Summer 2015
Featuring: • the
hottest
brands • the latest trends • the
freshest deals
Departments 14 Jackie’s Point 16 Licensing News 20 LIMA Update Educating the next licensing generation. 22 LIMA UK Kelvyn Gardner shares insight on how to pick the most lucrative licenses for your product. 24 Licensing 101: Direct to Retail Licensing 26 Talking Social Media: Why Engagement Matters 40 Inside Retail Carol Spieckerman looks at three trends that are changing licensing strategy. 42 TIA Perspectives 44 Property Profile: Strawberry Shortcake 48 Spotlight On: DreamWorks Animation Volume 32, NumbeR 3
50 A Look Inside: Activision
Features
54 A Look Inside: Hoho Entertainment
28
56 Spotlight On: Genius Brands International
State of the Industry 2015: Collaboration, Consumer Engagement, Social Media, and Licensing
CONSOR’s Weston Anson, Robert Strand, and Jemma Samala take a look into the growth of social media in the licensing business, and the ways in which consumer engagement is rapidly changing the industry.
30
State of the Industry Q&A
We chatted with licensors, consumer products manufacturers, licensing agents, and additional industry experts about the hottest topics currently surrounding the licensing industry.
60 A Look Inside: Sony Pictures Consumer Products 66 Hot Shots: Entertainment One’s Joan Grasso 70 Spotlight On: Epic Rights 74 A Look Inside: Sesame Street 80 Property Profile: Kong: King of the Apes 92 Corporate Corner: Beanstalk
44
Licensing Expo 2015
The licensing industry’s biggest event is back, and so is our annual showcase featuring more than 70 pages of coverage of the character and entertainment, corporate branding, and art and publishing sectors.
100 A Look Inside: Copa América
122
114 Spotlight On: Dissero Brands
Change Your Brain
Enhance your most valuable asset to increase productivity and keep your employees happy.
124
Five Stages of Trade Show Attendance
From the initial excitement to the final relief, C. Woodrow Browne walks you through the five stages of attending a trade show.
106 Property Profile: Girl Scouts 110 Art Licensing J'net Smith shares the keys to trade show success.
126 Co-Branding Ted Mininni advises on how to optimize licensed property and consumer product co-brands. 128 Of Counsel Jim Kipling explains the importance of anticipating a deal gone bad.
THE LICENSING BOOK, Summer 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.
JACKIE’S POINT
LICENSINGBOOK
®
THE
Cover Art by Rachel Hale®
www.licensingbook.com
As we return to Las Vegas once again for Licensing Expo, I can’t help but think how much has changed over the past decade, and how much has stayed the same—not to mention how much has returned for yet another round of success. I first began covering the licensing industry and attending Licensing Expo in 2002. At that time, the show was held in New York City, and the entertainment properties were based largely on TV shows and movies. This actually hasn’t changed all that much, except to say that the way people are consuming this media has changed dramatically. And these “new” methods of consumption are largely affecting the way content is produced and distributed, which also affects the development of the licensing program. Timing is more sensitive. The rollout of product must be timed just right, and marketing methods have changed dramatically. The way in which property owners and manufacturers are reaching and fully interacting with consumers on a daily basis via social media could not have been imagined at the turn of the century. Consumers expect to be able to go online and find further information about their favorite characters and additonal storylines to keep the plot moving in between broadcast TV airings. They use hastags to facilitate conversations 140 words at a time with fans around the world whom they’ve never
14 • The Licensing Book
met in real life, but who share a passion for a favorite TV show, film, or character. All of this means that there is a lot more to consider when launching a property for licensing. Prospective licensees want to know about the full course of entertainment and outreach. Consumer engagement is at an all-time high, and we even have ways to measure this! An engaged consumer is a dedicated fan, and fans want licensed product. Then, there are properties launching entirely on YouTube or via app that could be the next big thing. How can you tell? There are metrics, but you need to be ahead of the metrics. Once a potential property has become the top downloaded video, app, or video game, is it too late to begin production on a line of consumer products? Some of these properties have proven themselves to be evergreen—or at least not a quickly passing fad—but it really helps to be aware of what’s out there, what’s available for licensing, and what is big in other countries that may be headed this way. Check out our State of the Industry Q&A on page 30 to see what your colleagues, some of the biggest names in licensing, have to say about the current trends and how they stay ahead of the curve. And be sure to check out the hottest properties available for licensing, begin•••• ning on page 44.
ADVENTURE PUBLISHING GROUP INC.® Vol. 32, No. 3, Summer 2015 President 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
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Licensing News TV LICENSING
Wicked Cool Toys to Produce Kid-Friendly Masterchef Junior Cooking Line Wicked Cool Toys has signed a licensing agreement with Endemol Shine North America, the producers behind Fox’s Masterchef Junior, to create a line of kid-friendly cooking products inspired by the show. Designed to empower kids of all cooking levels, the toys will improve kids’ culinary skills while encouraging them to have fun in the kitchen. The line will launch exclusively at participating Wal-Mart stores in November.
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.
Fox’s Masterchef Junior
BRAND LICENSING
BEVERAGE LICENSING
Care Bears, Build-A-Bear Workshop Announce Partnership
The Wildflower Group to Represent Campari America
America Greetings Properties (AGP) and Build-A-Bear Workshop have partnered to bring the Care Bears brand to Build-A-Bear Workshops worldwide for a limited time next year. Guests will be able to create their own stuffable plush toys and personalize their huggable bears with a range of accessories. The Care Bears collections will be available at Build-A-Bear Workshops in the U.S., Australia, Bahrain, Canada, Denmark, Germany, Ireland, Japan, Kuwait, Mexico, Northern Ireland, Norway, Oman, Singapore, South Africa, Sweden, Thailand, Turkey, the UK, and UAE. First introduced to AGP in 1982 through products, greeting cards, and later an animated CGI TV show, Care Bears has become one of the world’s most popular children’s properties with a robust portfolio of thousands of Care Bears licensed products, available at retailers globally.
The Wildflower Group has been named the U.S. licensing agent for several of Campari America’s brands, including Wild Turkey Bourbon, Wild Turkey American Honey, Cabo Wabo Tequila, and SKYY Vodka. The agency will develop a licensing and branding program for these top-shelf spirits, largely focused on the food and beverage, apparel, accessories, housewares, and promotions categories. Campari America spirits are among the most popular in the world, with SKYY Vodka ranked the No. 1 domestic premium vodka in the U.S. Wild Turkey is a real Kentucky straight bourbon whiskey. American Honey, which blends Wild Turkey’s heralded bourbon with the smooth sweetness of honey, was the first of its kind in 2006. Cabo Wabo was created by Rock ’n Roll Hall of Famer Sammy Hagar in 1996, and is now one of the most awarded 100-percent blue agave tequilas in the world.
16 • The Licensing Book
Summer 2015
Licensing News BRAND LICENSING
TV LICENSING
Chinese Laundry, Majesty Brands Collaborate for Legwear Collection
Walkers Shortbread Signs On for Outlander
Women’s footwear company Chinese Laundry has partnered with Majesty Brands to develop a collection of legwear. The line, beginning development in July, will include socks, tights, leggings, leg warmers, boot toppers, and foot liners. The products will combine Chinese Laundry’s style and Majesty’s unique designs and distribution capabilities. The partners were brought together by online brand licensing network, iQ License.
Knockout Licensing, the licensing agency managing the merchandise licensing program for Outlander, on behalf of Sony Pictures Television, has brokered a multi-year license with Walkers Shortbread to create special Outlander-themed shortbread products and packaging. Walkers also teamed with Starz for a special promotion coinciding with the April 4 premiere of the second half of Outlander’s debut season. In addition to the assortment of Outlander-themed shortbread cookies, Walkers will provide Outlander-themed in-store displays beginning this September. Additional products, including cookie tins, are in development for next year.
ENTERTAINMENT LICENSING
Angry Birds Flocks to Food and Beverage Category Rovio Entertainment, developer of the Angry Birds franchise, has signed Brand Central LLC to further extend its licensing program into the food and beverage category. Brand Central, which currently represents national food and beverage brands such as Dr Pepper Snapple Group, Krispy Kreme, MasterChef, MasterChef Junior, and Tapatio, will manage food and beverage licensing opportunities for Rovio in the U.S., extending beyond its current partnerships and targeting category leaders and CPG companies. Next May, Rovio Entertainment, in association with Sony Pictures Entertainment, will release Angry Birds, the first feature-length movie for the franchise. A raft of top-tier licensees have already signed on for the movie’s licensing program in the UK.
18 • The Licensing Book
BRAND LICENSING
Epic Rights to Represent Madonna’s Hard Candy Fitness Brand Epic Rights will develop a global merchandising program and licensing rights for Hard Candy Fitness brand, a luxury fitness brand created in partnership with New Evolution Ventures LLC, Madonna, and her manager Guy Oseary in 2009. Epic Rights will present the brand to potential partners at Licensing Expo in Las Vegas.
Summer 2015
LIMA Update
Educating the Next Licensing Generation by Martin Brochstein, senior vice president of industry relations and information, Licensing Industry Merchandisers’ Association (LIMA) here will the next generation of licensing executives come from? As new business paradigms continually evolve, technologies develop that either disrupt or facilitate the way we do things, and business models emerge, it’s important that those entering the business be prepared to confront tomorrow’s challenges. Education has always been one of LIMA’s top priorities. It’s reflected in the year-long Coursework in Licensing Studies (CLS) program for those already in the business world who want to enhance their knowledge of the way licensing works, in the ongoing LIMA webinar series, and the extensive Licensing University seminar program that we stage in conjunction with International Licensing Expo in Las Vegas. Some of the newest developments involve the collegiate world, where there are two goals: to raise the professional profile of licensing as a business model, and to give students a firm grounding in how the business works. Licensing professionals have become increasingly involved in several countries with undergraduate, graduate, or continuing education courses, in schools such as New York University in the U.S. and Man-
W
”
Some of the newest developments involve the collegiate world, where there are dual goals: to raise the professional profile of licensing as a business model, and to give students a firm grounding in how the business works.”
20 • The Licensing Book
chester University in England. More directly, LIMA has embarked on a few initiatives: This past semester, LIMA worked with UCLA Extension to offer a 12-session course on “Licensing Entertainment: Strategies for the Global Marketplace,” with course leader Ken Markman, president of KKM Global Brand Strategies, and a roster of speakers featuring some of the industry’s most prominent leaders. Last year, LIMA began a collaboration with Hong Kong University School for Professional and Continuing Education (SPACE) for the Executive Certificate in Licensing Practices, an extensive program building fundamental knowledge in licensing, marketing, and brand management. In our most extensive and far-reaching effort, this year a formal minor course of studies in licensing and branding at Long Island University (LIU)-Post’s College of Management in New York will debut as part of a planned Branding Institute. The Institute’s goals are to: • Encourage and prepare university students to enter related fields in a manner that enables them to immediately make a difference and succeed • Support faculty to conduct research and develop expertise in brand equity, brand audit, and strategic brand licensing with an emphasis on using research findings to further industry best practices • Offer training programs for the business community to, among other things, strengthen brand licensing strategies for business growth and integrate academic research in developing industry best practices, among continued on page 120
Summer 2015
LIMA UK
Choosing Successful Licenses When to Put Personal Interests Aside in Favor of Acquiring Rights to the Most Lucrative Properties for Your Brand
I
by Kelvyn Gardner, managing director, Licensing Industry Merchandisers’ Association (LIMA) UK
”
n spring, a young licensing pro’s fancy turns to Licensing Expo Las Vegas—if you’ll forgive the sloppy literary paraphrase here. As always, there will be a large contingent of UK licensing pros, young and old, making the trip this year. The advance of Brand Licensing Europe as a truly international event is great news for the British business, but Licensing Expo remains the show of shows. So what’s on our collective minds here in the UK? I’ve written before about the return of movie licensing, so suffice to say right now that many eyes, ears, and minimum guarantees will focus on Avengers: Age of Ultron, Jurassic World, Minions, and, for later in the year, Star Wars. The last of these is making noise everywhere, of course. Personally, I always have an extra twinge of excitement about a new Star Wars licensing program. The first licensing deal I ever made was for Return of the Jedi back in 1983. The first license is a milestone for anyone, and I remember persuading my boss to sign the deal against skepticism at the time that movies didn’t shift merchandise in our category. Well, fortunately, I was right—not a difficult call, I know, but it was against the judgment of my superiors at the time. This leads me to ponder a regular licensing conundrum: how do you separate your personal tastes and interests from your professional business judgment, especially when it comes to mass entertainment properties or major sports? In 1983, I was a Star Wars fan—and still am. How much did that help me to hold my nerve and push for the deal against internal opposition? Did I get lucky that
There’s another element much favored when making licensing acquisition decisions: gut feel.”
22 • The Licensing Book
my taste was for such a licensing phenomenon? This is something I’ll never be clear on, but it is important. If I look at it the other way, I reckon that if a licensing pro doesn’t have a special fancy for a property, be it a hit TV show like Game of Thrones (which appeals to the age demographic into which many licensing execs fall) or an animated preschool series, they should be able to make a better judgement about the property’s potential for their range of products. I’m not a great fan of professional soccer; my favorite sports are rugby and cricket. Nonetheless, I’ve been involved with dozens of soccer licenses, from the FIFA World Cup to domestic leagues in many countries. The other two sports, despite my personal preference, have been featured only rarely in my licensing portfolio. Hold on a sec, though. There’s another element much favored when making licensing acquisition decisions: gut feel. You hear it often, in casual conversations over a beer and in formal presentations at conferences. Gut feel is probably where licensee response meets licensor ambition for their partners to “get” the property, to be “committed to” the property. Will you have a better feel for a new film, say, if you’re already a fan of the source material: book, comic book, play, or TV series? I guess I’ll have to reserve judgment on that. What’s certain is that our licensing judgment is about to be challenged again big-time in Las Vegas. I look forward to it. •••• 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.
Summer 2015
Licensing 101
DIRECT a TO
a RETAIL
LICENSING
by Jim Sachs, partner at Harris-Sachs LLC Licensing irect to Retail (DTR) licensing partnerships have been around for a long time. These relationships, such as exclusive licensing deals between WalMart and Disney, serve as a competitive edge for the biggest and most influential retailers and licensors. But what about regional retailers? How can regional grocery, mid-tier, and upstairs retailers take advantage of • Eliminates comparison DTR licensing? How would it help shopping them compete against the retail giants or even category killers in • Drives traffic their markets? Regional retailers have the abil• Provides differentiation ity to move quickly and are more • Grows the retailer’s agile than their large competitors. brand identity They have a better micro understanding of their customers’ likes Develops an in-house brand and dislikes, shopping habits, and motivations than do the remote corporate behemoths. I may catch some flack for this from regional managers of these major retailers, but it is a fact that there has to be consistency in merchandising throughout the large chains, especially when it comes to licenses and product selection. What licenses should a retailer consider? How does the retailer engage in the selection process? There are many brands that cut across numerous product categories in the beginnings of their evolution. These are not necessarily startups, but ongoing, well-thought-out properties in the licensing market with a proprietary history. The licensors and agents representing the licenses are sometimes more amenable to doing a regional DTR deal as a way to launch their clients
D
How a License Benefits Regional Retailers:
•
24 • The Licensing Book
nationally. Designer and art licenses are also an effective fit for retailers. Depending on the product category, any number of licensed properties can be applied. The tabletop category is always an easy fit, and is driven by designs (unless the economy dictates solids). Even wellknown designers and artists will often agree to design exclusively for a retailer. They design lines that are trendy and targeted directly to the regional demographic. These designs don’t conflict with their national licensees. The retailers will come up with a program brand name that is attributable to the designer. Licensing opportunities may be regional in nature— highly recognizable with great credibility in a specific market or region. For example, we have a client licensing Moon Pie (a graham cracker cookie with marshmallow filling enrobed in chocolate). Our client makes the ice cream novelty equivalent. Since Moon Pie is a Southern brand that sells well in the South, if a Southern grocery chain had the foresight to consider it for DTR licensing, that chain could develop and own an ice cream treat with a great regional name. Ours is often a retail world of mundane merchandising characterized by a mindset in which no one wants to take a risk on anything new. In a world of limited shelf space chased after by more and more vendors, retailers can stand apart from the pack through smart, imaginative licensing. The combination and permutations of this strategy are limitless. How does e-com•••• merce figure into all of this? That’s next. Jim Sachs has 30 years of licensing business experience and served as vice president of sales, marketing, and licensing at Chein Industries. He spent the past 10 years in partnership with Steve Harris at Harris-Sachs LLC Licensing.
Summer 2015
Talking Social Media
WHY ENGAGEMENT MATTERS How Retweets, Shares, and Comments Can Take You to the Next Level by Marissa DiBartolo, co-director of digital and social media, the Toy Insider ocial media is a numbers game. The more followers you have, the more brand awareness you enjoy. And while it’s great to boast millions of followers and page likes, engagement is another extremely important component of social media. Comments, replies, shares, and favorites all count as engagement—and these actions show that people are actually reacting to your content—which is exactly what you want. Not only does engagement help you evaluate what is working for your following, but it boosts your exposure. The more engagement on a post, video, or picture, the more people who are sharing your content, and the more visible you will be on social media. Let’s break it down by the three most popular social platforms:
S
Gaining new Twitter followers is important. Once a person clicks that “follow” button, your tweets now show up in his or her main feed, giving your brand lots of exposure, especially if that person is an active Twitter user. However, if your followers are not interacting with your tweets at all, meaning they are not replying, retweeting, or favoriting your tweets, then your presence will grow at a much slower rate. Impressions are based on sharing, so engagement is extremely important on Twitter. Retweets are the best, because they are quick and easy and they will show up on that person’s default “Tweets” feed. Favorites and replies are good, but these show up in a user’s “Tweets & Replies” feed, which other users need to actively click to see.
No matter how many page likes you get on Facebook, you will only continuously be visible to new users if people are sharing your posts. The “share” button allows
26 • The Licensing Book
users to copy your exact post to his or her timeline, and add in a special comment of their own at the top, which may explain to their friends why they thought the post was relevant or interesting. This kind of exposure is extremely integral in growing your Facebook following and reaching new users.
Instagram is completely photo- and video-based, which is perfect for showing off new products, teasing new content, or sharing funny memes. You cannot place live links in Instagram posts, so it is difficult to generate site traffic using this platform. That said, since people won’t be clicking off to view your website, engagement is especially important on Instagram. When people like a post or leave a comment, it shows you that this type of content is working for them, and that you should post more of it. If a post gets very few likes or comments, then try and figure out what it was about this post that did not resonate with your followers. Engagement on Instagram is great to help you develop your brand and figure out what your audience likes and doesn’t like. Additional platforms where engagement is important include Pinterest and Tumblr, because pins and tumbles greatly increase your exposure. Giveaways are a fast and easy way to increase your engagement, especially ones that challenge consumers to share, comment, or retweet one of your posts. Numbers matter in the digital space, but make sure you look beyond simple page likes and followers. Good engagement leads to more of those basic numbers you’re after, as well as increased web traffic, brand awareness, and sales. From website click-throughs to picture and video shares, social media is an intricate web driven by consumer participation. ••••
Summer 2015
State of the Industry
Weston Anson, chairman, CONSOR
Robert Strand, vice president, CONSOR
2015:
COLLABORATION, CONSUMER E NGAGEMENT, SOCIAL M EDIA, AND LICENSING by Weston Anson, Robert Strand, and Jemma Samala
R
emember when a picture was worth a thousand words? Now, we’ve propelled forward to a time when 140 characters is valued at more than $10,000. To engage with the 1.8 billion social media users worldwide, the licensor/licensee relationship must evolve to include online product placement, promotions, collaboration, and e-commerce.
What does all of this mean to licensors and licensees?
Beyond making and selling products, businesses need to engage with consumers like never before. Customer relationship management tools, special interest blogs, more effective ways to develop websites, e-mail lists, and—of course—social media are enabling businesses to reach larger audiences with increased benefits, but also challenges. On the pro side, a brand may have Jemma Samala, research a direct relationship with the conanalyst, CONSOR sumer with no middleman. On the con side, the shifting social media landscape makes getting consistent results—and measuring them—tricky. Additionally, Facebook recently highlighted how social media can be fickle and change the rules along the way when it began restricting any form of marketing without paying for it. Now, an artist could release a new album and want to talk about it, but since that’s considered promotion, he or
28 • The Licensing Book
she would have to pay for marketing it. However, the artist can post a picture of his or her favorite licensed coffee mug for fans to like without paying a fee. Popularity may wane from one site to the next, so in the spirit of diversity, don’t put all your eggs in one social media basket.
Top Trends in Social Media Leading into this year, Fortune magazine published five trends that could change how businesses use social media: • Staying relevant on Facebook will cost companies more • Use of more tools to see if Tweets actually produce sales • Social networks will dive deeper into e-commerce • Customer service: Social media and phones work in tandem • The biggest social media innovations will come through the back door, meaning the cloud has changed the way software and technology—including social media—enter companies. These trends are making their way into the world of licensing in multiple ways: Licensors and licensees have access to celebrities and potential celebrity endorsements that previously may have been out of reach. From a “right place, right time” perspective, today’s social media can help extend reach beyond TV, elevating the significance of product placement efforts. John Deere, a brand that once labeled wearers as straight off the farm, enjoyed a tremendous sales boost in 2004 from young people imitating Hollywood stars such as Ashton Kutcher, a native of Iowa, where Deere & Co. is headquartered. Kutcher often wore the brand’s baseball cap on MTV and in other TV appearances. Today, you don’t have to wait until the TV appearance is broadcast; everything is happening in real time on social media. From a potential paid endorsement perspective on Twitter, Instagram, or other apps, a celebrity can be paid to Tweet about or post a picture with a product. For example, Snoop Dogg was recently paid $3,000 for a Twitter
Summer 2015
endorsement, and Kim Kardashian was paid $10,000. Social media is also fostering a new world of “celebrities,” and it’s worth noting that not every celebrity has to be of A-level status to potentially make an impact. For example, brands that are about—or have a marketing platform for—empowerment, fitness, health, and real beauty could look at celebrities such as Shawn Johnson, a retired American artistic gymnast, 2008 Olympic balance beam gold medalist, and team all-around and floor exercise silver medalist. Since retiring in 2012, Johnson proved that her appeal transcends sport. Her successful appearances on Dancing with the Stars, Celebrity Apprentice, and at Super Bowl XLIX have highlighted her ability to seamlessly transition from athlete to celebrity. She has built more than 1.5 million social media followers with a strong appeal to tween and teen girls, and could make a more cost-effective and impactful product or brand ambassador via traditional and social media means. Licensees have easier access to consumer directed advertising and promotion options in general, as well as with regard to negotiating contractual advertising requirements. A lot of licensing contracts have advertising and marketing requirements, which often go into a general brand marketing pool for the licensor, a retail promotion, or select advertising. Now, manufacturers and their sales forces are using Facebook, Pinterest, and the like for both consumer and business-to-business promotion. We recently spoke with a 45-year veteran sales rep in the gift industry who joined the Gift Sales Manager Association (GSMA), an organization created for and by gift and home décor sales managers, three years ago. Initially, he joined as a way to stay connected with his industry peers, only to find that the educational opportunities—humbly specific to how to leverage social media to drive new business—have proved incredibly beneficial. If said sales rep is using social media to drive sales of licensed products, then the licensee has an example of satisfying a requirement to market and promote its goods. There are hundreds of daily flash sites offering “deals of the day.” Tapping into these sites with passion points aligned with a licensed brand or branded product solution can yield big numbers. The gift rep also shared that one of his products earned $1 million in one day on woot.com. Imagine if this product had been licensed and promoted through social media—incremental sales could have been a lot more. Licensors and licensees have new ways to collaborate to help extend reach, build loyalty, and generate new revenue. We’ve previously stated that consumer loyalty comes from collaboration. When two brands join forces to bring together two brands consumers love, it can be a home run—literally. In May of last year, Peanuts Worldwide formed a partnership with Major League Baseball (MLB) to leverage the power, strength, and appeal of MLB. The 30-member teams and their jewel events put the spotlight on Peanuts
Summer 2015
Sports in an integrated marketing and merchandise program. This initiative provided a platform to launch Peanuts Sports, created brand noise, and generated exposure. From a merchandising perspective, licensees were provided an opportunity to freshen product mix, open new distribution, and drive incremental revenue. And, from a consumer engagement perspective, fans connected not only via product, but also through social media. In addition to the traditional press coverage and media exposure, Twitter and Vine saw impactful activity. And sometimes product can be king—a Wilson A2000 Charlie Brown Peanuts Limited Edition Glove appeared on Twitter and garnered 4,841 retweets, 487 favorites, and 471,000 followers, and is now on eBay for $400. The value to the brand owner is exposure, engagement, and revenue, and for licensees, potential real-time feedback on licensed products, as well as ways to promote and sell their goods. Brands and licensees can collaborate with e-commerce sites to build email lists, or partner with special interest websites or blogs linked to social media and e-commerce. As social networks dive deeper into e-commerce, so can the world of licensing. Last fall, Snapchat launched Snapcash and became one of the first major social networks in North America to allow users to transfer money to one another in messages. Beyond peer-to-peer, this paves the way for social networks to dive into the world of e-commerce. The convergence of e-commerce and social media would allow retailers and/or special interest sites to send out offers for specific products to potential consumers in the form of Tweets or posts. For example, consumers on Twitter can purchase products with a tap or two. The world of sports-licensed product companies and retailers may now include consumers in the “if-win” order process. Not only would this help provide real-time data with regard to product demand, it may help the leagues to collaborate with licensees to market and sell new products to consumers like never before.
The Licensing Bottom Line The collaboration between consumers and licensors/licensees is making social media a driving force behind the licensing industry. The key to successful licensing programs is consumer engagement— and that’s what social media is all about. When consumers develop an affinity to your brand through social media, you create a family for your brand, or a loyal brand village. Additionally, positive consumer engagement brings forth value to your brand. At CONSOR, we use a simple, tried-and-true formula to determine value: context + time = value. The context of social media, plus the time investment in building consumer relationships, will equal more value to your brand. Our advice for those in the licensing industry: Use social media, and use it wisely. It doesn’t just add brand equity, it adds equity. ••••
The Licensing Book • 29
State of the Industry
Ashley Maidy
Jim Fielding
Head of Global Licensing and Partnerships,
Global Head of Consumer Products,
Activision Publishing
DreamWorks Animation & AwesomenessTV
How are you creating licensing programs that engage consumers on multiple platforms? Our goal is always to collaborate with partners who will create products that are reflective of our brands. One great example is our collaboration with Crayola. Skylanders joined Crayola’s growing portfolio of digital product offerings for tech savvy kids with Color Alive!, the first augmented reality product featuring Skylanders that allows kids to bring their coloring to life. Furthermore, a special Crayola edition of the Skylanders Trap Team Starter Pack featured unique black and white line art of fan-favorite Skylanders characters for Portal Masters to color in using Crayola crayons included in the Starter Pack. Fans can then watch the characters come to life on their smartphones or tablets using Crayola’s new 4D Experience augmented reality technology. These kinds of experiences engage our fans beyond the Skylanders gameplay and create meaningful touchpoints. How is the changing retail landscape affecting the ways in which you manage your retail partnerships? With the increasing merging of digital platforms and physical instore experiences, retailers are seeking creative executions that resonate with their customers. With Skylanders in North America, our focus is on driving game, toy, and licensed merchandise sales with top retailers. We work closely with our licensees to create account-specific programs. For example, the “Meet the Minis” program at Wal-Mart featured exclusive Mini toy packs and licensed merchandise with unique Mini artwork and enabled fans to learn more about Skylanders characters, as well as unlock exclusive content via a special dedicated app. At Toys “R” Us, we continued to extend the Legendary Series of toys and licensed products, which included partnering with IDW to create three Legendary Mini comic books, each with an exclusive Trap. These types of win-win collaborations drive increased value to fans.
