A GLIMPSE ON PHILIPPINE ANIMATION INDUSTRY

A GLIMPSE ON PHILIPPINE ANIMATION INDUSTRY Castañeda, Martin S14 [email protected] Medina, Marjorie S14 [email protected]

Cordova, Allaine S14 [email protected] Suarez, Jed S14 [email protected]

Tanlimco,Kerwin s14 [email protected] College of Computer Studies Bachelor of Science in Information and Communications Technology Management

ABSRACT The last years has been marked by development in ICT specifically in the field of computer animation. Alongside of this development is the rise of animation industry in the Philippines particularly begin one of the faster growing type of outsourced work. The Philippines has long been engaging into this industry which can be traced as early as the 1980’s. Having that established reputation and with the presence of intrinsic creative pool of Filipino talents, the Philippines are one of the stronger Asian players in the global animation industry which greatly contributes to the country’s economic growth. Despite of that fact, the Philippines still remains as a service provider to other nations and has been longing for recognition due to lack of funds, opportunities and marginal technology development as compared to Asian competitors. This paper also seeks to answer the problems which hinder the Philippines to be globally recognized and established in the

animation industry competitiveness

despite

of

its

I. INTRODUCTION Animation deals with the rapid display of sequence images to produce an illusion of movement. Animation along with Information Technology has evolved through time from the traditional animation into 2D animation, 3D Computer Generated Imagery (CGI), 3D CGI and 3D Motion Capture, and later into Virtual Reality. These developments had led and contributed to the country’s growth given the revenues generated and increase in employment rate. Currently, the Philippines is now considered as one of the top choice of Western countries to outsource their work with its cheaper labor and abundant creative talent. However, given the different forms of animation, Filipino animators are inclined in 2D animation, a more economical and less intensive kind, rather than the more advanced forms. More so, some talented

Filipino animators seek and find better opportunities to foreign organizations given the limited opportunities locally. And the country is nearing to be left behind in terms of the technological aspect as compared to other Asian competitors. The following sections discuss the different factors that contribute to the current issues that local animators experience. II. FUNDING It has been one of the issues that the Philippine Animation Industry is lacking funds to provide the local animators for them to produce their own original Filipino storyboards. This has been evident when more and more countries have been employing artists from Vietnam, India, and China knowing that Philippines is also one the neighbor countries who has a great pool of diligent and creative animators. This has happened because they offer cheaper outsourcing services and they are more technologically-advanced than Philippines [1]. It has also been in the 1980s that when the computers emerged, it has already been impossible for the Filipino animators to compete with other neighbor countries [3]. “2D animation in the Philippines even lost its market to these computer imagery technologies” says Raul Boncan Jr., owner of CSDA Graphics and Animation Inc., which is the first animation studio setup in Baguio City. He also added that there were 300 Filipino Animation veterans who dropped out of the market when 3D became the mainstream form of animation. Many have turned to painting but many get back to animation. Though this is a fact, according to TOEI Animation general manager Nestor

Palabrica – who is also the president of the Animation Council of the Philippines, local artists have the capability to do their own original works but there is no one who can provide them financially. This has been also one of the reasons why Filipino local artists resort to outsourcing their artistic works instead. He also said that these animated films or series will have to have bigger investments and they are much expensive than producing a full-length movie film. However, he noted that when right financer comes around, he is sure that the local artists are ready and worth the price III. EXTERNAL OPPOTURNITIES There are many good animators in many countries but because of minimal compensation, lack of technology, proper motivation, and financial difficulties of companies, these animators are attracted to go to other countries. Most of the animators of the Philippines are transferring to other country because of different reasons like the cost of production in the Philippines is low compared to other countries. Because of that, animators of the Philippines are grabbing the chance to go outside the Philippines and work abroad because they will get higher pay rather than stay and work in the Philippines. “According to Global Sky In the next few years, the global game development industry is likewise seen to grow. The US game development market is projected to reach roughly US $ 15 billion in 2009 while Canada’s market is seen to increase to US $ 1.3 billion and Latin America, US $ 832 million in the same period. With this

