Moscow Identifies Exports and Brand Development as Key Growth Drivers for the Animation Industry

Moscow remains the leading center of Russia’s animation industry, accounting for 70% of the country’s animation studios, 57% of industry professionals, and 71% of all domestic animated content. These figures were presented during a press conference on the development of animation, emerging production technologies, and the industry’s export potential, held at the Moscow Video Game and Animation Cluster.

According to Gulnara Agamova, Head of the Moscow Creative Industries Agency, the primary asset of a modern animation company is no longer just a film or television series, but an intellectual property capable of expanding across multiple markets and platforms.

“Moscow’s animation industry has demonstrated continuous growth over the past five years. Even during a period of major market restructuring and the departure of several international players, Moscow-based companies continued to increase their revenues, production volumes, and market share. This confirms that the city has established itself as a stable and sustainable center of the Russian animation industry,” Agamova said.

She noted that 42 of Russia’s 60 animation studios are based in Moscow. Over the past five years, domestic animation production has nearly doubled, with the majority of new content created by Moscow studios. Participants identified the next stage of industry growth as the expansion of intellectual property beyond the screen through licensing, digital products, publishing, video games, and consumer merchandise.

Globally, animation studios invest a significant share of their resources in brand distribution and expansion. In Russia, however, most investment is still directed toward content production itself, leaving considerable potential for the development of new business models.

“Today, an animation project must evolve not only as a television series or feature film, but also as a fully developed brand. Studios need to be present across multiple platforms and actively engage in licensing, publishing, and other formats that allow stories and characters to exist beyond the screen. Our goal is to create contemporary, visually compelling content that resonates with international audiences while preserving Russia’s cultural identity,” said Albina Mukhametzyanova, CEO and General Producer of YARKO Animation Company.

She also emphasized that the long-term growth of the domestic market depends on encouraging audiences to attend Russian animated films throughout the year, rather than only during holiday seasons. Achieving this requires the consistent release of high-quality productions and sustained public confidence in Russian animation studios.

Another important growth area is the integration of animation with advanced technologies. ITSALIVE, a resident company of the Moscow Video Game and Animation Cluster, develops digital characters, interactive services, and artificial intelligence–based solutions. Among its flagship products is Interactive Characters in Holoboxes, a technology designed to display holographic mascots and virtual characters for customer service, public spaces, real estate developments, and theme parks.

“Today, an animation studio is no longer limited to producing animated films. It can create intellectual property, digital characters, specialized hardware, and AI-powered services. It is at the intersection of animation and technology that entirely new markets and business models are emerging,” said Vadim Belov, CEO of ITSALIVE.

Belov added that the Moscow Video Game and Animation Cluster provides resident studios with access to infrastructure that would be prohibitively expensive for private companies to build independently.

“We use the recording studio, screening room, lecture facilities, and motion capture stage. This allows us to reduce costs, accelerate experimentation, and bring new products to market more efficiently,” he said.

The Moscow Video Game and Animation Cluster currently hosts nine resident animation companies. Its infrastructure supports the entire production cycle—from concept development and content creation to business partnerships, commercialization, and international promotion.

Expanding into international markets remains another strategic priority for Moscow’s animation sector. Animation is viewed not only as an export product in its own right, but also as an effective vehicle for promoting Russian brands, products, services, destinations, and cultural values. To succeed internationally, studios are encouraged to design projects from the outset with licensing opportunities and cross-industry intellectual property development in mind, spanning film, video games, publishing, theatre, and consumer products.