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What new challenges are emerging as an effect of the way people are consuming entertainment? The major challenge around consumption is the pace of change and the adoption of new consumption platforms. As the landscape evolves rapidly, we must evolve at the same pace, educate ourselves, and put ourselves in a position to be nimble and to adapt. We need to move faster and be smarter, all while learning as we go. All of this is in the interest of interacting with consumers and working to understand how, when, and why they want their content. How are you using social media platforms to enhance your level of interaction with consumers and increase brand recognition? At DreamWorks Animation and AwesomenessTV Consumer Products, we are leading the way in engaging directly with our consumers across all social media platforms and applications. For both brands, as well as our DreamWorksTV dedicated YouTube portal, we create custom content, encourage user-generated content inspired by our franchises and stories, and engage in two-way dialogues with our fan base wherever possible. We work hard to embrace all of these new tools as we develop our relationships with our consumers and partners. What are the keys to licensing properties internationally and creating truly global brands? The keys to really thriving on a global level are solid and lasting partnerships, solid strategy, and solid communication. It is also incredibly crucial to hold regular in-person meetings with key partners globally to fully understand and appreciate their market and opportunities. But, of course, it all starts with the content. Everyone’s goal is to create globally exportable and relevant content and storytelling, and I think we’re doing a great job at DreamWorks and AwesomenessTV!
Summer 2015
Leigh Anne Brodsky
Liz Kalodner
Managing Director,
EVP and General Manager,
Peanuts Worldwide & Iconix Entertainment How do your licensing programs engage consumers on multiple platforms? With Strawberry Shortcake, we have seen success for the brand in the entertainment and digital spaces. Strawberry Shortcake’s Berry Bitty Adventures is now entering its fourth season on Discovery Family (formerly the Hub) and past seasons are doing well on Netflix. We’re a top girls’ property in the iOS app store, where we have a branded room, and our apps from popular developers like Budge Studios and Cupcake Digital have seen more than 35 million downloads. This all lives alongside and elevates our more traditional licensing program, which includes a toy line from The Bridge Direct and a publishing program with partners Penguin and Bendon. How are you engaging consumers with your brands at retail? Peanuts products appear at all segments of the retail spectrum, from highend presence with kids’ sleepwear from Hannah Anderson, found at Nordstrom and in HA catalogues, to a seasonal summertime line of home and outdoor entertaining collection at Target. We have a Peanuts presence all year round in Hallmark Stores and have long-standing relationships with department stores such as Macy’s in the U.S. Internationally, our Peanuts fans find cool and high-quality apparel in fast fashion retailers such as Uniqlo, Zara, and H&M. Many more movie-based and classic merchandising retail tie-ups will hit specialty stores, Toys “R” Us, and mass retailers in the coming months as the movie launch approaches. With properties being introduced in so many new ways, are manufacturing partners and retailers ready to take new risks? I hope so. The consumer is willing to buy unique, surprising, and delightful items that they cannot just find everywhere. We constantly challenge our partners to push the envelope and develop products that are new and fresh. I always say that retailers ask, “what’s new?” If we and our licensees can deliver something that is differentiated and appeals to trends and where the market is heading, then the retailers will bite. We like to look at the centers of creative excellence we have access to everyday with our hundreds of licensees around the world and we share this with our partners to inspire them to try new things and push the envelope, and that’s what retailers want to see.
Summer 2015
CBS Consumer Products What new challenges are emerging as an effect of the way people are consuming entertainment? As the proverb goes: “If the mountain won’t come to Muhammad, Muhammad must go to the mountain.” Whether viewers are consuming programming on one device or another—whether they’re watching via broadcast or streaming, live or delayed, subscribed or not— they demand that the entertainment be delivered to them and customized for them. Similarly, we can no longer expect that fans will come to one central place to buy merchandise. Instead, we must go to them and offer product across multiple platforms, including smart TV, PC, or mobile. And that product must be as personalized as possible so that the consumer can have what he wants. All of these developments are a boon for e-commerce, which becomes more important and more accessible, but they are a challenge in terms of efficiency, cost, and volume. Which areas of licensing are expanding and where are you seeing contraction? As brick-and-mortar retail becomes more challenging for all parties (licensors, licensees, and retailers themselves), we see physical goods being supplanted by digital ones, material goods replaced by experiences, and ordinary product superseded by noisier, splashier PRworthy introductions. And e-commerce is certainly growing at the expense of traditional retail. Accordingly, as everyone tries to mitigate risk, we see a trend toward smaller or no inventory positions with a growing business in on-demand merchandise. The influence of Silicon Valley and our geek culture is also being seen in properties themselves: superhero, comic bookrelated entertainment is soaring at the expense of more demure content.
The Licensing Book • 31
State of the Industry
Liza Abrams
Michael Gosegen
Vice President, Global Licensing and Marketing,
Co-Founding Partner,
Sakar What trends are you seeing in the way brand and property owners are approaching licensing program development? I think the overwhelming trend across the board is the need for complete 360-degree content, and that content needs to be engaging to kids at every touch point: webisodes, TV, social media, publishing, marketing, etc. When a brand lacks content and freshness, it loses its appeal and suffers across the board. As a new generation of web-savvy and social mediaobsessed consumers emerge, brands have a great opportunity to incorporate digital shorts, Snapchats, and other web-based content to extend brand engagement. Without that, they will be left behind. With properties being introduced in so many new ways, are licensors and retailers ready to take new risks? Yes and no. I think licensing by its very nature is risky. Licensors and retailers are always going to be looking for something new, fresh, and different— something no one else has. Certainly we have seen this with web- and app-based brands. At the same time, it’s interesting to me that “what’s old is new again.” The abundance of retro properties in the market is staggering. I’m not sure if retailers and licensors are risk averse, or if there is a lack of creativity in the marketplace. Retro properties tend to be more turnkey. If a brand has enjoyed past success, after a fresh coat of paint, it is likely set up to repeat. It’s a doubleedged sword; most don’t want to go out on a limb. At the same time, some of the biggest successes have come from taking risks. I think doing a bit of each mitigates that risk to some extent, which is why both sides continue to be supported.
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All-American Licensing & Management Group Which areas of licensing are expanding and where are you seeing contraction? Food licensing and food brands are expanding both from a co-branding standpoint and from a need to extend their consumer touchpoints in multiple ways. Traditional retailers are also finding ways to lure consumers’ shopping dollars through their stomachs. Licensing food was long considered the bastion for children’s and entertainment properties; however, the trend is moving more toward adults—and especially Boomers. Starbucks continues expanding its brand from canned frappuccinos to energy drinks and lemonades. And, speaking of Starbucks, Macy’s is poised to continue to open more and more Starbucks in its stores. Urban Outfitters has also added unique food items to their stores. Our agency was just involved in licensing the venerable Hatfield & McCoy Family brand for a type of old-fashioned whiskey moonshine that has really resonated with consumers. How are you using social media platforms to enhance your level of interaction with consumers and increase brand recognition? The new challenge in 2015 is mobile, mobile, mobile. Today’s CPG company will have ample ways to interact with consumers; the trend is moving toward a rapid confluence of buying opportunities from a variety of digital platforms. Like an item on Facebook or Instagram, and you’ll be able to click and be directed to a place to buy it. There are sites now that will take your portfolio of brands and instantly turn viewers into shoppers, and shoppers into buyers. How is the changing retail landscape affecting the ways in which you manage your retail partnerships? The axiom that retail is king is no longer the standard; e-commerce is the new king. Today’s retailers are looking for multiple touchpoints of engagement directly with their customers. The new buzzword is “omni-channel.” Going forward, expect retailers to double down on strategies to continue to find ways to bridge the gap between offline and online e-commerce channels. Retail will also step up efforts to expand the retail experience into other mobile aspects of the customer experience, including order taking, fulfillment, payment, and increased loyalty.
Summer 2015
Dell Furano
Joan Grasso
CEO,
VP, Licensing— North America,
Epic Rights
What trends are you seeing in the way brand and property owners are approaching licensing program development? Every industry is recognizing the benefits of celebrity/artist marketing, which has spurred significant global licensing growth, and I do not see that trend slowing anytime soon. Actors, musicians, athletes, and any recognizable name and face can capitalize on that celebrity status by licensing their name to any variety of product categories, from apparel and skincare to financial services and spirits, wine, or beer. Savvy companies are associating their brand with celebrities from the very beginning of product development because they understand that the right personality or celebrity brand ambassador can offer enormous value when it comes to winning market share. One stellar example is the recent launch of Tidal Music, a new music streaming service that competes with Spotify and others. The company secured endorsements from top music artists such as Madonna, Rihanna, and Jack White right out of the gate, making the artists equity partners so they have a vested interest in driving fans to the service. We’re seeing deals like this more frequently and on a global basis. What are the keys to licensing properties internationally and creating truly global brands? Social media is definitely one of the crucial components in developing a successful global brand. It starts with a robust and focused website and goes well beyond the traditional Facebook, Instagram, and Twitter. Those platforms are certainly important, particularly in the U.S., but your brand needs a strong local presence and those sites vary greatly from market to market. In Asia, for example, Sina Weibo in China has 500 million total users, Line in Japan just passed the 600 million mark, and there are similar sites throughout Europe and South America. If you can provide that level of marketing support to your licensing partners, there’s no limit to the deals you can make.
Summer 2015
Entertainment One Family How are you creating licensing programs that engage consumers on multiple platforms? Our digital strategy is a key component of our licensing program. We know that today’s consumers are viewing content in both new and traditional ways, at all times of the day and at home as well as in the car and other locations. We want to ensure that we are reaching our fans wherever they are engaging with our properties. Therefore, we need to have a presence on all digital platforms and provide the same experience on each one. Our TV episodes and gaming apps are available for all platforms, and we have a strong presence on YouTube, as well as across social media, which is extremely important to the growth of our licensing program. The social media channels allow us the opportunity to engage immediately and frequently with the moms of our core audience to let them know what is happening with our brands, provide them with information they need, and address any concerns they may have. The digital piece of our program will continue to be a key component of all our marketing and brand-building efforts. What new challenges are emerging as an effect of the way people are consuming entertainment? It’s not enough to have just a traditional broadcast platform anymore, as even preschoolers are consuming entertainment via media beyond TV. Many are multi-platform consumers and quite savvy at it, so in addition to having a traditional licensing program, we also are planning for property extensions to reach our target audience. These property expansions require quite a bit of additional resources. We now need to make our content available on digital platforms, and we also must communicate with our fans via multiple social media avenues and engaging live experiential events, which they have come to expect. In this new age of consumers viewing content on multiple devices, our core plans have been extended to reach them everywhere they want to engage with our brand and do so in fresh and exciting ways that are seamless to the fan.
The Licensing Book • 33
State of the Industry
Josh Silverman
Kirk Bloomgarden
EVP, Global Licensing
SVP, Global Consumer Products,
Disney Consumer Products What are the keys to licensing properties internationally and creating truly global brands? A great story is a great story the world over, and we’re privileged to have a wealth of stories and characters that are loved around the world. Disney, Pixar, Marvel, and Star Wars are renowned global brands powered by iconic franchises that tap into universal themes such as family, friendship, and heroism. Each market has its unique attributes, and we localize product programs to ensure they resonate with people in the region, but our goal is to always maintain the integrity of the storytelling. We believe that continued growth in our international business is essential to our longterm success, and partnering with best-in-class licensees and retailers across the globe is key. How are you creating licensing programs that engage consumers on multiple platforms? Disney Consumer Products puts the consumer at the center of everything we do, whether that’s creating innovative products that extend the storytelling from our movies and TV shows, or creating brand experiences on different platforms. Every platform creates different storytelling opportunities and we work to optimize the benefits of each for our audience. For example, we recently launched a multi-platform campaign for fans around Marvel’s Avengers: Age of Ultron. The Marvel Avengers Hero Up initiative on marvelkids.com introduced weekly videos and exclusive content supported by digital and social media activations across Marvel Studios, Marvel Animation, Disney XD, and licensee and retail channels. In addition, Marvel’s Super Heroes Assemble app allowed consumers to interact with Marvel’s Avengers: Age of Ultron signage throughout Wal-Mart stores to unlock character assets, behind-thescenes footage, cast interviews, and character pages.
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Saban Brands What new challenges are emerging as an effect of the way people are consuming entertainment? With the emergence of new viewing platforms, consumers now have infinite choices when it comes to entertainment. The digital age has also lowered the barrier of entry for brands, creating higher competition for consumer engagement. With this in mind, brands must be available across all platforms, including both content and retail channels, and are challenged with maintaining a clear and sustainable digital strategy to keep consumers engaged. With this shift, licensors are also challenged with uncertainty from licensees and retailers. Shows are now launching exclusively on streaming services, which are still unproven platforms to drive merchandise sales, so the licensing community has been understandably cautious as to how licensed product for these properties would perform at retail. One way to overcome this hesitation is to invest in properties that have existing brand equity. We are launching Popples as a Netflix original series for kids, which already has built-in brand awareness with parents who remember the original 1980s toy line and TV series. This gives retailers confidence that the brand will succeed, which in turn gives potential licensees the confidence to support it. Which areas of licensing are expanding and where are you seeing contraction? When looking at expanding and contracting categories, we find it very much depends on the specific property. For the Power Rangers franchise, since it is such an iconic, evergreen brand with great heritage, we are able to create a very robust licensing program. We still see toys as one of the leading areas of licensing, with apparel, back-to-school, digital, and roleplay as other key categories. As digital licensing expands in terms of mobile games and apps, we’re also seeing a shift in traditional gaming. For a category that once worked with an array of IPs, we’re now seeing a more narrowed scope of partnerships. Additionally, for smaller brands that might not have as broad of licensing programs, certain secondary and tertiary categories are receiving less support, including products like home furnishings, gifts, and greeting cards.
Summer 2015
State of the Industry
Peter Yoder
Willie Wilkov
VP, Consumer Products North America,
Chief Marketing Officer,
Cartoon Network What are the keys to licensing properties internationally and creating truly global brands? For a brand to be a truly successful global brand in the kid’s space, it needs to have a distinct point of difference that is clear and identifiable to make it stand out and resonate with fans, and also be broad and relatable enough to translate across different languages and cultures. And from a licensing perspective, you have to ensure that you have the right global partners on board in key categories around which to anchor your consumer products program. At Cartoon Network, which itself is a leading global brand in the kids’ entertainment industry, we have two of the world’s most prolific kids’ brands in The Powerpuff Girls and Ben 10, with upcoming global launches and core partners in place that we’re excited to discuss with our licensing and retail partners during Licensing Expo. How are you creating licensing programs that engage consumers on multiple platforms? As our fans’ consumption habits change, so too does the approach we take toward licensing. Kids are the leaders of consuming content differently and we’re seeing a lot of success across Cartoon Network with how we’re engaging with them across our linear, digital, and mobile platforms, which is contributing to strong ratings growth across all key metrics. As the way we launch content expands from a network perspective with series like our first original digital series, Mighty Magiswords, our licensing approach will also evolve to develop customized strategies that will create new opportunities to engage our fans across different multiple platforms. We’re also always looking for new ways to expose fans to our brands through partnerships like the one we recently launched with Sony’s LittleBigPlanet 3, which introduced an Adventure Time level kit and costume pack for fans of that highly successful interactive gaming franchise.
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Tomy International
What trends are you seeing in the way brand and property owners are approaching licensing program development? We’re finding that brand and property owners are increasingly looking for partners with global reach that can consistently manage their brand around the world with a single voice. In addition, we have also found that licensors are more willing than ever to work with new partners, which is driving innovation. That being said, our ability to bring a fresh perspective to established properties, such as what we are doing with Sonic and Pokémon, is critical to growing and establishing brands and properties. In regard to properties themselves, we’ve noticed a return to tried-andtrue themes and play patterns with a modern spin to ensure relevance with today’s kids. For example, Disney Junior’s Miles from Tomorrowland connects the dots between kids’ love of outer space and space vehicles with the trend of STEM education. The other example in our portfolio for 2015 is Disney•Pixar’s The Good Dinosaur, which hits theaters Thanksgiving weekend. Everyone knows that kids love to play with dinosaurs and our line of interactive toys will help bring Disney•Pixar’s brilliant storytelling to life. How is the manner in which kids are consuming entertainment affecting the development of licensing programs? Kids are consuming content across more screens, vehicles, and devices than ever before. As a result, quality content has never been more important. If it’s good, it will break through the clutter. I think we can all agree that content is more accessible and portable than ever before, and as a result positive word of mouth can spread more easily and faster than ever before. The distribution model is changing and there’s never been a better time to innovate. As more content is launched exclusively via apps, games, Netflix, YouTube, and Hulu, we need to better understand how kids are interacting with this content, how it impacts our line development, and how it translates into toy sales. This non-linear world is not restricted to 11- or 22minute episodes like it used to be, and advertisers aren’t as pigeon-holed into selecting dayparts. The key from our viewpoint is to experiment as much as possible, measure results on an on-going basis, and be nimble enough to make the necessary changes required for a successful campaign.
Summer 2015
Jim Kipling
Greg Economos
Of Counsel,
SVP, Global Consumer Products,
Dinsmore & Shohl LLP What is the most important part of a licensing agreement? Experienced people in our industry should know immediately: The most important part of a license agreement is not part of the agreement at all; it’s the licensee’s business plan for the property. The obviously important aspects of any licensing deal are identification of the property, definition of licensed products, duration and territory, and financial terms of the deal. However, if those are the only questions that you have been asked in advance by your negotiator, the deal that results is likely to disappoint you. For example, if the property is a motion picture and your company’s products or promotional materials must use likenesses of the human characters in order to achieve success, has your negotiator asked you that question? If your promotional materials require A/V clips from the movie, including talent likenesses, voices, or other such elements, is the negotiator aware? If your product is Internet-, social media-, or appbased, will success depend upon use of the title of the motion picture in a domain name, social media site, or app title? If your business plan defines certain rights as essential, your negotiator must eliminate any uncertainty concerning the availability of those rights. For example, if use of one particular actor is critical, it may be possible to confirm that person’s rights while leaving non-essential actor rights uncertain. Even if all of the essential rights are definitely available, their use can cause your costs to escalate rapidly. Licensor forms are usually subject to exceptions, exclusions, and other loopholes that can pass off to you any incremental talent costs. Your negotiator must be aware of the nuances of the industry in which the licensor operates as well as every detail of the licensee’s requirements in creating and marketing its products. Only with this information will the negotiator be able to properly serve the interests of the licensee.
Summer 2015
Sony Pictures Entertainment How are you using social media platforms to enhance your level of interaction with consumers and increase brand recognition? Social media has allowed consumers the ability to engage with their favorite property, brand, or character in ways no one would ever imagine. On the same principle, it has enabled brands to learn more about their consumers by understanding how they think, feel, and like—ultimately creating transparency and an enhanced sense of immediacy in the marketplace. For Sony, social media offers a great opportunity to drive discovery for our properties and also create engagement. A great example is the very successful release of the Pixels teaser trailer on March 19 of this year, which drove 71 million views in its first week, becoming a global Twitter trend, and the No. 4 most shared movie trailer ever on Facebook—all thanks to a combination of social media efforts across platforms, partners, talent, and fans. How is the changing retail landscape affecting the ways in which you manage your retail partnerships? Retail is a critical tool in the entertainment licensing business toolbox. Nowadays, it can dictate partnerships, as oftentimes licensees are demanding retail support before they even commit to a particular property. On the other hand, retail also serves as a tool to create awareness and impressions supporting the release of a film and TV property. This is an evolving role, especially with traditional stores and e-commerce lines blurring into an omni-channel platform, where consumers can access product and information 24 hours a day, every day, wherever they are. What trends are you seeing in the way brand and property owners are approaching licensing program development? On the product side, we are seeing a focus toward digital, whether it is through apps, brand integrations, or hybrid models in which the experience offers both physical and interactive components. On the planning side, we are seeing property owners, licensees, and retailers starting conversations earlier than ever as a way to get ahead of the competitive landscape, and focus efforts toward securing an optimal retail footprint and marketing assets.
The Licensing Book • 37
State of the Industry
Allison Ames
Howard Beige
President,
EVP,
Beanstalk
Rubie’s Costume Co.
How is the changing retail landscape affecting the ways in which you manage your retail partnerships? The changing retail landscape is impacting the way we evaluate and manage retail partnerships in several ways. Firstly, consumers are shopping differently within the brickand-mortar landscape and across tiers. The rise of off-price and club channels and the simultaneous shrinking of the full-price retail market has had an impact on licensees’ distribution strategies. We have seen more and more licensees asking brand owners to consider a certain percentage of their business to off-price channels, which are now outperforming growth in the broader apparel sector by 4 or 5 percentage points (according to Moody’s). Similarly, department stores are altering their pricing to compete more effectively against the off-price retailers. Secondly, digital technology continues to transform the retail industry. Consumers are able to use technology to compare prices at traditional retailers with the prices offered by an array of ecommerce sites; and, with e-commerce sales continuing to rise, retailers are placed in a race to the bottom. As a result, retailers must make adjustments to their merchandise offerings and are looking at brand and product exclusivity more and more. And we are looking at this too, by identifying and offering retailers avenues for differentiation through direct-to-retail and retail exclusive brand opportunities. On a related note, the rise of e-commerce has also allowed smaller manufacturers to enter the market and build scale. Smaller manufacturers have become more important and empowered by direct-to-consumer channels because they are more agile and are able to meet consumption trends and requirements. Finally, retailers are seeking to find innovative co-partnerships through new and complementary product offerings for shoppers across multiple tiers of distribution. For example, Brooks Brothers and Top Shop have launched capsule collections that are featured at Nordstrom.
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Which areas of licensing are expanding and where are you seeing contraction? Over the past few years we have seen a tremendous expansion of the boys’ and girls’ superhero and science-fiction genre. We see the bigger properties becoming even more prominent and more important. Unfortunately for the smaller properties, it has become more challenging to get retail placement on these because the retailers only have a certain amount of shelf space. How is the changing retail landscape affecting the ways in which you manage your retail partnerships? Retail has gotten much more competitive in the past 10 years with the significant growth of the Internet channel and the ease with which a consumer is able to shop and compare prices. As a manufacturer, we have worked very hard to address this in the interest of growing our business in all of our channels of distribution. We put together many programs that allow our retailers to have exclusive products that they can call their own. These products help to distinguish them in the marketplace. We pride ourselves on working very closely with our important retailer relationships. With properties being introduced in so many new ways, are licensors and retailers ready to take new risks? There are more properties and more content in the licensing industry than ever before. However, most mass retailers are featuring these important licenses for a much shorter on-shelf window of typically only two to three weeks before they move on to the next property or event. For the most part, we are seeing the mass retailers being a bit more conservative and supporting the major licensors’ key initiatives, which they consider “sure winners.” It is the specialty and independent retailers that are supporting the slightly more risky licenses and events, in an effort to offer something unique in the marketplace.
Summer 2015
Inside Retail
Three Retail Shifts Reshaping Licensing Strategy by Carol Spieckerman, president, newmarketbuilders ot too long ago, retailers were racking their brains over how to respond to the rapid changes in shopper behavior. Now, after a period of cautious experimentation, many retailers are gaining serious traction with a number of initiatives, including new format launches, the expansion of shipping and delivery options, and mobile innovation. This shift changes the game for those whose fortunes are tied to retail in some not-so-obvious ways. How licensors, licensees, and agencies fare as the sands continue to shift will depend on how well they adapt and capitalize on disruptions such as these:
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1. The Category Conundrum
Every day, there are announcements about licensors inking deals with category-expert licensees, or forging direct-to-retail deals based on retailers’ traditional areas of focus. Although category limitations, expansion, and control have traditionally defined licensing partnerships, categories such as consumer electronics, toys, accessories, and technology are starting to blur together, and category-muddying movements, such as smart appliances, the Internet of Things (IoT), 3-D printing, and wearable technology, are taking hold. At the same time, the number of products and categories that retailers such as Wal-Mart, Staples, Tesco, and Best Buy offer in their online marketplaces through third-party sellers is exploding. In this environment, category-centric parameters are on a slippery slope, and licensees and licensors will fare best
40 • The Licensing Book
by discarding defaults and engaging retailers directly about how they are approaching emerging movements and non-core category expansion. Doing so will make aligning licensee choices and engagement parameters far more straightforward and retail-relevant, particularly as licensees acclimate to retailers’ new perspectives.
2. Passive Placement
Is the phrase “available online and in-store” music to your ears? In some cases, such enthusiasm may be out of tune with your best interests. Most of the licensees and licensors that I work with are thrilled when a retailer picks up their brands and products both in-store and online, but this passive mindset ignores the possibility that some retailers have built strength online, while others are still far more successful and capable at store-level execution. The same holds true for licensees that are well versed in executing e-commerce orders or, conversely, may be completely new to the game. Depending on the retailer or the licensee, it may or may not make sense for licensors to grant exclusive rights that lock up every physical and digital expression of a brand. However, those that take charge, choose partners wisely, and fine-tune agreements accordingly will get ahead. In select partnerships, optimizing channel choices may actually take precedence over setting category parameters.
3. Bricks versus Clicks
I’m often asked which of the emerging shipping, continued on page 120
Summer 2015
TIA Perspectives
New Research from the Toy Industry Association Uncovers Licensing Trends in Australia & Mexico
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by Kristin Morency Goldman, Toy Industry Association
“
ontent is the new Holy Grail,” proclaimed Frédérique Tutt, NPD Global Toy Industry Analyst, at a professional conference hosted by the Toy Industry Association (TIA) this spring. According to Tutt, content-driven properties—including TV cartoons, webisodes, digital games, and more—represented 39 percent of global toy sales last year, growing 9 percent over the previous year. Upcoming TIA-commissioned studies from Altios International and Kidz Global will explore toy and licensing trends and market entry opportunities (both consumer and business operational research) in Australia and Mexico. Kidz Global will also conduct a consumer research study, including brand trends, in the U.S. Not surprisingly, content-driven licenses are one of the mega trends identified by industry analysts that are expected to drive future growth in the global toy and youth-entertainment product industry, with ample opportunities for ambitious licensors and licensees to introduce new properties and build franchises in foreign toy markets.
