The Indian animation industry is estimated to grow at a CAGR of 22% and gaming industry is estimated to grow at a CAGR of 49% by 2012. A research report released by ‘Deloitte Touche Tohmatsu’ says that India’s current outsourcing share of the global market for animation and gaming industry is less that 10% as compared to the corresponding share in the IT and BPO Industry which stands at 51%. A study on India’s Animation, Broadcasting and Gaming industry by Deloitte hopes that the industry, which derives a majority of its revenues from outsourcing today, will grab greater share of this increasing outsourcing pie. Moreover, as the economy moves out of tough times, animation houses in India would take the initiative to develop the in-pipeline high budget, high quality movies and animation content
The report also suggests that currently low domestic share (0.6%) of the worldwide animation and gaming market points to Indian industry’s potential for growth of local content. The demand for original Indian content has been increasing over the years. Content creators and broadcasters need to be cognizant of the ever increasing demand for differentiated content. The future of radio in this country is primarily dependent upon change in the regulations and the mode of the much-awaited Phase 3 Licensing. The real potential of the medium which lies in its local reach and interactivity can never be realized unless radio broadcasting players find it commercially feasible to operate in small towns and cities, with the freedom to broadcast multiple genres.
The Indian media industry is likely to get an enormous increase from the gaming, broadcasting and animation industry in the country, which is expecting an extensive increase in revenue in coming years from increased shove on global outsourcing of content. India currently gets only 10% of the global animation and gaming contracts and the Indian Animation and Gaming industry, with an annual growth rate of 32%, stands at USD 739 million, according to a research report by Deloitte.
With the growing business in animation and gaming, an emerging trend that can be seen in the market currently is that an increasing number of Indian companies are adopting a co-production business model from an outsourcing model. Well, going forward, India is expected to position itself as number one in the animation market riding high on its talent potential and quality work it offers to the global market.