Bangkok Post : Creative industry initiative gives Thai animation a push

One aspect of the Government's "creative industry" push to uplift Thailand's economy is the digital content industry, in an attempt to make the country stand out in the Asia market.

Thailand's ICT Master Plan 2009-2013 has a key objective to put in place actions that will result in significant growth of the nation's digital content industry. The Master Plan aims for the industry to be worth 165 billion baht by 2013.

This year, the market expects to reach 22.8 billion baht, of which 11.4 billion baht will come from animation and the remainder from games.

This will be an increase on last year, when the market size was 20.5 billion baht, made up of 10.2 billion baht from animation and 10.3 billion baht from games. However last year's figure was down from 2008, when the industry was worth 21.2 billion baht. This drop was blamed on the economic downturn.

The Software Industry Promotion Agency (Sipa), in collaboration with industry partners, has secured approval for a budget of 178 million baht to promote the digital content industry under the Strong Thailand economic stimulus package. This will help set in motion various activities under the Digital Media Asia 2010 (DMA) project, according to Jeerasak Pongpisanupichit, Chairman of the Executive Board at Sipa.

The DMA intends to help expand opportunities in the international market and attract investment or co-investment for creative industry, especially in the game and animation fields.

"These activities should improve Thailand's standing in the global market and boost the economy by 2 billion baht. Thailand's strengths lie in creativity and cost-effective production, while Asia overall is showing increasing promise, with the region sharing 14 percent of the world market," Jeerasak said.

Lak Taechawanchai, chairman of Thai Animation and Computer Graphics Association (TACGA), said the DMA will cover 10 areas of digital content, including animation, games, films and music.

The animation business requires a lot of investment and could be limited in the local market as local share is quite small, comprising around 8-13 percent of overall animation which is broadcast in Thailand.

In a bid to make this a successful business, the DMA aims to encourage participation from local and international government and private businesses in terms of production and marketing.

Other countries in Asia are already following this model. For example, the South Korean and Chinese governments are supporting their local animation industries through funding and broadcast quota allocations.

China is investing 640 million yuan (3 billion baht) per year in the industry and has dictated that any animations broadcast between 5pm and 8pm must be locally produced.

Similarly, South Korea has pledged 700 billion won (20 billion baht) per year to the industry and introduced a policy that one percent of broadcast time must feature local animation.

In contrast, the Thai government has only suggested that 5-7pm be youth-oriented, with no specific support for local animation.

Co-production opportunities

The DMA project allocates 25 million baht for co-production of animated TV series, to be spent on 26 episodes of 11 minutes each and an animated movie of not less than 80 minutes, according to business promotion manager at Sipa, Chalermcharn Yotviriyapanit.

This comes with the condition that proposals from Thai companies should ask for international partners to invest in the co-productions the same amount of capital that Thailand does.

So far, there have been expressions of interest in co-productions from South Korea, Japan, Singapore and Malaysia. Government-to-government contact represents the first stage. The deadline for proposal submissions is March 8 and the project expects to attract investment value of 200 million baht.

Chalermcharn continues that Sipa has also allocated a further 30 million baht exclusive from the DMA project in this fiscal year for co-production of animation, films and software. Sipa can support the fund by not more than 25 percent of the project value, or not more than 2 million baht per company, whichever is greater.

Sipa has so far selected three companies to get involved with co-production of software export and animation series, with the funds to be repaid to Sipa only once the productions have recouped the investment.

The agency also proposes that the Board of Investment (BOI) adjusts tax privileges for software and animation categories, reducing the minimum capital investment from 1 million baht to 500,000 baht.

Chalermcharn added that foreign investment, normally in software and digital content, attracts about 300 million baht per year across 50-60 projects, although this figure has reduced to 40 projects during the recent economic and political troubles.

Awards to reach broadcaster

The Asia Animation Awards, for which Thailand is eligible, is divided into two categories - animated TV series, and short-form animation, such as commercials, campaigns and fillers.

The awards committee will feature representatives from Channel 7, ThaiPBS, Modern Nine, NHK and CCTV and so this represents a great opportunity for entrants to make an impression on decision-makers from domestic and international TV networks.

Submissions can be made until March 15 and the winners will be announced in June, with a corresponding exhibition of entrants' works.

Merchandise a multiplier business

Another revenue stream beyond the animation itself is that of spin-off merchandise. The market for merchandise from cartoons in Thailand is valued at 10 billion baht, as such items will continue to sell for as long as the programming remains popular, meaning that it a multiplying business model that in some cases can become many times more valuable than the original content.

TACGA committee member Phisitchai Tanwannawitch said the Toy & Comic Expo Asia is to hold character design contests in Bangkok, Chiang Mai, Phuket, Khon Kaen and Nakhon Ratchasima.

Phisitchai said initial character design is the starting point in any successful animation, especially in terms of its merchandising potential.

He added that memorable cartoon characters should feature unique appearances and trademark mannerisms, and it is helpful to test audience reactions to new characters by showing them to members of the target audience at the developmental stage.

"It is important when developing a character to manage its image so as to gauge its reputation and popularity. Only a few characters become successful internationally, but [there is potential because] the market is so huge and the US and Europe is accepting Asian styles more than ever," Phisitchai concluded.

Relate Search: ICT Master Plan, Software Industry Promotion Agency, Digital Media Asia 2010, Thai Animation and Computer Graphics Association