Creating a Billion-Dollar Intellectual Property (I.P) in Animation

India has emerged as one of the largest and the most diversified content producers in the world. The Indian animation industry has embraced diversity and innovation for creating a billion-dollar I.P. The animation industry is witnessing technological changes across content generation wherein the emergence of different platforms followed by marketing and distribution has played a big role in expanding the reach of the industry. While Indian films and television channels were always accessible across about 130 countries; the advent of globally distributed OTT platforms are sure to be the game-changer for India.

Globally, the Animation and Visual Effects (VFX) industry is rising and facing tough competition from the Indian counterparts. According to a recently-conducted survey report, the Indian animation and VFX industry is driven majorly by the growth of 31% in the VFX industry and a growth of 9% in the animation industry. The Indian animation services market is dominated by outsourcing projects from television and film sectors. For creating a billion-dollar I.P, broadcasters are building strategic partnerships with Indian animation studios for original content.

TV Channels like Sonic and Nick have 50% of their content localized with shows such as ‘Motu Patlu’, ‘Shiva’, etc. Consequential to the introduction of channels such as ChuChu TV, CVS 3D Rhyme, the digital space has also seen an increase in demand for kids content on Youtube. Global players such as Amazon Prime and Netflix are signing exclusive content licensing deals with various studios in India en route to creating a billion-dollar I.P. Licensing and merchandising opportunities for animation characters/IP’s are boosted with the growth of broadband and e-commerce.

Creating a billion-dollar I.P of animated content is a costly affair as it involves relatively higher costs of production in comparison to a daily soap. These higher costs combined with non-commensurate returns in terms of ad rates prohibit investment in animated content on TV. However, with the rise of OTT networks, content is watched across a cross-platform IP potentially delivering a return on investments over longer shelf life. The uptake of local IP is likely to be the key driver for the animation industry and the expected uptake of digital consumption through OTT platforms would add to the growing demand for localized content.

For creating a billion-dollar I.P of animated content, the government of Karnataka, in 2017, allocated a fund of Rs. 2.5-crore to develop world-class content for a global audience. The state government has proposed to establish a Centre of Excellence for Animation which will boast of pre and post-production facilities. The govt. announced that for creating a billion-dollar I.P, original intellectual property content in animation and gaming will be eligible for a grant of up to Rs. 50 lakh. As a matter of fact, we are at a stage when the animation and gaming industry is growing at a fantastic rate year on year.

For creating a billion-dollar I.P, there is abundant access to dubbing and subtitling capabilities and Indian stories can be exported for global audiences. This trend is expected to immensely benefit content creation in India. India can become a high quality and cost-efficient content creation hub for the world. Our large talent pool, both in front of and behind the cameras, our pre and post-production facilities, expertise in animation, VFX, back-office operational excellence and high levels of connectivity are bound to help drive the Indian M&E sector to grow globally.

For creating a billion-dollar I.P, the Indian animation industry is headed towards becoming a world-class tech sector due to it’s access to global audiences through online platforms. It is time to create global media giants from India. The country is already seen as a hub for animation and VFX wherein the world has recognized its potential. All of this suggests that it is only a matter of time before India establishes itself as a powerhouse and begins creating a billion-dollar I.P for the world, with a realization that the journey has just begun!