Summer 2018 by The Licensing Book

VOLUME 35, NUMBER 2

Features 24 Taking to the Internet The Toy Association’s Laurie Chartorynsky explores how licensees look to online influencers and content for new toy lines. 28 Changing with the Times Karen Raugust looks at why companies must remain flexible in order to succeed in a challenging landscape. 30 2018: Lessons Learned? Royalty Management Associates’ Tom Harrison, Doug Harrison, and Molly Shiver discuss whether or not lessons learned in licensing’s golden age have been forgotten and lost. 32 State of the Industry Q&A Licensors, consumer products manufacturers, and additional industry experts weigh in on the hottest topics currently surrounding the licensing industry.

Discovery’s Shark Week

38 Licensing Expo 2018 As the licensing industry descends on Las Vegas once again, The Licensing Book has your coverage of the latest deals and newest property introductions. 83 The Five Mistakes Marketers Can’t Stop Making Moosylvania Founder Norty Cohen advises what not to do while vying for consumers’ attention.

86 Royalty Rates: The Ultimate Value Context Analysts at CONSOR look at the dynamics of trademark royalty rates. 92 Tackling a Gender-Specific Market Axel Dammler explains why the licensing market is so gender specific, and what we can do to combat it.

Departments 12 Jackie’s Point 13 Stat Shot 16 Licensing News 18 LIMA Update 19 LIMA UK 22 Talking Social Media

42 Hot Shots: Epic Rights

64 Property Profile: Beyblade Burst Evolution

48 Property Profile: Shark Week

72 Spotlight: Activision

52 Hot Shots: Genius Brands

84 Outside the Box

58 Spotlight: NFL Players Association

90 Euromonitor

THE LICENSING BOOK, Summer 2018 — “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. © 2018 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 or e-mail bill@licensingbook.com.

JACKIE'S POINT WELCOME TO THE 35th ANNUAL Licensing Expo issue of The Licensing Book! In this issue, we are focusing on change. The world of licensing is constantly evolving. The hottest new properties are coming from unexpected places, and the pace at which trends ramp up and then—in some cases—rapidly fade away has sped up considerably, and some of the most effective marketing is coming from places like social media and YouTube. TV dollars are being redirected, retail is rapidly evolving, and, of course, this all affects the way we do business. In chatting with licensing executives for our State of the Industry Q&A (page 32), one of the challenges brought up most frequently is retail consolidation. We’ve seen a number of prominent retailers close their doors this year—perhaps most-notably Toys “R” Us— and that presents a number of new hurdles for the licensing industry. Check out Marty Brochstein’s take on page 18. That said, overall, change is good, isn’t it? Changing with the times keeps us young; it keeps us on our toes. We’re always chasing the next big property, which could be anything from a blockbuster movie franchise to a YouTube channel with millions of subscribers. For those who have a solid and steady brand, the key is to embrace change. Sesame Street is the perfect example of a beloved brand that is constantly evolving with the times, simultaneously pulling off the master move of remaining fresh for new generations while maintaining a retro appeal for older siblings, parents, and grandparents. Case in point, the brand recently partnered with Amazon’s Echo for a first-of-its-kind app for kids. If you have an Alexa and kids in your life, you’re well aware of their fascination with interacting with her, so this partnership was pure brilliance. Meanwhile, Sesame’s partnerships with designer apparel companies have grown-ups lining up for PUMA x Sesame Street kicks and Lauren Moshi vintage-inspired T-shirts.

12 • The Licensing Book

Here at Adventure Publishing, we’re big fans of growing and evolving, and while we’ve expanded our toy business tremendously over the past decade via the Toy Insider consumer program and our Sweet Suite and Holiday of Play press and influencer events, we’ve now made a flying leap on the licensing side. We’re so excited to present to you the Pop Insider! The Pop Insider is a brand new medium geared toward consumers, and we want you to be a part of it right from the start. The Pop Insider is primarily a digital medium dedicated to highlighting the latest news and new products from all your favorite fandoms. Editors-in-Chief Marissa DiBartolo and Ali Mierzejewski spotted an underserved niche that would allow our editorial team to spend more time watching, playing, and geeking out about their favorite films, TV/SVOD series, and video games, and ran with it! The result is nothing short of amazing. The Pop Insider will feature announcements and reviews of collectibles, licensed products, and entertainment content. You’ll be able to find all of this at thepopinsider.com, where you can also sign up for our weekly newsletter! We’re also very excited to introduce the very first What’s Poppin’ Lounge at Sweet Suite on July 11. This special section will introduce the press and digital influencers to the hottest new collectibles and pop culture products launching this holiday season. But wait, there’s more! You get to be one of the first to get a taste of the Pop Insider when you take this magazine you’re holding in your hands right now, and flip it over. Go ahead, do it now! ••••

Jackie Breyer is editor-in-chief and co-publisher of The Licensing Book, and editorial director at Adventure Publishing. She has been reporting on the toy and licensing industries for 16 years. Contact her at jbreyer@adventurepub.com.

Adventure Publishing Group Inc.® Vol. 35, No. 2, Summer 2018

Laurie Schacht President laurieschacht@aol.com Jonathan Samet Co-Publisher jsamet@adventurepub.com Jackie Breyer Co-Publisher/Editorial Director jbreyer@adventurepub.com Marissa DiBartolo Senior Editor mdibartolo@adventurepub.com Ali Mierzejewski Senior Editor amierzejewski@adventurepub.com Maddie Michalik Associate Editor mmichalik@adventurepub.com Stephanie Grassullo Assistant Editor sgrassullo@adventurepub.com Xandra Harbet Assistant Editor xharbet@adventurepub.com Jacqueline Cucco Editorial Assistant jcucco@adventurepub.com Kelly Corbett Editorial Assistant kcorbett@adventurepub.com Joe Ibraham Art Director jibraham@adventurepub.com Bill Reese Production Director breese@adventurepub.com Lori Rubin Comptroller lrubin@adventurepub.com Adventure Publishing Group, Inc.® 307 Seventh Ave., Suite 1601 New York, NY 10001 Telephone: (212) 575-4510; Fax: (212) 575-4521

Summer 2018

Licensed Book Sales in the U.S.

Industries and Licenses in the U.S.

For all books sold in the U.S. in 2017, licenses made up 12 percent of sales, reaching 85 million units, and 28 percent of all children’s books last year, with 63 million units sold.*

Around $17 billion was spent on kids’ licensed products in the U.S. during Q4 2017.

TOP BOOK LICENSES IN 2017

Dr. Seuss

James Patterson

Harry Potter

Diary of a Wimpy Kid

Star Wars

THE TOP 5 INDUSTRIES FOR KID LICENSED PRODUCTS**

TOP 5 LICENSES ACROSS ALL INDUSTRIES**

Based on dollar share

Based on unit share

Clothing

Paw Patrol

Toys, Games, & Puzzles

Disney Frozen

Party Supplies/Costumes

Mickey Mouse

Books

NFL

DVDs/Blu-ray/Digital

Star Wars

*Source: The NPD Group/NPD BookScan License Reporting Service. The new NPD BookScan License Reporting Service delivers offline weekly reporting on sales of all licensed books across all publishers in the BookScan point-of-scale (POS) system. Weekly reports include item-level sales for the top 100 geographic markets in the U.S. Source: The NPD Group / U.S. Kids License Tracker, Q4 2017 **Industries covered: apps and in-app purchases; arts and crafts; baby gear; books; clothing; consumer electronics/accessories; DVD/Blu-ray and digital (movies, television shows); fashion accessories; footwear; heath/beauty products; home products (excluding furniture); party supplies/costumes; school supplies; sporting goods; toys/puzzles; and video game hardware, software, and accessories.

Top-Selling Toy Properties in 2017 Among the Top 5 Largest Global Markets

FRANCE

GERMANY

CANADA

Star Wars

Playmobil

Star Wars

Paw Patrol

VTech Baby

Star Wars

Paw Patrol

Barbie

Total DC Comics

Star Wars

LEGO Technic

Nerf

Total DC Comics

VTech Baby

Cars the Movie

LEGO City

Pokémon

LEGO City

LEGO Star Wars

Total DC Comics

RANK

USA

1 2 3 4 5

Nerf

U.K.

Source: The NPD Group/Retail Tracking Service/January-December 2017

Summer 2018

The Licensing Book • 13

LICENSING NEWS Moose Toys Expands Shopkins and Pikmi Pops Licensing Programs in the U.S. Moose Toys introduces new licensed products for its Shopkins and Pikmi Pops brands. New Shopkins products include Shopkins PEZ candy dispensers; a footwear collection at Skechers stores this spring, followed by a limited-edition back-to-school collection; a Shopkins unicorn-themed fashion collection from Hybrid Apparel; and additional licensees for Shopkins unicorn-themed fashions for back to school. This summer, Pink Apron Group LLC will debut a touring Shopkins Treat Truck, where fans can delight in sweet treats and exclusive merchandise. Moose also partnered with online invitation company Punchbowl to launch a collection of Shopkins digital invitations for birthdays, holidays, and special occasions. Moose signed 14 licensees for Pikmi Pops in key categories, with some set to launch this summer. The Licensing Shop Inc. brokered the Pikmi Pops licensing agreements, including Scholastic for publishing; Goliath Games for board games and puzzles; Hybrid Apparel for T-shirts; Bentex Pikmi Pops Surprise! plush for T-shirts, outerwear, and swimwear; Fast Forward for bags and backpacks; NTD Apparel for T-shirts, outerwear, and sleepwear; AME for sleepwear; GBG Beauty for cosmetics and personal care; Jay Franco for bedding, room décor, and towels; Innovative Designs for stationery and crafts; Frankford Candy for confectionery and seasonal products; High Point Designs for hosiery; Trends International for posters and stationery; and Radz Candy for novelty candy dispensers.

Tom Brady Returns to Top Spot on NFLPA Top 50 Player Sales List Tom Brady started and ended the season in the No. 1 spot on the NFL Players Association (NFLPA) Top 50 Player Sales List. The list is based on total sales of officially licensed NFL player-identified merchandise. Brady also started and ended the year at the top of the list in 2016. Dallas Cowboys quarterback Dak Prescott finished at No. 2. Quarterbacks led the offensive positions, with 18 wide receivers accounting for 14 players on the list, while running backs have six, tight ends have four, and only one spot is filled by a lineman. On the defensive side, seven players made the year-end list. The Eagles are the most represented team, and have five players on the list. The NFLPA releases the Top 50 Player Sales List quarterly via its licensing and marketing arm, NFL Players Inc., and is based on the overall sales of all NFL player licensed products from online and traditional retail outlets. Licensed product categories include men’s, women’s, and youth game jerseys and T-shirts, wall decals, figurines, toys, photos, vinyl collectibles, bobbleheads, ugly sweaters, plush dolls, drinkware, socks, virtual goods, holiday ornaments, and novelties.

16 • The Licensing Book

Sesame Street Launches Fashion Collections in Asia Sesame Street will expand its fashion and lifestyle offerings with new apparel and accessory collections for Asia. The lines will feature collections from Lalabobo, B.Duck, Tyakasha, and :Chocolate. Lalabobo introduced the line earlier this year, and collections from additional partners will debut this month, including B. Duck for T-shirts, sweatshirts, and pants; Tyakasha for apparel, lunch boxes, umbrellas, and mobile phone cases; and :Chocolate for T-shirts, hoodies, and tote bags.

Summer 2018

The NPD Group Launches U.S. Kids License Tracker The NPD Group launched its U.S. Kids License Tracker, a service that spans 17 industries to provide a view of licensed purchases in the U.S. for kids ages 14 and under. U.S. Kids License Tracker explores how license spending and purchase behavior varies across the following industries: apps and in-app purchases; arts and crafts; baby gear; books; clothing; consumer electronics and accessories; DVD, Blu-ray, and digital (movies, TV shows); fashion accessories; footwear; heath and beauty products; home products (excluding furniture); party supplies and costumes; school supplies; sporting goods; toys and puzzles; and video game hardware, software, and accessories. Additional insights from the service include purchase methods and occasions, pricing, demographic profiles of both the buyers and children, and more. Monthly data will be aggregated and released on a quarterly basis. Fourth quarter 2017 data is now available.

Hasbro to Acquire Saban Brands’ Power Rangers and Other Entertainment Assets Hasbro Inc. and Saban Properties LLC signed a definitive agreement for Hasbro to purchase Saban’s Power Rangers and several other entertainment brands, including My Pet Monster, Popples, Julius Jr., Luna Petunia, Treehouse Detectives, and others, in a combination of cash and stock valued at $522 million. Hasbro previously paid Saban Brands $22.25 million pursuant to the Power Rangers master toy license agreement, announced in February, which was scheduled to begin in 2019. Those amounts are being credited against the purchase price. Under the terms of the agreement, Hasbro will pay an additional $229.75 million in cash and will issue $270 million worth of Hasbro common stock for the Power Rangers brand and several other entertainment brands. The agreement includes all related intellectual property, category rights, and content libraries owned by Saban Properties and its affiliates. The transaction is subject to a number of customary closing conditions, including obtaining required regulatory approvals, and is expected to close during the second quarter of this year. Created by Haim Saban and launched in 1993, Power Rangers is one of the longest-running kids’ live-action series in TV history, with nearly 900 episodes produced to date. The series, currently in its 25th season with Power Rangers Super Ninja Steel, and feature films, including 2017’s movie with Lionsgate, follows the adventures of a group of ordinary teens who morph into superheroes and save the world from evil. Saban’s Power Rangers currently airs in 150 markets around the world and is translated into numerous languages. The first set of products from Hasbro will be available next spring.

Jewel Branding & Licensing Acquires Rachael Hale Jewel Branding & Licensing purchased the Rachael Hale brand from New Zealand-based Dissero Brands. Rachael Hale is a leader in animal imagery across an expanding range of items, including apparel, giftware, home décor, stationery, back-to-school, and more. While earning sales in excess of $900 million, it has continued to grow its base of 75 licensees from more than 60 countries. Jewel has been the U.S. licensing agent for Rachel Hale for the past 10 years. Its creative team will continue to develop photography collections as well as leverage Rachael Hale’s archive of more than 3,000 images. Jewel will work closely with Rachael Hale’s sub-agents and licensees worldwide to ensure a smooth transition. Additionally, Jewel plans to further expand Rachael Hale into key categories including fashion, toys, personal care, and stationery.

Summer 2018

Jay@Play to Launch Interactive Zoonicorn Plush Jay@Play will launch Wish Me Zoonicorn plush at Licensing Expo in Las Vegas. The four soft Zoonicorns interact with kids as they play with them. Wish Me Zoonicorns will be available this fall, through a direct-to-consumer TV advertising campaign. Zoonicorn will also introduce new videos in its series of musical adventures, including three new music videos that were recently introduced. Zoonicorn

The Licensing Book • 17

LIMA UPDATE

THE NEED FOR A NEW LAUNCH PAD The Demise of Toys “R” Us Leaves the Industry Looking for a New Home for Untested Property Launches

by MARTY BROCHSTEIN, senior vice president of industry relations and information, LIMA BY THE TIME TOYS “R” US (TRU) SOUGHT bankruptcy court approval in mid-March “to begin the process of conducting an orderly wind-down of its U.S. business and liquidation of inventory in all 735 of the company’s U.S. stores,” many in the licensing industry were well into the process of trying to figure out how to conduct business without the retailer that was known within the toy and licensing industries as both able and willing to launch new properties and products. It’s this point that many in the licensing business seized upon as the news unfolded. “For the great brands that aren’t owned by Disney or Nickelodeon, the road began at Toys ‘R’ Us or ran through it,” says Licensing Street’s JJ Ahearn, whose firm represents children’s properties such as Daniel Tiger, Octonauts, and Dinosaur Train. “It will be interesting to see how that impacts the industry.” “If you’re a Paw Patrol, you will pick up the lost sales [somewhere else], but it’s emerging properties—brands seeking to test the waters and DTRs (direct-to-retail)”— that will face the biggest challenges, says The Joester Loria Group’s Debra Joester. One children’s producer credits TRU with giving properties a chance to breathe and develop a following. “You used to be able to have singles” in specialty that could “grow into doubles and triples.” That will be tougher now, she says. As one of the last toy specialty chains, TRU, which filed for Chapter 11 protection last September, has been a showcase for new and emerging brands. Two notable examples in recent years: It championed the U.S. launch of Shopkins, and launched the toy line for Daniel Tiger’s Neighborhood after the series aired in 2013. The challenge is this: How will up-and-coming brands and properties find a way to bring products to market? They need a savvy retailer that will seize the “launch pad” position as a marketing advantage and a point of differentiation to consumers. There’s no doubt that mass-market behemoths Walmart and Target will pick up a piece of the $11 billion in revenue that TRU generated, and Amazon and its marketplace will also take a big chunk. Channels such as dollar stores, supermarkets, drug stores, and specialists such as Barnes & Noble and Party City could be expected to broaden their assortments. But, that’s about toy volume, not property incubation. The question hanging over those in the licensing business is, who will step up to fill the latter role? While

18 • The Licensing Book

some point to the opportunity this leaves for smaller toy specialty stores, the volume they can generate isn’t large enough to support the development and manufacturing of a broad toy line. One licensing agent says that Target, which shows more of a willingness than Walmart to take a chance on a new property, such as with Beat Bugs last year, quickly moved from being “one of the prom queen’s court, to becoming the queen herself” among smaller properties hoping for the chance to make a big impact. Perhaps the answer could be in a name from the past. FAO Schwarz, which was bought by Three Sixty Group in 2015 from TRU, signed a long-term lease for a 19,000-square-foot flagship in New York City’s Rockefeller Center that is slated to open in September. It also announced that it will join with Hudson Group to open FAO Schwarz/FAO Schweetz toy and candy stores in airports in the U.S. beginning late next year. Last year, Three Sixty hired former FAO Schwarz president David Niggli as the retailer’s chief merchandising officer. It wouldn’t be difficult to imagine that his experience leading a retailer that was built in large part around unique and hard-to-find brands could lead toward building a multi-store chain that could be a launch pad for little-known properties seeking a foothold. Another licensing-specific question hanging over the bankruptcy is the status of TRU’s DTR license agreements. Though contracts commonly include language that would nullify an agreement if one of the parties goes bankrupt, it’s doubted by some attorneys whether that could be enforced, since the court could consider the license itself to be an asset. In any event, the expected demise of TRU will challenge up-and-coming brands and properties to find a way to bring products to market. It’s an opportunity that, hopefully, a savvy retailer will seize as a marketing advantage and a point of differentiation to consumers. •••• (Adapted from a LIMA Blog post; additional reporting by Mark Seavy)

Marty Brochstein joined Licensing Industry Merchandisers’ Association (LIMA) in 2008. Brochstein was a business journalist for more than 20 years, covering consumer products and retail industries. He spent five years as a 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.

Summer 2018

LIMA UK

THE DISRUPTIVE CIRCLE THE EFFECT OF DIGITAL GIANTS ON THE LICENSING INDUSTRY by KELVYN GARDNER, managing director, Licensing Industry Merchandisers’ Association (LIMA) UK THE LICENSING INDUSTRY MAY SEEM A FAR CRY from the current public outrage over Cambridge Analytica, but this farrago over yet another aspect of the digital world and its disruptive effect on all things hits close enough to home. In recent weeks we’ve seen the closure of several important UK retailers, and severe business warnings from others. In a world where even the John Lewis Group—a historic brick-and-mortar chain of department stores with a strong online presence of its own—is losing turnover and profits to the rise of the internet-only traders, the licensing industry must brace itself for stormy trading waters. The closure of Toys “R” Us is a huge loss, and the manufacturer is not alone in this trend. Maplin, a 200-strong consumer electronics chain of stores, recently announced its closure, and Mothercare, a preschool outlet and a supporter of licensed brands, faces another financial restructure. It may be a bit excessive to point the finger solely at online retail, but there’s no escaping the fact that the internet is a major contributor to the problems faced, and often not solved, by these companies and many others. I recently tuned in to a radio phone-in conversation about the joys of online businesses. One contributor proudly described how his own business supplies commercial vehicles with free delivery across the UK, but he has no premises or showroom. Good luck to that guy, who appears to be doing well, but—with the exception of orders from customers who know the exact vehicles that they need—how do prospective buyers inspect a vehicle or test-drive it? Most likely, they will do this at a conventional dealer, which pays for premises and the staff to service potential customers. This is the business that bares the costs of the potential purchaser. Ultimately, the online-only businessperson will get the order because his or her prices are lower due to the fact that there are no premises or demonstration staff. This effect of “disrupting” walks a fine line between beneficial and negative.

Summer 2018

Licensing wholeheartedly embraces the online retail community, but when the playing field on costs is not level, this shift in retail spending poses huge dangers for the entire future of consumer spending power. The Bank of England, Oxford University, and PwC have all done research into how technology will affect the future of employment, where the boundaries are most stretched by the digital giants—Amazon, Google, Apple, Microsoft, and others. There are thousands of occupations at risk of redundancy, and not just for manual labor. For example, a surgeon will be more likely to find himself or herself out of work than a nurse. A surgeon’s job can be filled by a precision artificial intelligence (AI)-driven robot, but a nurse—with its requirement for empathy—much less so. If digital giants continue to push the envelope and crush brick-and-mortar stores, there will eventually be no one with an income sufficient to shop anywhere, including online. It is a perfect “disruptive circle” that will eventually diminish business for online retailers. This may be a somewhat dystopian take, but looking at the worst outcome often encourages us to re-assess in order to avoid that result. Shopping is still the UK’s top preference as a leisure activity. This includes all the social aspects that come with visiting stores, including interactions and conversations, travel, food and beverages, and more. The next time online shopping appears to be the cheapest option, take a moment to stop and think about whether a local store needs and deserves that business. Ultimately, the future of licensing may depend on 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.

The Licensing Book • 19

TALKING SOCIAL MEDIA

Bringing Humor and Personality to Your Twitter Feed by KELLY CORBETT, editorial assistant WHEN IT COMES TO SOCIAL MEDIA PLATFORMS, Twitter is the hot spot where dissatisfied customers group to howl off complaints, questions, and comments. It’s a customer service hub, a digital bulletin board, and now an entertainment epicenter. Unlike other social media platforms, Twitter doesn’t boast high-quality images, engaging video, or the ability to view and post “stories.” Many see this online blue bird’s nest of chatter as a stream of words and updates. It wasn’t until last year that Twitter doubled its character limit from 140 to 280, so users could start to create longer forms of content. While being constantly active on Twitter as a brand is a must, posts should be thoughtfully crafted. A few years ago, a tweet that included an image, had hashtag-rich copy, and was tagged with the necessary handles was considered genius. But now, the most high-profile tweets aren’t complex or professional, they are simple and funny. Brands are developing their own unique voice for their Twitter accounts. They are hitting send on tweets that don’t necessarily announce a new product or update, but are quippy, humorous, and entertaining. The tweets gaining the most impressions on Twitter aren’t the ones peppered with hashtags and searchable key terms, but rather the ones that just make people laugh. Many brands have shifted from maintaining a pristine and professional social media presence to feeding the masses humor, sass, drama, and engaging content that doesn’t just ramble off announcements. The en vogue approach to not only maintain your current following, but also to cultivate a bigger audience, is hooking users on humor. To name a few exemplary comedic Twitter accounts, take a look at Wendy’s, Dewnny’s, Old Spice, and MoonPie. Notice anything that they’re doing that your

company isn’t?

While you don’t need to hire a comedian to write your tweets (sorry guys, I have a day job), you do need to channel your brand’s personality and dare to be bold. Let these tips help you tailor your tweets.

“The tweets gaining the most impressions on Twitter aren’t the ones peppered with hashtags and searchable key terms, but rather the ones that just make people laugh.”

22 • The Licensing Book

PERSONALITY > PROFESSIONALISM Up until a couple of months ago, Drake’s Cakes were not a part of my snack and dessert repertoire. Yet, ever since the baked goods company amped up its Twitter account and I started following @drakes, thoughts of Ring Dings and Coffee Cakes have been dancing in my head. The @drakes Twitter account, written through the witty voice of Webster, the company’s duck mascot, is absolutely hilarious.

