Film, TV and Entertainment Brand Licensing

June 16, 2008

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FOR YEARS, ENTERTAINMENT LICENSING has looked like this: product, product and more product. But that's so yesterday.

            Welcome to entertainment licensing 2.0, which looks like this: DreamWorks Animation's Shrek has a home at Build-A-Bear Workshop through a direct-to-retail deal with the specialty chain, where kids can create their own keepsakes; Fremantle's American Idol creates a groundbreaking charity drive that raises $76 million; and Fox launches an immersive attraction called The Simpsons Ride in Hollywood and Orlando.

            What's behind the sea change in the industry? Risk averse retailers, the gloomy economy and savvy consumers, according to this year's finalists in the film, TV and entertainment category. Under these market conditions, property owners and licensees have been inspired to come up with out-of-the-ordinary offerings that don't simply exploit the brands but actually extend their lives.

            "We're redefining our business beyond toys and T-shirts," said Elie Dekel, executive vp of licensing and merchandising at Fox, owner of The Simpsons properties. "We're finding new ways to appeal to fans, creating content, experiences, communities. We have to think outside the box-literally, outside the package."

            That's also the order of the day at FremantleMedia, the producer and licensing agent for the massively popular American Idol, TV's most-watched show. Last year, the company launched Idol Gives Back, an interactive program that raised $76 million for some of the world's neediest people. An iTunes deal for the TV special gave consumers a way to relive the event beyond that one night. Other Idol expansions into the experiential included having fans vote on Dryers ice cream flavors, a nod to the plugged-in and involved fan base, and Idol-themed Konami and Tech 2 Go games encouraging players to nurture their inner pop star.

            "People want to get closer to the properties they love," said David Luner, senior vp, interactive and consumer products at Fremantle. "The challenge for us is to translate those properties in new ways."

            Disney, already king of interactive experiences, nevertheless impressed with its recent efforts behind High School Musical 2, which helped propel the franchise into a billion-dollar brand in two short years. Fans flocked to High School Musical: The Ice Tour and shopping sprees with the TV movie's stars around Walmart's back-to-school HSM 2-themed shops.

            "Disney has been taking characters and stories and creating interactive experiences around them for 50 years," said Kathy Franklin, head of Disney's global franchise development. "It's our chance to reinvent the legacy in ways that push the industry standard."

            While property owners have been stretching the boundaries, so have their licensees, with Jakks Pacific creating an electric guitar and other musical items for the Hannah Montana franchise; Digital Blue developing digital cameras, music and media players with Disney character branding; and MDI Entertainment launching Deal or No Deal lottery tickets that drew in $380 million in revenue across 22 states.

            The nominees in soft goods, like Jerry Leigh (for High School Musical 2), Millennium Apparel Group (Hannah Montana) and Briefly Stated (SpongeBob SquarePants) amped up their focus on fashion-forward designs. Accessory Network created backpacks, lunch bags and luggage with sight, sound and motion for last summer's blockbuster action movie, Transformers. The young boy target responded, giving the product double digit sell-through.

            Jay Franco and Sons latched onto the latest incarnation of a classic superhero,

For more LIMA coverage:
A note from Charles M. Riotto, LIMA President
2008 LIMA Finalists
Character Brand Licensing
Corporate Brand Licensing
Film, TV and Entertainment Brand Licensing
Sports and Sports-Themed Entertainment Licensing
Licensed Promotions
Art Brand Licensing
Retailer Licensing Programs