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Tag: DQ Entertainment

  • DQ Entertainment’s Method Animation gets much needed nudge

    DQ Entertainment’s Method Animation gets much needed nudge

    MUMBAI: DQ Entertainment (DQE), a leading animation, gaming, live action, entertainment production and distribution group, has announced the reorganisation of its French sister company Method Animation, in which it holds a 20 per cent equity stake. Method Animation has collaborated with Onyx Films and Chapter 2 to create ‘On Entertainment Group’ which will be the holding company for the three French subsidiary companies.

     

    With the combined portfolio that includes a huge library of titles and group revenues, the enlarged French group automatically climbs the pedestal to become one of the leading animation and film production companies in Europe. The new On Entertainment group has revenue of €34 million and an operating profit of €5.2 million. DQ Entertainment pictures will continue to hold a 20 per cent stake in Method Animation.

     

    On Entertainment is aiming to grow rapidly over the next five years for which it has even raised its investment. It will provide increased liquidity to the group and fund future productions through a fundraising of €10 million from Ohana Capital, a Canadian corporate investment fund, Gallic entrepreneur Laurent Dassault’s holding company LDRP, and AB Group, one of France’s biggest rights-brokers and the owner of 14 pay-TV channels. AB will provide minimum guarantees in future shows/TV Series, while Ohana Capital has expertise in licensing and merchandising.

     

    “The group intends to create two films per year with significant budgets that are intended for worldwide distribution,” said Chapter 2 CEO Dimitri Rassam. Method Animation CEO Aton Soumache said, “We are working on creating a catalogue of characters that can be monetised in various markets.”

     

    DQ Entertainment CEO Tapaas Charkravarti, commented: “We look forward to partnering with On entertainment on new  productions, combining the unique strengths and resources that the two groups represent.”

     

    On Entertainment’s projects for 2014 and 2015 include the feature film Paradise Lost based on the life of Pablo Escobar with Benicia DelToro and Josh Hutcherson starring in the €20 million budget film; Le Petit Prince, an animated feature film at a budget of €57 million euros has already been closed. It is directed by Mark Osborne and slated for a Global release in second half of 2015.

     

    DQ Entertainment and Method Animation have together undertaken several productions such as Le Petit Prince, Peter Pan, Prodigies, Charlie Chaplin, Le Petit Nicolas, Iron Man (a flagship series of Marvel characters) and several others at a combined production budget of about €90 million. At the same time, Robin Hood Season-1, Second season of The New Adventures of Peter Pan, English-language live­ action/animation hybrid TV Series of The Seven Dwarfs and Me, and several other famous brands are in the development.

  • DQ Entertainment reports sextuplicate half year PAT on forex gain

    DQ Entertainment reports sextuplicate half year PAT on forex gain

    BENGALURU: The Tapas Chakravarti led DQ Entertainment (International) Ltd, (DQE) reported an almost six fold increase  (up by 5.76 times) in its first half-2014 (half year ended Sept 30, 2013 – H1-2014) financial result at Rs29.4 crore as compared to the Rs 5.1 crore for the corresponding period last year, albeit the revenue reported by the company was lower.

     

    The Hyderabad based company reported foreign exchange gain of Rs 14.4 crore for Q2-2014 and Rs 18.4 crore for Q1-2014, totalling Rs 32.8 crore for H1-2014. During the corresponding period last year, the company reported a foreign exchange loss of Rs 7.98 crore.

     

    DQE reported revenue for H1-2014 of 2014 at Rs 87 crore as compared to the Rs 95.3 crore for H1-2013.

     

    Let us look at the Q2-2014 results reported by DQE

     

    The company reported a consolidated net income from operations for Q2-2014 at Rs 56.68 crore, 12 per cent lower than the Rs 64.34 crore for Q2-2013 and almost double (up by 86 per cent) the Rs 30.43 crore for Q1-2014.

     

    PAT for Q2-2014 at Rs 22.72 crore was up 60.22 per cent as compared to the Rs 14.18 crore during the corresponding period last year and more than triple (3.44 times) the PAT of Rs 6.6 crore during Q1-2014.

     

    Expenditure without accounting for forex gain/loss and transfer of expense to capital account for Q2-2014 at Rs 41.77 crore was 5.8 per cent higher than the Rs 39.48 crore for Q2-2013 and 12 per cent higher than the Rs 37.3 crore for Q1-2014.

