PHILIPPINE ANIMATION AND LOCAL ARTISTS

Local literature showed that Philippine Animation owed its beginnings to the
cartoonists. Cartoons are generally popular in the form of komiks which is the
local version of comic book magazines. Examples of popular cartoonists
include: Tonton Young who created Pupung, Pol Medina Jr. who created Pugad
Baboy, Larry Alcala the creator of the Philippines most loved komiks
characters including Mang Ambo, Asiong Aksaya, Kalabog en Bosyo and the
popular Slice of Life --- as well as over 500 cartoons and cartoon characters
all reflecting the foibles of Philippine society.
Filipino animators are now finding opportunities abroad on big animated
projects.
As an example, Ronnie Del Carmen, a Filipino animator, is billed as artistic
supervisor for the latest project of Dreamworks Studios in Los Angeles,
California. His latest works include The Prince of Egypt, and The Road to El
Dorado
In the Philippines, animation has finally found its way. Inspired by the high
degrees of sophistication emitted by other countries, Filipino artists decided
to try their luck in the art. Years of hardships and disappointments never
dampened the spirits of our hardworking animators. In 1950, Jerry Navarro,
Larry Alcala, Vicente Penetrante and Jose Zabala Santos, tried their luck in
animation. But due to financial problems, these young and budding
animators had to work with the crudest of equipment.
Through the years, one or more artists would try to nurture their knowledge
of animation only to be blocked by the usual financial constraints.
Meanwhile, anime or Japanese animation has long been a very popular
subgenre of Philippine pop culture since the late 1960s and the whole of the
1970s when Filipino audiences were first exposed to the charms of Japanese
animation by way of such classics as Speed Racer, Gigantor, Astroboy, and a
number of others. The fanbase began to gain sway during the giant robot era
of the 1970s when fans of Voltes V and Mazinger Z actually went into the
production of fanzines, translated comic books, and model kits. Despite
having been outlawed during the Marcos regime, many examples of fan
merchandise from this era have survived even to this day.
Though the 1980s were characterized by a somewhat lukewarm response to
Studio Nues Macross, the mass market interest in Japanese pop culture
(referred to as J-pop, a term that encompasses everything from pulp fiction
to pop music and animation) was revived by both the vernacular dubbing of
anime for Philippine television.
In 1983, an Australian company established a branch known as Burbank
Animation, Inc. (BAI). Aside from this, another company, which is known as
Asian Animation, was then called Optifex International, Inc. Unlike Burbank
Animation, Inc. which is a foreign owned company, Optifex Animation, Inc. is
a Filipino owned corporation. Through the years, these companies worked
with utmost dedication for the improvement of the animation industry in the
Philippines.

Burbank Animation, Inc. and Asian animation, Inc. were joined by another big
company, Fil-Cartoons, which was established in 1988. These companies,
although they have the same purpose did not yet form an association.
However, they all have done their share in the industry, such as helping train
aspiring animators, producing animated films in the country. However, most
of the products of these companies have been made for export reasons.
Each company has a contract with various international animation
companies.
The animation industry in the Philippines is considered as one which
progressing and developing. Had it not been for financial constraints, they
would have produced more animated materials for Filipino viewership and
usage. Local anime, on the other hand, has now developed into a fan base
on the Internet in the mid-90s.
At present, based on a local internet source, the Philippines reportedly
accounts for a 30% share of animation work in the Asia Pacific, and it is
projected that this could grow to 70% or more with professional training.
Local and Global Scenario
In the 1980s, the animation industry in the Philippines was limited to
producing entry to mid-level skill service. Projects were limited to traditional
hand-drawn animation including penciling, inking, and painting. Work was
sent via FedEx and courier, and thus, the amount of work outsourced to the
country was limited. The 90s were considered the Golden Age of
Animation; skills were not limited to entry to mid-level as Filipino animators
began working on TV series and feature films. This increased the skill set and
broadened the range of Filipino animators. The advent of the Internet also
allowed for a more efficient way of sending work as sending output via
courier began to decrease. In 2000 onwards, the Animation landscape
continued to change, and Filipino animators have gone from entry level to
doing higher function and more complicated work. Filipino animators
currently have the ability to provide services from pre-production to postproduction.
With a long-standing history in animation services and a strong cultural
affinity with Western countries, US companies specifically, have long
preferred the Philippines as an outsourcing destination when it comes to
animation. The country is considered to have a first mover advantage in the
Asian region. Filipino animators have worked on popular cartoons and
animated films such as: Adams Family, Captain Planet, Dragon Ball Z,
Finding Nemo, The Incredibles, The Jetsons, The Mask, Scooby Doo, and Tom
& Jerry. Entertainment companies such as Hanna Barbera, Marvel Comics,
Walt Disney, and Warner Brothers has outsourced many projects to
Philippine-based animation companies. Animation outsourcing also applies to
creating graphics for the video game industry, an industry that was valued at
US$ 25.1 billion in 2010.Filipino animators have worked on games for the

