have expanded to Hollywood,

accounting for 13 clients, or 31.7% of all clients. London studios have a total of 13

Japanese clients (2.9% of all clients).

In general, animation studios in the four cities in Europe have production networks that are strongly local and, secondarily, regional within Europe. Production linkages to the US are much more common than to Asia or elsewhere.

The last group includes the production linkages of animation studios in four cities:

Seoul (South Korea), Auckland (New Zealand), Johannesburg (South Africa) and Buenos

Aires (Argentina). These are areas of the global economy not represented by the cities discussed thus far. Thus, regional networks of Seoul are considered to be China or Japan,

but only customers in Japan are included in this regional group. No customer group in

China is named by studios in Seoul.

24 S4C: Welsh for Channel Four Wales

102

% London % Cardiff % Vienna % Stockholm % Local 283 64.0 24 58.5 11 57.9 60 61.9 Regional Other Europe 32 7.5 4 9.8 1 5.3 19 19.6 Hollywood 40 9.0 13 31.7 US 56 12.7 631.6 16 16.5 Canada 9 2.0 Global Europe N/A Japan 13 2.9 15.3 OG 9 2.0 2 2.1 Global Total 127 28.6 13 31.7 7 36.8 18 18.5 Total 442 100.2 41 100 18 100 97 100 NOTE: Local - Each city and country Regional - Europe

103 OG_London = Australia + Bangladesh + India+ Jamaica + New Zealand + South Korea + Turkey OG_Stockholm = Malaysia + Thailand

Table 6.5. Networks of animation studios in Europe

103 First, animation studios in two cities, Auckland (48.2%) and Johannesburg (44.8%), have the most localized networks among the four cities, but these local production networks include less than 50% of all clients. On the contrary, Seoul and Buenos Aires have far lower local ties, 27.1% and 26.9% respectively. As mentioned above, clients in

Japan are defined as regional customers of studios in Seoul. Also, subcontracting relations between Japanese studios as customers and South Korean studios as subcontractors have existed for a long time (Lent and Yu 2001).

Second, all four cities have high degrees of global client networks: 48% to 64%.

Details of global networks vary by each city. Networks of Buenos Aires studios show a high degree of connections to Hollywood (15.4%) and to other parts of the US (37.2%).

As the Latin American market for kids increases, major specialized cartoon channels, such as Nickelodeon, and Disney, set up their co-production centers for

Latin America in Mexico, Brazil and Argentina (Baisley 2007). The fourth city,

Johannesburg, also is dependent on networks with US clients. The production networks of Seoul animators are globally diverse, including projects for Canadian clients, clients in

South East Asia, and Europe. Indeed, all four cities have 10% or more of their clients in

Europe. Studios in Buenos Aires are best linked to clients in the US outside Hollywood, and secondarily to those in Hollywood; together these clients account for 52.6% of all clients.

Networks of animation studios in 20 cities in ten countries have been presented. The role of local clients is very important for studios in some cities, such as Los Angeles

(Hollywood) and London. Studios in Europe and India have highly localized networks.

104

Type Seoul % Auckland % Johannesburg % Buenos Aires* % Local 13 27.1 41 48.2 26 44.8 21 26.9 Regional Japan 5 10.4 3 3.5 2 3.4 7 9.0 Hollywood 6 12.5 8 9.4 0 0 12 15.4 Other US 3 6.3 15 17.6 21 36.25 29 37.2 Canada 9 10.4 2 2.4 0 1 1.3 Europe 5 18.8 10 11.8 8 13.8 8 10.3 Global Hollywood 6 12.5 8 9.4 0 0 12 15.4 Japan Regional 1 1.2 Global Total 24 62.6 41 48.3 30 51.8 50 64.1 Total 48 100 85 100.1 58 100 78 100 NOTE: Regional Auckland = Australia Johannesburg = Africa Buenos Aires = Bolivia + Mexico+ Puerto Rico + Uruguay (Latin America) OG_Seoul = India + Singapore + South Africa+ Thailand

OG_Auckland = China+ Malaysia + Mexico+ South Korea

105 OG_Johannesburg = Australia + Algeria + Madagascar OG_Buenos Aires = None *Locations of 4 clients in Buenos Aires were not found

Table 6.6 Networks of animation studios in other cities

105 Also, the role of Europe as a source of clients is somewhat lower than in the US.

Table 6.7 shows the locations of studios whose production networks are most localized

(column a) and the most globalized (column b). In addition, it shows the locations of

studios whose networks of clients are most in Hollywood (column c). Based on these

results, several types of networks of the animation industry are presented the next section.

c. Top 5 linked to Rank a. The most localized b. The most globalized Hollywood* 1 London Buenos Aires San Francisco 2 Stockholm Seoul Cardiff 3 Cardiff Vancouver Toronto 4 Chennai Toronto Vancouver 5 Mumbai Montreal Buenos Aires * LA CMSA is excluded in the rank.

Table 6.7. Top 5 cities in each network type

6.3. Global production networks of the animation industry

In order to understand networks of animation studios, global production networks

(GPNs) can explain the global nature of animation production. The current animation

industry has several characteristics.

First, the influence of large multinational conglomerates has increased. These media

conglomerates – AOL Time Warner, The Walt Disney Co., , News Corp, Sony

Entertainment, and NBC Universal Inc. – run including animation and

many cable channel companies (Mossig 2008). They are engaged in activities from pre-

106 production to distribution, as well as new sources of revenue, including selling DVD and

licensing products. Thus these media conglomerates have impacted on the whole

production process (Scott 2005; Wasko 2003). Also, financing and distribution are very

important to major media conglomerates (Coe and Johns 2004).

Second, “runaway production” has occurred to reduce production costs and look for

creative talent in both live-action and animation film. This has led to agglomeration of

pre- and post-production in Hollywood. Animation production for TV series has been

dependent on runaway production since the 1970s (Sito 2006; Tschang and Goldstein

2004).