While some may find this tweet to be lacking punctuation or grammatical perfection, think about it. It got retweeted and favorited, causing it to pop up in the feed of other users, who may or may not follow @drakes. Twit-

Summer 2018

ter users probably clicked on the account, recognized the brand, and whether or not they interacted with the tweet or account any further, the name Drakes Cakes, particularly Ring Dings, has now subconsciously been implanted into their heads. The next time they come in contact with the brand at the supermarket, they are likely to recognize and associate it with the funny Twitter account, which could ultimately lead to a purchase. Enough face time with the brand on social media could eventually turn users into loyal customers. LIMIT PRODUCT PROMOTION CONTENT To further help you cook up some quippy tweets, your goal with Twitter shouldn’t be to sell your product directly to users, but to sell your personality (aka your brand). Make sure your feed mixes in non-business-related tweets. Users will follow your account simply because they like what you’re saying. What does the MoonPie brand have to do with popcorn? Absolutely nothing. But its account is framed in the voice of a struggling millennial trying to navigate life one day at a time.

While this tweet is not professionally written or punctuated properly, it shows users that the folks behind @MoonPie have a sense of humor. Not every tweet needs to directly promote MoonPies, but instead sell the brand’s personality. It’s very relatable for members of the target audience, otherwise known as the smartphone-savvy millennials trying to “adult.” Brands have to remember that their customer base may not identify with a businesslike tweet. Tweets like MoonPie’s break down the barrier between company and consumer. From reading this tweet, I already want a MoonPie because I can tell that the people behind the brand have a quirky charisma, and that’s the type of brand I want to support. CURATE TIMELY TWEETS After you’ve pieced together your social media personality, you’re going to need some material to tweet about. Besides evergreen, brand-centric tweets, look at what’s trending on Twitter from time to time and see if that sparks any ideas on what to tweet. Is it a holiday? Is there a big awards show on that might be relevant to your target audience? Is it a lesser-known holiday that is typically only celebrated on social media, such as #NationalCatDay? Twitter users are much more likely

Summer 2018

to interact with a tweet if it’s timely and uses a hashtag that’s trending and searchable. Think: #SuperBowl, #FirstDayofSpring, #NationalCoffeeDay, and more. ENGAGE, ENGAGE, ENGAGE Aside from crafting engaging tweets, interact with your followers. Be on top of your “mentions” and engage with anyone who uses your company’s handle or product names in a tweet—this is who you’ll want to interact with. PRO TIP: When a user tags your company’s handle, it will appear in your Twitter mentions, but keywords won’t. Be sure to search words relevant to your brand—such as product names—in the search bar to receive all results. Also, don’t be afraid to search what users are saying about competitors. Besides replying to users, think of other ways to spice up your Twitter feed. Creating polls is a good way to do this. While you can use a poll to ask a customer service question, even making a poll just for fun is a great way to engage users. Voting is anonymous and users can’t see which answer is in the lead unless they vote. Lastly, consider hosting a Twitter party or chat. Use this as an opportunity to place your brand’s name in front of users’ faces and answer any questions they have. Use GIFs and emoijis, and interact with your partygoers in fun ways. Just set up a time and choose a specific searchable hashtag so users can tune in and join the fun. KEEP YOUR FEED CONSISTENT If your Twitter presently handles customer service, consider making a separate account just for fun. That way you can keep a consistent voice on your feed that doesn’t seesaw between appeasing customers and making them laugh. Customer service complaints can also be answered through direct messages to ensure a private conversation. At the end of the day, remember: You are what you tweet. A 10-word sentence your company posts on Twitter reflects its image. I really went over my 280 character limit. #UntilNextTime ••••

Kelly Corbett is an editorial assistant at Adventure Publishing Group, where she contributes to leading trade magazines The Toy Book and The Licensing Book. In addition to handling toy and licensing news and updates, she writes toy reviews and commentaries for the Toy Insider, which features the leading consumer holiday gift guide and latest breaking news in the toy industry. Follow her on Twitter @kcorbzz.

The Licensing Book • 23

TOY LICENSING

TAKING TO THE INTERNET: Licensees Look to Online Influencers and Content for New Toy Lines by LAURIE CHARTORYNSKY, communications specialist/content developer, The Toy Association THE WORLD OF TOY LICENSING CONTINUES TO evolve. Sure, many of this year’s family-friendly movies such as Solo: A Star Wars Story, Jurassic World: Fallen Kingdom, Incredibles 2, Ralph Breaks the Internet, How the Grinch Stole Christmas, Fantastic Beasts: The Crimes of Grindelwald, and Aquaman lend themselves to toy tie-ins. However, in addition to licensing in the film space, which has been traditionally appealing for decades, toy companies are now eyeing licensing opportunities across social and digital media. “Toys based on classics such as blockbuster movies, TV shows, and beloved children’s books are still very popular, but we are seeing an uptick in toys based on Netflix, YouTube, Amazon, social media influencers, and popular mobile games,” says Adrienne Appell, toy trends specialist at The Toy Association. “These playthings span from plush and collectibles to games and dolls and are available for all different ages and interests.” Many kids today engage with digital media and online influencers as much as—if not more than—they do with TV shows and movies. The important factor for licensing with these new forms of media is the emotional connection tied to the license, experts say. Companies that partner with online platforms and networks have the ability to deepen their

24 • The Licensing Book

connections with consumers by tapping into their niche interests, according to Tana Makmanee, director of research services at Trend Hunter Inc., a data research company that tracks consumer trends. “Younger consumers are seeking out authenticity in the products, services, and experiences they turn to,” says Makmanee. “These hyper-targeted platforms help promote individuality, as well as encourage people who share similar interests to come together.” THE ROLE OF INFLUENCERS IN TOY LICENSING Bonkers Toys established itself last year when it saw an opportunity with the popular slither.io mobile game, which was played more than 27 billion times in 2017. The company launched toys based on the popular game, including blind bags, collectible backpack clips, plush, squishies, and build-your-own slithers. To be successful with social media licensing, toy companies must stay on top of new trends, says Deborah Stallings Stumm, senior vice president of sales and marketing for Bonkers Toys. “It’s a whole new world and many traditional business and marketing principles no longer apply. You have to get ahead of the curve, or you are already behind.” At the 115th North American International Toy Fair, Bonkers Toys unveiled a new toy line in collaboration with YouTube sensation Ryan ToysReview. Ryan’s channel features videos of the 6 year old unboxing new toys and then playing with them. One of his most popular videos, “Huge Eggs Surprise Challenge,” received more than 1.2 billion views on YouTube. Bonkers Toys’ new line, Ryan’s World, will include blind bags, hanger plush, vehicles, and, of course, giant surprise eggs, available at retail this fall. “Kids are consuming entertainment in ways that are very different than in years past,” says Stallings Stumm. “YouTube and apps are at the forefront of how kids and teens are getting information and learning about what’s hot in their world.” When it comes to adding an influencer-based license, toy brands can benefit from the marketing and social media presence that is inherently part of the package, says Marty Brochstein, senior vice president of industry relations and information for the International

Summer 2018

Licensing Industry Merchandisers’ Association (LIMA). For instance, when a company has a license with an influencer, such as Ryan ToysReview, the company gains access to the fans that engage with that influencer on a regular basis, Brochstein notes. “If you take a Transformers license or a Barbie license, you’re tying into the fan base, but the social media aspect and the constant communication is sort of an adjunct to it. It’s not really part of it, whereas with Ryan it is.” Still, toymakers shouldn’t take an influencer’s reach at face value, Brochstein warns. He suggests that toy companies do their homework, including researching the influencer’s longevity, having that influencer provide as much performance data about their engagement as possible, and making sure that the influencer’s key demographic matches the company’s market. In addition, influencers need to understand the commitments that come along with being a representative of a toy brand. “A lot of these influencers are not sophisticated business people,” Brochstein adds. FROM YOUTUBE TO TOY SHELVES Funrise saw an opportunity in the popular preschool YouTube show, Sunny Bunnies. The company announced in February that it would create a toy line based on Sunny Bunnies, which garnered more than 260 million views in less than 18 months. In addition to YouTube, the show now airs on the Disney Channel and Disney Junior worldwide. The toy line, available this fall, will bring the charm and comedy of the show’s animated characters to life by including a range of interactive toys, such as light-up and bounce plush, talking plush, super-sized huggable plush, and a bunny blast cannon play set. Creating toy lines based on popular digital content is “a smart strategy, as we know kids consume content across multiple platforms and the competition to keep kids’ attention is fierce,” says Randy Shoemaker, senior vice president of global brand marketing at Funrise. “From a product perspective, Sunny Bunnies is incredibly toyetic, which is why Funrise signed on to be the exclusive toy partner. The lovable, charismatic characters, comedic elements, and wide range of themes make Sunny Bunnies a natural fit for toys.” BRINGING TOYS TO LIFE THROUGH CONTENT Rich content creation can bring a toy line to life, further extending the play value of the line. RedwoodVentures LLC recently announced that it appointed WildBrain, a leading YouTube network and studio for kids, to produce a short-form series featuring its Smooshy Mushy toys. “The Smooshy Mushy social platforms have a

Summer 2018

tremendously engaged, loyal, and eager fan base,” says Andy Wiseman, CEO of RedwoodVentures. “With WildBrain, we can deliver a new layer of content on YouTube that will tell the Smooshy Mushy story to millions, which will continue to fuel the brand’s momentum.” Earlier this year, Basic Fun! launched two new toy lines and corresponding web series on YouTube concurrently for kids to enjoy. Its Poopeez line invites viewers to follow the adventures of six hero characters as they navigate the world of Kerplopolis while exchanging potty puns and bathroom humor jokes. The toy line of collectible characters features blind capsules resembling rolls of toilet paper, a toilet launcher, and a porta pottythemed collectible case. The company’s CakePop Cuties series of short animations invites viewers to follow the Cuties through their adventures in a dessert-filled world, while the collectible toy line includes squishy characters sold in blind capsules resembling cake pops. “YouTube has provided us with a platform to create a narrative around our collectible toy lines, further enhancing the collector’s experience and allowing them to connect more deeply with our brands,” says Ashley Mady, head of brand development at Basic Fun! “With the ever-changing retail landscape, sales have made online entertainment a huge priority for our team.” Strong sales out of the gate for both Poopeez and CakePop Cuties “has further reinforced this strategy,” Mady says. •••• Laurie Chartorynsky has been a member of The Toy Association’s communications team since September 2016. At The Toy Association, she is responsible for the weekly e-newsletter Toy News Tuesday, and writes articles based on the latest trends in the toy industry for trade publications. Laurie has a Master’s degree in journalism from Northwestern University.

The Licensing Book • 25

CHANGING WITH THE TIMES Companies Representing IP Owners and Manufacturers Must Remain Flexible to Succeed in a Challenging Landscape by KAREN RAUGUST, founder, Raugust Communications AS THE LICENSING BUSINESS HAS EVOLVED IN profound ways over the years, licensing agencies have repositioned themselves to address this transformation. “The changes in the agency business are reflective of changes in the world and the licensing business generally,” says Adina Avery-Grossman, partner at agency Brandgenuity. “We have to pivot and adjust to meet those trends.” The movement of retail sales from brick-and-mortar locations to e-commerce is one of the steepest challenges, of course, along with the more intense competition that has resulted among properties, brands, and private labels as the amount of shelf space in traditional stores has narrowed. “Retail closures require creativity and nimble deal making,” explains one licensing agent who responded to a recent Raugust Communications survey about the state of the agency business. “It’s harder and harder to do bricks and mortar deals,” says Ilana Wilensky, vice president and partner at Jewel Branding & Licensing. “Online has an endless amount of shelf space, but unless you have a way of supporting the property you’re working with, it’s like finding a needle in a haystack.” Wilensky reports that her agency is working with

28 • The Licensing Book

its clients to set up brand pages on their e-commerce partners’ sites, including for Nikki Chu at Wayfair and Hang Ten at Bed, Bath & Beyond, to help overcome this problem. A handful of the other often-discussed challenges facing agencies and their licensor clients include the rise of collaborations and experiential initiatives; the blurring of the lines between promotion and licensing; the globalization of the business; the proliferation of niche properties; and an increase in the number of licensing agencies in the business, including both licensing specialists and divisions of companies that come from outside licensing. NEW WAYS OF OPERATING All of these challenges, and more, impact agents’ lives on a day-to-day basis. For one thing, it makes the decision of which clients to work with more critical, and many agencies are becoming more selective. Conversely, clients are thinking harder about which agencies to use. “Clients are requesting a trial period prior to committing long-term,” a survey respondent says. Agents have also had to learn new sets of skills. “Ten years ago there was a cruise here and a cruise there, and now there’s a tectonic shift to engage consumers and create opportunities for conversation and experiences,” Avery-Grossman says. “We need the expertise to find partners, create programs, negotiate new types of agreements, and execute against them.” Many agencies are adding services, such as trend forecasting, developing advertising and promotional campaigns, writing social media posts, implementing retail programs and collaborations, offering creative resources, and more. With these services—many of which are outside the scope of traditional agency responsibilities—agents are targeting both the clients their companies represent on an ongoing basis and other organizations that want those services specifically. “People are coming to us as a resource for a portfolio of content,” says Wilensky, noting that Jewel hired a creative director/designer who can help

Summer 2018

companies—including outside clients the agency does not represent traditionally—on product development, new designs, packaging, and other services. “That’s the challenge of the business,” she adds. “You have to be flexible to make it work.” A number of agencies are opening new offices internationally or forging alliances with other agencies to extend their global reach and meet client needs on a worldwide basis. “Clients want global solutions,” says Avery-Grossman, citing clients from BMW to Hawaiian Tropic as examples of those looking for global approaches. Her agency opened an office in London, headed by Terry Niadna, to address this need. CONSIDERING ALTERNATIVE BUSINESS MODELS Many of the trends noted here have resulted in smaller commissions for agencies, leading some of them to turn to new financial models and alternative business practices to recoup some of the lost revenue. For example, agencies are more often representing manufacturers to help them acquire licenses and brokering deals on a one-off basis, in addition to traditional long-term representation, offering project-based consultation services to property owners and manufacturers, and creating and licensing their own IP. These changes are leading to new compensation models as well. Rather than working based solely on a commission against advances, royalties, and minimum guarantees, a growing number of agents have been, over time, asking for a monthly retainer or flat fees for selected services rendered, in addition to or in lieu of a commission that is tied to successful deal-making. IMPACT ON MANUFACTURERS’ CONSULTANTS On the flip side of the coin, consultants who exclusively represent manufacturers for license acquisition are facing challenges as well. As with the agency business, some of these are related to broader trends in licensing. “The biggest challenge in working with manufacturers only is retail and retail consolidation,” says Rita Bonnell Illig, president of manufacturers’ consultancy RBI Associates. “Getting product on shelf is very difficult.” Part of the solution is to find opportunities within retail exclusives, as was the case with RBI’s candy client, The Treat Street brand by My Favorite Company, whose Peter Rabbit product was sold at Cost Plus World Market as part of an exclusive relationship put together by Sony, licensor of the Peter Rabbit movie. “That gave us an opportunity for a property that might not have gained much attention otherwise,” Bonnell Illig says. The challenging landscape also forces consultants to be more selective, both about the clients they represent and the property owners with which they work. “In the past you could take 10 to 12 licenses at a reasonable royalty and guarantee and take a chance on them. Not so much today,” says Bonnell Illig. “We have to know

Summer 2018

where the products will be placed to settle on royalties and guarantees that will work. We’re being very selective and very strategic in what we take, and we’re looking to the larger licensors to find products that can fit into their assortment of licensees.” FOCUSING ON THE FUNDAMENTALS Despite the challenges and changes, success in the agency and consulting businesses continues to hinge on the basics. “It’s really about creating unique and creative product that will stand out on shelf,” Bonnell Illig says. “I feel like I’m a part of my clients’ marketing team, with a focus on licensing. The business has changed significantly, but it’s still a very viable opportunity to be successful.” “It’s critical to have really great design and content,” adds Wilensky. “People are still buying; they’ve just changed their habits. You need a strong brand position and a strong point of view.” “We try to stick to the knitting of what we do,” Avery-Grossman says. “We believe in the business model of partnering with clients and sharing in both the risks and the rewards.” •••• Karen Raugust is the founder of Raugust Communications, a publisher of trend insights, how-to information, and research tailored to the licensing community. Her twice-weekly online publication, RaugustReports, offers observations on emerging licensing trends. Visit Raugust Communications at raugustcommunications.com/licensing.

The Licensing Book • 29

LESSONS LEARNED IN LICENSING’S GOLDEN AGE: FORGOTTEN & LOST? by TOM HARRISON, DOUG HARRISON, and MOLLY SHIVER, partners, Royalty Management Associates LICENSORS AND LICENSEES WITH A PROPER historical perspective understand licensing is a great tool and benefit for the cooperative efforts and incentives of trademark holders and licensees who enhance their businesses by using the related marks, names, and symbols. Licensing can and should be the most nimble and mutually beneficial business paradigm for sharing consumer-attractive names, marks, and symbols for fresh and new products, while rewarding both the licensor and licensees in their utilization. However, to accomplish this, the possibility must be matched by and through related entrepreneurial, not bureaucratic, realities of thought and operation. Licensors must establish and maintain best practices so the “goose,” on which both parties rely, remains healthy. GOLDEN AGE OF LICENSING The 1980s and 1990s were undeniably a period of great growth in the licensing industry—both the breadth and depth of licensing increased; licensing relationships multiplied; and royalty rates, licensed sales, and earned royalties rose significantly. Contrast this with the current, far more limited growth, and we have to ask why the recent decline? The International Licensing Industry Merchandisers’ Association (LIMA) released its annual global licensing industry survey, which showed 4.4 percent growth from last year. A 4.4 percent projected growth is anything but exciting or explosive. BACK TO THE FUTURE? From our vantage point of having worked with 40 or so licensor clients—and thousands of licensees—during the past 40 years, we witnessed this waning trend and leveling licensing industry trajectory, and see some apparent causes and related solutions for recovering licensing’s prior growth trend. The needs, benefits, and opportunities of licensing have never been larger as businesses of all sizes look elsewhere for interesting and attractive “marks, names, and symbols” with which they can partner to produce and sell compelling (customer-alluring) goods (using marks with established and proven sales records). And as more creative talent is self-employed outside of large organizations, the potential for licensing is greater than

30 • The Licensing Book

ever—and certainly far superior than the recent stagnating growth would imply. Instead there has been a regression and decline in the industry, a trend that appears to be intensifying with time. Some of the key reasons include: • What was a very entrepreneurial environment in the 1980s and 1990s has become increasingly bureaucratic (the normal hardening of the entrepreneurial “arteries” that will occur without great thought and effort given to remaining nimble and quick): That which was mutually cooperative in nature is now too often contentious with many smaller entry-level participants no longer welcomed or cultivated. Just as, on a macro basis, small businesses are the key driver in U.S. job growth, smaller licensees cannot be ignored, stifled, or eliminated for any licensing organization expecting to grow down the line. There is a necessary balance of large, medium, and small licensees in any healthy licensing organization—a short-range view of “maximizing income” will invariably neglect cultivating the smaller licensees, begin squeezing the mid-sized, and move toward more and more exclusive agreements with larger licensees, all of which are long-term, short-sighted elements and signs of decline, not growth. • What was viewed as a (to the largest extent) licensee-driven effort (licensors seeking and supporting great licensees) in the entrepreneurial past has been centralized into a top-down, often and increasingly heavy-handed and over-managed, licensor effort. The licensor resources have dramatically increased with the effect of often bureaucratizing and limiting versus encouraging and supporting licensee creativity and innovation. • License negotiating periods are lengthened and complicated as licensors move toward less standard, more customized, license agreement terms versus the previously common standard terms offered across the board to all licensees. As there are increasing “pockets” of bureaucracy in much of current licensing, this is manifested in less valuing of and respect for licensees on the part of many licensors.

Summer 2018

RETURNING TO THE PATH OF GREATER GROWTH First and foremost, from an overall standpoint, greater success will be based on the historical view that licensing, done best, is licensee-driven with licensors focused on: • Protecting the licensed brand name, mark, and symbols—an obvious benefit to the licensor while important for licensees as well. • Supporting licensees through efficient and timely product and design approvals, establishing a level and fair playing field for all licensees with the key basic requirements being closely and professionally monitored (that all licensees are reporting/paying on time as well as complying with other critical, nonfinancial, requirements). • Noting and not renewing (or terminating in egregious cases) the few “bad apple” poor licensees. The rule of thumb has been that 10 percent of licensees are likely so disorganized and otherwise non-compliant that they are best, for the licensor and fellow licensees, eliminated. Licensors should be helpful to licensees, but these bottom licensees are beyond reasonable licensor help, causing problems for both the licensor and fellow licensees. • Maintaining an up-to-date license agreement boilerplate that correctly reflects the licensor’s expectations, consistent—wherever possible—with current licensing industry paradigms and protocols. As licensors become more bureaucratic, they tend to fear making changes to their license agreement boilerplate (if not effectively eliminating the boilerplate, with all its benefits, entirely), so that both the licensor and licensees refer to it less and less, leading to greater confusion and potential conflict. Licensor personnel should understand their license agreements “backward and forward.” As surprising as it sounds, licensors, in their training of new employees, often do not make this a key point as it most certainly should be. Related to this, licensor requirements can become onerous and wasteful when licensors impose reporting requirements that change frequently and require far more detailed reporting—simply because it is increasingly technologically possible—than could ever be reasonably used. Just because it is possible does not make it easy for licensees. Licensor requirements of licensees should be appropriate and limited to that which is necessary. • Heading off most major new licensee issues early by sending, with new agreements, “side” narratives or, better yet, a private or unlisted YouTube video outlining the most significant and common operating and reporting issues—licensee personnel will

Summer 2018

more likely listen to and understand this than they will a license agreement—one of the major benefits being to highlight key provisions, expectations, and common errors—most especially the net sales definition. • Having a robust audit program that is both educational and fully cooperative in its mission. In an environment of self-reporting, this is important not only for licensors, but also for licensees so they understand fellow licensees are properly reporting and following key guidelines normally only highlighted in audits. Licensors should not, as is so often now the case, have a priority to “find enough” so the licensee must pay the audit fee. That said, licensees should understand there are ramifications to poor reporting so that the audit fee reimbursement (and interest assessed) should be imposed about 15 percent of the time—any higher level indicates likely systemic poor licensee initial training that is best addressed and resolved as outlined immediately above. Licensee compliance is much better in an environment in which they understand a licensor’s commitment to the rule of thumb that if a company is large enough to license, they are large enough to be audited on a periodic basis, with licensees understanding it is not a matter of if they will be audited, but simply when (and the first audit should be completed within the first 12 to 18 months after initial reporting). Nobody wants to be audited, but licensees want and expect fellow licensees to be audited. And when licensees find licensors use auditors that are professional, treat licensees with respect, valuing their time and only requesting that which is necessary to complete reasonable testing—and are not focused on “how much they can recover,” but in ensuring a level playing field is being maintained for all licensees—they are almost always highly cooperative in the process. • Developing the most important audit program of all by having an in-house royalty report processing system in-place for quality and timely processing of royalty reports (and timely administration of advances and minimum guarantee shortfalls). The above are a few—hopefully catalytic—ideas important to ensure a licensor is building an ever-improving business model. In short, all efforts should be focused on making better licensees through and by being an increasingly better licensor. •••• Tom Harrison, Doug Harrison, and Molly Shiver are partners at Royalty Management Associates. The company’s mission is to provide the most professional and cost-effective licensee audits available to licensors. royaltymanagementassociates.com

The Licensing Book • 31

JOAN GRASSO

Senior Vice President Licensing, North America, Family & Brands

Entertainment One

How do you maintain loyalty with consumers who are influenced by a wealth of touch points? We continue to develop our marketing and digital strategies to ensure we are reaching our target audience wherever they are looking for our brands. We have done this through our ongoing social media efforts on Facebook, Twitter, and Instagram; building new content to engage with our fans and their parents on our websites and apps; having a presence on AVOD platforms; and continuing to build out our experiential programs for both brands via live shows, meet-and-greet events, and other new partnerships. From retail shelves to online sites to mobile apps as well as in their local neighborhood, we want to engage with our consumers in ways that are most meaningful to them. How do you work with licensees to create unique products that are specific to each brand? This requires collaboration from quite a few groups within eOne. Our brand teams work with production to provide input on the content, themes, locations, etc., that would make sense for our consumer product programs. Then, we work closely with our marketing and product development teams to create artwork and marketing opportunities for our licensees that tie to that content, ensuring that these assets remain organic to our brands. Having proprietary materials that we can provide to our licensees is critical to creating unique designs and products to create a point of differentiation for our properties at retail. The licensing team is also always on the lookout for trends and new innovations in product that can be adapted in a meaningful way. We then bring these to our licensees for inclusion in their product ranges to continue to set Peppa Pig and PJ Masks apart from other competitive brands. This strategy has been very successful for us. How has the changing retail landscape affected the way you manage your licensing partnerships? Our retail efforts will continue to be a major focus for us as the landscape shrinks and changes over time. Licensors need to continue to be on top of any conversation about particular retailers or channels, so we can anticipate any issues and have a plan to react quickly. eOne is building out our internal retail team here in the U.S. so we can talk to buyers on a more regular basis, address their needs more quickly, and partner on more promotional opportunities moving forward. In addition, we continue to look for new retail opportunities in all channels either by engaging with new retailers or expanding in existing channels. We’ll continue to stay on top of the changing retail landscape to preserve the success and growth of our brands.