     

    Segment Results

     

    Two segments contribute to DQE revenue – animation and distribution.

     

    Animation reported revenue of Rs.41.51 crores, 1.4 per cent lower than the Rs 42.09 crore for Q2-2013 and 50.6 per cent higher than the Rs 27.57 crore for Q1-2014. The segment reported positive result of Rs 27.32 crore for Q2-2014, more than double (2.38 times) the Rs 11.46 crore for Q2-2013 and 25.7 per cent more than the Rs 21.73 crore for Q1-2014.

     

    Distribution reported 32.6 per cent drop in revenue to Rs 15 crore in Q2-2014 as compared to the Rs 22.25 crore for Q2-2013. Distribution revenue for Q1-2014 was Rs 2.85 crore. Distribution returned positive result of Rs 9.44 crore, 40.4 per cent lower than the Rs 15.86 crore for Q2-2013. DQE’s distribution segment had returned negative figures of Rs (-1.86) crore for Q1-2014.

     

    DQE CMD and CEO Chakravarti said, “The global entertainment industry is developing at an unprecedented pace. Mobility and portability of content will, in my opinion, have a profound impact as viewers consume  programming outside their homes and want to control what they watch, when they watch, and on what device. So many opportunities are evolving and we recognise that in so far as content production is important, even more vital will be the distribution technologies that are emerging.”

     

    “Recognising and serving this need with regards to distribution technology, we have made substantial and focused progress in licensing and distribution of our Intellectual Properties not only for television broadcast, but other VOD (Video on Demand) and SVOD (Subscription Video on Demand) and OTT (Over the Top) platforms as well. Our flagship global property Jungle Book Series is on Netflix, Vudu and Hulu – the famous OTT platforms in the USA,” added Chakravarti.

     

     “New associations with leading networks and licensees globally are paving the way to monetise our IPs and co-produced content. New deals across our portfolio of properties in recent months are with best-in-class partners such as France Television, Nickelodeon, Disney Channel Productions, Sky Italia, Universal Music, Discovery Kids, Rai TV, Italy etc. The promotional deal for The Jungle Book with Burger King Worldwide has been immensely successful and will be extended for second promotion,” revealed Chakravarti.

     

     “We have successfully completed deliveries while new productions are in development. Our foray into theatrical production of ‘The Jungle Book’ is gathering momentum, and we hope to conclude announceable distribution deals in the near future. We remain confident that the global entertainment industry has excellent growth prospects, while our business remains well placed for projected growth in the current year,” concluded Chakravarti.

  • DQE turns co-producer and licenser

    DQE turns co-producer and licenser

    MUMBAI: Synonymous with producing iconic properties like The Jungle Book, Peter Pan, Lassie, The Little Prince, Charlie Chaplin and Robin Hood, DQ Entertainment is now all set to add its co-production line-up.

    Among the new titles, a CGI children’s animated series called Yonaguni will be co-produced by DQ with SeaWorld Parks & Entertainment and Rollman Entertainment, Burbank, USA. The production and distribution group will also co-produce 7 Dwarfs and Me and the second season of The New Adventures of Peter Pan, and 5 Children and It with Method Animation, France.   

    DQ sealed the deals during its second fiscal quarter ended 30 September, 2013 and at the recently concluded MIPCOM at Cannes.

    “The gross value of these co-production and licensing deals between partners is approximately Rs 2, 220 million, of which, approximately Rs 720 million is attributable to DQE and expected to be accrued as revenue over the next fiscal year ending 31 March 2015,” says DQ Entertainment CEO Tapaas Chakravarti.

    Sneak peek at the licensing deals:

