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Case Details: Case Length : Period : Organization : Pub Date : Teaching Note: Countries : Industry : 20 Pages 1999-2006 Toonz Animation India Pvt. Ltd. 2006 India Media, Entertainment, and Gaming
The case study deals with Toonz Animation India Pvt. Ltd., one of the leading animation studios in India. It traces the beginnings of the studio when it largely executed outsourced work for overseas animation studios, and then elaborates on the company's efforts to create original content and also engage in distribution of its own content. The case also throws light on the challenges faced by the company. It ends with a brief discussion on the future prospects of the company.
» To learn more about the Indian animation sector; » To understand the efforts made by a company to grow by moving up the value chain in the animation industry » To understand the challenges peculiar to an organization that operates in a market that requires high levels of individual creativity and productivity; » To analyze the future prospects of the company and the animation industry in India, in view of the challenges such as the shortage of manpower.
Introduction Background Note The Early Years Creating Original Content Continuing Good Work Challenges A Leap For Indian Animation Outlook Exhibits Introduction
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In April 2006, Toonz Animation India Pvt Ltd (Toonz), a major Indian animation studio, and Percept Picture Company (PPC), announced that they were planning to release the movie Hanuman II in late 2007. This movie was to be a sequel to Hanuman, India's first commercially successful full-length animation film. The sequel was to be made using 2D and 3D animation with a budget of Rs. 90 million, the highest for any animation film in India.
Toonz invested in the best software and hardware. background.distinguished and veteran animators. and film makers . competing directly with animation studios based in South Korea and the Philippines. and editing. an animation expert. In November 1999. Toonz offered the entire range of services for animation production like layout. On the strength of the success of the series. inbetweening. In 2002. scanning.which proved to be a success and made a name for the company. and animation studios. in Los Angeles. production houses. Also.Toonz was established in 1999 at a time when India had started doing outsourced animation work for European and American companies. a US based entrepreneur and the chairman of Technomate Marketing Services (an electronic component company under the ComCraft Group8 ). TA set up Toonz Animation India Pvt. the severe dearth of talent in the animation industry was a nagging problem. it even figured among the'Top Ten Studios to Watch' in the Animation Magazine6. Even though it offered digital animation its core competence was in the Cel animation technique14 . artists. They made presentations on their work and spoke about the future of the animation industry. The event brought 'Masters' . Its studio was India's first digital ink and paint 2D animation studio. Toonz began organizing a biennial event called "A Week with the Masters". In spite of these challenges. compositing. in order to provide high-quality animation services for television programs and commercials. key background. Inc. artists. Predictably.A. considering its cost advantages. Though the company was optimistic about its future prospects. ink and paint. the animation industry was more widespread. Background Note G. Menon felt that. color models. the domestic animation market in India was not developed which forced Toonz and other Indian animation studios to depend on overseas studios for work. Toonz targeted and sought contracts and production partnerships with major animation studios the world over. It also provided pre-production services including key animation. Toonz. established Toonz Animation USA. Toonz set up a state-of-the-art animation studio at Technopark Campus. with Menon investing $ 5 million (through Multitech Investment based in Mauritius) and the ComCraft Group chipping in with an additional $ 2 million.. Unlike the software industry where Indian companies did business predominantly with US companies. The company made steady progress in the initial years and was successful in securing a number of contracts from major studios. However. and other . animation. the top management at Toonz was aware that the greatest opportunity for growth lay in creating original content and not in doing outsourced work. tried to present India to animation studios as a cost-effective country for outsourcing animation work. Bill Dennis (Dennis). the company saw several opportunities for growth. it created an original series . was appointed as President and CEO of Toonz and TA..from around the globe to India to screen their films and to talk about their art. Toonz gradually gained a reputation for high-quality work. Toonz also invited locally renowned filmmakers. Most animation studios were unaware of the cost advantages that India could offer.The Adventures of Tenali Raman . the Indian animation industry was in the embryonic stage. and key layouts. character design. Soon enough. Kerala. In 2002. The studio used the latest software available then from Cambridge Animation System12 and Toon Boom Animation13 . Toonz entered into several co-production deals with Indian and foreign broadcasters. cleanup. From its first year of operation (1999). In the initial years. Toonz targeted the middle and top segment of the market for outsourced animation work. Ltd. (TA). India would be a good place to set up an animation studio. animation directors. animation enthusiasts. Menon (Menon)7 . Thiruvananthapuram. Toonz provided animation services at prices that were 25 to 40% lower than other Asian animation studios. being the pioneer in India. The Early Years Even in the late 1990s.
