Revenue Generation From Motion Pictures

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1. Introduction

1.1 Project topic

Analysis of the revenue generation of the Indian animation industry in Motion Pictures.

1.2 Subject matter

The Indian animation sector is in a much diversified phase. While Tata‟s Visual computing labs,

Crest animation, Toonz animation etc.. are making animated content that is worldwide accepted

and appreciated, but we don‟t have any animated film in our own account that could generate

revenue to the extent that can overcome its production cost and make a profit that would make it

a blockbuster.

And the major factors that deal with this issue include, we don‟t have a mature market, lack of

funding facilities, not concentrating much on the pre-production stage, repeating the same

mythological characters and concept, target audience being restricted to children etc..

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India has got creative skill and technological skill which is required to make a good animated

content, but instead of making our own animated movie our majority of work involves

outsourcing which accounts about 70-80% of revenue generation in Indian animated sector.

And currently the creative skill in India is mainly used for the production and post production

stage which is more labor intensive. So there is a requirement for our talent to be focused more

on the IPR & content development and pre-production stage which forms the base of the

animated movies and it would add on the revenue generation of the Indian animation industry.

Hence this project is done to understand the various means of revenue generation in Indian

animation industry and the key factors that have to be considered for improving it.

1.3 Significance of the project

The Indian animation industry is forecast to grow at a CAGR of 20 percent to reach $253 million

by 2013 from the present size of $122 million, according to a latest study.

According to the study launched by the Assocham and Delloitte, TV will contribute 55 percent

of the overall animation entertainment followed by approximately 20% by movies and 25% by

direct to DVD. The industry shall also be shaped by domestic share of around 25 percent and 75

percent of outsourcing. (According to Indian Entertainment & Media outlook report 2010 and

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http://www.theoutsourceblog.com/2010/10/animation-industry-to-touch-253-million-by-2013/(

October 29, 2010))

Thus in animation industry only 5% is contributed by the Indian animated movie, and one of the

reason for such a small contribution by the Indian animated movie could be its production cost,

which be around 10crores for a typical animated movie (According to Indian Entertainment &

Media outlook report 2010)

On the other hand we have the potential to make movie like Alpha and Omega with Lionsgate

for Disney whose quality made it to get nominated in 83rd

Academy awards and there is no

Indian animated movie for such a credit.

Also, Big Animation‟s (Pune) Big Bee‟s Jr., a package of 39 animated rhymes was selected

amongst the Superpitch finalists of the 11th edition of Asia Television Forum (ATF) and it has

won it. Big Bee‟s Jr. targeted at pre-schoolers was released in India on Big Home Videos in

January 2010 and has so far received good response in India and has generated interest

internationally. The 3D animated rhymes fall unique because of its selection of target, their

perspective and imagination.

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Ashish Kulkarni adds, “From marketing and selling point of view in India, Big Bees„s Jr. has

done sales of 47,000 DVDs and VCDs uptill now in India and the product is available all across

the country.” (animationxpress.com, 23 November 2010)

According to Indian Entertainment & Media outlook report 2010,

0 20 40 60 80

2009

2010F

2011F

2012F

2013F

2014F

Animation, gaming & VFXwith a CAGR of 25.2%

The market size of animation industry,

2009 2014F CAGR

Rs 18.5 billion Rs 54 billion 23.9%

USD .38 billion USD 1.12 billion

This industry has a promising CAGR and there are various means where the revenue is generated

in this industry. The recent developments in this industry show that we have the ability to reach

and to be liked globally, thus there is a huge revenue generation possibility. So it‟s very

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important to analyze the major issues that deal with revenue generation of motion pictures in the

Indian animated industry, which currently is very low.

1.4 Objective:

To do the analysis of the revenue generation potential of Indian animation industry in motion

pictures.

1.5 Challenges (according to FICCI frames 2009)

“90 films were announced after success of Hanuman, probably not even 9 released on the big

screen. If we have survived this long without earning a single dollar, we are obviously

committed to this business and the commitment that its leaders have to this industry will make it

work!”

“I think we are all over the world. All the great content all over the world is produced in our

backyard. India has the money to spend 150 Million USD to invest to make a movie. But there is

no way to create the recovery model for recouping and that‟s where we all have to work and find

solutions”- Krayon Co Founder, the effervescent Nishith Takia [NASSCOM Animation and

gaming conclave 2010 – Hyderabad 12-13 nov 2010]

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According to the speakers at FICCI Media and Entertainment Business Conclave 2010,

Hyderabad, the challenges are :

Very low or negligible funds offered for co-production treaties.

-Lack of Subsidies or funds

-Absence of Local content reservation that has to be made mandatory.

-Imposition of service tax which has to be exempted.

Rajashekhar, Chief Operating Officer, Crest Animation says in NASSCOM Animation and

gaming conclave 2010 – Hyderabad 12-13 nov 2010.

- In the last 7-8 years Indian animation studio‟s have progressed from being just work for

hire studio‟s to co-producers and co-owners of IP‟s and not yet a single “ Indian character

brand” with a global appeal.

- The big word is “Indian animation” and the action is restricted to a few screens in couple

of metros while we know for a fact India lives in the rural areas.

- Parents are increasingly complaining about their children‟s addiction to “cartoons” yet

studios in India are wondering if there is a market?

- Our concept of brand seems to be limited to our association with a “Branded Hollywood

Major”

- We are so blinded by the visual illusion of Hollywood that we have apprehension‟s on

own vision.

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- Animation is not skill based- it is talent intensive & it‟s definitely not for anyone and

everyone who can pay.

- The wannabe artist, can pay and get a seat in the institution, however if the end product

lacks quality, a producer even if he pays cannot get the audience to be seated in the

auditorium.

- All available data establishes that CGI products are the most profitable genre of

entertainment product, yet availability of capital from financial institution is an uphill

task.

- Cost arbitrage – one constantly hears about Indian studios ability to leverage on the cost

arbitrage. A cursory glance through the available reports on the cost of production would

establish that the production cost across studios, has gone up substantially. Be it because

of the increasing cost of resources (human and technology included), the cost of

borrowing capital, lack of government subsidies, the fact is, if corrective measures are not

undertaken, very soon India would have to give up on beating the drums on its ability to

leverage on cost arbitrage.

According to FICCI frame report

- One of the major challenges of the Indian animation industry is the fragmentation of

animation companies spread across the value chain. Most of the small and medium Indian

animation companies are satisfied with outsourced services. Hence, the collective

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capacity of the Industry has been categorized as a service industry and not as a product

industry.

