Departments 7 Jackie’s Point 8 Industry Update 10 LIMA Update The One-Stop Shop to Learn Licensing: The Licensing University program at Licensing Expo has something for everyone, from beginners to veterans. 12 Stat Shot A look at the top international toy licenses. 13 LIMA U.K. The licensing industry makes an impact at European book fairs. 14 Talking Social Media What to do—and what not to do—when launching a brand on social platforms. 16 Brand Management Simon Uwins discusses building a brand in the age of mobile sharing. 17 Blogger Bash Laurie Schacht announces the second annual conference connecting digital influencers and popular brands. 18 A Look Inside Discovery Consumer Products increases its retail presence with engaging new initiatives. Volume 32, NumbeR 2
Features 20
Go Big, but Stay Honed
With more social platforms and media options than ever, brand owners must be tech-savvy and smart in their strategies.
28 Property Profile HBO’s Game of Thrones and Silicon Valley offer fans an array of licensed products. 34 Hot Shots: Building Q 23 questions with Woody Browne, managing partner, Building Q. 42 SURTEX The leading trade show for the surface design industry returns to New York on May 17.
24
SVOD: Licensing in the New Era of TV
With the rise of streaming video on demand platforms such as Netflix comes new original series that provide manufacturers with unique licensing opportunities.
46 Toys & TV Sy Fischer: The Man Who Helped Shape Character Licensing.
30
The Spice of Licensing
48 Of Counsel Who Owns the I.P.? Jim Kipling discusses ownership of derivative works.
As the food and beverage industry spices up with new and innovative flavors, the licensing industry jumps on the tasty bandwagon.
36
Licensed to Thrill
More licensed collectible figures are available than ever before, but bringing them to market takes time and effort.
38
Partnering with a Quick-Service Restaurant: How to Tell If It's Right for Your Brand
Why brands turn to quick-service restaurants to directly connect with fans and raise brand awareness.
44
Developing a Trade Show-Tested Portfolio
All Art Licensing owner and president J'net Smith gives insight to artists on how to prepare their portfolios to walk trade show floors and meet with licensees.
50 Don't Toy with Your Brand Story Paul J. Russell advises on how to make a brand stand out at retail. THE LICENSING BOOK, Spring 2015 — “THE LICENSING BOOK” (ISSN-0741-0107) is published quarterly by Adventure Publishing Group, Inc.®, 307 Seventh Ave., Room 1601, New York, New York, 10001. Periodicals postage paid at New York, NY 10001 and additional mailing offices. © 2015 Adventure Publishing Group, Inc ®. All rights reserved. No part of this publication may be reproduced or transmitted in any form, or by any means, electronic or mechanical, including photocopying, recording any information storage and retrieval system, without permission in writing from the publisher. Printed in U.S.A. Subscription rates: $48 per year. THE LICENSING BOOK, THE LICENSING BOOK INTERNATIONAL, WORLDWIDE LICENSING and the “WLE” design, are trademarks and service marks of Adventure Publishing Group, Inc.® registered in the United States Patent & Trademark Office Postmaster: Send address changes to THE LICENSING BOOK, c/o Adventure Publishing Group, 307 Seventh Ave., Room 1601, New York, New York, 10001.
LICENSINGBOOK
®
THE
JACKIE’S POINT
Cover Art by Joe Ibraham
www.licensingbook.com
ADVENTURE PUBLISHING GROUP INC.® Vol. 31, No. 2, Spring 2015 President/Co-Publisher Laurie Schacht laurieschacht@aol.com
Co-Publisher Jonathan Samet jsamet@adventurepub.com
Co-Publisher/Editor-in-Chief Jackie Breyer jbreyer@adventurepub.com
Senior Editors Marissa DiBartolo mdibartolo@adventurepub.com
Ali Mierzejewski amierzejewski@adventurepub.com Associate Editors Christine Duhaime cduhaime@adventurepub.com
Phil Guie pguie@adventurepub.com Assistant Editor Deanna Atkins datkins@adventurepub.com
Editorial Intern Magdalene Michalik Production Director Bill Reese breese@adventurepub.com
Controller/Office Manager Lori Rubin lrubin@adventurepub.com ADVENTURE PUBLISHING GROUP, INC.® 307 SEVENTH AVE., SUITE 1601 NEW YORK, NY 10001 TELEPHONE: (212) 575-4510; FAX: (212) 575-4521
How do the top brands stay on top? Companies such as Apple, Microsoft, and Google are constantly making headlines for their latest innovations, policies, and products. Millions of people scrutinize their every move with high expectations. These are companies that evolve with the times. Actually, these are the brands that create the “times” with which we’re all trying to keep up. Not everyone can be the next big thing, or create the next big trend, but there’s plenty of room for multiple brands in consumers’ lives. The key is relevancy. So you didn’t invent the iPad or Netflix, but that doesn’t mean you shouldn’t take advantage of these ridiculously popular platforms with your content. Relevancy means you have to be where consumers are, and be available at any given time. Do you have an app? Do you have a really great app that engages consumers with your brand anytime, anywhere? Can they access your content when they are in a waiting room, standing in line at a store, or hanging out with their friends? Is your content available on demand? Streaming? On multiple platforms? This is the world we are living in today, and consumers are involving themselves with brands that offer them interaction
on many levels. In this issue, Associate Editor Phil Guie takes a closer look at multi-platform brands. These are brands that have found a way to reach consumers on TV and via apps, social media, etc. Read the feature on page 20. In a recent episode of Two Broke Girls, the character Caroline mentions “commercials, movies, and other things people don’t watch anymore.” While this assertion is a bit of an exaggeration, it’s a fairly astute observation of content consumption. More and more water cooler conversation surrounds what’s happening on shows that are found only “on-demand,” and it’s an area that’s ripe for licensing. Senior Editor Marissa DiBartolo explains on page 24. Speaking of being everywhere consumers are, how about QSRs? Have you ever wondered whether a quick-service restaurant partnership would be a good fit for your property? Wonder no more. Check out Assistant Editor Deanna Atkins’ analysis on page 38. And now that we’re hungry thinking about Happy Meals, let’s discuss the big flavor trends happening in the grocery aisles, and the opportunity this spells for food and beverage brands. Be sure to read Senior Editor Ali Mierzejewski’s take on page 30. ••••
The Licensing Book • 7
Licensing News SPORTS LICENSING
Licensing Expo Reveals Expanded Sports Lineup Licensing Expo has revealed an expanded sports lineup for this year's show. Held June 9 to 11 at the Mandalay Bay Convention Center in Las Vegas, Licensing Expo will welcome high-profile sports brands, including the Major League Baseball Players Association; National Football League Players Inc.; Tottenham Hotspur Football Club; Dominie Luxury; Kenekt; Nitro Circus Live; IMG Worldwide Inc.; and One Entertainment. One Entertainment represents Copa America, a major soccer tournament that will be held in the U.S. next June. More than 1.5 million people are expected to attend the competition. Additional soccer brands represented by One Entertainment include FC Barcelona, Manchester United, Cruz Azul, the Brazilian Football Confederation, the French Football Federation, the Royal Dutch Football Association, and The Football Association.
TV LICENSING
Get the latest licensing industry news delivered straight to your inbox each week for free! Subscribe to The Licensing Book’s Total Licensing Report by sending an email to subscribe@adventurepub.com, and add that address to your address book to ensure delivery. For up-to-the-minute news, follow The Licensing Book on Twitter: twitter.com/LicensingBook, “like” The Licensing Book on Facebook: facebook.com/LicensingBook, and visit our blog at www.licensingbook.com.
TV LICENSING
Hoho Entertainment, TotallyTween Partner for Mimi & Bibi
CBS Consumer Products Debuts Penny Dreadful Collection
Hoho Entertainment, the kids' production and rights management company behind Cloudbabies, has partnered with TotallyTween for Mimi & Bibi, an original 26-episode, two-minute animated series for kids ages 8 to 10. Mimi and Bibi are twin sisters who are complete opposites: Mimi is sweet, good, and on a mission to perfect the world; Bibi is a rebel without a cause. TotallyTween is a safe and secure online environment for girls ages 8 to 12 in the UK. TotallyTween allows girls to discover, discuss, and create in an eclectic online community that covers film, books, music, fashion, health, fitness, animals, food, crafts, and social issues. Content is created for tweens, by tweens. Each episode of Mimi & Bibi will be the result of tween input and interaction from the TotallyTween audience. The show will celebrate and encourage difference as the twins debate from opposite sides of the spectrum in a fun and humorous way. Hoho Rights will sell Mimi & Bibi globally, and has developed a product range that reflects the twins’ differing points of view.
CBS Consumer Products, Showtime, and Hot Topic have collaborated for an apparel line inspired by the series Penny Dreadful, set to coincide with the second season, which will premiere May 3. Hitting stores later this month, Hot Topic will feature an exclusive Penny Dreadful-inspired line of women’s clothing, including tanks, dresses, and jackets incorporating the macabre imagery and themes from the show. Starting May 26, Hot Topic will put the line on full display with Penny Dreadful window designs in select Hot Topic stores nationwide. All stores will feature promotional in-store signage through June 7. Titan Books is publishing The Art and Making of Penny Dreadful, a behindthe-scenes book that unearths the show’s secrets. Also debuting this spring are Penny Dreadful table linens and home accessories from Museum of Robots; glassware, impulse, and décor from Just Funky; and on-demand products from Gold Label. Rolling out later this year, Cryptozoic will unveil trading cards; USAopoly will launch a CLUE: Penny Dreadful Edition and a collectible sculpted scene of the Rebirth of Brona; Bif Bang Pow! will expand its current offerings to include new character action figures and prop replica-style journals; Tonner Dolls will debut high-end fashion dolls; and Rizzoli will publish a 2016 wall calendar.
8 • The Licensing Book
Spring 2015
TV LICENSING
Rubie’s Licenses Paw Patrol Rubie’s Pet Shop Boutique has launched officially licensed pet costumes for Paw Patrol. Designed for dogs, the Paw Patrol costume collection features detailed outfits of Marshall, Chase, and Skye. Costumes for each character are available in small, medium, large, and extra-large sizes. In addition, Rubie’s Costume Co. also offers Paw Patrol costumes for toddlers.
ENTERTAINMENT LICENSING
Warner Bros., DC Entertainment Partner with Mattel for DC Super Hero Girls This fall, DC Entertainment, Warner Bros. Animation, Warner Bros. Consumer Products, and Mattel will launch DC Super Hero Girls, a new universe of female superheroes and villains. The new franchise targets girls ages 6 to 12 and features DC Comics’ female characters as relatable teens, including Wonder Woman, Supergirl, Batgirl, Harley Quinn, Bumble Bee, Poison Ivy, and Katana. With a completely new artistic style and aesthetic, these female icons will make their unprecedented teenage introduction. Each character will have her own storyline, including discovering her unique abilities, nurturing her remarkable powers, and mastering the fundamentals of being a hero. The initial launch of DC Super Hero Girls will include an immersive digital experience, original digital content, and digital publishing—providing opportunities for girls to interact with characters, learn about the storylines, and engage in customizable play. TV specials, made-forvideos, toys, apparel, books, and other product categories will begin to roll out next year. As master toy licensee, Mattel will launch a line of action figures and fashion dolls featuring strong, athletic bodies.
Spring 2015
LIMA Update
The One-Stop Shop to Learn Licensing The Licensing University program at Licensing Expo has something for everyone, from beginners to veterans. by Martin Brochstein, senior vice president of industry relations and information, Licensing Industry Merchandisers’ Association (LIMA)
rom the outside, the licensing business often looks pretty simple: Take a character or a logo, combine it with a product, get it onto a retail shelf, and voilà, riches for all! Of course, it’s never been quite that easy and seamless, and a look at the educational sessions that we’ve assembled for the upcoming Licensing University program in conjunction with Licensing Expo this June illustrates the many facets and challenges of creating an effective licensing effort, whether as a licensee or a licensor. One of the biggest challenges is the final one on the licensing food chain: dealing with the ever-evolving consumer marketplace and retail landscape. All Licensing Expo attendees are invited to the opening Executive Keynote Panel on Tuesday, June 9, from 8 to 9 a.m., where four major retail and branding executives will discuss “The Future of Retail.” Panelists include: • Richard Barry, executive vice president, chief merchandising officer, Toys “R” Us Inc., who leads all merchandising initiatives for the company’s U.S. operations, including Toys “R” Us and Babies “R” Us stores nationwide and the FAO Schwarz flag-
F
”
One of the biggest challenges is the final one on the licensing food chain: dealing with the ever-evolving consumer marketplace and retail landscape.”