following gaming platforms: Nintendo, Sega, Game Boy, and Sony

Playstation.
Despite being one of the first countries in the region to provide animation
services, the Philippines has a small market share compared to its
competitors: China, India, Singapore, and South Korea. Service exports in
animation outsourcing provide to the following major markets: US, Europe,
Japan, and Australia.

Philippine Animation Industry

Number of Firms
According to the Animation Council of the Philippines, Inc. (ACPI), the number
of animation firms in the Philippines has steadily increased from 1980 to the
present. The Global Economic Crisis, the growing quality of labor force in
developing countries like the Philippines and India, and factors including
labor arbitrage and cost leverage, all contribute to the growth of outsourcing.
Figure 1 shows the growth in terms of number of animation companies
operating in the Philippines from 1980 to 2011.5 It is important to note that
over the years, the trend shows an increase in locally owned animation
companies compared to virtually all foreign-owned animation companies in
the 1980s.

Number of Animation Firms in the Philippines (1980-2011)

INDUSTRY ASSOCIATIONS

The Animation Council of the Philippines is a local association of

animation studios bonding themselves with the purpose of consolidating
their efforts to promote the local animation industry. AnimeExplosion2000
was a recent example of their accomplishment.
CAST or Cebu Animators Society for Talent is an association for the
development of talent and resources to support an animation industry in
Cebu. This cooperative society aims to build a critical mass to attract the
world animation consumer to do business here in Cebu. CAST society is a
sharing cooperative where members contribution time and product to help
others and themselves compete in the world market. CAST is a zero fee
Cooperative. Members are expected to give and take so the cooperative will
grow and reach a critical mass. It is is open to persons who are interested in
animation. There is no age limit or other requirements.
CAST is made up of two membership classes a) invested and b) noninvested.
The invested class will generally have a computer and the software to create
and edit
2D and 3D characters or objects. This class may also include people with a
marketable skills and talent such as hand drawn animators, script writers,
voice character and marketing. The non-invested is made up of persons in
training and interested individuals.
Members are expected to contribute to the cooperative animation library
with characters, objects, background stills and animation sequences. The
library is shared by all members. A contribution of one piece will make
available hundreds in return.
Members are also expected to contribute time and techniques to teach
others how to do things.
Animation takes a lot of talented people and capital to reach a critical mass.
The object of CAST is to disperse the talent and concentrate the capital. In
this manner the talent will have access to video cameras, tape recorders,
sound stages, motion capture, video editing and other equipment. Members
work will be published and sold on the world market. Members will share in
this income.
CAST will have weekly meetings to discuss member problems and difficulties.
These meetings are free of charge and members are expected to help each
other with
"How to do" questions and answers. A 24 hour computer Intranet (local only
to Cebu) is now in place for those that have a computer to discuss problems,
share objects, tips, and tutorials. Formal training classes are offered at a
discount for members
SUPPORT INSTITUTIONS
Government
The Philippine Government has been supportive of the industry and has
worked closely with ACPI to strengthen the industry and increase its global
competitiveness. The following agencies have worked with ACPI in various

initiatives to help the industry achieve its goal in furthering the Philippines as
an animation-outsourcing destination:

Department of Foreign Affairs (DFA) and Department of Trade

and Industry (DTI)
A trade agreement was signed between Canada and Philippines for
Animation Co-production; A similar agreement was also signed with
Singapore; and recently signed a Memorandum of Agreement was signed for
the Creative collaboration in Asiagraph, Japan with Asia economies
Center for International Trade Expositions and Missions (CITEM)
and DTI (Bureau Exports and Trade Promotions / BETP)
Attend international animation conferences, exhibits, and trade fairs and
provide assistance on marketing, acquiring of booths and pavilions for
animation company exhibitors;

DTI, BOI and Philippine Economic Zoning Authority (PEZA)

Signing of Memorandum of Agreement (MOA) of incoming trade investments
for the Animation sector
BOI
Supports the Capability building of the industry in terms of production
management and in-depth learning about finance;
DTI and PHILEXIM
Implement loan and investment programs for industry associations to be
used for expansion, promotions, projects and development;
National Commission for Culture and Arts (NCCA) and Film
Development Council of the Philippines (FDCP)
Promote and support original content creation for IP and branding of Filipino
Animation.
GLOBAL MARKETS SERVED
According to Tholons, the biggest markets served by the Philippines include
the US, Japan, Europe, and Australia. In 2005 and 2006, the aforementioned
markets (combined) accounted for 75% and 92% (respectively) out of the
total sales export in the Philippine animation industry.9
Economic Contribution of the Animation Industry
A study conducted by the Cultural Center of the Philippines (CCP), National
Commission for Culture and the Arts (NCCA), with the ABS-CBN, entitled
Philippine Creative Industries Mapping: Towards the Development of a
National Strategy, stated that the value of world exports of creative industry
products and services totaled 227.4 US$ billion in 1996, and has grown to
424.4 US$ billion in 2005, capturing 3.4% of world trade.
Employment and Global Market Share

In contrast to the call center sub-sector of BPO, the animation industry

employs a small fraction of the total BPO sector. In 2010, the animation
industry reported 10,000 FTEs compared to 344,000 FTEs in the contact
center industry. The nature of work in the animation industry is more
specialized, and therefore, presents a challenge in terms of providing a large
talent pool (tertiary graduates). Figure 2 shows the growth trend in
employment for the animation industry. 11

.
In 2010, the global market was estimated to have been at close to 80 US$
billion (79.7). According to ACPI, the Philippine share was 120 US$ million
(0.15% of the global market share). Considering the capability of Filipino
animators, and experience of Philippine based animation companies, the
Philippines should have a much bigger share of the global market. Figure 3
shows the total global share versus the Philippine share.

Revenue and GDP Contribution

Since 2004, the animation industry in the Philippines has seen a steady
increase. As previously mentioned, the emergence of the Internet has played
a vital role in increasing the number of output that can be sent by a

company. More importantly, connecting with employees in animation studios

in the Philippines, from the US, Europe, Japan, or Australia is much more
accessible than in the 1980s that the quality of output can be measured
more easily and corrected must faster than before. Figure 4 shows the
growth trend of revenue in the animation industry in the Philippines from
2004 to 2010.

According to the study, the contribution of creative industries to gross

domestic product (GDP) and gross national product (GNP), in less developed
countries (such as the Philippines) is typically at 5% and 7% respectively,
and can grow to 7% to 10% as countries improve their economies. Animation
accounts for only a small percentage of the creative industries and in 2008
reported 0.24% of the total Philippine exports.
According to the study: Philippine Creative Industries Mapping: Towards the
Development of a National Strategy, the contribution of creative industries to
the gross domestic product is estimated to be at 5.37% as of
2006.14Although there is no exact figure as to the share of the animation
industry in the creative industries, majority of the industries require
animation in some shape or form