- Theatrical releases announced in 2008 entered their final stages of production or were

completed in 2009 thus leading to minimal workforce rationalization for leading

animation studio.

- In order to boost infrastructure development the Indian animation industry require

funding from institutional funding or bank, which doesn‟t happens as the projects stretch

for longer duration.

- The Indian animation industry saw announcements of several theatricals releases for the

year 2009. The multiplex strike resulted in oversupply of films awaiting release in the

second half of the year thus limiting the number of release window for animated films. (

FICCI frames 2010).

1.6 Growth Drivers

“With only 10 released IPs till date we have already managed to create a noise in both national

and international market. Imagine what we can do if we make 100 IP‟s in the coming years, we

can create a market so strong and self sustaining that the global eyeballs will be on us. The days

are not far when Indian animation styles will also make its mark in the global animation arena.

But to do that, we need not two but three legs for now to stand on a firm ground. The three

pivotal models on which our industry must balance its growth - Outsourcing, Co- Production

and IP Creation. And to give it a strong foundation we will also need a fourth leg of

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“Distribution” for our IP‟s in the global arena. Only then, the dream of a robust Indian

Animation Industry taking the world by storm will be fulfilled”- Ashish Kulkarni, Big

animation. [NASSCOM Animation and gaming conclave 2010 – Hyderabad 12-13 nov 2010]

Outsourcing advantage :

Due to the availability of low cost and availability of English speaking employees makes India

the favorite destination for outsourcing destination for global animation production houses.

Cost of producing a full length animated film in US is $ 100-125 million as compared to $25-30

million from outsourcing to India (FICCI frames 2009).

Established Indian animation industry

With over two decades for the growth in existence, local animators have acquired international

processes and systems, quality control methods and technological infrastructure to build

intellectual property comparable to international benchmarks.

Indian players have moved up the value chain by developing animation content end-to-end.

Moreover, the players are increasingly adopting the „Co-Production‟ model (Cost-Sharing). This

trend opens high revenue opportunities for the Indian players.

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Managing multiple stakeholders

Prithi Amarnath, producer, Technicolor India [NASSCOM Animation and gaming conclave

2010 – Hyderabad 12-13 nov 2010].

She said “managing multiple stakeholders is the key to successful execution in animation

business. The challenge increases when there are creators & producers from international world

interacting with and supervising the work at the studio and particularly when the original

development needs to be taken from a 2D/ traditional art form into the world of CG animation.

We have successfully built the bridge between those very paradigms. This is the key success

factor”.

1.7 Hypothesis

1 The market for Indian animated movies is limited.

2 The Indian animated industry has the potential for growing by joining hands with the

international studios.

3 Even with all the technology required for making animation content with international

standards our main stream of revenue generation is through outsourcing (i.e...more than

70%).

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1.8 Limitation of the study

1 My study is restricted to the revenue generation from Indian animated films and

outsourcing.

2 Since my project is based on the revenue generation of Indian animated movies I have

done my study on the recent years as the animation industry in India has done

commendable improvements in the recent years.

3 The qualitative research is restricted to the studio‟s of Mumbai and Pune.

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2. Review of Literature

The animation Industry of India

“This is an industry still in nascent stage but with huge potential with commitment will reap huge

benefits” – Seemha Ramanath, Managing Director, Crest animation studios ltd.

According to Indian Entertainment & Media outlook report 2010,

And according to FICCI Frames animation Industry comprises of

- Animation services

- Animation product creation

- VFX

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- Post –production

Indian animation industry had an estimated size of INR 17.4 billion in 2008, it is miniscule as

compared to the global animation industry with estimated revenue worth 23.3 billion by 2010

(animation express.com) and with an average CAGR of 20.1% in 2006-2008 it is estimated to

grow about 39 billion by 2013( KPMG estimates). [FICCI FRAMES 2009]

The animation services segment registered a growth rate of 15% in 2009 (KPMG analysis,

Industry interview-), but the animation industry was unable to achieve the expected growth rate

primarily due to a small 2% growth for the product creation segment.[ FICCI frame 2010]

The National Association of Software and Services Companies (NASSCOM) showed that the

Indian animation industry was set to grow from $354 million in 2006 to $869 million by 2010.

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SWOT

STRENGTH WEAKNESS

English speaking workforce

Leveraging rich heritage and culture to

develop original content.

Relatively affordable cost of production

compared to other outsourcing

countries.

Developing from service model to co-

production.

Lack of trained manpower.

High retraining cost.

Lack of government support to

encourage original content.

Lack of government intervention to

promote the industry.

Lack of focus of R&D

High remuneration vis-a-vis skills.

Joint venture between DQ

entertainment and Onyx films with a

share of 51:49. They have announced

the production of a full stereoscopic 3D

animated movie ie..The Prodigies,

which would be released in 2011.

Sanraa Media signed a MoU with US

based WSG films to form a joint

venture company. The joint venture

company may front end the Indian

studio in Hollywood and USA to work

on global co-productions deals for

animation and VFX.

Growing completion from China,

Philippines, South Korea etc.. in

service industry.

Government intervention in other

countries to promote the industry in

global front.

OPPURTUNITY THREAT

(According to Indian Entertainment & Media outlook report 2010 and FICCI frames 2010)

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Domestic releases

Out of the total movies released in India .5% of them are animated in nature.

The popular Indian animation TV series „Chhota Bheem„ (aired on POGO) made waves in

Indonesia. Produced by Hyderabad based Green Gold Animation, „Chhota Bheem„ is being

distributed by Spectrum Film in Indonesia. The series is being aired on AN TV since September

2010 and has received positive ratings and response. And after Indonesia, Bheem is set to charm

the viewers, in the Middle East, very soon.

Spectrum Film has also acquired the merchandising rights for the series in Indonesia and will

soon be rolling out the merchandise for the same in the Indonesian market. In India, Chhota

Bheem merchandise has already made its strong presence felt in the form of Apparel (T-shirts),

Comics (36 Titles) & Fun/ Activity Books, DVDs (20 titles), Stationary items (stickers, masks,

school labels, Tatoos), School bags, Gift Items (magnets, key chains, mugs , Caps etc), and is

being sold at leading stores like Reliance, Lifestyle, Big Bazaar, Globas, Music World, Odyssey,

Landmark etc. GreenGold has also recently tied up with Reliance Trends for its Apparel line. (

animationxpress, 16 November 2010)

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Some Indian animated films in released in domestic market are:

(According to www.boxofficeindia.com collection report)

Hanuman (2005) Rs. 5.69 crores

Dashavatar (2008) Rs. 1.93 crores

Ghatothkach (2008) Rs. 1.10 crores

Jumbo (2008) Rs. 2.61 crores

Bal Ganesh (2009) Rs. 22 lakhs

According to www.ibosnetwork.com the collection report

Roadside Romeo (2008) Rs. 8.34 crores & $40,000 (USA) & £70,500 (UK)

Animation in Live action means integrating real life characters with animated characters. One

of the eg for animation in live action picture is Taare Zameen Par.