Third, despite the decentralization of animation production processes, global markets

are dominated by multinational conglomerates using various forms of partnership, co-

production, and joint ventures (Scott 2006a, pp. 77-78). In other words, countries outside

the US are not only direct markets of Hollywood with direct distribution but also

production sites for other platforms, such as DVD/video and TV. Besides production cost

or talented labor, animation production cannot be separated from its cultural context and the regulations or policies of each national market. For example, France and Canada strongly subsidize their national film industries, including animation. Therefore, diverse

strategies such as co-production have been adopted to explore global markets and have

been considered as effective marketing by multinational media conglomerates. Co-

production, especially, has become a very common production type.

107

6.3.1. Co-Production

As production costs have skyrocketed, co-production emerged as a popular strategy

for studios in many countries. Funding flows for co-production, from Hollywood to other

countries, or other countries to Hollywood, are found at the same time. Co-production

can be defined in many ways. According to Raugust (2004, p. 303), co-productions are

“animation productions involving more than one company contributing creative services”.

In this context, there are various types of co-productions. All these different levels of co- production are results of negotiation between the partners. Canada has partially funded co-production of animation by Canadian studios with co-production partners in more than

20 countries.

The transnational character of animation in Europe is promoted by the Council of

Europe’s Eurimages program, which supports co-production of animated feature films, and by CARTOON, funded by the MEDIA Programme of the European Union.

CARTOON, the European Association of Animation Film, sponsors gatherings where artisans meet for collaboration, knowledge-sharing, and training, including Cartoon

Forum, a co-production forum for European animation TV series; Cartoon Movie, a co- production forum for feature-length animation mainly for the cinema; and Cartoon

Masters, four training seminars per year, dealing with specialized subjects. The media giants have taken advantage of the innovative animations being produced in Europe, doubtless enjoying as well the subsidies for co-production (Masters 2005). As co- production has increased, animation studios in China and India have become popular co-

108 production partners of studios in Europe, Japan, and North America recently (Raugust

2004; Govil 2005).

Hirsh (1998) proposes that successful co-production should be an appropriate mixture

of various components and with no specific cultural references, instead of “replicating the

Hollywood formula.” However, sometimes having an “American commercial touch” can

be a successful tip to co-production with US firms (Strover 1995). Furthermore, from the

point of view of the major studios, co-production can provide flexibility to those that

work with small studios and bring new and fresh creativity from other countries (Raugust

2007). Increasingly, then, transnational capital is complemented by transnational labor, as

“new Argonauts” (Saxenian 2006) are involved in homogenizing the product, and as some animators with big-studio experience have become entrepreneurs in new studios, in

Asia, Canada, and elsewhere (Raugust 2007).

Nowadays, movement of film professionals is more intense than ever, and with cross-border financing for films more and more of them work internationally. ... They are no longer exiles, and not even émigrés, but members of the new class of people involved in transnational (Iordanova, 2002, p. 527).

6.3.2. Unbundling the animation production process

As mentioned before, some tasks of animation production have been outsourced to other countries, but other tasks have become more centralized in Hollywood or London or

Tokyo (Goldsmith and O'Regan 2005). Two tasks – conceptualization, including

and character creation, and some post-production tasks, such as recording

109 dialogues using famous Hollywood actors and actresses and the sound track – remain agglomerated in southern California (Neuwirth 2003; Wright 2005).

In general, labor-intensive production work still is commonly outsourced to studios in Asia and other subcontracting countries. By contrast, animation tasks that need more creativity and more control remain in North America and Europe (deGraf 2004;

Tschang and Goldstein 2004). This is a result of the spatial division of labor and unbundling of tasks, which has been widely observed starting in manufacturing sectors and is now widespread in service industries (Baldwin 2006).

Asian animation studios are still considered as a home of low-cost labor but this concept has begun to change (Wong 2006). Singapore has become a hub of animation production through co-production with partners in Canada, the US and South Korea.

Furthermore, located its Asian subsidiary in Singapore in 2004. According to

Wong (2006), Singapore and other Asian countries have changed the traditional map of animation production. In addition to this, expansions into global markets by major studios have encouraged the use of local sources of animation, set in the local cultural context and employing local talent to reduce risk when entering new markets (Marr 2007).

Creating local animation content means work for local studios, but only if they are linked to the global conglomerates. Without a comprehensive understanding of the full production process, subcontracting studios cannot compete on an equal footing with major animation studios.

Even CGI work has been outsourced recently, because of the increased use of less expensive software and hardware and the spread of infrastructure such as the Internet and

110 communication systems (Raugust 2007). Especially, simple but labor intensive types of

visual effects have been sent to Bangalore, Chennai and Hyderabad recently (Govil 2008,

2005). However, Jones and Oliff (2007) point out that still many difficulties remain to

maintain artistic integrity from outsourcing. Despite difficulties of CGI outsourcing, less creative and more technical tasks in CGI production have been sent to other countries

(Tschang and Goldstein 2004).

6.4. Different types of production networks

In order to understand global production networks of the animation industry, six distinctive types of networks are chosen from the networks of the studios in the 20 cities discussed in Section 6.2. Each type shows a different proportion of local, regional, and global networks including links to Hollywood. From global customers to regional center of the animation industry, following different networks will help to initialize our knowledge of GPNs of the animation industry.

6.4.1. Global producers

Hollywood is the center of the global movie industry, including animated films, and wields enormous influence worldwide (Figure 6.1). In recent years, financing and distribution, largely controlled by Hollywood conglomerates, have enabled them to dominate global markets. However, the animation studios of Hollywood are mainly dependent on local clients, which are abundant in the Los Angeles area and contribute buzz. A city that has similar, local networks is London. Both cities have global networks of studios in other countries that are customers or co-production partners. 111

Figure 6.1. Global producer/ client: Hollywood type

6.4.2. National animation producers

While studios in Hollywood and London have highly localized networks and the status of global producers and clients, animation studios in San Francisco work almost exclusively on projects from clients in Hollywood and other US regions. These studios are not locally embedded and do not depend on clients who are geographically close.

