Digital content industry is one of the outstanding digital industries presented by its growth rate. In the year 2020, the value of this industry was 39,332 million baht, or a growth rate of more than 27 percent compared to the same period of the previous year. The industry here was divided into three sub-sectors including animation, gaming, and character (Digital Economy Promotion Agency, 2021). However, the animation sector was the only one showing the downward trend throughout three years (2018-2020).
The value of digital content industry in Thailand (2018-2020)
Source: Digital Economy Promotion Agency, 2021.
For this article, we investigated pain points of the animation industry in Thailand and provided recommendations. We used a supply chain method to identify stages of supply chain model in the animation industry (Department of Trade Negotiations 2009), Wordpress 2011, and Ma, L., Qian, C., Liu, Z., & Zhu, Y. 2018). The animation industry supply chain could be divided into five main stages as shown in the below picture.
The animation industry supply chain
Source: Department of Trade Negotiations, 2009, Wordpress, 2011 and Ma, L., Qian, C., Liu, Z., & Zhu, Y., 2018.
Animation industry pain points along the supply chain
The research studies reveal that lack of skilled labor and distribution channels are the biggest pain points undermining the growth of the animation industry. Moreover, the spread of COVID-19 was another problem as the pandemic has an effect on people behavior by changing the way they watch animation movies.
To address such pain points, the Digital Economy Promotion Agency (depa) has initiated promotion packages for the local animation entrepreneurs as follows:
Although many problems have dragged down the growth of the Thai animation industry, there are still successful Thai animation companies against the existing obstacles. These include outstanding animation firms like the Monk Studio, Yggdrazil Group, and Igloo Studio (Right CG by LTI Group, 2019). The companies are evidence that Thailand has become quite far in animation development and there is an opportunity for growth in Thailand
For example, the Monk Studio is one of the leading animation firms and visual effect studios in Southeast Asia, having cooperation with well-known international partners such as Dreamworks Animation, Industrial Light and Magic, Lucasfilm, Alibaba Pictures, McCann Erikson, and Lowe WorldWide (The Monk Studio, 2020).
Yggdrazil, another front runner in the Thai animation industry, has proven itself in the world of visual effects (VFX), providing excellent VFX and post-production services (Yggdrazil, 2020). Animation works from this firm emphasizes a realistic style, rather than classic animation (Right CG by LTI Group, 2019).
Igloo Studio is a creative animation studio, specializing in animation production design (Igloo Studio, 2020). Their latest animation was 9 Satra, making heavy use of the computer graphic (CG) technique.
depa, as a government promoter, intend to promote and support the animation industry in the areas of capacity building and co-investment to create animation contents that can serve both local and international markets.
By Tismanun Wangrattanapakdee
Digital Investment Promotion Division
Reference:
Digital Economy Promotion Agency. (2021). โครงการสำรวจข้อมูลและประเมินสถานภาพอุตสาหกรรม ดิจิทัลคอนเทนต์ และบิ๊กดาต้า ปี 2563 คาดการณ์แนวโน้ม 3 ปี.
Department of Trade Negotiations, Ministry of Commerce. (2009). Animation and Gaming Industry. Retrieved from http://www.thaifta.com/thaifta/Home/%E0%B8%A3%E0%B8%B2%E0%B8%A2%E0%B8%87 %E0%B8%B2%E0%B8%99%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B8%A8%E0%B 8%81%E0%B8%A9%E0%B8%B2/tabid/55/ctl/Details/mid/435/ItemID/5214/Default.aspx
Department of International Trade Promotion, Ministry of Commerce. (2014). Animation Business. Retrieved from https://www.ditp.go.th/contents_attach/85958/85958.pdf
Igloo Studio. (2020). WHO WE ARE. Retrieved from http://www.igloocg.com/about/
Ma, L., Qian, C., Liu, Z., & Zhu, Y. (2018). Exploring the Innovation System of the Animation Industry: Case Study of a Chinese Company. Retrieved from https://webcache.googleusercontent.com/search?q=cache:Lj39PmkEeEQJ:https://www.mdpi .com/2071- 1050/10/9/3213/pdf+&cd=2&hl=en&ct=clnk&gl=th&client=firefox-b-d
Niracharapa, T. (2014). Competitiveness of Animation Industry: The Case of Thailand. Retrieved from http://www.elsisa.ssru.ac.th /niracharapa_to/pluginfile.php/360/mod_folder/content/0/Competitiveness%20of%20Anim ation%20Industry%20The%20Case%20ofThailand.pdf?forcedownload=1
Right CG by LTI Group. (2019). อยากสมัครงาน ตำแหน่งงานในสาย CGI มีอะไรบ้าง ? มาดูกัน. Retrieved from https://www.youtube.com/watch?v=yjUWZ3vbfKU
The Monk Studio. (2020). The Monk Studios (About Us). Retrieved from https://www.themonkstudio.com/our-story.html
True Corporation. (2019). ส่องทิศทางแอนิเมชั่นไทย โกอินเตอร์ได้อย่างไร. Retrieved from https://www.matichon.co.th/lifestyle/tech/news_1562963
Wiriyapong, N. (2006). Thailand ready to challenge Asia's animation leaders. Retrieved from https://m.mgronline.com/general/detail/9490000060358
Wordpress. (2011). Animation Value Chain. Retrieved from https://watchthinkandcomment.wordpress.com/2011/03/09/animation-value-chain/
Yggdrazil. (2020). Yggdrazil’s Story. Retrieved from http://www.ygg-cg.com/about/
