A GLIMPSE ON PHILIPPINE INDUSTRY

Castañeda, Martin S14 Cordova, Allaine S14 [email protected] [email protected]

Medina, Marjorie S14 Suarez, Jed S14 [email protected] [email protected]

Tanlimco,Kerwin s14 [email protected]

College of Computer Studies Bachelor of Science in Information and Communications Technology Management

ABSRACT animation industry despite of its competitiveness The last years has been marked by development in ICT specifically in the field I. INTRODUCTION of computer animation. Alongside of this development is the rise of animation Animation deals with the rapid display of industry in the Philippines particularly begin sequence images to produce an illusion of one of the faster growing type of outsourced movement. Animation along with work. The Philippines has long been Information Technology has evolved engaging into this industry which can be through time from the traditional animation traced as early as the 1980‘s. Having that into 2D animation, 3D Computer Generated established reputation and with the presence Imagery (CGI), 3D CGI and 3D Motion of intrinsic creative pool of Filipino talents, Capture, and later into Virtual Reality. the Philippines are one of the stronger Asian These developments had led and contributed players in the global animation industry to the country‘s growth given the revenues which greatly contributes to the country‘s generated and increase in employment rate. economic growth. Despite of that fact, the Philippines still remains as a service Currently, the Philippines is now considered provider to other nations and has been as one of the top choice of Western longing for recognition due to lack of funds, countries to outsource their work with its opportunities and marginal technology cheaper labor and abundant creative talent. development as compared to Asian However, given the different forms of competitors. This paper also seeks to answer animation, Filipino animators are inclined in the problems which hinder the Philippines to 2D animation, a more economical and less be globally recognized and established in the intensive kind, rather than the more advanced forms. More so, some talented Filipino animators seek and find better Palabrica œ who is also the president of the opportunities to foreign organizations given Animation Council of the Philippines, local the limited opportunities locally. And the artists have the capability to do their own country is nearing to be left behind in terms original works but there is no one who can of the technological aspect as compared to provide them financially. This has been also other Asian competitors. The following one of the reasons why Filipino local artists sections discuss the different factors that resort to outsourcing their artistic works contribute to the current issues that local instead. He also said that these animated animators experience. films or series will have to have bigger investments and they are much expensive II. FUNDING than producing a full-length movie film. However, he noted that when right financer It has been one of the issues that the comes around, he is sure that the local artists Philippine Animation Industry is lacking are ready and worth the price funds to provide the local animators for them to produce their own original Filipino III. EXTERNAL OPPOTURNITIES storyboards. This has been evident when more and more countries have been There are many good animators in employing artists from Vietnam, India, and many countries but because of minimal China knowing that Philippines is also one compensation, lack of technology, proper the neighbor countries who has a great pool motivation, and financial difficulties of of diligent and creative animators. This has companies, these animators are attracted to happened because they offer cheaper go to other countries. Most of the animators outsourcing services and they are more of the Philippines are transferring to other technologically-advanced than Philippines country because of different reasons like the [1]. It has also been in the 1980s that when cost of production in the Philippines is low the computers emerged, it has already been compared to other countries. Because of impossible for the Filipino animators to that, animators of the Philippines are compete with other neighbor countries [3]. grabbing the chance to go outside the —2D animation in the Philippines even lost Philippines and work abroad because they its market to these computer imagery will get higher pay rather than stay and work technologies“ says Raul Boncan Jr., owner in the Philippines. of CSDA Graphics and Animation Inc., —According to Global Sky In the next which is the first animation studio setup in few years, the global game development Baguio City. He also added that there were industry is likewise seen to grow. The US 300 Filipino Animation veterans who game development market is projected to dropped out of the market when 3D became reach roughly US $ 15 billion in 2009 while the mainstream form of animation. Many Canada‘s market is seen to increase to US $ have turned to painting but many get back to 1.3 billion and Latin America, US $ 832 animation. Though this is a fact, according million in the same period. With this to TOEI Animation general manager Nestor expected growth, companies wanting to outsource their work offshore are seeing Philippines as a desirable location. With the country‘s lower cost development compared to that of North America and Europe, surely it is a better outsourcing spot. As said by the President of LadyLuck Digital, a local game development firm, Luis Mañalac, the cost of game development here in the Philippines is only one-eighth of that in the USA. Sadly, however, the company was compelled to shut down its Manila studio He mentioned that here in the due to financial difficulties. Philippines, a team of 10 people working full time for two years only costs US $ 262, As with most of the talented Filipino 000 as against to US $ 1.7 million in the animators, Fernan decided to seek his United States.“ fortunes in other countries. There were fewer opportunities for animators in the Along with many Filipinos who are working Philippines, he explained. While others abroad to earn money, there are also Filipino found employment in Australia, Fernan and animators who are leaving the country a few others tried their luck in the United because there are greater benefits abroad States. Fernan has so far been the most rather than working here in the country. fortunate Filipino animator. He found work Also because of the animation companies at Burbank Studios and was animator for the here in the countries that are closing because features of Turner Pictures and Warner of financial problems, Filipino animators are Brothers. Among his credits are the highly forced to find work abroad to find jobs and acclaimed Iron Giant (1999) and Stuart there are many opportunities abroad. Little 2 [8]. For Disney, Chicken Little was a major gamble that paid off. It was the first As stated by Dennis Ladaw of the CGI film, the studio produced on its own. Manila Times, There was this Filipino ( produced most of its CGI named Ralph Fernan who worked for productions.) The studio first adapted Disney‘s animation film, —Chicken Little“ Chicken Little for the screen in 1943 using which nearly grossed about $120 million traditional animation. Fernan resides with during its opening weekend. Fernan was his wife and son in Altadena, California. responsible for animating both the title While he‘s enjoying his work in Disney, he character and his father. Fernan was said he hopes the animation industry in the assistant editor of the Hanna-Barbera‘s Philippines would eventually get off the feature-length cartoon Once Upon A Forest ground. —Then perhaps the talent wouldn‘t [7], which featured the voice talents of have to migrate to other countries,“ he said. and Ben Vereen. [9] VI. ANIMATION AS AN Philippines. Philippines is one of the OUTSOURCED SERVICE stronger players among them knowing that it has been subcontracting with the Although Philippines could not produce so internationally recognized companies such much of their own original animated films in as Walt Disney, Warner Brothers, Hanna- the market, their talents are still a great Barbera, Marvel Comics, and Cartoon advantage to the foreign countries. Network .[6] According to Marlyn Montano, Philippines has been known for their great talents since Animation companies located in the 1980s which has provoked the international Philippines that include TOEI Animation, animation studios, Burbank and Hanna Roadrunner, and Toon City Animation Inc., Barbera, to set up their own affiliate studios have the 18% of 7,000 employees working in the country. She also said that, these for the animation sector. Employment in the offices have been providing the local artists Philippine Industry had grown to 34% from trainings in animation with the use of 2004-2007[6.] In terms of revenue technologies they have at that time. In 1986, generation, the industry generated up to TOEI appeared, a 100% Japanese owned US$97 million and US$105 million in 2006 company that produces majority of the and 2007 respectively as shown in the figure Anime series and has based their studio in below. the Philippines [1]. Because these studios have recognized the talent pool that the Philippines has, Filipino local artists were well-trained and paid off in dollars, which is the benefit that the Philippine Animation Industry gets in outsourcing their talents. BPO (Business Process Outsourcing) has helped to develop a profitable pool of independent Filipino contractors.

