Disney-Yash Raj Films to make animated films

After Virgin-TV18 deal, another tieup in the animation space has happened.  Walt Disney Co. and Yash Raj Films are forming a JV to make animated films with voice by Bollywood stars to get a bigger pie of India’s growing media and entertainment market.

The Indian population under 14 years old is bigger than the entire U.S. population, thus creating a huge market opportunity. The move is part of Disney’s strategy to focus more on high-growth foreign markets with local partners and earn more than half of its income from overseas operations. Later, Disney could also venture into making live-action movies in India.

Recently Disney has been trying to build its business in television, movies & retail in India. It launched the Disney Channel and Toon Disney in 2004, and then acquired Hungama Channel from UTV in 2006. It also ventured into retail with Disney stores in partnership with Ravi Jaipuria and plans to open 300 stores. Disney also went into local production of its content by launching two shows and expects to produce upto 40% of total television programming locally.

Though Indian stars a big draw in Indian cinema but audiences are not used to seeing animated movies, so Disney will have to blend singing, dancing, humour and emotions in typical Bollywood style.

For Yashraj Films, this would add another feather in its cap as it is easily India’s leading entertainment conglomerate. The company could leverage on its existing business of film making, distribution, music, home entertainment and integrated studio. It is also planning to venture into film exhibition business through its own multiplex chains. This venture will make its product portfolio more comprehensive.

What next for Disney, maybe a Disneyland in India, a highly probable scenario seeing the kind of interest India has attracted from foreign companies.