    1. Discovery Children’s channel has acquired the broadcast rights for Robin Hood animated series for the Indian sub-continent.
    2. Nick India has acquired the broadcast rights for The Jungle Book season 1 & 2 for the Indian sub-continent.
    3. Nick India has acquired the broadcast rights for Suraj, The Rising Star and Galactic Football for the Indian sub-continent.
    4. Sky Italia has acquired the broadcast rights of Peter Pan season 1 for Italy.
    5. BBS has acquired the rights to produce Jungle Book party disposables and tableware for Italy, San Marino & Vatican City.
    6. Ranocchio Re has acquired the rights to produce Peter Pan Ceramic, Porcelain, Glass, Silver bi-laminate, Resin and Cardboard for the regions Italy, San Marino, Vatican City and Italian-speaking Switzerland.
    7. Tendenze srl has acquired the rights to produce Peter Pan apparel for Italy, San Marino and Vatican City.
    8. Rai Cinema has acquired the free to air broadcast rights of Peter Pan season 1 for Italy.
    9. Universal Music has acquired worldwide music publishing rights of Jungle Book season 2.
    10. Escalada has acquired Free TV broadcast rights of Iron Man 2 and Peter Pan for Malaysia.
    11. Simbasat, UK has acquired broadcast rights of Iron Man 2 for Senegal, Mali, Ivory Coast, Mauritius and French-speaking Africa.
    12. 2 x 2 has acquired broadcast rights of Iron Man 2 for Russia.
    13. Green Narae Media has acquired Home Video rights of Jungle Book 2 and Peter Pan for Korea.
    14. Showtime Attraction, L&M partner in Australia for Jungle Book and Peter Pan for the category of Costume Character Appearance, have extended the term for Jungle Book by one year.
    15. Jungle Book Toy Deals:
    · Habuba Clip for Israel
    · TRU Dubai for Dubai
    · Hunter Leisure for Australia
    · Prima Toys for South Africa
    · Scandi Toys for Scandinavia
    · Ho’s Team- Shoprite for South Africa

    Like Yonaguni, 5 Children and It too is a CGI children’s animated series comprising 52 11′ episodes while 7 Dwarfs and Me, a combination of CGI and live action images, is a hybrid animation show. The second season of The New Adventures of Peter Pan rides on the success of the first season of the Peter Pan television series that was distributed in over 100 countries, being one of the highest rated TV series in France, Germany and Italy.

    Sky Italia, Discovery Kids, Nick India and Rai Cinema among others have acquired the broadcast rights for various properties produced by DQE says Tapaas Chakravarti

    But how does the new portfolio fit into the company’s profile? “7 Dwarfs and Me, The New Adventures of Peter Pan 2 and 5 Children and It, fit in very nicely with the DQ portfolio of iconic properties. Also Yonaguni is an underwater adventure with SeaWorld theme parks from the US,” says Chakravarti, adding that the company is expected to enter production shortly for delivery in 2015.

    Co-production apart, DQ has also concluded several licensing deals. “Various well-known broadcasters such as Sky Italia, Discovery Kids, Nick India and Rai Cinema, among others, have acquired the broadcast rights for various properties produced by DQE,” says Chakravarti and adds, “The categories of the licensing deals vary from broadcast and music rights to character licensing for manufacture of merchandise such as toys, clothes etc.”

    This year, DQ has entered Latin American countries through its flagship intellectual property, The Jungle Book. “Globosat-Brazil, Cannal Encuentro-Argentina and Televisa-Mexico have already acquired the broadcast rights of the property while DQE’s other properties are also expected to make entry into these markets soon,” says Chakravarti.

    In addition, DQ is working on ways to leverage its large library of properties through SVOD and mobile platforms. “We are currently in discussion with YouTube to find ways of monetising animated content through a dedicated channel showcasing our global and domestic properties. We believe these platforms will play a very significant role in reaching a large and diversified audience in the future,” says Chakravarti.
    The company has also launched a game app of its IP, The Jungle Book, called ‘The Great Escape’ for the android platform. “We plan to launch similar games and apps on android and iOS platforms for other IPs such as Peter Pan, 5 Children and It etc. soon,” he adds.

    It is learnt that the production deals will add to the bottom line of the company, first quarter of the next fiscal year onward, while realisation of the licensing and broadcast revenues is expected to continue through the subsequent quarters.

    In case you thought that’s it, the company has some more production and licensing deals waiting in the wings…

  • Q1-2014: DQE International continues profitable run

    Q1-2014: DQE International continues profitable run

    BENGALURU: The Tapas Chakravarti (he’s the CMD and CEO) led, Hyderabad based DQ Entertainment (International) Ltd, (DQE) continued its profitable run in Q1-2014.

     

    DQE had reported loss for Q1-2013 of Rs 9.2 crore. It reported profit of Rs 14 crore in Q3-2013 followed by a profit of Rs 23.3 crore in Q4-2013. DQE’s net profit for FY-2013 was Rs 37.3 crore. As of June 2013 (Q1-2014), DQE had recorded a net consolidated profit of Rs 6.6 crore.