32 • The Licensing Book

SCOTT CHAMBERS

Senior Vice President and General Manager, North America Media and Licensing

Sesame Workshop

How important is it to appeal to millennial parents? Millennial parents are a critical demographic. Many of them grew up watching Sesame Street, and are now sharing that experience with their children. In terms of viewing and purchasing power, millennials strongly influence consumption in their households and, more widely, set trends in various industries. One way we’ve attracted and maintained a millennial audience is by leveraging the platforms that are integral in their lives—they are digital natives. Today, Sesame Street has 24 million fans and followers on our social media channels; and on Snapchat alone, a steady stream of Sesame Street filters in 2017 delivered more than 1.5 billion impressions. Early this year, Bert even made a guest appearance on HQ Trivia, another trendy app, garnering 1 million live players. Viewing patterns are shifting and we are shifting with them. We reach young parents via digital video platforms, where our audience is often comprised of both preschoolers and co-viewing adults. Millennials make up 77 percent of our adult viewers on HBO Digital, 75 percent on Hulu, and 75 percent on YouTube—where our subscriber base grew by 34 percent in 2017 to 3.6 million YouTube subscribers, becoming our largest single audience platform for millennial parents and overall. For HBO On Demand, Sesame Street happens to be the second most viewed series after Game of Thrones. Where do you anticipate growth in licensing over the next two to three years? As we gear up for Sesame Street’s 50th anniversary next year, we anticipate growth in all segments, but perhaps more acutely in our adult/fan business. We’ve already partnered with some truly innovative creators in the fashion and lifestyle space to reach fans of all ages in surprising ways, with even more collaborations to come. Each of our partners brings an expertise in design and merchandising as they interpret our classic characters in their own unique styles. You’ll see apparel from Bioworld, Mad Engine, Zara, Lauren Moshi, PUMA, and Drake General Store. Beyond apparel, Sesame Street is collaborating with top lifestyle companies, such as Globe Brand and Crate & Barrel Kids to create distinctive products. Location-based entertainment will also drive brand engagement and licensing growth over the next four years; the magic of theme parks gives families a powerful way to experience Sesame Street. This spring, everyone’s favorite grouch will trade in his trash can for a taxi when Sesame Place debuts its coaster: Oscar’s Wacky Taxi. We’ve also announced the extension of our 38-year partnership with SeaWorld Entertainment for the development of an additional Sesame Place theme park.

Summer 2018

STATE OF THE INDUSTRY

DAVID HENDERSON

Senior Vice President, Consumer Products North America

Hasbro

How has the process for development of a children’s entertainment property evolved in recent years? The children’s entertainment landscape is rapidly evolving and incredibly diverse as families consume more content than ever in new ways. Hasbro has rapidly built our expansive, multi-screen storytelling capabilities, globally reaching kids and families everywhere they consume content in many forms and formats, across films, TV, and new media. Our one-of-a-kind, omni-screen storytelling strategy that utilizes our amazing brands and characters to drive innovation in entertainment is an important strategic differentiator for Hasbro. While engagement with our traditional TV shows, such as My Little Pony: Friendship Is Magic, has never been stronger, 2017 was our biggest year ever for consumer engagement with our digital storytelling, as we created original digital videos and social posts that drove more than 1 billion views of our content on YouTube, and more than 1 billion minutes watched, including My Little Pony: Equestria Girls, Hanazuki Full of Treasures, and more. How has the changing retail landscape affected the way you manage your licensing partnerships? Retail is undergoing dramatic shifts driven by the ubiquity of digital commerce, the trend toward small physical stores, the shifting balance of power, consolidation and closures, and the constantly changing structure of retail. Over the past six years, Hasbro has grown our consumer products revenue by 85 percent, with a relentless focus on brands, including Nerf, Transformers, My Little Pony, Hasbro Gaming (including Monopoly), and our newest franchise brand Baby Alive. However, we’re just in the early stages of fully realizing our potential in consumer products. With this success—combined with the ever-changing consumer and retail landscape—we must continue to adapt to lead in the years ahead. We are investing to understand all shoppers across all channels to ensure our products can be found everywhere consumers shop. We are also continuing to strengthen our partnerships with leading retailers around the world, turning content into commerce. This year we are charting a new path for Hasbro Consumer Products in North America to ignite the power of our brands. We will now move from a category-first approach to a brand-first approach, which more closely aligns with our Brand Blueprint as Hasbro’s global brands execute at retail as one voice. With a strong focus on speed to market, agility to build trend-based programs, and the strength of our One Voice retail program solutions, we can empower a stronger presence at retail and unlock opportunities in emerging markets and new consumer segments and experiences. E-commerce represents one of our largest growth drivers going forward. E-commerce lives at the intersection of storytelling and innovation, which is our sweet spot. We are investing in people, marketing, data, and technology to create world-class e-commerce experiences. Our success in e-commerce is the result of our commitment to storytelling and innovation in a digital environment.

Summer 2018

BRIAN MANN

Vice President, Head of Licensing & New Business Development

Loot Crate

How do you work with licensors to create unique products that are specific to each brand? Loot Crate works closely with licensors to bring a deeply fan-centric perspective to the development process, putting the focus on product interpretations that feel in-universe, singularly considered, and most importantly, ones that tap into the brand’s emotional resonance with our community. When we get it right, a product can become an artifact that is massively shared, which both widens and deepens a brand’s connection with its fans and beyond. With more choices than ever before, how do you choose which brands to work with? We are fortunate to work directly with nearly every leading licensor across entertainment, gaming, anime, and sports. Loot Crate has a proprietary curation process executed by a worldclass curation team that is comprised of top creatives from the toy, fashion, and entertainment spaces who spend much of their time understanding what is driving the pop culture zeitgeist each month, interpreting it thematically, and then selecting brands that best express that theme. Their creative vision is balanced by survey data we receive from our community that we’ve codified into a rating system called PVI (perceived value index), which places a numerical value on the strength/desirability of hundreds of IPs within our ecosystem. We tend to prioritize brands that most strongly resonate with our community, brands with eventized windows that match our themes whenever possible, and with partners who are highly supportive from a marketing perspective, so that we are working together to deliver not only a great product, but to create a shareable, communal experience that maximizes reach and impact on behalf of the brand. How is your business model different from traditional licensees? We are something of an outlier: one part retailer, one part licensee, one part marketing platform. Perhaps most accurately, we are a transmedia storytelling platform that aims to express the themes that are driving pop culture and sports every month through a curated collection of branded products. We are very fortunate to have cultivated a loyal community of superfans across 34 countries, surrounding them with omni-channel engagement, and shipping them a mystery-themed product experience that connects so deeply with their passions that it is shared via social media on a scale that consistently reaches tens of millions of people and generates hundreds of millions of impressions on a monthly basis.

The Licensing Book • 33

ADAM BEDER

Executive Vice President, Global Licensing and Business Affairs

Spin Master

How has the process for development of a children’s entertainment property evolved in recent years? The fundamentals of character development and storytelling have not changed. Strong storytelling is at the core of everything we produce from entertainment to toy to licensing. The biggest change we are seeing is the amount of stakeholders that are considered at the beginning of the IP development process. We are now considering toys, video games, retail partners, alternative media, and other merchandising during the upfront planning stage as each touchpoint helps to bring the story we want to convey to life. With more choices than ever before, how do you choose which brands to work with? It is an exciting time to be in the world of licensing. Film and TV used to be the only platforms a toy company would look at for children’s entertainment intellectual properties (IP), but with the emergence of tech and digital, we can now consider so much more—apps, video games, websites, and even social influencers. As you can see, the world of children’s entertainment IP is larger and more diverse than ever and this presents unique opportunities and challenges when identifying the right space and platforms to invest in. How do you work with licensors to create unique products that are specific to each brand? At Spin Master, we always start with innovation. It is at the core of who we are. We scour the globe in search of new ideas and inventions, while leveraging both our external research and develop teams and internal advance concepts team of inventors, designers, and engineers. We review thousands of product ideas every year that seek to inspire imagination and new ways of play. Additionally, Spin Master has maintained a deeply rooted culture of creativity, passion, and partnerships. Our most recently announced partnership with Feld Entertainment Inc. as the new worldwide master toy partner for Monster Jam is a perfect example. We seek to combine our strength of innovation and Monster Jam’s larger than life experiences to further capture the imagination of kids globally. By combining our innovative spirit with the established knowledge and experience of the licensor, we’ve developed a powerful formula that continues to inspire across the board. It is very exciting to see this dynamic combination unfold in real-time, with the product development on our pending Monster Jam launch!

34 • The Licensing Book

TIM KILPIN

President and CEO

Activision Blizzard Consumer Products Group How do you work with your partners to ensure the products they create match your brand’s identity? Our organization is focused on building franchises of the future. Through gameplay, linear storytelling, esports events, and consumer products, we’re delivering depth, breadth, and longevity of engagement around our franchises and across platforms. As a reflection of that, Activision Blizzard Consumer Products Group’s mission is to equip our fans with new ways to play, display, wear, and live the brands they love. All our games and characters have iconic voices, styles, and stories, and it’s important to us—and our community—that we capture and represent that in our licensed products. Our game developers, including artists and designers, work closely with best-in-class licensees to create high-quality and deeply relevant merchandise that we think our global gaming audience will connect with and truly enjoy. These kinds of experiences engage our fans beyond gameplay and create meaningful touchpoints. Where do you anticipate growth in licensing over the next two to three years? Esports has emerged as a significant opportunity that engages millions of players and spectators around the world and will be a focus for Activision Blizzard’s merchandise plans going forward. Our organization is at the forefront of competitive gaming with the Call of Duty World League, MLG Network, and the Overwatch League, the first major global professional esports league with city-based teams. We expect to see massive growth in esports over the next two to three years. Viewership already rivals that of the traditional league sports, particularly online where most millennials and Gen Z’ers are viewing content. With the Overwatch League, for instance, 10 million viewers watched the 12 inaugural teams compete during the opening week of Season 1. By all measures, we expect that the Overwatch League audience will continue to expand steadily, which translates into consumer demand for league- and team-branded merchandise, including apparel and other endemic categories to traditional sports and esports. While most major sports leagues are experiencing a steady increase in the age of their average viewer, esports is a magnet for the 18–24 demo, which suggests we are only at the beginning of a licensing trend we expect will dominate the landscape during the next 10 years. We also see growth potential internationally. We’ll continue to develop opportunities as we work to expand our reach particularly in Europe, and across Asian and Latin American markets, on behalf of properties such as Activision’s Call of Duty and Crash Bandicoot, and Blizzard’s Overwatch. Our expansion will be a mix of different business models: licensing (including retail partnership), esports, gear stores, and fan stores. We understand that one size doesn’t fit all, so we are working with global teams to customize programs to individual markets while maintaining brand integrity.

Summer 2018

STATE OF THE INDUSTRY

HOWARD J. BEIGE Executive Vice President

Rubie’s Costume Co.

With more choices than ever before, how do you choose which brands to work with? In this ever-changing and rapidly expanding market for costumes, it is our objective to provide consumers and retailers with highly sought-after and popular costumes. It’s a very difficult decision-making process because there is so much to choose from. We look at all sources of popular culture—print, TV, the internet, social media, video games, and consumers themselves, for example. We constantly review information on new properties from licensors and discuss possible choices with retailers in great detail. Because we sell our products in broad and varied distribution channels, we also consider where our products will be sold and who our consumers are in those distribution channels. Since our products also cover a broad spectrum of pricing, we choose properties that can be priced appropriately for different retail sectors. This provides us with a much greater opportunity to select more properties. Ultimately, we choose properties that will satisfy the consumer’s desire to “become the character”—even if the character is an inflatable raptor—and we make these decisions for global markets. How do you work with licensors to create unique products that are specific to each brand? We have a uniquely talented team of creative people who live and breathe our products. Some on our creative team have been Rubie’s employees for more than 30 years and they are indispensable in the creative process, along with relative “newcomers” who have only been with the company for 10 to 15 years. They work closely with creative people on the licensor side and go to extraordinary lengths to understand and incorporate the core attributes of each property into the products. They round out the product lines to include accessories, décor, masks, shoes, and more, so that the consumer has everything necessary to create a memorable costume experience or environment. How has the changing retail landscape affected the way you manage your licensing partnerships? Rubie’s has always worked in several distribution channels and our objective has always been to serve consumers and retailers where they shop, whether it’s a small mom-and-pop store, mass-market stores, or online. Our business has grown tremendously by conscientious attention to the needs of every distribution channel we serve. We have always provided retailers with last-minute opportunities to replenish products and we keep our warehouses stocked with merchandise year-round. We service specialty markets, online retailers, and mass-market retailers year-round because retailers demand our products year-round. What was traditionally known as a Halloween costume business has become a year-round costume opportunity, not only in specialty markets and online retailers, but at mass market with dress-up costumes and in pet stores with pet costumes. This is a tremendous growth opportunity for our licensing partners who can garner more exposure and promote their properties in retail venues that traditionally would have been available to them only during a specific selling season.

Summer 2018

PETE YODER Vice President,

Cartoon Network Enterprises for North America How has the process for development of a children’s entertainment property evolved in recent years? The development of a children’s brand today has changed in every aspect from how one was developed when I started in the industry. Today, it’s all about how to build fan engagement. First, content must be developed across multiple platforms and reach kids everywhere they are consuming their favorite brands today. They must also be managed through a franchise lens and appeal to a larger, global audience. Even though there may be slight regional adjustments to a brand, there needs to be a general global consistency in order to maximize reach and long-term viability. On the consumer products side, approach has also changed. Years ago, products were taken directly from what happened in the linear or theatrical content. Today, licensors and their partners have to go much broader than just content. Toys, publishing, and gaming need to give kids the opportunity to create their own stories and content to expand the storyline to tell what happens before, between, and after the linear episode. This expansive opportunity gives fans a new way to engage and interact with their favorite brands. Where do you anticipate growth in licensing over the next two to three years? I think one of the biggest areas of growth potential in licensing is the rise of fan-generated art and its application to consumer products. Fans are very active participants in the brands that they love. One form of expression is developing interpretive art around their favorite characters, scenes, or brands, and sharing it within various social communities. Today, there are many sites that allow artists to monetize this art through product sales. Most of these sites, however, do not reward or pay the actual IP rights holders. I do believe this will change over the next several years, through both legislation, as well as the creation of authentic fan sites created by companies that acknowledge the benefits of working with rights holders to promote, market, and—in many instances—give fans legitimate credibility from the show creators and producers who they admire.

The Licensing Book • 35

MAURA REGAN

LIMA

How are consumers influencing the evolution of brands? Societal trends are most definitely reflected back in consumer brands, particularly in our sphere of children’s entertainment. The reverse is also true where society can start to absorb the trends put forward by influential media. Our new preschool girls’ show, Rainbow Rangers, is a perfect example of the former. Today’s society is embracing the message of empowering girls and young women to understand from their earliest experiences that they are fully capable of doing, participating in, and excelling at any activity or profession that their male counterparts can do. Rainbow Rangers tells the story of seven girls who help heal and save the planet and all of its inhabitants. The focal point of the show is demonstrating how this group of seven girls can come together, learn to communicate, delegate, and take action to solve problems. They are the focal point of the action and the solutions. It is a tremendously powerful and compelling messaging, but done in a fun and adventurous way that we know our audience will love. Every girl in the audience will relate and aspire to at least one or more of the rangers. Also, an important subtext of the show is the importance of environmental stewardship, which reflects society’s understanding that we have only one planet, and we need to leave it in better condition than we found it for the next generation to do the same.

Executive Vice President

How do you think consumers are influencing the evolution of brands? Consumers today are at the center of the brand experience. As such, they yield considerable sway in how a brand evolves and extends its reach beyond its core competency. In many ways, we are seeing an inverse today of what historically has been: Today the consumer is defining your brand, rather than a brand defining the consumer. Where do you anticipate growth in licensing over the next two to three years? We see growth in our industry coming from specific sectors: corporate and lifestyle brands, home furnishings, food and pet, and international markets— China specifically, and interestingly, we have seen significant growth year over year from SEA. Within the entertainment sector, the trajectory of location-based experiences is particularly exciting. What are the biggest challenges facing the licensing industry? The biggest challenges facing the licensing industry are retail consolidation, bankruptcies, corporate mergers and/or acquisitions, shifts in consumer purchasing habits, and unstable currencies in some markets. But through it all, brand licensing remains an opportunity to connect with consumers around products that excite, engage, define, and support them. The global brand licensing community demonstrates time and time again that great product innovation coupled with a kick-ass license will engage the consumer and drive business.

36 • The Licensing Book

LLOYD MINTZ

Senior Vice President, Global Consumer Products

Genius Brands International

How do you work with your partners to create and deliver licensed product quickly without skimping on quality? We work with our partners to create great product as quickly as possible by adhering to a few simple guidelines. First, we anticipate their creative asset needs and have an upfront dialogue to make sure we understand and fulfill those needs. Second, we provide those assets to our partners as early in the process as possible. Third, we have a rapid approval system whereby we endeavor to provide feedback to our licensed partners within 48 to 72 hours of most submissions, whereas most licensors reserve for themselves significantly more time. Fourth, we always benchmark ourselves against what the market is doing, so we push ourselves and are partners to always meet or beat the consumer’s expectations. Fifth, we provide our licensees with enough creative freedom to make the most appealing product possible at the sharpest price point possible. Finally, we offer retailers exclusive creative to provide them with differentiated product for their consumers and therefore discourage price comparison shopping. Where do you anticipate growth in licensing over the next two to three years? I think growth will come from a few sources over the next two to three years. International will no doubt help propel growth as more disposable income generates more demand for merchandise. Online and interactive marketplaces where fan-generated product interpretations of their favorite intellectual property can be readily exhibited and sold is a large and growing opportunity for licensors. The industry is going to need to learn to embrace (and “police”) this new frontier of user-generated content. I also believe that experiential licensing (broadly defined) is going to skyrocket in importance and our industry needs to figure out how to foster those opportunities. Everyone is rightfully super protective of their IP, but they also need to give people an ability to experience the IP in fresh, new ways and on their own terms. Finally, I believe it is incumbent upon all of us in the industry to get back to the basics of making it easier to do business with each other. I have long subscribed to Woody Allen’s famous axiom that 80 percent of success is just showing up. How that relates to the licensing industry is simple, such as returning phone calls and email inquiries, because you never know when that next great opportunity will be on that next call or in that meeting. You should proactively seek out and embrace growth opportunities wherever they may arise. There is a lot of business to be done out there if we’re just open to doing it.

Summer 2018

STATE OF THE INDUSTRY

CARLA PEYTON

Senior Vice President, Licensing, BBC Studios – Americas

BBC

How do you work with your partners to create and deliver licensed product quickly without skimping on quality? At BBC Studios, producing quality product is a priority, and included in that is a strong commitment to ethical and environmental trade practices. We have found that the most strategic and creative way to get product to market involves short- and long-term planning and forecasting. We work closely with our partners and retailers in advance of any brand or content launches to ensure that products debut around key dates that are either driven by or supporting new content or brand extensions. We maintain close ties with colleagues worldwide to ensure we are working ahead of the curve and constantly keeping up with our content pipeline. We try to stay on top of trends and know which partners are able to react quickly to changes in the marketplace. How has the changing retail landscape affected the way you manage your licensing partnerships? We are adapting, as all companies are, to the evolving retail landscape. Our short- and long-term strategies are the foundation for our licensing partnerships. We recognize that it is crucial to work with retailers on planning product pipelines. We do our best to provide individual retailers with points of difference for products that are either first to market or exclusive. Each year, we sit down with our licensees to discuss specific category launches and unique retail promotions that will work successfully for both our brands and the retailer. We know that content and product exclusivity are crucial in this ever-changing retail landscape, so we work to ensure that all our partners are getting unique product, targeted promotions, and timely support for our programs.

Summer 2018

LIZA ABRAMS

Vice President, Global Licensing and Marketing

Sakar

With more choices than ever before, how do you choose which brands to work with? Every year at Licensing Show, I am floored by the plethora of brands in every category. It’s truly overwhelming. At Sakar, we start with evergreens, which have solid placement and appeal. Even among evergreens, there is only so much space at retail. Then we look at key movie launches, fads, and trends. Licensees need to take some (calculated) risks. We tend to take from each pocket, giving Sakar a diverse portfolio and limiting risks. It’s not exactly a science, but it has worked for us. How do you work with licensors to create unique products that are specific to each brand? Within each brand lies a DNA, the essence of what makes that brand stand apart from others. It’s not always easy to incorporate that into a licensed product, and sometimes kids are just looking to be immersed within a lifestyle so it’s not as important. But wherever possible, if you can give a wink to that brand the appeal and sell-through will be far greater. For Sakar, that has been true of our vast karaoke line—in which we continue to offer music free with the product—and in brands in which music is inherent to the story line. Also, take our Hatchimals molded walkie-talkie eggs that hatch open to reveal a key character, L.O.L. Surprise electronics with sticker and stencil surprises within the product, and the JoJo Siwa molded hair dryer complete with her signature bow. Whatever we can do to mold, include, or add that one element that makes the product special and make sense for the brand, that is always our goal.

LEIGH ANNE BRODSKY Executive Vice President

Discovery Global Enterprises

How do you work with your partners to ensure the products they create match your brand’s identity? At Discovery, our first priority is satisfying curiosity, and having dynamic packaging and high-quality products with innovative features and design. Discovery Consumer Products offers engaging products and experiences tied to the company’s best-loved brands. We are authentic and stay true to our roots by making our product offerings readily accessible worldwide. An example would be Discovery #mindblown, which is an extension of our Science channel and Discovery’s DNA, gender-neutral, authentic product from multiple categories, including games, apps, books, toys, accessories, and fashion designed for kids ages 6 and up. How important is it to appeal to millennial parents? Millennial parents, especially those who grew up with Discovery’s hit shows, demand authentic, engaging products and entertainment in all formats. They want accessible, innovative products for their children; they’re interested in affordable, outside-the-box merchandise that inspires and is fun! With Discovery #mindblown, we meet this demand by developing products and experiences designed to satisfy curiosity and keep kids interested in a lifetime of learning and exploring their world around them!