Not surprisingly, content-driven licenses are one of the mega trends identified by industry analysts that are expected to drive future growth in the global toy and youth-entertainment product industry, with ample opportunities for ambitious licensors and licensees to introduce new properties and build franchises in foreign toy markets.“
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Of course, being savvy about consumer brand preferences, children’s play patterns, and family lifestyles across different regions is a must when it comes to attempting to penetrate a competitive new market. Building on its portfolio of research to help toy companies explore new export opportunities overseas, TIA recently unveiled global market research reports on Australia and Mexico. Conducted in cooperation with research consultancies Kidz Global and Altios International, these reports uncover consumer demographics and tastes, the brands and toys preferred by local children, the type of media they consume, and an analysis of economic indicators for entering each market. “In looking at the reports, we see that Australia’s licensing market for entertainment brands is highly dynamic, with licensed products representing 30 percent of the $1.35 billion (USD) toy market,” says Anne McConnell, TIA’s senior director of market research and data strategy. “At least 70 percent of all children have indicated that they are familiar with about 45 brands, and depending on the age group, each child is familiar with at least 27 of the top 30 brands in the country. This is good news for licensors looking to build their franchises across multiple toy categories in Australia—which is among the top markets in the world for toy spending per child.” According to the Kidz Global findings, the most popular brands among Australian kids are Peppa Pig, Disney Frozen, Thomas & Friends, Lego, Minecraft, and Giggle & Hoot, an Australian-based entertainment brand. Girls’ favorite brands include Peppa Pig, Monster High, and Disney; while boys prefer Thomas &
Summer 2015
Friends, Lego, and Minecraft. Looking ahead, the report indicates that Bananas in Pyjamas, Sony PlayStation, The Simpsons, and iCarly have “strong potential future sales among buying households,” due to “very positive demand gaps” (defined by Kidz Global as the difference in proportion between those households owning a product with the brand on it and those households intending to acquire a product with the brand on it). In Mexico, licensed toys capture roughly 27 percent of the total toy market in the country, according to the Altios International report. Mexican children, who comprise 29 percent of the total population, have a significant influence on toy purchasing decisions, and TV remains the No. 1 medium for influencing a child’s decision to choose a toy. “As a result, competition for licensed products in Mexico is growing, and it can be difficult to attract children to products that are not licensed or derived from fashion brands,” notes McConnell, citing findings from the report. Mexican children’s tastes in entertainment brands are “surprisingly anchored in so few properties,” with
Disney, Mattel, and Microsoft Xbox sharing the top positions in unaided awareness of entertainment brands, according to Kidz Global. In general, Peppa Pig, Lego, Avengers, Sam & Cat, Disney Frozen, and Pocoyo are most widely appreciated by Mexican kids. Toy Story, Cars, Disney Princess, and Peppa Pig are the most popular brands among kids up to the age of 6, while older kids ages 7 to 14 are drawn to Microsoft Xbox, Lego, and Barbie. Action figures and dressup/role-play categories feature the greatest percentage of licensed toy sales in the country, at 71 percent and 54 percent in each category, respectively. Companies that are interested in learning more about how to penetrate one or both of these lucrative toy markets are encouraged to consult TIA’s full reports, available in the Knowledge Network section of www.toyassociation.org. Similar reports on China, Brazil, and the U.S. are also available. ••••
Any questions about TIA’s research services may be directed to Anne McConnell at amcconnell@toyassociation.org or (646) 520-4870.
Property Profile
SWEET!
is berry
Iconix Brands Celebrates 35 Years of Strawberry Shortcake
“Strawberry Shortcake is a strong feminine brand that promotes girl power, as each of the main characters—including Strawberry Shortcake—has her own business. This entrepreneurial aspect combines with a fantasy element, resulting in a winning combo. Moms who grew up with Strawberry can now share the joy of the property with their daughters in so many different ways—on TV, through our amazing apps, and of course, with collectible toys. We can’t wait to share the love of Strawberry with a new generation.” –Leigh Anne Brodsky, managing director, Iconix Entertainment
berry FUN facts!
The fourth season of Strawberry Shortcake’s Berry Bitty Adventures will premiere on Discovery Family on June 20 at 12:30 p.m. EST in the U.S. New characters for the season include Sweet and Sour Grapes, Apple Dumplin, and Teatime Turtle. Strawberry boasts a branded room in the Apple app store, which features apps from Budge Studios and Cupcake Digital. Thirty-five million Strawberry Shortcake apps have been downloaded to date, and eight new apps will be released throughout this year, available on iOS and Android devices. Strawberry Shortcake is a top performer in the young girls’ category on Netflix, with the first three seasons of Strawberry Shortcake’s Berry Bitty Adventures, one season of the 2003 series Strawberry Shortcake, and 2006’s Strawberry Shortcake: Sweet Dreams currently available for streaming. More than 16 million DVDs from home-entertainment partner Fox Home Entertainment have been sold to date. Strawberry Shortcake has a strong international business, with revenue outside of the U.S. representing approximately 50 percent of total sales. Last November, Strawberry Shortcake’s Berry Bitty Adventures launched on Discovery Kids, which is the No. 1 cable TV channel in Brazil. Brazil is the top international market, where the brand is highly recognized as a locally based brand, marketed as Moranguinho. Other strong international markets include France, Mexico, Australia, and Turkey, where Strawberry airs four times per day on Minika, the countrywide kids’ channel.
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TOYS
Cherry Jam, Strawberry Shortcake, and Blueberry Muffin Surprise Party dolls
DVDs
Fox Home Entertainment continues to expand its collection of Strawberry Shortcake DVDs this year with Strawberry Shortcake: Berry Tales. Strawberry and her pals are ready to take to the stage and put on a show in these berry special episodes about the importance of kindness and generosity. Strawberry Shortcake: Berry Tales arrives on Digital HD August 4 and on DVD and Digital August 11.
The Bridge Direct will continue its line of Strawberry Shortcake core dolls and play sets this fall, and will add new, celebration-themed toys to celebrate Strawberry Shortcake’s 35th birthday. The line will include surprise party-themed dolls and accessory packs, Strawberry Shortcake’s scooter, and a house play set. The toys will be available at Toys “R” Us and Rite Aid brick-and-mortar retailers, and online at toysrus.com and amazon.com. The line will also feature a classic-themed doll targeted toward millennial moms who grew up with the brand, which will be available at Target.
U.S. publishing partner Penguin continues to roll out a variety of engaging and playful titles in its Strawberry Shortcake line. Penguin will continue Strawberry’s birthday celebration this year with the hardcover book Happy Birthday, Strawberry Shortcake! This original jacketed hardcover is all about celebrating Strawberry’s big day. Kids can read along as Strawberry’s friends plan a berry special surprise birthday party for their berry best friend.
Earlier this year, new partner Marmol & Son launched two new Strawberry Shortcake designer fragrances for girls. Strawberry Shortcake Classic is a fruity fragrance featuring notes of caramelized berry, apple, plum, and sweet citrus. These succulent scents are layered with vanilla creme and amberwood. Berry Fabulous is a fruity-floral scent fit for a princess, with fresh ripened strawberries and strawberry leaves wrapped with floral notes, including white lotus and deep red rose. This fragrance is rounded out with lily pads, pink musk, and driftwood for a fresh, long-lasting scent.
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CHARACTER & ENTERTAINMENT Saban Brands Grows Core and New Brands
Saban Brands, which recently formed two new units within the company—Saban Brands Lifestyle Group (SBLG) and Saban Brands Entertainment Group (SBEG)—looks to develop its existing portfolio of brands, as well as add on new properties and acquisitions. SBLG, established to drive expansion within the company’s fashion and lifestyle properties, currently includes Paul Frank, Macbeth, Mambo, and Piping Hot. SBEG, which was formed to oversee the company’s growing entertainment brands, works to develop Power Rangers, Popples, Cirque de Soleil’s Luna Petunia, Julius Jr., Emojiville, and other properties. For Power Rangers, the newest series, Power Rangers Dino Charge, currently airs on Nickelodeon in the U.S., and is set to roll out globally this year. It is supported by a dinosaur-themed product line from global master toy licensee Bandai America Inc. The line’s highlights include the Deluxe Morpher, the Dino Charger 3-Pack, the Deluxe Megazord, and a new collectible line of figures. On the digital front, Power Rangers launched a new kid-friendly website, which features action-packed online games, downloadable activities, character profiles, sneak-peek episode clips, and more. Power Rangers: Unite, a free-to-play mobile card game, is available on iTunes and is coming soon to Google Play. Popples, a high-energy comedy series based on the Popples characters from the toy line and TV series from the 1980s, is set to launch on Netflix as an original series for kids this fall. Tied to the new launch, leading global master toy licensee Spin Master will release a full range of kids’ toys, including small dolls, collectible figures, play sets, and plush to hit the U.S. market in December, followed by a global roll out across multiple channels next year. Saban Brands and Cirque du Soleil Média announced Luna Petunia as the title for its upcoming original preschool property, inspired by the fantastical worlds of the Cirque du Soleil brand. The series will chronicle the adventures of a little girl named Luna Petunia who lives in the world and Power Rangers Dino Charge plays in a dreamland. Luna Petunia will first come to life as a new series next year, followed by a full consumer products line and interactive and digital content. In partnership with Jakks Pacific, Saban Brands will soon launch the multi-platform property, Emojiville. The kids’ series will be supported by a full consumer products and toy line from Jakks Pacific, along with mobile and online digital extensions, and digital apps and games. New episodes from season two of Julius Jr., Saban’s animated preschool series inspired by the Paul Frank brand, are currently airing on Nick Jr., while the show continues to air in France (TF1), Germany (Disney), Italy (Disney Jr.), Latin America (Discovery Kids), and other key markets worldwide. Consumer product licensees include Fisher-Price, Random House Children’s Books, and more. Saban Brands has also partnered with Univision and Simon Cowell’s SYCO Entertainment to launch the music-based reality entertainment competition, La Banda, set to premiere on Univision this September. Earlier this year, the show launched its search for contestants in the U.S. and Latin America to create the ultimate Latino boy band. Ricky Martin, the show’s executive producer, is the show’s first judge to be revealed thus far. As Saban Brands leads the consumer products business for the show, licensing partners for La Banda include Jerry Leigh for apparel and accessories and Popples Just Toys for collectible photo cards, trading cards, posters, and event memorabilia.
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Spotlight On
Keeps Dreaming Big New SVOD Series, Feature Films Pave the Way for Expanded Licensing Opportunies reamWorks Animation continues to dream big with an upcoming slate that includes new properties and bold franchise extensions. The creator of brands such as Shrek, Kung Fu Panda, and How to Train Your Dragon, DreamWorks has enjoyed great financial success and visibility across demographics. Keeping that hot streak alive might seem like a dinosaur-sized challenge, but the studio has real drive to make it happen, with a new franchise that can be summed up in one word: Dinotrux. An action-packed, streaming video-on-demand (SVOD) series, Dinotrux premieres on Netflix this summer. Set in a prehistoric world full of creatures that are half-dinosaur, half-construction vehicle, Dinotrux fol-
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Dinotrux
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lows the larger-than-life adventures of Ty, a massive Tyrannosaurus Trux, as well as his tiny friend Revvit, a razor-sharp Reptool. Both the Dinotrux and the Reptools must unite to defend their community against the D-Structs, enormous Dinotrux who destroy everything in their path. The ambitious new series will be accompanied by licensing that will gradually roll out across categories, including toys, apparel, and housewares. Select Dinotrux merchandising programs will start to appear on retail shelves this fall and will expand across all categories next spring. The Dinotrux licensing program includes Mattel as the master toy partner; AME, FabNY, and Freeze for apparel; Franco Manufacturing, Idea Nuova, Northwest, and Zak Designs for home goods and housewares; and Wonder Forge, Cardinal, Creata, and Dynacraft for toys and games. DreamWorks Animation’s two films in its How to Train Your Dragon franchise have grossed more than $1 billion worldwide, and now the studio will debut an original spin-off series, Dragons: Race to the Edge. Based on the storyline and characters from How to Train Your Dragon and How to Train Your Dragon 2, it features Hiccup and Toothless leading the Dragon Riders beyond the borders of Berk to discover the mysterious Dragon Eye, which is filled with ancient secrets that lead them to new lands full of undiscovered dragons. But the heroes are pursued by marauding dragon hunters, who want the power of the Dragon Eye for themselves. With scores of dragons ready to make their debut on June 26, Dragons: Race to the Edge looks to make a
Summer 2015
Dragons: Race to the Edge
major splash on Netflix, which is rapidly growing as a destination for children’s content. Licensees include Spin Master, the master toy partner for the entire DreamWorks Dragons franchise. The sequel to one of DreamWorks Animation’s most successful franchises, Kung Fu Panda 3 is the latest comedy adventure featuring Po, a giant panda and martial arts fan. When Po’s long-lost panda father suddenly reappears, they travel to a secret panda paradise populated by new panda characters. But a new threat emerges in the form of Kai, a supernatural villain who is sweeping across China, defeating all the kung fu masters. In order to defeat Kai, Po must learn to train a village full of fun-loving, but clumsy pandas, turning them into a band of Kung Fu Pandas. Arriving in theaters on January 29, Kung Fu Panda 3 welcomes cast members Bryan Cranston and Rebel Wilson to the series. DreamWorks Animation’s major holiday release, Trolls, arrives in theaters on November 4. Based on the classic troll dolls, the CGI-animated musical comedy film’s cast includes Anna Kendrick. Hasbro has signed on to be master toy partner. The studio is also showing some love to two timeless franchises under its DreamWorks Classics umbrella: Lassie and Felix the Cat. A globally recognized hero and Hollywood icon, Lassie inspires feel-
Summer 2015
ings of comfort, warmth, and familiarity, and elicits smiles wherever she goes. Lassie has been winning hearts and saving the day for 75 years, and now DreamWorks Classics will connect her with a new generation of dog owners and fans through a refreshed style and an invigorated spirit. The first collection of pet accessories and toys, from Lassie Dog Co., is now available for a limited time at PetSmart. The range includes dog apparel, collars, leashes, and toys celebrating canine heroes of all shapes and sizes. Having acquired the animated icon last year, DreamWorks plans to build Felix the Cat into a desired fashion brand for teens and adults worldwide, and to license the character’s likeness across multiple categories. Since his film debut in 1919, Felix the Cat has starred in more than 100 short films, three cartoon series, his own comics, and a feature-length movie. He was also the firstever balloon to appear in the Macy’s Thanksgiving Day Parade. DreamWorks seeks to position Felix across the music, art, fashion, •••• and design categories.
Felix the Cat
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A Look Inside
The Sky’s the Limit for
Video Game Giant Continues to Grow Its Portfolio Across All Categories hat do you do when some of the most popular video game franchises of all time are on your roster? You grow them even bigger through licensing partnerships. Since 2012, Activision’s Licensing & Partnerships business, which represents the licensing initiatives for Activision Publishing Inc., has been doing exactly that for its many hit properties. Going into Licensing Expo 2015 this June, the video game company will have an enviable number of tent-pole properties, including Skylanders, the No. 1 kids’ video game franchise for three consecutive years; Call of Duty, the No. 1 video game franchise in the U.S.; Destiny, which ranked among the biggest video game franchise launches in history; and the newest installment to the record-setting Guitar Hero series, Guitar Hero Live. “Activision Publishing Inc.’s Licensing & Partnerships has exponentially grown its global reach through a multi-pronged strategic approach for our massive franchises,” says Ashley Maidy, head of global licensing and partnerships, Activision. To date, the company Maidy, head of global partnerships, Activision. has secured a comprehensive kids’ licensing
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Activision Publishing Inc.’s Licensing & Partnerships has exponentially grown its global reach through a multi-pronged strategic approach for our massive franchises.”
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—Ashley licensing and
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McDonald’s Happy Meal Skylanders Trap Team Food Fight
program with a global reach for Skylanders, as well as a lifestyle merchandising program for Call of Duty. Activision teamed with Bungie last year on a program for Destiny, which was also supported by industryleading partners in key categories. Looking ahead to the rest of the year, Guitar Hero Live—which, for the first time in the Guitar Hero series, lets players simulate being up on stage as the star of the show—will be at the center of a global program focusing on lifestyle and gaming accessories. In addition to its Guitar Hero initiatives, Activision will also expand its Skylanders, Call of Duty, and Destiny programs with new and expanded partnerships.
Skylanders Celebrates Three Years with McDonald’s, Is Ready to Party
Since its launch in 2011, Skylanders has generated more than $3 billion in retail sales worldwide with more than 240 million toys sold, and is represented in key licensing categories, including fast food and décor.
Summer 2015
Call of Duty Black Ops 3 Mouse Pad, from Razer
For the third year in a row, Activision will continue its partnership with McDonald’s to include Skylanders toys in Happy Meals. Skylanders also has an expanded presence in Party City, as the retailer now features a 3foot Skylanders section in all of its stores nationwide, where parents can come to plan their Skylandersthemed parties. Fathead will introduce life-size wall decals featuring fan-favorite characters from the game, such as Eruptor, Spyro, Kaos, and Stealth Elf, while NKOK will have two fully functional R/C cars featuring working headlights at retail.
Licensees Heed the Call (of Duty)
The popularity of Activision’s Call of Duty series continues to drive sales in licensing across apparel and accessories, headsets, publishing, and construction sets. Last year, Call of Duty: Advanced Warfare was the top-selling console game in the U.S., based on physical game unit sell-through. Overall, Call of Duty has generated more than $11 billion in retail sales since the property’s inception in 2003. For millions of Call of Duty fans worldwide, Activision will release the largest licensing program for the franchise to date—featuring twice as many partners as previous editions—in support of the new game, Call of Duty: Black Ops III. New and returning partners include Mega Brands for collectible construction sets, BioWorld for apparel and accessories, Fathead for wall decals, and Surreal for barware, beach towels, and throws. In addition, Power A will provide gamers
Summer 2015
with themed accessories and gifts, KontrolFreek will produce controller accessories, and Razer will deliver mouse pads. Brady-Games will release a comprehensive strategy guidebook with intricate details for Call of Duty: Black Ops III players.
It’s Not Just Licensing. It’s Destiny.
To date, Activision’s licensing strategy for Destiny has been focused on partnering with industry leaders and category experts that reflect its rich in-game universe. Current merchandising partners include BioWorld and Game UK for apparel and accessories; Insight Editions for art books, journals, and poster books; BradyGames for strategy guides; World 3A Toys for high-end action figures; and Trends International for posters.
A Guitar Hero Program Will Rise
Launching this fall, Guitar Hero Live has big shoes to fill: The original Guitar Hero, released in 2005, became the fastest console franchise in video game history to reach more than $1 billion in sales in North America and Europe. For the latest installment, the Activision licensing team will kick off a global program that focuses on lifestyle and gaming accessories. Partners will include Power A for gaming accessories scheduled to arrive this holiday season. ••••
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CHARACTER & ENTERTAINMENT Laser Pegs Lights Up with Peg Heads
Peg Heads is the first intellectual property created by Laser Pegs Ventures LLC and iStory Animation Studios. Peg Heads are lightup action figures that use their own unique battery-operated power base, and are completely customizable, so kids can design and build their own one-of-a-kind figures. iStory Animation Studios has partnered with Emmy-winning animation writer Jeffrey Scott to develop Peg Heads into a network cartoon series for international distribution. The Peg Heads will be a comedy-action CG-animated series for kids ages 6 to 11 that will bring the Laser Pegs toy line to life with unique and endearing characters flying, driving, riding, or sailing in colorful, glowing Laser Pegs vehicles. Licensing for The Peg Heads will be available across categories including apparel, toys and games, video games, accessories, gifts and novelties, food and beverage, home décor, housewares, school supplies, publishing, footwear, music, and promotions.
CBS to Celebrate 50 Years of Star Trek in 2016
CBS Consumer Products manages worldwide licensing and merchandising for a diverse slate of TV brands and series from CBS, CBS Television Studios, and CBS Television Distribution, as well as from CBS’ extensive library of titles, Showtime, and CBS Films. This year will set the stage for the launch of new product lines for classic and popular series, such as Penny Dreadful and MacGyver, as well as new series including Scorpion and CSI: Cyber. The biggest news coming from CBS Consumer Products will be tied to the upcoming 50th anniversary of the Star Trek franchise, which will be celebrated next year. Plans are underway for a large-scale, cross-platform celebration kicking off with the theatrical release of the newest Star Trek film next summer.
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Wonder Forge Partners for Peanuts
The Peanuts—Surprise Slides Game, from Wonder Forge, brings Charlie Brown, Snoopy, and the gang to a board game designed for kids ages 6 and up. Each time kids play it’s a different board game, and as the spring, summer, fall, and winter slide tiles get mixed and flipped around during gameplay, kids will have the opportunity to zoom ahead, or they may get flung backward. As players race to make it to the finish, there’s no telling when the seasons will mix or flip, filling the game with surprises. Peanuts— Surprise Slides Game is designed for two to four players, and promotes color recognition, cooperative play, and turn-taking.
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A Look Inside
Licensing Outside the Box Hoho Entertainment utilizes non-traditional platforms to reach new audiences.
O
by Jackie Breyer ne of the keys to creating successful kids’ entertainment properties is the ability to think outside the box. Not only must the content be new and fresh, but the way the content reaches its audience must match the way today’s audience is consuming entertainment content. In today’s world, a TV series or feature film alone is not enough to drive a brand to a place where it not only finds favor with its viewership, but stays topof-mind long enough—and frequently enough—to be a driver at retail. Hoho Entertainment is a relatively young production and rights management company dedicated to developing intellectual properties that are designed to be seen and experienced on all media platforms. Helen Howells and Oliver Ellis, who collectively have more than 40 years of experience in the TV development, production, and rights management business, launched the company more than four years ago in order to get Cloudbabies, its CG-animated series aimed at preschoolers, into production. “We both have many years experience in the kids’ TV and licensing business, so setting up Hoho Rights to manage the commercial exploitation of Cloudbabies was a natural extension to the business,”
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says Howells. “Hoho Rights now operates as a wholly owned subsidiary of Hoho Entertainment, managing the commercial rights for our in-house produced shows, as well as several other animated series and brands that we represent on behalf of third-party producers and licensors.” Since its launch, Cloudbabies has experienced tremendous TV success in the UK, and Hoho is now working on its growth across the pond via less traditional methods of exposure. The series has already sold to more than 90 territories internationally, and Howells says that now is the right time to pursue expansion in North America. While the company is still interested in securing a broadcast partner for the series, Hoho has elected to use YouTube to create a fan base for Cloudbabies. “The U.S. is a particular focus for us right now,” she says, “especially given the recent developments with YouTube Kids, Netflix, Amazon, and other growing kids’ video-on-demand (VOD) services.” By launching Cloudbabies exclusively on YouTube in the U.S., Hoho took a calculated risk— and the results have been eye-opening. In March of this year, the U.S. accounted for only a fraction of the Cloudbabies global viewership on YouTube at just 3.3 percent. One month later—and having made its way into the hotly anticipated new YouTube Kids app—U.S. viewership jumped to an incredible 47 percent. Thanks to its approval by YouTube Kids, viewership continues to grow exponentially, as parents trust the Kids app to provide safe entertainment for their children. What’s more, families are always looking for content on-the-go, and YouTube Kids provides exactly that—free, trusted content that fami-
Summer 2015
lies can watch whenever and wherever they want. As popularity picks up for Cloudbabies, Hoho Rights is looking to expand its consumer products offerings into the U.S. as well. “I guess our plans are not unlike those of most other licensors wishing to gain further exposure of their brand beyond the screen, but we want to make sure that we do this in partnership with retailers and licensees that are as passionate about our brands as we are,” says Howells. “Cloudbabies is charming, whimsical, colorful, and, above all, has very high production values, and we want to make sure that this charm and quality is reflected in our licensed products.” In the UK, current licensees include the IVS Group for toys, Zippy for baby and toddler apparel, and GSC (Global Solutions for Clothing) for dressup, with more licensees coming on stream soon. In Europe, the series is also about to launch on KiKA, the No. 1 preschool channel in Germany, and expansion in the U.S. is not far behind. At Licensing Expo, Hoho Rights will actively look for retail partnerships and licensees for toys, publishing, apparel, and promotions. Hoho is also utilizing out-of-the-box thinking beyond the preschool audience with Mimi and Bibi, its new property geared toward girls ages 6 to 10. Mimi and Bibi are twin sisters who couldn’t be more different. Mimi is the quintessential good girl, all sweetness and light, on a mission to perfect the world in her own image. Bibi is the archetypal rebel without a cause. Hoho Entertainment has partnered with digital platform TotallyTween, which launched in the UK in March. TotallyTween is a safe, secure online environment where tweens go to discover, discuss, and create in an eclectic online world covering film, books, music, fashion, health, fitness, animals, cookery, craft, and social issues. Content on the platform is created for tweens by tweens; each episode of
Summer 2015
Mimi & Bibi will be the result of tween input and interaction from the TotallyTween audience. “Our main focus is developing and creating programs for kids that can been seen and experienced on all media platforms,” says Howells. “While traditional broadcast platforms are still key for us in terms of gaining exposure for our content, we are increasingly gaining a lot more visibility by way of VOD and other digital platforms. This, of course, has a natural impact on the type of content we are developing. With Mimi and Bibi, we are developing a series of 26 x 2-minute animated video blogs that we plan to launch via digital and mobile platforms as a means of seeding the brand with girls before hopefully moving to a long form series, which we have also developed.” Hoho is looking for licensing partners for Mimi & Bibi in the fashion, stationery, and back-to-school categories. Looking ahead to next year, Hoho Entertainment will continue on its path of grassroots, alternative methods of delivering content to its target audiences, reaching kids where they’re spending their free time. “We will continue to develop and implement 360-degree exploitation strategies for the programs and brands that we currently represent,” says Howells. “But we are also putting a particular emphasis this year and next on grassroots marketing campaigns and really ramping up our social media activities to further support and build consumer awareness off-screen.” ••••
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Spotlight On:
The Licensing Book chats with Amy Moynihan Heyward, president, Genius Brands International (GBI), about the company’s current ventures and future outlook. How has GBI grown and evolved since the 2013 merger with A2 Entertainment? We merged into GBI and took over the company, and since then we’ve doubled the portfolio of brands that we manage, some of which are owned by other people and several that are originally created by us. We went from having four brands that were part of A2 and GBI to now almost 10 brands that we’re actively mangaging and developing. In addition, we’ve hired a lot of people, and we’ve brought licensing in-house. We’ve also brought our distribution in-house; we had been using agencies before to sell our content, but now we’ve hired Andy Berman who brought all of that in-house and manages all of our distribution for us.
