2008-12-31

Can low-cost cartoons be money-making?

"The prior problem the animation industry now faces is how to gain profits, which \'The Panda\'s Paradise\' has solved and set itself an example as profitable low-cost cartoon." Wang Lei, deputy director of the SMG drama movie center and vice president of Toonmax TV said while commenting on its feature. The cartoon has 365 episodes in all, and each lasts for 15 minutes. It is the first cartoon on Chinese Mainland to be telecast and produced at the same time and also is the first with built-in ads. It is co-produced by SMG and Beijing China Cartoon Century Company and produced by Chang Chun MingNuo Cartoon Company. Different from other cartoons, it not only telecasts the sitcom but also adds a kickoff classroom. In this classroom, Zheng Yuanjie, a famous writer for children who is also the literary advisor for the cartoon, will select cartoon works with his students. They will design the plots by interacting with each other, thus making it possible to telecast and produce "The Panda\'s Paradise" at the same time. According to the producer with SMG, each episode of the cartoon costs 3000 RMB, which is 1/3 of the average cost of mainland cartoons.

Professional Resource Integrator

Shortly after Li Ruigang became the president of SMG in 2003, he put forward the strategy of "Dual Changes". That is the change from production for broadcast to production for market and the change of the role as a local media organization to a broadcaster and program supplier to the whole nation or even Chinese world abroad. Likewise, SMG also intends to make a complete animation industry chain by integrating overall resources. It is in such a background that "The Panda\'s Paradise" is produced. Wang Lei said: "We don\'t have specific producers and screenwriters in our company. SMG is a professional resource integrator but not an authorized brand agency. "
SMG began producing and investing in local Chinese cartoons in 2002 and now the cartoons it has invested accumulate to 23,000 minutes. Compared to the cartoons before, "The Panda\'s Paradise" put marketing as a prior task. As Wang Lei has put it: "Whether an idea can be put into production doesn\'t lies in the creation by the author only but in integrating all resources for market investigation. SMG is now more and more conscious of this." Before "The Panda\'s Paradise" is put into production, SMG has sent broadcasters questionnaires designated for the interest in buying the cartoon. The questionnaire includes four cartoon images and 30-word captions. Meanwhile, SMG established a committee composed of companies in the field of audio-visual production, publisher, toy-making, beverage and clothes to discuss the prospect of the cartoon. After the sample was made, SMG organized students to watch in groups and adopted suggestions from them. "The Panda\'s Paradise" was telecast 3 samples of episodes from May the 1st to 3rd. Audience said that "humor" is the highlight of all attracting elements. Of course, this element will be amplified in the future.

Market for Children Consumers

"The Panda\'s Paradise" is said to be telecast on Toonmax TV in July 2008. A month later, it will be telecast again in other provincial TVs and provincial cities. The third round of telecast will be in September on 100 municipal TVs. This kind of consecutive and cover-all-area telecast will be the first step for audience to recognize the brand. Chinese local cartoons attract few advertisers and audience, which lead to low-price when stations purchase them, many of which is even telecast for free with some ads on.
"The Panda\'s Paradise" is priced at 100 RMB per minute. Obviously, it is impossible to gain profitonly by selling. The market for children consumers is the destination for it to break even.
As many companies join in the web game Second Life, built-in ads are found to have more media space. To extend this notion, "The Panda\'s Paradise" story scene "Tong Qian Town" also tries to provide platforms for companies for ads.

Sure to Gain

The Disney mode undoubtedly shows us the large market space of cartoon by-products. However, local cartoon images have been unattractive for long and there is almost no successful example of brand marketing, which makes local market for cartoon by-products undeveloped. In fact, the top brands at the same time don\'t need cartoons to appreciate.
Companies authorized by "The Panda\'s Paradise" cover the area of food, beverage, ice cream, dairy products and etc. However, most of the partners are secondary-level brands which require fast consumption. They are not willing to spend a lot on the image for the package. An average purchase of an image thus is hundreds of thousands RMB, as a result, quantity is the crucial point to gain more profits.
The Century Cartoon Company, established in 2005 recognizes itself as the first operator of cartoon brands, devotes itself to integrating resources of good cartoon brand both at home and abroad. The vice president of the company, Zhang Li told "Zongyi Weekly" that the first step to gain profits is the built-in ads of several large companies. After it is telecast on a larger scale, the main channel will be authorizing. "At present, \'The Panda\'s paradise\' has got book and audio-visual copyright of several million RMB. With built-in ads of millions from some companies, the first 180 episodes are impossible to lose money. The cartoon is sure to gain. "

To set an example of money-making

Since May 1st, the national policy regulates that overseas cartoon related programs can\'t be telecast between 5pm to 9pm which in the past was from 5pm to 8pm. This boosts promoting Chinese local cartoons; however, it can only benefit the local cartoon industry contemporarily if there are no good ones to telecast.

The essence is to raise the quality of the works and establish efficient and clear commercial patterns.

On the other hand, as a booming industry which is predicted to have a market space of one hundred billion RMB, animation industry can always bring unlimited imagination. By October 2007, Chinese Mainland has more than 30 animation industry parks and more than 5400 animation production organizations. The yearly output of mainland cartoons in 2007 has reached 186, which lasts 100,000 minutes in total. Nevertheless, behind the increasing number, the whole industry is still losing money. Cartoons of high quality, profit, and originality are the rarities of the rare. As a result, besides exploring more ways of management; Chinese local cartoons should think profoundly how to reduce production cost without damaging the quality of the work. It\'s the way to survive.

Like a TV series, a good cartoon depends on its story. Wang Lei said that SMG hopes to achieve three goals through "The Panda\'s Paradise". The first is to establish an industry alliance. The second is to assert the crucial importance of story innovation and industry marketing during the course of cartoon production. The last but not least is to set an example of money-making cartoon.