The Licensing Book • 37

ENTERTAINMENT ONE

Peppa Pig

Entertainment One (eOne) will showcase its preschool properties Peppa Pig, PJ Masks, and Ben & Holly’s Little Kingdom. The brands feature strong retail sales across a range of categories in the U.S., with multi-year contract renewals and new consumer packaged goods (CPG) partners. Peppa Pig airs daily on Nick Jr. and generates more than $1.2 billion in global product sales from its more than 1,000 licensees in 60 countries, including more than 80 partners in the U.S. The Muddy Puddles Project, eOne’s charity of choice for Peppa Pig in the U.S., continues to support pediatric cancer research. Last year, eOne helped raise more than $100,000 across two of the charity’s annual events: Mess Fest and Indoor Mess Fest. Through a new global partnership with Merlin Entertainments, Peppa Pig Land in-park attractions launched at Heide Park in Germany and Gardaland in Italy. In addition, Merlin will create a Peppa Pig indoor play experience in the U.S. and China. Next year marks Peppa Pig’s 15th anniversary in the UK and Australia, and eOne will hold events to celebrate the property, supported by 117 new episodes premiering on-air from spring 2019 through winter 2022. The second season of PJ Masks aired on Disney Channel’s Disney Junior block in January in the U.S., and the animated series airs in more than 85 countries. The brand launched a full product line last year, and currently has more than 150 global broadcasters and more than 450 licensees globally, with more than 75 partners in the U.S. Just Play’s global master toy line helped PJ Masks become the No. 1 growth property for preschool toys in the U.S. last year. This year, PJ Masks ranks as the fastest growing preschool toys property and the second largest property in preschool toys in the U.S. Master publishing partner Simon & Schuster shipped more than 1 million PJ Masks books in the first year of publication, and the property has more than 36 million app downloads worldwide. The official charity partner for PJ Masks is Candlelighters NYC, which assists families of children with cancer through all stages of their disease and discovery through recovery. PJ Masks partnered with the charity for its 13th annual Hero Celebration event at The Loeb Boathouse in Central Park in April. Peppa Pig and PJ Masks both have live stage shows tours in the U.S. and Canada. The latest Peppa Pig stage show, Peppa Pig’s Surprise!, launched last year and runs through May. PJ Masks Peppa Pig Live sold more than a half million tickets in the U.S., and grossed more than $20 million at the box office in North America to date. The new PJ Masks Live: Time to Be a Hero show is currently on tour in the U.S. The first live tour debuted last fall, playing in 64 cities with 88 performances. The Time to Be a Hero tour sold more than 150,000 tickets. A second leg launched in April, playing an additional 48 markets and 56 performances. The show is expected to sell more than 100,000 additional tickets. A national Australian live tour is set to launch in September, and a new themed attraction will open at Leolandia theme park in Italy next year. eOne’s licensing, retail, marketing, and product development teams have expanded over the past year to manage and further support the growing properties in the U.S.

38 • The Licensing Book

Summer 2018

PALADONE PRODUCTS LTD. Ubisoft and Paladone teamed up for a new range of Assassin’s Creed merchandise, which is now available to purchase online and in select brick-and-mortar retailers worldwide. The new range offers a selection of Assassin’s Creed-themed drinking vessels, featuring a gauntlet mug, a travel mug, and a chrome mug. It will also feature an Assassin’s Creed mirror, illuminating Infinity Light, a set of coasters, notebooks, and a multi tool.

Assassin’s Creed Gauntlet Mug

STRIKER ENTERTAINMENT Striker Entertainment signed additional licensees for WowWee’s Fingerlings. Partners include Accutime for watches; Handcraft for underwear; Jay Franco for bedding; Midlon for confections; Sun-Staches for novelty eyewear; TCG for games and puzzles; Sambro for back-to-school items in Europe, the Middle East, and Africa (EMEA); and ADDO for crafts in EMEA, Australia, and New Zealand. These new licensees join a roster of existing partners announced earlier this year, including AllStar Vending, Bioworld, Cardinal, Commonwealth, Innovative Designs, Super Impulse, and Tara Toy. Fingerlings products will soft launch in retailers such as Target, Walmart, Kohl’s, and Five Below in categories including bedding, apparel, underwear, puzzles, games, plush, and diary sets. The majority of the products program, including additional product categories, will be available for the third and fourth quarters. The Fingerlings characters continue to expand beyond the original six monkeys, including monkeys that feature two-tones and glitter, as well as updated species, including sloths and unicorns. The Fingerlings Minis collectible line will be packaged in blind bags and will be available in the second quarter following the launch of the Fingerlings series on YouTube this May.

SESAME WORKSHOP Sesame Workshop and its core brand Sesame Street will focus on the consumer experience through renewals with SeaWorld and Beaches. This year, a second show will tour with Feld Entertainment, and Sesame Place will debut its newest coaster, Oscar’s Wacky Taxi. An inspirational new book will launch for adults: The Joy of Cookies: Cookie Monster’s Guide to Life. Sesame Street is collaborating with lifestyle companies to create distinctive products that resonate across generations. New products include graphic T-shirts, handbags, canvas prints, home décor, and skateboards, which will feature playful textures, whimsical shapes, and googly eyes in new collections from Bioworld, Mad Engine, Zara, PUMA, H&M, Globe, Lauren Moshi, Drake General Store, and Land of Nod (Crate and Barrel Kids). Sesame Workshop’s newest series, Esme & Roy, will debut on HBO this year.

40 • The Licensing Book

Summer 2018

HOT SHOTS

The Licensing Book chats with Lisa Streff, executive vice president of global licensing for Epic Rights. What brands will Epic Rights focus on at this year’s Licensing Expo? We are debuting licensing programs for two new artists, Britney Spears and Jimi Hendrix, as well as continuing to build out our global merchandising program for *NSYNC. Additionally, we are focusing on the 50th anniversary of Woodstock, which takes place in summer 2019. Brands like Britney Spears and *NSYNC are popular with the ‘90s millennial generation. Do the consumer products programs play into this demographic? Epic Rights specifically identified and pursued artists that would resonate with the millennial generation. Both Britney Spears and *NSYNC are legendary pop icons that this generation grew up listening to, making them the ideal brands to speak to this audience and exactly what we were looking to add to our client roster. We’re currently developing lifestyle programs for both Britney Spears and *NSYNC, and we’re also creating retro throwback retail programs that utilize their album covers, logos, and images from the late ‘90s and early 2000s, when both were hugely popular. Our goal for both programs is to create a feeling of nostalgia and to connect with the millennial generation and the super fan. Will there be any initiatives to commemorate *NSYNC’s 20th anniversary? In addition to the retail program launching in the spring and summer of this year, the members of *NSYNC joined together on April 30 to celebrate their 20th anniversary with a ceremony in Hollywood to receive a star on the Hollywood Walk of Fame. In conjunction with this great honor, in partnership with *NSYNC, Epic Rights helped activate and launch a four-

42 • The Licensing Book

day *NSYNC Pop-Up Shop, “Dirty Pop-Up,” near the location of their star. Can you share some details about the global retail program for the Authentic Hendrix Brand Guide? When can we expect to see product? Epic Rights, along with our partner Perryscope Productions, is officially launching the Authentic Hendrix global licensing retail brand at Licensing Expo in Las Vegas. The program will focus on providing manufacturers and retailers with a wealth of assets, including never-before-seen licensed photos and iconic album covers and lyrics. The target is to have Authentic Hendrix merchandise hit retail as early as this summer. New product categories will include fashion apparel, headwear, footwear, tops, figures, wall art, accessories, jewelry, home décor, collectibles, and more. This August marks the 50th anniversary of Woodstock. What can we expect to see from the consumer products program? In celebration of Woodstock’s 50th anniversary, Epic Rights and our partner Perryscope Productions are unveiling a new brand guide and 50th anniversary logo. We currently have more than 50 licensees for Woodstock in categories including apparel, accessories, footwear, wall art, stationery, and more. As part of each licensee’s assortment of products, they will offer a Woodstock 50th distinguishable capsule collection. Some licensees creating Woodstock 50th specific commemorative products include seasonal goods from Kurt Adler, collectible coins from Coin Invest Trust, and musical instruments from First Act Guitars. We will continue to announce partners throughout the next year as we head toward the anniversary. Will there be any live experiences or events inspired by Woodstock? The Woodstock 50th anniversary campaign with respect to marketing, promotions, and events is in development and we anticipate a number of initiatives to be implemented to support the licensing and merchandising efforts. ••••

Summer 2018

Britney Spears is one of the most celebrated entertainers in pop history with nearly 150 million records sold worldwide. In the U.S. alone, she has sold more than 70 million albums, singles, and songs, according to Nielsen Music. In anticipation of her upcoming tour in the U.S. and Europe, Epic Rights will develop and launch a line of Britney Spears lifestyle products. The new range of products will be available across many categories, including apparel, footwear, dancewear, athleisure, hair care, intimates, electronics, and home furnishings. Epic Rights will also manage Spears’ e-commerce initiatives, including Amazon.

*NSYNC was recently honored with a star on the Hollywood Walk of Fame in April. To celebrate *NSYNC’s 20th anniversary, Epic Rights developed a new line of branded apparel, accessories, gifts, and collectibles. Epic Rights will develop a ‘90s-inspired fashion apparel and accessories line, collaborating with some of the era’s fashion brands. Additionally, it will utilize album covers, photos, logos, and art for products including fashion tops, T-shirts, accessories, electronics, seasonal, and home décor. Epic Rights will also manage the group’s online presence and official website promotions. Current partners for the program include Bioworld, C-Life, American Classics, Funko, ACCO, and more that will be announced in the coming months.

Woodstock will celebrate its 50th anniversary in August 2019. The three-day, outdoor rock festival is regarded as a cultural touchstone of the ‘60s and of generations that followed. Woodstock featured performances by legendary musicians including Jimi Hendrix, Janis Joplin, The Grateful Dead, Carlos Santana, The Who, and more. Epic Rights partnered with Perryscope for a new Woodstock 50th logo and a new brand guide. Woodstock currently has more than 50 licensees in categories including apparel, accessories, footwear, wall art, stationery, and more. Recent licensees for 50th anniversary-driven product include Kurt Adler, Coin Invest Trust, and Jazwares/First Act. Additional marketing initiatives, brand collaborations, and retail partnerships for the anniversary will be announced in the coming months.

Authentic Hendrix, Epic Rights, and Perryscope Productions partnered to launch the new Authentic Hendrix global brand retail program. Epic Rights and Perryscope Productions will offer retailers, manufacturers, and licensees a new Authentic Hendrix Brand Guide with photographs, logos, lyrics, album art, and ‘60s style Hendrix fashion inspiration. The Authentic Hendrix brand program will include fashion apparel, headwear, footwear, figures, wall art, jewelry, home décor, digital products, collectibles, and not-previously-licensed products from Authentic Hendrix and Experience Hendrix. Merchandise will initially roll out at retail in the fall. The branded merchandise program follows the release of Both Sides of the Sky, a new album featuring 13 studio recordings made between 1968 and 1970, 10 of which have never been released.

The Licensing Book • 43

STIKBOT The Stikbot brand credits much of its success to its content-driven entertainment hub, the Stikbot Central YouTube channel. With close to 1 million subscribers, the channel boasts more than 330 million views, and gives Stikbot fans fresh content to consume and engage with on a regular basis. In May, the channel introduced Dino Planet, a new weekly original series on Stikbot Central. The series is based on three Stikbot dinos living in a dangerous Jurassic time period with some futuristic tech thrown in. This new YouTube series joins other Stikbot shows, including Stikcraft, Off the Grid, The Botcheler, The Stikbot Show, Stikbot Murder Mystery, as well as the fan-inspired series, What the Bot. The Stikbot licensing program expands with Franco Manufacturing Co. Inc., which will create Stikbot-branded bedding, room décor, beach towels, and bath accessories. Franco joins current Stikbot licensees Basic Fun! and Hybrid Apparel. Licensing agent The Joester Loria Group seeks new licensees to expand the Stikbot brand into the backpacks and school supplies category. Zing will debut new products this year, including Stikbot Dino, Stikbot Safari, Stikbot Mega Dino, and Stikbot Monsters. More than 500 fan-made videos are uploaded each week. Retail placement for Stikbot continues to be strong with Walmart, Target, and Amazon, all featuring a wide variety of new and current merchandise in the U.S. and Canada. Since last year, Walmart SKUs have tripled and Target SKUs have almost doubled. To date, more than 45 million Stikbots have been sold since its introduction.

SYNCHRONICITY Jay@Play’s $200 million plush brand, FlipaZoo, moves into licensing. Global agent Synchronicity was appointed last year to represent the intellectual property (IP), and signed new licensees and international agents that will debut products featuring the property’s signature flip in the coming months. Licensees include Basic Fun!/Goodstuff for amusement park plush; Taste Beauty for health and beauty aids; Global One Accessories for bags and accessories, headwear, and cold weather accessories; Ethical Products for pet products; Jay Franco for bedding and home décor; and Mad Dog Concepts for pajamas and slippers. Additionally, HuntAR will launch a FlipaZoo augmented reality app that lets kids scan branded product hangtags and packaging to bring their favorite FlipaZoo character to life on their mobile devices. To round out the program, Synchronicity seeks partners for apparel, publishing, back-to-school, arts and crafts, costumes, party supplies, novelty candy, and fast-moving FlipaZoo consumer goods (FMCG) promotion licensees in the U.S. and worldwide. Additionally, agents Lisle Licensing and Curiosity Japan have signed on in the UK and Japan, respectively. Synchronicity will also build the licensing programs for several other Jay@Play brands at Licensing Expo, namely Flip Zee Girls and new toy-based properties Crunchimals and Wish Me, which will launch at national retailers later this year.

44 • The Licensing Book

Summer 2018

JAZWARES Jazwares will focus on several properties this year, including Peppa Pig, Hotel Transylvania, Roblox, Feisty Pets, Domez, and First Act Discovery. Peppa Pig Lights ‘n Sounds Family Home lets kids Feisty Pets 10-inch Plush experience the sights, sounds, and phrases of Peppa Pig’s family home. The 22-inch play set features seven rooms, more than four floors, and 13 accessories. The house features living room lights that turn on and off, an interactive muddy puddle in the front yard that plays the “Muddy Puddles” song, and a doormat that plays sounds and phrases from the show. Kids can add to the Lights ‘n Sounds Family Home with the new Little Rooms. Each includes figures, furniture, and light-up accessories to customize the pretend home. Peppa’s Transforming Campervan opens to reveal an oversized two-story play set that features sounds from the preschool series. Peppa and her family can relax in the living room and lofted bedroom during the trip, and once they reach their destination, there is room for an outdoor fire pit, a picnic table, and a slide. All pieces store easily inside the van. Jazwares will also introduce Monster Mayhem collectibles inspired by Hotel Transylvania characters. Mystery characters come in monster trunks, each with a skeleton key that unlocks the trunk and uncovers a mystery mini monster. Special trunks will uncover pieces of Hank, and once kids have all the pieces, they can put Hank back together. The Hotel Transylvania Grand Lobby Playset features interactive lights and more than 10 sounds for kids to discover. The play set includes 4-inch posable Mavis and zombie bellhop figures, a hidden elevator, a fireplace that swivels to reveal a secret passageway, a key to unlock an ultra-rare monster collectible, and more. The Roblox Zombie Attack features a collection of characters from Roblox games, including The Neighborhood of Robloxia (created by Q_Q), Apocalypse Rising (created by Gusmanak and ZolarKeth), and Zombie Rush (created by HomingBeacon). Jazwares will expand its line of Feisty Pets with Feisty Pets 10-Inch Plush. Kids can squeeze the stuffed animals on the back of their heads to transform the plush from cute to feisty. The line features a range of animals including a bear, a dog, a cat, and a unicorn. A new acquisition for Jazwares this year, Domez are collectible, highly stylized figurines representing pop culture and gaming properties. Collectors, fans, and gamers can stack and connect Domez products to mix and match a wide range of properties. Domez Deadpool Series 3 is inspired by Deadpool 2, the sequel to the highest-grossing R-rated film of all time. Jazwares will add to the First Act Discovery line with the First Act Discovery Avengers: Black Panther Ukulele and First Act Discovery Nella The Princess Knight Ukulele. The beginner instruments are sized for young players, and feature lightweight bodies and guitar-style tuning gears that make it easy for kids to stay in tune. The standard soprano size ukuleles are made with nylon strings that produce a soft tone and are easy on little fingers. First Act Discovery Nella The Princess Knight Ukulele

LICENSING WORKS! Licensing Works! celebrates the 75th anniversary of Antoine de Saint-Exupéry’s The Little Prince with North American master publishing partner Houghton Mifflin Harcourt for an anniversary edition of the novel. This spring, LeSportsac will launch backpacks and baby, cosmetic, and crossbody bags. Additional partners include Riley Blake for infant apparel and sleepwear, and gift ranges from Finn and Emma, Running Press, Socksmith, Rizzoli’s Universe imprint, Culturenik, Cernunnos (distributed by Random House), and Trousselier. The range also features products made in the U.S. by partners including Vinca, Storiarts, Litographs, Dezign Your Mind, G. Arts Design, and Walls 360. The Antoine de Saint-Exupéry Youth Foundation provides access to art and education for visually impaired children. Proceeds from the sale of licensed merchandise goes to the charity. A promotion ran this spring and encouraged fans to post with #TheLittlePrince75. For each post, the Antoine de Saint-Exupéry Youth Foundation made a donation to help blind American students. The Morgan Library & Museum in New York City will host an exhibition of newly discovered drawings by Antoine de Saint-Exupery. A screening of The Little Prince animated movie will also take place this summer, hosted by the film’s director, Mark Osborne.

Summer 2018

The Licensing Book • 45

SG COMPANIES SG Companies partnered with brands including LEGO Jurassic World, The LEGO Movie Sequel, and HALO for sleepwear; and LEGO Classic and Uglydolls for footwear. The company will renew its sleepwear agreements with LEGO Star Wars, LEGO Batman Movie, LEGO Classic, and Harley-Davidson; and Uglydolls slippers footwear partnerships with Sesame Street, Dockers, IZOD, and Chinese Laundry. Sleepwear for LEGO Jurassic World and The LEGO Movie Sequel will focus on the movies’ premieres this year and next year. SG Companies will also produce HALO sleepwear and expand into the footwear category with the LEGO brand and Uglydolls.

ZAG

Zag Heroez

Zag will showcase four properties under its Zag Heroez label. Zag Heroez is an umbrella brand franchise and a future shared world that brings together all the superheroes from the Zag Heroez animated TV series. Zag focuses its original intellectual property (IP) productions on relatable characters that gain extraordinary powers. The studio will introduce a new series each year, along with subsequent seasons of previously launched shows. It has several feature film projects currently in development. Zag’s Miraculous-Tales of Ladybug & Cat Noir airs in more than 120 countries worldwide, scoring No. 1 global rankings and boosting overall networkw ratings with broadcast partners such as Disney (Europe, the Middle East, and Africa [EMEA] and Latin America), TF1 (France), POP (the UK), Super! (Italy), Gloob (Brazil), and Netflix (U.S.). The series was greenlit through season five for a total of 130 episodes. Miraculous has more than 17 billion watch-time minutes and 3.4 billion views on YouTube. This year, the company will introduce a comical web series that will feature “chibi” style characters. Zag will also introduce new initiatives including Tab Tale for the first official global mobile game; Guess for a kids’ fashion collection (EMEA); Funko for POP! vinyl figures; PEZ for character candy dispensers; a live touring stage show; Ferrero and Burger King for global promotions; and Winning Moves for Monopoly Jr. (EMEA). Zag looks to expand its publishing, party goods, international retailer programs, lifestyle products, and food and packaged good promotions. The company will also present Zag Heroez Zak Storm—Super Pirate, an original, multiplatform IP that targets boys ages 6 to 11. The 3D, CGI-animated, action-adventure TV series follows teen surfer Zak who is mysteriously transported to the Bermuda Triangle, where he becomes the captain of a magical ship full of misfits. The series airs in the U.S. on Discovery Family and Sinclair Broadcast Group’s KidsClick TV, and is available for streaming on Netflix. It airs on select cable and free-to-air TV channels worldwide. Bandai offers a range of toys with digital enhancement treasure coins, designed to level up the free gaming app. The toy and app program launched last November, with new SKUs scheduled for this fall. Additional licensees include Panini for magazines and trading cards; Palamon for Halloween costumes (U.S.); publishing partners Editorial Planeta (Spain), Gründ (France), and Cirandu Cultura (Brazil); and apparel, accessories, and back-to-school partners that will debut products in the fall. Zag seeks additional partners in the following categories: publishing, games and puzzles, sporting goods, wheeled goods, spring and summer toys, youth electronics, apparel and accessories, bedding, bath, beach, party goods, promotions, quick-service restaurants, and back-to-school. Zag Heroez will introduce Power Players (title not final), a 3-D, CGI-animated, live-action TV series that targets boys ages 6 to 11. The series follows Axl, a boy who lives a secret life, who transforms into a 6-inch superhero and gains super skills as he experiences big missions alongside his favorite action figure friends. The company signed a global master toy partner and TV broadcast partners in the U.S., Europe, and Latin American with announcements to follow. The company will also introduce Zag Heroez’s Ghostforce, an adventure comedy that follows three kids who become the “Ghost Force” superhero team. Together, they fight and capture the ghosts that haunt their city. TV broadcasters are on board in Europe and Latin America, and discussions are in the works for broadcasters in the U.S. Zag is seeking a master toy partner.

46 • The Licensing Book

Summer 2018

PROPERTY PROFILE

Discovery Channel’s Shark Week is TV’s longest running must-see summer tent pole event. Each year, Shark Week takes fascinated viewers on a week-long journey to the depths of the sea to uncover the secrets of the ocean’s top creature. Shark Week is a pop culture phenomenon that thrills fans of all ages who are fascinated by these often-misunderstood sea creatures. Celebrating its 30th anniversary this year, Shark Week is found in all 220 countries and territories around the world.

“At Discovery, our first priority is satisfying curiosity and Discovery Channel’s Shark Week 30th Anniversary promises to do just that. As part of summer’s must-see event, Discovery Consumer Products will offer exciting new partnerships tied to the Shark Week brand from retail collaborations like Vineyard Vines to engaging products with Build-A-Bear Workshop and experiences with Princess Cruises and many more.” —Leigh Anne Brodsky, Executive Vice President of Discovery Global Enterprises, Discovery Inc.

Discovery Consumer Products will collaborate with a number of partners to bring engaging products and experiences to Shark Week superfans worldwide. Shark Week partnerships include collaborations with Freestyle Watches, SprayGround, and Tidal New York. Freestyle Watches will offer five styles of Shark Week watches available at Ron Jon surf shops and independent water and dive shops nationwide. SprayGround Backpacks introduces an exclusive Shark Week-themed backpack to be sold at specialty stores and online. Tidal New York offers Shark Week-inspired men’s and women’s flip flops available online.

48 • The Licensing Book

Summer 2018

Discovery Channel teams up with SWEDISH FISH candy for Discovery Channel’s Shark Week 30th anniversary and the launch of new Swedish Fish Mini Tropical flavored candy. In addition to being the official candy sponsor of Shark Week, the brands will work together on a 360-degree partnership reaching fans in stores, traditional spots, sweepstakes, and a new mobile game, Swedish Fish Chomped. The game, developed by Vayner Media, allows users to play as a shark, trying to eat as many Swedish Fish candy as possible without chomping any coral or jellyfish. In the game, fans can also enter a sweepstakes for a chance to win a shark encounter opportunity in Hawaii with round-trip airfare and hotel accommodations.

Beginning in late May, BUILD-A-BEAR WORKSHOP will offer two exclusive Shark Week furry friends—including a Make-Your-Own Great White plush and a Make-YourOwn Hammerhead plush—along with coordinating clothing options, including two tank top and board short sets and a Shark Week Hoodie. Make-Your-Own Hammerhead plush

Discovery Consumer Products is collaborating on a new line of clothing and accessories called Discovery Shark with renowned British Pop artist PHILIP COLBERT of The Rodnik Band. Exclusive Discovery Shark products include women’s fashion, headwear, and an accessories collection including a shark-shaped handbag. Discovery Shark by The Rodnik Brand will debut in advance of Shark Week 2018.

Summer 2018

PRINCESS CRUISES will transform Shark Week into a full season, with its first-ever Summer of Shark as part of its Discovery at SEA Program. Princess Cruises will celebrate an entire summer of Shark Week with a variety of events, promotions, themed culinary offerings, and exclusive on-board festivities all surrounding Shark Week.

Founded in 2005 and based in San Diego, KNOCKAROUND is the original, affordable Southern California sunglasses company. Centered around a sunglasses line that is both practical and stylish, Knockaround provides high-quality sunglasses that won’t break the bank. In collaboration with Discovery Consumer Products, Knockaround will offer its fourth exclusive Shark Week collaboration this year, available online only.

A company best known for its whimsical neckties and smiling pink whale logo, VINEYARD VINES celebrates 20 years of business this year. In collaboration with Discovery Consumer Products, Vineyard Vines will offer a line of more than 40 exclusive Shark Week products, including apparel, neckties, headwear, swimwear, towels, beach totes, and drinkware.