Llama Llama
What is the mission of GBI? Our mantra is “content and products with a purpose.” Every one of the brands in our portfolio is meant to not only entertain kids, but also to enrich kids. Baby Genius is all about encouraging a child’s natural growth; Thomas Edison’s Secret Lab (TESL) is all about science, and Secret Millionaires Club (SMC) is about inspiring entrepreneurism in kids and helping them understand a bit about business and financial literacy. That’s really how we differentiate ourselves within the marketplace. When we started A2 a few years ago, we felt that there was an opportunity to create a portfolio of brands that not only entertained, but also enriched. We really stayed focused on that and built out our portfolio with that mantra in mind. Kids spend a lot of time with screens from a young age. We provide content that first and foremost entertains them, but also stimulates the natural growth that they have, which translates to products as well. We try to create things that aren’t empty calories—and that’s good for parents, it’s good for kids, and it gives retailers something different. We’re also very retailer-focused, and
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as we create our content and products, we do so in close communication with retailers to hopefully provide them with something that they don’t already have. What are your priorities for Licensing Expo? We are relaunching Baby Genius—we’ve totally redesigned it and created new entertainment and music. We’ve been working with early childhood specialists to help guide it to make sure everything’s age-appropriate. At Licensing Expo, we’re looking to sign on new licensees for additional categories and also to expand internationally. We’re also relaunching SMC—we’ve created a whole new product line. Llama Llama is a new property that we just signed on with. It’s a line of books for toddlers that helps kids deal with everyday situations, such as anxiety when their parents leave for the day or meeting new people. We’re partnering with the author and Penguin Publishing to create new entertainment and a whole line of products. Licensing Expo will be the first time we talk about that property. TESL is a new property that we’re going to launch on a digital platform this summer and in September on PBS and our new Kid Genius channel on Comcast. We recently signed a master toy partner, so we want to expand our base of licensees and start to introduce it internationally. In addition, we are working on an original, music-inspired tween series. What is your vision looking ahead to next year and beyond? Our focus is content with a purpose, products with a purpose, building our portfolio, and working with retailers to be good partners and give them programs to help fill in that white space at retail. Also, we want to be good partners to our licensees to make sure that for all these brands that we’re creating and developing, that we’re doing so with the proper support behind them to make sure that they’re successful. ••••
Summer 2015
Baby Genius
GBI will re-launch the Baby Genius brand in September with bold new designs, new partnerships, new entertainment, new music, a new website, and a new retail program, making the brand even more accessible to parents and toddlers. Baby Genius is the No. 1 video-on-demand property on Comcast’s Baby Boost channel, and Comcast will launch GBI’s new Kid Genius channel in September with Baby Genius headlining the program lineup. For more than 10 years, Baby Genius’ catalogue of 500 songs, 125 music videos, and music-based toys feature classic nursery rhymes, learning songs, classical music, holiday favorites, and more.
Thomas Edison’s Secret Lab
Thomas Edison’s Secret Lab encourages and inspires kids through scientific and technological explorations, wacky and engaging topics, music videos, and more to show kids how much fun science can be. The animated series will premiere on Netflix in July, and will debut on PBS stations and on GBI’s new Kid Genius channel on Comcast in September. NCircle Entertainment will distribute Thomas Edison’s Secret Lab digitally and on DVD at major retail outlets nationwide and online. The company is developing a consumer products program, including toys, mobile apps, games, activity kits, apparel, publishing, and more.
Secret Millionaires Club
Secret Millionaires Club, created in partnership with and starring an animated Warren Buffett, features a group of kids who have adventures in business. As a result of the continued success of Warren Buffett’s annual Secret Millionaires Club Grow Your Own Business Challenge nationwide contest for kids and the brand’s program in more than 100,000 schools nationwide, GBI is re-launching Secret Millionaires Club this year with new products and retail partners, including a new line of books from Downtown Books based on the Secret Millionaires Club brand.
Summer 2015
Llama Llama
In partnership with Penguin Young Readers Group and author and illustrator Anna Dewdney, GBI will expand children’s book franchise Llama Llama with new animated entertainment and music, as well as a range of consumer products across a multitude of categories, including toys, games, apparel, accessories, electronics, music, bedding, and healthy snacks and meals. The products are anticipated to launch at retail in the U.S. next year. With 9.4 million units in print, Dewdney’s Llama Llama books have all been New York Times bestsellers, with several titles claiming the No. 1 spot.
From Frank
With the August launch of From Frank’s first book, Don’t Fart When You Snuggle, from Chronicle, nearly 100 gift and stationery items from partners including Enesco, Galison, Bare Tree Media, Quarto, and Calendar Club are available at major retailers in North America. Additionally, multiple state lotteries have launched From Frank Instant Win Scratch tickets from GTech. GBI will build off this success and turn its attention to new categories, such as apparel, accessories, home textiles, board games, party games, and novelties.
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CHARACTER & ENTERTAINMENT Hasbro Has Pony Power
Hasbro is committed to leveraging its brands, including Transformers, My Little Pony, Monopoly, Littlest Pet Shop, Nerf, Play-Doh, and more, to help create new play experiences for kids. At Licensing Expo, Hasbro will continue to tell brand stories across multiple mediums, including entertainment, digital, publishing, and branded experiences. Hasbro will also showcase a broad range of licensed consumer products, including fashion, home goods, sporting goods, toys and games, and more.
WBCP Offers a Look Inside the DC Comics Universe
With Batman v Superman: Dawn of Justice, from Warner Bros. Pictures, set for release next March, Warner Bros. Consumer Products (WBCP) is gearing up with a full lineup of global licensees. For DC Super Hero Girls, the new girl-targeted superhero universe from Warner Bros. Animation (WBA), WBCP, DC Entertainment (DCE), and Mattel; toys, apparel, books, digital content, and other products will begin to roll out next year. The new film series Fantastic Beasts and Where to Find Them, from Warner Bros. Entertainment and J.K. Rowling, will be fully supported by WBCP with a global licensing and merchandising program. DC Super Hero Girls
Moose Toys Announces 16 New Shopkins Licensees
Moose toys has secured 16 additional licensees for Shopkins, the miniature groceryand fashion-themed collectibles for the U.S. and Canadian markets—bringing the brand’s total licensee count to 25. The new deals were brokered by The Licensing Shop Inc., and the licensed products include The Bridge Direct for construction toys and activities, Bentex Group for fashion tops and T-shirts, Mighty Fine for specialty fashion tops and T-shirts, Intimo for sleep and loungewear, Global Design Concepts for bags, Ashko Group for footwear, Jay Franco for bedding and linens, Jakks Pacific for Halloween costumes by Disguise, Ashtel for oral care, Trends International for posters, Tech 4 Kids for novelty lighting, Cardinal Games for co-branded games, Mrs. Grossman for stickers, Radz for novelty toys and candy dispensers, Blue Orange Games for Spot It! co-branded games, and NTD Apparel for master apparel in Canada.
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A Look Inside
Q&A WITH GREG ECONOMOS
SENIOR VICE PRESIDENT, GLOBAL CONSUMER PRODUCTS, SONY PICTURES CONSUMER PRODUCTS
The Licensing Book spoke with Greg Economos about Sony’s popular Ghostbusters franchise, as well as what’s next for Sony Pictures Entertainment
Tell us about Sony’s recent successful licensing activations, and discuss how you will keep that level of success going with Ghostbusters. We are so excited about the new movie coming out next year. I’ve been at the studio for almost 16 years and we’ve been threatening and promising and kind of saying to everyone, “The movie’s coming, the movie’s coming.” Well, it’s finally coming. With all the press around it and all the new content, we’re really going to be able to have a great new launch to what we’re hoping is a reinvigoration for the brand and franchise that we’ve known and loved for 30 years. We, in the licensing group, really launched our program starting with the 25th anniversary of the 1984 film in 2008. We looked into our library of properties really looking at which movie has the most brand recognition. What have we not tapped? Ghostbusters was that title that we really felt had a lot of brand awareness. We did some research [and found] that the no-ghost logo is one of the most recognizable entertainment logos of all time—it’s in the top 10 of all film logos—so we focused on that. We got Mattel and Atari at the time to do a console-based game and we launched a huge merchandising program based on the classic movie. Even back then, there was a movie in ’84, there was
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a sequel, and there were three animated series based on Ghostbusters. The thing that people don’t understand is that this franchise has been out there, but lay dormant for more than 20 years. So, this new film is going to have a new level of consumer awareness that will, hopefully, launch a whole new franchise. How is the expansion of the digital realm affecting the way you build your licensing programs? Obviously in 1984, there was no digital, there was no imminent, there was no interactive. Today, the convergence of toys and games, digital, mobile, and that whole interactive space has really been launched by consumer demand. Years ago, when we talked about convergence, it was all about businesses trying to force that kind of convergence on the consumer. Now, it’s the consumer that forces it on businesses to develop additional content around those characters and themes. Even when we did Smurfs, the mobile app that we did was our most successful merchandising item in the whole program. Whereas five years ago, mobile and digital was probably 10 to 15 percent of our business, now it’s closer to 35 percent. So it has really increased, and we’ll definitely have new digital interactive applications for the next Ghostbusters movie, and we have a classic game out there that we’ve launched. Now, there’ll be one specific to the new film. Because there’s so much content you can create—in a movie, there’s 90 minutes of content, right?—in our merchandising program, especially in the digital and interactive space, we can create hours upon hours upon hours of content. For us, that increases the consumer engagement with the characters, which then has the halo effect to say, “Oh, I love playing the mobile app, now I’m going to buy a T-
Summer 2015
shirt, or buy the toy.” It’s another way for us to have a lot of increased content. How have you expanded your footprint of locationbased entertainment? You’ve probably seen what we’ve done in Dubai at Motiongate; there’s a big Ghostbusters attraction there. We have a couple of other deals that we have signed, but we can’t announce them yet. You’ll see in the next six months that we’re going to announce another five to seven location-based entertainment attractions based on Ghostbusters. There are other properties that we’re also including, but Ghostbusters is our main IP brand that we’re going out there and launching in that location-based entertainment world. It really is so burned into the brand, and it’s just fun. That’s what we try to do in all of our location-based entertainment attractions, whether it’s a dark ride or roller coaster, or whether it’s just costumed characters: We always want [consumers] to be really engaged with the content and the characters themselves. What are some innovative ways in which Sony approaches its retail programs? These activations get more and more challenging because there are so many theatrical titles, and even TV titles, that get released every year. We look at the demographics of the retailers themselves. For example, we did a big program with Hot Topic on Better Call Saul, which is one of our TV show initiatives. That’s perfect. We’ve got a program—we haven’t announced it yet—with Children’s Place for one of our family titles. Obviously on our big mass-market titles we’ll work with Wal-Mart, Target, and Toys “R” Us. We really try to do something, whether it’s a movie screening program or whether it’s that you’re allowed to get some sort of a gift with purchase to engage the consumer. Whether it’s the mom buying the apparel or whether it’s the kid buying the toy, we’re looking at things that will be exciting and add additional excitement to the movie-going process. We do almost all of these [initiatives] around the theatrical release window. We kind of trade off the exposure that we get when we launch the film for an additional merchandise buy from the retailers themselves. We did a retail program with Target, exclusively, for
Summer 2015
the movie Annie that was released in December. That was really working directly with Target, with their buyers, with their designers, and with the costume designer from the film, to create an inspired-by program of apparel and accessories. Some of it appears in the film, but it was more like a lifestyle program, getting frontof-store space where they merchandised it separately. That kind of stuff, for us, is really great and Target did a fantastic job on that. What are your key titles and plans for the second half of this year and heading into next year? Our big summer launch is on the movie Pixels, which I call a cross between Wreck It Ralph, Independence Day, and Ghostbusters. Aliens invade the Earth in the form of ’80s video game characters and the team of Adam Sandler, Kevin James, and Josh Gad has to save the world. So it’s really fun. We’re working closely with a specific retailer that we haven’t announced yet on a program that really focuses on the nostalgic factor of the ’80s video game characters. In addition, this year we have Hotel Transylvania 2 coming out, which is a sequel to our film from three years ago—all family animation and really cute. We’re working with a specific retailer on that also. A couple of weeks after that is a Goosebumps movie based on the books by R.L. Stine that were so popular in the ‘90s. So we’re working with our friends at Scholastic on launching that program. Next year, we obviously have Ghostbusters, and then we’re also releasing a movie based on Angry Birds. We don’t do the merchandising—Rovio does—but we produce, distribute, market, and promote the film. It’s a busy year at Sony. We also have our TV slate. We’re still working on shows such as Breaking Bad and Better Call Saul. Breaking Bad kind of broke the bank for us. We were so pleased with the success of the series, and then of course the merchandising program followed that with a whole lifestyle program for adults. ••••
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BOARD GAMES
Following on the heels of a successful Kickstarter campaign for Ghostbusters: The Board Game is the retail consumer edition, distributed by Cryptozoic Entertainment. Developed by a group of board game professionals, this is the first officially licensed Ghostbusters tabletop game in nearly 30 years. Arriving at retail this October, the game lets players choose to be one of the four Ghostbusters character figures. Each has unique traits and talents to assist the team.
MOBILE GAMES
Beeline Interactive Inc. is developing the Ghostbusters Puzzle Fighter game, a new matchthree puzzle battle game based on the franchise. Scheduled for release in June, the game, which is part puzzler, part card game, and part roleplaying game, lets players assemble the ultimate Ghostbusters team. Players can collect characters from the Ghostbusters universe, relive their favorite moments from the original movies, and revel in awesome ’80s nostalgia.
APPAREL LEGACY BOOK
The official franchise legacy book, Ghostbusters: The Ultimate Visual History, will look back at three decades of ghostbusting fun. Covering the production of the first two films in extensive detail, this deluxe book will include rare behindthe-scenes images and in-depth commentary from the cast and crew, including director Ivan Reitman and stars Dan Aykroyd, Ernie Hudson, and Sigourney Weaver. The book will also explore the entire Ghostbusters universe, including comics, toys, video games, and the animated TV shows The Real Ghostbusters and Extreme Ghostbusters. It also features removeable items and never-before-seen photographs and concept art from the Sony Pictures Entertainment archives.
Apparel has been a key staple in the Ghostbusters program with partners including Mad Engine, Freeze, Mighty Fine, and Signorelli developing evergreen styles on a yearround basis. The well-balanced line is comprised of basic T-shirts and fashion bodies, and has recently expanded to include jackets and jumpsuits. Brainstorm Gear has also signed on to create high-quality cycling jerseys. Internationally, Uniqlo created an exclusive line of men’s and women’s T-shirts in partnership with Sony. The program also included the launch of a new Steteco line, which has become part of Uniqlo’s permanent collection. Brainstorm Gear cycling jersey
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CHARACTER & ENTERTAINMENT Rovio’s Angry Birds Are Flying High, Heading to Theaters
It may have started out as a simple sketch, but 2.8 billion downloads and a raft of exciting high-profile partnerships later, Angry Birds is now a global gaming and entertainment franchise. Despite being just 5 years old, the simple yet addictive gaming phenomenon enjoys 90 percent global brand awareness, which sees it competing in the same space as entertainment companies with decades of heritage behind them. Continual reinvention across a number of platforms ensures the addictive game remains the most downloaded app of all time, and with 170 million active monthly users, Rovio’s audience remains engaged. It’s this commitment and consumer support that sees Rovio returning to Licensing Expo 2015 with the hugely anticipated Angry Birds movie under its wings. Set to hit the big screen next May, Angry Birds is being produced by Rovio Entertainment in association with Sony Pictures Entertainment, which is handling all film distribution and marketing. This will be the first full-length movie from the Angry Birds franchise, and is a significant landmark for the company. “The movie underpins our long-term commitment to Angry Birds,” explains Gaetano Mastropasqua, president of the Americas, Rovio Entertainment, “and will allow us to realize our ambitions of being an all-encompassing entertainment company, while keeping gaming at our heart, of course.” Rovio has retained full creative control of the movie, ensuring it remains true to what fans know and love about the brand. “The movie will take the Angry Birds into new places and across new generations,” Mastropasqua continued. “It’s an exciting opportunity to push boundaries and delight fans.” While the movie might be its latest venture, the Angry Birds brand already has an established track record of storytelling. “Every piece of animation, every product, and every game is made with fans in mind, so to be able to take these characters and adventures onto the big screen and offer such spectacular content is hugely exciting,” says Mastropasqua. The property already delights fans consistently through a range of Angry Birds, from Rovio and Sony Pictures Entertainment channels, such as the dedicated multi-platform broadcast channel ToonsTV (the animated series has 5 billion views worldwide) and innovative mash-up collaborations and spin-off games such as Angry Birds Star Wars, Angry Birds Transformers, and Angry Birds Stella. These propositions strengthen Rovio’s offering, allowing the company to drive awareness of its consumer products program, reinforce its licensing strategy, and highlight new opportunities. “We look to build our brands with longevity, develop a licensing strategy that prioritizes quality and innovation, and work with leading partners that reflect our vision, dynamism, and ambition,” explains Mastropasqua. “While our focus for 2016 will be to highlight opportunities for the Angry Birds movie, we’ll also be looking to capitalize on that excitement to build on our consumer products programs right across the franchise.” With less than a year to go until launch, the response to the movie is expected to increase game downloads, help merchandising sales, drive traffic to Rovio’s own entertainment channels, and have a dramatic impact on the business as a whole. “There’s no doubt the film will complete our transition to becoming a fully-fledged entertainment company. We’re ready to fly the nest,” says Mastropasqua. Angry Birds’ Red
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Hot Shots
Q&a with
Joan Grasso VICE PRESIDENT, LICENSING—NORTH AMERICA, ENTERTAINMENT ONE FAMILY
The Licensing Book spoke with Grasso about Entertainment One (eOne)’s Peppa Pig brand’s licensing program, UK success, and the upcoming U.S. expansion. Peppa Pig is a huge success in the UK. How do you plan to match that success in the U.S.? We are definitely taking key learnings from the UK and adapting them to the U.S. market. We continue to build our fan base and, at the same time, we are expanding our merchandising program to ensure it is meeting consumer demand. We are taking a page from the UK playbook and carefully managing the growth of the brand in the U.S. to ensure that we chart some of the same successes we have had with our UK program. Our priority is to build Peppa Pig to evergreen status here in the U.S., just as we have in the UK.
How will Peppa’s previous successes serve as a launch pad in the U.S.? It is certainly an advantage to have launched Peppa Pig in other territories first. That allows us to take key learnings and adapt them to the U.S. market, which has the potential to be larger than most others. We will utilize all of Peppa Pig’s previous successes in consumer products, retail strategy, and marketing programs to create a strong program here in the U.S. for years to come. In what ways will the U.S. licensing and merchandising program differ from the UK program? It is much earlier in the lifecycle of the program in the U.S., so our portfolio of licensees and our marketing initiatives are not yet quite as diverse as they are in some of the other territories. We are still in the building stages and expect it to take awhile longer to have full retail distribution in all channels as well as some of the longer-term marketing partnerships in place. But the program is steadily growing every day and over the next few years we anticipate the U.S. being at similar levels as we are in other territories. As Peppa Pig merchandise expands into the mass market, how will this affect the consumer products program? As we expand into the mass market, Peppa Pig
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products will be more readily available to our consumers. We are at the point now where the market is more than ready for a mass program. We are seeing much higher demand for all things Peppa—from toys to apparel to party goods, and much more. On what platforms are kids and families interacting with Peppa? Peppa is everywhere kids and their parents are accessing entertainment content. Our strongest platform continues to be our TV series, which airs multiple times per day, seven days a week, on Nick Jr. But Peppa is also available on all digital platforms, which continue to reach more and more families each day on iTunes, Android devices, YouTube, and more. In addition, social media has become an increasingly important part of our program because it enables us to receive immediate feedback from parents and caregivers and to communicate with them directly. Our live
All footwear images are part of eOne’s partnership with Esquire Footwear.
Summer 2015
events are also extremely important to the brand because they allow our fans to interact live with Peppa, helping us to expand the experience for them beyond the TV show. We are very excited to launch our firstever live show in the U.S., beginning in November. The new upcoming theatrical tour will help deepen our fans’ connection with the brand. What’s new for Peppa Pig’s licensing program for the holiday season and into next year? The licensing program continues to expand each season. This fall, we will have expanded placement in the mass market for the first time with new product lines from current licensees. We have also just signed quite a few new licensees— including several in the home and apparel categories— and most of these products will be launching for holiday and into next year. By 2016, we will have quite a well-rounded program. And, in even more exciting news, we will be expanding into Canada in the near future with several licensees already on board. What does the future hold for Peppa Pig? The future is very bright for Peppa Pig! We expect big things moving forward, as we continue to sign new licensees, grow our retail presence, secure new marketing partnerships, and expand our live and experiential events. Peppa has a rich history, and based on how the program is building in the U.S., we expect to see the same success stateside as we have in other territories. The sky’s the limit for Peppa Pig! ••••
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CHARACTER & ENTERTAINMENT Poised to Become the Envy of the Licensing Industry
Sara Nemerov, a 14-year veteran of the licensing and branding industry, has launched Envy, a boutique licensing, branding, and management company that helps musicians, actors, artists, celebrities, and brands of all types realize their power and potential. Envy builds, reimagines, and revitalizes brands through its team’s unique expertise in pursuing collaborations, direct-to-retail partnerships, sponsorships, and endorsements, which supplement its unparalleled skill on the traditional licensing and consumer product fronts. Envy also provides general management services for its celebrity and artist clients. “Our spectrum of services and focus is unique in the industry,” says Nemerov, the company’s founder. “We dive deep into the core, strengthen that core, and help guide growth from there.” Having launched with several high-profile clients last January in New York, Envy has continued its rapid growth and expects to expand operations to the west coast later this year. Sara Nemerov, founder, Envy Clients have spoken of Nemerov’s talent in helping them discover and crystalize the core messages of their brands and then find creative, yet authentic, ways to strengthen and convey that message through targeted commercial opportunities that extend the brands’ reach and longevity. With unparalleled relationships throughout the retail, licensing, and consumer products industries, she helps her clients speak to fans and consumers in new and exciting ways, thereby enhancing the fan experience and strengthening the bond between fan and artist. Prior to founding Envy, Nemerov served as the head of global consumer products and brand licensing at Warner Music Group (WMG). Her responsibilities included overseeing the company’s licensing strategies for hundreds of artists, and developing retail partnerships for WMG’s iconic labels and artists, such as Rhino Records, the Grateful Dead, and Frank Sinatra. She also built programs for contemporary recording artists such as Wiz Khalifa and Cody Simpson. Prior to WMG, Nemerov served as vice president of global licensing at The Trump Organization, overseeing the worldwide licensing business and directing an array of successful initiatives, including programs in apparel, accessories, toys, mobile games, and home furnishings. Prior to that, she held numerous roles at licensing agencies The Joester Loria Group and The Beanstalk Group, where she designed and launched programs for blue-chip brands, such as Harley Davidson, the Ford Motor Co., PepsiCo, Coca-Cola, Stride Rite, Jeep, Stanley Works, Jim Beam, Graco, Little Tikes, and The Andy Warhol Foundation.
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Spotlight On
The Licensing Book chats with Lisa Streff, executive vice president, global licensing, Epic Rights about the company’s current ventures and future outlook. How has Epic Rights grown in the past year since its launch? The big announcement in 2014 was our partnership with KISS. 2014 was about acquiring new artists, developing strategies, and getting all the creative assets together, and then starting to build out our licensing program in North America. Last year, we made the announcement of a lot of great artists and a lot of great partnerships, including John Lennon, CBGB, Aerosmith, Woodstock, Jefferson Airplane, Billy Idol, Chicago, The Doobie Brothers, and Velvet Revolver, just to name a few. What is your focus for Licensing Expo? We’re representing AC/DC in partnership with Perryscope, so that is going to be a big focus for us, and we will continue to focus on KISS. John Lennon is also going to be a major focus for us. For John Lennon, we have three programs: One is based on the name, likeness and signature of John Lennon, and we call that program Imagine. We also represent John Lennon’s artwork with a program called Bag One Arts, and we have two programs in Bag One Arts: I’m A Dreamer is for the adults and Real Love is for children. CBGB and Woodstock are two key brands and focuses for us. Those are our lifestyle brands, and we’ve developed a significant licensing program in partnership with Perryscope for Woodstock; we have apparel partners and accessories partners. CBGB is a new brand that we’re just starting, and soon we’re going to come out with a few announcements of some key apparel partners. What are the biggest opportunities and challenges you’ve encountered in music licensing? One of the opportunities that is bubbling up is the overwhelming popularity of Spotify and iTunes, and that is making Western music very relevent globally. We
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also have a very significant initiative this year to increase our global awareness of our artists, so this is a great opportunity for us. Not only are Spotify and iTunes contributing to this additional global buzz about Western music, but the artists themselves are touring more than they ever have before. One of the challenges we’ve encountered is that the artists sometimes hesitate when it comes to licensing and merchandising, and it takes some explanation for the artists to understand exactly why they need to do this to maximize their brand and the potential of their brand, and explaining to them specifically what Epic Rights does. What we really do here is concentrate on the fan and the consumer experience in totality. We not only represent them for licensing and merchandising, but we also oversee most of our artists’ VIP packaging (the packages that the fans can experience when they go to the concert); we manage their social media, their e-commerce, and their branded website; and we do the licensing and merchandising, so we’re in all the key areas that the fans are going to be involved in with their favorite artist. What are your goals for the second half of this year and looking ahead to next year? We will continue to focus on licensing and brand building on a global basis. We are going to represent our artists globally, and we will continue to look at new and unique partnerships and categories. There are some emerging categories for us, such as consumables—beverage, wine, beer, spirits, coffee, tea—those are all really important. Electronics are a big focus, and then we’re going to continue to sign licensees in different territories and work with select agents worldwide. We’re going to continue to bring on new artists and continue to grow our roster, and again, focusing on those key areas—VIP ticketing, e-commerce, etc. ••••
Summer 2015
KISS
Following a milestone year in 2014 for KISS, which included the celebration of the band’s 40th anniversary, induction into the Rock ’n Roll Hall of Fame; the launch of a new worldwide concert tour, and a performance during the Macy’s Thanksgiving Day Parade, Epic Rights continues to build the KISS brand worldwide, creating a tailored and strategic approach that targets multigenerational consumers with new product lines across all categories, including fashion, apparel, accessories, and fan merchandise. Epic Rights has approximately 70 licensees globally developing merchandise for the KISS brand. The line will expand into new trending categories this year, including consumables, with an emphasis on beverages such as wine, beer, spirits, and coffee. New products are currently available from mass-market, mid-tier, and specialty retailers.
JOHN LENNON
Epic Rights is developing three new licensing programs for the John Lennon brand. The Imagine classic licensing program for juniors to adults features iconic photographic images of Lennon throughout his life and includes his name, likeness, and signature. The I’m A Dreamer program for adults is based on Lennon’s famous Bag One Arts portfolio, which includes drawings by Lennon from rare archival sketches. Lennon’s artwork, including his iconic and recognizable self-portrait, celebrates human love and communication. Also part of Bag One Arts, the Real Love infant and toddler program, including apparel, toy, bedding, room décor, and more, is based on drawings Lennon created for his son.
WOODSTOCK
As the global licensing agents for Woodstock, Epic Rights and Perryscope Productions oversee innovative initiatives that both honor and reflect the Woodstock legacy and lifestyle. Woodstock continues to be the ultimate standard in music festivals, as well as the catalyst for today’s explosion of festivals around the world. The brand currently has 40 licensing partners in categories including apparel, accessories, electronics, food and beverage, gifts, and publishing worldwide. Woodstock products can be found at retail channels worldwide, including highend boutiques and mass-market retailers such as Target, Tilly’s, Kohl’s, Macy’s, and Wal-Mart.
Summer 2015
AC/DC
AC/DC has partnered with Perryscope Productions and Epic Rights to develop new global merchandising, licensing, retail, and ecommerce programs for the band. AC/DC has a vast archive of artwork, photos, tour logos, and imagery, and the band’s merchandise designs include Highway to Hell, Back in Black, High Voltage, and For Those About to Rock. Epic Rights and Perryscope will grant rights to partners to produce new AC/DC merchandise at retail. AC/DC released its new album, Rock or Bust, in December; opened the Grammy Awards in February; and kicked off its world tour headlining at Coachella in April.
