How animation has blurred boundaries

With studios aiming big at international markets and producing stories with cultural significance, the industry is set to shine bright this decade, writes Taher Ahmed

Animated movies are, perhaps, the most loved genre of movies across the world. They have something to offer to everyone, right from kids to parents to grandparents. It is no wonder then that the animation industry is rapidly growing, with a valuation of approximately $370 billion as of 2021, with the valuation expected to cross the $500 billion mark by 2030.

While traditional movies have mostly been identified based on the audience they cater to or their origin (Hollywood and Bollywood), the animation industry has been blurring these boundaries, impressing global audiences.

Among the recent films, ‘Raya and the Last Dragon’ raked in over $118 million globally while ‘Abominable’ collected over $180 million. Animation is still a niche market but then how are the movies earning millions worldwide?

Financial logic

Making an animated movie is no easy task, with the budget running into hundreds of millions in most cases (‘Frozen 2’ was made on a budget of approximately $150 million). One might think that the US market is the biggest one for animated movies, and while this holds true to an extent, most big-ticket animated movies earn more internationally than their domestic US earnings.

‘Frozen 2’ raked in a whopping $1.45 billion overall, with the international markets contributing to over double the earnings compared to its performance in the local US
market. Thus this advantage in the international market gives studios the confidence to produce films of diverse content.

Content is king

While star power rules in traditional commercial movies, animated films work differently. Sure, we do have big stars voicing characters (Tom Hanks as Woody in ‘Toy Story’, Cameron Diaz as Princess Fiona in ‘Shrek’, or closer home, Shah Rukh Khan as Mufasa in ‘The Lion King’). But we aren’t pulled in by their names alone.

For the animated industry, storyline is everything. Perhaps, this is the reason why we see more local adaptations and universal storylines.

The popular perception is that the US is the hub for animation movies, given the big-ticket production houses. However, there are several local studios which are competing for space in the market. They have strong stories which can give the biggies such as Walt Disney, DreamWorks, and Pixar a run for their money. The ‘Kung Fu Panda’ series was the most profitable big-ticket movie in the last decade or so which focussed on regional influences in the storyline. More stories with cultural significance have come to the fore. Be it ‘Encanto’ (2021), ‘Coco’ (2017), ‘Raya and the Last Dragon’ (2021), ‘Moana’ (2016), ‘Luca’ (2021), or ‘Abominable’ (2019), we have seen a significant increase in the depiction of regional culture and folklore in the plots.

This approach works because folklore has always been a major part of our childhood and a number of us have grown up listening to various stories surrounding legends. It is no surprise then that movies based on local culture have managed to do well not only in that particular region but also in other regions. ‘Coco’ went on to become the highest-grossing movie in Mexico (of all time) and is ranked among the top-earning animated movies of this decade. Studios are willing to take calculated risks on such stories, knowing well that they will find an audience. Additionally, loyalty to a studio can lead to more financial rewards in the future. The future is definitely bright for the animation industry.

(The author has worked in the animation industry and is currently a consultant in Bengaluru).