expected growth, companies wanting to outsource their work offshore are seeing Philippines as a desirable location. With the country’s lower cost development compared to that of North America and Europe, surely it is a better outsourcing spot. As said by the President of LadyLuck Digital, a local game development firm, Luis Mañalac, the cost of game development here in the Philippines is only one-eighth of that in the USA. He mentioned that here in the Philippines, a team of 10 people working full time for two years only costs US $ 262, 000 as against to US $ 1.7 million in the United States.” Along with many Filipinos who are working abroad to earn money, there are also Filipino animators who are leaving the country because there are greater benefits abroad rather than working here in the country. Also because of the animation companies here in the countries that are closing because of financial problems, Filipino animators are forced to find work abroad to find jobs and there are many opportunities abroad. As stated by Dennis Ladaw of the Manila Times, There was this Filipino named Ralph Fernan who worked for Disney’s animation film, “Chicken Little” which nearly grossed about $120 million during its opening weekend. Fernan was responsible for animating both the title character and his father. Fernan was assistant editor of the Hanna-Barbera’s feature-length cartoon Once Upon A Forest [7], which featured the voice talents of Michael Crawford and Ben Vereen.

Sadly, however, the company was compelled to shut down its Manila studio due to financial difficulties. As with most of the talented Filipino animators, Fernan decided to seek his fortunes in other countries. There were fewer opportunities for animators in the Philippines, he explained. While others found employment in Australia, Fernan and a few others tried their luck in the United States. Fernan has so far been the most fortunate Filipino animator. He found work at Burbank Studios and was animator for the features of Turner Pictures and Warner Brothers. Among his credits are the highly acclaimed Iron Giant (1999) and Stuart Little 2 [8]. For Disney, Chicken Little was a major gamble that paid off. It was the first CGI film, the studio produced on its own. (Pixar produced most of its CGI productions.) The studio first adapted Chicken Little for the screen in 1943 using traditional animation. Fernan resides with his wife and son in Altadena, California. While he’s enjoying his work in Disney, he said he hopes the animation industry in the Philippines would eventually get off the ground. “Then perhaps the talent wouldn’t have to migrate to other countries,” he said. [9]

VI. ANIMATION AS AN OUTSOURCED SERVICE Although Philippines could not produce so much of their own original animated films in the market, their talents are still a great advantage to the foreign countries. According to Marlyn Montano, Philippines has been known for their great talents since 1980s which has provoked the international animation studios, Burbank and Hanna Barbera, to set up their own affiliate studios in the country. She also said that, these offices have been providing the local artists trainings in animation with the use of technologies they have at that time. In 1986, TOEI appeared, a 100% Japanese owned company that produces majority of the Anime series and has based their studio in the Philippines [1]. Because these studios have recognized the talent pool that the Philippines has, Filipino local artists were well-trained and paid off in dollars, which is the benefit that the Philippine Animation Industry gets in outsourcing their talents. BPO (Business Process Outsourcing) has helped to develop a profitable pool of independent Filipino contractors. The setting up of a few large, high-profile companies in the Philippines eventually led to opportunities for the Philippine Animation industry to be recognized globally. The major players in the region that are involved in the global animation market includes: China, India, Singapore, South Korea, and

Philippines. Philippines is one of the stronger players among them knowing that it has been subcontracting with the internationally recognized companies such as Walt Disney, Warner Brothers, HannaBarbera, Marvel Comics, and Cartoon Network .[6] Animation companies located in the Philippines that include TOEI Animation, Roadrunner, and Toon City Animation Inc., have the 18% of 7,000 employees working for the animation sector. Employment in the Philippine Industry had grown to 34% from 2004-2007[6.] In terms of revenue generation, the industry generated up to US$97 million and US$105 million in 2006 and 2007 respectively as shown in the figure below.

For many years, foreign animation companies were the ones that have been recognizing the local artists giving them steady work. According to the Animation Council of the Philippines, which is currently the biggest organization that represents animation firms in the country, PIXARS (Toy Story, Finding Nemo) and Dreamworks (Shrek, Madagascar) have two (2) Filipino animators involved with them.

There were even other two (2) that have done a significant work in mainstream Hollywood, according to Ricky Orellana, festival director of ANIMAHENASYON. [2] If these Filipino animators have given these foreign companies great contribution, what more if they do it for their own country? Since, local artists have been working for others, their works are not evidently recognized. There is nothing to doubt that Pinoy animators were the people that created the cartoons produced by the foreign production houses. However, much of a concern, when will they be given the spotlight they rightfully deserve? “TOEI has been encouraging their employed Filipino artists to develop their own unique characters and series than just being contented supporting projects from other parts of the world”, says Montano. As added by Palabrica, TOEI’s Japanese principal was the one who encouraged them. In addition, after 20 years, starting to recognize the talents of Filipino animators, many investors came and began to build up animation schools for people who have the potential in animation, for the purpose which Philippines could now compete from Hollywood and other American production outfits. According to Boncan, they have written virtual motion capture and computer puppetry to compete for major projects. ACPI has also encouraged him to build up schools for college graduates to help draw out new talents before venturing into studio work, he added. Currently, there are 14 animation schools operating in the country which are all around Metro Manila. According to the