10 • The Licensing Book
ship store in New York City, as well as the company’s dedicated e-commerce sites. • Dow Famulak, president, Global Brands Group Holding Ltd. (GBG), responsible for managing GBG’s business operations globally. In 2000, he joined Li & Fung and assumed various senior management roles in Asia, Europe, and the U.S. before moving into his role at GBG. • Mike Fitzsimmons, founder and CEO, Delivery Agent Inc., which has become a “trailblazer in shopping-enabled media, powering contextual commerce for major TV networks including NBC, FOX, CBS, HBO, and Discovery; device manufacturers including Samsung and Roku; recording artists from Dave Matthews to Katy Perry; and hundreds of brands and advertisers including H&M, Toyota, and Pepsi.” • Lisa Harper, CEO, Hot Topic Inc., a leading mall and web-based specialty retailer operating the Hot Topic and Torrid concepts. The company operates more than 950 stores in the U.S. and Canada. The panel is a highlight of the extensive Licensing University educational program of more than 20 major seminars and presentations from experts in licensing, marketing, law, and retail. As always, the Licensing University program begins on the day before the Expo with a full offering of basics courses, designed for those relatively new to the business. That same day, we’ll also stage our firstever Digital Media Licensing Summit, focusing on
Spring 2015
some of the emerging digital platforms from which licensed product opportunities are emerging. Over the ensuing three days, we’ll offer a full slate of seminars and presentations that will give attendees the chance to broaden their knowledge on everything from fashion to sports, art to corporate trademarks, social media to royalties to brand protection. This year, for the first time, the Licensing University slate will also include a full morning of roundtable workshops, giving Licensing University registrants the chance for small-group interaction with experienced practitioners covering a wide range of topics including: • Accounting Issues in License Agreements: Moderated by Andrew Koski, partner, Miller Kaplan Arase LLP • The Convergence of Play and Multiple Platform Branding: Moderated by Richard Gottlieb, CEO, Global Toy Experts • Creating a Compliance Regimen: Moderated by Susan DeRagon, senior technical consultant, Toys & Premiums, North America, UL Verification Services • Don’t Just Build a Style Guide. Build a Retail Program!: Moderated by Stan Madaloni, president, Studio2pt0 LLC • Getting Gen Y to Buy: Moderated by Elisa Webb Hill, senior consultant, XYZ University • How to Win at Retail: The Five Rules: Moderated by John Parham, president, director of branding, Parham Santana • “In the Trenches” Selling of Licensed Products: Moderated by Jim Sachs, partner, Harris-Sachs LLC • Licensed Publishing in the Digital Age: Moderated by Karen Raugust, founder, Raugust Communications • Licensing for 3D Printing: Moderated by Scott Sellwood, vice president business development, Source3 • Licensing Niche Brands: Moderated by Melissa Fraley Agguini, principal, Moza’s Closet/MFA Associates • The Licensing Tightrope: Feeding Fan Demand
Spring 2015
While Building Brand Longevity: Moderated by Tamra Knepfer, co-president, Knockout Licensing • Licensors: Don't Get Burned by Bad Contract Language: Moderated by Sidney Blum, managing director, Stout Risius Ross • Nuts and Bolts of Starting a Licensing Program from Scratch: Moderated by Marie-Cecile Girard-Jones, executive general manager, Hasty Pudding Institute • Preparing Your Brand for Licensing: Moderated by Christine Cool, licensing area manager, Perfetti Van Melle • Revitalizing Classic Brands: Moderated by Ian Downes, owner, Start Licensing • What You Need to Know About Licensing in Mexico: Moderated by Dalia Benbassat, vice president development and corporate relations, Tycoon Enterprises That’s a lot of content to digest, and Licensing University provides industry professionals with a great opportunity to do so in one place. For more information, visit www.licesingexpo.com/licensing expo/content/licensing-university. See you in Vegas! ••••
”
This year, for the first time, the Licensing University slate will also include a full morning of roundtable workshops, giving Licensing University registrants the chance for small-group interaction with experienced practitioners covering a wide range of topics.”
Marty Brochstein joined Licensing Industry Merchandisers’ Association (LIMA) in 2008. Brochstein was a business journalist for more than 20 years, covering the consumer products and retail industries. He spent five years as senior editor of Television Digest and was the founding editor of Consumer Multimedia Report. He was also editor of Consumer Electronics Monthly and Electronics Merchandising, and spent time with Discount Store News, Chain Store Age, and Home Furnishings Daily.
The Licensing Book • 11
S TAT S HOT
Top 2014 U.S. Video Game Licenses based on dollars
1. 2. 3. 4. 5.
National Football League National Basketball Ass. FIFA Disney All Other* Lord of the Rings
6. Batman 7. Lego 8. WWE 9. National Hockey League 10. Marvel Super Heroes
*All video games that are not part of the Disney Princess catalogue of games
Top 2014 U.S. Toy Licenses based on dollars
1. Disney Frozen 2. Teenage Mutant Ninja Turtles 3. Disney Princess 4. Star Wars 5. Mickey Mouse and Friends
6. Minecraft 7. Doc McStuffins 8. Spider-Man 9. Thomas and Friends 10. Disney All Other
Source: The NPD Group Inc./Retail Tracking Service, Year-end 2014
Top International Toy Brands
Editors from the International Toy Magazine Association took a few minutes to reflect on top toy brands by answering the following questions: 1. What are the top-selling licenses for toys in your country at the moment and why, in your opinion? 2. What is the value of the licensing market in your country? What percentage of toy sales is licensed? 3. Which licensed products are popular in your country? Lena Hedo, Lek&Babyrevyn, Sweden: 1. Disney Frost is very strong right now, as is Teenage Mutant Ninja Turtles (TMNT), Doc McStuffins, and Skylanders.
Ania Wakulak, Swiat Zabawek, Poland: 1. The most popular licenses are Star Wars, Disney•Pixar Cars, Disney Planes, Disney Princess, Angry Birds, Disney Frozen, Winnie The Pooh, Monster High, My Little Pony, and Mickey Mouse and Friends. 2. About 20 percent of the toy market. 3. Blocks, dolls, and plush.
Emili Alsina, Juguetes B2B, Spain: 1. Regarding boys’ licenses, this year the top license will be Star Wars. This license has really important partners in almost every toy category, and all distribution channels are competing to become the top Star Wars seller. We also want to highlight the Marvel superheroes, such as the Avengers, and DC Comics with Superman and Batman. Moreover, Minions will be important, as the movie is being released this summer. Regarding girls’ licenses, the market is more fragmented. Licenses such as Disney Frozen and Peppa Pig will still be present in
12 • The Licensing Book
the market, while new ones, such as Cinderella and Descendants, will appear. 2. Licenses are brands, and therefore consumers recognize them and want them. They provide products with a more appealing image and make them different. Spain is the country with the highest value of the licensing market in toy sales, around 30 percent. 3. Disney Frozen for dolls, costumes, back-to-school, and apparel; Star Wars for construction; Minions for back-to-school and apparel; TMNT for action figures and apparel; and Marvel’s Avengers for costumes and back-to-school. Jeroen Coteur, Kids Universe, Belgium: 1. The most popular licenses in Belgium are Violetta, Disney Frozen, Disney•Pixar Cars, Disney Planes, Paw Patrol, TMNT, and Minions. 2. The most recent figures state this is around 21 percent, which is slightly lower than the European average. 3. In December, Paw Patrol plush were popular and sold out quickly.
Scarlett Wisotzki, Das Speilzeug, Germany: 1. Popular licenses in Germany are DreamWorks Dragons, Disney Frozen, Mia and me, Minions, Paw Patrol, Star Wars, and the superheroes of Marvel and DC Comics. 2. According to The NPD Group, licenses represented 19 percent of total toy sales in Germany last year. 3. We have an abundance of successful licensed products. They include Disney Frozen costumes from Rubie’s Costume Co., Paw Patrol role-play items from Spin Master, Star Wars construction toys from Lego, Worry Eaters plush from Schmidt Spiele, and others.
Spring 2015
LIMA UK
All the World’s a Stage, and All the Licensing Experts Are Players
I
by Kelvyn Gardner, managing director of Licensing Industry Merchandisers’ Association (LIMA) UK n the UK, LIMA makes it a policy to do a lot of outreach to other industry sectors. A combination of common sense and experience tells us that—though already a substantial business—licensing only touches a minority of consumer goods producers. It’s probably equally true that there are thousands of brands out there that are not currently in the licensing market. The publishing business is one where licensing plays a key role for a few, but is ignored—or at least, not understood— by many. We have always had a great deal of licensing business conducted at the Bologna Children’s Book Fair in Italy, which takes place annually around the beginning of April. Indeed, as a licensee myself back in my Merlin Publishing days, it was a permanent fixture in my schedule for both the Italian and international licensing business. Nowadays, we have the Bologna Licensing Trade Fair running alongside the book fair, too, as well as London Book Fair, which is a different kettle of fish. Rights, of course, are the lifeblood of publishing, but are most frequently limited to author, language, or edition rights. Licensing agencies with dedicated publishing executives will go along, but that’s about it. While London does not have the kids’ focus of Bologna, it is a much bigger event, outdone only by the Frankfurt Book Fair in October. This year, London Book Fair was bathed in early April sunshine, and we were there to offer general licensing advice to publishers, as well as to host three separate seminars covering topics including the licensing business for publishers, children’s licensing, and the world of digital licensing wrapping in apps, websites, and other digital media. The children’s licensing event was a new experience for me. Billed in advance as a “silent seminar,” the event was held in the Multimedia Theatre, jammed into a very
Winter 2014
busy corridor on the Grand Balcony, alongside London Book Fair’s new video games-focused instant networking zone. It turns out that the presentational style adopted was inspired by “Silent Disco” nights. It soon became clear why, in that around the “Theatre” (a rather posh word for 20 benches surrounded by the visiting LBF crowds), all was noise, hubbub, and vivacity. All the attendees were equipped with headphones, and myself and my fellow presenter, Julia Posen from Walker Books, donned microphone headsets to address our audience. It worked remarkably well, and the seminar really connected. I probably should have asked why my digital licensing presentation was not required to be done in the same format. For the latter, I was gratified not only by the audience response, but also by a remark from the audio/visual technician, who, at the end of my presentation—which took place with only three hours of the event still remaining—told me that mine was the most interesting seminar he’d heard all week. Strike another blow for licensing—I reckon that means they’ll have us back next year. ••••
”
The publishing business is one where licensing plays a key role for a few, but is ignored—or at least, not understood—by many.”
Kelvyn Gardner has been in the international licensing business for almost 30 years. Since 2006, he has served as the managing director of the UK division of LIMA. Gardner contributes to the judging of the UK Licensing Awards and is a trustee of the industry's charitable company, The Light Fund.
The Licensing Book • 13
Talking Social Media
b r a n d
Launching Your
S
by Marissa DiBartolo
ocial media gives consumers a way to directly interact with brands they love. While popular household names, such as Tide and Lego, have hundreds of thousands of Twitter followers, brands that are just getting off the ground can use social platforms to gain vital consumer awareness. Having a presence on social media is integral to the success of a brand, and strong content, messaging, and engagement can quickly result in a loyal following that will rival well-known household names. Here are a few tips to follow:
pick your poison
There are so many social media platforms to consider, with new frontrunners constantly emerging. From mainstream favorites such as Twitter and Facebook, to new flavors of the week like Snapchat and Pheed, it’s important to do your research and choose the platforms that are right for your brand. Don’t spread yourself too thin; if a certain platform seems totally wrong for you or you don’t understand how to use it effectively, don’t. Time is money, and you don’t want to waste your efforts on a platform that won’t have enough of an impact because your target audience isn’t using it. Similarly, don’t open an account if you don’t intend to post regularly.
know your message 14 • The Licensing Book
Whether you decide to utilize one social media platform or 10, be sure that your messaging is consistent across all of your accounts. Once you grab a consumer’s attention in one space, he or she will
on Social Media
likely want to connect with you in other ways, and you want to provide similar messaging no matter where a consumer is interacting with your brand. However, make sure each platform does something unique. You don’t want to simply copy and paste identical content on different platforms or consumers will get bored and stop paying attention. Remember: Consistency is more effective than redundancy.
begin with a boost
Buying followers on any social platform is never the way to go. Paying a third-party company for follows, likes, views, etc. is considered “black hat” in the SEO world because the accounts are typically fake bots instead of real people. Using these services could result in blacklisting from Google. Grow your following organically with great content, time, and effort—it will pay off in the end. That said, using paid ads on Twitter and Facebook or promoting your posts are good ways to go if you have some funds to put against your social accounts. These actions will give you a great boost to get you off the ground and are “white hat” tactics to get more followers in a short amount of time. There’s no shame in utilizing Twitter or Facebook ads or boosted content to get your brand in front of more people.
create unique content
Social media is all about sharing. Going viral is like winning the lottery, because it gets you quick and easy brand exposure at an incredibly rapid pace, connecting your
Spring 2015
brand to millions of people. But, keep in mind that the Internet is unpredictable and your chances of going viral are slim. When creating content that you really want users to share, think in terms of the three Hs: humor, heart, and hunger. Most people can relate to these three things in some way. People love a good laugh, things that move them to tears, and, well, pictures of food. If you can make any of these three things relate to your brand and then spin it into a meme, GIF, or short video, you’re golden.
give away product
No secret here—people love free stuff. Hosting quick giveaways, Twitter and Facebook parties, and long-term sweepstakes allow people to engage with your brand on social media, and it also gets some product into the hands of consumers who love to share. You can use giveaways as an opportunity to gain followers and teach consumers about your brand. Challenge them to read a product review, visit your website, or answer a trivia question about the brand to win a prize. This will cost you very little in terms of product and shipping, and the payoff is huge. Be aware that every social media platform has different rules regarding giveaways and sweepstakes. Make sure you are familiar with each site’s regulations and that you follow all of the rules, as illegal giveaways can result in penalties. Similarly, be sure to have your own set of legal rules posted publicly so you will not be held liable for any issues that may occur. For example, will your giveaway be open to U.S. residents only? How long do consumers need to wait to receive their prize? How many times can they enter? Answer every possible question before your giveaway launches. Bloggers, media experts, and celebrities are extremely influential groups of people. Find ones that are a good fit with your brand and establish a relationship. Working with these types of people—whether on a long- or short-term basis—will establish a presence for your brand on social media quickly. Some of these men and women have hundreds of thousands of followers, and a simple tweet, Instagram post, or YouTube video
find partners
Spring 2015
can make millions of impressions. These steps will ensure your brand kicks off on the right foot, but once you have established your social sites, make sure you don’t fizzle out. Here are some tips and tricks to keep in your back pocket when navigating these waters:
share other content
Social networking is exactly that—networking. Don’t be afraid to share content from other companies. Maybe avoid direct competitors, but find things that somehow relate to your brand or find different brands with a similar audience and share their content—especially if they have large followings. Respect is mutual in the social world, and you never know—that brand could turn around and share something of yours, exposing your brand to their much larger following.
