LICENSING EXPLOSION Despite a push toward original IP development, licensing is on the rise. by JAMES ZAHN, senior editor AS TOYMAKERS CONTINUE PUSHING toward the in-house development of original properties that can become evergreen staples with big profit potential, it’s impossible to ignore that we are living in a licensed world. The Toy Association dubbed it “Explosive Entertainment” when revealing this year’s top toy trends, noting that licensed properties represent around 30 percent of all toys sold in the U.S. Traditionally, properties from film and television have been the drivers, but we’ve turned the corner, and the road ahead is dotted with top licenses from every facet and fandom. We’ve identified six key trend categories to watch. THE CINEMATICS It’s a massive movie year, and that means equally massive consumer products launches at retail. While the prospect of creating tie-in products for the latest blockbuster is tantalizing, it’s also an area where caution and restraint are best suited. “Franchise fatigue” is an oft-touted buzz phrase that’s generally been proven false or irrelevant in terms of the box office. Marvel Studios is the shining example as it prepares to
open the 22nd entry in the Marvel Cinematic Universe (MCU) with the release of Avengers: Endgame this month. While audiences will gladly line up for a quality film, there’s a real concern for overkill at retail, especially with accelerated release schedules that create shorter windows to move product. The same applies to the overlap between competing projects that are vying for eyeballs and wallets, not just at the box office, but in the toy department as well. The LEGO Movie 2, How to Train Your Dragon: The Hidden World, and Captain Marvel have already made an impact at retail. Shazam!, UglyDolls, Pokémon Detective Pikachu, Toy Story 4, Aladdin, Godzilla: King of the Monsters, The Secret Life of Pets 2, Spider-Man: Far From Home, The Lion King, Dora the Explorer, The Angry Birds Movie 2, Spies in Disguise, The Addams Family, Sonic The Hedgehog, Frozen 2, Playmobil: The Movie, and Star Wars: Episode IX are just some of the other movies impacting the licensing front. One early disappointment was Paramount’s Wonder Park — a cautionary reminder that a $100 million budget and an
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A-list cast do not equal guaranteed success. The production was accompanied by a toy line from Funrise with endcap placement at Walmart. It opened to just $16 million at the box office, which was slightly more than expected. Still, there’s potential for Nickelodeon’s forthcoming animated series to turn Wonder Park into a winner down the line. THE STREAMING GENERATION The lines have been crossed, and it’s not just about YouTube anymore. Streaming is all about reaching an audience on every screen possible. That means traditional television; VOD; over-the-top (OTT) services such as Roku, Amazon Fire TV, and Apple TV; and yes, YouTube, where new licensing opportunities continue to be born. Ryan, the child star from YouTube channel Ryan ToysReview, is impossible to avoid. The accomplishments of his family and the team at pocket.watch are numerous, including dozens of licensing partners and a new series coming to Nickelodeon — but he’s far from alone. The Toy Book broke the news that Blip Toys partnered with YouTube family Tic Tac Toy for a whimsical line of collectibles, plush,