     

    The company says that its revenue and profitability has a clear seasonal pattern, similar to that of the rest of the global animation industry, wherein almost 60 per cent of the annual revenue is achieved in the third and fourth quarter of the financial year and these results are in line with that trend.

     

    DQE is a global player in the creation, production, distribution, licensing and marketing of various forms of entertainment. The company is a major player in the country in animation production capacity for television, feature films, home video, online game art, visual effects, mobile and next generation console games.

     

    Let us take a look at DQE’s other figures for Q1-2014

     

    DQE’s consolidated net income from operations of Rs 30.43 crore in Q1-2014 was 1.64 per cent lower than the Rs 30.93 crore for Q1-2013 and a little more than a third (34.4 per cent) of the Rs 88.54 crore for Q4-2013.

     

    In Q1-2014, DQE had suffered a foreign exchange loss of Rs 18.4 crore, in Q1-2013, this loss was lower at Rs 5.94 crore, while in Q4-2013, it had a gain of Rs 4.3 crore on account of foreign exchange.

     

    DQE’s total expense for Q1-2014 at Rs 18.9 crore was more than half (51.7 per cent) of Rs 36.56 crore in Q1-2013 and less than a third (31.9 per cent) of the Rs 59.26 crore in Q4-2013.

     

    DQE’s production expense in Q1-2014 at Rs 1.65 crore was a little more than a third (36.7 per cent) of the expense of Rs 4.5 crore in Q1-2013 and almost a quarter (25.24 per cent) of the Rs 6.53 crore in Q4-2013.

     

    DQE’s employee expense at Rs 20.22 crore for Q1-2014 was 15.1 per cent lower than the Rs 23.81 crore in Q1-2013 and just 0.75 per cent lower than the Rs 20.38 crore in Q4-2013.

     

    DQE’s animation segment reported consolidated revenue of Rs 27.57 crore in Q1-2014, lower by 1.8 per cent as compared to the Rs 28.08 crore in Q1-2013, and a little more than a third (35.22 per cent) of the revenue of Rs 78.28 crore in Q4-2013.

     

    DQE’s animation business had revenue of Rs 182.01 crore for FY-2013.

     

    Capital employed for the animation segment at Rs 192.80 crore for Q1-2014 was 42.3 per cent more than the Rs 135.50 crore for Q1-2013 and 17.5 per cent more than the Rs 164.05 crore for Q4-2013.

     

    In its Q2-2013, DQE had said that it expected its distribution business to deliver significant net cash flows from FY-14 onwards. This has not happened in Q1-2014. Results from this segment were Rs (-1.859) crore in Q1-2014, Rs (-1.884) crore for Q1-2012 and Rs (-9.482 crore in Q4-2013. For FY-2013, DQE’s segment result from Distribution was Rs 12 crore.

     

    Revenue from DQE’s distribution business in Q1-2014 at Rs 2.852 crore, was almost flat as compared to the Rs 2.847 crore for Q1-2013 and a little more than a fourth (27.8 per cent) of the Rs 10.26 crore in Q4-2013. Given the fact that DQE’s overall business has seasonal patterns, this segment could show results as per the company’s expectations during the rest of the quarters of FY-2014.

     

    Capital employed for distribution for Q1-2014 at Rs 244.56 crore was 35.2 per cent less than the Rs 377.28 crore in Q1-2013 and 1.7 per cent more than the Rs 240.33 crore in Q4-2013.

     

    Chakravarti said, “The macroeconomic environment in some markets, especially in Europe and Canada, remains very challenging even in the children’s entertainment business. There is however a definitive improvement in the US Animation and children’s entertainment segment where considerable effort is being paid by us to further enhance our footprint.”

     

    “Our core business fundamentals remain sound with a strong current order book, to be executed over the next 2-3 years Our business is global and we have had particular success in TV and Home Video distribution, licensing, merchandising and publishing for brands like The Jungle Book and Peter Pan, as well as for many other properties such as Iron Man, Casper, Charlie Chaplin, Tara Duncan and Little Prince.”

     

    “We are in the process of rescheduling DQE India’s working capital facilities necessary to execute our new order pipeline and complete production and delivery of high brand equity properties such as The Jungle Book – series II, Peter Pan – series II, 5 Children & IT- series I, Lassie – series I, Little Prince – series III, Robin Hood – series I, besides several other productions”, informed Chakravarti.