know the trends
Trending topics are extremely important in the world of social media. Whether people are pouring buckets of ice water over their heads, or everyone is up in arms over the color of a dress, it’s important to stay on top of the latest trends and find a way to relate to them. If everyone is talking about one specific topic, then hop aboard the gravy train and tie the trend into your brand however you can. Or, simply share what’s going on and ask people what they think about this week’s trending topic. Trends come and go extremely fast, but you can grab a piece of the viral pie if you know what’s going on and can respond and engage quickly.
stay signed on
Social media is a 24-hour job, meaning you need to be ready to answer questions, engage, share, and comment on a constant basis. If you go a day or two without posting or answering a direct message, consumers will notice. Take the time, effort, and energy to make sure you are signed in at all times. Use third-party scheduling apps such as HootSuite and TweetDeck to help keep you on track during times when you know you’ll be busy. That way, you can ensure you are still posting even when you can’t be as attentive. ••••
The Licensing Book • 15
Brand Management
BUILDING A BRAND
B
in the AGE OF MOBILE SHARING
by Simon Uwins, author, Creating Loyal Brands
rands were once the creatures of marketing, created primarily through advertising, and kept completely separate from the company behind them. However, the marketing world has been turned upside down with the rise of new media, and today, marketing is just one component of building a brand. The rise of the Internet and powerful search engines allowed consumers to easily find out about the company behind a brand and what competitors had to offer. They could also read reviews about a brand, company, or product from experts or customers. Next, the rise of social media allowed consumers to quickly find out what their friends and family members thought about a brand. They could even have conversations with the people behind the brand, and observe how those people interacted with other customers. And now, there are mobile smart devices. Suddenly, consumers have access to all of this information and opinions on the go, 24 hours a day, seven days a week—even while they are out shopping. As a result of these changes, brands are no longer images created solely by marketing. Instead, brands are defined by the experiences customers have with them, and by the sharing of those experiences online. Potential customers can have an opinion about a brand without ever being directly exposed to it through traditional advertising. Delivering a great customer experience requires all
16 • The Licensing Book
aspects of a company to work together, so that whenever or wherever a customer interacts with the brand, it feels like a coherent whole. Achieving this requires a very different approach to brand management. The following simple, five-step framework will help ensure the brand voice rings clear to consumers no matter where they interact with it: • Stand for something. Develop a core purpose, rooted in improving people’s lives, which will inspire employees, customers, and communities alike. • Create value for customers. Earn the right to exist by creating something that’s useful, affordable, and has meaning for consumers. • Build brand and organization as one. Embed a brand culture around the core purpose that lives and breathes the brand. • Engage around your story. Develop a compelling story around the core purpose, and engage employees, customers, and communities in telling it. • Say “thank you.” Look after your customers, make them feel appreciated, and build relationships with them over time. Building brands in this way may not have the glamor of the Mad Men of old, as it requires extensive collaboration across an entire business. But it goes right to the heart of why a company exists, the value it creates for customers, and how it behaves. Rather than a creature of marketing, the brand itself now embodies what the company is. ••••
Simon Uwins is a former CMO of fresh&easy and Tesco UK. A brand loyalty guru, he’s author of the book Creating Loyal Brands..., writes a weekly column in Supermarket News, and teaches a graduate course on branding and loyalty at USC Annenberg School of Communication.
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Second Annual Blogger Bash Connects Brands with Influential Consumers
by Laurie Schacht, Toy Insider Mom, founder, Blogger Bash
he second annual Blogger Bash two-day conference is set to take place on July 16 and 17 at Pier Sixty in New York City. Revolutionizing the way brands and bloggers connect, the event will welcome more than 400 bloggers, 150 members of traditional media, and more than 100 brands to meet and mingle in an exciting party atmosphere. From kids’ entertainment brands to music, high-end fashion, and the best in baby care, Blogger Bash has something for everyone. Last year, the event made a huge splash on social media, with more than 120 million Twitter impressions. Brands such as Hasbro, Rovio, Anne Geddes, Warner Bros. Interactive, Chicken Soup for the Soul, Johnny Rockets, Sony Legacy, Crayola, WWE, and more brought their latest and greatest products to show off to the most influential consumers in the digital arena. These brands were able to connect with seasoned bloggers with an average of more than 78,000 UMVs per
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month and an average Twitter following of 10,000. Parent bloggers have become some of the most influential voices when it comes to promoting brands and new products across all industries, and Blogger Bash is the perfect way to connect with them. Whether you want to host a party that is all about you, or if you want to be part of a larger themed party, such as The Toy Insider’s Sweet Suite toy event, or host an off-site mini event to really generate buzz, there’s something to fit every brand and every budget. With a relaxing and fun environment, Blogger Bash will once again provide the perfect opportunity to grow your blogger network, receive invaluable feedback on new product introductions, and find new brand ambassadors. And—these bloggers know their stuff. In the age of the Internet, social media matters and these bloggers have a lot of influence on YouTube, Facebook, Twitter, Instagram, and more. If you are interested in learning more about getting involved with Blogger Bash this summer, please contact Laurie Schacht at thetoyinsidermom@gmail.com or (212) 575-4510, or visit www.bloggerbash.com. ••••
The Licensing Book • 17
A Look Inside
A World of
Awaits Licensees
Discovery Consumer Products Increases Retail Presence with Engaging New Initiatives.
S
hark Week is Discovery Channel’s annual TV event, as well as a global popculture phenomenon. A staple of Discovery’s summer TV lineup, it is poised to be a key property for the brand at retail. Consumers can celebrate Shark Week in style this summer, with a wide range of apparel from Bioworld available at Target, Wal-Mart, discoverystore.com, and more. Unique kid-themed shower curtains, hooded towels, and adult beach towels developed by Jay Franco will also be available at Target. Updated great white and brand new hammerhead plush items from Wild Republic, along with themed play sets and all-new, 100-piece Shark Week puzzles featuring sharkand ocean-themed designs will be available at Toys “R” Us. Building on last year’s success, the Shark Week products will be featured in the Hot & New shop at the front of stores. Additional new items for this year include gold, silver, and silver-plated copper nickel collectible coins featuring a great white shark, a tiger shark, or a hammerhead shark available at govmint.com. A 2016 Shark Week wall calendar, created by Sourcebooks, as well as Sharkopedia: The Complete Guide to Everything Shark, published by Time Inc., will be available at discoverystore.com. Discovery Consumer Products will offer more Shark Week merchandise, giving retailers and consumers everything needed to kick off Shark Week on July 5, and to celebrate all summer long. To continue the shark frenzy momentum, Discovery will seek additional partners at this year’s Licensing Expo to help grow the Shark Week brand as rapidly as the TV event itself. Additionally, Shark Week is expanding worldwide, with programming in Europe, Latin America, and Canada, transforming the property into a global opportunity for licensees and retailers.
Robert Marick, vice president of licensing, North America:
The Licensing Book: The shark has evolved into a cultural phenomenon. How does Shark Week remain exciting and fresh for consumers both as in-home entertainment and at retail? RM: The shark is one of nature’s most mysterious and fascinating creatures. It is only natural that people are instantly attracted to the allure of shark programming and a close-up look at one of the ocean’s top predators. The recent spark in awareness and interest worldwide across the pop culture space only fuels the intrigue that Discovery Channel has been driving for nearly 30 years. Shark Week is the original entertainment property dedicated to all things shark, which creates a trust with viewers and consumers that other brands can’t replicate. We have a dedicated audience and it’s our job to create compelling products for fans of all ages that enhance their Shark Week experience and inspire curiosity year after year. It’s this passionate fan base that’s propelled Shark Week beyond a seven day experience, ultimately creating the 2015 Summer of the Shark.
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D
iscovery Expedition (DX) is an outdoor apparel and lifestyle brand that encompasses the Discovery DNA. The Discovery Channel reaches more than 2.5 billion households in 220 countries, is recognized by more than 71 percent of the population worldwide, and satisfies a thirst and thrill for the outdoors. This has led to huge success for the DX brand throughout Asia, where apparel—including high-performance jackets and pants—has proven to have the strongest traction. Last year, DX achieved top 10 awareness among more than 30 top outdoor brands in Asia, increased its retail presence to nearly 200 locations, and brought on two popular Discovery Channel personalities to support the brand: survivalists Bear Grylls and Joel Lambert for Asia and worldwide, respectively. In China, DX partners with Fei Fan Tan Suo Outdoor Products Co. Ltd., an outdoor products provider, and with F&F in Korea. Based on its success in Asia, DX is positioned to become a global property, and is adapting to fit the needs of consumers worldwide. Discovery Consumer Products is actively looking for partners to bring the brand to retail for consumers worldwide.
Richard Henson, director of licensing, Asia-Pacific:
The Licensing Book: Discovery Expedition retail stores are rapidly expanding across Asia. What are the key attributes of the DX brand that allow it to resonate among the top outdoor retail brands for consumers? RH: Working with best-in-class partners allows us to stay on-trend and connected with the purchasing habits of DX consumers. Fashion is inherently fast-moving; in response to this, our DX licensees adopt and design two collections per year to meet the demands of their local market. Extending the very essence of Discovery DNA into our retail experience has been crucial in establishing traction with consumers. Under the direction of the Discovery Consumers Products design team, our licensees have delivered on-brand store designs, inspiring adventure and freshness to the DX product, as well as the overall shopping experience. The DX retail stores allow consumers to experience the full story at once; they bring what they view on Discovery Channel to the real world and deliver more than simply a retail outlet, but an ideal reminder of what the brand stands for.
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his new, family-oriented line of equipment allows consumers to experience new destinations and cultures through accessible travel. Discovery Adventures features equipment for outdoor fun and exploration, and targets spirited adventurers who want to expand their horizons by experiencing the world around them. Discovery Adventures offers a full range of Discovery-approved products and experiences across North America, Europe, Asia, and the Middle East. At Licensing Expo, Discovery Consumer Products is seeking partners to bring the Discovery Adventures spirit to life in various categories. From camping equipment such as tents and sleeping bags, to luggage and travel accessories, as well as electronic gadgets and books, the goal is to make the outdoors accessible and fun for all ages and levels of expertise.
Ian Woods, senior director of licensing, Europe and Latin America:
The Licensing Book: Discovery Adventures currently offers a trustworthy brand to equip the whole family for new travel adventures. What types of partners are you actively seeking in order to extend this program, and why? IW: Discovery Adventures offers armchair explorers and curious campers the opportunity to seek the outdoors, whether it’s experiencing a new travel destination or culture, or exploring their own backyard garden. This accessible brand will encompass a wide variety of products ranging from camping to travel, providing families with the tools to experience the outdoors together. We are looking for new partners that are as enthusiastic about the surrounding world as we are, and can bring innovative products to consumers.
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The Licensing Book • 19
Go BIG, but Stay Honed With more social platforms and media options than ever, brand owners must be tech-savvy and smart in their strategies. by Phil Guie
oday’s consumers want their entertainment brands at the ready. They want them wherever they go, and they want them to be available at all times. Consumers are also more immersed than ever in social media platforms such as Facebook, Twitter, and Instagram, which serve as potential online access points for brands. By leveraging their presences at these sites—as well as on streaming video platforms such as YouTube—brands have the power to reach out to audiences, and to keep them coming back. Unfortunately, this type of strategy is easier spoken of than done, since brand audiences are not necessarily dispersed equally across all social media platforms. The formula for an effective multi-platform brand marketing approach requires careful research, creativity, and discipline. “To be a healthy brand in this marketplace, you have to be thoughtful of different ecosystems and how the brand is expressed, and how fans and consumers ultimately connect with the brand,” says Kendall Doty, vice president of digital for Saban Brands, which owns the Power Rangers entertainment property.
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Care Bears and Cousins
Being Everywhere You Have to Be
According to multiple brand owners, one of the most important steps to successful multi-platform brand marketing is dealing with a fragmented audience. That does not mean dispersing resources across one or many platforms, but reaching as broadly as possible, across differ-
20 • The Licensing Book
ent demographics. In the case of the Care Bears brand, owned by American Greetings Properties (AGP) Inc., the strategy makes sense. While Care Bears has a core demographic between the ages of 3 and 6, it also has an audience ages 35 and up that has nostalgic feelings for when the brand first premiered during the early 1980s. On digital platforms, Care Bears communicates with its younger fan base through animated clips on YouTube, an app series, the upcoming Care Bears and Cousins series streaming on Netflix, and more. At the same time, AGP also posts clips of Care Bears cartoons that originally aired during the ’80s on its YouTube channel, as a way of simultaneously appealing to older audiences. “It’s similar storytelling, but for the newer series, the look has been updated and the stories themselves are more relevant to today’s children,” says Janice Ross, head of licensing for AGP. “We have, thankfully, a wealth of content for Care Bears, and what’s important is that the core attributes are always the same: sharing, caring, and problem solving.” Similarly, Saban’s Power Rangers YouTube channel includes clips from the latest entry in the franchise, Power Rangers Dino Charge, as well as footage from prior series, Power Rangers Megaforce and Power Rangers Samurai. Having been in existence for more than 20 years, the brand appeals to a wide range of consumers, from young and nascent to grown-up fans. These various demographics can be found hanging out on different social platforms, which necessitates a similarly diverse approach to engaging them. “You don’t just say, ‘Facebook is a really big thing, so let’s shift our money there,’” says Doty. “You have
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to be everywhere your fans are, whenever they want your brand, or else they’re going to move on to somebody else’s.”
What’s Yours Is Mined
Power Rangers social media image
Currently, Saban has a presence on Facebook, Twitter, and YouTube, to name a few platforms. It utilizes mineable data—audience size, response rates, Like and Share numbers on Facebook—as well as qualitative data (fan comments and feedback) to inform its direct marketing strategy. (The majority of Saban’s entertainment properties are kids’ shows, and as such, the company is very respectful of applicable privacy laws.) According to Doty, the qualitative data may be more important than the numbers. “If you’re really looking at how consumers are engaging with your brand, you’re looking at who’s commenting or if they are sharing it with their network,” she says. “[That’s] an endorsement from a real person. You’ve created content that your fans want to claim as their own and share with their network.” McFarlane Toys, a licensee for the popular entertainment brand The Walking Dead, also utilizes social platform data for its licensed toys. Like Doty, founder Todd McFarlane finds fan feedback to be especially valuable, and his company will utilize it when devising polls to determine which characters to add to a product line. The polls appear across McFarlane Toys’ various social media sites, since the toymaker opts for a broadswath strategy that includes Facebook, Twitter, Instagram, and SnapChat. “Social media is water that is just undulating all the time,” says McFarlane. “The people that come in here that help me do it on my end, I constantly tell them, ‘Don’t ever think, on any given day, that we know what this thing can actually do for us.’”