(http://ezinearticles.com/?History-of-Animation-in-Live-Action&id=4455936), other‟s are

O‟faby (1993), February 14 ( 1995), Ta ra rum pum (2007) etc..

Eros International Media Ltd (Eros International) has announced the worldwide release of its live

action animation film Toonpur Ka Superrhero directed by ad filmmaker Kireet Khurana, on 24

December 2010. The movie will hit the screens across India and will be simultaneously released

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in US, UK, South Africa and other countries with Eros Distribution offices. Eros is currently

busy locking the number of screens for this Hindi release.(animationxpress.com [3rd

Dec, 2010])

Animated films in India

Animated movies - The full length animated movies either in 2D or 3D animation which include

Hanuman, Pandavas, Roadside Romeo, Lava Kuhsa, Ramayana – the epic etc

The commercial success of “Hanuman”, based on mythological content proved that there is a

market for locally generated animation content. Thus global players tapped Indian market either

independently or through co-production deals.

In 2008 film studios like Yashraj films, Percept Pictures Company and pure play animation

players like Crest, DQ entertainment and media conglomerates like Disney, MGM, Paramount

indicated their intent to exploit this market through locally produced content.

Eg Crest animation with Lionsgate produced Alpha and Omega with animation of international

standards.

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The following co-production deals have been announced in the recent past:

- Three-movie co-production deal between Crest Animation Production and Hollywood

film entertainment studio Lionsgate, of which the first animated movie Alpha and Omega

have been released worldwide with a gross collection of $24,452,397 (USA) [ imdb.com]

, and it has been nominated for the 83rd

Academy awards out of the fifteen animated films

(animationxpress.com)

- Toonz Animation and South American studio, Illusion Studios.

- Two-movie deal between DQ Entertainment and Paris based entertainment company

MoonScoop

Outsourcing animation

Out of the total revenue generation, outsourcing accounts to 70% of the total (KPMG estimates).

The major work of outsourced content includes the creation of animation and lip synchronization

which is labor intensive and less creative quality.

Thus most of the outsourcing work in India relates to the labour-intensive production and

postproduction activities. Production is the dominant activity. Content Development and

preproduction activities are nascent in India, both for the domestic and the outsourcing market.

However, these activities are seen to be emerging as Indian companies move up the value chain

(According to the NASSCOM Industry report 2009)

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Large animation players like Crest, Tata Elxsi that primarily relied on services operation are

graduating to co-production deals to reduce their dependence on servicing and create an IP

library (FICCI frame 2009)

Principal growth drivers of outsourcing of animation content are

- Inherent cost advantages.

- Maturity of international animation studios

- Emphasis on IP creation

- Attractive domestic opportunity

Post production of animated films

- The post production companies grew with a steady rate but witnessed a significant

completion from countries such as South Korea, Taiwan, Philippines and China. To

mitigate threats from other low cost countries and maintain international quality and

standards, leading Indian companies decided to acquire front end operation either through

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acquisition or strategic tie-ups. Eg Pixion acquired two London studios, Men-from-Mars

and Molinare for an undisclosed amount.

In comparison to other countries providing high quality animation services, India offers

significant cost arbitrage.

Estimated costs for 30

minute of animated content

India Korea,

Philippines

North America

2D Hand Drawn 45000-50000 60750-67500 1,80,000-2,00,000

3D 90,000 1,21,500 3,60,000

Backend production 2,00,000 2,70,000 8,00,000

Flash animation 20,000 27,000 80,000

Source: Adex lKPMG intervies- ficci frames 2010Figures in USD

Key drivers expected to influence the growth of Animation Industry in India for

outsourcing are:

- Increased Outsourcing by Overseas Players: The recent economic slowdown has forced

the organizations to increase focus on cost reduction leading to greater outsourcing to

Asian countries, and in India it‟s witnessing a growth of 20 % for Animation industry,

visual effects and games. The Indian animation industry is estimated to grow at a

compounded annual growth rate of 22 per cent to reach $1 billion by 2012. ( NASSCOM

report in Business Line, Saturday, Nov 13, 2010)

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- Greater outsourcing share for Indian players: Indian players currently command only

~8% of the outsourcing work. This is expected to increase, especially with increasing

recognition of the Indian players in terms of providing timely and quality work.

Comparison of animation industry with other media segment.

Media Segments

Segment 2008 ($ billion) 2013 ($ billion) Per cent CAGR

Television 4.81 9.45 14.5 %

Print 3.45 5.32 9%

Film 2.18 3.37 9.1%

Animation .35 .79 17.8%

OOH .32 .59 12.8%

Gaming .13 .55 33.3%

Internet .12 .43 27.9%

Radio .16 .33 14.2%

Music .14 .21 8%

Source: KPMG-FICCI Report

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Suggestion’s for Revenue generation.

"Honestly we have been threatening to become a Billion dollar industry for quite

some time now.. So what is stopping us? Achieving proficiency in hardware and

software and obtaining the requisite infrastructure and skill sets is only the primer or the base for

what could be a very pretty picture. For the real colours to emerge on the canvas of Indian

animation , we need to create value from creating Intellectual Property. The actual strength and

credibility will come from creating our own IP. So the real focus has to be on creation of IP. The

giants that have emerged on the global horizon have done so on the strength of IP and IP alone."-

Sumedha Saraogi, Sr VP DQ Entertainment, . [NASSCOM Aniamtion and gaming conclave

2010 – Hyderabad 12-13 nov 2010]

1 Labor- India has a good English speaking, creative and hard working labor talent.

2 Technology - India has technology to make animated content which can compete

with the international animated market. Eg Crest Communication with Visual

computing Labs of Tata Elxsi has made Alpha & Omega which had animated

content of international standards.

3 Co-production- India has the access to have co-production deals with the

International studio‟s majorly for funding purpose. Eg Walt Disney with Yash

Chopra.

4 Outsourcing – India has good English speaking workforce and the cost of

production is also cheaper compared to other nations which do the same.

