With demand for digital entertainment expanding exponentially across Asia, content development is increasingly shifting to this high-growth continent.
Kantana Animation Studios spent 170 million baht to produce Thailand’s first 3D animated feature, ‘Echo Planet’.
"Over the next year or two, Asia will grow in importance as a hub for digital content development," said Wiwat Wongwarawipat, a board member of the Information and Communication Technology Ministry's Software Industry Promotion Agency (Sipa).
He said economic risks in the euro zone and the US have tarnished demand there, leading to a major shift in spotlight to Asian countries.
In Asia, Asean markets are the fastest-growing for both consumption and production of digital content.
Dr Wiwat said many content firms from South Korea, Japan and the US are making more inroads into this region to set up digital development facilities.
Sipa is providing funds for developing digital content and matching business activities between Thai and international studios for co-productions in the country.
Later this month, it will sign a memorandum of understanding with the Japanese government in Fukuoka for digital content development collaboration, said Dr Wiwat.
"This collaboration will position Thailand as a base for Japanese firms," he said.
Lak Taechawanchai, vice-president of the Thai Digital Entertainment Content Federation, said the Nomura Research Institute ranks the country tops for Japanese digital content development in Asean.
He said member countries, particularly Thailand, have the potential to become an outsource and co-production for digital content development centre thanks to creative skilled resources combined with competitive labour costs. South Korea has moved aggressively to ally for co-production with Malaysia and Singapore. Japan is looking for more co-production in Thailand to pave the way for its expansion to Myanmar, Laos and Cambodia.
But Mr Lak said Thailand also has high potential for co-production with Malaysia in order to expand into the Indonesian and Bruneian markets or even to the Middle East.
The arrival of third-generation wireless broadband services and the burgeoning satellite TV are accelerating opportunities for local digital content, especially animated TV series, mobile games and cartoon video clips on mobiles, he said.
"Unfortunately, broadcasters remain largely interested only in importing content rather than going local. This has caused half the local studios to shut down, as only the large, strong ones can survive," said Mr Lak.
Auchara Kijkanjanas, the producer and managing director of Kantana Animation Studios, said the company spent 170 million baht producing the country's first 3D animated film, Echo Planet, which is playing in cinemas now.
The company generated its own intellectual property from the films Khan Kluay (2006) and Khan Kluay 2 (2009), allowing it to build international recognition.
Miss Auchara said making an animated film is very costly and time-consuming, so Kantana Animation cannot rely solely on movie revenue. However, she still wants more success in the domestic market before venturing abroad, following the same success path as Japan's animation industry.
Digital Hollywood University, a leading digital content institution in Japan, will open a digital content school in Thailand next Monday.
Nobuyuki Kobayashi, the chief executive officer Digital Hollywood (Thailand), said the 12-million-baht school makes Thailand the first Southeast Asian country to have such a facility, made possible by the abundant young creative resources.
The school will offer short courses of three, six and 12 months' duration, featuring 3D computer graphics design, web graphics design and mobile apps creation. Course fees will range from 45,000 to 150,000 baht.
Mr Kobayashi said instructors will be industrial professions from Japan. The cost of learning at this digital school will be three or four times lower than studying abroad.
"We plan to extend the courses into a bachelor's-degree programme once the operation is running well," he said, adding that social media and the proliferation of smartphones and tablets will likely drive digital content growth.