Even though global networks appear, the intensity of ties outside the US is noticeably weak or low compared to Hollywood and other US clients. For example, clients in 112 Europe and Japan combined comprise only 7.0% of the customers of San Francisco area

animation studios.

Figure 6.2. Hollywood subcontractor and high regional network: San Francisco

6.4.3. Networking without Hollywood

Another city that contains interesting relations primarily to clients outside Hollywood is Montreal. Montreal, like Vancouver, is a well-known runway shooting location of

Hollywood live-action films. The networks of Montreal animation studios, however, are unique compared to other Canadian cities. Clients in Hollywood and elsewhere in North

113 America are the most important client groups of Montreal animators, but clients in

Europe also are a major client group to studios in Montreal (17.2%). The proportion of clients in Europe is higher than even those in Hollywood or the rest of the US. Quebec’s culture and French language are unique in North America and these differences turn to be an advantage to attract European clients.

Figure 6.3. Networks of cultural closeness: Montreal

6.4.4. A focused network

Cardiff exhibits a very simple network with both a high degree of local and nonlocal clients from only two regions: Hollywood and elsewhere in Europe (Figure 6.4). Studios

114 in Cardiff have no clients in Canada or in the US outside of Hollywood. Animation

Figure 6.4. Regional networks: Cardiff

studios in Cardiff focus on a very limited set of clients. In this case, proximity is an important factor of making networks and cultural similarity also may influence results.

Cardiff becomes a local center of the industry and a strong subcontractor or co-producer for customers in Hollywood. However, it is difficult to describe this as a global network, because of the highly focused connections to only a couple of client groups.

115 6.4.5. A locally embedded network

The most localized networks are those of studios in Chennai, where nearly 90% of

clients are within (Figure 6.5). Other Indian cities also have a high degree of dependence

on local networks, but the case of Chennai has the highest degree of local embeddedness.

Beyond the highly localized networks, other networks of Chennai studios are, so far, still

rather limited. Animation studios in Chennai have not developed global networks yet and

have stayed in the local market. No links to customers elsewhere in Asia could be shown

in Figure 6.5.

Figure 6.5. Locally embedded network: Chennai

116

6.4.6. Global subcontractor

Regarding influences of Hollywood, animation studios in Buenos Aires have been

affected by the power of Hollywood recently (Figure 6.6) Buenos Aires studios have

been involved in the global market just since the 1990s, building upon the long history of

Figure 6.6. Global subcontractor with strong regional and Hollywood networks Buenos Aires

animation in Argentina – as old as that in the US. Large media conglomerates in the US have begun to develop the Latin American broadcast market using specialized cartoon or 117 kids channels, and local animation production has developed as local demand has

increased. However, 64.1% of their clients are located outside Buenos Aires, especially in

Hollywood. Thus Buenos Aires animators have emerged as subcontractors of US clients,

but their networks also include 10.3% clients in Europe.

6.4.7. A diversified global network

The last type of network of global production animation industry is found in Seoul

(Figure 6.7)

Figure 6.7. Global subcontractor with various networks: Seoul

118 As mentioned before, animation studios in Japan, Hollywood, and elsewhere in the US

have connected to animation studios in Seoul since the 1960s. Thus, Korean animation studios have accumulated know-how and experience based on subcontracting for four

decades. A large variety of customers exists in the current production networks of

animation studios in Seoul. Clients in Europe and Canada have become influential clients

and Korean animation studios have expanded their networks to clients in many countries

consistently. Networks with diversified clients are the most distinctive characteristic of

animation studios in Seoul.

6.5. Conclusions

In this chapter, networks of animation studios in 20 cities that provided their client

lists in the Animation Industry Database (AIDB) on the data set have been analyzed and

explained as global production networks (GPNs) of the animation industry. GPNs of the

animation industry have grown as a result of several sets of forces. First, firms exploit the

spatial division of labor to seek out pools of labor with different levels of creativity and

skills. Second, the global media conglomerates employ various strategies to explore and

satisfy different global audiences. Providing animation products for diverse local markets

has demanded local animators familiar with different cultural contexts. Third,

development of technology, especially Internet infrastructure and less expensive software and hardware has led to the increasing use of CGI technology in countries beyond the original bases of Japan and the US.

119 While the animation industry has developed including these characteristics, the current networks of animation studios in different countries have expanded their networks in different ways. Thus seven different types of networks could be identified.

Global production networks influence each city’s status in ways that are more complicated than just skills or technology.

The next chapter draws some conclusions from this research, and suggests comments for future research.

120

CHAPTER 7

CONCLUSIONS

7.1. Summary of Findings

The goal of this research was to investigate the structure and evolution of the animation industry at the global scale. The first question about the animation industry was the characteristics of the production of global animation industry. The second question of the research was the recent spatial patterns of production in the animation industry. The last question was networks of animation studios under global production networks.

In order to explain characteristics of the animation industry, several aspects of 4,242 animation studios collected from the Animation Industry Database (AIDB) are used for the research. These studios provide their locations, types of business, specialties, and types of animated work or forms of projects/ deliverables. To fit diversified market needs, these animation studios use various specialties and newly developed distribution windows.

The map of the animation industry uses 4,212 locations of animation studios at the scale of urban areas. For better understanding of the spatial patterns of the animation industry, the concept of alpha, beta and gamma world cities are adopted from previous

121 world city studies. Four main findings of the spatial patterns of world animation cities are as follows.

First, despite the concentration of the animation industry in some cities, the animation

industry is located globally. A total of 408 cities in 92 countries have at least one

animation studio. Second, world cities, such as Los Angeles, New York, Paris, London,

and Toronto, are identified as the major animation cities, each with over 100 studios.