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5 Multiple streams – The studio‟s which are involved in the production of the IP

and local content can make revenue through various channels like TV, DVD/

Home video, merchandising and audio rights. Eg Toonz animation (

thiruvananthapuram).

6 Comics – Motion Pixel Corporation (MPC) – an animated studio in America has

taken licenses to develop, produce and distribute a theatrical film release based on

popular Raj Comics property – „Nagaraj‟.

7 3D screens- The success of Avatar has paved the way for 3D cinema in India. 3D

presentations have accounted for 81 percent of Avatar‟s gross box office

collection. And with its release 3D screens in India have seen a rise, from mid

2009 to Dec 2009 the 3D screens has grown from 17 screens to over 50 screens

and is expected to reach 100 by the end of 2010. It includes cities like Mumbai,

Delhi, Pune, Bangalore, Chennai and Hyderabad as well as in smaller centres like

Coimbatore, Amritsar, Kerala, Jaipur and Ahmedabad. (Box office India, 2010).

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3. Explanation

3.1 Conceptual framework

Animation

It is the rapid display of a sequence of images of 2-D or 3-D artwork or model positions in order

to create an illusion of movement. The effect is an optical illusion of motion due to the

phenomenon of persistence of vision, and can be created and demonstrated in several ways. The

most common method of presenting animation is as a motion picture or video program, although

there are other methods.

My project is on the movies that are made in animation.

Mythological characters

The prominent personalities of ancient India that find mention in more than one source of

Sanskrit/Vedic literature like the two Hindu Ithihasas viz the Mahabharata and the Ramayana,

the Puranas and the Vedas with their supplement texts.

The mythological characters that has been used in Indian animated movies include Hanuman,

Krishna, Rama, Lava and Kusa, Chhota Bheem etc..

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Animation studio

It is a company producing animated media. The broadest such companies conceive of products to

produce, own the physical equipment for production, employ operators for that equipment, and

hold a major stake in the sales or rentals of the media produced.

The various animation studios involved in making animated movies in India include Crest

animation, DQ Entertainment, Sahara entertainment, Prana studios, Big animation, Eros etc..

2D Animation

Two-dimensional animation is created through a series of images quickly flashing through

several frames a minute. Each image is slightly altered in each frame, as desired, so that when

played in sequence, they result in seamless changes and gradual movements.

2D animation works on a two-dimensional platform, unlike 3D, which adds depth perception to

the work. (http://www.ehow.com/facts_6750035_2d-animation-definition.html)

The 2D animated films that are released in India includes Hanuman (2005), Lava and Kusa

(2010).

3D Animation

These animations are made using a variety of techniques such as modeling in clay and puppets.

3D animations can also be made using computer software to create three-dimensional characters

and scenery. (http://www.nfsa.gov.au/whats_on/elastic_reality/animation-terms.html)

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The 3D animated that are released in India include Roadside Romeo (2008) and Ramayana- the

epic (2010)

CGI

These are computer-generated images created using computer software, where motion capture

techniques were used to create realistic movement in the animated character.

(http://www.nfsa.gov.au/whats_on/elastic_reality/animation-terms.html)

An example would be Bal Ganesha which is a full length 3D Computer generated Imagery

animated feature film.

Outsourcing

It is the practice of hiring an external organization to perform some business functions in a

country other than the one where the products or services are actually developed or

manufactured. (Wikipedia)

Examples include Tinker Bell, Tron etc..these movies are done by Prana studios for Disney.

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Co- production

It is a production where two or more different production companies are working together. It can

happen between different companies in the same nation or also with other nation.

Examples include Alpha & Omega (between Crest animation and Lionsgate).

CAGR ( Compound Annual Growth Rate)

The year-over-year growth rate of an investment over a specified period of time. It is calculated

by taking the nth root of the total percentage growth rate, where n is the number of years in the

period being considered. (http://www.investopedia.com/terms/c/cagr.asp)

IP ( Intellectual Property)

The term Intellectual Property (IP) reflects the idea that its subject matter is the product of the

mind or the intellect. These could be in the form of Patents; Trademarks; Geographical

Indications; Industrial Designs; Layout-Designs (Topographies) of Integrated Circuits; Plant

Variety Protection and Copyright. (http://www.dipp.nic.in/ipr.htm)

It is a term referring to a number of distinct types of creations of the mind for which property

rights are recognized- and the corresponding fields of law, Under this law, owners are granted

certain exclusive rights to a variety of intangible assets such as musical, literary , artistic works,

discoveries and inventions, words, phrases, symbols and designs.

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FICCI

The Federation of Indian Chambers of Commerce and Industry (FICCI) is an association of

business organizations in India, headquartered in the national capital New Delhi. FICCI is one of

the main organizations to fund and support many governmental and non-governmental

educational institutes. It was founded by GD Birla and Purushottam Takkur in 1927, on the

advice of Mahatma Gandhi.

The Federation of Indian Chambers of Commerce and Industry (FICCI) is the largest and the

oldest apex organization of Indian business. FICCI is the leader in policy thinking and change

and is in the vanguard of nation building. Established in 1927 and with a nationwide membership

of over 1500 corporates and over 500 chambers of commerce and business associations, FICCI

espouses the shared vision of Indian businesses. It has an expanding direct membership of

enterprises drawn from large, medium, small and tiny segments of manufacturing, distributive

trade and services. FICCI maintains the lead as the proactive business solution provider through

research, interactions at the highest political level and global networking. It is constantly

involved in bringing about integration of the Indian economy with the global mainstream. FICCI

set up the Socio Economic Development Foundation (SEDF) in 1995 to promote the spirit of

enterprise that will make India a globally competitive and socially responsible economy. FICCI

stands for quality, competitiveness, transparency, accountability and business-government-civil

society partnerships to spread ethics–based business practices and to enhance the quality of life

for common people (http://www.linkedin.com/companies/ficci)

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NASSCOM

The National Association of Software and Services Companies (NASSCOM), the Indian

chamber of commerce is a consortium that serves as an interface to the Indian software industry

and Indian BPO maintaining a state of the art information database of IT software and services

related activities for use of both the software developers as well as interested companies

overseas.

NASSCOM is the global trade body with over 1200 members, of which over 250 are global

companies from the US, UK, EU, Japan and China. NASSCOM's member companies are in the

business of software development, software services, software products, IT-enabled/BPO

services and e-commerce. NASSCOM has been the strongest proponent of global free trade in

India.

NASSCOM was set up in 1988 to facilitate business and trade in software and services and to

encourage advancement of research in software technology. It is a not-for-profit organization,

registered under the Indian Societies Act, 1860.