The Licensing Book • 49

DISCOVERY Discovery Communications completed its acquisition of Scripps Networks Interactive, marking a new chapter for the combined company. From this point forward, the new company will be officially known as Discovery. Discovery features content that inspires, informs, and entertains across a range of genres, including food, home, travel, animals, cars, investigation, science, families, adventure, kids, European sports, the Olympic Games, and more. Discovery will focus on licensing programs from Discovery Networks’ portfolio, with special attention on Discovery #Mindblown, Discovery Shark fashion collection, Discovery Channel, the Puppy Bowl XV, and more. #Mindblown is a new global brand at the intersection of exploration, curiosity, and STEM-based edutainment. #Mindblown was originally created for Science Channel’s on-air promotion and launched this year with global toy partner MerchSource. Discovery Channel is the flagship brand for Discovery and the consumer products program offers long-term growth. The brand can be found in the publishing, apparel, gift, novelty, home, toys, and games categories, and continues to seek new opportunities for retail. Priorities include Diesel Brothers, Deadliest Catch, Gold Rush, and Naked and Afraid. Animal Planet encourages consumers to celebrate and explore the animal world. Puppy Bowl will celebrate its 15th anniversary this year. The Animal Planet consumer products offering also serves as a pet brand with products designed to help pets live long and healthy lives. A portion of the proceeds from U.S. Animal Planet pet products benefit R.O.A.R., a network initiative dedicated to improving the lives of animals in our communities and in the wild. Say Yes to the Prom is a licensing initiative with exclusive retail partner Macy’s. Featured as a shop-in-shop in Macy’s Juniors department, the line includes more than 200 different styles of dresses. The retail tie-in is part of a larger TLC philanthropic initiative created by Discovery, which is in its seventh year. The initiative serves nearly 1,000 students across the country by providing a complimentary dress or tuxedo for the high school prom; one-on-one style sessions with TLC’s Monte Durham; and mentorship, scholarship, and internship opportunities as students prepare for college. The initiative was inspired by the Say Yes to the Dress series on TLC. Discovery Adventures is a lifestyle brand designed for consumers who want practical and reliable gear to explore the world. Initial product lines for the brand are available in Europe, North America, and Asia Pacific regions, in categories including apparel, camping, and sporting goods. Current licensees include Craghoppers, Summit, Ninja, Sakar, M5, Semiline, Barcomm, and TCC. Discovery Adventures also partnered with Academy Sports and Outdoors to bring branded camping gear to all stores nationwide. Food Network features branded cookware, tabletop, and food prep product lines in more than 1,100 Kohl’s stores nationwide. Food Network Magazine is the No. 2 best-selling monthly magazine on newsstands, with 13.9 million readers. HGTV Home by Sherwin-Williams is inspired by the HGTV portfolio of content and is a line of interior and exterior paints, available in a variety of finishes at more than 1,800 Lowe’s stores nationwide. The line features multiple color collections with 20 curated hues. Additionally, HGTV Home Design Studio by Bassett provides expert advice and inspiration to help consumers execute room makeovers and design custom furniture. The line’s furniture is available in 850 fabrics with 30 finishes.

ASMODEE GROUP Asmodee Group is a global leader in board, card, and role-playing game publishing and distribution, with more than 34 million games sold in more than 50 countries. Its portfolio of game titles includes Catan, Ticket to Ride, Pandemic, Dead of Winter, Splendor, Dobble/ Spot it!, and Star Wars: X-Wing. Asmodee Entertainment is a new division within Asmodee and will leverage the company’s intellectual properties (IP) to develop new content, including feature films, TV series, collectibles, novels, comics, and graphic novels. The launch of Asmodee Entertainment will unlock new narrative experiences across a variety of platforms, wider storytelling, and a new revenue stream.

50 • The Licensing Book

Summer 2018

HOT SHOTS

Somewhere Over the Rainbow The Licensing Book chats with Lloyd Mintz, senior vice president of worldwide consumer products for Genus Brands International, to discuss where the entertainment company is headed this year. You were appointed SVP of worldwide consumer products last summer. What are your main priorities this year? Since I joined Genius Brands in 2014, there has been tremendous growth and we are hitting our stride with a slate of properties in market and in development. Currently, our main priorities this year are our top-tier brands: our preschool properties Rainbow Rangers and Llama Llama, and our award-winning toddler music-based brand Baby Genius. What will Genius Brands focus on at Licensing Expo? Right now, our focus is on the retail programs for Rainbow Rangers and Llama Llama, because those are the most time-sensitive. Rainbow Rangers launches this fall on Nick Jr. and Llama Llama is currently available on Netflix, while Baby Genius is an initiative for next year. Rainbow Rangers is a breakout preschool property for us. The girls on the show are the heroes, and come together as a diverse group of friends. The core messaging—which revolves around girl empowerment and environmental sustainability—is not only timely, but we believe it’ll resonate with our target preschool girl viewers, as well as their moms. The action revolves around the seven rangers, who are relatable and aspirational girls we hope the audience will embrace. They are not second-tier or sidekick characters, but the focal point of the show. They confront a challenge, and learn to communicate to find a solution, and then work toward executing the solution to the challenge in front of them. It is an empowering message that we hope will resonate with our audience. When we released the trailer in March, everyone was extremely enthusiastic that we were able to translate the vision from a series bible to an actual animated trailer. Everything we promised, we feel we delivered on. That will continue to be the case with the fall premiere, and the launch of merchandise next spring and summer. What can you share about the Rainbow Rangers consumer products program? We plan for the animated series to launch in the U.S. in fall 2018, with a retail launch in early 2019. We’ve been working closely with Fisher-Price and speaking with major

52 • The Licensing Book

retailers. There are a lot of people lining up, and we believe that the concept and market are very rich for us to deliver great product. What can we expect to see next year? Mattel has a comprehensive toy program that will launch between June and back-to-school season of next year. The opening price points will incentivize collectability of the seven rangers, as well as Kalia, the rangers’ mentor and the Spirit of the Rainbow. There are also two feature dolls and a play set. It’s a big line to introduce, and Mattel sees it as a top preschool initiative. We’ve also signed about 20 industry-leading licensees across the consumer products range, including a master publishing partnership with Macmillan Children’s Publishing Group’s Imprint, and master apparel partner Bentex Group. Following Toy Fair this year—which was probably the strongest Toy Fair I’ve had since I pitched The Lion King more than 20 years ago—there was so much enthusiasm for Rainbow Rangers and Llama Llama. People see that these brands are special and unique, and will resonate with their respective audiences. Both Rainbow Rangers and Llama Llama are the first stakes in the ground where the company’s vision of delivering “content with a purpose” is being realized through properties that will not only have huge footprints domestically, but also global consumer products programs that translate worldwide. Last year, SpacePop held live experiences with Fathom Events and Pop Warner. Can we anticipate similar events for Rainbow Rangers? Since SpacePop targeted a slightly older demographic, we need to adjust our strategy for a preschool demographic. But, yes, we are looking at a live touring stage show and other live events. The discussions are ongoing, and the partners we are talking to are very excited about the possibilities of bringing to the live stage the adventures and storytelling of Rainbow Rangers. Let’s switch gears and discuss Llama Llama. What has the reception been since its premiere in January? The reaction has been even more enthusiastic than we expected since Llama Llama, which stars Jennifer Garner, launched on Netlfix. Llama Lama has a 10-year heritage with more than 20 million books in print from Penguin Young Readers, and I think that is what dif-

Summer 2018

ferentiates it from everything else that preceded it from a children’s programming perspective on Netflix. There is a built-in audience and love for it that you cannot quantify nor over-emphasize in the overall success of the series and ultimately the consumer products program. What can we expect from the consumer products program? We plan to have a full-spectrum program for Llama Llama that will launch starting the back half of this year throughout next year. We are in discussion with licensing partners across categories, including master toy, puzzles, games, apparel, food, Halloween costumes, and more, as well as engaging with retailers who know and love the book series and now feel the same way about the show on Netflix.

With the expected green-light for a much-anticipated second season, we’ll ramp up its retail push in order to impact 2019 and beyond. It’ll be an exciting year. Is there anything else you want to share? We’re in a unique position as a children’s entertainment company competing in a world dominated by some very large studios. We have a major broadcaster in Nickelodeon on board for Rainbow Rangers, and a major digital broadcaster in Netflix for Llama Llama. We achieved these noteworthy milestones because content and storytelling are king, and these two properties deliver the goods. We are highly confident in what the future holds for these properties, as well as other properties in development. ••••

Rainbow Rangers will premiere this fall on Nick Jr., with a global consumer products program rolling out in the spring of 2019. There are currently licensees for categories including toys, publishing, and apparel. Partners include Mattel as master toy partner; MacMillan Publishing as master publishing partner; Bentex as master apparel partner; A.M.E. for sleepwear; Planet Sox for hosiery; Handcraft Manufacturing for packaged underwear; Bioworld for bags and backpacks; Jay Franco for bedding and bath; H.E.R. Accessories for jewelry and hair accessories; Dynacraft for bicycles; Kiddieland for footto-floor ride-ons; TASTE Beauty for health and beauty; and Kid Galaxy for bubble toys. New partners include Berkshire Fashions for cold weather accessories and Jakks Pacific’s Disguise division for Halloween costumes. Additional categories planned include footwear, games, puzzles, novelty, activity, stationery, back-to-school supplies, boxed role-play, room décor, consumer packaged goods, and more. Additionally, Genius Brands appointed new agents: Tycoon Enterprises for Latin America; Centa IP for Australia and New Zealand; and Alicom for Denmark, Finland, Sweden, Norway, and Iceland. Rainbow Rangers’ creative team features Rob Minkoff (Disney’s The Lion King) Shane Morris (Disney Frozen), and his partner Tim Mansfield. Elise Allen (Dinosaur Train, The Lion Guard) serves as head writer and co-creator, and Andy Heyward as executive producer. Key designs are created by Disney alum Ruben Aquino. The series follows the adventures of seven magical girls who are Earth’s first responders—protecting the people, animals, resources, and natural beauty of the world. The girls live a rainbow’s ride away in Kaleidoscopia. Whenever there’s trouble on Earth, the heroines zoom into action and ride the rainbow across the sky to save the day.

Genius Brands’ preschool series Llama Llama premiered in January on Netflix and was commissioned for a second season. The series is about first childhood experiences, and the special connections between Llama and his parents, grandparents, and friends. The global expansion of the consumer products program will focus on four key categories: toys, juvenile products, feeding, and apparel. Products will begin to roll out for the fourth quarter, with a full retail launch anticipated for the second quarter of next year and expanding throughout the year. Partners include Franco Manufacturing for bedding and room décor; Cuddle Barn for animatronic plush; Kids Preferred for a Jack-inthe-Box, plush, and puppets; Intimo for sleepwear; Prime Party for party supplies; and Myself Designs/Myself Belts for belts. Llama Llama is based on the book series by author and illustrator Anna Dewdney. The series is lead by director Saul Blinkoff (Doc McStuffins, Barbie’s Dreamtopia, Winnie the Pooh), writer Joe Purdy (Arthur), Ruben Aquino, and producers Jane Startz and Andy Heyward. The Llama Llama books have all placed on the New York Times Best Seller list, with Llama Llama I Love You ranked as the No. 4 best-selling title across all books for adults and children this year.

Summer 2018

The Licensing Book • 53

SPIN MASTER

Hatchimals CollEGGtibles

Spin Master will focus on its Hatchimals, Fugglers, Etch A Sketch, Super Dinosuar, and Toca Boca brands this year. After launching Hatchimals and capitalizing on its global popularity, more than 50 licensing partners have signed on for products including backpacks, apparel, bedding, books, and more. Recent licensees for Hatchimals include Bendon for arts and crafts and activity books; Zak Designs for meal and hydration; DecoPac for cakes; JayBeeCo for metal trays; Sunstaches for novelty eyewear; and Give & Go for baked goods. In addition, Spin Master has new licensing plans for the brand launch of Fugglers, which targets kids ages 12 and up; Toca Boca, which targets kids ages 6 to 11; and the Etch A Sketch brand, which targets kids ages 4 and up. Spin Master is evaluating potential licensees in numerous categories, including outdoor, sporting goods, oral care, and food and beverage.

PENGUIN YOUNG READERS This September, Penguin Young Readers will celebrate the 50th anniversary of Don Freeman’s Corduroy with the addition of a new title, Corduroy Takes a Bow, written by actress Viola Davis. Yottoy and Out of Print will introduce new Corduroy products in honor of the anniversary. Penguin Young Readers will also expand its licensing program with Mad Libs, the brand that fills in the blank through card games, greeting cards, and partnerships with American Greetings and Looney Labs. Last year, Netflix and Mad Libs partnered to distribute Halloween Mad Libs envelopes to 3 million DVD-by-mail subscribers. The Mad Libs app has more than 13 million downloads to date, and it partners with brands including Hello Kitty, WWE, and American Girl. Mad Libs is available on Amazon Alexa, Google Home, and Kik.

54 • The Licensing Book

AARDMAN Aardman will present its upcoming feature film, new intellectual property (IP), and upcoming product style themes. This year’s Licensing Expo follows the global release of the comedy adventure, Early Man. Season five of Shaun the Sheep will broadcast in more than 170 territories worldwide, and a movie sequel is currently in production and Learning Time with Timmmy will premiere next year. The studio will continue to work closely with StudioCanal to develop a licensing and promotional program for the film, including publishing partners and live experiences. Aardman will handle the UK and international rights via a worldwide network of agents. The educational online series Learning Time with Timmy will launch this summer and is designed to help kids ages 2 to 6 learn the English language. The series was developed with the British Council and will stream on YouTube with international broadcasters. The educational series is the latest addition to the Learning Time with Timmy portfolio, which merges the studio’s characters with the British Council’s lessons. There will also be an international publishing and licensing program. Wallace & Gromit celebrates its 30th anniversary next year, and the studio seeks licensing and promotional partners for the anniversary campaign.

Summer 2018

RUBIE’S COSTUME CO. Rubie’s Avengers: Infinity War costumes and accessories let kids join the fight with their favorite Avengers characters, or take the side of evil as Thanos. The costumes are available in a variety of child, adult, and pet sizes. Rubie’s will also launch a collection of costumes and accessories inspired by Solo: A Star Wars Story. The line will feature Han Solo, Lando Calrissian, and Chewbacca, and will be available in a variety of kits for children and adults. Inspired by Marvel’s Black Panther, Rubie’s will introduce Black Panther costumes and accessories based on the heroes and villains of the magical world of Wakanda. The collection will be available in child and adult sizes. Rubie’s will also introduce Justice League costumes and accessories, available in child and adult sizes. The line includes Superman, Batman, The Flash, Aquaman, Wonder Woman, Spider-Man, and more. Rubie’s Pet Shop Boutique, a division of Rubie’s Costume Co., offers pet costumes and accessories for dogs of all sizes, including the “Big Dog Collection” (sizes XXL to XXXL). Rubie’s Pet Shop Boutique offers characters including Batman, Superman, Wonder Woman, Spider-Man, Star Wars, The Avengers, Jurassic World, Mickey and Minnie Mouse, Goofy, Minions, Ghostbusters, Paw Patrol, Teenage Mutant Ninja Turtles, Star Trek, Scooby Doo, and more. The collection also features non-licensed wearables for Halloween, Christmas, St. Patrick’s Day, Barkday festivities, and other celebrations throughout the year.

CARTOON NETWORK ENTERPRISES Cartoon Network Enterprises will introduce new worldwide partnerships and collaborations for The Powerpuff Girls. The brand celebrates its 20th anniversary this year with a global rollout of new episodes, events, and products that will continue to launch into next year. New partners for The Powerpuff Girls in the U.S. include Mattel for Barbie fashion that will launch globally this holiday season; Champion for limited-edition fleece and heritage silhouettes that will be available in the fall; Mondotees for pins and high-end prints; and The LEGO Group for building sets that will be available in August. Licensing partners in Latin America (LATAM) will expand to include Havaianas for kids and adult shoes launching this July; Cremer for personal care products; Dentro da História for books; and Amazonia for themed coconut water. New and expanded fashion licensees in Europe, the Middle East, and Africa (EMEA) include Sabrina for handbags in Poland; Undiz for a direct-to-retail (DTR) line of nightwear and underwear in multiple territories including France, Germany, Morocco, Poland, Spain, United Arab Emirates, and more; Textiss for a nightwear and underwear line in France; Katie Eary for a high-end clothing line that will be available globally; and Bizuu to expand its existing collaboration with a new athleisure collection that will be available in Poland. Since its initial launch in November 1989, the girl power series has inspired generations of kids. The brand still resonates with viewers 20 years later with a reimagined series that debuted last year. The Powerpuff Girls is produced by Cartoon Network Studios, with Nick Jennings serving as executive producer and Bob Boyle as co-executive producer.

Summer 2018

IVORY ELLA Ivory Ella partnered with licensee B.R.E Industries to expand its fashion bag category. The contract was brokered by licensing agent Arabella Enterprises. Ivory Ella launched in response to the elephant-poaching crisis, and donates a portion of its proceeds to wildlife conservation. The company has donated more than $1.6 million to elephant conservation and other charitable causes. B.R.E. Industries will launch three 100-percent vegan Ivory Ella bag collections this year that will include weekenders, backpacks, duffels, cross-body bags, and more.

The Licensing Book • 55

BBC STUDIOS BBC Studios, which recently merged with BBC Worldwide to form a singular commercial entity, will showcase a range of brands including Doctor Who, Top Gear, BBC Earth, Hey Duggee, Something Special, and Strictly Come Dancing. Doctor Who will debut a new season, which will feature Jodie Whittaker as the first female doctor in the series. Renewed licensees include Titan for figurines, apparel, and gifts and novelties in the U.S., Canada, and the UK; Funko for Pop! Vinyl figurines and novelties in the U.S., Canada, Ireland, Australia, and New Zealand; Lady Sandra for home goods, comforters, pillows, and more in the U.S. and Canada; and Rabbit Tanaka for lighting, mirrors, clocks, and wall décor in the U.S. and Canada. New deals for Doctor Who will be announced in the coming months. Hey Duggee Doctor Who currently has more than 70 global licensees, including Character Options, Penguin Random House, Winning Moves, Eaglemoss, Kokomo, and Brand Alliance. Penguin Random House recently launched a collection of Dr. Men books and RP2 Global introduced Dr. Men figures in the UK. Hey Duggee was greenlit for a third season, and a number of deals are already in discussions for this year. Partners include Penguin Random House for publishing; Immediate Media for magazines; Golden Bear for toys in the UK; Jazwares as master toy partner in the U.S.; Jasnor to distribute Golden Bear’s plush toy range and Jazwares’ figurines and play sets in Australia; Chicco to distribute Golden Bear’s plush toy range and Jazwares’ figurines and play sets in its stores in Italy; and Winning Moves for games in Australia. Softlines partners include Dreamtex for bedding in the UK and Australia and Designworks Clothing Co. for apparel at Big W stores. Additional apparel ranges are in discussions and will be revealed in the coming months. Several Hey Duggee licensees will launch product this holiday season, including Jay Franco for bedding, bath goods, beach products, storage products, and slumber bags, and Children’s Apparel Network for swimwear and outerwear. BBC Studios will expand its licensing portfolio for Top Gear. Current partners include Zeon, TDP, Aykroyds, Topps, Dreamtex, Kinnerton, Danilo, and Cooneen. Assured Products Ltd. DC Safety will introduce a line of backpacks and bags in the U.S. and Canada. New deals based on the UK’s Strictly Come Dancing series are currently in the works. BBC Studios partnered with John Adams Leisure Ltd. to produce, manufacture, and distribute the first official Strictly Come Dancing board game, which will be available in July. Recent launches also include Kinnerton for confectionary, Norvell for tanning products, Danilo for cards and calendars, and TDP and Aykroyds for apparel. Existing licensees Beams and Kim & Miller will develop new beverage and food gifting ranges that will hit the shelves this holiday season. BBC Studios appointed Golden Bear as master toy partner for a line inspired by the Something Special series. Additional partners include Trends UK Ltd.; ZAK UK for lunchware and dinnerware; Danilo for greeting cards and calendars; moonpig.com for greeting cards and gifting; Sony for music products; Aykroyd & Sons and TDP Textiles for nightwear, underwear, and swimwear; Princes Foods for pasta shapes; Egmont for books; Immediate Media for magazines; and Paper Projects for stickers. The success of natural history series Planet Earth II and Blue Planet helped the BBC Earth brand gain popularity. Partners include Whitehouse Leisure for plush toys in the UK and Europe, the Middle East, and Africa (EMEA); ACCO for calendars in the U.S. and Canada; and Museums & Galleries for calendars, cards, and stationery in the UK. Additional deals are in the works.

56 • The Licensing Book

Summer 2018

SPOTLIGHT

BEYOND THE BALL THE NFLPA CONTINUES WORK BEYOND FOOTBALL AND SUPPORTS FEMALE ATHLETES by KRISTEN NELSON, associate producer, Sports Illustrated THE NATIONAL FOOTBALL LEAGUE PLAYERS Association (NFLPA) is about much more than football. Sure, the organization is built around representing highly skilled athletes who work tirelessly to be elites in their respective positions, but the NFLPA is all about what happens behind the scenes and off the field. Now, that reach is broadening beyond the scope of football athletes. Last November, in an effort to bolster licensing and brand management opportunities, the NFLPA launched Representing Every Player (REP Worldwide), which is made up of NFL Players Inc., the licensing and marketing division of the NFLPA; the U.S. Women’s National Team Players Association (USWNTPA); and the Women’s National Basketball Players Association (WNBPA). The effort offers an extension of the services the NFLPA already provides to its athletes, to others. “We identified in the market other athletes and players associations that weren’t being represented in the same fashion that our NFL players were, and a lot of it was just due to resources,” says Steve Scebelo, vice president of licensing and business development for NFL Players Inc. “So we thought maybe we could tap into what we were doing, provide a similar set of services, and really take it from a player’s perspective. It’s all about players working for players.” As the realm of sports focuses on more than just, well, sports, there becomes a need for athletes to support athletes, which is the heart of what REP Worldwide is all about. As the NFLPA begins to partner with other players associations, it culminates from the success of a business model honed through more than 25 years of work.

Houston Texans defensive end J.J. Watt

58 • The Licensing Book

STORY TIME All 2,000 players currently in the NFL are members of the NFLPA. NFL Players Inc. collectively represents their rights, seeking opportunities for each player to tell his story, as well as working with licensees to determine which players would best fit their opportunities. Tools include compilations such as the Rising Stars list, which pinpoints players who may not yet be on the Top 50 Players Sales List, but are

up-and-comers. Additionally, there is the annual NFLPA Rookie Premiere, which provides sponsors and licensees with access to engage and develop content with 40 of the newest crop of the league’s most promising and potentially marketable stars. Ever heard of Odell Beckham Jr.? He was on this list, and less than a year later was the face of one of the NFLPA’s biggest partners—EA Sports—as the cover athlete of the video game Madden 16. To tell the stories of these players beyond their onfield talent, the NFLPA Community MVP program aims to recognize a different player each week during the regular season who has demonstrated a commitment to their community. Examples include Houston Texans defensive end J.J. Watt, who raised more than $33 million in disaster relief funds for the city of Houston after Hurricane Harvey; and Philadelphia Eagles defensive end Vinny Curry, who provided full Thanksgiving meals to 200 families in Philadelphia. “While only 18 players each year are recognized as Community MVPs, if you multiply the impact that these players are having on their communities, it’s really impressive,” Scebelo says. “I stand in awe of so many of them because they maintain their job as a world-class athlete and, in the meantime, are making these incredible impacts and giving back to the community that they work and live in as well.” NEW FACES IN NEW PLACES NFL Players Inc. will forever have new ways to freshen product lines and marketing opportunities, the most obvious being with the NFL Draft. Before a rookie ever signs with a team, the process of licensing himself is already well underway. During the NFL Combine, athletes sign a group licensing agreement, which gives NFL Players Inc. the rights to start working with big licensees, such as Funko, EA Sports, Panini, and Forever Collectibles. To make it as painless as possible for the young athletes newly immersed into earning a paycheck, the group licensing agreement acts as a one-stop shop. “The business has evolved into a 12-month business, not just during the season or the NFL draft. Both the labor and licensing side of the NFLPA are working with the athletes to understand group licensing rights,” says Karen Austin, assistant vice president of licensing. Once a player is in the league, he has the benefit of

Summer 2018

being a part of a large, ever-changing world, and sometimes that leads to signing with a new team. As simple as that concept may sound, this presents the opportunity to find new product that didn’t exist before—even if it’s a familiar action figure dressed in a different uniform—but sometimes it’s even more than that. No one ever doubted quarterback Jimmy Garoppolo’s talent when he sat as Tom Brady’s backup in New England. But let’s face it, Garoppolo was never going to earn the starting job over a healthy Brady, who has somehow strengthened like an aged whiskey throughout the years. Teams often recognize what individual players need to do for the betterment of their careers, which is why Garoppolo’s trade to the San Francisco 49ers last fall was not entirely shocking. Every Patriots fan was likely comforted with having the talented Garoppolo as a backup during games, but when given the option to buy a Brady figurine over a Garoppolo figurine—well, let’s just say every Pats fan I know has at least two Brady jerseys in their closet in addition to the one they’re wearing. Now, San Francisco has this highly touted player to lead them on the field, and Garoppolo merchandise finally reached a market where it can be a top-seller. “It’s a fun cycle for everyone involved,” Austin says. But it’s not just the athletes who are making moves. Fans themselves are moving their allegiances beyond just teams and stars wearing the colors they’ve always claimed to bleed. Collectors are no longer limited to purchasing items based on players donning their teams. Fantasy sports, as well as social media, changed the way many fans find who they cheer for. Sure, fans may still have their go-to team to focus on each Sunday, but, more likely than not, the die-hard fans are compulsively checking their phones and computers to see how those on their fantasy rosters are competing. “Through social media, now more than ever, fans are connecting with these players on a more personal level,” Scebelo says. “When mixed with fantasy, this allows younger generations to find a more unique way to engage with sports.” WHO RUN THE WORLD? But now it’s not just the men who play on Sundays who will benefit from the well-oiled machine at the NFLPA. Through REP Worldwide, NFL Players Inc. is essentially acting as an extension of the USWNTPA and the WNBPA to give their athletes the opportunity to expand their licensing brands. When looking through both of their histories, the platform for these women is well earned. The U.S. Women’s National Team was part of the most-watched soccer game in U.S. history when it defeated Japan to earn its third World Cup in 2015. A team so obviously filled with great talent provides a promising future for licensing programs.