     

    “We have given a special focus to strengthening our balance sheet by putting an extraordinary effort into the collection of receivables from our clients and partners, which will further improving our working capital position.

     

    I remain cautiously optimistic that we will end the fiscal year in a satisfactory position as planned,” Chakravarti said.

  • “Indian TV programmes have widespread reach and appeal”: Zee TV’s global head syndication Sunita Uchil

    “Indian TV programmes have widespread reach and appeal”: Zee TV’s global head syndication Sunita Uchil

    For the worldwide television industry, Paris-based Reed Midem‘s MipCom and MipTV are akin to what the Festival de Cannes is for global cinema. Both MipTV and Mipcom attract more than 11,000 participants. Each sees the coming together of the world‘s brightest television, animation, format, and audiovisual content creators, buyers and sellers. An estimated one billion euro in transactions – in terms of sales and acquisition of TV shows, formats, feature film and documentary – is estimated to emanate from MipTV which is held in April and MipCom (held in October every year).

    While China, south Korea, Russia and Latin America have been growing by leaps and bounds in terms of programme syndication worldwide and their presence in Cannes‘ Palais des Festivals, India has been moving at a steady pace. At this year‘s MipTV close to 100 participants from India made their presence felt. Some exhibited, some came as buyers to pick up shows and formats, some did co-production deals and some came as sellers to hawk their TV shows and feature films. Viacom18, DQ Entertainment, Shemaroo, Eros, Verria, Maximus Multimedia, were among the big-name players who exhibited. But there were scores of others who came in as participants and bought and sold TV programmes, formats, films, and documentaries.

    The most prominent of the Indian exhibitors has been Zee TV. With an impressive location and display, the company has been a regular exhibitor at Mipcom and MipTV for the most part of this decade; and has been reaping the fruits of its continued participation in terms of growing syndication sales and building its brand globally.

    Indiantelevision.com spoke to Zee TV‘s global head syndication Sunita Uchil to know more about Indian programme syndication worldwide, India‘s presence at Mip, and the benefits that accrue to her company courtesy its Mip outings.

    Excerpts:

    Has demand for Indian content picked up? And what kind of content is attracting maximum attention?

    There definitely is an increasing demand for Indian ‘entertainment‘ content, especially genres such as family dramas, romance and non-fiction. Our syndication strategy (under the Zee Bollyworld umbrella) for the new show launches (Badalte Rishton Ki Dastaan, India‘s Best Dramebaaz, and now more recently DID Supermoms), has been developed keeping in mind the rapidly evolving industry where viewers can access content directly.

    How large is the Indian TV programme and film syndication market internationally? Can you give an estimate on its size? Is this growing and in which markets?

    I cannot comment on the film bit as of now, but Indian TV programs have a widespread reach and appeal. Currently it could be anywhere between US$25-$30mn. Yes, this figure is growing continuously. The recognition that Indian content receives at international markets such as MipTV and MipCom only shows that the demand is increasing globally. Content aggregators and distributors (Americas, Europe) have realised that their audiences are excited to understand more about Indian culture, cuisines, lifestyles etc; and will turn to other platforms like PPV, VOD to access this; with a shift from traditional viewing.

    Can Indian and international co-productions work? Which area – TV, cinema or animation?

    Definitely and in all three forms, Indian technology and skill are on a par with the western markets. We have seen the successful collaborations in the past few years. Growing trends like social media are bringing the world closer. Consumers are getting influenced and watching whatever their friends are watching rather than what the broadcasting networks are promoting.

    Zee Bollyworld itself is offering better customised services like dubbing and subtitling in foreign languages (in order to deliver a superior product) that truly makes it a one-stop shop for Indian entertainment the world over.

    MipTV & Mipcom India rep & indiantelevision.com‘s CEO Anil Wanvari alongside Zee TV‘s global syndication head Sunita Uchil

    How large was your delegation to MipTV this year? 

    We had representation from Europe, Africa, Asia Pacific and the Middle East region this year. Our teams are located in all these regions as well as in the USA now. Our strategy for gaining market intelligence has considerably improved. This has benefited in having a direct resource in the market with better client interaction taking place.

