Royaltie$, January 2009

Page 1



Volume 4, No. 1

January 2009

Features 16 BY

LAURIE HAHN

18 BY

The Twilight Phenomenon

NANCY LOMBARDI

22 BY

Music Licensing: Licensor Roundup

LAURIE HAHN

20 BY

Licensing Keeps the Music Alive

Women Are a Dog’s Best Friend

CHRIS ADAMS

Departments

OBSERVATIONS & OPINIONS

PAGE

4

THE TICKER

PAGE

6

REAL DEAL

PAGE

8

PAGE

10

PAGE

12

ESSENCE

OF

MAVERICKS

26 BY

Pet Licensing: Licensor Roundup

CHRIS ADAMS

STYLE IN THE

MARKET:

ANDI RIORDAN-SCOTT

ROYALTIE$ MARKETPLACE: TATTOO JOHNNY PAGE 14

YOU’RE HIRED!

PAGE

32

CALENDAR

PAGE

34

PAGE

35

OF

EVENTS

ENDCAP

28 BY

PAUL NARULA

30 BY

The Great Outdoors

Outdoor Licensing: Licensor Roundup

PAUL NARULA

ON THE COVER: The licensing program for Summit Entertainment’s Twilight is managed by Striker Entertainment and Most Management. This year marks the 50th anniversary for the Motown brand. COVER BY DESIGN EDGE

ON THIS PAGE (CLOCKWISE FROM THE TOP): Campbell Associates

signed on Wylie to publish a line of ASPCA for Kids books; Jakks Pacific offers the Hannah Montana Plug It In & Play Game; and the Boys Scouts of America Case Mini Blackhorn is by W.R. Case.


PUBLISHED www.anb-media.com BY ANB MEDIA • Volume 3, Number 8

L

PUBLISHER ANDY KRINNER ANDY@ANBMEDIA.COM

by Andy Krinner

TWILIGHT P UMPS FRESH BLOOD INTO R ETAIL ike most parents, I encourage my children to read. This often

goes in one ear and out the other,

but this past summer my 16-year-old daughter actually asked me to take her to

the bookstore so she could find something to read. Once the debate over why she should go to the library rather than

the bookstore was through and I had sufficiently lost, I took her.

After checking the racks she was

drawn to a particular point-of-purchase

display that looked a little dark and gloomy from what I could see as I

thumbed through a couple of biographies. I really didn’t pay much attention.

She decided to try the book at the POP display, but really wasn’t sure she’d like it. But she was satisfied for the moment, so who was I to argue?

After we returned, I didn’t see her for

almost 28 hours. She got behind closed doors and did nothing but read. She powered through the book, which ran

400 pages or so. She insisted on being driven back to get the second book in the

series, which she also devoured in a day

or so. Books three and four soon followed and then she read all four again. Later on in the month, her best friend

came down to spend the rest of the summer with us. No sooner did she arrive

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ROYALTIE$ JANUARY 2009

when we noticed her nose now buried between the pages of these books my daughter had devoured. I’ve never seen anything like it.

The name of the first book is Twilight

and it has since become one of the hottest

properties out there for teen and tween girls. Who knew that teen vampires in high school could drive such interest?

After a little research, I found out

that Twilight was developing a licensing program. We immediately recognized this as a specialty property the likes of which we haven’t seen in a

while. If you’ve read at all about the cult-like following of this book series, you know that there have been nearriots at Hot Topic over a selection of Tshirts that ran out far too quickly.

There have been lines wrapped around

bookstores waiting for the next editions to arrive. Most recently, there has

been a feature-length movie that grossed $150 million as of December

ASSOCIATE PUBLISHER BOB GLASER BOB@ANBMEDIA.COM ADVERTISING MANAGER DAYNA KNEE DAYNA@ANBMEDIA.COM CONTROLLER MARY GROGAN MARY@ANBMEDIA.COM EDITOR IN CHIEF JIM SILVER JIM@ANBMEDIA.COM EDITORIAL DIRECTOR NANCY LOMBARDI NANCY@ANBMEDIA.COM MANAGING EDITOR CHRIS ADAMS CHRISA@ANBMEDIA.COM EDITOR AT LARGE CHRISTOPHER BYRNE CHRISB@ANBMEDIA.COM ASSISTANT EDITOR LAURIE HAHN LAURIE@ANBMEDIA.COM ASSISTANT EDITOR PAUL NARULA PAUL@ANBMEDIA.COM WEB MASTER ERIK KIECKHAFER ERIK@ANBMEDIA.COM WEB CONTENT MANAGER BRENDAN SANABRIA BRENDAN@ANBMEDIA.COM CONTRIBUTOR MATT NUCCIO MATT@DESIGNEDGE.NET HONG KONG REPRESENTATIVE TONY LEE SMART REGENT PRODUCTIONS LTD., 66–72 STANLEY STREET, ROOM 603, KAI TAK COMMERCIAL BUILDING, CENTRAL HONG KONG PHONE: 2815 0166 • FAX: 2815 6911 • SREGENT@NETVIGATOR.COM