The setting up of a few large, high-profile companies in the Philippines eventually led to opportunities for the Philippine For many years, foreign animation Animation industry to be recognized companies were the ones that have been globally. The major recognizing the local artists giving them players in the region steady work. According to the Animation that are involved in Council of the Philippines, which is the global animation currently the biggest organization that market includes: represents animation firms in the country, China, India, PIXARS (Toy Story, Finding Nemo) and Singapore, South Dreamworks (Shrek, Madagascar) have two Korea, and (2) Filipino animators involved with them. There were even other two (2) that have ACPI president Grace Dimaranan, local done a significant work in mainstream animation industry has seen more activities Hollywood, according to Ricky Orellana, leading to the production of original content festival director of ANIMAHENASYON. [5]. Philippine Animation Industry has [2] If these Filipino animators have given finally produced their own original content, these foreign companies great contribution, Dayo produced by the Cutting Edge what more if they do it for their own Productions (Ball, 2008). The animated film country? Since, local artists have been is directed by Robert Quilao, which is about working for others, their works are not a boy named Bubuy who must rescue his evidently recognized. There is nothing to grandparents that were kidnapped. His quest doubt that Pinoy animators were the people will lead him to Elementalia, a strange land that created the cartoons produced by the where weird creatures live. This was not the foreign production houses. However, much first attempt to create a full-length animated of a concern, when will they be given the movie. In fact, according to Boncan, they spotlight they rightfully deserve? had contracts to produce sequences of a locally produced full-length feature called —TOEI has been encouraging their employed Diwa. Cutting Edge, which is a member of Filipino artists to develop their own unique the ACPI, said that like US, Europe, and characters and series than just being other Asian countries, there has also been contented supporting projects from other recognition in doing original works. parts of the world“, says Montano. As added by Palabrica, TOEI‘s Japanese principal was V. UPCOMMING CHALLENGES the one who encouraged them. In addition, after 20 years, starting to recognize the Though the Philippines has positioned itself talents of Filipino animators, many investors in the animation industry specifically as an came and began to build up animation outsourced business, the country is slowly schools for people who have the potential in losing its edge to be a competitive animation, for the purpose which Philippines destination given that near-by competitors could now compete from Hollywood and are constantly improving their services. The other American production outfits. following are some potential threats that the According to Boncan, they have written industry must address to keep the country in virtual motion capture and computer its current position. One of which is the lack puppetry to compete for major projects. of large animation companies capable of ACPI has also encouraged him to build up fulfilling the needs of international clients. schools for college graduates to help draw The industry is comprise and fragmented out new talents before venturing into studio into small and medium scale companies that work, he added. address individual work without thinking of the collective status of the industry. Second, Currently, there are 14 animation schools infrastructure investment and acquisition of operating in the country which are all new animation software and technology around Metro Manila. According to the must also be given priority as Asian competitors significantly develop in order to along with the industry and addressing attract local and foreign investors. The customer requirements to meet the current industry is also challenged to constantly global market demand. develop the pool local talents and ample training must be given in order for them to To be truly competitive on a global scale attain the most relevant and up-to-date and to attain an established animation animation skills. Lastly, the government industry, the Philippines must ensure that must support the industry by means of the technology infrastructure is constantly implementing policies like tax incentives, improved at the same pace unto how Intellectual Property regulation to sustain technology is developing, which obviously an environment that would probably gain requires funding. Also, the government must investment which will aid the country to ensure that animation schools should set achieve economic growth through animation education standards to prepare revenues.[6] students for the next generation animation. They should also train students using state- VI. CONCLUSION of-the-art animation software that is capable of handling and processing datas to meet Given the increasing demand in animation client‘s requirements and satisfaction. as an outsourced service, the Philippines share a great part in the current need of the market globally. Furthermore, having an established reputation for producing quality outputs and abundant creative Filipino talents, it is undeniably true that the Philippines is globally competitive particularly in giving animated outsourced work to foreign countries. However, if the Philippines‘ animation industry continuous to remain stagnant, its share in the global market might be captured by other near-by competitors as these regional countries constantly develop in a much greater rate than the Philippines and talented Filipino animators might rely on the opportunities offered by foreign nations. Filipino animators must also be given great opportunities for local animators will continue to seek higher paying jobs outside the country. More importantly, competitors are rapidly and constantly seek to improve their infrastructure, aligning technology

