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Globally acclaimed iconic children's brands provide great opportunities to create content for multiple platforms of delivery like TV, Feature Films, Home Video and Games. It results in the possibility to distribute, license globally and monetize content over a long period of time.
I am delighted to present our annual results for the year ended March 31 2013.
The global economic scenario, especially in Europe and North America, continues to be very challenging. The onus is on the company custodians and management to keep on delivering results even in times such as these. Creative businesses mainly need to focus on core assets and deriving as much from them as possible. Value creation from Intellectual Property ('IP') development has emerged as an asset around which business models and financing are increasingly being focussed.
Building upon our deep expertise in producing high end 3D, CGI and 2D digital animation, we took the step, 3 years ago, into IP based production of digital content for television. The development, financing (through pre–sales globally), production, distribution and ancillary exploitation of entertainment content across all platforms of deliveries is paving the way for long term sustainable revenues for the Company.
The Company is firmly on the path to identify new IP opportunities and generate high calibre creative content for worldwide distribution and exploitation.
2. QPERATiNG HiGHLiGHTs:
This year we have good examples of our success in the area of value creation through IP development, which in a short period of time has gathered considerable momentum.
Most notable amongst these properties are : the 3D TV Series "The Jungle Book" which is now in second season of production approved by many international broadcasters; the 3D TV Series "The New Adventures of Peter Pan" which was successfully delivered by us this year and is already airing with high ratings on networks such as Sky Italia (Italy) and TFI (France); and the 3D TV Series Little Prince which has been commissioned for a third season.
New project commissions include some prestigious titles like: TV series such as NFL Rush Zone for Nick Toons (UsA), a TV feature for Disney india, Jungle Book second season for ZDF(Germany) and TFI (France) and Little Prince season 3 for France Television and other Broadcasters in Europe. We continue to benefit from our cross continental relationships with global networks and production partners established through diligent and timely completion of projects undertaken.
Our content creation is managed via a highly efficient and proprietary production and tracking system that significantly improves resource optimisation. Against the backdrop of shrinking budgets and poor economic conditions that
prevail worldwide, the Company has sustained qualitative growth in terms of content production and distribution and capitalised on opportunities in the entertainment marketplace, globally.
licensing and distribution
Our licensing and distribution efforts have proven increasingly successful on a global scale and are helping to create long term and sustained value for DQE. Our sales team is continuing to negotiate new deals across all our portfolio of properties.
39 new merchandising deals were signed for "The Jungle Book" and "The New Adventures of Peter Pan". Noteworthy amongst these are the 'Quick service Restaurant (QsR) Promotional deal with Burger King across I4,000 restaurants worldwide which started in the UK and USA in June 'I3 followed by Latin America, Europe and Middle East and the exclusive launch of The Jungle Book Home Video in Wal–Mart stores across USA.
The Jungle Book 60' TV feature that is now available through Phase 4 films in the Redbox rental catalogue is currently topping the popularity charts being the #1 family film viewed in Canada and #4 in the U.s.! Red Box, the popular DVD rental site in North America with 34.5% market share, has 42,000 kiosks at more than 34,000 locations and specializes in the rental of DVDs, Blu–ray Discs, and video games via automated retail kiosks.
More than 25 new broadcasting and home video agreements have been signed for
a variety of properties including Ironman, Lassie, Jungle Book, Peter Pan and Tara Duncan with leading networks such as Turner, ZDF Germany, Tele Quebec and TVO Canada, Disney XD USA, Nickelodeon etc.
The licensing and distribution revenues currently represent approximately 21% of total revenues and have progressed very well during the year.
The Company had signed a major licensing and merchandising contract during the previous year, with a leading licensing agency in the USA for a period of four years. The said contract was on
a non–cancellable basis resulting in an upfront recognition of distribution revenue of INR 16.39 crores last year.
The New Adventures of Peter Pan series is just launched globally and the revenue from the distribution of this series will accrue from the current year and enable us to improve the cash flows.
productions successfully completed and delivered :
The New Adventures of Peter Pan – 26 x
22' 3D HD Stereoscopic TV series, DQE IP, co–produced with ZDF Group (Germany), and Method Animation (France), supported by France Television, De Agostini Group (Italy), ATV (Turkey), B Channel–Indonesia, JCCTV (Middle East) and Noga (Israel) has been successfully delivered.
Mickey Mouse Club House season 4&5
– CGI TV Series for Walt Disney Television Animation (USA) was delivered, cementing our long standing relationship with Disney USA, over 5 seasons of this TV series.
Charlie Chaplin season I – 104 x 6' 3D
TV Series with Method Animation was successfully produced and delivered to France Television, MK 2 (France) and WDR–Germany
Casper season 2 – 52 x II' 3D TV Series with Harvey Entertainment (USA), Moonscoop & Cartoon Network (USA), TF–I (France) and Moonscoop (France) was delivered after production of season I by DQE
Keymon Ache – I x 70' animated TV feature produced and delivered to Nickelodeon India
Little Prince season 2 – 3D TV Series with Method Animation, for France Television, and
Qmkar season 3 with Turner International –Cartoon Network
NEW PRQJECTs siGNED iN THE YEAR 2012–13
We have signed new co–productions/work–for–hire contracts (but not yet in production) with international partners for delivery over the next I8–24 months as follows:
Raz and Benny –52 x II' CGI TV series with Foot Hill Entertainment, Europe
Leo & Pisa gang – 52 x II' CGI TV series with MPP (Germany)
NFL Rush Zone 3 – 20 x 22' CGI & 2D TV Series with Rollman Entertainment, USA for
iesodo – I0xI3' CGI TV series with Rollman Entertainment (USA)
Manav – 65' 2D TV Feature with Disney India
PRQJECTs iN PRQDuCTiQN:
Our production pipeline continues to be robust optimising the utilisation of man and machine resources. The under mentioned are currently in production to be progressively completed for delivery in 20I3–I4.