the success of the film was attributed to effective pre-release marketing (promotion and merchandising). . In 2003." said Dennis. Toonz. and licensing rights in the UK. However. very happy. It held retrospectives on the masters' works. publishing.. patience. Belying the reservations expressed by many people who felt that the film would only appeal to a limited audience. Indigo secured the TV. Toonz agreed to the deal because it expected that the success of the venture would open up new opportunities for it in future. . one of the leading production houses in the world. Continuing Good Work Toonz's client list included some of the biggest names in animation.. and Africa. France-based Toon Factory. A Leap For Indian Animation Hanuman. Products you develop are yours to promote. This presented a challenge because it had to evolve from a provider of services to a content creation house. The company also tried to keep up with the latest developments in animation technology. In 2001. While Toonz owned the rights to the series in Asia (including in India). subcontracting does not provide for a future. Creating Original Content In the early 2000s. story development. Part of the problem was that animation professionals were required to possess several characteristics . etc. which till then was working mostly on outsourced work gradually moved towards creating original content to earn higher margins and greater long term revenues. "While it pays today's bills. video. And by developing your own materials. 3D animation and special effects were also being outsourced to India.Brady's Beasts.. Asia-Pacific. according to box office estimates. India's first full-length animated movie was released in October 2005. 150 million mark. would help it to win larger animation projects. crossing the Rs.which was difficult to find in one person.. This series marked Toonz's major foray into the distribution of a product... If we break even. and the UK-based Treehouse Productions to partly develop an animation series . it went on to become India's first successful animated movie with gross earnings. These enhanced skills help their work on service projects. Outlook The management of Toonz was optimistic about its prospects. Toonz entered into the co-production deal even though it knew that it would earn very low margins from the project. We are producing it at less than we would normally. Besides the content.creativity. I'll be very. Most global entertainment giants were satisfied with the quality of animation services provided by Indian companies. India witnessed an explosive growth in the number of television channels available to viewers. which also included interactive panel discussions and open forums on various topics relating to the animation industry. Challenges Toonz was gradually expanding worldwide and was working on several prestigious contracts.. you also develop the skills of your artists. Toonz set out to produce its own animation series. Continental Europe. a talent for acting. and exploit.." said Dennis. and storyboarding.. "We are biting the bullet on this one. the severe shortage of competent animators in India was a constraint to its growth. which required developing skills in character design.both exclusive cartoon channels and channels which showed animation serials in certain time slots .as far as the cash we're getting from production . and were outsourcing many of their projects to India. non-theatric.also increased. expand. a good sense of color. but I think .. The number of kids' channels . Toonz entered into a major coproduction deal with Canada-based Vivatoon (Vivavision's animation division).we probably won't even do that. ability to visualize scenes. and wide distribution by PPC which also produced the movie.guests to this event. Toonz believed that its deal with Marvel.
Major Projects Exhibit IV: Major Awards Won By Toonz Exhibit V: A Still From The Adventures Of Tenali Raman Exhibit VI: Business Models In The Animation Industry Exhibit VII: Nasscom Recommendations To The Goi With Respect To Indian Animation Exhibit VIII: Industry Associations Representing The Animation Sector In India Exhibit IX: 'The Baby Hanuman' Exhibit X: Top Ten Animated Movies Exhibit XI: Some Insights Into The Animation Industry In India Exhibit XII: Major Animation Studios . Toonz installed Harmony ..In April 2006. Exhibits Exhibit I: The Process Of Creating Animation Exhibit II: Production Costs In Some Countries (For A 30 Minute Tv Animation Program In 2004) Exhibit III: Toonz .. a new animation software developed by Toon Boom which was expected to greatly improve the quality of its work.