Summer 2018

“[The USWNT players’] social media use rivals any athletes out there, through their engagement and just how savvy they are, and just how fun their accounts are,” Scebelo says. “That’s going to be a key in how we roll out product releases. That fan base is passionate in the way they support their players and they’ve been hungry for merchandise.” The USWNT isn’t the only group of women traveling the world to show off their skills. It is not uncommon for WNBA players to spend their offseason playing in other countries. Between leagues in Asia, Europe, and Australia, these basketball stars have followings that go well beyond the United States. That international presence, mixed with a historic importance in women’s sports, will also lend itself to successful licensing partnerships. “Working with REP Worldwide gives the WNBPA a leap forward in our group licensing program. The WNBPA is the first sports union for women and [this] year we celebrate our 20th anniversary,” says WNBPA Director of Operations Terri Jackson upon the launch of REP Worldwide. “We want this milestone year to include maximizing all licensing and marketing opportunities for our incredible and diverse athletes.” The full-service representation business will include leveraging athlete intellectual property group rights, structuring licenses and sponsorships, driving support for players and licensees at retail, as well as developing content opportunities via ACE Media, the NFLPA’s production and content company. THE BEST IS YET TO COME The world of sports is constantly developing, and if regional patriotism drives individuals to fandom, there will always be opportunities to license. The NFL has and will continue to grow as one of the most recognizable sports brands, but the NFLPA is now recognizing the expansion and success of other leagues and teams. As REP Worldwide works to find the right partners and contracts for the USWNTPA and the WNBPA, the potential of reaching greater heights through this partnership will strengthen the voice of these athletes in a way they’ve never seen before. “We know that the fan demand is there, so now to see licensees start to come on board has been very rewarding,” says Scebelo. “It will be that much more so once the products are out in market.” ••••

Kristen Nelson is associate producer at Sports Illustrated. Previously, Nelson was assistant editor at Adventure Publishing, contributing to The Licensing Book, The Toy Book, and The Toy Insider.

The Licensing Book • 59

BRAND CENTRAL Brand Central LLC represents food and beverage brands, such as Tapatio Hot Sauce, Cap’n Crunch, SONIC restaurants, and the Snyder’s-Lance portfolio of brands, and entertainment brands, such as True and the Rainbow Kingdom and Mister Roger’s Neighborhood. Brand Central also represents lifestyle brands, including Rube Goldberg, Bible bb’s, and color authority Pantone; and digital and media brands, including YouTuber Jake Paul and his social media label Team 10, reality star Chloe Lukasiak, and digital influencers such as Cute Girls Hairstyles and Brooklyn & Bailey. Brand Central Insights is a trend intelligence service that builds customized trend reports for retailers, brand owners, and manufacturers. The monthly subscription service delivers fully customized trend intelligence and actionable recommendations.

TOY STATE Toy State features licensing partners for entertainment, lifestyle, and automotive properties, including Hot Wheels, Barbie, Cat Buildin’ Crew, Thomas & Friends, Monster Jam, TMNT, Marvel, DC Comics, and the Drone Racing League. Most recently, Toy State partnered with the Netflix Original animated series True True and the and the Rainbow Kingdom for Rainbow Kingdom a new product line that will be available in the fall. The line of toys will highlight the magic of True and the whimsical characters of the Rainbow Kingdom through collectibles, figures, plush, play sets, and dolls.

POCKET.WATCH Pocket.watch has five new licensing agreements that extend its reach and the reach of its YouTube creator partners, including Ryan ToysReview, EvanTubeHD, JillianTubeHD, and HobbyKidsTV, into new categories of consumer products that will be available at retail outlets online and offline beginning this year. Pocket.watch will continue to grow its YouTube creator partners into global franchises. Licensees will introduce products in categories including toys, games, bath products, cosmetics, bedding, and more. Pocket.watch’s expansion has led to newly formed divisions that include home textiles, youth electronics, activities, toys, and bed and bath products. Licensing deals include a home collection from Franco Manufacturing, which will launch late this year and feature bedding, bath, and home décor for each of its creator brands; KIDdesigns for a laser tag game, walkie-talkies, headphones, and electronic toys featuring Ryan ToysReview; ORB for a line of activities including drawing toys, compounds, stickers, stamp kits, reusable ink, activity kits, craft kits, and slime, which will launch later this year; ORB will also create exclusive ranges for Soft‘n Slo Squishies featuring each of pocket.watch’s creator brands; Brainstorm Products for a line of Ryan ToysReview kites, gliders, and parachutes; and Taste for bath products that include play value and collectible aspects for Ryan ToysReview, as well as a range of cosmetics and beauty products for JillianTubeHD. In addition to these new partnerships that expand pocket.watch into electronics, home textiles, cosmetics, and activities, it also previously entered licensing partnerships with Bonkers Toys and The Bentex Group for toys and apparel lines. Pocket.watch will also launch its first book, which will feature YouTube creators and will be released under the pocket.watch imprint with Simon Spotlight, a division of Simon & Schuster Children’s Publishing. Watch This Book gives a behind-the-scenes look at YouTubers including Ryan ToysReview, EvanTube, HobbyKids TV, and Captain Sparklez. It will feature illustrations, original art, stories, and tips from each of the stars on how to make the best videos. The cover of the book will be revealed in a video from the YouTube creators.

60 • The Licensing Book

Summer 2018

NELVANA ENTERPRISES

Soft‘n Slo Squishies

Nelvana Enterprises will showcase its portfolios for Max & Ruby and Soft‘n Slo Squishies. To celebrate next year’s 40th anniversary of Rosemary Wells’ first Max & Ruby title, Nelvana will plan public and retail events and will revive the brand’s licensing program to target an early preschool demographic. The licensor will have a new style guide as it seeks key global toy, publishing, and apparel licensees. This fall, a new season of Max & Ruby will air on Nick Jr. and introduce new characters to fans. Nelvana was named worldwide licensing representative for Soft‘n Slo Squishies in February. The squishable collectibles from ORB generated more than $100 million in retail sales, and Nelvana will produce an original short-form YouTube series based on the toys. Key categories for the program include apparel, sleepwear, accessories, novelty, gift, home décor, and publishing. Nelvana’s original preschool series Ranger Rob currently airs on Treehouse in Canada and Universal Kids in the U.S., and will expand its TV and consumer products reach this year. New licensees and products are currently in the works, including an app. Licensing agents and broadcast placement are set for the UK, France, Germany, Italy, and Spain. Animation studios Nelvana and Frederator partnered to expand the Bravest Warriors universe. There have been three seasons of the Bravest Warriors web series since it originated in 2012. The series has more than 250 million YouTube views and 2 million subscribers. Nelvana is currently producing New Bravest Warriors, an animated TV series that follows the adventures of teens Chris, Beth, Danny, Wallow, and Plum as they warp through the universe saving adorable aliens using the power of their emotions. The series targets kids ages 9 to 14 and will air on Teletoon Canada and other broadcasters internationally beginning this fall. Several of the new episodes are now available on the VRV streaming app in the U.S. and will continue to be released throughout the year. Nelvana Enterprises plans to expand the brand’s consumer products program following the release of the series. It currently seeks additional partners to launch a broader program for fall 2019 that will include toys, novelty, apparel, apps, home, stationery, accessories, dress-up, and games.

STX ENTERTAINMENT STX Entertainment will release the Uglydolls animated feature film in May 2019, followed by a new animated TV series in 2020. The first wave of licensees for the Uglydolls feature film includes partners in all key categories. Licensees include Hasbro as the global master toy partner; Accessory Innovations for backpacks and bags; Accutime for watches; ASO for bandages; Berkshire for cold weather gear, hats, scarves, and coats; GBG/AME for adult and kids’ sleepwear; Handcraft for kids’ underwear; High Point for socks and slipper socks; Hybrid for adult, teen, and kids’ apparel; Innovative Designs for art kits and journals; Jay Franco for home and bedding; Pan-Oceanic Eye Wear for sunglasses and swim goggles; Party City for paper party products and balloons; PEZ Candy for candy dispensers; Rubie’s Costume Co. for Halloween costumes; SG Footwear for adult and kids’ shoes and slippers; Sakar for consumer electronics, speakers, headphones, and clocks; SmileMakers for stickers; Titan Publishing for art books; Whitehouse Leisure for amusement; and York for wall coverings. Uglydolls is a specialty brand of plush and other trend-driven products since 2001.

62 • The Licensing Book

Summer 2018

PROPERTY PROFILE

Paris, France at Kidexpo on November 3. Embarking on a quest much like their favorite Beyblade Burst characters, fans ages 8 to 13 will have the chance to face off in battles against the top Bladers from various countries around the world, with one victor ultimately claiming glory and being crowned the Beyblade Burst World Champion.

The Licensing Book chats with Natasha Gross, director of TV sales and licensing for Sunrights Inc., about the future of Beyblade Burst. What are Sunrights’ goals and objectives? As the company managing Beyblade Burst in the western markets, we are constantly looking to grow and enrich our brand experiences. The goal is to develop robust licensing programs that play off the strengths of the property—both attracting fans in new territories and giving consumers new ways to enjoy their favorite titles. Right now, our biggest objective is to continue the success of Beyblade Burst, as the property has definitely begun to take off and create buzz around the world. In addition to selling seasons one and two of the animated TV series to numerous international broadcasters, we have already amassed some 31 active licensees in most major categories with merchandise hitting the shelves throughout this year.

How do you plan to keep Beyblade Burst fresh for fans in the year ahead? The best way we can keep Beyblade Burst fresh is by seeking out and identifying new ways for fans to experience and immerse themselves in the brand. It’s also about reaching fans where they are already active, and keeping Beyblade Burst connected to the evolving interests of today’s youth culture. For instance, recognizing that many young consumers are increasingly looking to their screens for entertainment, we just signed a licensing deal with Epic Story Interactive to develop a Beyblade Burst mobile game. Beyblade Burst Rivals (working title) is a fast-paced, match-three puzzle battle game for iOS and Android devices that is slated to debut in the fall. We’re also generating more fan engagement through our 2018 Beyblade Burst World Championship, which will begin with a series of national competitions in multiple countries before culminating in the main event to be held in

What are your plans to engage new kids with the franchise? It really comes down to reaching potential fans where they are already active, so why not engage them where they eat? A huge promotion we are doing this year involves a quick service restaurant (QSR) partnership with Subway, involving more than 35,000 restaurants around the world. At all of the participating restaurants, the FreshFit for Kids meals will feature a Beyblade Burst-inspired launcher and spinning top. Subway’s Beyblade Burst promotion will ultimately include restaurants in the U.S., Canada, Aruba, Australia, Austria, Bahamas, France, Germany, Iceland, Ireland, Liechtenstein, Luxemburg, New Zealand, Sweden, Switzerland, and the UK. We continue to reach new fans through an online campaign we launched late last year called Gen Bey, which was created to give the next generation of Beyblade fans a whole new level of interaction with their favorite TV show, tops, and characters. Gen Bey features a dedicated monthly newsletter and provides special access to new products, sneak peeks, clips from upcoming episodes, and exclusive giveaways of cool Beyblade Burst swag.

What types of licensing partners are you looking for? How do you go about choosing the best partners? While we are always seeking out new licensing partners to enrich the Beyblade Burst brand, the types of categories we’re most interested in include accessories, electronics, and sporting goods. For us, ideal licensing partners are those not only successfully serving the target demographic for Beyblade Burst, but who also share our vision for the brand and its possibilities. We’ll be meeting with many companies at Licensing Expo 2018, and attendees interested in talking with us there can visit the Sunrights Booth #B222, Bayside Exhibit Hall, Level 1 at the Las Vegas Convention Center.

What sets Beyblade Burst apart from other properties for this demographic? Beyond its great storyline celebrating the spirit of competition and desire to be the best, Beyblade Burst is an interactive property with global appeal from the animated TV series and World Championship events to the dedicated toy line and licensed merchandise. ••••

Summer 2018

Beyblade Burst DVD Vol. 4 Valtryek’s Awakening

For 25 years, CITEL VIDEO has specialized in videos and DVDs for kids. Its shows are derived from iconic comic book series, classic children’s literature, and recent TV shows such as Superwings, Beyblade Burst, and Zak Storm. Citel Video launched Kana Home Video in 2006, a new label dedicated to Japanese animation such as Naruto, One Piece, and Death Note. Since 2008, Citel Video continues to expand its family offerings by acquiring a range of films, TV series, and cultural and historical programs.

Beyblade Burst The Official Guide

LES LIVRES DU DRAGON D’OR is a publishing house located in Paris that specializes in publishing licensed books. Labeled the “100% Hero,” it welcomes children’s favorite heroes into its catalog of high-quality books based on animated series or acclaimed children’s toys, including characters from Beyblade, Barbabapa, Pokémon, Yo-kai Watch, Smiley, Monchhichi, The Littlest Pet Shop, Zak Storm, Robot Trains, and Ben 10 in activity books, stickers, books, stationery, and more. A publisher of Beyblade publications, Les Livres du Dragon d’Or has released a collection of Beyblade titles, including novels, The Official Guide, activity books, and storybooks for younger kids.

For more than 20 years, D'ARPÈJE imagined, designed, and developed toy ranges that are innovative, colorful, and respectful of the demands of parents and their children. Its collection of creative toys offer many ways to invent, create, and dream with children’s favorite characters. Whether it be paint products, coloring products, stationery, creative sets, or furniture, D’Arpéje produces its products under the most renowned brands while utlizing its best skills in master quality and design. Beyblade Burst Beyblade Hero Bed Linen

Beyblade Burst Penny Skateboard

CHAULNES TEXTILES INDUSTRIES (CTI) develops, designs, and licenses home textiles. After gaining its initial signature license with Disney, other licenses quickly followed and developed its portfolio. In 1995, CTI quickly became the European leader in licensed children’s bedding. Since then, CTI has become a leading player in the field of licensing, and is now a partner of the biggest licenses, both in France and Europe, including Walt Disney, Warner, Sanrio, Hasbro, and Mattel. The company also designs, manufactures, and distributes collections dedicated to characters from Disney Princess, Cars, Toy Story, Beyblade Burst, Pucca, Hello Kitty, Littlest Pet Shop, Haribo, and more.

BIOWORLD MERCHANDISING INC. is the industry leader in licensed and branded apparel and accessories for some of the biggest entertainment brands in the world. With more than 100 dedicated designers, Bioworld is a design house for apparel, sleepwear, headwear, bags, and accessories targeted to pop culture fans. Bioworld’s expertise is to translate the brand story into product that is as distinctive as the brand itself. The company’s success is a direct result of hiring uniquely talented creators who are passionate about and immersed in the brand stories they are translating into products for fans.

Beyblade Burst Boys’ Spinner Tops T-Shirt

GLOBAL DESIGN CONCEPTS INC. was founded in 1999 and quickly became a leading design and distribution company of licensed, branded, and private-label accessories to all retail channels. The company produces more than 40 million fashion accessories and customized promotional products annually for the retail, premium, and fashion industries, including but not limited to: children’s backpacks, lunch kits, handbags, and luggage, totes, cosmetic bags, and wallets.

Summer 2018

Beyblade Burst School Backpack

The Licensing Book • 65

WILD KRATTS

Wild Kratts T-shirt

Wild Kratts will release a range of T-shirts launching exclusively at Old Navy stores in the U.S. this September. The collection includes short- and long-sleeved T-shirts and sweatshirts. The product range will expand to Canada and other territories, as well as e-commerce outlets. In addition, new products based on the PBS series will launch through multi-year partnership renewals with licensees including Wicked Cool Toys, Pressman, and Whole Foods Market. Wicked Cool Toys will continue to expand its Wild Kratts lineup in the U.S. and Canada; Pressman will broaden its offerings with more puzzles and games; Whole Foods Market will expand with new products this year; and grocery offerings are now available on Amazon. The live-action and animated Wild Kratts series, produced by The Kratt Brothers Co. and 9 Story Media Group, airs daily on PBS stations as well as the new PBS Kids 24/7 channel and live stream. Currently in production on its sixth season, Wild Kratts is rated one of the top three shows on PBS Kids and is the No. 1 show site and streaming site on pbskids.org. Complete with animal-inspired gadgets and Creature Power Suits, the series follows Martin, Chris, Aviva, and the gang as they get to know all of the amazing animals on the planet and figure out their coolest creature powers. Wild Kratts airs in more than 180 countries and is available in more than 15 languages.

LAWLESS ENTERTAINMENT Suzy’s Zoo, from Lawless Entertainment, was established 50 years ago by artist Suzy Spafford as a line of greeting cards and has grown to feature more than 200 named animal characters on a range of products. Little Suzy’s Zoo was recently introduced into Plaza Style stores in Japan with merchandise including plush toys, apparel, dinnerware, books, cell phone covers, and more. Adventures in Duckport is an animated series that features the Classic Suzy’s Zoo characters, and is currently in production with Mondo TV. Multiple broadcast deals are in place worldwide. The animated toddler series, Little Suzy’s Zoo: A Day with Witzy, is currently being sold for broadcast worldwide. Recent licensing and merchandising deals will bring new items to stores, including baby apparel and accessories, premium and promotional gifts, maternity accessories, digital stickers, emoticons worldwide, limited-edition artwork, books, coloring books, balloons, and more. Biff the Dog, by creator Tracy Calvert Ambrose, is an animated series about a kind-hearted canine on a mission to help others when they are in need. Several children’s books featuring Biff have been finalized, as well as an animation series bible in English, Italian, and Japanese. Biff’s SPIKED! line includes plush products for people and their pets. The Swan Princess, distributed by SONY, has added films to its worldwide franchise for more than 20 years. Sony Pictures Worldwide released the eighth fully animated film, The Swan Princess A Royal Mystery, in March. The Swan Princess licensing program includes apparel, costumes, makeup, plush, action figures, digital and physical games, children’s books, art, dolls, and more.

66 • The Licensing Book

Summer 2018

PBS KIDS Kart Kingdom is a virtual world from PBS, where kids and tweens can customize their own kart, create their own adventure, and collaborate to complete community challenges and unlock rewards. Arthur airs daily on PBS and encourages literacy and positive social skills. The show is the longest-running children’s animated series. PBS licensee Ematic will introduce JAM-E the Robot, a musical robot buddy for preschoolers with more than 200 reactions, phrases, sounds, and animations. Its three play modes allow self-directed and prompted music-making, as well as game play. JAM-E comes with a songbook, so kids can learn to play melodies from PBS shows on the keyboard, and it connects to a free companion app for more gameplay, updates, and educational content for parents. JAM-Bits is a collectible line of small musical robots with unique animal- and sound-based personalities. In Emote mode, the robots perform and dance in their own individual styles, or react in funny and surprising ways when kids interact with them. In Sound Effect Mode, JAM-Bits are musical instruments that play as kids shake them. Available licensed categories include apparel, consumer electronics, footwear, food and beverages, gifts and novelties, home furnishings, jewelry, pets, science, activities, sporting goods, toys, and games.

GREG & CO. Greg Giordano offers Nostalgic America and Heartland America. The Nostalgic America collection features vintage automotive subjects in classic American settings. Licensed products include jigsaw puzzles, over-thecounter quilting fabric, and wall décor. The Heartland America collection includes vintage pick-up trucks and tractors. Licensed products include calendars, coasters, garden flags, greeting cards, jigsaw puzzles, wall décor, and craft products.

RAVENSBURGER Ravensburger will introduce the Jurassic Park Danger! Game inspired by the classic movie. In this game, chaos has hit Isla Nublar, with the power out and prehistoric creatures on the hunt. One player controls the T. rex, Dilophosaurus, and Velociraptor, prowling through the jungle to attack the humans. The other players team up as characters from the movie to try to get Jurassic Park back online and escape the island before they become prey. Ravensburger will also feature the World Cup Puzzle Ball. This 3-D puzzle has 540 pieces and features the artwork of the official match ball that will be used in the 2018 FIFA World Cup.

Summer 2018

The Licensing Book • 71

SPOTLIGHT

ACTIVISION GOES ALL IN ON ESPORTS The Licensing Book chats with Tim Kilpin, president and CEO, Activision Blizzard Consumer Products Group, one year after the division’s big launch. What changes have you seen in your fan and consumer base since Activision Blizzard’s Consumer Products Group launched last year? Esports continues to be a massive growth opportunity. With millions of players and spectators around the world, esports viewership is outpacing that of the traditional league sports, especially with the millennial and Gen Z audience who are viewing content online. Ten million viewers tuned in to watch the opening week of season two of The Overwatch League. We also have a massive dedicated global audience tuning in weekly via multiple platforms. With changes underway in traditional sports models and consumer demands, Activision and Blizzard Entertainment are well positioned as leaders in competitive gaming with the Call of Duty World League, MLG Network, and the Overwatch League, the first major global professional esports league with city-based teams. Esports is a significant focus for Activision Blizzard Consumer Products Group’s merchandise plans going forward. We have a deep understanding of our esports audience and are seeking the right licensing partners to deliver products that feel uniquely designed for our fans. Ultimately, we are creating a new sub-industry centered on fashion and performance—specially for gamers. What’s in store for Licensing Expo? Last year, we debuted the newly created Activision Blizzard Consumer Products Group at Licensing Expo with the goal of delivering franchises of the future. From the pocket to the stage, the power of the Activision Blizzard King portfolio can be found in its deep consumer engagement across a number of top properties. This year, we made enormous progress building best-in-class partnerships with industry leaders across a variety of product categories. At Licensing Expo 2018, we will arrive with new partnerships and programs for several properties, including Activision’s Call of Duty, Crash, and Spyro, to name a few, and Blizzard Entertainment’s Overwatch and World of Warcraft. Esports continues to grow as a significant opportunity, and the success of the Overwatch League’s season one launch earlier this year highlights a major area of focus of our merchandising efforts. Fans have shown that they embrace the ability to “play, display, wear, and live” the brands they love. We are excited to showcase our

72 • The Licensing Book

Overwatch League gear program for the first time at this year’s show. What new partnerships and properties can we expect this year? We have signed multiple world-class partnerships for Overwatch, which will unfold as the year progresses. The strength of the brand continues to expand the merchandising opportunities in significant ways. We also have continued to expand the roster of licensees for other key Blizzard Entertainment properties, such as World of Warcraft, Hearthstone, and Heroes of the Storm. For Activision, Call of Duty and Crash Bandicoot anchor a strong lineup of partners across an array of merchandise. This year we are building on the success of Crash with Spyro, for which we are currently building out a merchandising program. What new merchandising categories will Activision drive this year? Activision will be collaborating for the first time on a Call of Duty line of collectible action figures with McFarlane. They will launch Legacy Call of Duty characters along with new characters, which we look forward to talking more about soon. In collaboration with UNIQLO, we are launching a collaborative apparel program that will span across all properties from Blizzard Entertainment. The exclusive spring and summer collection launched globally in May. We also are delivering across entirely new categories through the first major, city-based sports league, Overwatch League. What is Activision and Blizzard Entertainment doing differently in licensing than other video game publishers? We see real opportunity in building our franchises of the future and are focused on a multi-platform approach that drives fan engagement through gameplay, linear storytelling, esports events, and consumer products. This affords us immense opportunities, and Activision Blizzard Consumer Products Group’s goal is to provide fans ways to play, display, wear, and live the brands they love. Based on our iconic games, characters, and their stories, we work closely with best-in-class licensees to

Summer 2018

create high-quality, relevant merchandise for our global gaming audience. We create different kinds of experiences to engage fans beyond gameplay that offer meaningful touchpoints. How do you keep consumers engaged? We put a lot of work into building worlds and gameplay experiences that are genuinely fun and that players connect deeply with. We also recognize that a big part of the fun is discovering and being able to participate in and enjoy new content, so we’re constantly developing ways to expand our games and also extend our game worlds into new mediums. Blizzard’s Overwatch is a great example of this, with a growing cast of heroes and neww maps and seasonal events, as well as animated shorts and comics that help bring the story to life for different audiences. Activision’s Call of Duty has similarly grown with new content after each major release. As the games industry has moved from annual releases to more of a games-as-a-service model, we are well positioned to provide ongoing content with robust merchandising programs to support fans’ desire to deeply engage with their favorite brands. ••••

CALL OF DUTY The top-selling series in Call of Duty history makes its return with Call of Duty: Black Ops 4 this fall.

