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    China Business
     May 15, 2007
Page 2 of 2
China draws on cartoon cat's success
By Olivia Chung

each TV channel. Later that year, three cartoon channels were launched by Beijing, Shanghai and Hunan television stations.

Starting from last September 1, only domestic cartoons are to be aired on the cartoon channels during the prime-time slots between 5pm and 8pm every day.

These measures have triggered a rise in private investment in



animation production. The first joint venture in animation production was formed by China Film Corp, local partners and a Canadian company in 2005.

Also, domestic production of animation films and TV series last year reached 82,300 minutes, almost double that in the previous year and more than the total production in the 12-year period between 1993 and 2004.

However, this is still far behind the government's plan, which sets a target of 280,000 minutes annually for the broadcast of domestically produced cartoons and TV series.

Despite the launch of the measures to help spur the growth of domestic animation, a recent survey, including 1,000 children in Beijing and Shanghai, showed that of the 200 cartoons mentioned by name, Japanese cartoon products accounted for 50%, North American 25% and domestic 20%.

Liu Huasen, 10, who lives in Guangdong, said he prefers cartoon characters that are "cool" and humorous. However, Chinese cartoons have been criticized for focusing on education rather than entertainment.

Yang Hongwen, secretary general of the China Children's Culture and Art Foundation, attributed the focus on education to the fact that cartoons are seen as as only for children. Hollywood animated blockbusters, on the other hand, are always targeted at the whole family.

For example, Blue Cat and Mimi Sheep have a strong educational element rather than being pure entertainment; the former is designed to improve knowledge of science and technology and the latter to promote language skills.

Another major obstacle to the development of a Chinese cartoon industry is the lack of support in producing and promoting home-made cartoons.

Few Chinese cartoon firms last long enough to win an audience, as many of them have trouble recovering production costs and go bankrupt.

Wang Liuyi, board member of Hangzhou-based Sunchime Cartoon Group, the producer of Blue Cat, said that having spent more than 60 million yuan on the production, the group almost went broke in January 2001 when 15 television stations began to broadcast The Blue Cat and Naughty Mouse's 3,000 Questions.

"As cartoons, both foreign and domestic, were broadcast free on Chinese television and profits really come from the products derived from the cartoons, we got nothing even though Blue Cat was broadcast on 100 TV channels nine months later," he said.

But in June 2002, when Sunchime signed a contract with Hong Kong-listed sports- and casual-apparel maker Tack Fat International Group, which secured an exclusive license for the cartoon character, the group started making money.

So far more than 6,000 Blue Cat-related products have been exported to overseas countries and regions, including the United States, South Korea, Indonesia, Taiwan and Hong Kong, and the overseas copyright for Blue Cat has been exported to 15 countries and regions.

Disney's Lion King cost Walt Disney Studios $45 million. So far, it has made $750 million from the show itself and more than $2 billion from related products.

"Building a cartoon-related industrial chain is of great importance to China's comic and animation industry, as most of their profits are gained from the sale of related merchandise or multimedia products," said Wilson Lee, general manager of Bubble Mon Licensing (International) Co, who has been entrusted with more than 50 licensing rights originating from Japan, Korea, the United States and Hong Kong.

However, Lee said the industry is hampered by a lack of talented professionals, particularly those in business and trading industries. According to statistics, China needs 150,000 production professionals to work in the comic and animation industry. But there are only 30,000 college-trained animation and comic specialists across China, and each year animation programs turn out only 600 graduates.

Lee said rampant piracy has eroded the potentially huge profits of domestic and foreign animation producers in China. According to Sunchime's estimates, the annual value created by Blue Cat and products derived from the cartoon series should reach more than 4 billion yuan, but the company only made a profit of 100 million to 200 million yuan a year because of piracy.

"In order to stay ahead of the pirates, apart from producing related products such as stationery, toys and models, and [video discs], some comic and animation producers also turn to online gaming, as users must receive authentication from the companies before playing," he said.

Olivia Chung is a senior Asia Times Online reporter.

(Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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