CBGB
Epic Rights is managing the brand development and licensing program for CBGB, a valued symbol among rebels, misfits, and music fans. The iconic New York music venue is synonymous with groundbreaking music rebellion and extreme expressions of individuality. The new CBGB licensing program will appeal to hardcore music fans and a new generation of rebels. Epic Rights is targeting a broad selection of high-quality products, including fashion apparel, accessories, footwear, electronics, spirits and other beverages, and themed entertainment that embodies the classic punk, post-punk, glam rock, and new wave style that defined CBGB.
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CHARACTER & ENTERTAINMENT Kidz Bop Makes Some Noise
Kidz Bop is on the road again for its all-new Make Some Noise tour, featuring The Kidz Bop Kids performing kid-friendly versions of today’s biggest hits. This new, high-energy, interactive show follows the success of last year’s tour, which played to more than 100,000 fans and concluded at Radio City Music Hall in New York City. This year’s tour kicked off in March, and the first two performances, in Dallas and Seattle, sold out. The Make Some Noise tour will continue throughout the year and will hit more than 50 cities. Kidz Bop recently announced that it will expand its release schedule to include four albums per year. The expansion follows the success of Kidz Bop 27, which debuted in January at No. 3 on the Billboard Top 200 Album Chart. The album was Kidz Bop’s fastest selling release in two years. Kidz Bop 28 was released in March and will be followed by Kidz Bop 29 and Kidz Bop 30 this summer and fall, respectively. Kidz Bop will partner with Sonic this fall to launch a four-week My Wacky Pack Kids Meal promotion, timed to the release of Kidz Bop 30. Kidz Bop-themed premiums will be distributed at more than 3,500 participating Sonic restaurant locations nationwide. The promotion will feature in-restaurant signage, on-pack promotions, and custom online content. Kidz Bop continues to roll out its content across LeapFrog, VTech, and Nabi platforms, and produce musical toothbrushes with Church & Dwight Co. Inc., the maker of Arm & Hammer Tooth Tunes. Next year, Kidz Bop will celebrate its 15th anniversary with new marketing and promotional partnerships.
Sega Expands International Reach of Sonic the Hedgehog
Sega’s Sonic the Hedgehog franchise boasts more than 20 years as one of the world’s biggest entertainment characters with more than 140 million video games sold or downloaded worldwide. This year, Sega will give the little blue blur an updated look and feel and will bring even more characters into the mix with Sonic Boom. Led by global master toy partner Tomy and anchored by a TV series that successfully debuted on Cartoon Network in the U.S., and on Canal J and GULLI in France last November, the Sonic Boom TV series will race onto screens across Europe, the Middle East, and Asia beginning this summer. Existing U.S. licensees Bioworld, Fifth Sun, and Isaac Morris will join new licensees this year, including Accessory Innovations, Rubie’s Costume Co., Franco, Bulls I Toys, World Tech Toys, Bakery Crafts, Advanced Graphics, and teNeues for a new line of Sonic Boom toys, comics, apparel, and novelties. Sega of Europe also continues to acquire new partners for the Sonic Boom franchise, including recent signings with Hachette for publishing in France, Winning Moves for Top Trumps and Monopoly for EMEA, and TVM Fashion Lab for a range of adult and children’s apparel in the UK market. As the franchise approaches its 25th anniversary next year, Sega will also showcase its classic Sonic franchise celebrating the heritage and iconic status of the brand. Sega looks to further extend the brand’s licensing partners at Licensing Expo. Sonic Boom
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A Look Inside
s hA Pe s t He F Ut U r e
Sesame Workshop helps kids grow smarter, stronger, and kinder through a 360-degree brand experience.
by Marissa DiBartolo
he furry, lovable, and eternally positive (well, except for that grouchy one) monsters of Sesame Street have appeared on TV screens nationwide for more than 45 years, charming children while teaching them everything from ABCs and 123s to manners and the importance of self expression. Since Sesame Street’s original broadcast in 1969, it has expanded from an educational TV show into a fully integrated brand for kids, adults, and everyone in between. A raft of licensed consumer products, a 14-acre theme park, and an enormous social media presence ensure the brand reaches its audience in every possible way, continuously instilling its message of helping kids grow smarter, stronger, and kinder. With more than 500 licensees worldwide, consumers can purchase everything from an Oscar the Grouch T-shirt to a 3-Dprinted Snuffleupagus. While the Sesame Street series targets preschoolers, the licensed line has something for every member of the family, including teens and adults, who likely grew up watching Sesame Street themselves. “Nostalgia is extremely important as it extends the reach of what we do,” says Maura Regan, Sesame Workshop’s senior vice president and general manager of global consumer products. “We know that those kids have now grown up, and some of them—if they are not already parents—will become parents, so it’s another point of entry into the brand experience, and it’s a very important consumer base for us.”
T
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Collectibles is an integral segment of the brand for adults. Sesame Workshop partnered with Funko last year on a line of Pop! Vinyl collectible figures based on popular characters, including Super Grover, Cookie Monster, Bert, Ernie, Oscar the Grouch, and Snuffleupagus. The line debuted at New York Comic-Con last October, and new additions to the line will roll out this fall, including a Big Bird figure. Additionally, the company has partnered with Zazzle for a full line of customizable products, including men’s and women’s T-shirts, adult trucker hats, postage stamps, and smartphone cases. Consumers can shop by product category or by character, such as Big Bird, Count Von Count, and newer favorite Abby Cadabby. “As much as the Muppets don’t look like anyone, people instinctively are drawn to and relate to very specific characters or attributes within those characters,” says Regan. The unique traits of each character are part of Sesame Workshop’s recipe for success, casting a wide net as kids and adults alike can easily find something to relate to and enjoy. Social media provides the perfect outlet for Sesame Street fans to engage with their favorite characters. Cookie Monster has more than 9 million Facebook fans, while Elmo boasts 6 million. Sesame Street has a presence across all major social media platforms, including Twitter, Instagram, and Pinterest, where fans can find everything from DIY activities to character-themed recipes. The brand is extremely active on YouTube, where its pop-culture parodies rack up millions of views. From a recent spoof on Marvel’s Avengers: Age of Ultron titled, “Aveggies: Age of Bon Bon,” to a hilarious House of Cards parody based on the story of the Three Lit-
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tle Pigs called “House of Bricks,” Sesame has its finger on the pulse of pop-culture and creates content that fuses its brand with trending entertainment properties. “Parodies are critically important to us because we can pull the parent in. It’s obvious that the child isn’t going to recognize the puns or the celebrities, but parents will,” says Scott Chambers, senior vice president of worldwide media distribution at Sesame Workshop. “It pulls them into the show in a way that no other brand can do, so it’s really important to us.” “Game of Chairs,” a parody on HBO’s Game of Thrones, has more than 2.3 million views on the streaming site, while “The Hungry Games: Catching Fur,” a spoof on The Hunger Games: Catching Fire, stands at more than 4.6 million views. But all of these are small potatoes compared to the channel’s No. 1 most popular video: “Elmo’s Song,” which has racked up more than 123 million views since 2009, reminding us that the heart of the brand lies in adorable and engaging preschool-targeted content. And now, Sesame Workshop is making that content available to kids in more ways than ever before. Sesame Street Go! is a subscription-based app that gives kids access to more than 420 different clips, episodes, and games on one platform. Available on desktop, iOS, and Android devices, the app recently launched on Roku streaming devices as well, allowing kids to watch whether they are at home or on-the-go. The app has seen enormous success this year, with users spending roughly 60 percent more time on Sesame Street Go! than on the Sesame Street website. “It’s been an incredibly engaging platform for us,” says Chambers. And with great kids’ content come great kids’ products, and a natural licensing fit for Sesame Street is children’s toys. With Elmo serving as the face of the brand in this space, there are hundreds of toys featuring the squeaky-voiced monster’s heart-melting face. Sesame’s ongoing partnership with Hasbro to create innovative toys for the mass market continues this year with the tech-enhanced Play All Day Elmo, which features two modes of play: toddler and preschool. Kids can interact with this oversized, soft plush Elmo like never before thanks to eight different interactive games and more than 150 different responses. Touch sensors on his hands, tummy, and nose, as well as his responsiveness to movement, ensure kids will have an unrivaled interactive experience with the little red monster they know and love. Sesame Workshop will also release a DVD for Play All Day Elmo, aimed to give kids a great content experi-
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ence that reinforces Sesame’s curriculum alongside their new plush best friend. “I see our relationship with Hasbro getting closer and closer,” says Chambers. “I think it’s becoming critically important to connect the physical products and experiences with the brand across the content experiences as well.” While Hasbro is the lead toy manufacturer for Sesame Street products at the mass retail level, the makers of the monsters have a long-term relationship with Gund for specialty plush. “We’re always working on extending, expanding, and deepening our relationship with consumers through the Gund product line,” says Chambers. “It’s a specialty product line that is really important to us because it really connects with our audience in a way that no other toy line can.” This year, Gund will introduce Sesame Street Beanbag Pals, which are pill-shaped stackable plush that kids can toss, kick, throw, or juggle. And the fun doesn’t stop with toys. Over the last year, Sesame has signed new deals with licensees in multiple product categories, including Punchbowl for party invitations; FAB Starpoint for a molded Elmo piggy bank; Zak Designs for an assortment of dinnerware, flatware, and drinkware; Bentex for newborn apparel and toddler swimwear; MAG Brands for newborn, toddler, and infant outerwear; and SG Footwear for slippers. For more than 45 years, Sesame Workshop has been on a mission to strengthen kids’ relationships with others and keep them mentally and physically healthy. Through a vibrant portfolio of engaging and educational content, a fully integrated digital presence, a robust licensing program, and global brand recognition, Sesame Street continues to succeed in shaping the future generation. ••••
Play All Day Elmo, from Playskool, a division of Hasbro
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CHARACTER & ENTERTAINMENT Discovery Expands Across Its Portfolio
Discovery Consumer Products, the global licensing arm of Discovery Communications, featuring a retail footprint in more than 50 countries, will focus on licensing programs from Discovery Networks’ entire portfolio. Discovery Consumer Products’ brands include Discovery Channel, Discovery Kids, Animal Planet, Discovery Expedition, and TLC. Discovery Channel is the flagship brand for Discovery Communications, and the consumer products program translates top series into merchandise worldwide. The brand can be found in the publishing, apparel, gift and novelty, home, and toys and games categories, and continues to seek new opportunities to bring the Discovery brand and its TV-based properties to retail. Discovery Kids’ new point of view seeks to create a more cohesive and recognizable licensing program for kids. The brand capitalizes on the strong co-viewing habits of families across Discovery Channel on-air. Discovery Kids is looking for new licensing partners worldwide to deliver high-quality, interactive products that are fun, enriching, and interactive, while encouraging real world discovery and adventure. Targeting kids ages 6 to 12, the brand will continue to grow across the toys, interactive games, youth electronics, outdoor activity, apparel, and publishing categories. Animal Planet consumer products encourage consumers to celebrate and explore their connection to the animal world. A 15year and recently renewed partnership with Toys “R” Us in North America drives a robust Animal Planet toy line featured across a 20-foot space. This year, the line will expand to include a full range of monster-themed toys, including Big Foot, Yeti, and Giant Squid play sets. Last year, the partnership expanded to Australia and continues to grow worldwide. Initially launched in Asia in 2013, a partnership with Mojo for Animal Planet figurines has expanded to Europe this year. Animal Planet and Mojo will introduce a line of miniature collectible figurines, as well as new skus representing the mystical genre, such as dragons and dinosaurs. The Animal Planet pet program has greatly expanded in Europe this year, including a partnership with Chrisco for Animal Planet pet snacks, and the launch of additional pet items on amazon.com. The European offering follows a pet program in the U.S., including pet beds, blankets, toys, travel carriers, cleaning products, costumes, and more. The Animal Planet pet program continues to grow in Latin America with pet furniture and accessories at Liverpool Department stores in Mexico. The Animal Planet consumer product offering serves as a lifestyle brand for animal lovers around the world. Discovery Consumer Products is looking for global partners to grow the brand in categories including housewares, apparel, accessories, and more. Discovery Consumer Products continues to seek new opportunities to create fully immersive experiences around the world. Discovery at Sea, a partnership with Princess Cruises, launched this year. Discovery at Sea features themed tours, science activities, and hands-on programs and games based on Discovery’s breadth of brands and programming. From Stargazing at Sea to Shark Week-themed experiences to shore excursions inspired by hit Discovery Network programming, Discovery at Sea offers something for everyone on board. Discovery Channel Store in Ocean Park, China’s top theme park and the fourth most visited theme park in Asia, opened its doors last year. The store offers visitors souvenirs and product across their favorite Discovery programs.
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CHARACTER & ENTERTAINMENT ITV Secures Global Licensing Partners for Thunderbirds Are Go
ITV Studios Global Entertainment’s (ITVS GE) new action-adventure series Thunderbirds Are Go made its UK, Australia, and New Zealand debut this spring, and has since secured international broadcast partners in Japan, Israel, and the Middle East. Produced by ITV Studios in partnership with Pukeko Pictures and Weta Workshop, the new show has attracted an audience of nearly 3 million viewers on kids’ channels ITV and CITV in the UK, and has been well received on Nine Network’s Go! and TVNZ’s TV2 channels in Australia and New Zealand. The brand’s licensing program is spearheaded by a slate of new consumer products partners across categories including toys, apparel and accessories, gifting, stationery, and personal care, which will launch at UK retailers later this year. For apparel and clothing, designer and manufacturer Global Solutions Clothing is set to launch a range of kids’ dress-up costumes inspired by the new series; Fashion Lab will launch a line of boys’ outerwear; Xccessories MC will launch a range of hats, gloves, and scarves; Aykroyd & Sons will launch a line of boys’ nightwear and underwear; Misirli will debut a collection of kids’ socks; and Alfred Franks & Bartlett will produce boys’ sunglasses. In the stationery category, GB Eye will launch a range of posters, prints, gift sets, and badges; Star Cutouts Ltd. will release a selection of boys’ cardboard face marks and cardboard standees; Paper Projects Ltd. has signed for a range of sticker formats and reward charts; and UP Global Thunderbirds Are Go Tracy Island Playset, Sourcing will launch a line of tissue products. from Vivid Imaginations Additional UK licensees include World’s Apart Ltd. for novelty lighting, including Go Glow Lights and Go Glow Pal; DNC UK Ltd. for lunchware and snack boxes; and production partner Weta Workshop for a gifting program, which will feature T-shirts, art prints, display models, and The Art of Thunderbirds Are Go book. These new partners join an existing group of licensees, including master toy licensee Vivid Imaginations, Simon & Schuster, DC Thompson, BeyondTheStory, Danilo, Posh Paws, MV Sports, Smith and Brooks, DreamTex, and Kokomo. In New Zealand, ITVS GE has appointed Global Licensing (NZ) Ltd as licensing agent for the Thunderbirds Are Go series. Global will oversee the development and expansion of the brand’s licensing program in the region, and will work with master toy partner Vivid Imaginations and local distributor Planet Fun for a toy roll out across the territory later this year. The deal covers figurines, vehicles, play sets, diecast, role-play, and dress-up. In Japan, distributer Tohokushinsha Film Corp. has acquired the Japanese TV and licensing rights for the brand. ITVS GE’s presentation slate for this year will also feature Classic Thunderbirds, the new “inspired by Playmobil” kids’ TV series Super 4, the digital game Cut the Rope, and the boys’ and 1970s iconic music brand Village People. Thunderbirds Are Go
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Property Profile
Gorilla Warfare
King Kong Returns in Kong: King of the Apes, a Big New Property with a Big Licensing Program
Y
by Phil Guie
ou can’t keep a gorilla down, especially one that’s as big as King Kong. Arad Animation and 41 Entertainment are resurrecting the titular primate, who debuted in the 1933 classic, King Kong, in a new animated series, Kong: King of the Apes. A feature-length movie, as well as 12 half-hour episodes, will launch on Netflix next year. The Kong: King of the Apes licensing program includes master toy partner MGA Entertainment Inc. (MGAE), which will provide action figures, plush, play sets, and more. The new series is the brainchild of Allen Bohbot, who produced the King Kong TV series that aired from 2000 to 2001, and veteran animator Avi Arad. The latter, who has more than 50 animated TV shows to his name, came up with the idea of setting the new series in a futuristic landscape, one in which Kong is among the last living species. “Once I thought we had the story we wanted to tell, we went into it,” says Arad. “We started developing it, and like they say, the rest is production.” Along with Kong himself, the series will revolve around twin brothers—one who is a naturalist, and one who is obsessed with emulating the world of the past through technology. The siblings’ rivalry intensifies with the capture of Kong, who is brought to a museum located outside of San Francisco and put on display alongside artificially intelligent dinosaurs and other replicated creatures. Due to the rivalry between the brothers—and some basic misunderstandings about Kong’s nature—the giant gorilla is set up as a villain. After he escapes from the museum, Kong finds himself on the run and squaring off against a number of different threats—including the aforementioned robot dinosaurs—to not only avoid re-capture, but to stay alive. “It’s a little bit like The Fugitive, because even if Kong does good, someone is bound to say, ‘We have to destroy
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this creature,’” explains Arad. “But you will see throughout the show that some people are starting to recognize that he really cares, and that he is very gentle, heroic, and funny.”
Netflix, or, the 800-Ton Gorilla
Kong: King of the Apes represents the first series produced by Arad Animation an an exclusive for Netflix, though the companies had a prior relationship for another Arad-produced series, Pac-Man and the Ghostly Adventures, which became available on the streaming video on demand (SVOD) platform after a run on Disney XD. According to Arad, producing Kong: King of the Apes for Netflix was not all that different from a broadcast network. He and his team would supply Netflix with storylines, outlines, and scripts for episodes, which the creative executives would have to approve. “Obviously, they have approval rights and consultation [rights], but our relationship with them creatively is very good and secure,” says Arad. “They actually have the same process as far as censorship, what’s right for kids, and what’s not right for kids [as the networks]. They give us notes, but obviously, we’ve been in the kids business most of our lives.” While the creative process may have been comfortable, Arad admitted the chance to partner with Netflix is very exciting, given the rise of SVOD platforms and the opportunity to reach a wide viewership. That excitement, he said, stretches to licensees and retailers. Arad Animation, 41 Entertainment, and MGAE all performed their own due diligence to determine the licensing value of Netflix original programs. The resulting data led to widespread optimism. “There is great willingness and excitement today for licensing properties that are shown on Netflix, because of the number of households that are involved,” says Arad. “It’s very difficult to get this level of concentration.”
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The Story Is the Big Story
According to Arad, the property is getting a strong reaction among retailers. He attributes the positive response to the brand recognition King Kong holds, but says the show’s creative direction makes it unique. Isaac Larian, president and CEO of MGAE, concurs. “The story, it’s all about the story,” he says. “The way Avi is a master storyteller is incredible, and that’s where it all starts. He has a unique ability that I don’t think anyone else in Hollywood has, and it’s because he was in the toy business before, and so he thinks with the toys in mind.” MGAE’s toy line will include both traditional and digital products, with Kong and the dinosaurs at the center. According to Larian, his company has tended toward a conservative approach when it comes to licensing, but in the case of Kong: King of the Apes, he expects similar success to when MGAE was the master toy licensee for DreamWorks’ Shrek. With regard to which age demographics should find Kong: King of the Apes particularly appealing, Arad points to young children, who will be drawn to the character’s monkey-like sense of humor. In addition, one of the main characters communicates with Kong in the manner of Dog Whisperer with Cesar Millan, so young viewers may come to recognize the language between the two characters, which they can emulate.
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Currently, Arad Entertainment and 41 Entertainment are exploring opportunities in flying toys, mobile games, and other play categories. In the realm of back-to-school, they see the potential to feature Kong and the dinosaurs on different offerings. “I think we have a very good program,” says Arad. “Today, you cannot run with just 60 SKUs. Those days are over, and in many ways they should be. By picking a character that’s so central and so well-known—and obviously, dinosaurs are beloved as well—and a number of other animals that become cyber-ized, [the program] is concentrated on the kind of things that would have sold anyhow.” There is the issue of competing against other licensed items featuring King Kong, given the property’s somewhat convoluted back history. Larian, however, views the involvement of Arad as a huge difference-maker. “At the end of the day, you need to have a good story, and that's what you get with Avi,” he says. “And I think we do product innovation better than anyone else.” The initial wave of licensed Kong: King of the Apes products is scheduled for release during the fall of next year. Prior to North American International Toy Fair, they will be shown during confidential appointments at Hong Kong Toys & Games Fair and Spielwarenmesse in Nuremberg. ••••
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CHARACTER & ENTERTAINMENT Sprout Launches Nina’s World, Terrific Trucks as Part of Commitment to Original Programming
Mandy Patinkin and Rita Moreno have joined the cast of Nina’s World, an original Sprout series. Patinkin and Moreno will voice the friendly community librarian, Mr. Lambert, and the main character’s grandmother, Abuelita, respectively. Nina’s World tells the story of 6-year-old Nina, based on the childhood of the imaginative character from Sprout’s The Good Night Show. Nina invites viewers to join her and her best friend, Star, on a day of fun in her vibrant and colorful neighborhood. Every day transforms into a new excursion around the neighborhood to celebrate family, community, diversity, and wonder. Patinkin is a noted performer who most recently appeared as Saul Berenson in the TV series Homeland. He is also known for his work on Broadway, his portrayal of Inigo Montoya in the motion picture The Princess Bride, and other film credits. “When we created the character of Mr. Lambert, we knew we wanted Mandy to voice the role, as the character’s love for the arts is so true to what we knew about him. It’s a privilege to have him on board,” says Andrew Beecham, senior vice president, programming, Sprout. Moreno has appeared on stage and in movies for nearly 70 years. Following her Broadway debut at the age of 13, she enjoyed roles in classics such as Singin’ in the Rain, The King and I, and West Side Story. Moreno won the Best Supporting Actress Oscar for her performance in West Side Story, becoming the first Hispanic woman to ever win an Academy Award. “Rita Moreno is a living legend, and it’s fantastic to welcome her to Sprout’s family,” says Sandy Wax, president, Sprout. “We know that she will bring her character to life as no one else could—she embodies all of the spirit and energy that Abuelita brings to Nina’s World while maintaining an authenticity to the character’s Hispanic background.” A meticulous man with an encyclopedic memory, Mr. Lambert spends most of his time in the library, inspiring Nina and her friends to read and embrace the arts. Abuelita, meanwhile, helps Nina navigate childhood and learn about her culture. The show will take a multilingual approach that incorporates English, Spanish, and American Sign Language, and will emphasize inclusiveness, as well as the value of communicating across multiple languages and appreciating other cultures. Sprout is working with Pipeline Studios on Nina’s World, which will premiere on Sprout in September. Sprout has greenlit Terrific Trucks, the newest addition to its portfolio of original series. Produced by Breakthrough Entertainment, Terrific Trucks is a live-action series that celebrates preschoolers’ fascination with big construction vehicles. The stars of the new series are actual life-size trucks, each with its own unique personality, including a dump truck, a front-end loader, a digger, a semi, and a mini frontend loader. Sprout has ordered 26 half-hour episodes, each one following the five truck friends from their morning meeting at the quarry home base to grading a highway, digging a tunnel, moving houses, and more. Important lessons are shared as the trucks overcome obstacles and work together as a team on tough projects. “We know that preschoolers love trucks—we see it in our research and hear it from our viewers. With Terrific Trucks we will show the real world of real trucks doing real work—and make it big,” says Wax. “Terrific Trucks is a big show with big trucks going on big adventures, and we believe that our audience will fall in love with it in a big way.” Terrific Trucks is slated to join Sprout’s schedule next year, and reinforces the network’s continued push for original series. As Sprout celebrates its 10th birthday this year, the network will finish out the year doubling its current volume of original programming.
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CHARACTER & ENTERTAINMENT Delta Helps Kids Sleep, Study, and Relax with Their Favorite Characters
Delta Children introduces new licensed furnishings featuring Paw Patrol and Minnie Mouse. The Paw Patrol Plastic 3D Toddler Bed brings kids’ favorite crime-fighting canines to life, boasting a sturdy steel and plastic frame, sleep rails on both sides, and 3-D graphics at the footboard. The Paw Patrol Plastic Toddler Bed has a sturdy steel and plastic frame, sleep rails on both sides, and decals on both the headboard and the footboard. Both beds can hold up to 50 lbs, are recommended for kids ages 15 months and up, and are certified by the Juvenile Products Manufacturers Association (JPMA) to meet or exceed Paw Patrol Room with 3D Bed, from Delta all safety standards set by the U.S. Consumer Product Safety Commission (CPSC) and the American Society for Testing and Materials (ASTM). Each one uses a standard crib mattress (sold separately). The Paw Patrol Multi-Bin Toy Organizer features six uniquely sized fabric bins supported by a sturdy wooden frame. Finished with colorful illustrations of Chase, Rubble, Rocky, Zuma, and Marshall, the organizer is made of engineered wood, solid wood, and fabric. The Paw Patrol Deluxe Multi-Bin Toy Organizer features nine uniquely sized fabric bins supported by a sturdy frame made of engineered and solid wood. The bins come in large, medium, and small sizes. Easy to assemble, the organizer is finished with colorful illustrations of the characters Chase, Rubble, Rocky, Zuma, and Marshall. The Paw Patrol Upholstered Chair features colorful graphics, a sturdy hardwood frame, and a padded seat. Recommended for kids ages 3 to 6, the chair can hold up to 100 lbs and withstand years of use. Once assembled, it wipes clean with mild soap and water. The Paw Patrol Table & Chair Set with Storage includes one table and two chairs, and features colorful graphics of the heroic puppies and their leader, Ryder. Made of engineered and solid wood, it has a built-in storage area at the center for kids’ homework, crafting projects, or snacks. Easy to assemble, it also boasts a durable, easy-to-clean, scratch-resistant finish that protects the table’s graphics. All Paw Patrol toy organizers, chairs, and table and chair sets meet or exceed the safety standards set by the U.S. Consumer Product Safety Commission (CPSC). The Disney Minnie Mouse Twin Bedroom Collection in white and pink Minnie Wooden Twin Bedroom, from Delta is a four-piece set that includes a twin bed, a wall mirror, a combo dresser, and a nightstand. It boasts pink accents, numerous bows, and polka dots that capture the cheerful spirit of Minnie Mouse. The centerpiece of the collection is a twin bed featuring an upholstered headboard, while both the combo dresser and nightstand feature Minnie Mouse-shaped knobs, and the wall mirror is topped with Minnie’s signature polka dot bow. All items are constructed of strong and sturdy wood, and the smooth metal glide system with safety stops prevents the drawers on the dresser from pulling out. The bed is easy to assemble, while the dresser is sold partially assembled, and the nightstand comes fully assembled.
