Market Research Report : Animation Market in China 2010


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The animation market in China is expected to grow steadily. Favourable policies framed by the Government and allocation of funds by the provinces are benefiting the players who are looking to expand operations while the huge consumer base, led by growing penetration of the internet, is increasing the opportunities in the market.

The report begins with an overview of the global animation market with emphasis on the leading markets. The market overview section discusses China’s animation sector including market size and growth figures. This section has also analyzes the changes in the sector over 2004 and 2010. It also highlights the major animation hubs and the business structure of the animation market in China.

An analysis of drivers and challenges explains the factors leading to the growth of the market and include government and state initiatives and allocation of funds by provinces, rise in exports, international events and festivals, huge consumer base, big market for animation films and ancillary animation products and presence of academic institutions. The key challenges identified are difficulty in broadcasting foreign content, lack of popularity in global markets and capital intensive sector.

An analysis of market trends reveals that players in the market are forming joint ventures, mergers and acquisitions are taking place while private equity and venture capital firms are investing in the business of the animation companies.

Competition section profiles the players in the market. The section contains a snapshot of their business.

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Market Research Report : Animation Market in China 2010

  1. 1. Animation Market – China August 2010
  2. 2. Executive Summary SAMPLE Market Drivers & Challenges Trends Competition <ul><ul><li>Animation is a booming and emerging sector </li></ul></ul><ul><ul><li>The potential opportunities lie in co-development and production, training, skill exchanges, investment and copyright sharing </li></ul></ul><ul><ul><li>a% of animation programming is done by China </li></ul></ul><ul><ul><li>Joint Ventures </li></ul></ul><ul><ul><li>Mergers and Acquisitions </li></ul></ul><ul><ul><li>Investment Deals </li></ul></ul><ul><ul><li>In China, animation companies are involved in the various aspects of animation business like original animation production, distribution, merchandising, licensing </li></ul></ul><ul><ul><li>Companies like Creative Power Entertainment produce animation films like The Super Adventure while CCTV Animation have also produced popular TV series Monkey King </li></ul></ul><ul><ul><li>Drivers: </li></ul></ul><ul><ul><ul><li>Government and state initiatives and allocation of funds by provinces </li></ul></ul></ul><ul><ul><ul><li>Rise in exports </li></ul></ul></ul><ul><ul><ul><li>International events and festivals </li></ul></ul></ul><ul><ul><ul><li>Huge consumer base </li></ul></ul></ul><ul><ul><ul><li>Big market for animation films and ancillary animation products </li></ul></ul></ul><ul><ul><ul><li>Presence of academic institutions </li></ul></ul></ul><ul><ul><li>Challenges: </li></ul></ul><ul><ul><ul><li>Issues with broadcasting foreign content </li></ul></ul></ul><ul><ul><ul><li>Lack of popularity in global markets </li></ul></ul></ul><ul><ul><ul><li>Capital intensive sector </li></ul></ul></ul>
  3. 3. <ul><li>Market Overview </li></ul><ul><li>Drivers & Challenges </li></ul><ul><li>Trends </li></ul><ul><li>Competition </li></ul><ul><li>Key Developments </li></ul>
  4. 4. Animation market in China is still at a nascent stage with strong growth prospects <ul><li>Animation Market is an emerging sector in China </li></ul><ul><li>In China, foreign animation programming accounts for v% of the daily animation programmes </li></ul><ul><li>There are T animation companies in China, bulk of which are based in Location 1, Location 2, Location 3, Location 4 and Location 5 </li></ul><ul><li>Cultural industries gross output value is ~USD N and proportion of animation, comic and games market is ~ m% </li></ul><ul><li>In 20--, China produced K minutes of animation, a rise of j% YoY </li></ul><ul><ul><li>It is expected that the output of the animation industry will grow at m% between 20-- and 20-- </li></ul></ul><ul><li>Segment 1 include TV animation, animated films, online animation, mobile animation and animated advertisements </li></ul><ul><li>Segment 2 products include animation books, newspapers, audio-visual products, toys </li></ul><ul><li>The potential opportunities lie in co-development and production, training, skill exchanges, investment and copyright sharing </li></ul>SAMPLE Market Overview – China Market Size & Growth Source: U 2009 V 2010e W 2011e X 2012e a% USD bn
  5. 5. Structure of the Animation Industry in China SAMPLE Source: Primary Company Industry Park Academic Institution Government Policy Outsourced Studio Other Investors Consulting Agent Industry Association Software Supplier Hardware T.V. House Cinema DVD/Book Publisher Website Platform Wholesaler Character Mfg. Infrastructure Support Production Platforms/Sales In China, the most active players include primary company, outsourcing studios, industry parks and TV houses. Animation players largely focus on developing products for X
  6. 6. Drivers & Challenges – Summary Big market for animation films and ancillary animation products Huge Consumer Base International Events and Festivals Presence of Academic Institutions Drivers Government and State initiatives and allocation of funds by provinces Rise in exports Challenges Issues with broadcasting foreign content Lack of popularity in global markets Capital Intensive Sector
  7. 7. Trends – Summary Key Trends Joint Ventures Investment Deals Mergers and Acquisitions
  8. 8. Domestic Players (4/7) SAMPLE Corporate Information Business Highlights <ul><li>It provides one-stop animation outsourcing service to meet the demands of overseas and domestic clients </li></ul><ul><li>The company also engages in the production of 3D animation and images for various sectors, including A, B, C, D, E and F </li></ul>Company Snapshot: Company 2 Source: Press Articles, Company Website Corporate Information Business Highlights <ul><li>A subsidiary of Company 3 , it has the largest animation production base in China </li></ul><ul><li>The entity develops and manages U and V as well as L, M, N, O and P </li></ul><ul><ul><li>Also commercialising intellectual property rights (IPR) and handling the merchandising of commodity 1, commodity 2 and commodity 3 based upon animation designs </li></ul></ul>Company Snapshot: Company 1 20-- Founded Headquarters Location 1 Products A1, B1 Key People Person 1 – CEO Person 2 – Chairman A2, B2, C2 Products Headquarters Location 2 Founded 19-- Key People Person 1 – CEO Person 2 – MD
  9. 9. Thank you for the attention About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. The Animation Market – China is a part of Netscribes’ Media and Entertainment Industry Series. For more detailed information or customized research requirements please contact: Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on Gagan Uppal Phone: +91 96191 00122 E-Mail: [email_address] Gaurav Kumar Phone: +91 98303 09715 E-Mail: [email_address]