Third, specialized animation cities appear. There are two cities in France, Annecy and

Angoulême, each with a long history in the French animation industry. Fourth, some

Asian countries, such as India, South Korea and the Philippines, also are home to many

animation studios.

In order to understand worlds of production, global production networks (GPNs)

analysis is adopted. Analysis of networks among 20 cities which have several studios that

identify their clients in the Animation Industry Database (AIDB) is done. In particular, links of two different agents, the suppliers (the studios) and their customers or buyers (the

clients), are the base of the analysis.

First, different levels of creativity and skills have drawn a spatial division of labor onto the animation industry. Second, various strategies, such as co-production, are selected by the global media conglomerates to penetrate the local markets for various audiences’ tastes. Third, many latecomer countries have begun to enter production of

CGI animation because of Internet infrastructure and less expensive and easy-to-use hardware and software packages.

122 Based on these characteristics of the current animation industry, animation studios in

different cities develop different networks using their various situations. Seven different

types of networks are identified: global producers, national animation producers,

networking without Hollywood, a focused network, a locally embedded network global

subcontractor and a diversified global network. Furthermore, these network types have

been influenced not only by skills and technology, but also by more complicated factors

such as institutions, business culture and cultural content.

7.2. Contributions of this study

This study is helpful to understand the geography of the animation industry, on which

there has been little research. Based on presenting the current map of animation

production, the different status of animation cities was investigated. Previous studies of

the entertainment industry have focused on the film, music and media industries, but

there have been few attempts to shed light on the global animation industry. In addition to

this, data on the animation industry is hardly found except for the data in AIDB. In

general, data that are used in many studies of the cultural industries is very aggregated.

The aggregated data sets are easily obtained but the animation industry is hardly

identified. This study compiles a data set from AIDB that is the first comprehensive data

on the global animation industry.

Based on the data, the geography of the animation industry was mapped by country and by city. These maps show the That is globalization of the industry and agglomeration in some mega cities at a global scale. The world animation cities are generally very

123 different from the top-ranking cities identified in other research on world cities. This suggests that cultural sectors respond to aspects of the world economy that are not the same as those which influence advanced producer services for example.

In addition to this, global networks of studios located in 20 cities were presented.

These networks are made up of the links between suppliers and buyers, and they respond not only to low costs but also to various reasons, such as artistic traditions, cultural closeness, experiences of the industry, the levels of creativity and story-telling skills. This analysis provided new knowledge about global production networks, and identifies seven distinct types of networks, which vary by city.

7.3. Limitations

Despite contributions of the study about the animation industry, this research cannot be free from limitations. As pointed out before, obtaining data about the animation industry is very difficult. No complete data set is readily available.

First, this study has focused on a global producer, Hollywood as both a supplier and buyer. The important role of Hollywood cannot be ignored, but the research pays little attention to other global players, such as Japan. Even though Japanese animation is less dominant in terms of worldwide distribution in theater markets, the overall influence of

Japanese animation as global producers is well established. In particular, Japanese animators have dominated TV animation markets for a long time and licensing products based on animated characters has been vital to animation studios in Japan. The partialness

124 of the data from AIDB is recognized. Even though the data set used here set omits studios

from non-English speaking countries, particularly in Asia, such as Japan and China.

A second limitation is that most studios in subcontract did not identify, their clients,

perhaps because of nondisclosure clauses in subcontract agreements, which limits the

GPNs analysis. Based on the data, we could know who some of the buyers and suppliers in the industry, but this did not explain the complete of networks between all buyers and

all suppliers. In addition to this, we have no way to know which exact production tasks

are mainly involved in outsourcing and which are not.

7.4. Suggestions for Future Research

There are, however, some suggestions to be addressed in future research.

First, this research focuses on production of the animation industry at a global scale.

Therefore, local context in the diverse animation centers could not be explained fully. For future research, different scales of research on the animation industry should be tried.

Second, a different research method also is needed in order to understand the different scales of the industry in future research. Furthermore, deeper knowledge and understanding local context including regional history, institutions, and business culture

should be investigated in various ways. For instance, in-depth interviews or surveys to

local animation studios or individual animators would add details to identify the

geography of the animation industry.

In summary, future research should consider the following perspectives: 1) Find better data on the animation industry, especially longitudinal data; 2) Focus on animation

125 production at national, regional and local scales. 3) In order to explain different regional or local animation production, further knowledge of regional or local situations may be necessary. These would uncover the often rich traditions of animation that still exist despite the Disneyfication and globalization of animation that has been occurring for several decades.

126

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144

APPENDIX A

THE PROCESS OF ANIMATION PRODUCTION

145 There are five stages in animation production. The first stage, development

(conceptualization) is the very beginning of the entire production process. At this point, a piece of a story and main characters are visualized and developed by original writers or directors. For more systematic development of the story, producers hire professional story editors (Wright 2005). In addition to the story, the budget, schedule, length of a movie or episode ( episode for TV series), other business related planning and basic concepts of art work will be done at this stage (Tschang and Goldstein 2004). At this stage, original writers or directors have to lock in their financial sources, so they make a production plan, including numbers of scenes, story plot and attractive characters as detailed as possible.

The second stage is pre-production. From this stage, agreement between production team, a purchaser and distributors begin to be important. The key activities at this stage are and making a style guide, that is, the story becomes visualized.

Additionally, “recording of the voice-over audio track” is made and then animators make the animation based upon a style guide and this voice audio track (Raugust 2004).

Designers make decisions for various characters and other details such as background design. Sometimes, this stage can take many months, even up to a year. However, attention in pre-production can reduce production cost and time in later stages.

The third stage is production. This stage is where global production of the animation

industry has occurred especially in 2D animated films (See Figure A.2). Labor intensive

work for making traditional cel-animated film is subcontracted to the animation studios

in other countries. Story boards and characters in the animated film are planned by the

146 major studios, such as Disney, and the subcontracting studios work to a strict schedule.

