Nickelodeon

7 Takes on Licensing Expo 2019

Tailor-Made for Licensing: Ira Mayer’s Three Must-See Products at NY Toy Fair

NEW YORK, NY; FEBRUARY 18, 2019—If it’s all about the elevator pitch, these three new products from three first-time exhibitors explain themselves instantly. As do licensed applications. All exemplify classic play value, each with a neat twist. Check them out in person before you leave Toy Fair, or online.

#1. The Door Fort, from Cortex Toys (booth #4245). Inventor Jesse Darr loved building forts as a kid — and now that he has his own child, remembers how his parents would be left with putting everything away once he went to bed. The Door Fort is his answer. Hangs on the door. Open the door, fold it out to three dimensions, Velcro to the door post. Voila!

One major license is already in the works. Easy to picture Darr’s generic Princess Castle as, say a Disney Princess castle, no? How about Thomas? Pretty much name your property. Contact: John Cowan, MD, CEO/Founder, Cortex.

#2. Cubcoats (booth #5974). It takes 13 seconds to demonstrate how a plush character pillow transforms into a machine-washable fleece hoodie — and back again (OK, back takes 16 seconds).

In addition to original designs, they have Mickey, Minnie, Minion, Marvel, and Troll versions, and they’ve just signed Nickelodeon. The product was exclusive to Nordstrom for fourth-quarter last year, but is now available for wider retail. This is beautifully executed. Contact: Brydie O’Neill, VP Product Development; Angela Michael, Business Development/Sales.

#3. VertiPlay Marble Run by Oribel (booth #4135). Yes, it’s another marble run, but with a literal twist: Base boards are wall-mounted and tracks posted on the base pieces. marble-run-vertical-photo.jpgIt’s even decorative, and  the tracks can be moved into different designs. This is so new it’s not on the website yet, but Singapore-based Oribel has offered other vertically-mounted toys for toddlers for several years. This is clearly for older kids in a bedroom or playroom. Contact: Smriti Modi, Growth Hacker (great title!).

How Far Will Nickelodeon Take Its Sports Identity?

NEW YORK, NY—MARCH 7, 2016: Is Nickelodeon carving out a new hybrid major league sports-entertainment genre for itself? Others have made efforts in this arena, but none on a platform as wide as Nick’s.

Nick went through a long dry spell as far as developing new, licensable IP. Not for lack of trying, but it isn’t an easy (or scientific, no matter how much testing) process.

Now Nickelodeon is expanding its two-hour Nicktoons sports programming block with the introduction of two high-profile new series produced by Rob Drydek, and one unique licensing program combining a sports figure and a hit animated property:

  • Crashletes is a video clip series hosted by New England Patriots’ player Rob Gronkowski;
  • Jagger Eaton’s Mega Life is a reality series starring teen skateboarder Jagger Eaton;
  • NBA star Carmelo Anthony, aka Melo, is behind an exclusive-to-Macy’s TMNT x Melo fashion line built around the Teenage Mutant Ninja Turtles.

Asked whether Nick will be able to create licensed merchandise incorporating Gronkowski and Eaton, the network’s Pam Kaufman told me at the Nick Upfront that they certainly hope to. “We’re figuring that out.”

turtles_x_melo_Joint licensing of sports and entertainment isn’t a new idea, but TMNT x Melo carries the concept several steps beyond the usual Warner Bros. or classic Disney characters on jerseys, teddy bears, and bobbleheads.

Success will breed plenty of imitators; that’s inevitable. But Nick can use a concept that has built-in renewability; its mix of sports and entertainment can expand with new athletes and be applied to new hit properties as they emerge.

It’s 17 years since SpongeBob SquarePants debuted on Nickelodeon. Sixteen years since the first Dora the Explorer episode. It wasn’t until 2012 that Nick revived TMNT, and 2013 that Paw Patrol began its run and that the revitalized Power Rangers re-emerged in their 20th season as Power Rangers Megaforce.

From a licensing perspective, that left Nick with a more than decade-long lull where, because there was no new breakthrough animated IP, the network’s consumer products division had to do its best reinventing SpongeBob and Dora to carry it. Warner Bros. has faced similar issues over the years, with DC Comics (Batman, especially, but Superman as well — even in non-movie years), Looney Tunes, Tom & Jerry (at least outside the U.S.) and other classics tiding them over.

“Cross-licensing, primarily involving character/entertainment properties along with leagues, teams, and/or players, has long had a presence in the sports sector,” wrote Karen Raugust last month in her excellent trend-rooted RaugustReports blog. “Going back at least to the mid-1990s, the four major U.S. leagues were partnering with classic characters such as Peanuts, Mickey and Minnie Mouse, and Looney Tunes.

“The trend,” Raugust noted, “tends to ebb and flow cyclically, but has been on the upswing lately, with characters from Hello Kitty and Tokidoki to Domo and Betty Boop all being featured with team or athlete imagery on a range of merchandise, in association with the leagues and/or their players associations. The technique also has expanded internationally; examples range from Sesame Street and the Australian Football League to Smeshariki and the Zenit St. Petersburg soccer club in Russia, to name just two.”

With few exceptions (Disney had an NHL/Phineas & Ferb deal in 2011, and there have been several crossovers in Europe), these deals are character rather than program-driven, and are often promotional rather than based on long-term consumer products campaigns.