Custom Content Is King
For its multi-platform strategy, Saban develops custom content on each platform in which fans are engaging with its brands. Since different social media platforms draw different demographics of consumers,
22 • The Licensing Book
the focus is on treating each platform as its own custom experience. Saban, for example, uses its Twitter program to post profiles of each Power Rangers cast member, and other content intended to drive viewership to the weekly show broadcast. By contrast, content posted to Instagram is more geared to a post-viewing audience. “We look at target demographics, and all of the platforms we want to be on, and make sure we’re approaching each with a custom approach as far as where we’re posting, and what we’re posting,” says Doty. Similarly, for The Walking Dead, licensor AMC has experimented with content and promotions across a range of platforms, including Twitter Q&As, Instagram takeovers, Google hangouts, and exclusive videos. “What works on one platform won’t necessarily be as engaging on another platform, so we’re always thinking about what will most resonate with fans and what they’re looking for from every touch point,” says Linda Schupack, executive vice president, marketing, AMC. For both brand owners and licensees, a popular form of original content is fan contests, which can be customized for the specific platform. For example, AGP includes a creative crowdsourcing site, Tongal, in its multi-platform approach. Last year, the company held a contest, inviting Tongal community members, who are also creative Care Bears fans, to pitch ideas for a video project. The pitches had to be 140 characters or less, and two winners were eventually chosen from among the entrants. “It’s fun and clever, and really taps into the digital mindset we all have,” says AGP’s Ross. Through a follow-up Tongal competition, filmmakers pitched outlines for three 60-second spots based on the winning ideas. One of the Tongal videos will be the centerpiece of AGP’s Share Your Care campaign, premiering in early summer. “At the end of the day, it’s about how you engage the consumer and get them to share their Care,” says Ross. “When you talk about immersive experiences, it’s really got to be about, ‘Hey, you love our brand. Tell us what you think about it.’ Getting that sort of interaction with people, and that connective approach, is just so much more powerful, because they get some ownership of it.”
Crafting a Seamless Experience
After identifying key platforms where the audience
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lives, the next step is to keep fans involved over time. Saban has created a cadence for releasing new specialized content for each of its platforms. The releases are intended to maximize both the platforms’ capabilities as well as content intentions, and to build up to a moment that fans find both appealing and exciting. “It depends on the brand and the specific minicampaign we’re addressing, but we look at it from a digital ecosystem perspective, and make sure we’re continuing a loop of user engagement throughout that ecosystem,” says Doty. “We may not intend for an audience from social to convert to, say, a web experience, which has not been shown to work as well. So instead, we’ll drive them from the web to YouTube.” AMC has turned The Walking Dead into a yearlong, 360-degree immersive experience for its fans, so it encourages cross-promotion across all of its platforms. A live aftershow, Talking Dead, which airs after each new episode of The Walking Dead, highlights realtime Twitter comments, conducts polls and quizzes, and will Skype with fans and take phone calls on air. “That real-time interaction on Talking Dead is so important in bringing The Walking Dead community together, and extending the experience of the show even further,” says Schupack. Some brand owners such as Outfit7, the owner of the Talking Tom and Friends brand, which began as a series of apps but has since expanded to a web series and a recently launched 3-D animated series, find clever ways to cross-pollinate. In the My Talking Tom and My Talking Angela apps, users can play with, feed, and put the title characters to bed. However, once sleeping, they dream YouTube videos, which has helped to boost viewership of Outfit7’s YouTube channel. According to Iza Login, one of Outfit7’s founders, once users have bonded with a branded character, they want to see them everywhere, including on their computers, TVs, and mobile devices. “There’s always a bit of magic when the consumer likes a character, and as we expand the brand, we can make that relationship stronger through having more platforms,” she says.
Braving Challenges Across Platforms
When it comes to crafting a multi-platform experience, brand owners will face obstacles along the way. For Outfit7, one of the biggest was adjusting to the production times of different content. An app might take a
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few months to finalize; by comparison, the Talking Tom web series, which premiered three years ago, spent about a year and a half in development. For others, the issues are similarly logistical. The consumer product ecosystem surrounding Power Rangers depends on introducing new themes, visuals, cast members, packaging, etc., during every first quarter. Each of the brand’s social media platforms must be updated on time, which Elie Dekel, president of Saban Brands, says happens like clockwork. “We’ve had a lot of years to perfect the system, and Power Rangers continues to thrive 23 years in,” he says. “It is one of the best examples of a brand that thrives on multiple platforms.” According to Dekel, much of the credit is due to having expert staff at key positions. “It does get into numerous levels of execution,” he says. “When we set up Saban Brands, a core part of the mission was to optimize all of it, that if we were to put like-minded people in these areas of expertise to drive these ecosystems, we would be able to succeed in this brave new world.”
Mobile-izing for the Future
Along with the question of which platforms their target demographics are congregating at, brand owners also need to ponder which mobile devices they use. Recently, both Ross and Doty oversaw web redesigns at their respective companies: For AGP, it social media image for The Walking Dead/ improved the responsiveness of McFarlane Toys giveaway contest the Care Bears site on iPads and smartphones. Saban made the site for its Julius Jr. property more landscape-oriented and tablet-specific, after learning that more than 25 percent of its web traffic was from mobile tablets. Doty sees events such as the recent “Mobilegeddon”—when Google changed its search algorithm, so that searches on smartphones now give greater weight to sites optimized for them—as a sign that mobile represents the future, including how consumers will interact with multi-platform brands. “Making sure you are taking advantage of what device your audience is on is a really critical piece for us,” she says. ••••
The Licensing Book • 23
SVOD •
•
•
Licensing in the New Era of TV
I
by Marissa DiBartolo
Kong: King of the Apes
n a world where content is king, consumers now have access to more of it than ever before. With the rise of streaming video on demand (SVOD) platforms, such as Netflix, Hulu, and Amazon Prime, comes an abundance of new original content, paving the way for new licensed products. Netflix’s live-action original series, Orange Is the New Black, has made waves with adults, becoming a pop-culture favorite as it moves into its third season this year. The show, centered on women in an upstate New York correctional facility, has sparked a light line of licensed products anchored by Halloween costumes and apparel. But adults aren’t the only ones watching original series on SVOD platforms. Kids are no longer bound to scheduled broadcast TV or a handful of channels and shows. Netflix has an entire interface designed just for kids, giving them unlimited access to full seasons worth of TV series whenever they want to watch them. Hulu and Amazon Prime have similar offerings for kids, with each platform launching its own raft of original content as well. Netflix is set to launch 15 new original series for kids over the next two years, including both animated and live-action shows. While these original series will not air
24 • The Licensing Book
over broadcast TV, licensees and retailers are tuned in to the unique licensing opportunities they provide, allowing for more content, quicker integration and release, and a fast-growing audience. According to Nielsen’s Local Watch report conducted in January, TV viewing is increasingly fragmented, and while the majority of households still spend more time watching live TV than SVOD services, the increase in number of homes owning streaming devices and smart TVs is changing this landscape. The report indicates that 42 percent of U.S. families now have access to streaming platforms, such as Netflix, Hulu, and Amazon Prime thanks to these devices. And, once a single subscription is purchased, the whole family has access to a wealth of new content whenever they want. Allen Bohbot, Chairman and CEO of 41 Entertainment, the producers of the upcoming Kong: King of the Apes series set to air on Netflix next year, says kids can drive family subscriptions to SVOD services just as much as adults. “The beautiful thing about kids is that they’re not scared of technology. My parents are still trying to figure out how to send an email, but kids aren’t like that. They just adapt to the technology that comes along at any point in time,” he says. “If you look at some of the statistics that we’ve been able to gather, almost half of U.S. households that subscribe to Netflix have five or more people in the house, compared to say 20 percent of households that watch cartoons.” Unlike with broadcast TV, kids and families can watch their favorite content on SVOD platforms on the go, providing even more access to these unique, original series. According to Nielsen’s Local Watch report, 77 percent of consumers in the U.S. use smartphones to ac-
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U.S. H OUSEHOLDS
36%
NETFLIX
OF
Source: Nielsen Local Watch report, January 2015
A CCESS
AMAZON
U.S.
SVOD
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TO
SVOD S ERVICES
13%
cess TV content, and tablet penetration is gaining traction at 42 percent. Of the consumers who have access to SVOD services, Netflix owns the lion’s share at 36 percent, while 13 percent use Amazon Prime, and 6 percent use Hulu Plus. HOUSEHOLDS HAVE With such easy acTO SERVICES cess, kids can easily watch multiple episodes of a series as often as they like. While “binge-watching” is a term typically reserved for adults, kids are also able to power through a TV series quickly if they have unlimited access to it—especially if the episodes clock in at around 10 or 12 minutes. This unlimited access to content instills a sense of optimism in licensees for SVOD original series. Despite the fact that the concept of developing licensing programs for these new properties is still in its infancy, licensees believe consumers and retailers alike are ready for something new. “Our research shows that more and more kids (and adults) are watching content on Netflix and other video on demand services,” says Isaac Larian, CEO of MGA Entertainment, the master toy licensee for Kong: King of the Apes. “As we see ratings decline for cable TV channels, we know that Netflix is attracting more kids’ eyeballs each and every day. Parents love the idea that they can let their kids watch when it is most convenient.” Better known for its original brands including Lalaloopsy, Little Tikes, and Bratz, MGA Entertainment is very selective when choosing licensing partners. However, Larian says the Netflix original series Kong: King of
42%
ACCESS
WITH
HULU
6%
the Apes is an opportunity for the toy giant—especially because of the brand recognition the series will carry. “We believe, first and foremost, in creating great toys that are magical,” says Larian. “Avi Arad, the series’ cocreator and executive producer, has proven his gift of storytelling and movie-making over and over—just look at Marvel and Spider-Man. Kong: King of the Apes will be the perfect marketing vehicle for the great toys we will make,” he says. The original series is set in 2050 and pins King Kong against an army of enormous robotic dinosaurs. MGA’s licensed line will include figures, electronic and action plush, play sets, vehicles, electronic and non-electronic games, and learning aid toys for kids ages 5 to 10. Despite the uncertainty of creating a licensing program based on a SVOD original series, the brand recognition King Kong holds acts as a safety net for the new incarnation of the property. Similarly, Popples, a Netflix original series produced by Saban Brands and set to launch later this year, is based on the series and toy line of the same name from the 1980s. The new comedy series will feature a group of wacky fictional creatures that are always looking to save the day. The nostalgic value and familiarity the brand carries will give the series and the licensed products a better shot at resonating with consumers worldwide. “Nostalgia will play a huge role in the success of Popples,” says Mary Rafferty, senior vice president, U.S. consumer products at Saban Brands. “The brand already has built-in awareness with parents who grew up in the ’80s and still have memories associated with the original fun, quirky, and loveable characters. These parents will no doubt boost both sales of licensed products and viewership of the show on Netflix, because they will want to share their love of Popples and recreate those same fond memories with their own children, creating a bridge to connect the two generations.”
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Popples
Spin Master will serve as master toy licensee for Popples and is set to develop a full line of products, including small dolls, collectible figures, play sets, and plush in the U.S. in December. The line will expand to international markets next year. Of the 15 new original series Netflix has slated for this year and next, many of them enjoy similar brand awareness as Popples and Kong: King of the Apes. Dreamworks Dragons will feature Hiccup and Toothless from the How to Train Your Dragon franchise, while an animated Inspector Gadget, The Magic School Bus, and Care Bears & Cousins will tug on the heartstrings of Gen-Ys. Despite an untested market, the growing subscription rate for SVOD platforms and declining broadcast TV ratings suggest that licensees and retailers are ready for something new, and hopefully, consumers are, too. “I’m not going to pretend that anybody has all of these answers, because this has never been done before. That’s the reality,” says Bohbot. “Will it work? I don’t know, call me in a year.” ••••
Additional Emerging Platforms
According to Bohbot, Netflix is more likely to give support to a series if the SVOD company can brand it as an original. And while production companies welcome this notion because it decreases their risk and financial responsibility, it still leaves them reliant on the SVOD platform. On the other hand, user-operated platforms, such as YouTube, give consumers a similar viewing experience, with none of the licensing agreements or relationships, placing all of the power back into the hands of the production studio. Hoho Entertainment, the company behind the UK series Cloudbabies, has uploaded some of the show’s content to YouTube to attract a new audience in the U.S. While the series has seen success in the UK, Hoho Entertainment has not yet been able to secure a U.S. broadcast partner. Instead, the company placed 13 episodes from the Cloudbabies series on YouTube, allowing kids in the U.S. to have direct access to the content. The episodes were also approved for the newly launched YouTube Kids app, resulting in a spike in viewership and awareness for the Cloudbabies brand. “What we decided to do as producers is to be proactive: We can access YouTube, we have all of the material, and we can make it available,” says Helen Howells, joint managing director of Hoho Entertainment. “We want to see if we can build the brand organically. Ultimately, we would love to have a broadcast partner on board, but the question is, ‘Is it the only way?’ The broadcast landscape is changing so much, because platforms like Netflix and Amazon are really giving broadcasters a run for their money.” ••••
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The Licensing Book • 27
Property Profile
H
BO’s Global Licensing department oversees the extension of the Game of Thrones brand into consumer merchandise, and its official licensees have created thousands of different designs across a broad spectrum of high-quality products that include soundtracks, apparel, glassware, books, jewelry, action figures, replicas, gaming, and even a line of Game of Thrones beer. Products are available at the HBO online shop in the U.S. and the European Union, at the HBO Shop at 42nd Street and 6th Avenue in New York City, and at retail outlets worldwide. With the series in its fifth season, more than 80 licensees are currently creating official merchandise year-round to give Game of Thrones fans the opportunity to further engage with the show. ••••
Game of Thrones: A Telltale Games Series
Game of Thrones Monopoly
Telltale Games is creating a six-part game series based on the brand. The events in the game begin toward the end of season three of Game of Thrones, and will end right before the beginning of season five. Players will visit familiar locations from the show, such as King’s Landing and The Wall, as well as unfamiliar locations such as Ironrath, the home of House Forrester, a family pledged to House Stark that is caught up in the events of the War of the Five Kings. The fourth of the six episodes will be available later this spring.