Production time varies by project; usually the production phase on 3D animated films

takes longer than on 2D animated films.25

For a full-length feature film, the rendering process (calculating the position of each

character’s body parts for each expression or movement) can take more than a year of

round-the-clock calculation. For Madagascar – which depicts the adventures of animals

transplanted from a zoo into – DreamWorks’ computer center (or “render

farm”) ran seven days a week for a year and a half.

Although the subcontracting studios are doing routine tasks, communication is frequent between subcontractors and the major studios that created the original concepts of the animation. For instance, painting by the subcontracting studios has to satisfy their clients, the major studios. To ensure this, they contact between them is frequent and making “a good working relationships” is a key precondition for a good quality film

(Tschang and Goldstein 2004).

The most different process between 2D and 3D animated films at this stage is the

“back-and-forth process” in 3D animated films. Raugust (2004) explains this process in detail:

Animators working in 3D animation and gaming also use a back-and-forth process, completing many tasks historically associated with production during preproduction. For example, when creating the main model pack (like the character design in 2D), a

25 In general, nine to twelve months are needed for making a 2D TV series and 18 months to 2 years for a 2D theatre film. Especially in production of TV animation series, a pilot episode, the first episode of the animation series, is done before the premier date. The rest of episodes are made while the first parts of the series are on air at the same time. In the case of CGI TV series, animators spend six to eight weeks for one episode (Raugust 2004). 147 preproduction task, 3D animators often complete some of the key framing, traditionally a production task. Conversely, the 3D production process will sometimes unearth technological needs that must be resolved, taking a scene back into preproduction. And since producers and directors can review details in CG, just as they can in live action, scenes can be revised immediately, creating more of a continuous or rolling editing process (p. 54).

In this sense, production of 3D animated films is less movable than that of 2D animated

films because the interconnected “back-and-forth” production process of 3D animated

films does not easily allow major studios to set up overseas production (See Figure A.3).

The final stage is post-production. Technological mistakes that may have been made

in the previous stages are corrected in editing at this stage. Also, sound is added as well

as titles and credits. 26 To exhibit in theatres, prints are copied at this stage. In addition to

copies of final version of animated films, other information, such as script, lyrics of songs

in the films are delivered together.

26 Postproduction includes many tasks: sound effects and sound editing, color correction, retakes and recording sessions, title and credit approval, negative cutting, creating textless versions for foreign markets, quality control and video duplication or film processing (Ragust, 2004). 148

Source: adapted from Coe and Johns (2004), Winder and Dowlatabadi (2001)

Figure A.1. The generalized production process of the animation industry

149

Source: adapted from Jones and Oliff (2007) and Winder and Dowlatabadi (2001)

Figure A.2. The production process of 2D animation

150

Source: adapted from Anzovin, S. and Anzovin, R. (2005), Economist (2005), Weishar

(2002), and Winder and Dowlatabadi (2001)

Figure A.3. The production process of 3D animation

151

APPENDIX B

ANIMATION STUDIOS: COUNTRY, LOCATION AND TYPES OF BUSINESS

152 Cumulative Rank Country Number % % 1 United States 1211 28.7 28.7 2 India 449 10.6 39.3 3 United Kingdom 376 8.9 48.2 4 Canada 354 8.4 56.6 5 France 314 7.4 64.1 6 Germany 127 3.0 67.1 7 Israel 119 2.8 69.9 8 Spain 108 2.6 72.5 9 Australia 99 2.3 74.8 10 China 60 1.4 76.2 11 South Korea 54 1.3 77.5 12 Argentina, Mexico, Netherlands 46 3.3 80.8 15 Belgium, Philippines 41 2.0 82.7 17 Brazil 38 0.9 83.6 18 Ireland 34 0.8 84.4 19 South Africa 32 0.8 85.2 20 Sweden 30 0.7 85.9 21 Japan 29 0.7 86.6 22 Denmark 28 0.7 87.3 23 Pakistan 26 0.6 87.9 24 Taiwan 24 0.6 88.4 25 New Zealand, Singapore 22 1.0 89.5 27 Turkey 21 0.5 90.0 28 Malaysia, 20 1.0 90.9 30 Finland 19 0.5 91.4 31 Russia 18 0.4 91.8 32 Austria, 17 0.8 92.6 34 16 0.4 93.0 35 , 15 0.8 93.7 37 Hungary, Indonesia, Norway 14 0.9 94.7 40 Egypt, Rumania, Switzerland 13 0.9 95.6 43 12 0.3 95.9 44 Bangladesh 11 0.3 96.2 45 United Arab Emirates 10 0.2 96.4 46 Croatia, , Uruguay 9 0.6 97.0 continued Source: calculated from data in AIDB (2008a)

Table B.1. Number of animation studios by country

153 Table B.1 continued

49 Chile, 8 0.4 97.4 51 Lithuania, Macedonia 7 0.4 97.6 , Serbia and 53 Montenegro, Sri Lanka, 6 0.5 98.5 Ukraine, Vietnam Costa Rica, Ecuador, Lebanon, 58 4 0.4 98.8 Latvia, Nepal, Peru, Tunisia, 62 3 0.5 99.2 Armenia, Barbados, French 67 Polynesia, Guatemala, Kuwait, 2 0.0 99.6 Morocco, Panama, Syria Algeria, Belize, Bolivia, Bosnia and Herzegovina, Dominica, Ghana, Iceland, Jamaica, Kazakhstan, Maldives, 75 1 0.0 Mauritius, Moldova, 100.0 Mozambique, , Paraguay, Qatar, Saudi Arabia, Trinidad Tobago Total 92 countries 4242 100.0 100.0

