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CCID Reviews the Potential of China's Mobile Phone Animation Market; Discusses Challenges Ahead

BEIJING, April 5 / -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, the first Chinese consulting firm listed in Hong Kong, forecasts the outlook and development prospects of the China mobile (Nachrichten) phone animation industry in 2007.

At the recent Animation and Game Industry Development Forum in the First China Beijing International Creative Culture Expo, Ma Yunfei, CEO of Beijing Kexun Hi-Tech Co., Ltd., said that the foundation for the development of mobile phone animation has been laid and mobile phone animation is expected to become a new starting point in China's animation industry. Industry insiders are generally optimistic about the mobile phone animation industry. Telecom operators including China Mobile, China Unicom and China Netcom have all considered the sector a potential profit growth point.

China's animation industry has a history of over 80 years, and has contributed to the world many classic works such as 'Creating Havoc in Heaven'. However, due to systemic difficulties, China's animation industry was overtaken by its counterparts in Europe, the United States and Japan. In recent years, the government has offered a series of preferential policies and large incentives to the industry. However, compared to developed countries, China's animation market development is still regarded as backwards. Building upon its superior mobility and fully interactive features, mobile phone animation is now becoming an opportunity for China's animation industry to make breakthroughs and seek early development.

As a new media, the mobile phone animation industry is targeting a very promising market, with many factors in its favor, including an enormous potential user group, the support of State policy, the strong back-up support and promotion efforts by telecommunication giants such as China Mobile and China Unicom, and on the technology side, the expanding memory of mobile phone terminals. Stimulated by these factors, mobile phone animation services now look forward to a period of high growth. Currently, WIVG terminal players and back-stage services platforms have been used, unique mobile phone animation plays have come into being, China Mobile Phone Animation Creative Works Contest is being held in earnest and relevant services have risen as a fresh source of revenues. These have helped the formation of a preliminary mobile phone animation industry chain. The promotion of mobile phone animation services is expected to speed up the integration of the traditional animation industry with the new mobile phone media to form a new animation industry value chain to become a business growth pole in the upcoming 3G era.

However, there are practical problems to be addressed behind all these achievements. These include how to find the connection points between traditional animation and new animation, how to improve the industry chain from the perspective of content innovations, technology and format, and how to effectively address the current situation that China is lagging behind other countries in its animation industry development. To solve these problems, China still has a long way to go:

First of all, there is still an animation industry development gap between, on one hand, China and, on the other, Europe, the United States, Japan and South Korea. South Korea accounts for 30% of the total output in the global animation market, while in Japan, revenue from the animation industry is over $10 billion. In such a situation, China must establish a feasible and effective business model if it wants to develop fast in the mobile phone animation field.

Secondly, the industry chain is not yet complete. This is mainly reflected in the unique technical means of realization, that mobile phone animation still requires great support from terminal makers at large. On the other hand, operators apparently play a dominant role in the industry chain. Relatively speaking, SPs only get a small share of the profits, thus having fewer incentives for business development. In addition, a disconnected content link makes the industry chain unsound.

Thirdly, user cognition still needs to be improved while nurturing user habits. As a unique new service, mobile phone animation will mainly be oriented towards narrow user groups. One problem to be urgently addressed is how to use convenient, fast and creative applications forms to attract individual users and cater to their habits of use.

About CCID Consulting

CCID Consulting Co., Ltd (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas of the powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.

CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research.

For more information, please contact: Cynthia Liu Coordinating Manager CCID Consulting Co., Ltd. Tel: +86-10-8855-9080 Email: liuyan@ccidconsulting.com

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