Currently, NASSCOM is headquartered in New Delhi, India with regional offices in the cities of

Mumbai, Chennai, Hyderabad, Bangalore, Pune and Kolkata.

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NASSCOM has been the strongest proponent of global free trade, and is committed to work

proactively to encourage its members to adopt world class management practices, build and

uphold highest standards in quality, security and innovation and remain competitive in today‟s

rapidly changing technology landscape.

NASSCOM's Vision is to maintain India leadership position in the global offshore IT-BPO

industry, to grow the market by enabling industry to tap into emerging opportunity areas and to

strengthen the domestic market in India (Wikipedia)

KPMG

KPMG in India provides tax and advisory services and industry insights to help organizations

negotiate risks and perform in the dynamic and challenging environments in which they do

business.

Tax

Tax addresses the needs and objectives of each client, enabling them to balance compliance and

value creation.

Advisory

Advisory assists companies and public sector bodies to mitigate risk, improve performance and

create value.

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KPMG can provide an informed perspective on issues faced by the global business community.

The industry areas featured on this website showcase some of this sector knowledge.

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4. Research methodology

4.1 General view

Definition

Research can be defined as the search for knowledge or as any systematic investigation to

establish facts. The primary purpose for applied research (as opposed to basic research) is

discovering, interpreting, and the development of methods and systems for the advancement of

human knowledge on a wide variety of scientific matters of our world and the universe. Research

can use the scientific method, but need not do so.

The steps that include in the research methodology includes

Formation of the topic

Hypothesis

Conceptual definitions

Operational definition

Gathering of data

Analysis of data

Test, revising of hypothesis

Conclusion, iteration if necessary

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Types of Research methodology:

Applied research : Investigation of the findings of 'pure' or basic research, to determine if they

could be used to develop new products or technologies. Also, the research conducted to solve

specific problems or to answer specific questions.

Exploratory research is a type of research conducted for a problem that has not been clearly

defined. Exploratory research helps determine the best research design, data collection method

and selection of subjects. It should draw definitive conclusions only with extreme caution. Given

its fundamental nature, exploratory research often concludes that a perceived problem does not

actually exist.

Exploratory research often relies on secondary research.

Constructive research is perhaps the most common computer science research method. This

type of approach demands a form of validation that doesn‟t need to be quite as empir ically based

as in other types of research like exploratory research.

Empirical research is research that derives its data by means of direct observation or

experiment, such research is used to answer a question or test a hypothesis.

Primary research Experiments, investigations, or tests carried out to acquire primary data.

There are basic approaches to data collections using primary methods:

Qualitative researchers aim to gather an in-depth understanding of human behaviour and the

reasons that govern such behavior. The qualitative method investigates the why and how of

34

decision making, not just what, where, when. Hence, smaller but focused samples are more often

needed, rather than large samples.

Quantitative researches :Use of sampling techniques (such as consumer surveys) whose

findings may be expressed numerically, and are amenable to mathematical (statistical)

manipulation enabling the researcher to estimate (forecast) future events or quantities.

Secondary research It is the research based on secondary data ie.. Existing primary data that

was collected by someone else or for a purpose other than the current one.

Data : they are the facts, figures, enumerations and other materials, past and present, serving as

the basis for testing hypothesis.

1- Secondary data includes meta analysis, historical method, content analysis, informetrics,

use studies.

2- Primary data includes resords & relics, observation, experimentation, simulation, ask

people orally, ask people in writing, panel study, sociometry, case study – interview,

depth interview schedule, mail survey, questionnaire, mechanical devices.

Secondary data can be used

- As supplementary data

- For reference purpose.

- For comparisons ( benchmarks)

35

Advantage

- Quick

- Cheap

- Wide coverage ( space & time)

- Broad database leading to generalisations

- Cross check primary data.

Disadvantage

- Up – to – datedness

- Accuracy

- Availability & accessibility

36

4.2 Methods of Data Collections done in project

It includes qualitative and quantitative.

Qualitative research will be done on Indian animation industry people that include personal

interviews & telephonic conversation as the situation will demand.

The questionnaire and the interviews will be about the market of the animation industry in

motion pictures, outsourcing, and the different streams of the revenue generation.

The industry people will include people from animation studios and institutes.

The questionnaire prepared and will be open & close ended.

Since there is bulk of information available about the market, revenue generation, challenges and

opportunities of animation industry in India, and these expert‟s information are best to rely on.

Quantitative research

Secondary data collection : the studies that have been already done on this will be taken.

It includes:

Indian Entertainment & Media outlook report 2010

37

FICCI frames report

NASSCOM REPORT

Press reports.

These case studies will help in acquiring the knowledge of their market positioning, the

challenges and opportunities which will support my project.

4.3 Description of Data collection tools

Qualitative research

Top industry people will be requested to fill the questionnaire either through e-mail, telephonic

interview or direct interview.

The industry people include:

Mr. Madhavan – Crest animation

Nadish Bhatia – Marketing Manager.

Ranjit Singh – TASI

Paresh Parekh –Creative director, Frameboxx animation / VFX, Mumbai

Also, the faculty from various animation teaching institutes will be considered, they include:

Anjali Frank Agarwal – faculty Film producing, Whistling woods international.

38

Varun Thottathil - Professor ( animation) - Whistling woods international.

Rafi Tsm– Senior Post Production Professor – Big animation.

Thus the information given by them will be taken and then analysis will be done on that, out of

which conclusions can be drawn.

Quantitative research

It includes secondary data ie..

Indian Entertainment & Media outlook report 2010,

FICCI Frame report of both 2009 and 2010.

NASSCOM

- NASSCOM Aniamtion and gaming conclave 2010 – Hyderabad 12-13 nov 2010

- www.nasscom.in

Press reports in

- DNA

- Animationxpress.com

- Economics times

39

5. Data analysis

Interview analysis

1) The most promising mix revenue generation of Indian animated movies in terms of

various rights, mentioned in %.

Mr AK Madhavan said that for theatrical, its 95% in India and 5% in rest of Asia and for other

rights like home video, satellite, music and merchandising he also told that we don‟t have a

market globally.

Nadish Bhatia said that “Satellite rights make the highest revenue when considering animation

industry as a whole. He also mentioned that merchandising has great opportunity”.

Rafi Tsm suggested that in India there is revenue generation potential for Indian animated

movies in all rights like theatrical, satellite, merchandising, music and home video. And for rest

of Asia, Europe & America there is revenue generation potential through satellite for Indian

animated movies.