154

% of Number of Business number of studios studios Advertising agencies 341 8.4 Business agencies 41 1.0 Business/Professional Talent agencies 26 0.6 Management PR agencies 25 0.6 Casting agencies 16 0.4 Legal/ accounting services 7 0.2 Schools/ Educational institutions 151 3.7 Contract labor/ Temp services 52 1.3 Careers Recruitment services 30 0.7 Job boards 16 0.4 Web entertainment portal 164 4.0 Film/ Trade commissions 59 1.5 Festivals/ Markets/ Trade Shows 57 1.4 Associations/ Societies 44 1.1 Community Museums/ Archives 25 0.6 Chats and forums 20 0.5 User groups/ Special interest Groups 10 0.2 Unions/ Guilds 5 0.1 Animation production 4242 100.0 Graphic design 867 21.4 Visual effects production 843 20.8 Web animation production 823 20.3 Post-production services 786 19.4 Multimedia/ Interactive development 776 19.1 Pre-production services 558 13.8 Production Web site development 459 11.3 Game development 384 9.5 Motion picture studio 238 5.9 Sound/Music production 196 4.8 Performance animation/ Motion capture 159 3.9 studios / Editorial 128 3.2 Continued

Source: compiled from AIDB (2008a)

Table B.2. Types of business

155 Table B.2 continued Production 110 2.7 Cable/Television networks 93 2.3 / Voice talent 87 2.1 Theme park/ Ride design 35 0.9 Animation products/ supplies 322 7.9 Educational products 190 4.7 Software vendors 134 3.3 Distribution/ Syndication 106 2.6 Art galleries 103 2.5 Licensing/ merchandising 101 2.5 Commerce Hardware vendors 47 1.2 Equipment rentals 33 0.8 Reseller/ VAR/ VAD 14 0.3 Auction houses 8 0.2 Video stores/ Resellers 6 0.1 Specialty stores/ Resellers 5 0.1 New media 378 9.3 Industry websites 149 3.7 Comic book publishers 88 2.2 Information/ Magazine/ Ezine publishers 57 1.4 Publishing Book publishers 55 1.4 Market research 48 1.2 Journal publishers 12 0.3 Others 165 4.1 Total Studios 4058 Source: compiled from AIDB (2008a)

Table B.2. Types of business

156

APPENDIX C

CITIES OF WORLD ANIMATION STUDIOS

157 Group Number (#s City of cities) Alpha 309 (1) Los Angeles-Long Beach-Riverside 220 (1) New York 199 (1) Paris 177 (1) London 121 (1) Toronto Beta 92 (1) San Jose-San Francisco-Oakland 70 (1) Chennai 69 (1) Mumbai 65 (1) Montreal 64 (1) Vancouver 57 (1) Bangalore 51 (2) Hyderabad, Seoul Gamma 47 (1) Delhi 40 (1) Boston 38 (2) Buenos Aires, Chicago 37 (2) Barcelona, Annecy 35 (2) Milan, Sydney 28 (2) Kolkata, Pune 27 (2) Berlin, Washington 26 (2) Mexico City, Rome 25 (1) Philadelphia 24 (2) Portland 22 (3) Dublin, Miami, Singapore 21 (6) Bristol, Cologne, Copenhagen, Madrid, Munich, Tokyo Regional 19 (2) Atlanta, Phoenix centers 18 (2) Minneapolis, Kuala Lumpur 17 (7) Ahmadabad, Austin-Round Rock, Brussels, Istanbul, Johannesburg, Orlando, Seattle 16 (5) Dallas, Helsinki, Hong Kong, Sofia, Stockholm 15 (4) Brisbane, Hamburg, Houston-Baytown-Huntsville, TX, Ottawa 14 (6) Auckland, Budapest, Halifax, Karachi, Manchester, Tehran 13 (4) Beijing, Detroit-Warren-Flint, MI, Rio de Janeiro, Shanghai 12 (7) Amsterdam, Bogota, Bucharest, Cairo, Guadalajara, Kochi, San Diego 11 (9) Calgary, Denver, Dhaka, Lyon, Prague, São Paulo, Taipei, Tampa, Vienna 10 (3) Bangkok, Cardiff, Stuttgart 9 (9) Belfast, Brighton, Cape Town, Dubai, Montevideo, Oslo, Valencia, Warsaw, Zagreb Continued Source: based on data in AIDB (2008a)

Table C.1. Cities of world animation production

158 Table C.1 continued Regional 8 (10) Angoulême, Bilbao, Coimbatore, Jakarta, Lisbon, Moscow, Saint Petersburg, Salt Lake City, Santiago, Torino centers 7 (7) Athens, Glasgow, Grenoble, Hanover, Lille, Luxembourg, Pittsburgh 6 (8) Edinburgh, Hartford-West Hartford-Willimantic, Lahore, Pittsfield, Rennes, Skopje 5 (18) Amman, Antwerp, Belgrade, Cincinnati-Middletown-Wilmington, Columbus-Marion-Chillicothe, Cordoba, Galway, Ho Chi Minh City, Indianapolis, Kiev, Nashville, Shenzhen, St.Louis, Tallinn, Tel-Aviv, Treviso, Trivandrum, Victoria, Vilnius, Wellington 4 (27) Bandung, Belfast, Bielsko-Biala, Birmingham, Bologna, Bratislava, Buffalo-Niagara-Cattaraugus, Charlotte, Christchurch, Derby, Edmonton, Frankfurt, Geneva, Granada, Hangzhou, Indore, Ipswich, Islamabad, Kilkenny, Leeds, London, Milwaukee-Racine-Waukesha, Oxford, Provo-Orem, Rotterdam, Santa Fe-Espanola, Sheffield, Wilmington, Gold Coast 3 (47) Adelaide, Albuquerque, Beirut, Belo Horizonte, Breda, Chandigarh, Colombo, Erfurt, Exeter, Faridabad, Genova, Greensboro-Winston- Salem-High Point, Greenville-Spartanburg-Anderson, , Hamilton, Honolulu, Kansas City-Overland Park-Kansas City, Katmandu, Le Bourget du Lac, Lima, Matane, Moncton, Montpellier, Napoli, Northampton, Palermo, Patna, Pisa, Pretoria, Quebec City, Rajkot, Raleigh-Durham-Cary, Richmond, Riga, San Jose, San Sebastian, Scranton-Wilkes-Barre, Sevilla, Springfield, St. Ismier, Tunis, Utrecht, Vadodara, Varese, Virginia Beach, Visakhapatnam, Winnipeg A Coruña, Aarhus, Albany-Schenectady-Amsterdam, Alkmaar, Ancona, Ankara, Arles, Aurangabad, Bakersfield, Bath, Bathinda, Beaumont-Port , Bhopal, Boise City-Nampa, Bridgetown, Cagliari, Cambridge, , Changzhou, Charlottetown, Chattanooga--Athens, Cleveland-Akron-Elyria, Coventry, Curitiba, Damascus, Den Haag (The Hague), Dundee, Düsseldorf, Fargo-Wahpeton, Gard, Geldrop-Mierlo, Gent, Giza, Green Bay, Grosseto, Halle (Saale), Harpenden, Hasselt, Hilo, Hilversum, Hobart, Huntsville-Decatur, Kranj, Kuwait City, Las Vegas-Paradise- 2 (105) Pahrump, Leicester, Liège , Ljubljana, Llanelli, Madison-Baraboo,

