A GLIMPSE ON PHILIPPINE ANIMATION INDUSTRY

Castañeda, Martin S14 Cordova, Allaine S14

prince01_prince01@yahoo.com.ph allainecordova@gmail.com

Medina, Marjorie S14 Suarez, Jed S14

madjo_11@yahoo.com jed_b_suarez@yahoo.com

Tanlimco,Kerwin s14
kerwin_tanlimco@yahoo.com

College of Computer Studies

Bachelor of Science in Information and Communications Technology Management

ABSRACT animation industry despite of its

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
competitiveness
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, Hanna-
Barbera, 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 along with the industry and addressing
attract local and foreign investors. The customer requirements to meet the current
industry is also challenged to constantly global market demand.
develop the pool local talents and ample
training must be given in order for them to To be truly competitive on a global scale
attain the most relevant and up-to-date and to attain an established animation
animation skills. Lastly, the government industry, the Philippines must ensure that
must support the industry by means of the technology infrastructure is constantly
implementing policies like tax incentives, improved at the same pace unto how
Intellectual Property regulation to sustain technology is developing, which obviously
an environment that would probably gain requires funding. Also, the government must
investment which will aid the country to ensure that animation schools should set
achieve economic growth through animation education standards to prepare
revenues.[6] students for the next generation animation.
They should also train students using state-
VI. CONCLUSION of-the-art animation software that is capable
of handling and processing datas to meet
Given the increasing demand in animation client’s requirements and satisfaction.
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
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Artists, the country’s pool of creative
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[2] Animation Council of the Philippines
(2009). ANIMATE THIS
ANIMAHENSAYON 2007 highlights
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http://www.animationcouncil.org/news.php?
p=82 on March 11, 2009.
[3] V.Cabreza (2008). Animators form ‘holy
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[6] Tholons (2008). The Philippine
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[7] Bangstad,K (2006). Animation School
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[8]http://animationcouncil.org/news.php?p=82
[8]http://www.yehey.com/lifestyle/Print.aspx?i=
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[9]http://www.philippinenews.com/article.php?i
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