1. INTRODUCTION 1.1 PROJECT TOPIC Trends in animation industry. 1.2 SUBJECT MATTER Animation industry is only being surviving in India for a decade and a half it‟s only the passion that has lead this industry alive. The industry can only respect the creative people as per its requirements. The pipeline of this industry is the matching of the hardware and software with complementary skills. Right now India has an market of 2012 cr..and will grow to 4012 by 2012 for animation. “The industry requirement for animation is very different from that thought in animation institutes. The support from the industry and the government support is the only heal to it”, said by Mr. Chetan- Director, ANTS animation training school. What is animation? Animation is a type of optical illusion created by the consecutive display of images of static elements. In other words, it is the moving of diagrams or cartoons that are made up of a sequence of images displayed one after the other. The word 1 animation comes from the Latin word „Anima‟ which means soul. So put in simple terms, it is the job of an animator to give his character a soul. Often, animation is used for entertainment purposes. It is the persistence of vision is often projected as the reason the eyes can be fooled into seeing continuous movement that isn't really happening. Basically, the brain and the eyes cooperate, storing images for a mere fraction of a second. Minor jumps or blips are automatically smoothed out by the brain. Since animation frames are shot at very fast rates, most individuals see the movement without stoppages. 2D Cartoon animation is often considered to be animation in its classic form. The animated cartoon made its debut in the early part of the 20th century and calls for the use of 24 different drawings per second. In traditional animated cartoons, frames are hand drawn. Animation is both time-consuming and costly to produce. For this reason, most of the animation made for television and film is produced by professorial studios. However, there are also many independent studios. In fact, there are many resources, such as lower-cost animation programs and distribution networks, that make the work of the independent animator much easier than it was in the past. Usages of animation Animation has many practical applications which include: Gaming - Online interactive game, PC games, Mobile Games, XBOX, play station, Nintendo, stimulation games etc 2 Animation services for e-learning Graphics for CBT and WBT Animations of process, charts etc Simulations Interactive learning games CD-ROMs Animated videos, etc Animation services for websites Web site design and development Web banners and home pages Graphics / Images Logos for the website UI design, etc Animation services for organizations Animations of prototype equipment and machinery Corporate presentations Animated walkthroughs Animations of interiors Animations of fly-overs 3 Product demos Logo Designing Medical animation Animation for interior designs Animation services for the media 1. Animated movies 2. Animated programs for television 3. Animated advertisements Other animation services Flash gateways Shockwave games Screensavers Wallpapers 4 1.3 SIGNIFICANCE OF THE PROJECT India has a great potential for animation industry as we have great technology, great creative skills, huge working population. But still we lack somewhere and not able to stand out the international market. Some of the major issues that in dealt in India are: Home Institutes o Standardization o Accreditation Unorganized private sector. Bank Loan Unnoticed Rural sector Niche market for the product. Competition from other genre of movie Risk of huge investment Completion from other nations. Counsellor These factor plays a very important role in pulling back the Indian animation industry so these areas have been studied and considered in this project so that steps could be taken to eradicate this issue. 5 1.4 OBJECTIVES OF THE PROJECT To find why the animation industry is not that successful in India The rules, regulations, and other factors affecting the growth of the industry Necessary steps to be taken in developing the industry 6 1.5 LIMITATIONS OF THE STUDIES The limitation of the study depends on various factors like Age This study is conducted on the students who are of the age group of from 16 to 22 years, who are in the most important phase for deciding their future. The parents who are in the age group of 45- 55 years are taken for the survey. Geography The location for the study is limited at Bengaluru and Kerala, which gives good idea about the thinking of the students of the age group of 16th to 23rd, also the parents opinion can be understood here. The branded animation follows the same course structure and therefore by conducting survey in such institutes gives a fair idea about the course. The animation academy almost follows the same structure so studies form these institutes give a fair idea of the course structure. Time The project survey has been conducted within the time frame of 3 months. 