Varun Thottathil suggested that for India a good share of revenue generation comes from

theatrical and there is good opportunity in satellite and merchandising also and very less for

home video and music. For rest of Asia the major share of revenue generation is from theatrical

and there is good opportunity in satellite and home video also and very less for music and

merchandising. And for Europe & America the majority share of revenue generation is from

satellite and then theatrical and very less for home video, music and merchandising.

40

2) Key factors that would augment the revenue generation for India & how much the

factors mentioned would under count.

Factors

a) Concept

b) Story

IP

c) New IP originating from India

d) Existing Indian IP repackaged/ remade/

reformatted

e) Distribution strategy

f) Marketing

AK Madhavan said that the key factor for revenue generation is Story. He added that the Indian

IP repackaged/ remade/ reformatted has no global market. He also added “marketing and

distribution strategy will do well if we have good IP; we are not matured globally. Also it

accounts the no. of screens; we need both of these for the proper execution of the movie, and it‟s

actually a combination of both”.

On asking that Little Krishna has done well in satellite ie..its been established well, so if there is

a possibility that it would do good business in both regional and multiplex audience, he replied “I

don‟t believe that it would work”.

Nadish Bhatia said that it‟s the story, IP and Marketing are the key factors for the revenue

generation. He added that for an IP the requirement was to establish it as a brand which has to be

sustained specially in daily life as the major consumer are children. He added that the concept

too had some role in revenue generation but Distribution strategy has no role.

41

Rafi Tsm suggested that except point d all are important.

Paresh Parekh suggested that all the points are important, but added that there must be more

emphasis on the making of the story & screenplay with which the Indian audience can relate,

also we must not copy the thoughts & performance of Hollywood but should create the original

Indian story telling format.

Varun Thottathil suggested that all factors ie…Concept, story, distribution and marketing have a

major role in revenue generation but he has no faith in our Indian IP.

Anjali Frank Agarwal suggested that all factors ie…Concept, story, distribution and marketing

has a major role in revenue generation but she has some faith in our Indian IP.

She added that “time slots for animated movies in cinema hall should be more prime”.

3) The average number of screens available for an Indian animated movie.

AK Madhavan said “ there is no thumb rule, there is no limit for good number of screens. For

some movies it ranges to 50. Some movies are released with 300-400 prints. It all depends on the

movie. Alpha and Omega was released in US in 2625 theatres. In India an approximate no.

would be 200-300”.

Paresh Parekh suggested that the no. of screens available is very less, the most important part is

to establish the character. He added that digital prints could be a good option as it saves on the

print cost.

42

Varun Thottathil suggested that it should be around 300 prints as he estimated that there are

about 175 A class and 125 B class theatres.

4) Is for revenue generation for Indian animated movies confined to multiplexes or do

we have a regional market also?

AK Madhavan said, “It is also much depended. It is believed that if only mythological content

then it has market all over. If we have original IP then we can do well”. He added that story,

production & budget are the other factors that decide on the market. International animated

movies have both regional and multiplex audience but not in India”

Nadish Bhatia said that it‟s confined to multiplexes itself and for regional market he commented

that “the market is nil and the reason is ticket pricing. Demand is there in television, as it comes

for free but once it comes to pay money for the ticket they prefer a live action movie compared

to the animated movie, for home video hanuman was the most watched, also Jumbo”.

Rafi Tsm, Varun Thottathil & Anjali Frank Agarwal suggested that it‟s confined to multiplexes.

43

5) The key factors that would be considered for the distribution of an Indian animated

movie.

AK Madhavan said “There is no logic for the key factor; one can play with the sentiments of

mythological characters. There is no strategy. Also the collection report of previous Indian or

international movies in India are not good. For distribution only print and advertising will work.

Test marketing has to be done for distribution then only the money spent can be more effective”.

Paresh Parekh & Rafi Tsm suggested that understanding the TG, collection report of previous

animated films, understanding the market and the genre like children, adult and superhero &

Paresh Parekh added that the release time period ie..festival, vacation etc..would be the key

factors.

Varun Thottathil suggested that we need proper story, concept and very good and strong IP and

an excellent animation studio.

Anjali Frank Agarwal suggested that there should be an understanding of the target group and

understanding the market.

6) The minimum budget for an Indian animated movie which will be able to produce a

quality movie that can give a table-profit.

AK Madhavan, said “5 crores. The money spent should be only in story which is the key factor

for the success, not animation or anything else. Also if the budget is high the retrieving the

money will be difficult”.

44

Nadish Bhatia said “ Only content is important, have to do justice to the character. It‟s true that

due to the lack of funding Indian animation has to compromise with the quality so to do justice

the funding must be done according to the character”.

Ranjit Singh said that he did not believe in budget as it is the content and the story that matters

and it has to be justified.

Paresh Parekh suggested 5 crores and added that it depends on the script.

Rafi Tsm said “Calculative Charted accountants can‟t make films in India. It is very much like

the horse race still. Atleast in my perception. But that doesn‟t mean calculations are not

necessary. This is a different calculation about understanding the field and its requirement.

Atleast 10 Crores we need. But the concept quality is very important than the technical quality”.

Varun Thottathil suggested “200 crores”, as he believed that there should be focus on the quality.

Anjali Frank Agarwal suggested that for making a quality movie the minimum budget would be

15-18 crores. While for making profit the budget should be less than 8-10 crores.

7) The revenue generation by Indian animated movies is adequate per rupee spent

when compared to the rest of the world.

AK Madhavan said “No. It is the genre of the movie which it is dependent on”.

Paresh Parekh, Varun Thottathil, Anjali Frank Agarwal also suggested no.

Rafi Tsm said yes.

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8) How far can co-production help Indian animation Industry in motion pictures?

a) Reduce risk

b) Increasing profit , if

a. International studios : better reach overseas

b. Indian : division of work.

AK Madhavan, said “It‟s both the factor, co-production helps to know about the art, art division,

story, design of character, design of background, knowledge about voice, casting etc. It‟s a great

means for learning which has to be constant process and it will take about 10-20 years”.

Ranjit Singh, said “ depends on what kind of deal has happened, there should be revenue sharing,

and it should be the strength to the table, also it adds on the satellite, merchandising advantage

but the primary requirement is that it helps in spreading out of the finance and reduces risk”.

Paresh Parekh, suggested a) and b) b.Varun Thottathil suggested a)

Rafi Tsm suggested b) a.

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9) Top ten countries for theatrical & satellite distribution.

