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| Ritu
Marya | Licensing
industry in India and China has bright prospects because of their large population
that account for 37% of the world's population. Also, the vast majority of India’s
USD75-100 million in retail sales of licensed merchandise is children’s properties.
Over the last three years, the merchandise
licensing business in India has been growing at more than 50%. Popular comic character
licensing has become an effective mode for boosting up merchandise sale, whereas
total character licensing sales in India are estimated at Rs500 crore. Lately,
a slew of activities can be seen at this front. Disney Consumer Products occupies
the foremost position in licensing merchandise and character franchise. The character
of Mickey and Minnie from Disney’s stable alone generate 43% of
its revenue. King Features Syndicate, a merchandise licensing firm of US-based
Hearst Corporation has entered India. The firm owns the characters like Flash
Gordon. Popeye and Betty Poop and is in talks with Indian corporates
for licensing deals in food and beverages, kids apparel and footwear, stationery
and toys, home décor and furnishings, and the wireless/mobile sectors.
The Popeye character alone generates sales of USD2 billion annually – indicating
the prospect of licensing business. Dubai-based
SpaceToon Media's Kids Media India has launched licensing and merchandising business
in India and SAARC countries. Kids Media has been appointed as the agent of the
Hong Kong registered Animation International Limited, which is the licensor for
Doraemon and other well-known media properties, and licensing partner of World
Wrestling Entertainment for its consumer products. Industry Facts There
are now more ways to consume animation content than ever before with more TV channels,
increasing accessibility to internet, proliferation of mobile devices and increasing
popularity of mobile, video and computer games. In India, the industry value is
pegged at Rs1,595 crore in the FY 07, registering a growth of 24% over the previous
fiscal year, with the entertainment segment contributing nearly 68% of the total
market in India. Exports, mostly to US and Europe, accounted for more than 70%
of the revenues in 2006. In the Asia
Pacific region, Japan offers most promising market. Singapore, Hong Kong, Korea
and Thailand are becoming relatively good sources of sales revenues for children's
and factual programming. Australian market is ruled by strict legal regulations.
Comparatively, New Zealand has lower license fees but fewer opportunities. A
Business Model In Animation Producer
of IP – develop and produce original animation products for global consumption. As
a producer of IP you could develop animation concepts to a level of quality and
professional presentation so that they are marketable to studios and networks.
It is not enough to have an idea for a series or a movie. The idea must be fleshed
out with well-drawn characters, story lines and other materials that not only
clearly demonstrate the uniqueness of the idea but also make apparent the cartoon’s
potential viability (and profitability) in the media marketplace. The
service provider will be the purchaser with the right to use the animation in
digital publications. If it so happens, one can reap the rewards that come from
a successful television series. The TV series is a half-hour advertisement for
your brand. The big money lies in the ancillaries which include licensing and
merchandising, video games, DVDs, mobile content, theatrical productions, publishing,
etc. A Lot To Offer Particularly
in animation and gaming sector, India has a lot to offer for its rich heritage
of mythology that can always serve as interesting content. Cost of production
is almost 60% lower in this country, coupled with the advantage of having English
speaking professionals. However, for the lack of training institutes, the country
does not produce enough creative skill which can otherwise be utilized in the
fields of mobile gaming, merchandising, simulation and special effects in Bollywood. India
needs to build strong defensive measures against piracy of software which went
up to 73% in 2006 despite having well chartered Intellectual Property Rights,
Patent Acts and Rules. Effective implementation of licensing can stop these unscrupulous
activities. But, there’s no doubt, that the market is invigorated by some recent
developments. It is worthy to mention that Disney Consumer Products has launched
Roadside Romeo line of merchandise products in various categories such as apparel,
footwear and fine jewelley in association with different retailers. The trend
started with Percept Picture produced animation film Hanuman in 2005 followed
by its sequel Hanuman Returns in 2007. Ritu
Marya is Executive Editor, Franchise India connect@animationxpress.com | 