7 2 REVIEW OF LITERATURE 2.1 INFORMATION PUBLISHED EARLIER Chart 2.1 Market size & growth of animation Drivers Increasing domestic demand for animation India emerging as animation outsourcing hub Increase in institutions providing animation education Increase in character licensing business Challenges High set up and production cost Manpower shortage Protection of Intellectual property 8 Future trends Increase in budgets and realizations for animation movies Use of animated content across sectors Indian animation movies are gaining international appeal specially the mythological characters Competition Majority of the revenues for animation companies in India are from outsourced projects. Indian animation companies are moving up the value chain by developing original content. India is the hub for outsourced animation production services as well as developing a robust domestic market. The sector is booming with overseas entertainment giants like Walt Disney, Imax and Sony outsourcing cartoon characters and special effects to India Future outlook for animation sector is bright as Indian mythological characters gain international appeal 9 Chart 2.2 Animation revenue split NASSCOM The latest report on Animation and Gaming industry in India by NASSCOM, 900- member industry body representative of India's information technology companies, reveals a huge growth potential in both the animation and gaming industry in India, with revenues expected to reach $1.25 billion for the year 2009. The report estimates the global market size (demand perspective) of industry will witness a cumulative annual growth rate (CAGR) of 8% and is expected to reach $75 billion for 2009. Based on this, the global animation market (from the developers‟ perspective) is expected to increase to $35 billion for 2009 from $25 billion in 2005. The Indian animation market (from the developers‟ perspective) was estimated at $285 million in 2005, according to the „NASSCOM Study on Animation and Gaming Industry in India‟. It is expected to witness a CAGR of 35% from 2005-2009 and increase to $950 million by 2009. According to the report, the market for gaming is expected to witness a CAGR of 78% and reach $300 million for 2009 from $30 million in 2005. 10 Overall market growth Developers market growth Market size for animation World $75 billion for 2009 $35 billion for 2009 India $950 million for 2009 Market size for gaming World $36 billion for 2009 $11 billion for 2009 India $300 million for 2009 2.1 Table for market growth by NASSCOM With international entertainment companies such as The Walt Disney Company, Imax Corporation, Warner Bros. Entertainment, Universal Studios, The Cartoon Network, Sony Pictures Imageworks Inc. and Sony Corporation signing contracts with Indian animation companies, local animation design studios are gradually establishing their credentials overseas and building skill sets. Companies such as Hyderabad-based DQ Entertainment have more than 700 animators making cartoons, television shows and full-length animated features for clients like NBC Universal, Walt Disney and Mattel, Inc. India now has more than 100 Indian animation companies and the list is growing. High labour costs in US and Europe have forced even the largest production houses to source their production work from Asian countries where jobs are accomplished at one-fourth the price. The NASSCOM report says that with the growing business in animation and gaming an emerging trend that can be seen in the market is a number of Indian companies adopting a co-production business model from an outsourcing model. India is expected to position itself as the top destination for animation work with its bank of design and animation talent. 11 Indian companies' must also cope with the shortage of talent in the short term. Many Indian animation companies are conducting special short-term courses for their employees with the help of foreign experts. The NASSCOM report highlights the fact that the growth of the mobile industry has led to a rise in demand for the gaming industry as well. Games developed in India have been successful internationally and therefore, are enhancing India‟s image as a country with the technical and infrastructure capabilities to provide gaming-related services that meet international standards. NASSCOM‟s President Kiran Karnik believes that India‟s IT expertise and creative skills, combined with the entrepreneurial drive of its companies, make it well positioned to tap the potential of this growing global industry. He says, "the rapid growth of mobile telephony, increase in personal computers and the greater use of animation content will fuel the growth of the domestic market too." 12 2.2 EARLIER FINDINGS How is Outsourcing in India developing in India? India is steadily growing as a major outsourcing hub. The Indian animation industry is seen to have the potential to touch revenues of over Rs12 billion from the current level to Rs 42 billion in 2009".