According to AK Madhavan

Theatrical

1 US

2 UK

3 France

4 Australia

5 Germany

6 Russia

7 Spain

8 Italy

He concluded that “For theatrical US, Europe and Australia are the major market and for satellite

its almost the same”.

Nadish Bhatia said “for mythological character the primary audience would be the Indian people

spread across the globe ie.. US, UK and Australia, if it‟s not mythological then it would go

around the world”.

Paresh Parekh suggested that the focus must be more on Asian countries as their consumption

trends is very familiar to us.

47

Rafi Tsm, gave the details on the consumption level of the people globally,

Theatrical – (2003-04 Revenue) Satellite – Time spent in TV

(hours per person per week)

1 India – 2860 million ticket revenue 1 UK – 28 hours

2 US – 1421 million ticket revenue 2 US – 28 hours

3 Indonesia – 190 million ticket revenue 3 Italy – 27 hours

4 France – 155 million ticket revenue 4 Ireland – 23 hours

5 Germany –149 million ticket revenue 5 France – 23 hours

6 Japan – 145 million ticket revenue 6 Germany – 23 hours

7 UK – 139 million ticket revenue 7 Australia – 22 hours

8 Spain – 131 million ticket revenue 8 Denmark – 20 hours

9 Mexico – 120 million ticket revenue 9 Netherlands – 20 hours

10 Canada – 113 million ticket revenue 10 Belgium – 19 hours

10) At present what % of the Indian Animation Industry’s revenue are contributed by

outsourced work ( not including co-production)? What according to you should be

the ideal % of the industry that is contributed by the business of outsourcing?

AK Madhavan said “Significant percentage, ie more than 80%. There is no ideal %, whatever

comes is good”.

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Ranjit Singh said that there is a great demand for outsourcing. But there is no future for the IPR /

content development

Varun Thottathil suggested 80%

Paresh Parekh and Anjali Frank Agarwal suggested 90%

Rafi Tsm suggested 60% .

11) The major hurdles that limit the audience for Indian animated movie.

a. Limitation of strong IP.

b. Emotional connect.

c. Perception that Indian animated movies have only children as audience.

d. Repetition of the same mythological concept.

AK Madhavan said all the mentioned factors are important also he added “animation is a

different business, its growing and has huge potential. But the market is not mature at this time”.

Varun Thottathil suggested point d.

Rafi Tsm suggested a, b and d and he added that “Not understanding the fact that Indians are not

accepting a cartoon type hero right now. Live action mixed with 3D animation like Harry Potter

series or Lord of the Rings series will help. Ramayana & Mahabharatha won‟t work hereafter

since they are known plots. But stories like “The Immortals of the Meluha will work since it has

a mix of the original epic theme and wonderful imagination in its storyline”.

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Paresh Parekh suggested all points are important he added “ quality of performance ie.. acting is

totally neglected in storytelling. Indian animated movies are becoming more informative but not

entertaining”.

Anjali Frank Agarwal suggested a, b and d. She added that parents believed that cartoons should

be free.

Questions for Nadish Bhatia.

12) The key factors that would be considered for the budget of marketing of an Indian

animated movie.

a. Budget of the film.

b. Understanding of target group

c. Collection report of previous animated films.

d. Understanding the market.

He said “all the factors mentioned play a vital role. Character is the most important factor, first

we have to establish the character. While releasing the 1st part of the movie a lot of effort has to

be given for the marketing but once it gets established the 2nd

part of the movie can be easily

delivered to the audience and the revenue generation possibilities will also increase with it.,

There is a need to build the character. The movie Jumbo had Akshay kumar‟s voice which the

children didn‟t like they would have preferred to see him live”.

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13) Which marketing technique would be the best to attract the Indian audience for

Indian animated movies?

a. Having a series in Television, creating a fan following and then making a movie

using the IP.

b. Trailers in television

c. Ads in Radio, print, ooh

d. Merchandising before the release of the film.

e. Collaborating with restaurants like Mc Donald‟s, KFC‟s, Subway etc

f. Collaborating with gaming arcades at various malls.

g. Events

h. Ground activation at malls.

He said “ the most imp point is the likability of the character, all above mentioned is imp,

sometimes all are required or even one of it would do, depends on the character, and have to

think about the out of box marketing techniques”.

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6. Research findings and Conclusion

6.1 Key Findings

After interviewing the industry people, the following key findings can be given:

Rights

The maximum amount of revenue generation for Indian animated movies in India is from

theatrical rights. For rest of the Asia and Europe & America it‟s both theatrical and satellite.

Currently there no opportunity for other rights like music, home video etc..for Indian animated

films globally.

But if the animation industry is considered as a whole then it‟s the satellite rights that is currently

doing well in terms of revenue generation. And also there is a great opportunity for the

merchandising market for which Chhota Bheem could be the best example.

Key factors for revenue generation

The most important factor for an animated movie is story.

The other important factors include marketing, distribution, content and a strong IP which has to

be established as a brand.

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The number of screens available for execution is also an important factor and the time slots that

are required for maximum revenue generation should be prime time.

Screens

The no. of screens depends on the animated movie. For making profit the minimum no. of

screens should be around 200-300 screens.

Market

Currently it is confined to multiplexes.

The factors that limit the audience in regional market could the unwillingness to pay for an

animated movie where they get it for free in television.

Budget

It should be around 5-15 crores as the main factor for the success for an animated movie is story

and concept and it is advisable to maintain this budget or else retrieval will become very

difficult.

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Profit generation

Currently it‟s not happening in India.

Co- production

It would be great source of learning process from experts as India is very new in this industry

when compared to nations like US. Also it reduces risk.

Outsourcing

More than 80% of revenue generation in Indian animated industry is through it.

Hurdles that limit the audience

Factors include limitation of strong IP, no mature market, emotional connect, limited audience

ie.. children and repetition of the same mythological characters.

Budget for marketing

It depends on various factors like budget of the film, understanding target audience, collection of

previous similar movies etc..For releasing the 1st part a lot of effort has to be done, but the 2

nd

part of the same movie can be done easily as it is already established.

54

Marketing techniques

The factors include having a series in Television, creating a fan following and then making a

movie using the IP, Trailers in television, Ads in Radio, print, ooh, Merchandising before the

release of the film, Collaborating with restaurants like Mc Donald‟s, KFC‟s, Subway etc,

Collaborating with gaming arcades at various malls, Events ,Ground activation at malls etc..

All the factors are important but depends on the character.

6.2 Conclusion

1) Currently there is no mature market for Indian animated movies and thus the revenue

generation of it in the Indian animation industry is only about 5%.