Featuring custom Game of Thrones packaging, stunning game design, and large, hand-sculpted custom tokens, Game of Thrones Monopoly will transport fans into a world of intrigue, valor, and betrayal. All aspects of the gaming experience are customized, including Valar Morghulis and The Iron Throne cards, Monopoly money straight from the Iron Bank, Custom Villages and Keeps instead of the typical houses and hotels, and more to help bring Westeros to life. Created through a partnership with USAopoly and Hasbro, the game will be available in May.
Inside Game of Thrones: Seasons 3 and 4
Game of Thrones: A Pop-Up Guide to Westeros
The official companion book series from Chronicle Books continues with Inside HBO’s Game of Thrones: Seasons 3 & 4, which takes fans behind the scenes of the HBO series, offering a look at the creation of the show’s award-winning visual effects, never-before-seen set photos, and breathtaking production and costume designs, as well as in-depth examinations of key scenes and insight about the plot and production from the show’s cast and crew.
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Set in Winterfell, the lavish capital city of King’s Landing and the Wall’s stark majesty, Game of Thrones: A Pop-Up Guide to Westeros from Insight Editions takes fans into the world of the series like never before. Available this summer, the set will include a limited-edition metal astrolabe modeled after the opening sequence. Also from Insight is the second volume of the popular poster collection, a variety of sigil journals, and later this spring, a new line of sigil stationery.
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Property Profile
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he product line for HBO’s original series Silicon Valley launched last year, timed to the series debut. The original line included logo merchandise, such as posters, T-shirts, drinkware, and pens; and expanded to include Aviato merchandise and tech accessories, such as mouse pads and iPhone covers, during the offseason. With the success of the second season and the recent announcement that the show has been renewed for a third season, the HBO Global Licensing team is looking to expand its Silicon Valley portfolio and licensing program and thinks the property will do well within categories including apparel, accessories, collectibles, stationery, desk products, and tech products. The tech aspects of the show in particular could be adapted successfully into fun electronics, as well as computer and mobile accessories. ••••
Apparel
Now in its second season, newer merchandise based on the series is currently focused on key assets and storylines, including apparel themed around the fictional companies within the show: Pied Piper (the start-up company of Richard Hendricks), Hooli, and Aviato. The line from Fifth Sun is available now.
Posters
Silicon Valley is filled with timeless quotes from the characters and there’s no better place to capture them than in posters. Posters incorporate inspirational quotes from the fictional IPO, Hooli, and other key assets from the show. The current licensee is Lightning.
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Ear Buds
Fans can channel their inner Erlich or Richard with the Silicon Valley Pied Piper Custom Earbuds featuring the new and improved 2.0 Pied Piper logo. Users can enjoy high-quality audio while designing beautiful applications in style, and Jared will be sure to approve of their fashion sense. The current licensee is Custom USB.
The Licensing Book • 29
THE
SPICE
OF
L I C E N S I N G As the food and beverage industry spices up with new and innovative flavors, the licensing industry jumps on the tasty bandwagon. by Ali Mierzejewski
he food and beverage industry has been experimenting with flavors for decades. But lately, the trendiest way to make a splash on grocery store shelves is with new, innovative flavors that consumers have never seen before. This is obvious as you stroll down the chip aisle and peruse the experiments happening at the Frito-Lay factory— cappuccino, pico de gallo, bacon and cheddar, and more fill the shelves. But what does this uptick in fun flavors mean for licensing?
T
Get Your Co-Brand On Flavors definitely bring newsworthy attention to the food and beverage category. Whether consumers help create them through a vote, or companies experiment with new and innovative palettes, people pay attention. And anywhere the news in a category heads, the licensors will follow. “I think a trend that’s been going on for a couple of years now is certainly flavors. A lot of food brands are looking for either unique flavors or very wellestablished flavors that consumers are
30 • The Licensing Book
familiar with,” says Michael Carlisle, principal at The Wildflower Group, who represents brands such as The Girls Scouts of the USA. “By pairing those flavors with their products, it brings newness to those products.” The Girls Scouts added its cookie flavors to products all over the grocery aisles. From ice cream and chocolate milk to cake and coffee creamers, with even more Girl Scout products to come this year, familiar flavors such as Thin Mint are popping up across shelves. “Mint obviously is a flavor, but Thin Mint is so well established and means so much to consumers that it brings a lot more than just a generic mint flavor,” says Carlisle. Jodi Bogdanoff, vice president of licensing at Brand Central, sites other examples of flavors becoming the new hip thing. “Cinnabon is obviously a ginormous flavor that’s been licensed into many different categories,” she says. “We’ve also seen the hot sauce brands still continue to show some relevance. Consumers are just really open now to playing around with ethnic flavors. It started with the hot sauce brands and it’s transitioned a little bit into some Asian flavors that we’re starting to see grow. But hot sauce is still big for Sriracha, Tabasco, etc.” Brand Central, known for representing lots of food and beverage clients, including the Dr Pepper Snapple Group (DPSG) and Beekman 1802, knows that to add licensing to something, you’re going to need a big partner. “Brand Central and DPSG identified an insight that
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Branding and Zombies and Jerky—Oh My!
7Up bundt cake
southern consumers grew up with homemade 7Up bundt cakes and we therefore used that knowledge to help build a fun soda-flavored bundt cake program using the flavor profiles of 7Up, as well as A&W Root Beer and Orange Crush,” says Bogdanoff. “Through this relationship we were able to build a fun contest for the in-store bakery teams at major retailers across the country where they were asked to create the best co-merchandised display of the cakes along with cans and bottles of the sodas.” Bogdanoff, who previously worked in the food and beverage licensing segment at Marvel Entertainment, learned the challenges of this industry early on. Once Disney bought the company, there was a much greater emphasis on the nutritional value of the products they were partnering with—more safety guidelines, FDA-related guidelines, etc. “There were rules. Trying to do licensing with a character brand outside of confection—it was a challenge because there’s not a lot of trust [that consumers place in their favorite characters],” she says. “Character brands had to be put on something healthy.”
“It has to be clever and conversational. It just feels like it fits with the brand. It’s almost like food that the survivors of a zombie apocalypse could find themselves feasting on, or it’s something that could potentially appeal to a zombie to satisfy their appetite.”
32 • The Licensing Book
Bogdanoff notes that flavor profiling is also where character and entertainment brands tend to lose a bit of relevance. Translating a well-known brand of cherries into a cherry-flavored product will resonate more with consumers than, say, a cherry-flavored product with a Spider-Man logo on it. It seems intuitive that it’s easier to transition a foodrelated brand into another food product, so is it impossible to break into food with a brand that is instead based on characters or entertainment properties? By the smattering of SpongeBob, Scooby-Doo, and countless other favorites on grocery store shelves, apparently not. It all depends on strategy. Russell Binder and Marc Mostman, partners at Striker Entertainment, know that for their brands, it’s all about the right fit when it comes to food and beverage partners. Striker represents brands such as AMC’s The Walking Dead, which is a hugely popular brand that is known to make quite the impact at retail. “There are a couple of things we look for,” says Binder, in regard to finding the right licensing partners for The Walking Dead brand. “One is the right connective tissue to the brand. Is the extension logically tied to the universe that is The Walking Dead? Is there a reason to associate the brand with the product?” When it comes to grocery, this can present a bit of a challenge with mature, adult brands such as The Walking Dead. Binder and Mostman say that they really have to be selective when it comes to brands in the food and beverage category to make sure that they aren’t marketing this mature content to kids. “It’s a lot easier with kids. There’s a much broader range of product categories and consumables. Adult, mature content—you definitely need to be much more selective,” says Binder. Which is why Striker’s biggest push for food and beverage currently with The Walking Dead brand is a partnership with Slim Jim. Not only does Slim Jim create promotional marketing opportunities, telling audiences when to tune in to the show and how to enter sweepstakes, they also have a co-branded Carnage Asada-flavored product on the shelves.
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“It has to be clever and conversational, which I think is what the Slim Jim license is,” says Mostman. “It just feels like it fits with the brand. It’s almost like food that the survivors of a zombie apocalypse could find themselves feasting on, or it’s something that could potentially appeal to a zombie to satisfy their appetite.” And although there’s only one flavor on the shelves currently for The Walking Dead and Slim Jim partnership, Striker knows the importance of flavors in the current market, and hopes to expand in the future. In the past, they’ve partnered The Hunger Games brand with Vosges, a high-end chocolatier, to create distinctly flavored candy bars that represented each district in the film. Binder and Mostman described it as unique, conversational, and high-quality—exactly what they look for when it comes to food licensing. “The timing of [The Walking Dead] arrangement was to have a longer term conversation. The first round was to maximize what they currently had in development and then look at new products going forward,” says Binder. “So there might be an original flavor,” Mostman adds. “We’re still sort of working that out.”
Putting the “Novel” in Novelties For the licensees, it’s even more important to provide unique and distinctive flavors, especially on products that are not co-branded. Spring Creek Holdings creates ice cream and novelty products for the Airheads brand, and although they are not co-branded, Jerry Isaacson, president and CEO of Spring Creek Holdings, understands that the partnership is definitely a twoway street. “A good licensing partnership is going to accrue value for both parties,” he says. “We extend the brands to a new category, so it’s increasing awareness and value and reach. We’re creating sales and distribution for the products we develop and demonstrating to buyers what we do. That’s been a very important thing
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over the last couple of decades.” Airheads is a brand known for its strong, intensely flavored candy, so it’s Isaacson’s team’s job to figure out how to translate that into desserts. One way they do this is through novelty products that directly compliment the Airheads candy. Products include squeeze-up tubes that feature two different Airheads flavors, just like the candy products Airheads makes. Another tactic is to play with flavors in a new and different way than the category has ever seen. When it came to packaged ice cream, Airheads flavors proved too intense for a whole half-gallon container, so Spring Creek took a hint from ice cream flavors, such as fudge ripple, to inspire a new Airheads product. “We spent quite a bit of time looking into this and we came up with the idea to take their flavors and develop Airheads-flavored variegation,” says Isaacson. Spring Creek took lightly flavored Airheads ice cream, and infused bolder, stronger, intensely colored flavor variegation to create a packaged ice cream that would suit consumers’ palettes while still being visually striking. So how do you get ahead in the food business? It’s all about trying something new or different. Spring Creek Holdings focuses on the root of the word “novelties” when designing new products: novel. “There’s always room in the pantry or cabinet or refrigerator for their favorites, but consumers—human beings—are curious by nature,” says Isaacson. If you don’t feed that curiosity, it won’t grow.” ••••
The Licensing Book • 33
Hot Shots
Building Q Celebrates 23 Years 23 Questions with C. Woodrow “Woody” Browne, Managing Partner, Building Q, Licensing and Marketing Consultancy 1. You have been in the licensing industry for 35 years; what are some of the biggest changes that you have seen? Consolidation at retail is the biggest shift. Back in the day, regional discounters could help gestate a program and show the bigger, less flexible chains that something worked. Online sales, specialty channels, and deep discount stores offer some of that now, but it is hard to “tool” for short-term licenses without major support. The “franchise mentality” from licensors adds an element of risk—some are better served with promotional in-and-out tactics, and there are certainly programs offered for licensing that are simply not ready for prime time. 2. Who holds the power in the licensing industry today? The giant retailers and the giant licensors. Manufacturers have lost their leverage. Non-exclusives have always been a part of the legal language, but deals used to be done with exclusive intent. I understand that licensors’ staffs are leaner and meaner, but there has to be a better way to limit the overlaps. 3. How has the move to Colorado changed your business? My son went to cycling camp here in the ’90s, and when my wife flew out with him she phoned me and said, “I think I found our place.” When I first moved the business, I think some people thought I had moved out West and retired! While I’ve had to combat that perception, overall, the business is solid and I have had more clients visit me in Durango in five years than in nearly two decades in New Jersey! 4. How has being a consultant to manufacturers changed? My product and marketing background gives me a better overview and service platform. A big change today is the niche mentality, and the need to be truly selective with both my recommendations and deci-
34 • The Licensing Book
sions. It is also about telling the truth. 5. Got a “tell the truth” story? Years ago, a client called and said he wanted Star Wars, and I told him it was a waste of time—he was the antithesis of a Star Wars licensee. I told him that we would not get to first base, even with my relationship there. He said angrily that he was the customer and he demanded more respect, and that I not talk that way to him. I told him I was simply telling him the truth, and if he wanted me to lie to him he would have to triple my fee. He opted for the truth. 6. What was the first licensed product you remember purchasing? Ha! When I was about 12, I bought a Peanuts felt banner. It pictured Snoopy dancing with the caption, “I have to start acting more sensible… tomorrow!” 7. During the `90s you were chairman of the Licensing Industry Merchandisers’ Association (LIMA). How has that organization changed over the years? It is much more financially fit today. Shortly after I was elected, the staff had to take a pay hiatus and we had to raise money. The board called members—we were dialing for dollars—offering two years for the price of one if members sent in the dues now! It was a financial storm that we weathered, and with the gala and show growth, it all worked out. I think today the organization is focused on the overall good of the industry and is now better than ever. 8. Are still you a member of LIMA? Yes, and I recommend membership to each client. The benefits favor licensors, but as a licensee there are still good reasons to be part of the organization. 9. How has your business model changed since you founded Building Q in 1992?
