Published: June 23, 2011

aNb Media News, June 23, 2011

Compiled by: Nancy Lombardi

LIMA Announces Royalties Results

The Licensing Industry Merchandisers Association (LIMA) announced last week that year-to-year royalties generated from the sale of licensed merchandise remained fairly stable in 2010 at $5.065 billion despite ongoing softness in consumer spending, according to an annual Licensing Industry Survey by LIMA. Although the amount of royalties collected in 2010 from the sale of licensed product declined slightly, the positive retail results at the end of last year give cause for optimism and set the tone for 2011.

Anecdotal responses to the survey indicate a more positive business environment with indications that 2010 was a transitional year as the country started to rebound from the recession. Respondents noted that especially in the second half of 2010, decision-making and deal making began to increase. They also saw a steady increase of retail sales, licensing opportunities with new kinds of retailers, and a broader array of channels with significant progress seen with mid-tier, department stores, and specialty/big box retailers.

Nearly half (47 percent) of licensing industry royalty revenues are generated in the character segment, which includes characters from all portions of the entertainment business. This segment declined just 1 percent in 2010. Other major segments of the licensing industry include corporate trademarks/brands, accounting for 16.7 percent of the business, fashion (13.6 percent), and sports (12.7 percent). The music sector is the only category that showed an increase (4.5 percent), a result of strong sales of music merchandising tied to concerts and events as well as revenue from online and mobile devices, according to LIMA.

LIMA Awards Winners

Last week in Las Vegas, The International Licensing Industry Merchandisers Association (LIMA) announced its International Licensing Excellence Award Winners. All awards are based on calendar year 2010. In case you missed it during Licensing Show, the winners, by category, are:

ART
Best Art/Design Program: Victoria and Albert Museum (by Victoria and Albert Museum/V&A Enterprises)
Best Art/Design Licensee: Dom Pérignon (for Andy Warhol)

CHARACTER/TOY BRAND
Best Character/Toy Brand Program: Hello Kitty (by Sanrio, Inc.)
Best Character/Toy Brand Licensee: Hard Goods—Smart USA (for Hello Kitty)
Best Character/Toy Brand Licensee: Soft Goods—Loungefly (for Hello Kitty)

CORPORATE
Best Corporate Brand Program: Animal Planet (by Discovery Communications/The Joester Loria Group)
Best Corporate Brand Licensee: Shabby Chic for Simply Shabby Chic at Target

FILM, TELEVISION, CELEBRITY, OR ENTERTAINMENT
Best Film, Television, Celebrity, or Entertainment Program: Toy Story 3 (by The Walt Disney Company)
Best Film, Television, Celebrity, or Entertainment Licensee: Hard Goods—LEGO (for Harry Potter)
Best Film, Television, Celebrity, or Entertainment Licensee: Soft Goods—Awake, Inc. (for Glee)

SPORTS AND SPORTS-THEMED ENTERTAINMENT
Best Sports Program: NASCAR Team Properties (by NASCAR and Teams)
Best Sports Licensee: Jakks Pacific, Inc. (for Ultimate Fighting Championship)

PROMOTION
Best Licensed Promotion: Dove Glee (for All by Twentieth Century Fox Film Corp.)

RETAILER
Best Retailer: Boots (for Strictly Come Dancing)

OVERALL BEST LICENSED PROGRAM OF THE YEAR
Toy Story 3 (by The Walt Disney Company)

Licensing Show 2011 Company Recap

Listed below (in alphabetical order) is a recap of happenings with just some of the companies we met with last week in Las Vegas.

American Greetings:

  • Cherry Jam is the newest character to join the Strawberry Shortcake crew.
  • Wonder Heart Bear is the newest bear to join the Care Bears.
  • American Greetings is now representing the Hub series, the WotWots for licensing.