    ‘We are noticing a shift from consumption patterns- from traditional, DTH platforms to VOD, PPV mediums. The increasing importance of social media in influencing consumer tastes and the exposure of international lifestyles is creating a shift towards foreign content with the idea being to ‘try out new things’

    What was your objective from MipTV this year? How did you position yourself differently? Did you introduce any new products or offerings? How was the receptivity to it?

    Zee is the first to create a separate brand umbrella for trading and syndication. In 2012, we had mandated Mumbai based creative agency Young which had created the distinct Zee Bollyworld identity and this concept was well received within trade circles and has been a discernible differentiator for Zee at international content markets. At MipTV 2013, our objective was to leverage and build on this differentiator and to reinforce our positioning – ‘one stop shop for Indian entertainment content‘. We showcased our most successful properties and highlighted our dubbed content to clients.

    Any new ideas of trends you picked up this year from MipTV?

    We are noticing a shift from consumption patterns- from traditional, DTH platforms to VOD, PPV mediums. The increasing importance of social media in influencing consumer tastes and the exposure of international lifestyles is creating a shift towards foreign content with the idea being to ‘try out new things.’

  • Animax ropes in Supriya Bambawale as marketing manager in India

    Animax ropes in Supriya Bambawale as marketing manager in India

    MUMBAI: SPE Networks’ Japanese anime channel Animax has appointed Supriya Bambawale as marketing manager in India.

    In this capacity, Bambawale will oversee the functions of programming, marketing and creative services, as well as conquering new markets to expand the channel’s reach.

    Animax seeks to adopt mature content combined with edgy animation, essentially recreating its appeal to attract young adult viewers.

    Bambawale’s experience at DQ Entertainment and Buena Vista Television India provides her knowledge to spearhead the move forward for Animax, identifying programmes and marketing initiatives that will connect and interact with today’s youth.

  • DQ Entertainment in JV with French firm; plans to invest Rs 2.5 billion over 3 yrs

    DQ Entertainment in JV with French firm; plans to invest Rs 2.5 billion over 3 yrs

    MUMBAI: Hyderabad-based DQ Entertainment (DQE) is eyeing joint venture deals with international animation companies that would assure it of a product pipeline. As a step in this direction, the company has entered into a 51:49 per cent joint venture with France’s animation powerhouse Onyx Films to produce high-end CGI feature films.

    “We are looking at more such deals with other companies which would boost our product pipeline. That will form a part of our expansion strategy,” says DQ Entertainment MD and CEO Tapaas Chakravarti.

    The JV with Onyx Films, in which DQE will make an initial investment of Euro 1.5 million (around Rs 90 million), has identified three feature films valued at $89.5 million including Skyland (budget of $31.5 million), Night of the Child King ($30 million) and The Enchanted Boy ($28 million). While Skyland is funded fully, the process of arranging money is on for Night of the Child King. “Besides these three movies, the aim of the JV is to launch one feature film every year from 2008 onwards,” says Chakravarti.

    DQE is also buying a 20 per cent strategic stake in TV production company Method Films, a sister concern of Onyx, for Euro 2.5 million (around Rs 150 million). Already lined up is a slate of nine TV series for major broadcasters in the US, Canada and Europe, six of which are currently under production. “The strategic stake in Method Films will help us access global revenue and overseas funds for the entire production. It will also provide DQE a huge order pipeline in the area of animation, VFX and post production work in the years to come,” says Chakravarti.

    DQE is planning to invest Rs 2.5 billion over three years while ramping up its 3,000-seater capacity to a strength of 5,000. The company is currently capitalised to the extent of $12 million and has private equity investors including International Finance Corporation (IFC), India Value Fund, IL&FS Investment Managers Ltd and TDA Capital Partners.

    The company clocked $12 million in FY06 and is projecting a turnover of $25 million this fiscal. The target will be much higher once DQE has established itself in the value chain game. The JV will help it leap into the status of feature film producers while guaranteeing utilisation of production facilities and additional streams of revenue.

    “Strategic alliances are extremely important and will bring about strong presence of creativity, powered by massive production capabilities,” says Onyx Films chairman and Method Films CEO Aton Soumache.

    The private equity investors in DQE are bullish about the growth prospects of the company. “DQE is beginning to work on the content side of the animation business rather than being a pure outsourcing player. By entering into this joint venture, the company has shown that it is keen to participate in the financial risk of the animation business. This way there can be substantial upsides,” says Rajeev Agrawal, fund manager at India Value Fund.