OVERWATCH

Overwatch features 25 unique heroes—but victory can only be achieved when heroes combine their powers and assemble into an incredible team.

CRASH Crash, the beloved ‘90s video game icon and everyone’s favorite marsupial, is back and ready to dance!

OVERWATCH LEAGUE The Overwatch League is the first major global professional esports league with city-based teams across Asia, Europe, and North America.

SPYRO Just in time for his 20th anniversary, Spyro is gliding to new heights this year in the Spyro Reignited Trilogy, a fully remastered game collection.

Summer 2018

The Licensing Book • 73

JEWEL BRANDING & LICENSING

Jewel Branding & Licensing (JBL) announces a range of new partnerships. Interior designer Stacy Garcia has a multi-category licensing program including furniture, carpets, lighting, and more. JBL will further extend the Stacy Garcia New York brand into additional home categories to be sold through higher-end retail channels and to introduce Garcia’s newest brand of affordable products, Stay by Stacy Garcia. Buenos Aires artist and graphic designer Car Pintos collaborated with Coca-Cola, Oster, and Brother. JBL already secured partners for puzzles, stationery, fabric by the yard, and luggage launching later this year. Categories available include apparel, accessories, stationery, calendars, gifts, and home. Evette Rios is an interior designer and TV host of shows including The Chew and Recipe Rehab. She is best known for her expertise in food, entertaining, and crafting, where she injects her Latin style with rich colors and bold patterns. Categories available include housewares, tabletop, home décor, craft, and kitchen textiles. EttaVee, by artist and social media influencer Jessi Raulet, is a brand known for hand-painted, colorful designs. Categories available for licensing include home, stationery, gift, apparel, fashion accessories, and more. New York Botanical Garden (NYBG) entered a co-branded partnership with Caswell-Massey to launch a line of bath and body products and fragrance utilizing the botanicals found at NYBG. NYBG also partnered with Fabricut’s luxury brand, Vervain, on a collection of home décor fabric with prints from NYBG’s Rare Book and Folio collections of the LuEsther T Merz Library. NYBG also recently signed Levinsohn Textile Co. for fashion bedding and Avanti for bath, both of which will launch later this year. Categories available include apparel, home textiles, food and beverage, and gardening products. The Rachael Hale brand features animal photography and has products in categories EttaVee Stationery including back-to-school, cards, calendars, stationery, and luggage. New licensees in the U.S. include Mega Toys for seasonal food gift baskets launching at mass retailers; TCG for puzzles that will launch later this year; and Inkology for back-to-school products that will hit stores later this year. Categories available for licensing include home textiles, apparel, gift, and plush. Scandinavian heritage brand Finlayson expands into fashion bedding, stationery, and fabric by the yard, all of which launch later this year. The brand is available for licensing in kitchen and bath textiles, rugs, stationery, gift, and more. Hang Ten is a surf and California lifestyle brand with the widely recognized “feet” mark. JBL secured a master license with home manufacturer CHF, which introduced a full assortment of bedding that launched on bedbathandbeyond.com last year. The program will expand with Bed Bath & Beyond and additional retailers this year, along with the launch of rugs from Kas Rugs. London-based design house Collier Campbell experienced major growth in the U.S. this year with launches across home categories including sheets, fashion bedding, bath towels, and beach towels. Additionally, a luggage partnership with licensee Planet Traveler will debut early next year. JBL seeks licensees in tabletop, bath, apparel, fashion accessories, and gift.   Hallmark will expand its exclusive collection of Catalina Estrada products, including greeting cards, gifts, and accessories available at Hallmark Stores and other retailers nationwide. Estrada also partnered with rug company Feizy on a colorful rug collection that will hit stores later this year. Categories available for licensing include apparel, fashion accessories, tabletop, and home décor.   Jewel Branding’s other partnerships include Cottonflower Studio, Nikki Chu, Lily & Val, Rongrong, Kendra Dandy of Bouffants and Broken Hearts, Mia Charro, Clairebella, Heather Land, and Shell Rummel. Rachael Hale

74 • The Licensing Book

Summer 2018

PINKFONG Pinkfong is a digital preschool educational channel on YouTube. Pinkfong also builds and services mobile apps. In addition to digital content, Pinkfong also produces live shows and brings consumer products to market. Pinkfong launched its licensing program in Korea last year, bringing to market 252 items the first year. It will launch more than 400 new items in the first half of this year, including baby products, toys, books, apparel, and furniture. Key licensees include Nestle for ice cream in Malaysia and LG Household & Health Care for baby products in Korea. Pinkfong supports marketing through direct-to-consumer communication, which includes YouTube, social media, and more. It also collaborates with its licensees to produce original video content featuring licensed products. With the Pinkfong Wonderstar preschool animation series in production, the licensor is looking for global licensing partners across a wide range of product categories.

ZOLAN AGENCY Zolan Agency will launch international art brands at this year’s Licensing Expo. Kristin Schillaci, a photographer whose fine art prints are sold throughout the U.S., has a new “Vanishing America” collection. She recently signed with Laser Reproductions for nostalgic and metal wood signs. European character brand Anekke is licensed in categories including fashion, accessories, home, stationery, and collectibles throughout Europe, Korea, Russia, and the U.S. Anekke also recently signed with the Bradford Exchange. Ale Puro creates contemporary images of kids that are published and sold throughout Europe and in fine art galleries. Puro is new to the U.S. market and his works are available for publishing, stationery, gifts, and children’s products. Dustykids has more than 100 licensees and 16 co-brands, including a new cobrand with Champion sportswear for the Asian market. Italian landscape photographer Enrico Fossati offers fine art prints sold in North America via social licensing and galleries. Designer Jeff Clay offers his apparel lines for beach and boys’ sports in his Kid Neptune and Bee Bop sports collections. New for the licensing market will be swim rash guards and an expansion of his apparel collections. American illustrator Mark Ludy created a volume of paintings for puzzles and children’s books. His works are self-published and sold throughout the U.S. Donald Zolan continues licensing its co-branded programs with John Deere and Int’l Harvester. Recently signed licensees include Precious Moments and Laser Reproductions for nostalgic signs and ornaments.

Zolan Brand Nostalgic Metal Sign

76 • The Licensing Book

Summer 2018

DR. SEUSS ENTERPRISES Dr. Seuss Enterprises (DSE) is the official licensor of all things Dr. Seuss. Highlights for this year include the 60th anniversary of the book The Cat in the Hat Comes Back, new episodes of the PBS series The Cat in the Hat Knows a Lot About That!, and The Lorax stage show, which will debut at the Children’s Theatre Co. in Minneapolis and The Old Globe in San Diego. DSE will also launch a new reading program, Dr. Seuss’s Word Challenge, which will challenge kids across the U.S. to collectively read more than 20 million words over the summer. The reading program will be supported by products, sweepstakes, and social media. DSE will cap off the year with the release of The Grinch, a full-length, 3-D, CGI-animated film from Illumination, which will hit theaters in November. DSE’s booth will feature the classic 45 Dr. Seuss books and 37 Learning Library books, published by Random House, with stories and characters that serve as the cornerstone of all current and future projects. Also on display will be licensed products such as toys, apparel, drinkware, accessories, and more through partnerships with Mattel, Hallmark, Funko, Hybrid, Vandor, Loungefly, TrendLab, Aurora, and others.

The Grinch

THE RAINBOW GROUP The Rainbow Group will showcase 44 Cats, Winx Club, Regal Academy, and Maggie & Bianca Fashion Friends. 44 Cats is a Rainbow production in collaboration with Antoniano Bologna that follows the daily adventures of four cats who are all part of a music band named The Buffycats. The four kittens are homeless and find shelter in a garage, transforming it into a clubhouse. The cats deal with important themes such as tolerance, diversity, and acceptance. Winx Club is a show about the adventures of a group of fairies as they combine school life with battles against forces of evil. Series eight features 26 new episodes and will premiere next year to celebrate 15 years since the brand’s launch. Regal Academy is a show about the adventures of Rose Cinderella, a normal girl who discovers that Cinderella is her grandmother. Rose is enrolled at the fabled Regal Academy, where her fellow students include Hawk SnowWhite, Travis Beast, Joy LeFrog, Astoria Rapunzel, and LingLing Iron Fan, all of whom belong to the school’s founding families. A new season of the show is now on offer. Maggie & Bianca Fashion Friends is a live-action show that tells the story of Maggie, an American girl with a dream to become the world’s greatest fashion designer. She wins a scholarship at the Milan Fashion Academy, where she meets Bianca, a self-proclaimed Italian “princess.” The Moodboards, the band from the show, also entertain crowds on a sell-out live tour.

78 • The Licensing Book

Summer 2018

CREATIVE LICENSING CO. Creative Licensing Corp. will showcase a range of licensed film properties, including Halloween, which celebrates its 30th anniversary this October, as well as Ace Ventura: Pet Detective, Bill & Ted’s Excellent Adventure, The Terminator, Wet Hot American Summer, White Chicks, and more. New licensees include NECA for Evil Dead 2 action figures, Terror Threads for Halloween apparel, Galactic Gallery for Rambo posters, and Reef Entertainment for a Terminator game. Creative Licensing Corp. seeks licensees across categories, including apparel, accessories, gifts, novelties, collectible figures, housewares, home furnishings, décor, publishing, video games, and computer games.

INK GROUP INK Group’s Zafari is a new animated series created by David Dozoretz that tells the story of a group of animal friends that all have varying skins, patterns, and characteristics. NBCUni DreamWorks is the distributor for media rights, and a host of broadcasters joined the Zafari franchise across Latin America, Asia, and Europe. The series is linked with World Wildlife Fund (WWF), with each episode featuring a video aimed at educating viewers about the planet’s wildlife and wild places. INK Group will also present Masha and the Bear. The recently launched third season was acquired by channels in the UK, Italy, Turkey, MENA, France, Germany, Nordics, Asia, Greece, and elsewhere. The show also spawned two spin-offs—Masha’s Tales and Masha’s Spooky Stories. Ink Group also represents licensing for the Netflix animated show Beat Bugs, with a multi-territory partnership deal with Centa IP, which spans merchandising, publishing, promotions, and events. Each episode features a cover song made famous by the Beatles, by artists such as Pink, James Corden, Eddie Vedder, and The Shins. Ink Group represents the show throughout Europe (excluding the UK), Russia/CIS, and MENA, with an initial focus on toys, publishing, and apparel. Moonzy is a new Russian animated series that introduces young audiences to an alien who falls to Earth and finds a new home in a forest meadow. Moonzy is produced by director Sergey Selyanov and is a top-rated show on the Karousel channel in Russia. Media sales for Moonzy have already been achieved in the U.S. with Janson Media for Amazon Prime and HappyKids OTT channel, as well as in Israel with HOP and in Turkey with Planet Sony. Mojicons is an animated show that reveals the behindthe-scenes world of the internet, where the Mojicons live. Mojicons are the emoticons that populate emails and text messages. When a mysterious digital villain steals the “@” symbol, all electronic correspondence grinds to a halt and the Mojicons must go on a quest to restore their system. The show was picked up by broadcasters across 100 countries. A Mojicons movie was previously launched in France, and one more is now ready for release.

Zafari

80 • The Licensing Book

Summer 2018

20TH CENTURY FOX CONSUMER PRODUCTS

Twentieth Century Fox Consumer Products (FCP) will showcase a portfolio of licensed film and TV properties. Blue Sky Studios’ Spies in Disguise is an animated comedy set in the globe-trotting world of international espionage and features the voices of Will Smith and Tom Holland. Spies in Disguise merchandise will be available next year and includes an assortment of spy gear, games, books, puzzles, apparel, accessories, home, plush, and vehicles. This year, FCP will unveil a licensing and retail program to celebrate the Wonder Wharf seaside amusement park showcased in Bob’s Burgers. FCP will celebrate National Cheeseburger Day in September with key Bob’s Burgers partner, BoxLunch. The collaboration features an assortment of products while raising money for Hunger Awareness month. FCP partnered with Buffy the Vampire Slayer licensees for a yearlong initiative that features fan-centric activities, including “Slay Day” and a “Slay Your Summer” campaign. Key licensing and retail partners include Funko, ACDC, Ripple Junction, and more. FCP commemorates the 25th anniversary of The Sandlot with placement in mass and specialty, a broad collection of partners, and an assortment of anniversary merchandise. FCP partnered with Major League Baseball (MLB) for authentic Sandlot merchandise. The upcoming Avatar sequels will feature a worldwide publishing deal with Penguin Random House for a range of books across adult and children’s formats in multiple territories and languages. Licensing for The Simpsons portfolio continues to grow worldwide, including sports and outdoor products from Havaianas, Penny Skateboards, and State Bicycle Lifestyle. New global partners for The Simpsons include a Krispy Kreme promotion in Australia; Sprayground for backpacks; Finger in the Nose for apparel; and an expanded global footprint across fast-fashion retailers. Licensing opportunities are also available for two Fox studio anniversaries: Die Hard celebrates its 30th anniversary in July, and The X-Files celebrates its 25th anniversary in September.

Summer 2018

The Licensing Book • 81

ATLANTYCA ENTERTAINMENT Atlantyca Entertainment will showcase its roster of properties, including Geronimo Stilton Classic, Geronimo Stilton: The Animated Series, Bat Pat, H2O Mermaids Adventures (agent for Italy), Scream Street (agent for Italy), and School of Roars (agent for Italy). Geronimo Stilton features three seasons that target kids ages 5 to 10. Adapted from the classic book series, the show follows the adventures of Geronimo Stilton, the famous editor-in-chief of the Geronimo Stilton Media Group. The third series in the franchise launched in 2016, and the first two seasons aired in more than 100 countries worldwide. In Italy, the series airs on Rai 2, Rai Gulp, and Dea Kids. The Geronimo Stilton Classic Tales book series targets kids ages 7 to 12. The books are sold in 150 countries worldwide and translated into 49 languages. The property features new covers and graphics, and focuses on the adventures of Geronimo Stilton. The company seeks to extend the brand to additional categories, including games, apparel, lifestyle, stationery, gift, and housewares. The Bat Pat property targets kids ages 5 to 9 and broadcasts on RAI, as well as Netflix and Amazon. The series follows Bat Pat, a funny Bat who lives with the Silver family in Fogville, a small town that is home to supernatural creatures. The second season is currently in production. School of Roars is new to the company’s portfolio of brands and targets kids ages 3 to 6. Launching this spring, the series follows the mini monsters’ first year of school and their experiences. Atlantyca Entertainment seeks partners for all categories. H2O Mermaid Adventures is an animated series that targets kids ages 6 to 10. The series follows the daily lives of a group of teenagers who magically transform into mermaids whenever they touch water. The company seeks partners in all categories. Scream Street is a comedy horror series that targets kids ages 4 to 8. The animated series currently broadcasts on Rai Gulp and follows teen werewolf Luke, who is joined by zombies, vampires, mummies, witches, and other monsters.

SELFIES Howard Robinson’s Selfies, based on the concept of animal images coupled with the craze for taking selfies, expanded into several new categories and territories. Selfies partnered with Butterfly-Effected GmbH to design a mobile app and watch faces that will be available in app stores this spring. Other licensing partners focus on homewares and soft furnishings, such as Brumlow Mills, with a range of accent rugs and carpets, and Klaus Herding GmbH, with bedding and cushions. The Mountain expanded into many new products including blankets, throws, cushions, and pet beds. Walltastic features wall murals and wall stickers in custom designs. Trademark Global signed for a range of box canvases and metal prints. Agreements have also been signed with Reinders Posters, Karto Finland for office stationery and calendars, Bamses Bollar Sweden for gift items, Roberts Direct for tobacco tins, and C&S Products for mugs, bags, and coasters.

82 • The Licensing Book

Summer 2018

MARKETING MEMO

FIVE MISTAKES MARKETERS CAN’T STOP MAKING by NORTY COHEN, author, The Participation Game; founder and CEO, Moosylvania YOU HAVE A PRODUCT OR A CONCEPT THAT THE world is ready for. You want to tell your story. You want to share your brand. You are ready to let it fly… you’re sure about that? There are a few common recurring issues that actually have simple fixes if marketers would simply take a breath and see it from a few thousand feet up. With all of the tools that are at marketers’ disposal, and the ability to see their words in print and video instantly, a false sense of security seeps into their minds. Just because a brand says something, doesn’t mean the consumers care. The multiple levels of brand guidelines that drill down to specific thoughts a marketer wants consumers to have doesn’t guarantee that they will. What it does mean is that marketers get a front row ticket to a major sporting event: The Attention Bowl. The key is that no one gets more than eight seconds. Now, amplify that times the number of consumers. Marketers compete with everyone’s content, not just other brands. A brand’s voice is not the amount of money invested to market a category divided by the brand’s spend, it’s a brand’s marketing share versus what everyone else does to get attention. “Attention is the new currency” is a phrase that was coined by Howard Tullman in Chicago several years ago. Tullman meant that attention is the most valuable commodity in our future. It is hard to come by and worth trading on. There is a bright side, though—what if marketers worked just as hard to give attention as they do to get it? It’s cheaper to give than it is to get. This should be a wake-up call to marketers to stop and think before they make the same mistakes over and over again. Below are five common mistakes that marketers can’t stop making.

CONSUMERS CARE ABOUT THEIR OWN STORY Brand marketers fall in love with their manifesto. It’s a bad habit to serve TV spots and brand video content without joining the consumer conversations first. It’s like handing out plates of food to people in a restaurant without asking about their taste preferences.

Summer 2018

CONSUMERS ARE ON SOCIAL PLATFORMS TO ENGAGE WITH FRIENDS, NOT BRANDS Moosylvania research shows that only 3 percent of consumers go to social platforms to engage with brands. The remainder join to connect and stay in the know with friends and family. Consumers feel the need to have friends of friends talking about them. It’s not about the target market; it’s about the target’s target.

YOU ARE MARKETING TO A MARKETER Consumers spend as much time marketing themselves as marketers spend marketing to them. According to Moosylvania research, consumers will spend half an hour to two hours a day creating and posting content. The trick is for marketers to find a way that their content can help the consumers that are posting.

THE “DIGITAL EXTENSION” IS AN EPIC FAIL The use of TV to get an idea out first is long gone. When a consumer will either fast forward commercials or be too distracted on their phone, it is unlikely that he or she will see the TV spot first. Don’t frame a marketing strategy around a dying medium.

SOCIAL CONTENT WITHOUT METRICS IS A BAD INVESTMENT Creating content buckets and pushing out monthly themes is great, but there also needs to be iterative learning. If marketers do not work toward two-way conversations, they may as well be talking to themselves. Just like any other investment, audiences and engagement need to grow. Hold your agencies and your internal teams accountable quarterly. ••••

Norty Cohen is CEO and Founder of Moosylvania, the St. Louis-based ad and creative agency known for its annual research and data on the Top 100 global brands. Cohen shares his insights and research at events throughout the U.S. every year, and for the first time will publish his research in the upcoming book, The Participation Game. Prior to starting Moosylvania, Cohen was the COO of Zipatoni.

The Licensing Book • 83

OUTSIDE THE BOX

LICENSING A BRAND IN 360º IS NOT WHAT YOU THINK by TED MININNI, president and creative director, Design Force IT’S STRIKING THAT IN OUR CONVERSATIONS WITH emerging property owners who wish to license their brands, the same goal crops up again and again: They envision licensing their properties in as many categories as possible to achieve a 360-degree brand experience for their fans. The thought process is that if licensed apparel, décor, toys and games, and accessories proliferate in the marketplace, brand fans will be immersed in the property 24/7, but that’s not realistic. Even the most ardent fans don’t consume products in every category that bear the visual assets of their favorite properties. The rush to license a property in too many categories inevitably leads to the emergence of cheesy items, market saturation, and brand fatigue. Kids, like adults, know when they’re being played to, and will shun an overtly commercialized property to which they attach deep meaning. When that happens, the brand rapidly begins to lose its cachet. CATCHING FIRE In this digital age, the newest properties can achieve fame quickly thanks to the potential to reach millions via YouTube shorts, gaming, and the endorsement of obscure characters favored by influencers on social media. The seemNat Geo’s Geno 2.0 ancestry testing kit ingly overnight success of some brands, as well as the consistent growth of others over a short period of time, leads brand owners to enthuse over the idea of licensed consumer products as the driver to achieve immortality and long-term commercial success for their properties. However, brands are built systematically, over time, and with fully developed strategies that use licensing in a selective manner and in alignment with the properties’ core assets. The licensing of consumer products is one tool among many, and companies shouldn’t be rushed into it until a property is mature enough. Wise marketers understand that licensing consumer products isn’t going Nat Geo’s Encounter exhibit in Times Square to achieve a 360-degree

84 • The Licensing Book

brand experience all by itself. An effectively designed experiential plan for a property is all about making the brand accessible to its fans with engaging content. That content is available on multiple platforms with which fans can interact at the times of their own choosing, with live entertainment being the ultimate experience, if well-conceived and executed. Engaging content should consistently represent the brand and its values in a faithful manner. Just because a property for kids centers on entertainment and play doesn’t mean that it shouldn’t offer a deeper meaning. This is the connective tissue that forms lasting relationships between people and brands. Brand owners can easily find out what matters most to their fans by tapping into social media. That, in turn, will help them to know which of their brand assets should become a part of their library of licensing visuals. It should also help them to seek out consumer product partners in categories that align best with their properties. BEST IN CLASS Nearing its 130th anniversary, National Geographic (Nat Geo) can teach many brand owners worldwide a lesson about how to achieve the ultimate 360-degree branding strategy. The property has gone well beyond its iconic yellow-bordered magazine in order to interact with its audience on multiple platforms. Print and digital magazine formats reach 54 million adults worldwide in 35 languages, as well as 4 million kids with content offered in 15 languages. Nat Geo counts 316 million fans across its active social media platforms and the brand is ranked No. 1 on Instagram boasting 100 million followers. In total, National Geographic reaches a staggering 730 million consumers in 172 countries each month. National Geographic has always maintained strong core values celebrating the scientific exploration of our planet, the oceans, outer space, travel, nature and conservation, as well as fascinating cultural studies of people from around the world. Its mission is succinctly stated on its website: “The National Geographic Society is a global nonprofit organization committed to exploring and protecting our planet. We fund hundreds of research and conservation projects around the world each year and inspire new generations through our education initiatives and resources.” Avid fans of the brand place additional value on their magazine subscriptions, purchases of licensed products from catalogs and e-commerce, travel programs, and

Summer 2018

location-based entertainment, all of which support Nat Geo’s mission. Nat Geo presents a great example of a strong 360-degree experiential strategy, but like the most successful properties, the brand isn’t satisfied. In a great move in the fall of 2015, Nat Geo and 21st Century Fox solidified their 18-year collaboration to form National Geographic Partners, combining every aspect of the brand’s consumer outreach via traditional and digital media, licensing, entertainment, and travel activities. This has become the springboard for Encounter, a permanent exhibit which opened in October in New York City’s Time Square. The first exhibit, dubbed “The Ultimate Undersea Experience” brings adults and kids alike into the depths of the South Pacific for 45 minutes in an unforgettable, immersive experience. Eventually, the ocean-based exhibit will be succeeded by other brand-based experiences. On the outside of the building as well as the inside, stunning visual images for which the magazine became famous for decades are framed within the yellow iconic border that immediately recalls National Geographic Magazine. In fact, the yellow border appears on Nat Geo’s own network, its stores, its travel and gift catalogs, and on licensed consumer products. Nat Geo licensed interesting and unusual products for its catalogs and e-commerce site from around the world in conjunction with the ethos of the brand. It also hired three executives to explore new global licensing opportunities. Current, tantalizing examples of branded consumer products are totally in alignment with Nat Geo’s DNA. Geno 2.0—an ancestry testing kit that makes perfect sense for this property—is co-branded with the logos of Nat Geo and Helix, a world-class laboratory of advanced genetic testing. The Geno 2.0 Next Generation Helix Genographic DNA Ancestry Test divulges in-depth information to consumers who purchase it. But there’s more: Consumers can choose to participate in the Genographic Project by contributing their findings to a special database, helping Nat Geo scientists and researchers to chart a comprehensive map of human history. Total alignment. Parents seek out toys that teach their children and they’ve always known that they can turn to Nat Geo and its wealth of educational tools. But the brand upped the ante on fun learning experiences by giving kids ages 5 to 11 a “mission.” The Nat Geo Pley site invites kids and their parents to enjoy a new monthly adventure and subscribe to receive a “mystery box” filled with games, activities, and interactive lessons. The site states: “Each magical box presents a new mission to solve and teaches about our planet and incredible nature.” The proceeds of the mystery box sales go toward rescuing an endangered animal in a different part of the world. When play and learning merge in this manner, and when kids understand that they have a role in preserving animal life, it’s pure magic. It’s pure Nat Geo, too, and isn’t that the point?