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CHARACTER & ENTERTAINMENT Toy State Partners with WWE
Toy State has inked a licensing deal under its Nikko brand with World Wrestling Entertainment, Inc. (WWE) for a line of R/C products for distribution throughout North America. Designed for kids ages 6 and up, the line will feature five top WWE Superstars: John Cena, Sheamus, Daniel Bryan, Roman Reigns, and The Rock. Globally, Toy State has also entered into a new race team sponsorship and licensing agreement with Sebastien Loeb Racing for vehicles in the R/C and lights and sound vehicle categories.
WWE The Rock R/C vehicle
9 Story Media Group Takes the World by Storm
Now in its fourth season, Wild Kratts, from 9 Story Media Group, is one of the top kids’ shows in the U.S., ranking No. 1 for kids in the 4 to 8 and 6 to 11 age groups several times over the past year. The strong performance of the brand extends to toys, books, home entertainment, digital games, and live shows, which have seen impressive results to date. Master toy licensee Wicked Cool Toys launched a broad toy offering at Toys “R” Us last fall, which included creature power suits, talking plush, and vehicle sets. Following their strong performance, new items have been developed, including a Tortuga play set, a deluxe power suit with sound, and hero and villain packs. Random House Kids released the first Wild Kratts book in the U.S. and Canada as part of the publisher’s Step into Reading program. Since launching last fall, Wild Kratts’ live shows have also been a huge success, selling out more than 40 performances in North America. There are also more than 20 online games and three mobile apps, with new additions releasing on a regular basis. Home entertainment has also proven to be a strong category for Wild Kratts: A total of 10 DVDs have been released in the U.S. market to date, while 12 have been released in Germany. Several new licensees have signed on with the brand, all of which will be announced at Licensing Expo. The series has global reach among top-tier broadcast partners, including Discovery Kids in Latin America and Asia, Super RTL in Germany, TV3 and Canal Panda in Spain, RTE in Ireland, VRT in Belgium, Minimax in Eastern Europe, Media Corp PTD Ltd. in Singapore, Primetime in Colombia, Minika in Turkey, E Junior in UAE, and the Al Jazeera Children’s Channel in the Middle East. In total, the series airs in more than 180 countries and in 18 languages. A co-production between The Kratt Brothers Co. and 9 Story Media Group, Wild Kratts was created and developed by Martin and Chris Kratt, real life brothers and zoologists who star in the show as animated versions of themselves. The 26-episode fourth season will roll out in the U.S. on PBS Kids later this year. The series currently airs on weekdays on PBS stations nationwide in the U.S. 9 Story Media Group is a creator, marketer, and distributor of kids- and familyfocused intellectual property, including brands such as Daniel Tiger’s Neighborhood, Wild Kratts, Numb Chucks, Arthur, and Peg + Cat. 9 Story represents more than 1,800 half-hours of animated and live-action programming, and has produced 900-plus half hours of award-winning children’s content. Wild Kratts
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CHARACTER & ENTERTAINMENT CPLG and Square Enix Unleash Space Invaders
Square Enix and Taito have released a new guide to assist licensees in developing fashion and trend product across different categories based on the classic video game Space Invaders. Square Enix commissioned the design agency Watermelon to look at future trends, and together with licensing agency CPLG, identified three strong design directions. New art will feature Space Invaders graphics, but with a twist to engage fans and broaden the brand’s appeal. Coin-Op Classics, Pixelism, and Point & Shoot themes are available now, with additional themes to release later this year. In addition, the guide includes packaging and brand guidelines to give the items a more cohesive presence at retail. CPLG is an entertainment, sport, and brand licensing agency with offices in the UK, Benelux, France, Germany, Italy, Spain, and the U.S. Space Invaders Point & Shoot Sweater
eOne Expands Peppa Pig’s U.S. Presence
Entertainment One (eOne) Licensing’s international preschool series Peppa Pig will expand its U.S. footprint with new partners. A host of new licensed merchandise will roll out from licensees such as Baby Boom, a division of The Betesh Group; Idea Nuova; Spin Master; The Bridge Direct; Handcraft; and Esquire Footwear. The new Peppa Pig products, including bedding, underwear, furniture, footwear, and more, will launch at major mass-market retailers nationwide this fall. In addition, eOne has appointed Oasis Productions as its costume character partner, helping to arrange “playdates” for Peppa and George with fans in the U.S., giving kids a new way to experience the preschool brand. For the home décor category, Baby Boom (The Betesh Group) will launch a line of toddler bedding, blankets, pillows, nap mats, toddler travel and hooded towels, washcloths, and soft bath accessories. Idea Nuova will create furniture, lighting, soft storage chests, rugs, hampers, wall hangings and hooks, inflatable beds, and bed tents. Spin Master is set Peppa Pig to launch Marshmallow foam furniture, including the Just My Size chair, and The Bridge Direct will feature Peppa Pig on Inkoos Color ’n Create draw, wash, and redo activity plush, which kids can decorate with washable markers. These newest Peppa Pig home décor licensees join existing licensee Character World, in partnership with Franco Manufacturing Co., the brand’s master bedding, bath, and beach partner. For apparel, new licensee Handcraft will launch children’s packaged and hanging underwear in sets and separates; while Esquire Footwear has children’s boots, athletic shoes, sandals, slipper, shoelaces, and accessories. Both companies expand Peppa Pig’s collection of fashion licensees, which also includes Happy Threads for fashion apparel and Komar for sleepwear. Happy Threads will expand its line with new collections and sets as well as a range of licensed Peppa Pig T-shirts, while Komar will add dressy nightgowns to its Peppa Pig assortment and extend the brand to its Cuddl Duds label. The new Peppa Pig product ranges are part of a major mass-market rollout of Peppa Pig licensed merchandise in the U.S., with retail partners including Toys “R” Us, Wal-Mart, and Target. Peppa Pig is now on track to exceed $1 billion in worldwide retail sales this year.
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CHARACTER & ENTERTAINMENT Imagine by Rubie’s Offers Age of Ultron Dress-Up
Rubie’s Costume Co. expands its Imagine by Rubie’s line of dress-up and roleplay offerings with Marvel’s Avengers: Age of Ultron. The Hulk Window Box Set includes a fiber-fill muscle chest shirt with a matching mask. Also from Marvel’s Avengers: Age of Ultron, the Iron Man Window Box Set includes a fiber-fill muscle chest shirt with a matching mask. Both products are available in child size small. Marvel’s Avengers: Age of Ultron, Iron Man Window Box Set
BBC Worldwide Partners with Massive Audio
BBC Worldwide North America has entered a deal with Massive Audio for a collection of Doctor Who-inspired audio products to be distributed in North America. These highquality, wireless Bluetooth speakers are available in a Tardis model (the Doctor’s space and time machine), as well as two different Dalek (one of the Doctor’s oldest foes) models: Dalek Sec and Assault Dalek. Each model features an array of on-board controls, flashing LEDs, and audio clips taken directly from the show. Doctor Who Tardis Speaker
Universal Partnerships & Licensing Takes to the Big and Small Screens
Universal Partnerships & Licensing (UP&L) oversees NBCUniversal’s consumer products and digital licensing for Universal Pictures, NBC Television, Focus Features, and the Sprout Channel. The division is also responsible for film, home entertainment, and TV promotions. UP&L continues to focus on its blockbuster film franchises, Minions and Jurassic World. The company will also introduce several new properties from Universal Pictures and Illumination Entertainment, including The Secret Life of Pets, a comedy about the lives pets lead after people leave home for work or school each day. The film is set for release next February. Additional new properties include an original animated comedy event about courage, competition, and carrying a tune, written and directed by Garth Jennings (Son of Rambow, The Hitchhiker’s Guide to the Galaxy); and Despicable Me 3, which will continue the adventures of Gru, Lucy, their three adorable girls, and the Minions. UP&L will continue to expand TV properties, including The Biggest Loser, while introducing new opportunities from the Sprout kids’ network. The NBC and Esquire Network summer series American Ninja Warrior; the upcoming miniseries Heroes Reborn, based on the 2006 breakout series Heroes; and fan favorites including The Tonight Show Starring Jimmy Fallon, Brooklyn Nine-Nine, Battlestar Galactica, and The Office will also expand this year.
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Summer 2015
CORPORATE BRANDS Idea Patch Leads Sin City Cabaret Expansion
SCE Group is transforming the New York-based adult nightclub, Sin City Cabaret, into a full-scale lifestyle brand targeting the urban market. Licensing and marketing firm Idea Patch will lead this expansion with a comprehensive program, which will include a full range of products for men and women, including apparel, intimates, headwear, hosiery, accessories, and drinkware. IDW Publishing, a publisher of comic books, graphic novels, and trade paperbacks with a catalog of independent titles available for licensing, is seeking potential partnerships across categories including apparel, collectible toys, mobile games, drinkware, wall décor, mobile accessories, and stationery products. Its key properties include Zombies vs. Robots, Locke & Key, World War Robot, Winterworld, Weird Love, 30 Days of Night, and Bloom County. Fright Rags has signed for a line of 30 Days of Night T-shirts and hoodies; ACCO Brands has signed for Bloom County calendars; and Trau & Loevner will create Zombies vs. Robots T-shirts, hoodies, and fashion tops.
The Sharpe Co. Smokes Out the Competition
The Sharpe Co.’s Hustler adult entertainment brand has partnered with ISI, the only ISO-certified vape and e-cigarette manufacturer to launch a range of Hustler Vapes globally this summer. Additional licensees for the Hustler brand include Isaac Morris and Aquarius in the U.S., Philcos in Canada, Fipotex in Europe, Parks Agency in the UK, and Scorpio Posters for North America. The Sharpe Co.’s Pets Rock brand focuses on humor and a unique photography style. Licensed products are available in multiple categories, including soft goods, homewares, giftware, greeting cards, and publishing. New licensees include Gold Label for personalized products, Culturenik for giftware, Gakken for stationery in Japan, Gruppo Carorama S.R.L. for stationery in Europe, Recycled Paper Greeting for greeting cards, Waterlyn for greeting cards in Australia and New Zealand, C&A Brazil for apparel in Brazil, Kmart Australia for sleepwear and apparel, and TCG for puzzles in North America.
Summer 2015
CORPORATE BRANDS Beanstalk Signs New Clients Diageo & Romero Britto, and Renews Focus on Manufacturer Representation Service
Beanstalk is thrilled to announce two new clients to its roster: Diageo and Romero Britto. The agency is now representing global iconic brands BAILEYS® and GUINNESS®, on behalf of Diageo, a global leader in beverage alcohol. Beanstalk is tasked with the management and expansion of Diageo’s already extensive licensing programs, comprising of more than 40 licensees globally in the categories of food, gift, and fashion/lifestyle. In addition, Beanstalk has signed internationally renowned pop artist, Romero Britto, for representation. Capturing Britto’s iconic visual style and universal themes of love, happiness, and hope, Beanstalk will strategically extend the brand in North America and Europe and will also work with existing licensees to develop and launch additional branded products. To extend Britto’s reach as an optimistic, playful, and imaginative lifestyle brand that embodies the enlightened spirit of its founder, Romero Britto, Beanstalk will seek best-in-class partners across a variety of categories, including apparel and accessories, home furnishings and décor, housewares, toys and games, consumer electronics accessories, and stationery, among others. Beanstalk will also explore cobranded partnerships and retailer exclusives for Britto. Beanstalk’s Manufacturer Representation service answers a growing marketplace need and has experienced tremendous growth over the past year. Through this service, Beanstalk partners manufacturers and retailers with the most sought after and best fit brands to bring new products to market. The company’s strategic approach begins by understanding a client’s goals, whether they are to reach new consumer targets, enter new categories or channels of distribution, or increase retail penetration. Beanstalk then identifies the most relevant properties, ultimately recommending those that will best attract attention to a manufacturer’s product line and gain a competitive advantage. Beanstalk’s strong, global network of relationships and its extensive resources enable it to quickly access and secure the right brands for its clients’ products. Beanstalk’s work in this space spans companies in the fashion, fashion accessories, home textiles, housewares, pet, and electronics industries, among others.
Blueprint—Powered by Beanstalk Introduces New Brand Extension Indicator Tool
Beanstalk’s consulting division, Blueprint—Powered by Beanstalk, assists companies as they prepare to extend their brands. Blueprint works with brand owners, retailers, and manufacturers on how to evolve and optimize their brands through customized and commercially viable brand development and extension strategies. Blueprint will introduce the Brand Extension Indicator (BXI), a proprietary, customizable online tool that guides brand owners through the opportunity and partner selection processes, utilizing quantitative and qualitative metrics to evaluate two key areas: fit with a brand’s equities and viability of entry into prospective market segments, and suitability of partners under consideration.
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Summer 2015
CORPORATE BRANDS Beanstalk Signs Licensees for Corporate Brands
Beanstalk’s Stanley brand recently licensed three new partners: INA International in the work and safety footwear category, Who-Rea for automotive accessories, and Lifan Power USA for gas-powered water pumps. Beanstalk will also continue to grow Black+Decker’s licensing program. AdTech’s cordless, battery-operated, hot melt glue gun will be available in September, and Chapin has developed a four-gallon cordless backpack sprayer. Midea will develop a range of corded, upright stick, canister, and wet/dry vacuums to launch this fall. For the U.S. Army, XMC Branded Products will produce the Footlocker Fridge, an authentic replica of the classic military footlocker, this summer. Picnic Time Inc. will introduce products in outdoor leisure and indoor entertaining categories. Bridgestone Golf will produce sporting good products, including golf balls, headwear, and golf bags. Beanstalk has significantly grown Honda’s apparel and headwear program in recent years, and Honda Powersports’ vintage-inspired program expanded with apparel, home décor, and gift and novelty. For Acura’s new Acura NSX, Beanstalk seeks licensing partners in the consumer electronics, mobile accessories, eyewear, jewelry and watches, wearable technology, luxury apparel, die-cast and toys, and home décor categories.
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Beanstalk Expands Food and Beverage, Fashion Lines
Beanstalk is looking to develop licensing programs for two of its fashion clients, The Limited and HUE. The Limited licensing program will extend the brand’s credibility and leverage its relationship with the Sophisticated Professional. Through licensing partnerships, The Limited will enhance its offering across multiple fashion and lifestyle categories, delivering upon the brand’s mission—to be the preferred modern lifestyle brand and trusted advisor to Sophisticated Professionals everywhere. Categories available for licensing include: fashion jewelry and watches, handbags and accessories, footwear, optical, maternity, menswear, swimwear, luggage, home, and fragrance, among others. The HUE licensing program will leverage the brand’s core equities of fashion, fun, and color to create a multi-category, aspirational and fashion-forward line of apparel and accessories at department store, specialty store, and online retailers. Categories available for licensing include: apparel, activewear, footwear, intimates, handbags, and small leather goods. For TGI Fridays, Inventure Foods, Inc. launched a new Happy Hour Snack Mix, which features a mix of premium nuts, seeds, crackers, sesame sticks and more, all covered with mouth-watering spice combinations. Flavors include: Cheddar Bacon, Sriracha Ranch, Sweet BBQ, and Sweet & Spicy. HJ Heinz Company has extended its popular Potato Skin line to include Buffalo Style Chicken Potato Skins and BBQ Pulled Pork Potato Skins. Beanstalk has continued to leverage the got milk? brand’s 90+ percent awareness, having secured food and beverage-based brand extensions with three licensees. Got Snacks? introduced granola and granola bars to Sam’s Club Puerto Rico in late 2014, and recently secured retail placement for its cookie products at Shop Rite stores. Got Snacks? will introduce a broader range of branded packaged snacks, including biscuits, ready to eat cereals, and cereal bars at additional retailers throughout 2015. The program’s confectionery partner, Melville Candy Company, introduced its hot cocoa spoons at Walmart in the Fall of 2014, and Diversified Flavor, the got milk? milk modifier licensee, will be launching got milk? branded drinking straws, powders, and milk infusers this year.
Summer 2015
CORPORATE BRANDS Pennzoil
Pennzoil, the No. 1 motor oil brand in the U.S. with global reach across 60 countries, continues to extend into products that are consistent with its core equities of innovation, quality, performance, and durability. This leading brand, owned by Shell, has the highest awareness in the motor oil category, is supported by a multi-million dollar advertising and promotional budget annually, and has a licensing program consisting of best-in-class licensees. Partners include Custom Accessories, which is one of the program’s oldest licensees for oil and lubrication products and tools, and Navajo for electrical-related and sealing goods. With new product launches this year and last, both licensees continue to perform very well and expand distribution to mass retailers, specialty and auto stores, home centers, and clubs across the U.S. and Canada. On the collectible side, GreenLight Toys and Hobbico have secured placement for their die-cast vehicles and vintage replicas in a variety of retail locations, from specialty automotive stores and mass-merchant retailers to collectible venues. The products appeal to a broad consumer base including die-cast collectors, vintage memorabilia markets, and Pennzoil brand enthusiasts, truly communicating the rich heritage of both Pennzoil and Quaker State. Open Road Brands is the collectible and novelty partner for its vintage-inspired collection of wall art, signage, and containers at retail. Dynasty is Pennzoil’s newest licensee for apparel and distributes to mass market, mid-tier, specialty, off-price retailers, clubs, and online. Pennzoil is currently seeking partners in the following categories: degreasers, hand cleaners, oil change accessories, pressure kits, shop towels, batteries, electrical and lighting, cooling and heating system parts, engine and diagnostic tools, creepers, mechanics seats, and lifting equipment, among others.
Tinderbox News Update
Tinderbox, the dedicated digital division of global brand extension agency, Beanstalk, is pleased to add two new properties to its roster: Halo and Ori and the Blind Forest. Tinderbox has been appointed as the licensing agent for the blockbuster science-fiction franchise, Halo. Tinderbox will support Microsoft Studios and 343 Industries in further expanding Halo’s licensing footprint in Europe. The agency will also collaborate with highly esteemed Mexico City-based licensing experts, Tycoon Enterprises, and its network on the ground, on pursuing consumer products opportunities for Halo across Latin America. Tinderbox has also been appointed as the exclusive licensing agent for the action-adventure video game, Ori and the Blind Forest. Tinderbox will support Microsoft-owned development studio, Moon Studios, in pursuing global licensing opportunities across multiple categories for Ori, which was first released for PC and Xbox One in March and combines exploratory gameplay with an emotional narrative, featuring hand-painted artwork and a fully orchestrated score. Tinderbox will kick off global consumer products programs for three titles from the Microsoft Xbox portfolio: Fable, Forza, and Killer Instinct, and will also pursue licensing opportunities for zombie survival game franchise, State of Decay.
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Summer 2015
Energizer Grows Licensing Program
Energizer Household Products Inc. has extended its premium brand into dozens of new consumer products over the last decade. Energizer’s products target families and young professionals that are looking for superior performance and support the company’s motto: “that’s positivenergy.” Licensing partners incorporate the innovation and quality for which Energizer is known, and Energizer’s 97 percent brand awareness helps maximize sales in 140 markets. Energizer’s licensing program continues to grow, achieving $236 million in retail sales. Products include consumer electronic accessories, such as USB chargers, phone, tablet and laptop accessories; generators, power inverters, jump starters, photographic accessories, gaming accessories, audio/video cables, surge protectors, automotive and power products, LED lightbulbs, solar landscaping lights, and Energizer Bunny Halloween costumes. The products are available in North America in mass, home improvement, supermarkets, and electronics retailers, and has expanded in Europe, Latin America, Australia, and New Zealand.
Summer 2015
CORPORATE BRANDS AALMG Expands Lifestyle Program for Mandalay Bay
All-American Licensing & Management Group (AALMG) has signed PakLab to launch Bay Soleil for Mandalay Bay. Inspired by Las Vegas’ desert surroundings and Mandalay Bay’s tropical pool and environment, PakLab has developed 12 new products designed to protect sunbathers with SPF and assist with repairing skin damage caused by prolonged sun exposure and extreme environment. Additional new licensing partners include Simmons Mattresses for multiple lines of pillow-topped and luxury mattresses; C-95 Procurement (a division of the Spanish furniture giant Euromykasa) for an assortment of indoor/patio furniture; Westrock Coffee for bagged coffee, K-Cups, and coffee makers); Saddle Springs Beverages & Go Pouch Beverages for juices and adult beverages; and Scientific Games Inc. for lottery games. These licensees join a portfolio of Mandalay BayBay Soleil branded products that will be featured both on property and at traditional retailers starting this year. Mandalay Bay is set on 120 acres and features the Mandalay Bay Beach, a tropical pool paradise with real sand, and climate-controlled, poolside gaming. The Mandalay Bay Events Center, restaurants, entertainment, shopping, Shark Reef Aquarium, and 1.7-million-square-foot Mandalay Bay Convention Center combine to make Mandalay Bay a distinctive Las Vegas destination.
Lawless Seeks Licensees for Lineup of Brands
Lawless Entertainment has signed worldwide licensees, including Barrett Sportswear (apparel and tote bags), Verilhac (back to school), Atlex (shoes), Classico San Francisco (postcards), and Rita Marlow (children’s apparel). Glassware manufacturer Les Verreries d’Arc developed 43 products that were sold worldwide. Good Sign merchandise has been featured in U.S. retail outlets, including Macy’s, the Mercantile Group, Dayton Hudson, and JC Penney. Good Sign is seeking licensees for apparel, social expressions, accessories, and more at Licensing Expo. Nutri Ventures promotes healthy eating among kids ages 4 to 8, and is built around an animation series, original music/video clips, and a digital world. Nutri Ventures: The Quest for the 7 Kingdoms consists of 52 half-hour episodes and has been sold to more than 30 countries. In the U.S., Nutri Ventures debuted on Hulu and Hulu+, where the series surpassed 2 million viewers. Kids can also watch the first six episodes in Spanish on Hulu and Hulu+. Lawless seeks licensing opportunites for additional properties, including Poby’s Adventures for publishing, plush, apparel, and accessories; Raising Maddie for shoes, publishing, toys, apparel, social expressions, and accessories; and Tchaboom for publishing, toys, apparel, social expressions, and accessories.
Summer 2015
The Licensing Book • 99
A Look Inside
by Deanna Atkins
O
ver the course of 24 days next year, the U.S. will be the centerpiece for the world’s oldest international football competition, Copa América. For the first time in the history of the tournament—the South America Football Confederation (CONMEBOL) and the Confederation of North, Central America, and Caribbean Association Football (CONCACAF)—have agreed to merge together to celebrate Copa América’s centennial. This special edition of the tournament will be held in the U.S., and will involve all of the countries of North, Central, and South America and the Caribbean, making it the biggest soccer celebration organized in the U.S. since the 1994 FIFA World Cup.
HOW IT WORKS
Copa América is one of three major international soccer tournaments in the world, alongside the FIFA World Cup and the Euro. Next year, 32 games will take place in 12 different cities around the U.S. between June 3 and 26. Out of the 16 teams, 14 are confirmed— USA, Mexico, Brazil, Bolivia, Argentina, Venezuela, Chile, Colombia, Uruguay, Peru, Costa Rica, Jamaica, Ecuador, and Paraguay—leaving just two remaining spots open. The format of Uruguayan fans cheer at Copa América 2011 competition is simi-
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lar to that of the World Cup: the games will start off as round-robin and advance on to a direct elimination phase. While there are fewer games in the Copa América tournament compared to the FIFA World Cup, Copa expects 2 million spectators to attend.
WHY AMERICA?
Choosing America to host an international event of this magnitude wasn’t a random decision. “The key to understanding the scope of Copa América is simple: It is about understanding what being a host country means for such international sporting events. The host country is typically where 90 percent of the business is made,” says Diego Barassi, vice president of licensing at WeMatch, the company holding the licensing rights for Copa América worldwide. “In 2014, Brazil was the host country for the FIFA World Cup. In 2016, it is the U.S. that will be the center of gravity of the event. It means a world of difference when it comes to retail and licensing opportunities.” One Entertainment, master licensee in charge of managing Copa América’s 2016 program in North America, has been involved in the business of soccer for many years, and currently works with teams such as FC Barcelona, Manchester United, the Brazillian International team, and more. “We have seen the evolution of the soccer market first-hand across multiple years, and that’s why we’re so hopeful about Copa América being organized here in the U.S.,” says David Gebel, managing partner of One Entertainment. “We think that Copa being the largest soccer event held in the U.S. in the past 20 years is a crowning achievement for soccer, and a way to recognize progression and to expose soccer to even more people because it’s going to be right here in the U.S.”
Summer 2015
U.S. SOCCER FANS ON THE RISE
In the U.S., soccer has grown exponentially in popularity during the past 20 years, which is directly related to two key factors: the growing U.S. Hispanic population and the rise of youth soccer. Right now, soccer is the No. 1 team sport for boys ages 6 to 12 and girls ages 6 to 17, with 17 million Americans playing the game. “Youth soccer over the past decade has really done an amazing job at introducing kids to the game, and as they grow up, they retain that love, passion, and interest in the game,” says Gebel. “This explains why we now have so many people watching the World Cup, so many people interested in soccer, and so many people knowing and buying product with [Lionel] Messi—and others—on it.” During the past 20 years, the U.S. population has increased from 260 million people to 319 million people, and the U.S. Hispanic population has more than doubled—growing from 26.6 million people to 54.1 million—making it the largest minority in the U.S. According to a 2012 ESPN poll, professional soccer is the No. 1 favorite team sport among Hispanic-Americans and the second favorite team sport for Americans ages 12 to 24. From the 1994 World Cup to Brazil’s 2014 World Cup, ESPN ratings for the tournament increased 63 percent, with more than 26.5 million viewers tuning in to the tournament’s Final between Germany and Argentina, according to Nielsen. The rise in the sport’s U.S. fandom is still a new trend, due to the demographic that it is most popular among young males and females. When creating a licensing program that will take advantage of this huge consumer target, One Entertainment has to go the extra mile to explain to the business community, which is not necessarily among that demographic, that soccer is a big deal.
PLAYER APPEAL
Lionel Messi, who plays on Argentina’s national soccer team, is one of the best players—if not, the best player—in the world, and is featured on a number of licensed products with a very successful U.S. sell-through. He is a best-selling athlete in the U.S.—not just for soccer, but for all sports. Fathead.com has Messi on its roster of athletes, and there are other licensing deals for apparel, posters, and more. “Messi’s continuous success with consumers in the U.S. represents the strength of the soccer market there,” says Gebel. “Many people in the business community don’t necessarily know Messi, and have no clue that in the U.S. he resonates so strongly with consumers.”
Summer 2015
Uruguay vs. Peru, Copa América 2011 semi-final
Aside from Lionel Messi, the tournament is home to many other iconic players (and fan favorites), including Neymar da Silva Santos Júnior (commonly known as Neymar), James Rodríguez, Luis Suárez, and many more.