CBS Consumer Products:

  • The next Star Trek film is scheduled for 2012 and CBS is just starting to license the movie.
  • A Star Trek theme park is scheduled to open in Jordan in 2014. Why Jordan? Apparently King Abdullah II of Jordan is a huge Trekkie. In the late 1990s, he had a non-speaking role in an episode of Star Trek Voyager.
  • Jabot, a product line from the soap opera The Young & The Restless will launch on HSN and at Ulta stores.

Fox:

  • Simpsons 500th episode is scheduled for February 2012. Expect a year-long celebration targeting a variety of demographics.
  • Family Guy celebrating its “Something, Something, Something” anniversary in 2012.
  • Napoleon Dynamite to be made into an animated series in early 2012.
  • Next Ice Age film scheduled for 2012
  • Alvin and the Chipmunks along with the new girl-targeted Chipettes will have merchandising programs in 2011 and into 2012.
  • The next Diary of a Wimpy kid film is scheduled for spring 2012.

Hasbro:

  • Littlest Pet Shop is expected to air on the Hub in summer 2012.
  • Fashion programs have been developed for all of Hasbro’s key brands.
  • Battleship is expected to be in theaters May 18, 2012.

IMC:

  • IMC acquired ThinkFire Consulting, a market research firm.
  • Ziploc has signed a deal with Learning Curve for feeding products.

John Wayne Enterprises:

  • A global licensing program is set to be launched targeting mid-to-upper-tier retailers.

Lawless Entertainment:

  • Lawless has acquired the rights to Donny Osmond’s Puppy Love for the U.S. and Japan. A line of products will be created and Osmond is expected to do a lot of press to promote the line.

The Licensing Company:

  • Signed Budweiser as a client. . . in case you missed the Clydesdale on the show floor.
  • Announced its partnership with Jeep. TLC will begin announcing new licensees soon. TLC is targeting what it calls the “doers” and “dreamers,” two groups that are Jeep fans.

Mattel:

  • Pushing a global strategy that’s implemented on a local level for all its brands.
  • Fisher-Price has created a “Signature Style” for its brand. The high-end look has gender-neutral designs with red and blue accents.
  • Expect more stunts from Hot Wheels such as the Memorial Day Indy 500 stunt.
  • Hot Wheels Designed by. . . program featuring Dale Earnhardt, Jr. will have a complete range of products at Walmart this summer.

Skechers:

  • A licensing program is expected to be developed around Shape-Ups.

Sony:

  • Men in Black 3 is scheduled for Memorial Day 2012 with Jakks as the master toy licensee.
  • Spider-Man in 3-D is scheduled for July 3, 2012.

Universal Consumer Products:

  • Dr. Seuss’ The Lorax is expected to be in theaters on March 2, 2012. The licensing program will be handled by Dr. Seuss Enterprises.
  • The American Pie movie franchise continues with American Union in spring 2012.
  • Despicable Me 2 is scheduled for 2013.
  • The Fast and The Furious franchise movie no. 6 is expected in theaters in 2013.

Warner Bros.

  • The next Batman movie is expected July 2012. Mattel is master toy licensee.
  • Superman film is expected in Q2 of 2013.
  • There may even be a Wonder Woman movie in 2013.
  • DC Nation programming block is set to air on Cartoon Network in spring 2012.

Wildbrain:

  • Wildbrain is showing a property called Hello Maggot. The “Urban Outfitters-type” specialty property was one of the stranger things seen at the show. It’s not something that can be described. You just have to see it: www.purpleflavor.com

Wildflower Group:

  • Just Signed the Rock and Roll Hall of Fame for licensing.
  • Girl Scouts licensing program in development. One delicious collaboration is Thin Mints Friendly’s Ice Cream Cake in Walmart stores.

Zinkia:

  • The Spain-based company is staffing up its U.S. office to promote Pocoyo.
  • Two additional major U.S. retailers carrying Pocoyo products will be announced shortly.
  • Pocoyo means “Little Me.”

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