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Our purpose and core values remain the same, and we still work within the framework of our clients’ objectives to achieve success, using licensing as a marketing tool. One big impact occurred in 2008 when my partner Rebecca became more involved in the business. Rebecca has been attending various trade shows, she has a keen eye for new products, and she brings a fresh perspective to things. She was first to spot Hexbugs and Silly Bandz. She is also my electronics guru and savant on all things technical. 10. How do (new) companies find you? Most new calls come from referrals—either from clients, licensors, or long lost friends. Even after 23 years, I have not found a way to make cold calls work. 11. Tell me about the “Fun Run” at the Licensing Show. I had always hoped someone else would start a run—but when they didn’t, I did. In the early days in New York City we ran in Central Park. When the show moved to Las Vegas it became an “out-and-back” on the Strip. I have to give props to JJ Ahearn of Licensing Street LLC for helping re-energize the run in Vegas. It is always a great way to start the show. 12. Have you ever done real business during one of the runs? Indirectly, I think we signed one client—but the real value is having a good time with the folks with whom you do business. The run is pretty mellow—no one actually races—and we all run and talk together to make it social and fun. 13. Is it harder to run in the Colorado altitude? The hardest part is just getting out the door. For me, running is always tough—I run slowly these days. My best runs seem to be when I forget to wear my watch! 14. What is your biggest “win” in licensing? I remember in the early ’80s, Lester Borden—the guy who ran licensing at Columbia Pictures (before Sony)— would comment about earning money to “put my kids through college.” I always kept that in mind. My biggest win is that we were able to put our three kids through college without putting them in debt. 15. Do you have any special industry mementos? I have a Han Solo in carbonite hanging in my house. Actual size. Can’t get much better than that. 16. Do you still like what you do? Yes, most days. I like the work, the research, the meetings, and strategy. I like being a part of my clients’ teams. To use a football analogy, I like making the block that lets my client score the winning touchdown. Look-
Spring 2015
ing back, I can say I did not enjoy the responsibility of managing a staff and worrying about payroll, insurance, and stuff like that. The back-end can be trying. 17. Do you think consultants still have a role as the industry moves to bigger and bigger licensors? Yes, especially with the bigger guys. Licensors do not want to have to educate new licensees—and manufacturers cannot afford to mess around just to prove they know how to play the game. Consultants can educate their clients on the key issues a licensor is looking for, prepare them for the approval process, and help them make internal changes so they avoid paralyzing mistakes or worse. Because of my history, I can often make a call and solve problems before they have a chance to get out of control. It can be an invisible part of the service, but it saves a lot in the long haul. 18. What’s next for Building Q? I am opening up a chunk of time to mentor other consultants. Sort of a consultant’s consultant. I’ve spoken with so many young people who see this niche, think it is easy, and jump in, only to be troubled when the water gets deep. I have been fielding calls for years; now I have decided to create a business out of it. 19. How will you structure this new offering? I am taking a page from how personal coaches approach this. We’ve developed a menu of services based on how much time and attention is needed, with fees structured accordingly. 20. What is the best thing a client ever told you? The worst? The best is easy: “You’re hired.” The worst thing (which is etched in my soul) was, “It is cheaper for me to litigate than to pay you your commission.” 21. What is some of the best advice you have received? In 1979, I was put in charge of the Lunch Kit business at Thermos. My boss at the time, Don Eccleston, gave me great advice; he said, “Don’t burn any bridges.” I haven’t burnt any—although it could be argued I have blown up a few! 22. How did Building Q get its name? Trivia time: It was the location of our first office: Building Q was in a big office campus. 23. How long do you think you will continue working? About 15 minutes, then I’m getting on my bike. ••••
The Licensing Book • 35
Character & Entertainment
Licensed to Thrill More licensed collectible figures are available than ever before, but bringing them to market takes time and effort.
A
by Phil Guie
ction figures have long been an essential part of the licensed toy business. For decades, they have allowed kids (and grown-ups) the opportunity to take home the experience of a new favorite movie, TV show, or pop culture phenomenon. Nowadays, more toymakers than ever are securing the rights to entertainment licenses and translating them into a growing range of figures for both fans and collectors. Although a healthy demand may exist, desire alone does not turn the latest hot license into the next hot collectible figure. Today, the toymakers populating the collectible figure space include NECA, Funko, Factory Entertainment, and McFarlane Toys. Each company has its own particular aesthetic, and some have more mainstream licenses than others—or more licenses overall. The sheer breadth of properties visible on any given store shelf is staggering, ranging from current TV series such as The Walking Dead, to seminal horror flicks from the 1970s and ‘80s. Many toymakers are also putting out new licensed figures based on the styles of the now-defunct Kenner and Mego, giving the space an even more retro feel. However, for every Mego-inspired Interstellar figure from NECA, or The Rocky Horror Picture Show Re-Action figure from Funko, there is a process of obtaining a license, creating an innovative toy, and getting it to market. The licensor stays involved for every step in the development process, which can range anywhere from four to 12 months to complete.
Marvel’s Guardians of the Galaxy Dancing Groot Premium Motion statue, from Factory Entertainment Inc.
36 • The Licensing Book
A License to Persuade
When it comes to acquiring a license, it largely depends on a company’s track record—i.e., the
products and licenses it already has—and its pre-existing relationships within the industry. In many cases, the prospective licensee initiates the conversation with the licensor, though it can also happen the other way around. For example, a toymaker such as NECA, which has an established reputation for action figures based on properties across the entertainment spectrum, often fields inquiries from licensors. “Given our place in licensed consumer goods, we already have relationships with many content owners, and we communicate with them regularly about their existing and upcoming properties,” says Alexis Mueller, NECA’s director of business and legal affairs. A company’s action figure line also depends on its overall licensing philosophy. NECA’s, for example, features a mix of both classic and new properties, with the classics serving as the foundation of its program, and the newer ones representing attempts to broaden the fan base. But for a smaller company, such as Factory Entertainment, the strategy consists of pursuing both hot licenses as well as ones that have not been as widely exploited. “To go for things that are unique, but not heavily trafficked, is not by itself a good business strategy,” says Jordan Schwartz, president of Factory Entertainment. “The licenses most heavily trafficked are the ones with the most fan interest and passion, and the largest market.”
A License to Produce
After securing the license, the licensee’s product development and creative teams start assembling concepts for the licensor to review. The sculpting, prototyping, and approval processes encompass both the figure itself and the packaging, and can take anywhere from weeks to several months. Much depends on the
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number of approvals required, the type of prodexactly—is intended to make the item unique uct, and the licensor. amidst a sea of licensed Dancing Groot figures In addition, how quickly the licenand toys. sor can process product submisMueller says NECA works with licensors sions—i.e., whether its system is to find ways to distinguish its product from manual versus automated—and its other licensees. Regarding the company’s amount of on-hand staff can seritendency to innovate, Mueller mentioned ously affect the development period. NECA’s first Mego-style A Nightmare on “It takes a certain amount of time to get an Elm Street and Friday the 13th figures, action figure made,” says Schwartz, whose comdeveloped and released in the fall of 2013. pany not only creates licensed action figures, but NECA outfitted the figures in tailored collectible resin statues as well. “It takes a certain fabric clothing similar to the retro toy amount of time to get a statue made. It lines that defined licensed action figdepends on the licensor, and some ures during the 1970s. However, The Walking Dead 10-inch take more time than others.” doing so required enlisting a whole Given that the figures are all based on intel- Daryl Dixon Survivor Edition team of sculptors and artists, includdeluxe figure, from lectual properties, the toymakers also need to McFarlane Toys ing fabric experts. receive creative assets from the licensors. This “We try to imbue our products leads to a natural tension between the toy companies and with the same reverence for the underlying intellecthe content owners who, understandably, would prefer tual property that we feel ourselves while working to keep information out of the public’s hands for as long with the property,” says Mueller. “So while we often as possible. try to offer a new take on an existing property, we While a delay in receiving assets is a disadvantage, want to do so in the context of the source material.” toymakers in general soldier on. Todd McFarlane, the founder of McFarlane Toys, which creates figures Figuring Out the Future based on The Walking Dead TV show and comic book, The past 10 years have seen a growth of small comsays his company usually receives about a month’s panies specializing in licensed figures, which raises head start from licensor AMC. the question: Are there too many players competing “There are certain things that all studios like to keep for the same prize? All of these entrants, in turn, have close to the vest, for fear that somebody will get it and led to an increase in the cost of licenses, making for a it’ll appear on a blog someplace,” says McFarlane. “But more expensive business to operate in than had once the longer you’re a partner with them, the more trust been the case. they have that they can pull back the curtain.” On the other hand, with more suppliers of licensed figures than ever before, the market is becoming more diverse, with high-end figures becoming ever more A License to Innovate detailed, and packaged with an ever-increasing While the market for licensed action figures is healthy, the amount of competition within requires companies to array of accessories. The low end is gravitating stand out as best they can. A fairly common situation that toward smaller, 3- to 3.25-inch figures, which arises is when a licensee approaches a licensor regarding carry lower price points, and more of that aforea product, only to discover that one or more other com- mentioned retro quality. Consumers should be pleased, while from the propanies hold the license for the same item. duction side, it will still come down to the relationship During these times, the options are to sink, or learn a new way to swim. Factory Entertainment, for example, is between licensor and licensee, both financially and coming out with a version of Dancing Groot, based on creatively. “We don’t try to work against the licensor,” says the character from Marvel’s Guardians of the Galaxy, Mueller. “We try to involve them in the product which is sculpted from the same 3-D files used to create Friday the 13th Part 6 the animated version in the film. This attention to accu- development process, and if we do our job right, they clothed 8-inch action racy—plus a scale size that matches the movie version’s will be as excited by our product as we are.” •••• figure, from NECA
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The Licensing Book • 37
Brand Promotions
PARTNERING WITH A
QUICK-SERVICE RESTAURANT
How to Tell If It’s Right for Your Brand
by Deanna Atkins
I
Skylanders Eruptor figure from last year’s McDonald’s Happy Meals
n the U.S., quick-service restaurants (QSR) have become so engrained in society that people can’t drive anywhere without seeing McDonald’s golden arches or passing a crowded Starbucks or Dunkin’ Donuts. Americans depend on convenience—especially drive throughs—when they’re coming back from a soccer game and have four hungry players in the backseat, or when they’re rushing to work, but need a quick coffee fix. However, QSRs are not just standalone drive throughs. They’re inside Wal-Marts and Targets, in airports, and at food courts in the mall. For the exposure alone, it’s no wonder big-name companies such as Activision, Hasbro, and Mattel partner with QSRs. There are more than 14,000 McDonald’s restaurants in the U.S. alone. Whether it’s to promote a brand or a new video game, there are more ways than ever for companies to work with QSRs; one of the most well-known is being a part of a kids’ meal program, whether it be with the iconic McDonald’s Happy Meal, Sonic’s Wacky Pack kids’ meals, or Burger King Kids Meals. Since the Happy Meal’s debut 36 years ago, brands from Barbie to Pokémon have participated in this type of promotion with McDonald’s, and many QSRs have created kids’ meal programs of their own. While it’s perceived that the space is reserved for toy and enter-
38 • The Licensing Book
tainment brands, you don’t necessarily have to be a huge corporation in order to consider this type of partnership.
Picking the Right Partner
In any licensing deal, choosing the right company to partner with is a process that requires research, time, and patience. For video game publishing giant Activision, choosing a QSR partner, whether it be for Skylanders, Call of Duty, or Destiny, isn’t always an easy feat. “We don’t just want to throw our logo on a brand or something that may not connect to our audience,” says Aubrey McClure, head of partnerships and promotions at Activision. “One of the things Activision has always looked at in regard to our partnerships is that we want to do impactful partnerships that are appropriate to the brand itself, as well as to the target audience.” While the Skylanders brand resonates with a younger fan base, Activision’s video game property Destiny has an older audience. Although it would not be a fit for McDonald’s Happy Meals, the company was able to work the brand into a QSR promotion with Taco Bell, which directly related to its target audience. “Taco Bell was a perfect demographic target in regard to young, youthful gamers. It really was a good tie-in for us. There wasn’t really a drive to retail—that one really was a branding and awareness program, because it was our first launch of Destiny, so it had not been in the marketplace yet,” says McClure.
Connecting with Fans
Like anything else, QSR promotions aren’t for every brand. “When seeking potential partners, we look for
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releases, so with that it’s all about making sure that we have the appropriate assets, as well as working with McDonald’s to make sure that the toys themselves are representative of how things look for our properties,” says McClure.
It’s Not Just About the Toys
Sonic’s promotional images for Temple Run Partnership
brands that have a similar, or complementary, brand energy and speak to similar demographics,” says Ralph Heim, vice president of media and integrated marketing at Sonic. It is for that reason that companies other than toy and entertainment brands can be successful in this licensing category—they just need to get creative. Sonic recently partnered with Imangi Studios, independent developer of the casual game app Temple Run, and collectively made the brand more flexible in order to create a QSR program that Imangi felt comfortable with and made sense for their audience—which consists of more than 1 billion fans worldwide. “Our expectation is that we’re going to connect with more fans, as well as lead new fans to participate with the brand,” says John Leonhardt, Imangi’s branding representative. “A lot of our fan base will be on the road when they play Temple Run, so a drive through makes sense. It gets kids excited, and it gives us a new venue, a new location to play.”