The Jungle Book season 2 – 52 x II 3D
TV series being coproduced with ZDF TV (Germany), TFI TV (France), Moonscoop (France), ZDF–E (Germany)
Jungle Book Christmas special – CGI TV
Feature coproduced with ZDF TV (Germany) and Moonscoop (France)
Lassie & Friends – 52 x II' 2D TV series being coproduced series with Dreamworks
Classics (USA), TFI (France), ZDF
(Germany) and Noga (Israel)
Robin Hood, Mischief in sherwood – 52
x II 3D TV series being coproduced with Method Animation (France), TFI (France), ATV (Turkey), De Agostini (Italy) and ZDF (Germany)
Lanfeust – 26 x 22' 3D TV series coproduced with Gaumont Alphanim (France)
Little Prince season 3 – 26 x 22' CGI TV
series – third season of this iconic series with Method Animation (France), France Televisions and RAI (Italy)
NFL Rush Zone 2 – 24 x 22' CGI & 2D TV Series with Rollman Entertainment (USA) for
Nick Toons( USA)
The Rising star – 26 x 22' 2D TV series coproduced with TMS Entertainment (Japan) and Kodansha (Japan)
Keymon season 2 – 52 x II' 2D TV series with Nick India
3D Jungle Book Christmas special– Jungle All The Way coproduced with ZDF (Germany) and Disney channel.
OTHER PRQDuCTiQNs CuRRENTLY iN DEVELOPMENT :
5 & iT – 52 x II' 3D HD TV series to be coproduced with ZDF Enterprises (Germany)
The Wind in the Willows – 52 x II' TV Series under development by our IP creative team
The Jungle Book Feature Film – 90' 3D
stereoscopic feature film
The Jungle Book Feature film is in advanced stages of development with a highly acclaimed team of international talent from the world of feature animation, which includes Screenwriter Billy Frolick ("Madagascar" and "Holy Cow"), Co–Directors Jun Falkenstein ("The Tigger Movie", "The Smurfs" and "Despicable Me") and Kevin Johnson ("Alvin and the Chipmunks: Chipwrecked", "Harry Potter & The Sorcerer's
Stone", "Astro Boy" and "Stuart Little").
The scripting and the sizzle reel (pilot) have been completed and we have had initial discussions with major distributors in the US as well as feature film financing companies. Advanced negotiations are underway for the financing of US$ 40 million for the production of The Jungle Book feature film, through a film fund managed
by a company specialising in motion picture financing, funding and consulting on worldwide distribution of films.
The film will be produced under my direct supervision as Executive Producer along with Eric S. Rollman, CEO of Rollman Entertainment, Inc., (former President of Marvel Animation and Saban/Fox Family Productions) and Rouhini Jaswal, Vice President (Intellectual Properties) of DQE. The film is targeted to be released in 20I5.
AWARDs AND ACCQLADEs :
DQE received the "Best Indian Animated TV Series" award for its highly successful series The Jungle Book at Infocom– Assocham EME in March 20I3.
NFL Rush Zone season 2, produced by DQE for Nick Toons USA, is nominated at 3 different awards for Best Animated Show at Namic Awards, Best new series at Cynopsis kids Imagination awards and for outstanding achievement in main title and graphic design at Daytime Emmy Awards 20I3.
our key strategic priorities fqr the
FQRTHCQMiNG YEAR iNCLuDE :
Continued expansion of our portfolio of global and iconic branded intellectual properties (IPs) such as a second season of The Jungle Book TV series and a second season of the Peter Pan TV series
Capitalize on our skillsets of high calibre visual effects (VFX) and 3D stereoscopic theatrical animation production
Accelerate growth in licensing and distribution through focus on hitherto untapped markets such as China, Latin America and Eastern Europe
Exploitation of newer delivery formats through the development of Apps and interactive games for our famous IPs such as Jungle Book and Peter Pan.
To improve the cash flow position substantially.
The production pipeline for the year ahead is strong with productions of The Jungle Book Second Season, The New Adventures of Peter Pan Second Season, Lassie & Friends, 5 & It 3D TV series, Wind in the Willows, Lanfeust First Season, NFL Rush Zone Second Season, The Rising Star and other productions including the Jungle Book Feature Film. These will also give a major boost to our licensing & distribution revenues and the Company is confident of achieving its targeted growth in the years to come.
Over the years I have learnt that sometimes plans never go quite as expected, but the true measure of an organization is how it reacts to challenges and opportunities. The past year has strengthened my belief in our management's and associates' capabilities to achieve in a rapidly changing and challenging world. I thank them for their support and continued hard work and dedication.
I sincerely thank our valued stakeholders and board members, as well as our partners' worldwide and valued clients, business associates, bankers and government authorities for their continuous support and trust.
CMD & CEO
30 May 20I3