Summer 2018

SUNNY DAYS Can any of us ever forget the happy Sesame Street theme song? It’s doubtful. The evergreen brand has continued to provide quality edutainment for decades. It has masterful merchandising because it continues to change and grow. Sesame Street Live! Let’s Party! stage show hit the streets in cities and towns nationwide. Not only do parents praise the content, but they also post pictures of their children posing with their favorite characters during a fan-favorite pre-show experience on the one and only Sesame Street. As Sesame Street creates a 360-degree experience for its multitude of young fans, whose parents are often life-long fans themselves, the brand is taking a mature approach to develop a new generation of licensed consumer products as well. For example, the new the Sesame Street for Nod collection is the result of a collaboration with children’s retailer The Land of Nod. Co-designed décor, playroom furniture, bedding, apparel, backpacks, and toys bring Sesame Street’s beloved characters to life by employing vintage and artisanal visual design elements. The collection brings the playful spirit of Sesame Street and The Land of Nod to life in a perfect co-branded fit. SMALLER BRANDS THAT COULD So, I know what you’re thinking. How many brands can achieve 360-degree branding and licensing in the manner in which these properties can, given the vast resources they can deploy? That’s a fair question. I’ll answer it in this way: Smart brand stewardship and effective licensing are more about a specific mindset than anything else. More modestly sized properties can use these principles to evolve and grow. Many of the hottest 360-degree experiential brands aren’t only properties from behemoths such as Disney, Marvel, or Hasbro. Smaller brands such as Shopkins, Paw Patrol, PJ Masks, and Ben 10 all show that they are masterful. Their licensing strategies are in alignment with their core values and are highly experiential. It’s important for brand owners to dream big and as their properties grow, they might consider what kinds of partnerships they can forge to keep their brands ever relevant, immersive, and evergreen. ••••

Ted Mininni is president and creative director at Design Force Inc., a package and licensing program design consultancy to the consumer product and entertainment industries. The goal of Design Force is to establish strong emotional connections with consumers and create powerful visual brand experiences that engage, excite, entertain, inspire, and influence consumers’ decision to buy. Mininni can be reached at (856) 810-2277. Visit designforceinc.com for more information.

Sesame Street products by The Land of Nod

The Licensing Book • 85

ROYALTY RATES:

THE ULTIMATE VALUE CONTEXT by WESTON ANSON, chairman; and EVAN LOKER, senior financial analyst; CONSOR International Asset Management ROYALTIES ARE AN OBJECTIVE, DATA-DRIVEN, measurable value indicator for intellectual property (IP). Not only are they an indication of value for individual deals, but when analyzed collectively as a group of royalties for a specific type of intellectual property, they also become a barometer of value, measuring over time the rise or fall in relative value compared to other forms of intellectual property. For example, royalties for software declined over time as trade secret royalties rose. A royalty rate is a representation of value for the underlying intellectual property, and will vary based on a range of factors, including prestige, utility, or ubiquity. Typically, the licensee is paying for one or more of the following: scarcity, uniqueness, utility, positioning, technology, speed, compactness, fashion, entertainment, function, ease of use, and more. The context of the royalty rate that is paid is the reflection of one or more of the above parameters, or a reflection of future uses that the licensee identifies. But it is always, after all, a representation of marketplace value as the licensee and the licensor perceive it. It is a willing seller in a licensing negotiation but—more importantly—a willing buyer that consummates a licensing contract. And as we find without fail, time and marketplace conditions will bring market value into line with market conditions. For example, as rights of publicity become a more frequently monetized asset, and as more A-level celebrities enter publicity endorsement games, royalty rates and celebrity endorsement fees may be held down—as the scarcity of A-level celebrities that are available in the marketplace decreases. As more individuals begin participating, the incentive to pay higher royalties to any one celebrity will diminish. The table to the left maps out average royalty rates for celebrity licensing Celebrity Licensing Royalty Rates over the past decade. As one can see, rates remained relatively flat over that time period. Again, it is self-evident that while celebrity right of publicity licensing remains very much in the forefront of marketing today,

86 • The Licensing Book

royalty rates did not increase. There is a second chart below that maps out royalty rates for estate-based licensing, which is increasing in popularity. The fame of deceased celebrities is being leveraged in a more active way than ever before. When deceased celebrities are used for licensed consumer products today, their estates command a royalty premium above what average royalty rates are for all consumer goods. However, we see a declining trend over the past decade in those royalties—as more and more celebrity estates make their imagery available to the licensing community.

Estate-Based Licensing

ROYALTIES CAN BE STRUCTURED IN VARIOUS FORMS There is a misconception that all royalties must be calculated as a fixed percentage of sales on an ongoing basis, which we constantly work to dispel. In general, there are two types of royalty agreements. Running royalties are fully paid licenses. The latter is simply one that entails a lump sum payment, either in a single upfront payment in the currency of the licensor’s choice, and/or a structure where two or three fixed fee payments are stretched over a period of one to three years. In either case, these payments are predetermined at the time of signing and represent the maximum amount the licensee shall pay during the term of the license agreement. In the alternative, which is observed in the majority of license agreements, a running royalty is paid, which consists of periodic payments on a monthly, quarterly, semiannual, or annual basis. In this scenario, a royalty can be calculated based on a variety of formulas. This can consist of the “standard” system of paying a percentage on either gross or net sales. Alternatives call for a sliding scale of percentage payments, while others

Summer 2018

call for a fixed monthly fee plus a percentage of sales. In other agreements, royalties are calculated based on an amount per unit. There are many other alternatives where royalties can vary with volume, as well as others that are expressed as a percentage of incremental sales. In the chart to the right, we present 22 alternative approaches. These are two parties committed to finding a way to make a royalty structure work for both of them to negotiate in any given licensing agreement. ROYALTY RATES VARY BY TYPE OF IP The fact that royalty rates vary may seem obvious to some, but it bears repeating. Clearly, the royalty for a patent will be different from that of a trade secret, a copyright, a trademark, or a right of publicity. Royalty rate trends and medians shift over time for each type of IP like a barometer that moves slowly across the dial with shifts in atmospheric pressure. Shifting conditions can lead to observations of the relative strength and importance of these major groups of IP. However, medians are just that: a middle point or average, not an appropriate rate for any individual piece of IP for any specific deal. We think it is useful to look at royalty rate trends for the five major groups of IP on a long-term comparative basis. Based on this premise, we plotted out royalty rate trends over the past 35 years, from 1981 through 2015. As a common basis for data selection, we used data from Royalty Stat, which specializes in collecting royalty rate information from publically available documents globally (with a heavy emphasis on North America). Some readers are familiar with their services, which are available on a subscription basis, or by acquiring royalty agreements on an individual purchase agreement basis. Our analysts plotted out royalty rates on a rolling five-year basis going back to 1981. This analysis was done for five major groups of IP: patents; trade secrets, know-how, and propriety information; copyrights; software; and trademarks and tradenames. We plotted the median royalty rates for each group in the charts on the next page. Some general conclusions include: • Over the past several decades, royalties for copyrights experienced a meaningful increase. In the same timeframe, royalty rates for software had a substantial decline. • As noted earlier in this article, right of publicity royalty rates are high and remained relatively stable. We have not been able to include a 20-year chart here because licensing activity in this area has not been monitored and reported for a sufficient period of time. • Median trademark and brand name royalties increased by approximately 50 percent over the last 30 years. This is not surprising given the increased use of trademarks as a licensing vehicle and the increase in hybrid or bundled licensing.

Summer 2018

In the “Patents” chart, we can observe that the rise in median trade secret royalties from 5 percent to just more than 6 percent for trade secrets in the period between 1986 and 2015 was not unexpected, particularly given both increased legal protection and usage of trade secrets as an alternative to patents. The flatness of the median royalty rate for patents is not unexpected, while average royalty rates for patents appear to be rising.

Alternative/Royalty Free Arrangements 1

Percentage royalty on sales

Per unit royalty rate

Fully paid-up license, also known as a single up-front payment

Annual flat fee

Annual fixed fee plus per unit payments

Annual cap on percentage or per unit fees

Fees vary per SKU

Cumulative cap on fees for each contract period (i.e., 3 or 5 years)

Fees declining over time

Royalties based on components of value

Royalties based on percentage utilization within a product

Fees plus royalties on new markets or new product developments

Fee, plus % for each new upgrade/design

Royalty on any increase in sales when applied to an existing product

Royalties based on profits or margins

Royalties (% or $/unit) declining with sales or unit volume

Royalty on sales less deductions for marketing costs, or other allocation of relevant expenses

Royalty on gross sales less direct manufacturing costs

Royalties on cost of product

Royalty with per unit and fixed fee elements

Cost-plus fee with contingent royalties

Tri-level or multi-level fees Single Component Fee Future Dependent

Tiered Fee

Results-based

Mixed Fee

The median royalty rate for copyrights has had a generally upward trend since 1986 when the median was at 4 percent and has since risen to 6.5 percent. In the early 2000s, rates jumped to approximately 10 percent. We believe the long-term median rate is between 6.5 percent and 7 percent. This reflects increased copyright licensing, not just in music, but also in art, fashion, and publishing. Software on the other hand, suffered the most precipitous decline of any IP group going from a median rate of 15 percent in 1986 to a median rate of 7 percent in 2015. This is attributable to a variety of

The Licensing Book • 87

factors, most notably, increased competition combined with open sourcing have depressed royalty rates for software in general. There was a slow and steady rise in median royalty rates for trademarks since 1986 with the median rising from 4 percent to 6 percent during that period of time—a 50 percent increase. While the median rose 50 percent, average royalty rates—particularly in consumer goods—are substantially higher than the 6 percent median. They show royalty rates averaging nearly 9 percent and rising to 12 percent to 15 percent level for certain consumer goods. TRADEMARKS: TWO DECADES OF UPWARD PRESSURE The median royalty rate for trademarks had steady upward pressure over the last 20 years. As seen in the chart to the left, the median royalty has increased 50 percent in the 20-year period. However, it’s useful to look beyond the median to see what the other data can tell us about trademark royalty rates. One must remember that the 20-year median data contained in the chart to the left tracks licensing of all trademarks on all products—ranging from AT&T license agreements for home communications accessories to Louis Vuitton accessories, and everything in between. Trademark licensing, particularly in the consumer goods area, is highly dependent on two factors to determine an appropriate royalty rate. First is the type of property, such as entertainment or character, fashion, nonprofit, celebrity, or estate. The second determination of an arms-length royalty is the product category, such as apparel, consumer electronics, hair and beauty accessories, or publishing.

88 • The Licensing Book

CONCLUSIONS We began this article by calling royalty rates the objective context of value—and indeed they are. The financial terms of a license agreement, or royalty rate, is a true barometer of IP value and represents the marketplace value of a piece of IP. A royalty rate is an objective, data driven, measurable, and quantifiable value that has been placed on the intellectual property in that agreement. What else do we know about royalty rates? • There is no such thing as an average or standard royalty rate. • Royalty rates vary by the type of IP. • There were major, discernable trends in the past 20 years. • While trade secret royalty rates are up, patent royalty rates are trending down. • Trademark royalty rates are trending upward, but vary by property type and category of product. • Copyright royalty rates increased over time, but copyright royalty rates are complex and multilayered, and the category itself has multiple components. • Right of publicity royalty rates were stable over the past decade, but the volume of use increases each year. • Not all royalty rates are based on sales percentage. • The changing terms and conditions of a license agreement can be more important, and more valuable, then the stated royalty rate itself. Finally, as with much in the world of intellectual property value, context and time are the main drivers in establishing fee structures in license agreements. We summarized what the current status of royalty rates and fee structures is in the world of intellectual property. Tomorrow’s context may change that. ••••

Weston Anson received his MBA (honors) from Harvard University, later working at Booz-Allen & Hamilton, then as vice president at Playboy Enterprises Inc., and then as senior vice president of Hang Ten International, prior to starting CONSOR more than 25 years ago. Anson is active with international IP groups (ABA, AIPLA, INTA, LESI, LIMA) and is an adjunct professor at the Thomas Jefferson School of Law. He authored seven books and more than 150 articles on IP. Prior to joining CONSOR, Evan Loker was a consultant in the private equity and consumer products industry. In his private equity consultant role, Loker led investment sourcing and business development efforts, and analyzed numerous business plans, models, and financial statements. In his consulting role in the consumer products industry, Loker led large compliance projects and developed new, proprietary analytical models and approaches using statistics. Since joining CONSOR, Loker has conducted analyses of multiple types of intangible assets and intellectual properties spanning the advertising and media, beverage and consumables, and consumer luxury discretionary industries. This analytical experience includes the creation of financial models, ad hoc analysis, deposition review, and valuations for corporate litigation and business/transaction purposes.

Summer 2018

EUROMONITOR

CRAFTING THE ULTIMATE CONSUMER EXPERIENCE Euromonitor Discusses Emerging Retailing Models in Licensing by Euromonitor International A NEW CONSUMERISM IS THE DRIVING FORCE behind a new trend, as today’s consumers are redefining their values and priorities while they increasingly focus on getting the most out of life. Time is now a crucial commodity in today’s world, and is something more people are willing to “buy.” Global consumers ranked “time with partner or spouse,” “time with children,” and “time for myself” as the top three factors important for happiness in Euromonitor International’s Global Consumer Trends Survey 2017. The new “experiencing is everything” phenomenon is having an impact across sectors, and in retailing, it is the shopping experience that counts. An increasing number of licensors, licensees, and retailers place more emphasis on the consumer experience as a vehicle for boosting sales and margins to address this trend.

CONSUMERS WANT “EXPERIENCE” WHEN SHOPPING Retailers are creating more intimate experiences with consumers, providing a seamless shopping environment, whether online or in-store, and personalizing their offering. In today’s fast-changing retail environment, retailers do not want to be perceived as just stacks of shelves. As for licensors, experiential retail keeps fans engaged with their franchises. It could be argued that the shopping experience is somewhat less of a concern for consumers when grocery shopping. However, when it comes to discretionary spending—which also includes licensed merchandise—

90 • The Licensing Book

priorities shift and consumers increasingly expect an “experience” when visiting a store. They demand much more from a retailer. In order to address this, many retailers are rebranding the experience, making sure that their customers have a good time while shopping. NEW CONSUMERISM MEETS “RETAILTAINMENT” Disney, the world’s largest licensor, is seen as the pioneer when it comes to in-store experience. “Story-telling” and “we are experience” are well-embodied in its retail strategy. This enables Disney to create and— more importantly—maintain a buzz around its properties throughout the year in an environment where a number of licensors experience that excitement only when there is a related movie launch. Nickelodeon, one of the world’s biggest licensors, and owner of the SpongeBob SquarePants, Paw Patrol, Teenage Mutant Ninja Turtles, and Dora the Explorer franchises, has opened new, single-brand stores in recent years as part of its global expansion strategy. The latest addition to the chain is its outlet in Dubai Mall, which opened in August 2016. In November 2016, in time for the release of Warner Bros. Entertainment’s highly anticipated movie Fantastic Beasts and Where to Find Them, as well as the crucial Christmas shopping season, a new Harry Potter store opened at Europe’s busiest airport, London Heathrow. With this retail concept, the franchise leveraged three important elements simultaneously, which has proven to be very successful: Experience, story, and fun. The new store came in addition to the world-famous franchise’s single-brand store at King’s Cross Station, London, which opened back in 2012. In addition to Harry Potter, the company also owns the Batman, Superman, Wonder Woman, Tom and Jerry, Scooby-Doo,

Summer 2018

and Looney Tunes franchises. In line with new consumerism and retailtainment trends, licensing businesses are getting more creative in their efforts to bring shoppers into stores. One method of doing so is to incorporate entertainment into the instore shopping experience, encouraging consumers to

“

In line with the new consumerism and retailtainment trends, licensing businesses are getting more creative in their efforts to bring shoppers into stores.”

Summer 2018

spend more time in stores. In September 2016, luxury sports car manufacturer Aston Martin opened its first brand experience boutique in London’s upmarket Mayfair district. What makes this store different from its other outlets—which sell a variety of licensed merchandise from apparel and accessories to homeware and toys—is that Aston Martin utilizes its new brand experience boutique as a platform to engage with its customers further. The new store hosts exclusive events, such as design master classes, art exhibitions, and dinner series, in an effort to build its franchise into a lifestyle brand. Driven largely by the “experience” trend, the single brand format has become more popular in licensing in recent years. There are many advantages to this format, including helping to build brand awareness as well as maintaining direct contact with their customers. While the primary focus of such stores has typically been promoting the brand and the necessary interactivity to create a “wow” feeling, there is a trend that these stores are becoming more and more retail-focused with many new openings. ••••

The Licensing Book • 91

TACKLING A GENDERSPECIFIC MARKET Why the License Market Is So Gender Specific and What We Can Do to Combat It by AXEL DAMMLER, managing director, iconkids & youth A LOOK AT THE CURRENT HYPE LICENSES IN France, Germany, and the UK in our quarterly study Kids License Monitor shows a clear picture: boys and girls live in separate worlds. Across all three markets, just a few themes manage to cross the gender gap, including Harry Potter, The Simpsons, and Minecraft in the UK, or Minions in Germany and France. All other top licenses are highly gender specific and are almost exclusively considered “girls only” or “boys only.” This has less to do with design codes than you might think, and much more to do with how children connect with a theme. Most franchises are driven by their central characters, and there is a fundamental difference in the relationship that boys and girls build with their heroes and heroines. Boys look for characters with potential for identification: They want heroes who can do something they aspire to do. It is all about status and superiority, whether it’s a top football player like Christiano Ronaldo or a superhero like Iron Man. These “role models” have certain abilities that boys would love to possess and are extremely successful and acknowledged for what they do. This gives them the status that boys yearn for, too. Boys dream of taking Ronaldo’s or Iron Man’s place and winning their battles—and in turn, they identify with them. Girls, however, typically get drawn in by social situations rather than by traits or abilities of the main character. They see their world and relationships and want to be part of it. Girls typically don’t want to take the place of the main character, but rather be best friends with him or her and embrace that world (e.g. pretend you’re a princess living in a castle, too). This process is not about identification, but about projection. This difference also explains why girls can accept a male character (you can be best friends with Harry Potter), while boys

92 • The Licensing Book

struggle with female characters because they cannot identify with them as well as with males. But the different license preferences of boys and girls are obviously also rooted in design codes. Children have to learn so much, and one important task is to develop an individual identity. The first step in this process—and effectively the first fact children know about themselves—is their sex. Once their self-concept comprises this information, they want to be addressed correctly; any boy will hate it when someone addresses him as girl and vice versa. So boys and girls make sure everyone gets the point: They demand gender specific codes to show their sex: Girls observe their environment and learn “pink=girls”, so they ask for pink. However, these codes are not fixed and universal: They change like fashion, but not as quickly. In Germany for example, pink was viewed as a color for boys in the early 20th century because it was dynamic, while light blue was seen as a soft and tender color more suited for girls. But no matter what codes society agrees on: girls and boys will pick them up because they will always want to express who they are. Sooner or later, today’s pink will be replaced by something else (Frozen provided some cure for the pinkish disease already!), but the basic principle is always the same. For the licensing business, this means that “gender-neutral” franchises will find it hard to prevail, because there is so much gender-specific competition around and these specific themes serve the fundamental needs of children much better. But, there is a way out of the gender issue. Minions and The Simpsons occupy both genders because they are “just” funny. SpongeBob and Harry Potter convinced girls with their social settings, while the boys were engaged by the execution or the action. Pokémon features action and fighting for the boys, but also social caring for the girls. Similarly,

Summer 2018

Market Status of Licenses - Top 10 Licensed - Hype Status Based on waves III/2017, IV/2017, and I/2018

The licensed properties that are most desired for use on products for kids ages 4 to 6 years old in the U.K.,

Germany, and France. For example, 82 percent of British boys consider Spider-Man to be the most desired license, while 90 percent of French girls consider Frozen to be the most desired license.

4-6 years old

Spider-Man

Cars

Fireman Sam

Minions

The Incredible Hulk

Minions

Spider-Man

Batman

Spider-Man

Superman

Minions

Hot Wheels

Batman

Superman

Paw Patrol

LEGO Ninjago

Hot Wheels

Batman

Paw Patrol

The Avengers

Dragons

Star Wars

LEGO Ninjago

Captain America

Blaze & The Monster Machines

Mickey Mouse

The Avengers

4-6 years old

4-6 4-6 years years old old

Princess Rapunzel

Frozen

Disney Princess

Princess Rapunzel

Disney Princess

My Little Pony

Disney Princess

Princess Rapunzel

Frozen

My Little Pony

Moana

Trolls

Mickey Mouse

My Little Pony

Moana

Minnie Mouse

Sofia the First

Minnie Mouse

Barbie

Minnie Mouse

Minions

Hello Kitty

Ben & Holly’s Little Kingdom

Sofia the First

Peppa Pig

LEGO Friends

Lauras Stern

Mickey Mouse

License covered in:

III/2017

Minecraft allows girls to build worlds while boys can fight. Frankly spoken, the gender-specific license market we see today is mostly a consequence of too many companies going the easy way. It is so much easier to create just another superhero or another lovely fairy than to think about the next SpongeBob or Harry Potter. Personally, I would love to see more of these, because it helps kids grow up in a world where gender roles become more diverse and open. ••••

94 • The Licensing Book

IV/2017

I/2018

Axel Dammler is managing director of iconkids & youth, Germany’s leading kids and youth research agency. He has worked extensively as researcher and consultant for both licensors and licensees in categories ranging from fragrances to toys and food. The quarterly study Kids License Monitor provides detailed data for key European markets UK, France, and Germany and is available for LIMA members at a substantial discount.

Summer 2018