Málaga, Mangalore, Marseilles, Mauricie, Medellín, Milton Keynes, Monterrey, Mysore, New Orleans-Metairie-Bogalusa, Newport, Niagara Falls, Noosa, Norwich, Norwich-New London, CT, Nottingham, Oklahoma City-Shawnee, Olinda, Ottawa-Gatineau, Panama City, Papeete, Perth, Perugia, Poole, Portland-Lewiston- South Portland, Porto, Potsdam, Puebla, Quito, Rochester-Batavia- Seneca Falls, Salinas, Salzburg, San Antonio, San Juan (Puerto Rico), San Luis Obispo-Paso Robles, Santa Barbara-Santa Maria-Goleta, Santiago de Compostela, Sarasota-Bradenton-Punta Gorda, Continued

159 Table C.1 continued

Hertogenbosch, Slough, Soyaux, Steiermark, Strasbourg, Surat, Szczyrk, Thessaloniki, Thiruvananthapuram, Tucson, Tulsa- 2 (105) Bartlesville, Valence, Viborg, Vitoria-Gasteiz, Windsor (UK), Yeovil, Yerevan, Zaragoza Aachen, Aarschot, Abu Dhabi, Accra, Ajmer, Albert Lea, Albertville, Alessandria, Alicante, Allentown-Bethlehem-Easton, Almaty, Amersfoort, Amiens, Amravati, Ankeveen, Arnhem, Asansol, Asse, Asunción, Aubière, Auburn, Augusta-Richmond , Avanca, Aveiro, Bacolod, Baden Baden, Banbury, Bar Harbor, Bari, Basel, Beit Shemesh, Beit Shean, Belfast, Belleville, Bellingham, Belper, Bentong, Berango, Bergamo, Berkhamsted, Berlin, Bernburg, Bewdley, Billericay, Birmingham-Hoover-Cullman, Bitola, Blackpool, Blida, Blumenau, Bogor, Bordeaux, Borgomanero, Bournemouth, , Brasilia, Bremen, Bretagne, Bridgend, Bucheon, Bühlertal, Calicut, Camira Creek, Canberra, Cardif, Casablanca, Cedar Rapids, Cham, Charleston, Charlottesville, Chatham-Kent, Chisinau, City of Shoalhaven, Clermont Ferrand, College Station-Bryan, Colonia Del Valle, Colorado Springs, Como, Coos Bay, Cornwall, Costa de Caparica, Covilha, Crest, Cromarty, Cuenca, Cumberland, Dalton, Des Moines-Newton-Pella, Diego Martin, Doha, Doncols, Dordrecht, Dresden, Dülmen, Dumaguete City, Dunwich, East London, East Stroudsburg, Edwards, Eindhoven, 1 Emmaljunga, Empuriabrava, Eskişehir, eThekwini, Fanar, (408) Fayetteville-Springdale-Rogers, Flekkefjord, Floreal, FlorenceFort Collins-Loveland, Fort Wayne-Huntington- Fortaleza, Frameries, Friesland, Frome, Galle, Galway, Gdańsk, Gelnhausen, Gilford, Gingins, Gloucestershire, Godalming, Goes, Gothenburg, Grand Rapids- Muskegon-Holland, Grange Over Sands, Great Missenden, Groningen, Grouville, Guanajuato, Guatemala City, Guayaquil, Haapsalu, Haarlem, Hadera, Hägersten , , Hanoi, Harlingen, Harrisburg-Carlisle-Lebanon, Hartlepool, Heiligkreuzsteinach, Hertford, , Hitchin, Hollenstedt, Honiton, Hull, Hyderabad, Île-des-Chênes, Incheon, Inderøy, Inverness, Isle of Man, Ithaca- Cortland, Iver Heath, Jabbeke, Jacksonville, Jaffa, Jammu, Jamshedpur, Jeddah, , Jevington, Jönköping, Kalamazoo- Portage, Kaliningrad, , Kannur, Karlshamn, Karlsruhe, Karlstad, Kaufbeuren, Kaunas, Kecskemet, Khammam, Kharkov, Kiama, Kingston, Kitchener, Klagenfurt, Klaipėda, Kobe, Kodad, Kongsberg, Kotte, Kraków, Kramfors, Kunpo City, La Paz, Lahti, Lake City, Lakeland, Lancaster, , Langly, Langres, Las Rozas de Madrid, Lausanne, Laval, Leiden, Leipzig, Leschaux, Leuven, Limburg, Lindesberg, Linköping, Linthorpe, Logan, Loreto, Lucerne, Lynn,

