NASSCOM Releases 2009 Figures for Indian Animation Industry
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Thursday, August 27, 2009
By: Ramin Zahed
India’s National Association of Software and Services Companies (NASSCOM) has released its animation and gaming report for 2008-2009. The report provides a detailed insight on the growth drivers, business models, issues and challenges for the country’s industry in the next few years. It also provides recommendations to the government, charts the road ahead and suggests targeted actions that key stakeholders need to undertake for the industry to achieve its true potential.
Following are some excerpts from the report, via Animation Xpress.
“The animation industry in India can be divided into the following key segments: Animation entertainment, animation education, custom content development and multimedia/web design and vfx. The entire animation industry in India was estimated at USD 314 million in 2006, USD 494 million in 2008 and is expected to grow at CAGR of 22 percent to reach USD 1 billion by 2012. In absolute terms, custom content development and multimedia/web design is the largest segment today, followed by animation entertainment, animation education and VFX, respectively and is expected to remain so in 2012.
“The gaming industry can be divided into the following key segments: Online Games (MMORPG and Casual Games), Mobile Games, PC Games and Console Games (Regular and Handheld Devices). The Indian gaming industry was estimated at USD 50 million in 2006, USD 167 million in 2008 and is forecasted to grow at CAGR of 49 percent to reach 830 million by 2012. The overall size of the Indian gaming industry represents revenues from the consumer market, services market and revenues from non development activities such as services rendered as technical support to international gaming companies. The consumer gaming market was estimated at USD 105 million in 2008 and is expected to grow at a CAGR off 55 percent to reach USD 610 million by 2012. The services market for gaming was estimated at USD 61 million in 2008 and is expected to grow at a CAGR of 38 percent to reach USD 220 million by 2012. In 2008, the console gaming segment is estimated to account for the largest share of the Indian gaming market, followed by mobile gaming, online gaming and PC gaming respectively. In 2012, it is expected to remain the same.
“The production budget of an animation movie made in India has increased from USD 1.7 million – USD 2.2 million to USD 4.5 million- USD 6.7 million over the last few years. Moreover, the production budget of international movies outsourced to India has increased from USD 8.8 million to USD 11.1 million. Consequently, realization for domestic work has gone up from USD 1,300 to USD 2,667 per seat per shift per month. The realization for international outsourcing is in the range of USD 2,200 to USD 3,100. This increase in realization is the result of animation companies providing higher-end services such as long form and 3D animation films.
“Cost Advantage is the most important and attractive value proposition for India as an animation and gaming content development destination. India’s low cost-high quality advantage offers a 60-80 percent cost saving for the international studios outsourcing/off shoring to studios in India. This has become an even more attractive proposition for India due to overall skill enhancement of the companies enabling them to cater to the whole value chain rather than service labor intensive low end jobs.
According to the report, the production cost for a full-length feature in India is $13 million to $22 million (compared to $13 million to $22 million in the U.S.), while the cost of production per episode of TV content is $88,000 to $142,000 (compared to $22,000 to $27,000 in the U.S.)
The cost of producing a PC/or console game in India is estimated to be $ 2 million to $3 million (compared to $11 million to $18 million in the U.S.) while mobile games are estimated to cost about $1 million to $2 million (compared to $2 million to $5 million Stateside).*
*Source: EY Analysis
Reader Comments
Anonymous : Producer :
Thursday, August 27, 2009
My opinion.
Those figures are complete misinformation.
Indian animation is going down, not up, from 2005-2007. Companies everywhere are letting people go for the most part. This is happening now, Summer 2009.
India is not exempt from the global financial crisis and they are unable to sustain their own industry; the recent locally produced animated features were not successful.
A billion dollar animation industry for India alone is simply not on the horizon yet.
The press for animation, and particularly out of India, has largely been misinformation.
Companies doing all this bogus press usually do it to sway their stock price or interest investors.
Animation press releases globally do not seem to be regulated or invesigated. Mostly they are hype.
There are only 400 to 500 or so \'good\' animators in India anyway - how much revenue can they generate?
Anonymous2 : Designer : A
Friday, August 28, 2009
i totally agree with the \\\'anonymous: producers\\\'.