2) Currently there is no market for Indian animated movies in the regional sector.

3) Currently the target audience is restricted to the children for Indian animated movies.

4) Indian animated movies are revolving around the same mythological characters.

5) Currently the main source for revenue generation for Indian animated movie is through

outsourcing.

6) We are developing market for our animated content globally and our work is getting

appreciated from the global leaders like Academy awards and ATF.

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6.3 Recommendations

The following recommendations can be made:

1) For maximising the revenue generation for Indian animated movie all the rights like

satellite, music, home video and merchandising rights for own IP etc..has to be

considered which is currently restricted theatrical rights.

2) Good research and development should be implied on the development of the story as it

is the key factor for the success of an animated movie.

3) Cost arbitrage that is to cut down on unnecessary cost and to minimise the budget. The

budget should be restricted to 5-15 crores so that the possibility of retrieval becomes

easy.

4) For making our self mature in the making of the animated movie co-production could be

a very good means as there is an opportunity for resources sharing & best practice

sharing.

5) Market development assistance should be provided. The techniques adopted and budget

for marketing should be planned according to the character of the animated movie.

6) Before the release of the Indian animated movie it is essential that the characters in it is

branded and established which can be done innovative marketing techniques.

7) Emphasis must be given for the IPR & content development and pre-production stages

for outsourcing rather than restricting our self to labour intensive stages like production

and post-production, thus increasing our revenue generation potential.

8) There is a huge opportunity for the Indian animation studios by forming joint ventures

with International studios.

56

9) Govt support is required for the development of Indian animated industry.

10) Everyone working in the pipeline of Animation from the pre-production to the distributor

needs to know how the system works.

11) Need to appeal to national market first and then international market follows.

57

7. Bibliography

FICCI Frames 2009, 2010

Indian Entertainment & Media outlook report 2010

NASSCOM Industry report 2009

Animation and Gaming industry in India Market Research 2010

Websites

www.nasscom.in

http://www.theoutsourceblog.com/2010/10/animation-industry-to-touch-253-million-by-2013/(

October 29, 2010)

http://www.ehow.com/facts_6750035_2d-animation-definition.html

http://www.nfsa.gov.au/whats_on/elastic_reality/animation-terms.html

http://www.investopedia.com/terms/c/cagr.asp

http://www.dipp.nic.in/ipr.htm

http://www.linkedin.com/companies/ficci

www.kpmg.com/in

Wikipedia

www.boxofficeindia.com

58

www.ibosnetwork.com

imdb.com

http://ezinearticles.com/?History-of-Animation-in-Live-Action&id=4455936

animationxpress.com (3rd

Dec, 2010,16 November 2010, 23 November 2010

Event report in animationxpress.com

NASSCOM Animation and gaming conclave 2010 – Hyderabad 12-13 nov 2010

FICCI Media and Entertainment Business Conclave 2010, Hyderabad

Press reports

DNA

Economics times

NASSCOM report in Business Line, Saturday, Nov 13, 2010

59

8. Annexure

Name:_________________________________________________________________

Designation_____________________________________________________________

Title: Analysis of the revenue generation of the Indian animation industry in Motion Pictures

Questionnaire

1) What according to you should be the most promising mix of revenue generation of Indian

animated movies in terms of various rights? (please indicate the no. in %)

2) According to you, which would be the key factors that would augment the revenue generation for

Indian animated movies within India & how much would the factors mentioned as under count?

( Please mention yes or No as appropriate)

Factors Yes / No

Concept

Story

IP New IP originating from India

Existing Indian IP repackaged/ remade/ reformatted

Distribution strategy

Marketing

Any other‟s

______________________________________________________________________________

3) How many average screens are available for Indian animated movie? How many do you think a

movie should target so as to maximise reach but not spend too much on prints?

Rights India Rest of Asia Europe & America

Theatrical

Home Video

Satellite

Music

Merchandising

60

______________________________________________________________________________

__________________

4) Is for revenue generation for Indian animated movies confined to multiplexes or do we have a

regional market also? ( Please mention yes or No as appropriate)

a) Yes, its confined to multiplexes

b) No, we have a regional market

What is the percentage share for revenue generation for multiplex market and regional market?

______________________________________________________________________________

5) What will be the key factors that would be considered for the distribution of an Indian animated

movie? ( Please mention yes or No as appropriate)

a) Understanding of target group

b) Collection report of previous animated films. c) Understanding the market.

d) Existing IP

e) Genre – Kids/ Adults/ horror/ gaming/ superhero/ etc..

f) Others

___________________________________________________________________________

6) What should be the minimum budget for an Indian animated movie to be able to produce a

quality movie which would promise a table-profit? Or should one work backwards from a „safe‟

figure of collection & work back to one‟s cost of production?

______________________________________________________________________________

__________________

7) Do you think the revenue generated by Indian animated movies is adequate per rupee spent when

compared to the rest of the world?

______________________________________________________________________________

__________________

8) How far can co-productions help Indian animation Industry in motion pictures?

a) Reduce risk

b) Increasing profit , if a. International studios : better reach overseas

b. Indian : division of work.

61

Others_________________________________________________________________________

_________________

9) Which countries would be your top 10 choices considered for theatrical & satellite distribution

and why?

Theatrical Satellite

1 1

2 2

3 3

4 4

5 5

6 6

7 7

8 8

9 9

10 10

Why,_______________________________________________________________________

10) At present what % of the Indian Animation Industry‟s revenue are contributed by outsourced work ( not including co-production)? What according to you should be the ideal % of the industry

that is contributed by the business of outsourcing?

____________________________________________________________________________

11) What could be the major hurdles that limit the audience for Indian animated movie? ( Please

mention yes or No as appropriate)

a) Limitation of strong IP

b) Emotional connect c) Perception that Indian animated movies have only children as audience.

d) Repetition of the same mythological concept.

Others_______________________________________________________________________________

12) What will be the key factors that would be considered for the budget of marketing of an Indian

animated movie?

a) Budget of the film.

b) Understanding of target group c) Collection report of previous animated films.

d) Understanding the market.

62

Others – ______________________________________________________________________

13) Which marketing technique would be the best to attract the Indian audience for Indian animated

movies? a. Having a series in Television, creating a fan following and then making a movie using the

IP.

b. Trailers in television

c. Ads in Radio, print, ooh d. Merchandising before the release of the film.

e. Collaborating with restaurants like Mc Donald‟s, KFC‟s, Subway etc

f. Collaborating with gaming arcades at various malls. g. Events

h. Ground activation at malls.

Any other,_____________________________________________________________________