Continued

160 Table C.1 continued

Macamic, Macerata, Magdeburg, Maharashtra, Maidenhead, Mainz, Malé, Malaga (Spain), Malmö, Mansfield-Bucyrus, Maputo, Middlesbrough, Mijdrecht, Miñano, Minya, Miramichi, Modena, Modesto, Moffat, Montgomery-Alexander City, Mooskrichen, Moreda, Moss Vale, Motzkin, Mugla, Muriae, Naga City, Nagpur, Nakornpathom, Nanaimo, Nancy, Nanjing, Nantes, Nelson, Neu 1 Isenburg, Neum, Newcastle upon Tyne, New Romney, Niagara on the (408) Lake, Nice, Nijmegen, Nonthaburi, Novara, Novi Sad, Nutley, Oberhaching, Ostrava, Ourense, Palm Bay-Melbourne-Titusville, Pamplona, Parma, Parramatta, Pembrokshire Crymych, Pendleton- Hermiston, Peshawar, Phagawara, Ponca City, Pontyclun, Port St. Lucie-Sebastian-Vero Beach, Portadown, Port Harcourt, Porto Alegre, Portsmouth, Poznan, Prato, Prescott, Pszczyna, Puerto Galera, Pwllheli, Ra'anana, Rabat, Raipur, Ratoath, Bluff, Redhill, Reggio Emilia, Regina, , Reno-Sparks-Fernley, Réunion, Reykjavik, Riazzino, Ribble Valley, Riverview, Rockford-Freeport- Rochelle, Rocky Mount, Roseau, Rosieres, Rouen, Rourkela, Rouyn- Noranda, Rovaniemi, Royston, Sabadell, Sacramento-Arden-Arcade- Yuba City, Saginaw-Bay City-Saginaw Township North, Sagunt, Saint Albans, Saint John, Saint Baldoph, Saint Augustin de Desmaures, Saints, Salem, Salina, Salt Spring Island, San Pedro, Santa Cruz, Santa Fe, Santiago de Cali, São Carlos, Sapporo, Saskatoon, Savannah-Hinesville-Fort Stewart, Schwerin, Sendai, Sevenoaks, Seville, Seynod, Shelburne, Shetland, Shiraz, Shoalhaven City, Sidney (Canada), Silver City, Sitges, Søborg, Söderhamn, Solihull, South Bend-Elkhart-Mishawaka, Southampton, Springfield,

St. George, UT, St. Lazare, St. Marys, Staplehurst, Stirling, Stockbridge, Stockton-on-Tees, Stourbridge, Straume, Surabaya, Suzhou, Swindon, Sydney, Nova Scotia, Syracuse-Auburn, Tain, Tainan, Tallahassee, Taunton, Terni, Terrassa, Test Valley, Themar, Thrissur, Tilburg, Timişoara, Tonekabon, Torrington, Toulouse, Townsville, Trento, Trichy, Tring, Trollhättan, Trondheim, Tucuman, Tupelo, Turku, Ujjain, Vannes, Vellinge, Venturina, Vernal, Vernon, Vicenza, Villeurbanne, Virum, Visby, Wagga Wagga, Warrington, Waterford, Waterloo-Cedar Falls, Westbourne, Westminster, Windsor (Canada), Wolverhampton, Woodbridge, Woodford, Wroclaw, Wuhan, Yekaterinburg, Youngstown-Warren-East Liverpool, Zaventem, Zürich, Zwickau Source: based on data in AIDB (2008a)

161

Group City (Number of studios per 1 million population) Alpha Annecy (74.0) Beta Bristol (38.2), Brighton (35.8), Halifax (35.0 ), Vancouver (29.3), Cardiff (28.7), Los Angeles (25.1), Toronto (22.8), Dublin (21.2), Cologne (21.0), (28)* London (20.8), Paris (20.3), Copenhagen (19.3), San Francisco (18.3), Montreal (17.9), Brussels (17.0), Munich (16.2), Austin (15.5), Helsinki (14.6), Sofia (14.6), Portland (13.3), Orlando (13.1), Auckland (12.7), Ottawa (12.5), New York (11.8), Milan (11.7), Zagreb (11.6), Valencia (11.3), Oslo (11.2 ) Gamma Amsterdam (10.9), Taipei (10.7), Calgary (10.4), Chennai (10.1), Stockholm (17)* (9.4), Prague (9.4), Boston (9.2), Bangalore (8.8), Hamburg (8.8), Salt Lake City (8.5), Bilbao (8.5), Hyderabad (8.3), Brisbane (8.3), Budapest (8.2), Kochi (8.2), Sydney (8.1), Berlin (8.0) Regional Lyon, Rome (7.8), Barcelona (7.7), Angoulême (7.3), Melbourne (7.2), Centers Montevideo (7.1), Minneapolis (6.9), Dubai (6.8), Washington DC, (61)* Manchester, Pune (6.4), Bucharest (6.2), Seattle (5.7), Atlanta (5.6), Warsaw (5.4), Seoul (5.3), Johannesburg (5.2), Singapore (5.1), Coimbatore, Denver, Tampa, Vienna (4.9), Torino (4.8), Philadelphia (4.6), Phoenix (4.4), Chicago (4.3), San Diego (4.2), Miami (4.1), Mumbai, Madrid (3.8), Stuttgart (3.7), Manila (3.6), Dallas (3.4), Detroit (3.3), Ahmadabad (3.2), Delhi (3.1), Buenos Aires, Guadalajara (3.0), Cape Town, Lisbon (2.9), Hong Kong (2.2), Kolkata (2.0), Tehran (1.9), Istanbul (1.7), Bogota (1.6), Bangkok, Saint Petersburg (1.5), Santiago (1.4), Mexico City (1.3), Beijing, Karachi (1.2), Kuala Lumpur (1.0) Rio de Janeiro, Cairo (1.1), Dhaka, Shanghai (0.9), Moscow (0.8), Jakarta, Nashville, São Paulo, Tokyo (0.6) NOTE:* ( ): Numbers of cities Source: calculated from data in AIDB (2008a)

Table C.2 Number of animation studios per 1 million population, for cities that have more than 8 total studios

162