LICENSING COPA AMÉRICA
Between Licensing Expo and the end of the year, Copa América looks to continue introducing potential licensees to the event, and will finalize deals with retailers that are already in the works. “Like all large international sporting events, Copa América has significantly increased its reach and built a strong image for soccer fans around the world over past decades,” says Barassi. This is why their licensing product plan currently in development is based on: passion (their event logo, the Copa América trophy, icons, and Copa’s mascot); national pride (for the participating teams); the host cities (stadiums and fixtures); and celebration (collaborating with brands in the music and entertainment world). The U.S. Hispanic segment is a strategic focus “for a lot of retailers who want to communicate and work with [that] community,” says Gebel, “Copa América is a great platform to do that.” With $1 trillion in purchasing power, U.S. Hispanic consumers are a key target in the licensing program. For Copa América, the sky is the limit. The brand expects to sign on 50 to 75 licensees across apparel, accessories, sporting goods, gift and novelty, toys and games, food and beverage, stationery, and housewares categories with a main launch to retail 90 days prior to the event. In terms of TV rights, Univision has the Spanish broadcast rights and the English rights are still to be determined. To find out which U.S. cities will host the tournament, and for more information about Copa América, visit www.conmebol.com/en/copa-america-2015-en ••••
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CORPORATE BRANDS Loudmouth Shows Its Colors
Loudmouth, a brand recognized for its bold and bright lifestyle apparel and accessories worldwide, has attracted several licensing partners that have placed its unique products in major retailers across the country. Loudmouth has been recognized across fashion, lifestyle, and home goods markets for items such as socks, belts, footwear, neckwear, caps, sunglasses, bedding, luggage, stationery, tech accessories, drinkware, pet products, and more. The brand has partners and distributors throughout Asia, Europe, Australia, and South Africa, and has also been active in acquiring licenses, including Hello Kitty, SpongeBob SquarePants, and more than 50 colleges and universities, the logos of which are now paired with the Loudmouth patterns. The Brand Liaison is the exclusive licensing agent for Loudmouth, and continues to build the Loudmouth brand across all major product categories. Loudmouth Luggage
Brandgenuity Signs Deals for Arm & Hammer, Hawaiian Tropic, and More
Brandgenuity has announced new licensing partnerships for the agency’s portfolio of brands. For Church & Dwight, the agency brokered a new agreement with Hopkins to extend the odor control of Arm & Hammer into a line of automotive air fresheners, while powerhouse licensee Hefty rolled national with Hefty Ultimate with Arm & Hammer odor-neutralizing premium waste bags. Six licensing agreements were recently signed for Hawaiian Topic in categories such as fragrance and cosmetics, swimwear, footwear, eyewear, and beach accessories. Sister brand Banana Boat jumped on board with four licensees in pool accessories, beach mats, totes, and footwear for the whole family, while Playtex, the third of the Energizer Personal Products brands represented by the agency, will launch a line of baby grooming, first aid, and toddler feeding products. Stonyfield, the organic yogurt maker, will extend into a variety of organic healthy snacks and food solutions. A full line of Pella-branded garage doors launched nationwide at Lowe’s and at garage door dealers nationwide. The Boppy Co. partnered with leading licensee Rashti & Rashti for a line of infant apparel, plush, and bedding; while licensee Global Design Concepts has created diaper bags in Boppy-inspired patterns. Winnebago Industries licensed 540 Brands to launch a line of apparel and Banana Boat headwear and will launch RV covers and a line of Park Model RVs. beach mat MGM Studios’ TV show, Vikings, has signed licensees across 12 categories. MGM will celebrate the 40th anniversary of the film Rocky next year and is adding key licensees and new collaborations to celebrate the iconic character. Gas Monkey Garage, featured on Discovery’s Fast ‘n Loud, has signed 10 licensees covering apparel and accessories, tool kits, die-cast, knives, lottery, social games, and more. Vikings T-shirt
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Summer 2015
CORPORATE BRANDS Anheuser-Busch Brings Bud to the Party
Anheuser-Busch, represented by The Licensing Co. (TLC), has a full lineup of beverage-based properties, including Budweiser, Bud Light, Bud Light Lime-A-Rita, Stella Artois, Shock Top, Busch, Natural Light, and Rolling Rock. The company looks to target both men and women ages 21 and up for its licensed line. In order to increase the presence of its brands and target the millennial age group, Anheuser-Busch has partnered with Calhoun Sportswear. The new licensee will bring Budweiser and Bud Light designs to the beach with branded boards shorts, tank tops, and swim suits. Calhoun will focus on beach and resort channels to grow the trademarks in this space. Anheuser-Busch has signed Chaby Inc. to enhance brand offerings during key marketing periods, including baseball and football seasons. Chaby will create designs for outdoor bags, seating, travel, and cooling accessories. Anheuser-Busch and TLC are working to expand existing partners into new territories as well as build on mancave, grilling, and tailgating product lines.
Chaby chair
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FCA Group Is on the Road to Licensing Expo
FCA Group, represented by The Licensing Co. (TLC), expands its Dodge Ram and Fiat/Abarth brands this year. Ram’s target consumer reflects the characteristics of Ram trucks. He or she is humble, noble, and hard working with a quiet confidence. Ram brand licensee, Snap-On Tools, will launch its new Guts Glory Ram tool box designs, which will be offered exclusively through authorized Snap-On franchisees in the U.S., Canada, the UK, Australia, Japan, Germany, South Africa, Belgium, the Netherlands, and Luxembourg. Grizzly Coolers will have a Ram edition cooler available in 15-, 20-, and 40-quart sizes, the largest of which has achieved the official Bear-Proof Certification. These coolers are made in the U.S. and retain ice for a long period of time. The Ram edition will be available at outdoor and sporting goods retailers. TLC has worked closely with the Ram brand to develop a long-term growth strategy for the U.S. licensing program. This year, TLC will focus on further extending the brand into the hunting and fishing categories. The Fiat and Abarth brands are for pasFiat T-shirt sionate individuals of all ages who are urban, curious, independent, and fun-loving. These consumers enjoy everyday experiences by finding happiness in the little things and moments, and choosing brands and possessions that are just right for them. Following a web test order at urbanoutfitters.com, Urban Outfitters has brought its line of Fiat and Abarth T-shirts from PalmerCash to retail. The retailer has ordered additional units of each style for online placement, and placed each shirt in Urban Outfitters stores. The shirts received social media pushes on both the Fiat and PalmerCash Facebook pages. TLC is focused on building out the Fiat and Abarth brand to encompass the full user lifestyle with men’s apparel and accessories; home décor and tabletop products; toys, games, and die-cast vehicles; and smartphone and laptop accessories and skins.
Summer 2015
Property Profile
As the licensing agency for Girl Scouts of the USA (GSUSA), The Wildflower Group will aim to create consumer experiences that tell the story of Girl Scouts and increase awareness of the Girl Scouts’ mission to build girls of courage, confidence, and character who make the world a better place. The popular Girl Scout Cookies is one segment of the licensing program, which has seen incredible success at retail. We will work to build upon these successes to develop a broader consumer products program that communicates the many other fun and unique experiences offered through Girl Scouting.”
“
—Michael Carlisle, principal, The Wildflower Group
Did You Know...? • Girl Scouts is one of the U.S.’s most recognized brands and has been the preeminent leadership organization for girls for more than 100 years.
• There are 2.8 million Girl Scouts and more than 50 million alumnae in the U.S. today.
• Girl Scouts sell more than 200 million boxes of
Girl Scout cookies each year while learning valuable business skills.
• The Girl Scout Cookie Program is the largest girlrun business in the world.
• Retail sales of licensed GSUSA products exceed $200 million a year.
• The GSUSA licensing program is an award-winning program and was named “Best Corporate Brand Program” at last year’s LIMA Licensing Excellence Awards.
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Summer 2015
Bigelow Tea Co.
The Bigelow Tea Co. offers a pair of specially developed, calorie-free teas inspired by Girl Scout Cookies. Girl Scouts Thin Mints-flavored herbal tea and Girl Scouts Caramel & Coconut-flavored black tea are available at retail for a limited time.
Frozen Treats
Under its Breyers brand, Unilever offers Girl Scout Cookies frozen varieties. The Breyers Blasts! Girl Scouts Thin Mints flavor is made with real pieces of Girl Scout Cookies Thin Mints and swirls of fudge in a mint-flavored base. The Breyers Blasts! Girl Scouts Samoas flavor features pieces of Girl Scout Cookies Samoas, coconut, and a rich fudge swirl in a coconut caramel-flavored base. Earlier this year, Good Humor introduced the Girl Scouts Thin Mints frozen treat. This frozen chocolate mint dessert bar includes cookie pieces covered in a dark, chocolatey coating.
Nestlé
Inspired by two of the most popular Girl Scout Cookies, the Nestlé Coffee-mate creamers in Thin Mints and Caramel & Coconut flavors make coffee breaks a treat for consumers. The Thin Mints creamer adds the minty, chocolatey essence of the Girl Scout Cookie to consumers’ coffee cups. The Caramel & Coconut creamer mixes creamy caramel with coconut for a delicious coffee experience. Nestlé launched Nesquik Limited Edition Girl Scouts Thin Mints and Girl Scouts Caramel Coconut flavors last year. These offerings combine low-fat chocolate milk with two of the most popular Girl Scout Cookie flavors to create a delicious, ready-todrink beverage. Nestlé Crunch Girl Scout candy bars debuted in the summer of 2012 in three Girl Scout Cookie-inspired flavors: Thin Mints, Caramel & Coconut, and Peanut Butter Crème. The seasonal chocolate confections returned in the summers of 2013 and 2014.
Wicked Cool Toys
Dolls and Plush
The keepsake Barbie doll from Mattel wears a Girl Scout-inspired outfit. The doll’s accessories include a Girl Scout sash with insignia and badges, a green Girl Scout beret, mini boxes of popular Girl Scout Cookies, and a bag imprinted with the five skills girls learn through the Girl Scout Cookie Program. Girl Scouts Friendship Dolls is a collection of soft dolls from Yottoy Productions Inc. that celebrates personal style, diversity, and friendship. Made with soft, high-quality materials, each doll wears the iconic Girl Scouts sash and comes with dozens of stickers of awards and insignia, so girls can personalize the doll’s sash to match their own achievements. Build-A-Bear Workshop rolled out its newest Girl Scout Cookies Bear this year. Fourth in the Girl Scouts series, the newest bear is a 15-inch creamy white plush with a fuschia cookie bow on its head. The bear can be personalized with a two-piece outfit consisting of a hot pink T-shirt with a Girl Scout Cookie heart design and a denim skirt. This newest offering joins the Girl Scout uniforms and accessories for the bear.
Summer 2015
Wicked Cool Toys introduces a delicious baking experience for kids with the first Girl Scouts Cookie Oven, which features mixes inspired by Girl Scout Cookies, such as Thin Mints and Trefoils. Along with a line of role-play items, including the Girl Scouts Onthe-Go Wagon and Cookie Stand, these products give girls a chance to express their creativity, learn new skills, and experience the fun of Girl Scouts all year long.
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CORPORATE BRANDS Licensing Management International Builds Surf Ratz Brand
Surf Ratz, represented by Licensing Management International, is an active lifestyle property for kids, created by Detonator Licensing Ltd. in the UK. Designed around the four rodent refugees from Rat Island, the Surf Ratz characters promote positive surf safety, sun protection, ocean awareness, and the joy of surfing. While the brand has been well received in the UK, Licensing Management International is focused on bringing it to the U.S. market, by launching a Surf Ratz website, an online game, and online comic strips. In addition, Great Number One has signed on for surf-themed T-shirts and apparel for the specialty channel, and Tom Morey International has signed on to create Surf Ratz-inspired surfboards. Licensing Management International is exploring licensing opportunities in surf apparel, accessories, hydration products, toys, puzzles, games, and more for the brand. Surf Ratz board shorts
Nitro Circus Delivers Action Sports
Nitro Circus delivers action sports and entertainment across platforms, and is entering the licensing arena with a new take on hard and soft goods for action sports enthusiasts and casual fans. The company will focus on leveraging its brand and IP, and will develop strategic licensing and retail partnerships worldwide across all platforms. Key product categories include home entertainment, video games, apps, toys, apparel, and publishing.
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Summer 2015
Hershey’s Brings Its Brands to Candy Lovers’ Kitchens
Hershey’s will showcase its key brands, including Hershey’s, Hershey’s Kisses, Hershey’s S’mores, Reese’s, Twizzlers, Jolly Rancher, and Ice Breakers. New licensees for Hershey’s brands include Focus Products Group for ice cream and milkshake makers and bakeware; Fitz and Floyd for tabletop items, including dinnerware sets, glassware, mugs, and ceramic oven-to-table items; Blue Rhino for Hershey’s S’mores barbecue accessories; Evriholder for impulse kitchen products, including lava cake makers, candy crushers, thermal cups, and more; and Concepts in Time for Hershey’s Kisses watches. Hershey’s Ice Cream Maker
Harris-Sachs LLC Stays True to Its Mission
After weathering the changing tides of the licensing industry for the past 24 years, the clear mission statement from day one has always remained the same: knowledge, experience, integrity. Harris-Sachs (H-S) is a full service consultancy founded by Steve Harris in 1991 to provide expertise in assisting manufacturers to successfully and profitably compete in the world of licensing. Jim Sachs joined Harris as his partner in 2004 to bring his experience in consumer product licensing to the growing business. In addition, Ken Harris provides account management to several of the firm’s major clients. This team has been able to deliver a total service ethic to many product categories they represent, such as apparel, plush, home Member Charter textiles, rugs, food, beach, fabric, candles, and drapery. Each client has different needs that must be addressed. H-S studies the individual business, and attends trade shows and markets to make sure all of their clients are able to acquire the best licenses for their companies. As the economy has struggled since 2008, the need to minimize risk has never been greater. Securing a powerful brand has become the No. Complete Licensing Services 1 goal of almost every manufacturer today. H-S has been able to bring Experience • Knowledge • Integrity winning brands to their clients and enabled them to gain retail space 159 Brandon Court when the old formulas no longer guarantee placement. A major part of Neshanic Station, NJ 08853 this strategy involves the ability to call upon the many contacts to which Tel (908) 369-5358 H-S has access. Personal relationships built over the long term are an Steve Harris important asset in a world of texts and emails from strangers to other Jim Sachs steveh@licenseadvisor.com strangers. As the company heads into the future, change will occur www.licenseadvisor.com Ken Harris faster than ever before. Those who are ready for it and, in fact, welcome it are the ones who will continue to be leaders. Harris-Sachs LLC stands as a proven leader in licensing consulting.
Harris - Sachs LLC
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Art Licensing
FOLLOW-THROUGH IS A MUST
OR THE SHOW IS A BUST
F
by J’net Smith, owner and president, All Art Licensing
or the licensing industry, the spring and summer trade show season is where many artists and creators hope to find their big breaks. It is an exciting time of year for property owners and businesses looking to make connections within the industry. Right now, many will attend and exhibit at the Licensing Expo in Las Vegas, the largest licensing trade show in the world. Here, the entire industry revolves around sales and strategic partnerships, which will be developed between the creators and brand managers with manufacturers, retailers, advertisers, the media, and other producers and distributors from around the world. Billions of dollars are spent. Everyone is trying to attract the attention of attendees and exhibitors, and vice versa. With such a tremendous visual barrage constantly battling for attention on the trade show floor and surrounding the entire event, it can be very easy to get lost in the details and lose sight of the original purpose for being there: getting great leads. Keep in mind that the time, money, and effort that has been put into either attending or exhibiting at the
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show will be completely wasted unless you are properly organized and follow through with the leads generated. Be aware: Internet research suggests that 50 to 80 percent of all sales leads are never followed up on. This is the most common and expensive mistake a businessperson can make. I recommend following just a few simple and effective planning methods to prepare for the next industry trade show, which will keep communication flowing, maximize follow-through and follow-up, and prevent this costly error.
Treat everyone with interest and respect.
A lead is someone who is ready and willing to engage in a conversation. Either they are someone that you could do business with directly, or they might be able to introduce you to someone who can. Some contacts will become leads, some leads will become prospects, and some prospects will then become clients. You never know to whom you are talking or what’s going to happen, so make sure you treat every lead as if he or she were your client.
Keep your ego out of the way!
This is as true in business as it is in everyday life, and there has never been a better time to follow the theory of “less is more.” Letting someone else talk and share their news and information is always the best way to gather data and allow relationships to grow. Being prepared to listen and ask lots of questions is the
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A HOT
What Kind of Leads Did You Generate?
B WARM
THE ABCS OF LEADS C COLD
Organize your leads before you leave the trade show. Follow up with hot ones first, warm second, and cool last.
best way to get them talking and interested in you.
Everyone is different.
Always try to look at your prospect from their perspective. What is it he or she needs? As you are listening, try to read between the lines. Pay attention to his or her attitude, tone, level of interest, and body language. Try not to get overconfident or self-conscious. Remember: You have hundreds of potential leads to talk with. If they are interested, great; if they are not, politely move on.
Collect the who, what, when, where, and why.
Whether at the show or after you return to your business, you need to gather as much specific information as you can to keep the conversation moving forward from lead to prospect to deal. The five Ws, as they are referred to in journalism, are a time-tested, focused, and valuable method for collecting the facts. I strongly suggest you use this technique. It is easy to remember and it provides you with a practical and profitable way
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to organize your thoughts and business as you progress with each encounter, meeting, and follow through during and after the show.
Organize and prioritize your leads.
Don’t wait until you get home to designate and separate your hot, warm, and cold leads; it is too easy to forget the details. Writing on business cards works, but attaching them to larger cards or in a notebook gives you more room for writing. Taking thorough notes during the conversation and after each encounter assures that you won’t miss a beat when it comes to that all-important follow-through.
Always follow up within 48 hours.
While many trade show attendees and exhibitors do not follow up at all, the remainder often follow up in a less than timely fashion. In general, research shows that responding within 48 hours of a prospect contacting you dramatically increases your closing rate. If you have so many leads that you cannot contact
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Art Licensing
them all within two days, then you should at least reach out to as many as possible within the week. Remember: This is the culmination of all your efforts. You must do this or nothing will happen.
USING THE FIVE W’S, HERE ARE LICENSING QUESTIONS TO KEEP IN MIND: WHO • • • • •
WHAT • • • • • • • • •
WHEN • •
Who is the person you just met? With whom should your future contact be? Who do they work with and know? Who are your competitors? Who is the decision-maker? What attracted them to your booth or a discussion with you? What do they do and/or make? What (of yours) are they interested in? What are their best-sellers (products/services/claim to fame)? What lines, artists, or properties sell best? What target audiences are most important to their business? What’s in it for them? What’s in it for you? What else are they looking for? What did they ask you to send? What will you send to them? When do they want you to contact them? When do they need your information?
WHERE • •
Where do you send everything (physical address/email, etc.)? Where are the territories they cover?
WHY
• Why would working together be a win-win? • Why do you want this deal? • Why would you NOT want this deal?
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Personalize your follow-up communication.
Always personalize your communication as much as possible, but it’s most important with your hot leads. This is where your customized presentation pays off the most. Make sure you send your prospects exactly what they requested and what you promised.
Turning a “no” into a referral.
There is no doubt that you are going to receive your fair share of “no”s at any trade event. Accept it. Don’t worry about it. Instead, use it to your advantage. Ask those who do like your art, brand, or property with whom they would recommend you speak. This means that even if you can’t do business with someone who admires your business, they might very well refer you to someone who can, if you ask.
Think of ways to keep in touch.
Whether through emails, phone calls, a newsletter, or other systems, develop a plan to continue to communicate with your prospects on a regular basis, hopefully moving them from leads to clients. Deals rarely close after one meeting, phone call, or trade show encounter. It takes continuous effort and persistence to shift each communication to the next level. Property owners, businesses, and artists must remember to keep following up until a deal is secured. Once that’s done, you must make sure to continue asking questions of your clients—and listening to the answers—to promote a long and healthy business relationship. Many people don’t want to “bother” their leads too much, but it’s important to remember that is why everyone is here. Continue to follow up and be pleasantly persistent. ••••
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.
July 16-17 • NYC • Pier Sixty Get your brand in front of the most influential consumers! The second annual Blogger Bash will join more than 450 top bloggers and press with the top companies in baby, fashion, toys, food, travel, and more. A new kind of conference, Blogger Bash lets brands and bloggers mingle in an exciting, fun party atmosphere, while making important, lasting business connections. It's time to make an impression.
Sponsorship packages available Contact Laurie Schacht at thetoyinsidermom@gmail.com or 212-575-4510 ext. 2320
Spotlight On
Dissero Brands Celebrates the 20th Anniversary of The Licensing Book chats with David Todd, CEO, Dissero Brands, about two decades of baby animals, lasting partnerships, and what’s next for the brand.
Rachael Hale designs are currently featured on hundreds of products, including giftware, books, clocks, bags, accessories, and more.
Tell us about some of the highlights the Rachael Hale brand has enjoyed during the past 20 years. It is truly remarkable to be able to look back at the last 20 years and still see the familiar faces of some of our long-standing licensees. It is so rewarding to have businesses across the world acknowledge our continued ability to provide adorable images and unique products that still enchant and inspire them. We currently have more than 130 licensees across 50 countries, and it is the wonderful partnerships we have developed with our agents and licensees that are a true highlight. Other highlights include the LIMA International Licensing Award and being ranked among the top 150 global licensors, and of course, the daily little highlights that patter across our office floor in the form of the next puppy, kitten, or baby animal who has arrived to have his or her photograph taken. How has your business changed over the years? Modern technologies have brought our licensees closer. The way we now photograph and make our images available to our licensees has given us the ability to communicate in real time and develop stronger working relationships. Additionally, Dissero Brands itself has
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grown, and we now have our own in-house design team to complement the other services that we offer our licensees. While change is important, what has stayed the same throughout the years is our passion for what we do in our drive for excellence.
What are your priorities at Las Vegas Licensing Expo? The Licensing Expo is very important to Dissero Brands, and we make it a priority to exhibit so that we may continue to build our international network of licensees and seek out opportunities that will extend the global distribution of our products. Being able to connect with licensing professionals at the Expo is a great way for us to keep up to date with current trends and the latest innovations, as well as to help contribute to the development of our future business strategies. What’s next for Dissero? Dissero Brands is a licensing company that prides itself on its ability to respond to the challenges of exploring new markets and the demands of emerging trends. Looking to the future, we want to remain adaptable and continue to develop strategies that reflect good business principles and enhance licensees’ experiences. In the immediate future, we are working to launch the Rachael Hale brand in new markets, including China, and to build on the success we have enjoyed for the last 20 years. We owe lots of thanks to all of the consumers and fans who have purchased a Rachael Hale product during the last two decades, because without them, we wouldn’t have enjoyed the success we have had to date. ••••
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accessories
A full range of Rachael Hale novelties and accessories, from Innovative Design, Little Brown Books, WPL, ACCO, GUT, and RPG are currently available. From stationery sets, calendars, and office accessories, to stickers, pins, and tins, consumers can experience all of their favorite designs in different ways. Whether its a normal day or a special celebration, there’s something for every Rachael Hale fan, including cards, boxes, and drink bottles.
backpacks
Rachael Hale bags and backpacks, from Fast Forward, Paso, Pengo, and Beniamim, are stylish and fun for kids to take to school or use during playtime. Available in a range of designs, including both puppies and kittens, the backpacks also come in a variety of sizes and styles, including drawstring bags. Each backpack fuses fun with function, featuring a durable and weatherproof design.
bedding
Character World’s line of Rachael Hale homewares and accessories includes a line of bedding designed for girls. Each twin-sized bed set includes a 225-thread count reversible comforter and two pillowcases. The comforter and pillowcases are made from a cotton-polyester blend and are machine washable for easy cleaning. Designs include both puppies and kittens in pink, blue, and purple themes.
additional licensing partners
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ART & PUBLISHING Penguin’s Mad Libs Fills in the Blanks Penguin Young Readers Group’s Mad Libs brand has been filling in the blanks since 1953, and these fun word games continue to find new ways to engage fans, from a new app to a variety of partnerships designed to expand the Mad Libs experience. Mad Libs sales have grown 74 percent since 2009, and the current app has been downloaded more than 7 million times. Last year, Penguin pioneered the Mad Libs pop-up shop at several major consumer shows, including Comic-Con International: San Diego, New York Comic Con, and the Los Angeles Time Festival of Books. The bright yellow booth offers a unique chance to engage with consumers as well as showcase partnerships. Last year’s booth partnered with Cartoon Network and had a wall dedicated to Adventure Time, as well as special Adventure Time-themed giveaways. At Comic-Con International: San Diego, Mad Libs was also a part of Cartoon Network’s scavenger hunt. Mad Libs continues to experiment with new ways to build brand awareness. At the LA Times Festival of Books, the Mad Libs pop-up show offered an interactive lounge for visitors to fill out an exclusive Mad Libs story and coloring sheet. The brand partnered with the Harlem Globetrotters, which uses custom Mad Libs as a fun way to engage its Facebook fans. This year, the pop-up show will be back at Comic-Con International: San Diego, as well as several other shows throughout the year. The Penguin team is always looking for new ways to help brands increase engagement and provide hilarity to their customers. Additionally, Penguin Young Readers has signed Intimo Pajamas for its Corduroy, Ladybug Girl, Llama Llama Red Pajama, Otis, and Mad Libs brands; Punchbowl Inc, for e-invitations for Corduroy, Ladybug Girl, Llama Llama, and Otis; Strottman QSR for Chick-fil-a promotions featuring Corduroy; Zazzle Inc. for print-on-demand for Ladybug Girl and Mad Libs; Target for Ladybug Girl and Bumblebee Boy clothing; and Genius Brands for a Llama Llama animated media tie-in program.
Kathy Davis Scatters Joy at Licensing Expo
Kathy Davis Studios brands will be showcased at Licensing Expo. Kathy Davis is positioned in the better/best specialty and department stores channel, Kathy Davis Scatter Joy is positioned in the mid-tier key accounts and independent specialty channel, and Portfolio by Kathy Davis Studios serves the mid-mass drug, grocery, and department store channels. During the past year, Kathy Davis signed licensees including NES Jewelry for Scatter Joy fashion jewelry; Nostalgia Home Fashions for signature bedding; R Squared/Zrike Brands for Scatter Joy giftable tabletop; Boulevard Candle, a division of Langley Empire Candle Co., for signature everyday candles; Fabric Traditions for Scatter Joy fabrics; and McCall’s for Scatter Joy apparel and accessory patterns. Key initiatives this year include licensee expansion in lifestyle categories, building on retail traction and collaborative license opportunities in core and new business, and dedicated market expansion in the wedding and baby categories.
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Summer 2015
Zebra + Unicorn = Zoonicorn
Zoonicorn LLC introduces a book and plush toy property that captures kids’ fascination with unicorns, and adds the zebra to it, creating a unique, magical creature called a Zoonicorn. Unicorns provoke power, calm, and joy, and the creators of Zoonicorn have used those same healing traits in fun stories for children. In the first book, Buffy the young Bison gets help from some very special creatures—Zoonicorns—that visit her in her dreams. In the story, Buffy is feeling anxious and restless in the zoo, so her mother sings her a magical lullaby that takes her to a special place. Her four new friends meet her there to play and run, and to help her feel calm and realize all the things she enjoys doing with family and friends. The Zoonicorn family includes Valeo, the leader of the herd, in blue; purple Promithea, who is fun and friendly; pink Aliel, who is fast and frenzied; and Ene, who is green, playful, and mischievous.