REFERENCES:

[1] A.R. Dela Cruz (2006). Animation [6] Tholons (2008). The Philippine Artists, the country‘s pool of creative Animation Industry Landscape. Retrieved workers feed the animation industry. from: www.tholons.com on March 11, 2009. Retrieved from: http://www.philippinebusiness.com.ph/archi [7] Bangstad,K (2006). Animation School ves/magazine/vol9-2002/9- Review. Retrieved from: http://www.animationschoolreview.com/sket 3/industry_p2.htm on March 11, 2009. ches/2006/03/philippines-working-to- [2] Animation Council of the Philippines maintain-lucrative-animation-industry.html (2009). ANIMATE THIS [8]http://animationcouncil.org/news.php?p=82 ANIMAHENSAYON 2007 highlights original Pinoy animation. Retrieved from: [8]http://www.yehey.com/lifestyle/Print.aspx?i= http://www.animationcouncil.org/news.php? 16300 p=82 on March 11, 2009. [9]http://www.philippinenews.com/article.php?i [3] V.Cabreza (2008). Animators form ”holy d=3112 alliance‘. Retrieved from: http://www.animationcouncil.org/news.php? p=106 on March 11, 2009.

[4] R. Ball (2008). Dayo Springs from Philippines. Retrieved from: http://www.animationcouncil.org/news.php? p=105 on March 11, 2009.

[5]E. Oliva (2008). RP Animators producing more original content. Retrieved from: http://www.animationcouncil.org/news.php? p=88 on March 11, 2009.