As for Nick’s current stable of properties, Paw Patrol — produced by Spin Master with Nick and Canada’s TVOKids — is the big recent new hit property and the reconstituted Turtles and Power Rangers have proven resilient as shows and on retail shelves with licensed merchandise.

Whether Nick can parlay Gronkowski’s and Eaton’s live action shows into merchandise, or whether they and other athletes can be teamed, so to speak, with others from Nick’s animated stable to build on this niche, remains to be seen. Nick is well-positioned, though, to make it happen.

Ira Mayer, former publisher and executive editor of The Licensing Letter, conducts competitive research and consults for marketers; takes clients on retail tours; and offers courses on licensing to corporations and at colleges and universities. You can reach him by clicking on the “Contact” button above left.

Ira’s Fearless Forecast: Entertainment Licensing 2016-2017

NEW YORK, NY; DECEMBER 9, 2015—Over the next few days I’ll post some prognostications on various sectors of the licensing business. While I (and everyone else on the planet) have written plenty about Star Wars in recent months, that is unquestionably the story of the moment. So let’s start with a look at the impact Star Wars is having on entertainment licensing and where the market is headed.

Star Wars at Hudson News in JFK Airport Thanksgiving weekend

Star Wars at Hudson News in JFK Airport Thanksgiving weekend

Looking at 2015, Star Wars has been the best news in entertainment licensing and, assuming the movie performs as expected, will likely be the entertainment segment’s blockbuster for 2016 as well.

But Star Wars has also been the worst news in licensing for 2015, sucking the juice out of every other pop culture property this year, likely keeping even hot newcomers such as Nickelodeon’s Paw Patrol from realizing their full potential, and holding back other retro properties that have had difficulty gaining placement at retail, such as Iconix’s Peanuts. Minions has held strong. But Superheroes? Maybe their powers aren’t infinite, at least in the licensing universe (and maybe those powers were diminishing even before the Star Wars onslaught).

From Hudson newsstands at airports to Nordstrom’s children’s department to Walgreens, Star Wars is ubiquitous and has been since back-to-school.

Nordstrom boys clothing department at Old Orchard mall, Skokie, IL

Nordstrom boys clothing department at Old Orchard mall, Skokie, IL

I wasn’t monitoring the licensing business in 1977, but this is the movie credited with initiating the modern licensing business. Given the institutionalization of licensing today, and the Disney machine behind Star Wars now, we’re no doubt looking at a licensing blockbuster of a whole different order of magnitude.

Today, for manufacturers and retailers waiting to release merchandise with the new movie’s art — remember, so far, with a few notable exceptions such as the BB-8 Droid, it’s been all classic images — it’s a matter of waiting for the force to awaken and do its part.

What will the net effect be on entertainment licensing  for 2015-2017? Star Wars does not appear to be carrying the rest of the business up with it. Rather, it is displacing just about everything else. Still, in the aggregate it is more than compensating for others’ lost growth or stagnation, which is why entertainment licensing overall will show substantial growth for 2015 and probably 2016.

Licensing today is generally a matter of who are you going to knock off the shelf in order to get on. Star Wars is different, though: In addition to usurping others’ shelf space, Stars Wars found new distribution  (such as at Nordstrom and Hudson) that hadn’t been given over to entertainment toys, apparel and collectibles to this degree before. That is enlarging the segment as a whole.

If the movie does indeed perform as expected, Star Wars will also be the worst news in licensing for everyone else in 2016 and, for Disney, an even worse story for 2017. Why?

Walgreens, downtown Chicago

Walgreens, downtown Chicago

Once Star Wars merchandising runs its course — and it will run its course — Disney will have to replace the Star Wars licensing juggernaut with something else. Even though there’s another movie scheduled for 2017, the second release in a series never generates the same in merchandise sales (and rarely at the box office) as the first. If superheroes are still in style — and that’s a big “if” — Disney will have Marvel to fall back on. Or perhaps they’ll have another Frozen. But it’s hard to bet on those scenarios.

The good news is that once Star Wars does run its course, that should re-open the shelves to other entertainment properties, and there’s no dearth of those in the wings.

Ira’s Fearless Forecast: Retail sales of licensed merchandise based on entertainment properties in the U.S. and Canada will be up 7%-9% for 2015.

Ira Mayer, former publisher and executive editor of The Licensing Letter, conducts competitive research and consults for companies in the licensing business; you can contact him by clicking on the “Contact” button at left.

Nickelodeon’s SpongeBob Absorbs 100 New SKUs

Nickelodeon has about 100 new SKUs of SpongeBob merchandise in conjunction with “The SpongeBob Movie: Sponge Out of Water,” due February 6th. Nick’s Manuel Torres, SVP Global Toys and Publishing, estimates there are about 2500 SKUs for the entire SpongeBob line worldwide.

IMG_1439Coming off a soft year preceding the movie release, the company is hoping for a 2-3 time bump in merchandise sales this year over last, including international promotions.

Among the more unusual items added to the lineup for the movie: Scented pens, pencils, and markers, available at Justice stores, and a SpongeBob Movie Projection Watch being sold for $10 by Avon. The watch features changeable faces which can be projected out the side of the watch.

IMG_1440 IMG_1444