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ART & PUBLISHING Precious Moments in Licensing
Precious Moments Inc. (PMI), the licensing division of Precious Moments, will reintroduce the iconic brand, which has nearly 40 years of brand recognition, reinvigorated for today’s audience. Precious Moments has achieved $18 billion in worldwide sales, and enjoys 82 percent recognition among females 18 and older. The company says it is interested in expanding its program globally into new categories to round out its transitioning licensing program. PMI will introduce two infant/layette programs segmented for upscale and mass retailers. The upscale line is very pattern-driven rather than driven by characters, according to Licensing Director Patrice Paglia. The company is keying in on three areas: relevancy, innovation, and evergreen. “We have new creative and marketing initiatives being activated against the brand in order to keep it relevant to the millennial consumer and those who are older,” says Paglia. “We will be offering new creative/look books for infant/toddlers, children, and adult women, as well as pet product concepts for those precious pets.”
Benton Arts Adds Licensees
Benton Arts’ It’s Happy Bunny brand, from Striker Entertainment, welcomes Signorelli to its list of licensees. In other news, Kalan LP, Ranka Enterprises, and Zazzle have signed on with Benton Arts and Lisa Marks Associates to produce a variety of new products for So Totally True. For fans of Dog Butts and Love. And Stuff Like That. And Cats, the collection of cartoons from Jim Benton (and published by NBM) has been nominated for an Eisner award. Benton Arts is currently looking for interested licensees across all categories.
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iGeneration Shows Off Its Style
iGeneration is based on a copyrighted series of i-slogans and trademarked i-designs that bring today’s tech language to apparel, accessories, home goods, and tech toys. With fan favorites including iRock, iCandy, and iParty, the brand has grown, securing more than 20 licensees in Europe. Now, The Brand Liaison is expanding iGeneration in the U.S. with new licensing partners. Currently, iGeneration has licenses in the U.S. for tumblers, mugs, and pet products, and several more deals are in discussion.
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LIMA Update continued from page 20
other things • Establish international collaborations with overseas institutions for training and research in global brand licensing The first manifestation of the institute is the establishment of the branding and licensing minor program for LIU-Post undergraduate students. The minor, which begins with the upcoming fall semester, focuses on the critical skills needed to prepare young professionals for successful careers in branding and licensing, while giving students the opportunity to participate in internships with companies engaged in licensing, many of which are LIMA members. The program will prepare students with the skills needed to understand the brand owner ’s decisionmaking process when considering a brand licensing strategy as a marketing, communications, and revenue-generating tool. This will include how to license key brands to expand retail channels both domestically and internationally; how to leverage digital technologies, such as social media marketing, to promote branding and licensing programs; gaining an understanding of consumer behavior and how such behavior relates to brands; the legal issues involved in protecting, licensing, and enforcing rights in the brand; and more. The relationship with LIU-Post was fostered by LIMA Licensing Hall of Fame member Al Kahn, and a wide-ranging course specifically on licensing in the fall semester will be taught by Michael Stone, CEO of Beanstalk. Contact LIMA for more information about these educational programs. •••• 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.
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Inside Retail continued from page 40
delivery, and pick-up options that retailers offer will take hold, and which ones will dissipate. In my view, the number of options will continue to proliferate as long as convenience and choice are shopper priorities. Retailers are not in the business of curtailing choice, and many have learned the hard way that attempting to force shoppers into solutions is an invitation to competitors to take away their business. At the same time, as retailers get better at managing the interplay between online and in-store execution— and as they tighten up fulfillment timelines—they are turning their focus to optimizing product assortments accordingly. For example, high-margin, grab-and-go electronics accessories make sense in a small-format urban store, while low-margin, space-hogging televisions might be better placed online, a click away for home delivery or in-store pick-up. Many retailers have also set the lofty goal of ensuring that the majority of the items available in their endless online aisles are also available for pickup in their stores; for the most part, however, these capabilities are still in their early stages. Licensors and licensees should consider identifying where their brands and products are being placed—according to point No. 2 above—and how, or if, sales will be facilitated through other channels. For example, a collection that is placed as an online exclusive may be far more successful if it is also available for in-store pickup, and if shipping to customers’ homes is free of charge. While these developments are still in their infancy, they all signal a need to challenge many of the channel and category criteria that have traditionally defined retail and brand partnerships. Licensing stakeholders that assume a more active role in managing brand programs by asking new questions, updating partnership precedents, and engaging retailers in the early stages will enjoy greater adaptability and agility. •••• Carol Spieckerman is an internationally recognized expert and thought leader on retail and brand positioning. Her specialty is helping companies future-proof their retail strategies and position for high-volume success with retail’s new decision-makers and influencers. To learn more, visit newmarketbuilders.com and check out Spieckerman’s retail insights on Twitter @retailxpert.
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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
Change Your Brain:
I
Enhance Your Most Valuable Asset to Increase Productivity and Keep Your Employees Happy
by Michelle Alfandari, founder and CEO, MODA Licensing
n the licensing industry, as in other fields, people are our most valuable asset. They are the creative force that drives the work—the thinkers and the doers who leverage intellectual property. But while we don’t think twice about developing, leveraging, and investing in intangible assets, we often don’t place enough focus on enhancing the value we derive from the people who make it all happen. It would be much better for business if we changed our way of thinking.
How Are You Performing?
A recent Gallup poll showed that a staggering 70 percent of the American workforce is underperforming. Think about that number for a second. The same survey also found that the majority of American workers are emotionally disconnected from their jobs, and therefore less likely to be productive. Are you maximizing your creative potential? To find out, ask yourself these questions: • Do you like your job, but feel less creative than before you started there? • Are you tired, stressed, “super busy,” disengaged, frustrated, and/or overwhelmed? • Are you playing it safe rather than bringing a new brand to market? • Are your ideas falling on deaf ears? • Has it been a long time since you had your last “Aha!” moment? If you answered yes to one or more of these questions, you are not alone, and the repercussions are not only damaging to your personal health, well-being, and
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productivity, but also damaging to your business. Naysayers and leaders who are risk-averse or burnt out can derail the momentum that’s required to take a concept from idea to execution, leaving behind untapped revenue and under-leveraged brand awareness. This year, Gallup’s State of the American Manager report found that 82 percent of the time, companies have failed to choose the right managerial candidate. But while inspiring leaders are critical to a thriving workplace culture, they aren’t miracle workers. If your team members are showing up every day, but are mentally checked out (a.k.a., presenteeism), your efforts are only going to get you so far. Disengaged employees cost the U.S. economy as much as $550 billion each year. And what happens when those who are leading the charge are exhausted and disengaged themselves?
It’s Time for a Change
What can you do to go from “business as usual” to fostering an environment that sparks innovation, creativity, and productivity, and produces a greater return on investment (ROI)? The answer is: Embrace change, which should be the single most important constant in the way that you work. Change is good for your brain and your business. The title of Marshall Goldsmith’s book says it all: What Got You Here Won’t Get You There. Repeating past patterns won’t necessarily get you to the next stage. The motivation and strengths that once propelled you may have morphed into the habits, self-limiting beliefs, biases, and mindsets that stymie you today. Your brain is malleable, in a manner of speaking.
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Dr. Michael Merzenich, a neuroscientist, explains that the organ’s neuroplasticity means that our brains have the ability to change throughout our lives, for better or worse. In a 2004 TED talk, Dr. Merzenich said the brain “confers on us the ability to do things tomorrow that we can’t do today. Things today that we couldn’t do yesterday.” Research has found that certain activities may impact the brain more than others. When an activity is repeated, the brain tends to fall back on its existing neural pathways. Just as with repetitive physical exercises at the gym, we become fatigued, and deplete our potential for new ideas, creativity, and innovation. It’s important to keep our minds active, and to challenge our brains to work in new ways. Even a small break or switching to a different task is often enough to get our brains refocused and firing again.
How to Get Started
Change is hard. David Rock, the co-founder of the NeuroLeadership Institute and Summit, cites a study that only one in nine people who underwent heart surgery were able to change their lifestyle, and these people had the ultimate “motivation” possible—death. “Changing other people’s behavior is even harder,” says Rock in his book Your Brain at Work. The path of least resistance offers employees and employers safety and a sense of certainty—there’s a reason it’s called the “comfort zone”—but just as you’d develop a strategy to leverage a brand’s strengths, why wouldn’t you do the same to leverage your individual strengths and those of your team members? The good news is that even a few small changes in your day can make a world of difference, setting the stage for a greater sense of well-being and productivity. There are a myriad of changes that can deliver positive results, from giving employees more decision-making power to mandating vacations. The best place to start is the process we use with our clients: audit, assess, and adjust.
Audit
Determine how much time you allocate to various tasks, and how these tasks serve your goals and objectives. List productive work (including work that you would like to do, but that is not currently part of your
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job) in column “A,” and put unproductive tasks in column “B.” How much time are you spending on the work that intrinsically motivates you? And how many of your hours are occupied by stressful firefighting activities or unproductive, mind-numbing tasks, such as attending meetings or dealing with e-mails? Are you spending quality time playing to your strengths?
Assess
Look at the big picture, and determine if it’s feasible for you to spend more time doing the work you like (column “A”), and less on what you don’t (column “B”).When you are taking on new challenges and enjoying the way you spend your day, you will work smarter, not longer, which will free you up to do other activities that enhance your well-being.
“
Adjust
Once you’ve evaluated what you can change, make those positive adjustments. This doesn’t have to mean wholesale change in one go—it’s fine to take small, incremental steps. For example, research shows that incorporating short breaks throughout the day allows you to recharge, and will increase your productivity and creativity when you return to the original task. Your ultimate goal should be to promote a culture of well-being that encourages people—including you—to reach their highest level of satisfaction in all domains of their lives. When you achieve this goal, you will optimize creativity, innovation, and productivity within your company. In this scenario, everyone wins •••• Michelle Alfandari is a change agent and business consultant who works with individuals and companies to achieve optimal levels of performance, creativity, and innovation in the workplace and in their personal lives. She is also founder/CEO of MODA Licensing, a brand licensing and marketing agency, and founder/chief navigator of retimement (www.retimement.com).
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F I VE S TAGE S
I
of Trade Show Attendance
by C. Woodrow Browne, managing partner, Building Q have been attending trade shows for most of my career. If I bothered to count, I probably have attended more than 250 shows in almost every capacity. I’ve walked them, manned booths, set-up and closed, paid off tradesmen to get my booth open on time, and paid bonuses to security guards so our samples would not “disappear.” I’ve been the gofer and the boss. Maybe my strangest trade show episode is that while closing a booth at CES, I squeezed in a CNN interview with a fever. By the time I got home, I had a full-blown outbreak of the chicken-pox! With all this trade show experience, I have come to the realization that there are five stages we all go through as we work the trade show circuit. The June Licensing Expo is no different. Here is what to expect:
ANTICIPATION Many months out, we decide to attend the show and get excited about the new opportunities, seeing old friends, and making new contacts. From a distance, the travel, hotel, and “Las Vegas experience” is thrilling. We are jazzed to be going, and we
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carefully mark our calendars and make our travel arrangements. We have conversations with friends about the show and how we can get together while doing all the business we have to do to make the show work for our companies.
PREPARATION As the dates get closer, and the calendar moves toward the show, we start our preparation. Who do we need to see? Who do we want to see? What problems need to be solved? And—for licensees and licensors— what are the holes we need to fill in our program? We begin making calls and scheduling our time. We prep for the meetings, collect required samples, and write presentations. If there’s any “secret stuff,” we need to figure out how to present it at the show without exposing it to everyone.
DREAD The calendar is getting short and the excitement and anticipation from the earlier months morph into dread. We start to think, “Do I HAVE to go?” Like school kids whose homework is not as finished as we would like,
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we dread that our preparation is not enough. Horrifying thoughts of missing elements nag at our psyches. The big meeting we planned on suddenly becomes “tentative.” We find out that our bosses will be there/not be at that meeting and that is either good or not good. Every detail gets blown out of proportion. And then, with no surprise, the calendar flips to June and we are there!
WORK The show opens and 12 we are on all day and all night. Our first meeting is late and screws up the rest 3 9 of our schedules. Our assistants did not take into account that we had to walk from one 6 meeting to another or even allow for bathroom breaks. We suddenly begin to question all of our show logic. Walk-ins and walk-bys take up valuable time, and in the heat of the moment, we don’t have time to think about whether it is going well or whether it is just going. We have trouble getting cell service in the hall. That key meeting suddenly becomes a drink at a bar squeezed in right before dinner. We find ourselves presenting from our laps in a noisy bar and—although we know what we are doing—we feel like Pee Wee Herman about to crash. We go to bed exhausted and realize that we have only just finished day one. Yikes!
Tu W Th
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RELIEF The show is over, done—and we are still standing! The disasters that we imagined did not happen. The problems that did arise were overcome. The booth did not fall down, and—from our perspective anyway— most of the presentations seemed to go well. We have a wad of cards in our pockets for follow-ups, and there are at least two really good opportunities that will make the show worthwhile. As you pack your exhausted self into a cab to the airport, you also realize, happily, that you made more than a couple of new friends and—good for you—an old coworker who you really liked some years ago is now heading up a toy company or studio, so you keep his card in a very safe place. The good news from here is, as of this writing, I’m still somewhere between “Anticipation” and “Preparation.” I am still looking forward to heading to Las Vegas in June. I will see you all there! ••••
Building Q, established by Woody Browne in 1992, is headquartered in Durango, Colorado. The company specializes in building successful marketing programs for its clients by developing long-term licensing strategies that repeatedly match clients with winning licensed properties. During the last decade the firm has secured a broad spectrum of licenses—including household names such as Arm & Hammer, Craftsman, Coca-Cola, SpongeBob SquarePants, Sesame Street, Power Rangers, Scooby-Doo, and Star Wars—to provide a competitive edge for its clients. Building Q’s clients span a wide variety of industries, including Comic Images, Modern Gourmet, Product Works, and United Exchange Corp. For more information and a complete client list, visit www.buildingq.com or call (970) 385-7208.
The Licensing Book • 125
Co-Branding
Optimizing Licensed Property & Consumer Product Co-Brands by Ted Mininni, president, Design Force Inc.
T
here are all kinds of heroes, animated characters, and unique brands personified by human traits. Many have their origin in comic books, TV, movies, toy brands, and fantasy-rich virtual worlds. Although evergreen entertainment properties have proven staying power, hot Under Armour’s Marvel Alter Ego campaign new properties are emerging, thanks to online gaming and even YouTube videos. Brand owners see nothing but dollar signs when contemplating licensing their properties and cobranding in as many consumer product categories as they can. But is that a wise strategy? Not necessarily. Many brand owners have a sound strategy, opting for a good fit between consumer product brands and their properties, but even that can be fine-tuned to greater advantage.
The Marvel Approach Marvel’s licensing strategy for its superhero properties is revealing. Marvel focuses on choosing consumer brands and products that underscore the characteristics of its properties—and their nuances—to attain the ultimate compatibility. Hulk, for example, who is identified with superhuman strength, has been
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licensed to WordLock, which creates strong, quality bike locks; while Captain America is a natural fit for Under Armour because the property stands for high activity. The focus is on placing the right character with the right brand. Brian Siegel, director of franchise development, Marvel Licensing, has observed that Marvel superheroes exemplify different aspects of strength—not just brute muscle, but also mental agility and personal strength. Marvel is also interested in raising the visibility of its properties by licensing them in categories that are hot performers at retail. A 2013 partnership between Marvel and Under Armour tested the retail response of Iron Man Alter Ego Performance Wear, a successful program that Marvel now uses as a blueprint for its licensing strategy, carefully vetting licensing partners in many consumer product categories.
Why It makes a huge impact at retail When a well-developed licensed style guide is in place, coupled with a solid strategy for soliciting the right kinds of licensees, licensors can fully leverage the power of their properties. An understanding of the complexities of each property enables the design team to capitalize on the fully nuanced property’s visual and verbal assets within the style guide. Companies can then focus on optimizing co-branding opportunities. Nothing increases desirability in fans of a specific licensed brand more than unique, limitededition, lifestyle-driven products. Mountain Dew is a great example, with recent licensing forays that bring
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artists and athletes together with designers and consumer product brands for its GLX—Green Label Exclusives program. The high-energy beverage is a favorite among athletes and Xtremers, so why not get the input of cult favorite athletes and influencers? Why not use their ideas and artists’ interpretations of the Dew on skateboards, snowboards, and scooters? Why not feature the designs on edgy apparel that athletes and kids wear while participating in favorite high-octane sports? It takes the unique culture centered on these activities to develop the visual language necessary to really speak to its audience. Far from formulaic, this is a licensing program design for a unique brand. The visual impact is immediate for Mountain Dew fans—it really brings on a rush. The takeaway is that design experts can’t be thinking only in terms of leveraging cool new fonts, colors, and edgy designs. They should think about collaboration with artists and influencers who are immersed in pop culture and understand specific categories, so that they can expertly leverage the licensed property to the max. GLX collaborations have paired Mountain Dew with music artist Mac Miller and Diamond Supply Co., as well as with pro skateboarders and other brands, including Keelan Dadd and Dirty Ghetto Kids, Boo Johnson and Supra, and Theotis Beasley and HEX—all to create unique licensed consumer products that appeal to a narrow, but rabid, fan base. Each rollout is marketed by cool video content that taps into the hipness of these pop culture icons and the consumer products that they helped to design. This approach ensures success.
Packaged licensed consumer products and the cool quotient Unlike licensed apparel and skateboards, most consumer product categories necessitate packaging— important real estate with which to market the licensed property and its key nuances in a dominant manner. Matching licensed properties in an effective manner to consumer brands and individual products is terrific, and leveraging the most significant visual and verbal assets of each property on products and packaging is just as important. The ability to immediately draw in brand fans and make an instantaneous, emotional con-
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nection is priceless. Hasbro’s Playskool and Sesame Street toys for infants and toddlers are wonderfully co-branded and packaged; its Smartphone packaging entices and engages kids in an interactive manner. Verbal communication is limited, but effective, telling kids and parents that the pretend phone features fun lights, sound effects, and more than 100 silly phrases. It’s equipped with numbers and letters like a real phone and it rings and lights up when Elmo, Abby Cadabby, Ernie, or Cookie Monster calls. If the child doesn’t answer, the character leaves a voicemail. Kids can call each character by pressing one of the buttons. Fun appstyle touch buttons access letters, numbers, weather, and music. Elmo peaks out at the bottom of the package, which ensures a response from kids, who are invited to “Try me.” Parents can learn about all of these features simply from the packaging. The Playskool brand engages children with play while educating them. Sesame Street connects to children in a personal, emotive way: Kids see these characters as personal friends who likewise engage and teach them about numbers, letters, friendship, and socialization while having fun. Bringing the two brands together by leveraging their shared attributes with product and packaging illustrates how effective licensing programs can be. It’s time for licensors to fine tune strategies, licensing program design, and licensing partners to turn out cool, engaging consumer products and packaging that will make fans of the property light the social media sphere ablaze and clamor for more. Why settle for less? ••••
Ted Mininni is president of Design Force Inc., a package and licensing program design consultancy to the consumer product and entertainment industries. He can be reached at (856) 810-2277. Mininni blogs about package and licensing program design at www.designforceinc.com.
The Licensing Book • 127
Of Counsel
“Not Our Problem” What to Do When Things Go Wrongg
Licensing 101, Part 77 by James Kipling, Of Counsel This is the 77th article in a series devoted to the creation and documentation of the licensing relationship and the elements of a typical license agreement.
I
n Part 51 of this series (published January/February 2010), we saw that entertainment studios have contrasting ideas about the sums they must pay to outside participants for the production of their products compared with the payments that they believe they should receive from various sources for the use of those products. We likened this distinction to the “double think,” which George Orwell describes in his classic novel 1984, depicting the stark differences between the privileges of members of the ruling class of the dystopian state Oceania as indulged by the enigmatic authority Big Brother, contrasted with the dour existence of members of the proletariat. Readers of these articles who are experienced participants in the licensing of merchandise from entertainment companies will not be surprised that those companies can have similarly divergent views of the positions of the parties to a license agreement if things go wrong—particularly when those things involve third-party claims against the licensed prop-
128 • The Licensing Book
“
erty as it may be used under the agreement.
An Atypical Indemnity Provision
Case 1. It is rare that a licensor will take responsibility to any extent if problems arise out of a licensee’s use of a licensed property. However, at least one fair-minded licensor promises a realistic indemnification on behalf of its licensees in the event that claims arise, as follows: “Subject to the full performance by Licensee of its obligations under this Agreement, Company indemnifies Licensee and undertakes to defend Licensee against and hold Licensee harmless from all claims, suits, liabilities, losses, damages, penalties, costs, and expenses (including reasonable attorneys fees) which may be suffered by or obtained against Licensee arising solely out of the use by Licensee of the Licensed Property in strict accordance with this Agreement.” To those who do not pay attention to such provisions, this may seem like a restrictive scope of obligation that the licensor is accepting, but it ranks among the best of such provisions. In essence, if the licensee lives up to the agreement that it has entered, the licensor will take full responsibility in the event
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that approved use of the licensed property creates problems for the licensee and/or the licensor.
On the Contrary ...
Case 2. Another major licensor takes a different approach when it defines its indemnification obligation, as follows: “Subject to Licensee’s compliance with the terms of this Agreement, in the event that a claim is filed against Licensee in a court of competent jurisdiction alleging that the Licensed Property used within the scope of the license granted hereunder infringes any third party copyright or U.S. Trademark, Licensor shall defend Licensee against such claim and shall indemnify and hold harmless Licensee from and against actual damages finally awarded against Licensee in connection with such claim, provided that Licensee provides Licensor with (i) prompt written notice of such claim, then (ii) full cooperation and assistance in connection with the resolution of such claim and (iii) full control and authority to investigate, defend and settle such claim.” This provision seems generally similar to the provision of Case 1, which I praised. However, while the licensor in the above case defines the licensed property very broadly, this is the definition of the licensor in this second example: “The term ‘Licensed Property’ means the property or properties set forth in Schedule A (solely and to the extent depicted in any Style Guide(s) and specifically excluding the Excluded Elements).” When one locates and reviews the definition of “Excluded Elements” one finds that the definition includes no fewer than eight categories of exclusions, of which number (vii) excludes: “Elements of or related to a Licensed Property that are not owned or controlled by the Licensor, except to the extent specifically permitted otherwise in writing by the Licensor and then only to the extent that merchandising rights to such elements have been granted to the Licensor.” To say this another way, regardless of whether or
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not an element is contained within the pertinent style guide and its use is not only approved but also “specifically permitted … in writing by Licensor ... ” the licensor’s indemnification obligation is nevertheless void if its attorneys have failed to acquire the necessary merchandising rights that should have been the foundation of the rights granted to the licensee. Apparently not recognizing the irony in so doing, the same licensor defines the companion indemnification obligation of the licensee, in part, as follows: “Licensee shall indemnify, hold harmless and (at Licensor’s option) shall defend Licensor, its affiliates (and a list of others) from and against any and all liability, damage, cost and expense (including, without limitation, all attorneys fees) incurred … in connection with any third-party claim … arising from or related to any actual or alleged … (iii) infringement or misappropriation of any third-party intellectual property …” In other words, by virtue of the broad definition of “excluded elements,” the licensor not only escapes its rightful indemnification obligation, but goes further and shifts that very burden to the licensee.
Another Example
Case 3. Another major licensor “shares” the indemnity risk with its licensees, as paraphrased here: The licensee must defend and indemnify the licensor and its (related) “indemnified entities” and hold them harmless from any claim that includes “an allegation or claim that any Licensed Product or related Materials violates, infringes or misappropriates the rights of any third party. …” This is the applicable procedure regardless if the basis for claim is the licensed property contained in the licensed product or the related materials. Therefore, the position defined by the licensor is that the licensee has the primary responsibility to indemnify the licensor against claims of infringement even though the third-party claim would have nothing to do with the licensee’s products but for their inclusion of the licensed property.
Licensing Book • 129
“
In none of these cases is the licensor reluctant to require continued payment of full royalties for use of elements of a licensed property, even though it will disclaim responsibility for those very elements if challenged.”
This initial shifting of the burden to the licensee is coupled with a limitation upon the licensor’s ultimate responsibility that regardless of any other considerations the licensor is only responsible to indemnify if the third-party claim is focused on infringement of copyright rights, which as those familiar with such rights will recognize, is a narrow and technical standard that must be met essentially by proof that the licensor has actually copied the third-party’s protected material. Infringement of trademarks and other intellectual property rights arising out of approved use of the licensed property are subject to a blanket exclusion of any obligation. This is far from the very favorable provision first described above, and following the theme of the licensor in the situation described immediately above, shifts the burden of indemnification from the licensor whose intellectual property is the source of the problem to become the burden of the licensee who is only making use of the licensed property. In addition, the licensor adds another escape route if it can establish that, notwithstanding its own copyright infringement, the licensee should have known that the third-party claimant would take action. It is difficult to overstate the extent to which the “double think” analogy is appropriate in this case.
fringe or reasonably be claimed to infringe … the rights of a third-party.” If the licensor elects to invoke this right, the licensee, whose business is at best disrupted and at worst destroyed, at least under this license agreement, is given the beneficent remedy of being able to sell the affected licensed products to the licensor at its direct manufacturing cost plus shipping, provided that these costs are approved in advance by the licensor. If one assumes that the licensor may not approve the costs, where does that leave the licensee? Its right to market its licensed products has been revoked and the licensor has elected not to pay the associated costs, which are already far too low to remedy the actual harm to the licensee. And the source of the problem? In this case the licensor actually admits that the withdrawn licensed property is the culprit—but, hey, it was great while it lasted … right? Oh, and in none of these cases is the licensor reluctant to require continued payment of full royalties for use of elements of a licensed property, even though it will disclaim responsibility for those very elements if challenged.
Withdrawal of Rights
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.
As though licensors in the second and third case have not sufficiently protected themselves, it is not unusual that a licensor will grant itself the right to “withdraw from the scope of a License Agreement any … Licensed Products the sale or use of which ... would, in Licensor’s good faith judgment, in-
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Conclusion
If these situations don’t raise a few of the readers’ hackles, that may be the result of forlorn resignation of any hope for a reasonable deal when dealing with Big Brother and his cadre of studio acolytes. It doesn’t have to be that way, but too many recoil from the thought of challenging the terms of “our standard agreement.” ••••
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SKYLANDERS
™
GROSSED $3 BILLION
in franchise revenue at retail life-to-date1
CALL OF DUTY
#1 GAMING FRANCHISE in the U.S. for the sixth year in a row2
®
DESTINY
®
BIGGEST NEW video game franchise launch in history3 ®
®
GUITAR HERO #1 MUSIC GAME franchise of all time4 returns
© 2015 Activision Publishing, Inc. ACTIVISION, SKYLANDERS, SKYLANDERS SUPERCHARGERS, GUITAR HERO, CALL OF DUTY, CALL OF DUTY BLACK OPS, and stylized roman numeral III are trademarks of Activision Publishing, Inc. © 2015 Bungie, Inc. All rights reserved. Destiny, the Destiny Logo, Bungie and the Bungie Logo are among the trademarks of Bungie, Inc. Published and distributed by Activision. 1
According to the NPD Group, GFK Chart-track and Activision Blizzard internal estimates, including toys and accessories. 2Based on revenues as of January 1, 2015 3According to the NPD Group, GFK Chart-Track and Activision Blizzard internal estimates. 4 According to NPD Group and GFK Chart-Track life-to-date retail sales data for North America and EU