Timing Is Key
When planning any promotion, whether it be for the release of a film, a game, or a book, there’s a very specific timeline leading up to that launch date. Knowing your timeline and finding a QSR that can work with it is crucial when choosing a partner. When creating a product with a QSR, there needs to be enough lead time to not only bring the product into fruitation, but to make sure it’s as close to perfect as possible, as the toy will be in millions of kids’ hands. For Skylanders, Activision usually partners with McDonald’s once a year. “We look to time to new
40 • The Licensing Book
Now more than ever, QSRs are getting more creative with their partnerships. Sonic, for example, is currently in partnership with National Basketball Association (NBA) All Star Kevin Durant, who works with Sonic’s marketing team “to promote his favorite Sonic menu items, make several scheduled appearances, and collaborate on social media,” according to Heim. The partnership continues to provide mutual support for Sonic’s Limeades for Learning campaign, and the Kevin Durant Charity Foundation. In addition, Hasbro has annually partnered with McDonald’s for The Monopoly Game, where consumers are offered Monopoly pieces on select menu items and can instantly win prizes. The program incorporates an online sweepstakes as well.
Looking Ahead
Kids now spend more time on mobile devices than ever before, but physical toys will always be important to kids and how they play. In the toy industry, major companies from Lego to Crayola are finding ways to incorporate digital elements into toys, and they’re being well received. This trend is also apparent when looking at the future of QSR promotions. Through Sonic and Imangi Studios’ current partnership, kids not only receive a Temple Run-themed toy in their Wacky Packs kids’ meals, but there’s also a digital extension that gives them more ways to play. Each toy features a scannable Temple Run code that unlocks a digital photo booth via Sonic’s Wacky Pack online portal. Since families consuming meals at QSRs are typically on-the-go, digital components are a natural extension of this type of property. “I think infrastructurely that promotional companies have a lot invested in the toys, and that there’s always a joy of having something physical,” says Leonhardt. “But I also think there’s always going to be a digital aspect in every kind of promotion going forward.” ••••
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The leading trade show for the surface design industry returns.
S
URTEX is North America’s premier event for the selling and licensing of original art and design. This year’s event, scheduled for May 17 to 19 at the Jacob K. Javits Convention Center in New York City, will host around 300 exhibitors, including industry heavyweights from North America, Europe, Asia, and Australia. The roster of exhibitors includes more than 50 newcomers representing a mix of studios, agents, and U.S. and international vendors. More than 6,000 attendees from 49 countries are expected to converge at SURTEX. The event is dedicated to the sale and license of original art or design for use in manufacturing home goods, bedding, paper products, textiles, toys, calendars, and fabrics. Visitors can also enjoy a 10-part seminar series and networking opportunities, in which design and licensing experts will address best business practices for attendees. Exhibitors will participate in one of three categories: Art + Brand Licensing, which will feature approximately 200 exhibitors licensing their designs; Atelier, which will boast 80 exhibitors specializing in trend-forward design; and ReSource HuB, consisting of 20 exhibitors supplying technology and business essentials. “We are delighted to welcome both returning and new exhibitors to what promises to be an outstanding edition of SURTEX,” says Liz Crawford, vice president and group show director. “Attendees can expect a unique and diverse collection of the industry’s best art and design for sale or license.” Newcomers to Art + Brand Licensing for this year include Amy Lighthall and JQ Licensing, from the U.S.; and Dot Dash Design Ltd. and Helen Exley, from the UK. First-time participants in the Atelier section include Lovely Bird Designs and Pattern Pod, from the U.S.; Astrid
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Davidse Design & Colour Concept, from the Netherlands; and Katrien Soeffers, from France. Among the companies at ReSource HuB are new and returning technology and business resources, including trend consultants, digital textile printing, color systems and technology, textile software, and more.
SURTEX Planner Makes Its Debut
This year will see the debut of a dynamic, web-based tool, the SURTEX Planner, which will allow attendees to preview exhibitor designs and information. It will also enable registered buyers to schedule appointments and to communicate with exhibitors via private messaging and tool capabilties, in preparation for their visit to the show. Other features of the SURTEX Planner include an interactive floor plan, a sample of featured design images to be displayed at the show, a list of show specials, an archive of press releases, and comprehensive exhibitor directory listings. The SURTEX Planner is available online now, and can be accessed from the show’s homepage at surtex.com. “Our new online SURTEX Planner will enable exhibitors and attendees to connect and prepare for the show in a new and innovative way, making the show experience even more valuable and efficient for all participants,” says Crawford.
More than a Trade Show—An Intense Learning Experience
On the educational front, the SURTEX conference will feature three days of intense design intelligence, with programming presented across three tracks: Core, Advanced, and Trend & Beyond. Intended to complement the market experience, with each track taking place on a different
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show day, the seminar series features design and licensing experts addressing categories such as monetizing art and trend-spotting. Some highlights of the series include: • May 17: The Core series will cover aspects of licensing ranging from beginner to advanced elements. Jeff Grinspan, owner of Grinspan and Co.; Suzanne Cruise, president of Cruise Creative Services; and Monica Lee, coach and host of Smart Creative Women, will present “Monetizing Your Art 1: Licensing, Selling, and Beyond,” aimed at designers new to licensing. The session will focus on topics such as how to make the jump from creativity to commerce, and whether licensing is the right tactic. Another Core session, “Contracts and Agreements: Licensing and Sales,” hosted by Joshua Kaufman, Esq., from Venable LLP, will examine a typical licensing agreement and explain user rights, territory definitions, and other legal terms. • May 18: The Advanced series will present three category close-ups, which will explore trends in the tabletop, social stationery, and home fashions industries. The sessions include “Category Close-up: Tabletop and Home Décor,” in which Suzy Bramlett, design director at Mohawk Industries; John Chester, owner of Wild Apple Graphics; and Tom Mirable, senior vice president of global trend and design for Lifetime Brands Inc., discuss strategies to identify winning looks and the process for reviewing and evaluating art. There will be a fourth, cross-category Advanced session, “Understanding Copyrights & Protecting Your Art,” addressing legal aspects connected with licensing, such as copyright issues. Jeanne Hamburg, Esq., of Norris McLaughlin & Marcus Professional Association, will serve as the presenter. • May 19: For the Trend & Beyond series, Scott Power, owner of Crewest Studio, and Sarah Van Aken, executive director of brand development for Kathy Davis Studio, will present “Trendspotting: From Insight to Execution.” This session will cover how to spot trends and evaluate their life cycles. “The SURTEX conference program is designed to share business strategies and design intelligence from a creative perspective,” says Crawford. “SURTEX attendees and exhibitors—whether new to market or industry veterans—will benefit from the comprehensive series, which will provide takeaways that can be immediately implemented into their daily business practices.” Registration for the full conference program is $890 through May 16, and $1,000 onsite at the show. Pricing for individual sessions is $90 in advance and $100 per session onsite at the show. The full conference program purchase includes a show badge, valued at $495.
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Bringing Art Coast to Coast
This year’s SURTEX will also feature Crewest Studio’s Gallery Showcase (CSGS), a curated installation of graffiti art, street art, and live painting produced by Los Angeles-based Crewest Studio. Intended to redefine preconceived notions regarding the artistic and cultural significance of urban contemporary art—and its appeal within the commercial art licensing trade—the CSGS will take up an additional exhibit space. The featured artists will include Man One, Isaias Crow, Gustavo Alberto Garcia Vaca, and Codak. “Our partnership with Crewest Studio’s Gallery is an exciting new feature that will showcase urban artists and how their influence is driving consumer behavior,” says Crawford. “As consumers get younger, it’s important, as commercial artists, to engage the new looks and feels of this ‘lifestyle art.’”
Awards and Networking Chances Abound
As part of SURTEX’s full slate of events, the grand prize winner of designext, an international competition that honors students for exceptional surface design work, will be announced on May 18. “We are excited to continue to host our designext students— all from outside the U.S., interestingly enough,” says Crawford. “They have worked extremely hard to fulfill their passion for the art world, and we hope they will take this experience and become successful commercial artists.” On the same day, there will be a cocktail hour, scheduled for May 18, intended to cement the initial connections between artists, agents, and buyers on the show floor, and to facilitate new relationships between licensors and licensees. “Our evening cocktail event on Monday night is sure to be a destination,” says Crawford. “Overall, SURTEX has such an important place in the market of art and design. The show floor will be full of talent and inspiration from across the globe. From art for license to art for sale, the trends are set here.” ••••
The Licensing Book • 43
Art Licensing
Developing a Trade Show-Tested Portfolio by J’net Smith, owner and president, All Art Licensing
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ortfolio development and trade show planning is one of the most asked about topics in my classes. Understanding how to trade show test one’s portfolio is important for artists and designers to know if their portfolio has what it takes to cut through the clutter. There are many types of portfolios—enough to mirror the creative minds we have in this amazing licensing industry. And while everyone’s work is unique, putting together a compelling portfolio presentation to grab attention, while distracted prospects are running the gamut of brain aerobics required at trade shows, is certainly a challenge. Here are some solid techniques to maximize the effectiveness of a portfolio while preparing to attend trade shows:
1) Portfolio Size The size of an artist’s trade show portfolio will depend greatly on how long the person has been in the art licensing business, and whether the artist is participating as an exhibitor or an attendee. An artist who has been in the business for 10 years with a consistent
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art style—who might add five to 10 collections a year—will probably have 100 or more collections to choose from. Manufacturers want to see a body of work, enough to keep them interested and know that the artist is committed to the business. If artists are exhibiting at a major trade event, then think in terms of presenting 20 to 30 collections in a variety of themes, and developing a system to access most of any viable work. If artists are walking a show, keep it light and bring the newest items and a few solid collections to exploit further.
2) Portfolio Organization Artists must make sure to organize their portfolios for a trade event by theme, since that is how manufacturers buy collections. They seek out art to fit their product line needs for everyday (including seasonal—fall, winter, spring, and summer), holidays (Christmas, Halloween, Valentine’s Day, Easter), occasions (birthday, graduation, baby shower), and niche themes/lifestyles (cooking, flowers, spa, sports, country chic, lodge, beach). Organizing collections in other ways will just
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make it more difficult for manufacturers and is likely to frustrate them and turn them off.
3) Portfolio Review Licensees want to see what artists have that’s new. So while an art style may interest them, new art keeps them coming back to “see what you’ve got.” Creating new art for key trade shows is vital, as is sharing new collections throughout the year. Think about how many collections you will create (approximately) for the year, and plan out the releases based on which trade shows you plan to attend. Artists should launch new collections at trade shows and plan on having other new releases following major events to keep the conversations going with potential licensees.
4) Portfolio Flow Portfolios should ebb and flow. Artists should add new items and take out old items regularly—that’s the only way to keep it fresh. Also , they should make sure to keep their newest art at the beginning of the themed sections in their portfolios. Artists can absolutely continue to use images and collections that were shown last year, or even from years before. However, take out designs that no longer fit the artist’s style, or are no longer “in style” or “on trend.” Think realistically about how long the art will be relevant in the marketplace, and, therefore, to manufacturers, retailers, and consumers. If artists are trenddriven, it may be one to three years. If artists are very traditional in their themes and style, then eight to 10 years would not be an unusual length of time to keep some art in their portfolios.
5) Portfolios & Technology If an artist has a booth at an upcoming show, it’s best to have duplicate copies of the portfolio for multiple viewers. In addition, make sure there are hard copies and digital versions available. It is important to put the portfolio in a tablet, phone, or computer that does not require the Internet to access the images. The last thing artists want is to be dependent on the Wi-Fi in a large convention hall, hotel, or conference center with spotty reception. Keep images at an appropriately high resolution for how they will be shown: 300 dpi for print portfolios and look books, and 72 dpi for electronic images.
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Use touch-screen computers or tablets to make it easy for anyone to glance through a portfolio at his or her own pace (without having to learn a new technology). Keep it simple. I don’t recommend attending a meeting with so much high-tech equipment and business paraphernalia—artist’s phone, tablet, computer, briefcase, and hardcopy portfolio—that they are utterly incapacitated by trying to juggle them all. Think light; think efficient (less is more).
6) Website Portfolios While physical trade show portfolios are important, just because artists are exhibiting in a booth or attending a show doesn’t mean that someone an artist meets with won’t quickly check out the artist’s website. In fact, isn’t that what every artist is hoping for? For this and many other reasons, it is important that an artist’s website be up-to-date before he or she attends a trade show. The online portfolio should include enough of the art that shows a breadth of themes and the depth of an artist’s capabilities. But I don’t recommend that artists show their entire portfolios. It’s not wise or necessary to have every collection out on the website. Of course, artists should take as many precautions as possible by using a watermark on the art and copyright on each piece and/or collection. Some artists prefer a password-protected portfolio area, especially if they have extensive work to keep organized. ••••
Jeanette Smith (J’net) is the owner and president of All Art Licensing (www.allartlicensing.com), and the official blogger, resource center host, and matchmaker for the Licensing Expo’s Art+Design Zone 2015 at the Mandalay Bay Convention Center, June 9 to 11. J’net is well-known for her educational training through the Worldwide Creators’ Intensive online courses and one-on-one coaching and consulting.