ACPI president Grace Dimaranan, local animation industry has seen more activities leading to the production of original content [5]. Philippine Animation Industry has finally produced their own original content, Dayo produced by the Cutting Edge Productions (Ball, 2008). The animated film is directed by Robert Quilao, which is about a boy named Bubuy who must rescue his grandparents that were kidnapped. His quest will lead him to Elementalia, a strange land where weird creatures live. This was not the first attempt to create a full-length animated movie. In fact, according to Boncan, they had contracts to produce sequences of a locally produced full-length feature called Diwa. Cutting Edge, which is a member of the ACPI, said that like US, Europe, and other Asian countries, there has also been recognition in doing original works. V. UPCOMMING CHALLENGES Though the Philippines has positioned itself in the animation industry specifically as an outsourced business, the country is slowly losing its edge to be a competitive destination given that near-by competitors are constantly improving their services. The following are some potential threats that the industry must address to keep the country in its current position. One of which is the lack of large animation companies capable of fulfilling the needs of international clients. The industry is comprise and fragmented into small and medium scale companies that address individual work without thinking of the collective status of the industry. Second, infrastructure investment and acquisition of new animation software and technology must also be given priority as Asian

competitors significantly develop in order to attract local and foreign investors. The industry is also challenged to constantly develop the pool local talents and ample training must be given in order for them to attain the most relevant and up-to-date animation skills. Lastly, the government must support the industry by means of implementing policies like tax incentives, Intellectual Property regulation to sustain an environment that would probably gain investment which will aid the country to achieve economic growth through revenues.[6] VI. CONCLUSION Given the increasing demand in animation as an outsourced service, the Philippines share a great part in the current need of the market globally. Furthermore, having an established reputation for producing quality outputs and abundant creative Filipino talents, it is undeniably true that the Philippines is globally competitive particularly in giving animated outsourced work to foreign countries. However, if the Philippines’ animation industry continuous to remain stagnant, its share in the global market might be captured by other near-by competitors as these regional countries constantly develop in a much greater rate than the Philippines and talented Filipino animators might rely on the opportunities offered by foreign nations. Filipino animators must also be given great opportunities for local animators will continue to seek higher paying jobs outside the country. More importantly, competitors are rapidly and constantly seek to improve their infrastructure, aligning technology

along with the industry and addressing customer requirements to meet the current global market demand. To be truly competitive on a global scale and to attain an established animation industry, the Philippines must ensure that the technology infrastructure is constantly improved at the same pace unto how technology is developing, which obviously requires funding. Also, the government must ensure that animation schools should set animation education standards to prepare students for the next generation animation. They should also train students using stateof-the-art animation software that is capable of handling and processing datas to meet client’s requirements and satisfaction.

REFERENCES: [1] A.R. Dela Cruz (2006). Animation Artists, the country’s pool of creative workers feed the animation industry. Retrieved from: http://www.philippinebusiness.com.ph/archi ves/magazine/vol9-2002/93/industry_p2.htm on March 11, 2009. [2] Animation Council of the Philippines (2009). ANIMATE THIS ANIMAHENSAYON 2007 highlights original Pinoy animation. Retrieved from: http://www.animationcouncil.org/news.php? p=82 on March 11, 2009. [3] V.Cabreza (2008). Animators form ‘holy alliance’. Retrieved from: http://www.animationcouncil.org/news.php? p=106 on March 11, 2009. [4] R. Ball (2008). Dayo Springs from Philippines. Retrieved from: http://www.animationcouncil.org/news.php? p=105 on March 11, 2009. [5]E. Oliva (2008). RP Animators producing more original content. Retrieved from: http://www.animationcouncil.org/news.php? p=88 on March 11, 2009.

[6] Tholons (2008). The Philippine Animation Industry Landscape. Retrieved from: www.tholons.com on March 11, 2009. [7] Bangstad,K (2006). Animation School

Review. Retrieved from: http://www.animationschoolreview.com/sket ches/2006/03/philippines-working-tomaintain-lucrative-animation-industry.html [8]http://animationcouncil.org/news.php?p=82 [8]http://www.yehey.com/lifestyle/Print.aspx?i= 16300 [9]http://www.philippinenews.com/article.php?i d=3112