Backing up his point from a true experience;
More than 5 of us (decently talented youngster) has passed out of a very well known Animation institute in Chennai. Its been 6 months and none of us have got a job. We have applied all over india
Most companies dont want freshers. They only want experienced people. Where are the freshers supposed to get their experience if no one gives them an opportunity???
India has a long way to go.
K : Sr Animation Lead : na
Sunday, August 30, 2009
The excerpt from the article (included below) is erronous and does not make sense. Please correct the same and publish correct information.
According to the report, the production cost for a full-length feature in India is $13 million to $22 million (compared to $13 million to $22 million in the U.S.), while the cost of production per episode of TV content is $88,000 to $142,000 (compared to $22,000 to $27,000 in the U.S.)
Duke Wayne : Cowboy : Beyond the Pipes
Tuesday, September 01, 2009
During the Great Depression in Hollywood, USA, it was nearly impossible for \'freshers\' to land employment, either. There must be funding. Without it there is no work for anyone.
Anonymous3 : nasscom bought by animation institutes :
Saturday, September 19, 2009
i totally agree with producer and designer posts, everywhere u go the institutes display these things which are given by nasscom, i wonder at what price nasscom been sold,
once upon a time nasscom built up the software industry in india, it was like a supporting wall for new software companies....
now i feel they have lost their minds by publishing these fictious numbers and reports....
by the way Duke Wayne during the great depression itself many unknown companies made big bcoz they had the power of freshers
nishit : owner : itronix
Saturday, September 19, 2009
i dont think whtever the figure tells the indian animation industry can turnout big coz the major thing which we lagg behind is the quality of education which is given in india on this subject is nowere if we compare........i think wht we need is to improve the education system wich is very importnt
sachit :
Saturday, October 03, 2009
oh my god wat da hell this....this kind of information making me to fly away abroad.... m doing animation course from a leading animation institute.....but the review given by these all suckers making me to disbelief my institute.....where can all we get pure nd good education......
deep : student : animation
Tuesday, October 27, 2009
WHAT THE HELL IT IS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
AM I NOT GOING TO GET A JOB AFTER THE COURSE??? CONFUSED
rakshit walia : modeler : modeler
Thursday, December 24, 2009
Believe me guys its all about education,every company wants good 3d Artist. And, all institute in India are no teach well. They just teach animation software and moreover Indian animation education industry is crappy. Its a good suggestion that do your studies in abroad and come back to India ,and definitely you get nice job and nice salary...I agree with nasscom statistics..
rakesh : creative modeler :
Wednesday, February 24, 2010
few well known internatinal names such as crystal cg have setup base in india and are launching their specialized courses here in india. I think this is a good step forward for the industry and will produce qualified professionals. About the statistics, I\'d take a second opinon. I also faced crisis in finding a job atter my course from one of the best here. The recruiters didnt feel it the best enough..
Raj : research analyst :
Monday, March 01, 2010
just to say keep going.........im a goldmedalist in painting but now ended up doing something which i dont like....you got a very good oppurtunity.......
Intentionally Hidden : Intentionally Hidden : Intentionally Hidden
Saturday, March 20, 2010
Hi folks !
For Freshers Their are some points i wish to share.
Make your Brand
Make your portfolio
Animation Or What ever is still a new concept for managers who are always stuck with facts and figures.
Your Portfolio will help them to decide what you can do rather then what your institute taught you.
I had taken interview for about 6 months and not able to find my kind of Animation Artist. Almost every one download from internet and show me saying the subject was build by him.Common Man After spending years in the line I am able to search and find who is the real person behind the concept..
Get at least 1 year training in real business.Reasons Institute taught you tools and techniques but their is a big difference between the required and available.
Animation Industry will rise.
We need your portfolio to find the best talent
We need to know where on the planet you live (Until we know you How will we find you.)
My credential are Intentionally Hidden. But Don\\\'t bother I am always finding the talent. If you deserve.. count me I will reach to you !
As my subjects is still waiting to find the best talent from last 6 months...
Wishes for your career
Your Big Bro.
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