The Licensing Book • 45
Toys and TV
Sy Fischer: The Man Who Helped Shape Character Licensing
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A Portrait of a Salesman, Father, and Licensing Pioneer
by Stuart Fischer
ost people have not heard of Sy Fischer, although many have loving memories of his clients, especially Hanna-Barbera, the animation studio that gave the world such classics as The Flintstones, The Jetsons, Yogi Bear, Jonny Quest, and ScoobyDoo, among many others. These characters still live on today through re-runs on various TV stations, cable networks, DVDs, and licensed consumer products. Fischer, a TV agent, was the man behind much of Hanna-Barbera’s success. He worked in the daytime TV arena during the 1940s, when he sold game shows that ran on weekdays. Fischer became very familiar to the buyers, both at the networks and in the first-run syndication field, which at that time was the TV business outside of ABC, CBS, and NBC. Fischer is also my father. He began representing Hanna-Barbera during the 1960s, and one of his first sales for his client was The Fantastic Four. This is a unique story in its own right: In 1966, I was reading a Fantastic Four comic book, and my father noticed and asked if I thought it would make a good TV cartoon. Enthusiastically, I said, “Yes!” and a moment later, he was on the phone with Joseph Barbera, head of Hanna-Barbera and one of the studio’s founders. Fischer told Barbera of the existence of this comic, and that he thought it should be considered as a possible TV series. Then Fischer met Scooby Doo Mornings Can Be Scary Coffee Mug, by ICUP Inc. with Stan Lee, the editorial director of
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Marvel Comics at the time, as well as the creator of The Fantastic Four, who was in favor of a cartoon. This led to another meeting between Fischer, Lee, Barbera, and other executives. Before long, a deal was made between Hanna-Barbera—which at the time was the largest animation studio for TV—and Marvel to put The Fantastic Four into active development as a Saturday morning TV show. Throughout the ’60s, ’70s, and ’80s, Fischer sold many shows on behalf of Hanna-Barbera. William Hanna, Barbera, and their staff created many of the characters, while others were creations belonging to someone else that Barbera thought had potential. These collaborations brought Hanna-Barbera into contact with almost every conceivable company involved in youth entertainment, including publishers, toy companies, and even major film studios with properties that could be developed into cartoons. As a result of these collaborations, Hanna-Barbera became a leading force in the licensing industry, and its own characters, which included The Flintstones, Scooby-Doo, and Space Ghost, were adapted into comic books, toys, board games, apparel, and other licensed products. Whenever Hanna-Barbera produced a show based on an outside property—such as The Fantastic Four, The Super Friends, The Smurfs, PacMan, or Josie and the Pussycats—licensing for those characters shot up once the show got on the air and began to draw a larger audience. The Smurfs is an excellent example. It was already a licensing hit before the Hanna-Barbera show launched
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in the fall of 1981, but once The Smurfs made its TV debut, the licensing revenue for that property shot up like a rocket. My father was the man who sold The Smurfs to NBC on behalf of Hanna-Barbera, and by 1982, The Wall Street Journal reported that the property generated revenue that surpassed the gross national product of many third-world nations. Fischer was also the one who sold Scooby-Doo to CBS in 1969, and a few years later, took the series away from CBS and sold it to ABC. CBS did not want to make any new episodes of Scooby-Doo, and merely wanted to keep the show on its Saturday morning schedule in re-runs until further notice. Fischer told the CBS brass at the time that this was unacceptable, and gave them a chance to change their minds, or else he would shop Scooby-Doo elsewhere. CBS did not budge, at which point my father approached ABC, which jumped at the deal. Not only did the show remain on ABC’s Saturday morning schedule for years to come— with new episodes, of course—but it eventually became a smash hit as the character reached iconic status.
The Ultimate TV Person
Sy Fischer enjoyed his meetings with Hanna-Barbera’s creative staff, during which they would exchange ideas about characters and which ones would work as cartoons. He loved working with writers and producers, especially on shows that he thought could become hits. Once, during the late 1960s, he had the idea that the Herman Melville novel Moby-Dick; or, The Whale would make a good Saturday morning cartoon. This amused Barbera, who put his team of writers on it, and a few months later, they had the cartoon Moby Dick, in which the titular whale is a hero of sorts, battling underwater villains and trying to make a better world with the aid of some human friends. Fischer helped bring out the best in his clients, and when many of their shows got on the air, they automatically drew interest from the licensing world, which is always on the lookout for characters that can transition from one medium to another. During the studio’s partnership with my father, Hanna-Barbera became one of the most important sources of licensed properties, approached by both large and small manufacturers. In 1966, Taft Broadcasting bought Hanna-Barbera, and by 1969, Taft set my father up in his own agency, the Sy Fischer Co. In the fall of 1980, a new division of
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Sy Fischer
the company, called the Taft Entertainment Co.—or TECO for short—was formed with Fischer as its president. Taft’s purpose behind the new division was to better manage its entertainment assets, which included Hanna-Barbera, the Sy Fischer Co., Ruby-Spears Enterprises, and Sunn Classic Pictures. Other people managed the Sy Fischer Co. after Fischer became president of TECO, but he still remained a close ally to Hanna-Barbera and kept abreast of everything that the studio was doing. Agents seldom get credit for the success of production companies, but Fischer really was an important force behind Hanna-Barbera’s best days. Along with selling many of its best-known shows, he conquered the licensing world through his business savvy, and the properties he championed would contribute heavily to American pop culture. Many of Hanna-Barbera’s licensed toys and other products from earlier decades are considered to be collectors’ items, and the shows themselves live on to this day in re-runs that are broadcast worldwide. The studio’s legacy, and Sy Fischer’s, will always be with us. •••• Stuart Fischer has worked at Universal Studios, where he helped develop shows to be sold to networks, as well as HannaBarbera Productions, where he developed shows to be sold to the networks and the first-run syndication market. Fischer has written books including Kids’ TV: The First 25 Years and The Hanna-Barbera Story: The Life and Times of TV’s Greatest Animation Studio, as well as magazine and trade journal articles. He has also created his own comic book, The Man-O-Saurs.
The Licensing Book • 47
Of Counsel
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Licensing 101, Part 76
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by James Kipling, Of Counsel
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This is the 76th article in a series devoted to the creation and documentation of the licensing relationship and the elements of a typical license agreement.
hether a property with the ability to be licensed is a motion picture, artwork, a corporate brand, sports team indicia, or any other intellectual property (IP), it is essential that the agreement defines which of the parties owns further derivations of the property that may result from the partnership, and distinguishes those derivations from the licensee’s independent creations.
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THE LICENSED PROPERTY
License agreements grant limited uses of the property for defined purposes for a limited period, and after the expiration of that period, all rights licensed under the agreement revert to the licensor. However, unless the agreement also addresses the ownership and permitted use by the respective parties of any additional IP included in the licensed products and related materials, there can be disputes both during and after the term of the agreement.
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DERIVATIVE WORKS
The term “derivative works” in the context of copyrights is defined at 17 U.S. Code 101 as follows: “A ‘derivative work’ is a work based upon one or more preexisting works, such as a translation, musical arrangement, dramatization, fictionalization, motion picture version, sound recording, art reproduction, abridgment, condensa-
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WHO OWNS THE I.P.? ?
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tion, or any other form in which a work may be recast, transformed, or adapted. A work consisting of editorial revisions, annotations, elaborations, or other modifications, which, as a whole, represent an original work of authorship, is a ‘derivative work.’” An artistic property can be applied to licensed products either in the “original” form depicted in the licensor’s style guide; or in an altered, amplified, or simplified form better adapted to the resulting manufactured products. The latter would be properly characterized as “derivative works,” to the extent they differ from the “original” property. As a simple example, an original 2-D Mr. Heroic character might have been used on packaging and in advertising in the 2-D form as he originally appeared in comic books. As used in licensed products, however, the character may have been transformed into 3-D sculptures, such as figurines and action figures, as well as into digital and other forms. Each new such creation is a “derivative work” of the original Mr. Heroic.
BOUNDARIES
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Quite reasonably, licensors expect to own works derived from the licensed property in the nature of those suggested above. Most licensor-drafted agreements include provisions by which any and all modifications, revisions, and renditions of the property will be owned exclusively by the licensor. However, too many licensor-generated license agreements go well beyond the reasonable and provide that the licensor will own the property, all derivative works, and anything and every-
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thing in connection with which the property is used. Here is an example of one such provision: “Ownership of all copyright, patent, and trademark rights in the Licensed Articles, Packaging and Promotional Material shall be in the name of Licensor or its designee, and Licensee hereby irrevocably and unconditionally transfers and assigns to Licensor or its designee in perpetuity and throughout the universe any and all of Licensee’s right, title, and interest, if any, in and to the Licensed Articles and the Packaging and Promotional Material. Notwithstanding their invention, creation, and use by Licensee or its agents, the foregoing shall become upon creation and remain in perpetuity the property of Licensor or its designee, and Licensor may use, and license others to use, the same. Licensee shall enter into written agreements with all of its employees and independent contractors (i) providing that all of the foregoing created by them during the course of Licensee’s performance under this Agreement shall become upon creation the property of Licensor or its designee either as works made for hire under U.S. copyright law, U.S. patent law or otherwise; and (ii) obligating them to assign all rights, including copyrights and patents, in such artwork and inventions to Licensor or its designee. Licensee shall furnish to Licensor, at Licensor’s request, full information and assistance concerning the procurement of such statutory protections as may be available therefore, together with the originals of assignments of all rights therein obtained from all such third parties to Licensor.”
DERIVATIONS OR INDEPENDENT CREATIONS?
This distinction becomes a concern for licensees when the focus is not upon renditions or derivations of the property itself, but rather upon the materials in or on which the property appears, or extraneous materials used in the product line that bear no elements of the property whatsoever. For example, if the licensee has in its existing product line a generic toy truck and for expediency the licensee adds the Mr. Heroic name and image by applying stickers to the doors of the truck, does it thereby lose ownership of the truck itself? If the licensee removes the stickers, can it no longer use the generic truck? If so, would the same be the result even if the truck were used in the Mr. Heroic line with no branded stickers? If the quoted pro-
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vision were read literally, the answer to all of these questions is “yes.” Depending upon how aggressively license agreements are drafted, such results are a possibility. Similarly, by reference to trademarks, the above provision could be argued to transfer ownership of important category brands formerly owned by the licensee to the licensor, should the licensee mistakenly incorporate the Mr. Heroic property under such a category mark. A more extreme example could occur if, during development of the Mr. Heroic line, one of the licensee’s engineers had invented the original LED and the licensee first used LEDs as headlights on Mr. Heroic’s truck. When read literally, the licensee would be required to transfer ownership of the LED invention and to assist in obtaining patent protection for the now ubiquitous LED in the name of the licensor. Consider the cruel joke that would be visited upon our downtrodden licensee if ownership of the LED were assigned to the licensor as required by the above provision, its use was denied the licensee, and instead was licensed to the licensee’s principal competitor. During negotiation, a licensee might be comforted by gentle words from the licensor’s representative that “it’s only boilerplate and has never been enforced”—but if an invention as valuable as the LED were at stake, this just might be the first time.
CONCLUSION
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The tedious IP sections of license agreements can make busy executives’ eyes glaze, but circumspect licensees won’t simply skim those crucial sections. Rather, they will focus carefully on the IP ownership and use provisions that could have devastating effects upon the value of the license agreement, and upon the ownership status of what previously had been their own IP. •••• James Kipling has represented licensors and licensees for more than 20 years, negotiating entertainment, sports, artwork, brand, invention, and technology agreements. He is Of Counsel with Dinsmore & Shohl LLP in Cincinnati, and can be reached at jim.kipling@dinsmore.com. Copyright: ©2015 James M. Kipling. All rights reserved.
Licensing Book • 49
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Inside Retail
Don’t TOY with Your BRAND STORY by Paul J. Russell
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othing excites a 10-year-old more than a trip to Disney World. It’s like visiting a distant planet developed just for kids. Every aspect of Disney is part of a bigger brand story, all created with kids in mind. From characters such as Mickey Mouse and Donald Duck to dinner shows such as Hoop Dee Doo Revue or Disney’s Spirit of Aloha, these themed events engage and connect with their audiences. In the retail environment, it’s imperative for a brand to connect with customers and provide an enjoyable shopping experience that keeps them coming back. An effective way to communicate a brand story is to showcase product in a brand concept shop. This is a small shop inside a retail store that provides a unique, branded shopping environment for target consumers. Your concept shop conveys your brand story, echoes your company’s DNA, and resonates with your customers long after they leave your store. Communicating your brand story is, in fact, storytelling. To tell that story, you must create a world where nothing exists except your unique brand and its message. This means merchandise, signage, graphics, and displays should all relate and culminate to deliver your story. In your world, everything plays a part in storytelling, from the colors of product packaging to the colors on signage. In addition, product should be organized, easily accessible, and displayed in a manner that provides an emotional connection to the customer. There are three key steps to developing a concept shop to present your brand story at retail:
1. SECURING A LOCATION TO TELL YOUR STORY Your environment must possess its own space to tell the story. A brand story may be presented on an endcap or a back wall, or in an aisle or larger section. The space you’re allotted may not be the same in all stores. Therefore, it’s beneficial to prepare various sizes of shop layouts that can be placed in different retail environments.
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2. COMMUNICATING YOUR STORY TO RETAILERS The vision for your shop should be communicated to each retailer through 3-D concept drawings. These drawings are an effective vehicle to explain your brand story to retailers before an actual concept shop is implemented. In addition, these drawings provide a visual of what the shop will look like in the proposed area. The drawings should reflect product quantities, how the product looks when it is presented on the fixtures, and corresponding signage.
3. IMPLEMENTING YOUR BRAND STORY The last factor in telling your story is to effectively roll out the shops at retail. This is executed through planograms and directives to communicate the details of setting up each shop while developing a project management schedule to stay on task. The directives and planograms work together to provide a visual of the completed shop. The project management schedules provide direction on what, when, and who will be completing each task in the implementation process. Telling a story at retail brings your brand to life and builds a long-term relationship that your customers grow to expect. Engage your customers with emotional connections by becoming a master storyteller. •••• Paul J. Russell is a visual merchandising and retail marketing executive with a comprehensive background in developing and executing integrated consumer-focused programs for manufacturers such as Williamson-Dickie Clothing MFG, Adidas America, and Reebok International. He has developed awardwinning concepts for Super Bowl XXXI, The Reebok Cup, and the Olympic Games, and has provided consulting services to speciality retailers such as Universal Studios and Jos A Bank Clothiers. His new book, Field Visual Merchandising Strategy, is available in the U.S. from amazon.com and bn.com. For a 20 percent discount, use discount code LICESNINGBOOK before May 31 on www.koganpage.com.
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The Voice Reaching Both Trade and Consumers
Contact: Jonathan Samet or Laurie Schacht Adventure Publishing Group 307 7th Avenue, Suite 1601 New York, NY 10001 Tel: 212-575-4510 Fax: 212-575-4521 www.adventurepub.com