EXECUTIVE SUMMARY
 Digital animation constitutes a vital part of the overall digital media industry and has become one of the fastest growing sectors. The demand for animated content has increased manifold (in domestic and international markets) due to increase in the numbers and broadcasting hours by cable and satellite television and ever increasingly popularity and dependence on the internet. Today animation is not utilized just to create cartoon series but it has become an essential tool in creating visual materials such as movies, videos, and games. Corporate entities too are dependent on animated content for modelling and advertising campaigns of their products. Animation is increasingly being used as a tool for education and a new phenomenon of ‘edutainment’ is emerging utilizing interactive compact disc (CDs) and visuals. Currently Pakistan is going through a revolution in electronic media as there is an explosion of T.V channels, broad band adoption and mobile ownership creating huge demand for animated production. Against this surging domestic and international demand, animation development and its allied fields are being considered as a lucrative area for entrepreneurial ventures. 
BRIEF DESCRIPTION OF PROJECT & PRODUCT
Rapid advancements in digital media over the last decade have transformed information communication technologies, entertainment and media sector. It has driven the convergence of the said sectors resulting in novel products and services. As high bandwidth digital technologies, ranging from portable devices to wireless and broad band connectivity, become increasingly pervasive around the globe, they continue to fuel an insatiable demand for high quality content that can be delivered to users over these channels. This content encompasses education, information, entertainment and business applications providing huge opportunities to new start-ups / entrepreneurs in countries like Pakistan that can position themselves at the epicenter of creative arts and digital technology revolution.  The proposed animation production house in this pre-feasibility study will be catering to domestic and international clients, offering digital animation as a finished product as well as providing ancillary/customized services for an array of clients i.e. telecommunication companies, T.V channels, video game development companies, advertisement companies, large media, studio and production houses etc
CRITICAL FACTORS   
Selection of a dedicated competitive team of artists, designer, animators and a creative art / production director
 Ability to conceive creative ideas and translating them into finished product as per client’s specifications 
Safeguarding design and animation production from piracy
Employing and retaining skilled staff
 Strict adherence to timelines
 Higher return on investment and a steady growth of business is expected with the entrepreneur having some prior experience in the related field of business.
INSTALLED & OPERATIONAL CAPACITIES 
 Essential hardware / equipment for animation production facility will house 4 customized computer machines for animation, backed by a server. With a dedicated team of 4 animation developers it is anticipated that the enterprise shall be able to roll out 50-150 seconds per month of finished and semi finished animation. However for the purpose of this particular pre feasibility study, it is assumed that the enterprise shall be producing 100 seconds of finished / semi- finished animated content. It is estimated that the production cost for animation in Asian countries particularly Pakistan and India is 25% to 35% cheaper compared with cost in developed countries hence attracting considerable business from America and Europe.
GEOGRAPHICAL POTENTIAL FOR INVESTMENT AND POTENTIAL TARGET MARKETS  
Digital animation continues to grow as an increasingly important and integral part of film and television production, particularly in the current scenario where animation is being fused with live production to gain results that were hitherto considered impossible. As the animation and special effects content has increased in sophistication, the production and post-production activities have also experienced enhanced integration. However, tight production budgets and time schedules are increasingly exerting pressures on the special effects and post production schedules. As a result of this, animation activities are being outsourced to competent and cheaper locations in Asia. The cost of developing animated content in Asian region is estimated to be 25% to 35% of what it would cost in developed countries.