CATDOLL: The development path of domestic animation: the industry chain is gradually improving and the works are no longer childish

In the past two years, the domestic animation industry has developed by leaps and bounds, with the success of "The Monkey King", the investment led by Alpha Animation, and the increase in the number of non-child animation works. Many animated films continue to gain market recognition. Let's take a look at the development of domestic animation.

According to iResearch data, in 2015, the number of core ACG users reached 59.39 million, while the number of general ACG users reached 160 million, with a total number of nearly 219 million, covering 62.9% of those born in the 1990s and 2000s. In the future, the number of core ACG users will grow steadily, while the IP (intellectual property) operation of animation will become increasingly prominent, and the number of general ACG users will continue to increase. By 2017, the number of core ACG users in China will exceed 80 million, and the total number of ACG users will exceed 300 million. In 2015, the coverage rate of domestic animation exceeded 40%, surpassing Japanese animation for the first time.

After the baptism of the whole year of 2015, people's views on the "non-mainstream" and "incomprehensible" two-dimensional world have gradually changed. Young, lively, post-90s, post-95s, purchasing power, huge consumption potential, these words have become the new labels of the two-dimensional world. Today's two-dimensional works are no longer low-age and marginalized content. As the younger generation grows up, the two-dimensional world is gradually becoming an indispensable cultural factor in the three-dimensional world. The two-dimensional world has long been inseparable from the public, the capital market, and the Internet.

The rise of two-dimensional content: animation is no longer just for children

In the past, when Chinese animation was mentioned, most people would think it was exclusive to children, but today, the animation market has undergone tremendous changes. Data shows that since 2010, the output of TV animation has been gradually decreasing, and the number of completed works in 2014 was even less than half of that in 2010. At the same time, the output of online animation has greatly increased, and the proportion of animation viewers over 18 years old has increased rapidly.

Last year, Alpha Animation and Culture acquired YouYaoQi for RMB 900 million. This company, which was considered by the outside world to only produce the "Pleasant Goat" series of low-level cartoon characters, has become a force that cannot be ignored in the field of youth animation. Last summer, "The Return of the Great Sage" was a great success, and the Central Propaganda Department also stated that it would change the low-level positioning of cartoons. In the future market, the proportion of works for young audiences will decrease, and the proportion of works for young audiences will increase.

The transition from young children to young adults is not just a difference in age. There are also big differences in consumption levels and consumption directions. As time goes by, young users are bound to become the main consumer group in society and the disseminators of mainstream culture. A huge consumer market has already taken shape.

From the second dimension to the third dimension: the commercial value of the entire animation industry chain is gradually emerging

Now that we have foreseen a huge consumer market, how to open up the market and allow the two-dimensional culture to generate real commercial value and directly enter the three-dimensional real world has become an urgent issue to consider. Peripheral products, film and game linkage, and online drama development are all effective ways to realize commercial value.

Peripheral products include customized USB flash drives, mobile power supplies, headphones, plush toys, etc. The operating profit margin is also more considerable than that of ordinary goods. The derivatives of the two-dimensional culture often come with corresponding cultural premiums, which makes fans willing to pay more money for them.

It is worth noting that peripheral products are not simply customized by grabbing elements from animation. Successful peripheral development often requires involvement from the setting of animation characters. A senior animation producer of Kaku Animation told reporters that the design of peripherals should be closely integrated with animation, and the function, shape, and purpose need to be deeply considered, rather than simply printing an animation image on the product.

In addition to peripheral products, film-game linkage is also an important part of the development of the entire IP industry chain. In early 2015, Ledo Games cooperated with Bilibili (Bilibili Danmu Video Network) to release the two-dimensional mythology RPG mobile game "Yoyo World Tree". In 2015, manufacturers such as NetEase, Linekong, and Palm have also entered the sub-segment of two-dimensional mobile games, launching games including "Discordant Million Arthur", "One Hundred Thousand Bad Jokes", and "The Bad Guys".

In fact, in addition to watching anime and animation, the biggest hobby of 2D users is games. Compared with other players, 2D users play games for a relatively long time and are medium-to-heavy gamers. Their desire and ability to pay are also stronger than other types of players. According to statistics, 2D users are more willing to pay in advance to get a better and more balanced gaming experience. At the same time, appearance and collection control are also two major needs. Nearly 40% of users are willing to buy genuine games, and 30% of users will spend money on the appearance and props in the game.

The same situation occurs in online dramas. From the published list, it is not difficult to find that at least 9 high-quality IP two-dimensional works will be adapted into online dramas in 2016, including "Black and White Warriors", "Tiger Crane", "Genius J", "Painting Rivers and Lakes: The Bad Guys" and so on.

The commercial development of the two-dimensional world is in full swing, but we have to sound the alarm that all development based on the two-dimensional world is based on high-quality two-dimensional IPs. Like other types of IPs, high-quality IPs need to have a complete business model, lasting influence, and an image that can be quickly recognized by the audience. Industry insiders told reporters that it takes at least two to three years to develop a high-quality two-dimensional IP. "The domestic two-dimensional market obviously does not have that much patience. Many two-dimensional IPs that are still being serialized are eagerly taken in by capital and started to be developed. This approach is extremely short-sighted."

Attack on the second dimension: Giants and investors will never let it go

With the popularity of the ACG industry, there is no shortage of investment that comes with risk. In 2014, there were 49 ACG-related investment events with a total amount of 5.064 million yuan. By 2015, there were nearly 100 related financing projects, and the scale of financing had already exceeded 100 million yuan.

In August last year, the barrage video website AcFun received US$50 million in Series A financing from Youku Tudou; YouYaoQi was acquired by Aofei; Guangguang established CaiTiaoWu... Obviously, the two-dimensional world has been involved in the world of giants.

Tencent, Alibaba, Baidu, Youku Tudou, iQiyi, NetEase, Sina, Aofei, Guangguang, Huayi, LeTV, Xinghui Tiantuo, Kunlun, Blueport, etc., have all joined the battle either personally or as LPs of a fund focusing on the pan-entertainment field. These giants have made layouts in the content, platform, and consumer aspects of the two-dimensional world.

The entry of giants will undoubtedly accelerate the reshuffle of the industry, but it can also help the two-dimensional industry to make a difference in combating piracy. In 2015, many companies introduced legitimate resources of foreign animation to build their own "two-dimensional" platforms to attract young people. For these companies that have invested heavily, they naturally do not want piracy to infringe on their legitimate rights and interests. At the end of 2015, the domestic large-scale light novel content platform Light Kingdom was shut down, and relevant personnel were arrested. The two major BT websites, Manyou and Anime Garden, were closed. It has to be said that the industry's attention is indeed promoting the domestic animation industry to gradually move towards the "genuine" era.

China's ACG industry is still not perfect in many aspects. There is a lack of a classification system for art consumer products, relevant laws and regulations are not yet perfect, and the review is not transparent. These potential problems pose huge challenges to the long-term development of China's ACG industry.