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Discusses revenue generation.... More...
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Paper Abstract: Discusses revenue generation. Classification of the industry. Cartoon animation as a sub-component of motion picture and video production. Comparative revenue data for animated children's cartoon entertainment market. Annual revenues. Global distribution and projected growth rate. Revenue sources such as TV rights, cinema, video and DVD, merchandising, publishing, multimedia and music. 3 Charts.
Paper Introduction: REVENUE GENERATION IN THE ANIMATED CARTOON ENTERTAINMENT MARKET
Introduction
This research develops information relevant to revenue generation in the animated cartoon entertainment market. Within this market area, the focus is on the child audience — ages four-to-16 years old.
Identifying the Industry
Among the standard industrial classifications, there is no separate designation for cartoon animation. The North American Industrial Classification System (NAICS), developed within the framework of the North American Free Trade Agreement (NAFTA) replaced the Standard Industrial Classification (SIC) system in the United States in 1997. Within the NAICS structure, cartoon animation is a sub-component of NAICS 51211 — Motion Picture and Vi
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Chart 2 on the following page presents the distribution of theanimated cartoon entertainment market for children on a global basis. Theprojected growth rate in the markets in the United States and Japan is nine-percent per annum (Screen digest, 2 1). United States Department of Commerce. (2 1). revenue generation in the animated cartoon entertainment market Introduction This research develops information relevant to revenue generation inthe animated cartoon entertainment market. Animatedcartoons accounted for $752.2 million of this total, or 35.1 percent of the$2.143 global animated cartoon market (Screen Digest, 2 1). (2 2, April 5). London,England: Screen digest, Limited. The focus in this research is on the cartoon animation market withinthe NAICS 51211 framework. Within the NAICSstructure, cartoon animation is a sub-component of NAICS 51211 - MotionPicture and Video Production. The publication Animation: the Challenge for Investorssells for $2,595 for the electronic copy and $1,295 for the hard copy. The largest revenuesource, however, is the sale of television rights to the animated cartoons. The North American IndustrialClassification System (NAICS), developed within the framework of the NorthAmerican Free Trade Agreement (NAFTA) replaced the Standard IndustrialClassification (SIC) system in the United States in 1997. Advance datafrom the quarterly financial report - fourth quarter 2 1 for U.S.manufacturing, mining, and trading corporations. Computer gamedevelopment is not a component or sub-component of NAICS 51211. The related sectors group accounts for 5 percent of totalrevenues. Revenues derive from a variety of sources. Within this market area, thefocus is on the child audience - ages four-to-16 years old. Rather,computer game development is a component of the computer software industry,and digital character animation is a sub-component of computer gamedevelopment. Developing the Revenue Structure Chart 1 on the following page provides comparative revenue data forthe Motion Picture and Video Production (NAICS 51211), of which animatedfilm production and cartoon animation are parts, and other selectedindustries. Revenues reflect productionwithin the United States (as an example, Automotive Manufacture does notinclude foreign manufactured vehicles). Chart 2 Animated Cartoon Market: Global Distribution[pic] Source: Screen Digest, 2 1 The projected growth rate for the animated cartoon entertainmentmarket for children is eight-percent per annum on a global basis. The United States market (35.1percent of the global total) is larger than the combined market of WesternEuropean countries. Chart 3 Animated Cartoon Market: Revenue Sources[pic] Source: Screen Digest, 2 1 Conclusion Complete information on the animated cartoon market is available fromScreen Digest, Ltd. The components of NAICS 51211 are asfollows: > Animated film production > Commercials, television, production > Instructional video production > Motion picture production > Motion picture studios, producing motion pictures > Music video production > Programs producing, television > Television show production Cartoon animation is a sub-component of the animated film productioncomponent. Animated Cartoon Entertainment Market Revenues As stated earlier in this research, cartoon animation is a sub-component of the animated film production component of the Motion Pictureand Video Production industry. Chart 3 (on the following page) presents a breakdown of revenue sources ona global basis. Table 1 [below Chart 1] provides numerical revenue data.[pic]|Table 1 - Annual Revenues for Selected Industries ||Industry |Revenues [$ = billions] | ||Aerospace Manufacture |175.7 |** ||Agriculture [Farm Income] |237.1 |* ||Apparel |92.5 |** ||Automotive Manufacture |52 .1 |** ||Computer Hardware |479.8 |** ||Computer Software |88.1 |* ||Food [Processed, Manufactured] |336.7 |** ||Furniture |58.3 |** ||Gambling |982.1 |* ||Health Care |18.8 |* ||MOTION PICTURE & VIDEO PRODUCTION |4 .1 |* ||Sports [Spectator] |17.4 |* ||* 2 data ||** 2 1 data ||Sources: US Department of Commerce, 2 2, 2 1 | The comparison data provide the reader with a contextual basis for theevaluation of cartoon animation revenues. It is necessary, therefore, to develop information fromunofficial sources. As indicated in Table 1, the total revenuesfor the industry in the United States in 2 were $4 .1 billion. Washington, D.C.: United States Government Printing Office. Service annualsurvey: 2 . Because neither animated film production orcartoon animation is a unique NAICS designation, however, governmentagencies do not maintain and issue industry-level reports for thesemarkets. (2 1, December). References Screen Digest. The Japanese market (with a population less than halfof that in the United States) has an animated cartoon entertainment marketfor children the size of which is 58.7 percent of the United States marketin terms of revenues. Identifying the Industry Among the standard industrial classifications, there is no separatedesignation for cartoon animation. United States Department of Commerce. Animation: The challenge for investors. United States Departmentof Commerce News, 1-6. The development of computer electronic games alsoinvolves the digital animation of cartoon-type characters. Thus, merchandising (product licensing, and so forth), whichaccounts for 39 percent of the related sector revenues, represents 19.5percent of total revenues on a global basis. Within this context, cartoon animation may be either hand ordigitally developed. Inthe chart, the North American segment includes the United States, Canada,Mexico, and the Caribbean island states.
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