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Greetings Vitrina Community,

Welcome to an insightful conversation with Mr. Jayakumar P., CEO of Toonz Media. Join us as we explore the dynamic world of animation and media production, highlighting the remarkable journey of Toonz Media and its expansive global footprint.

Jayakumar: Thank you for having me. Toonz Media has a rich history of innovation and growth. Founded in 1999, we started as a small animation studio in India. Our early milestones include creating India’s first animated television series and feature film, which set the stage for the country’s animation industry. We pioneered India’s first international co-productions and have since expanded our footprint globally. Over the years, Toonz Media has evolved from a service provider to a major player in global animation and media production. Our expansion into co-productions with major studios like Marvel and Paramount has solidified our position as a leading animation studio. We’ve built a robust infrastructure and a talented team that drives our success across diverse markets.

Jayakumar: Absolutely. Toonz Media is actively engaged in several key areas and partnerships, particularly in the US market. Our collaborations include high-profile projects such as “Finley the Fire Truck” with Hallmark, which involves extensive animation and character development. “Dragonlands,” a co-production with Paramount Pictures, showcases our expertise in creating immersive worlds and engaging storylines. Our work on “Wolverine and X-Men” with Marvel Studios reflects our capability in handling complex character designs and action sequences.

Currently, we are also developing an exciting new show, “Sunicorn,” in partnership with Sunicorn International. This project emphasizes our ability to innovate and adapt to evolving content trends. Our US partnerships are crucial as they provide significant opportunities for creative collaboration and expand our reach in the global market. These collaborations not only enhance our portfolio but also position Toonz as a preferred partner for international media and entertainment projects.

Jayakumar: Toonz Media is embracing technological advancements and shifting content consumption patterns to adapt our business model. We are focusing on leveraging data-driven strategies and AI tools to optimize our production processes. This includes using analytics to better understand viewer preferences and streamline our workflows to reduce production costs and time. For instance, we have incorporated AI tools in animation production to automate repetitive tasks, which speeds up the process and enhances efficiency.

Our market focus is also shifting towards emerging sectors like educational content and interactive media. The rise of technologies such as AR/VR and the metaverse has opened new avenues for animation, allowing us to explore applications beyond traditional entertainment. We are investing in these areas to create innovative content that meets the needs of modern audiences. Additionally, our strategic expansion into markets like the Middle East, Latin America, and Africa reflects our commitment to capturing growth opportunities in diverse regions.

Jayakumar: Besides our established markets, Toonz Media is exploring several new territories. We are particularly interested in expanding into CIS territories, Korea, and India. The CIS region presents opportunities due to its growing media industry and demand for high-quality animation content. Korea, with its strong entertainment sector and technological advancements, is another key focus. In India, despite being our home market, there is still significant growth potential as the animation industry continues to mature and attract investment.

Additionally, we are closely monitoring developments in the Middle East, especially Saudi Arabia, which has shown increased investment in media and entertainment. The region’s focus on cultural and entertainment projects aligns with our strategic goals, making it an attractive market for expansion.

Jayakumar: India’s new tax incentives for animation and media are having a substantial impact on our business strategy. The government has introduced tax credits of up to 40% for animation, visual effects, and live-action projects. This includes incentives for both service work and co-productions. For example, if we undertake a project that qualifies for these credits, we can recover about 25% of the money spent in India through these incentives.

These tax benefits significantly lower the cost of production and enhance the attractiveness of India as a destination for global projects. Our dedicated teams work closely with local governments to ensure that we fully leverage these incentives. We have also established strong relationships with various stakeholders to navigate the complexities of these benefits efficiently. This support not only makes our projects more cost-effective but also reinforces our commitment to investing in the Indian market and contributing to its growth.

Jayakumar: We are particularly excited about developing branded IPs for both feature films and TV series. Our current projects, ‘Paddy Paws’ and ‘Super Brecken,’ have strong market potential. We seek co-production partners for high-profile IPs with established fan bases or franchise potential, such as book franchises, film adaptations, or game-based properties. Collaborating on these IPs allows us to leverage our animation expertise while tapping into established audiences.

Jayakumar: Despite the challenges of 2023, we are optimistic about 2024. The media and entertainment landscape is evolving rapidly, and we are positioning ourselves to capitalize on these changes. Our focus on emerging markets, technological advancements, and strategic partnerships gives us a strong foundation for growth. We are committed to adapting to market trends and continuing to innovate in our production processes. Our goal is to remain agile and responsive to industry shifts, ensuring that we not only meet but exceed the expectations of our global partners and audiences.