PUBLIC RELATIONS REPRESENTATIVE JOSSLYNNE WELCH LITZKY PUBLIC RELATIONS, 320 SINATRA DR., HOBOKEN, N.J. 07030 (201) 222–9118 EXT. 13 • JWELCH@LITZKYPR.COM

14. While a property like this is not

INTERESTED IN A SUBSCRIPTION? CONTACT SUBSCRIPTIONS@ANBMEDIA.COM

blood into the retail community. Twi-

229 WEST 28TH STREET, SUITE 401, NEW YORK, NY 10001 PHONE: (646) 763–8710 • FAX: (646) 763–8727

considered mainstream, as a specialty

property it is poised to pump fresh

light is certainly a license you can really sink your teeth into.

For more information on the Twilight

property, check out the feature on page 20.

ANB

MEDIA, INC.

ROYALTIE$ is published 11 times a year by aNb Media, Inc. Copyright 2009 aNb Media, 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 photocopy, recording, or any information storage and retrieval system, without written permission from the publisher. Printed in the U.S.A. ROYALTIE$ is a registered trademark of aNb Media, Inc. Opinions and comments expressed in this publication by editors, contributing writers, or solicited or unsolicited documents are not necessarily those of ROYALTIE$ management.



A RECAP

OF

INDUSTRY HEADLINES

KB SHUTS DOWN

Toy retailer KB Toys filed Chapter 11 bankruptcy on December 10 and immediately began layoffs and deeply discounted sales. As of November 29, the company reported $241 million in assets and $362 in liabilities. The 86-year-old chain began as a candy distributor, moving into toys when economic hardships of World War II drove up sugar prices. Now decreased mall traffic, competition from other chains, and failed merchandising strategies, as well as changing economic times, have contributed to the collapse of the store. Hasbro, Mattel, LEGO, and Li & Fung are among the unsecured creditors who will lose out. The management says that it will close 277 mall-based stores, 40 KB Toy Works stores, outlet stores, and all other business operations.

MGA SEEKS STAY

OF

ORDER

Early last month, after a ruling that the Bratz dolls infringe on Mattel’s copyrights, the California court issued a permanent injunction against MGA and ordered the company to stop selling the dolls, recall all product currently in the market, and destroy all molds. The order is to take effect early in 2009. However, MGA filed a notice of appeal on the December 4 order. In addition, MGA has asked for a stay of the order until after a ruling from the U.S. Circuit Court of Appeals.

KONAMI TAKES OVER YU-GI-OH!

Konami Digital Entertainment (KDE) announced last month that it was taking over operational and business aspects of the Yu-Gi-Oh! trading card game effective at the time of the announcement. KDE assumes distribution and customer support for the game from Upper Deck Entertainment, KDE’s former exclusive distributor of the trading card game. Distributors and retailers wanting to set up accounts with KDE can contact customer support at (310) 220–8630 or card-po@konami.com.

MATTEL HAS A SECRET

Cartoon Network Enterprises has named Mattel global master toy licensee for the original fantasy-adventure series The Secret Saturdays. Under the deal, Mattel will produce a broad line of toys, including action figures, playsets, roleplay items, and more. The Secret Saturdays television series debuted on Cartoon Network last October as part of the network’s Friday night fantasy/adventure programming block and the new product line is expected to be available at mass retailers nationwide for fall 2009.

MARILYN HEADS TO BRAZIL

Brazilian-headquartered licensing agency, OmNi E+ Marketing & Licensing Ltd., has signed on to represent all celebrity properties handled by Legends Licensing, LLC. The agency will represent Legends’extensive roster of celebrity properties, including the single largest and most diverse collection of Marilyn Monroe photographic images in the world. Marcio Domingues, managing partner of OmNi E+, in a prepared statement said, “The Brazilian licensing market has been expanding consistently over the past years and we believe the addition of such an important and popular property will certainly contribute to the introduction of a vast array of high quality products in the country.”

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9TH ANNUAL TOTY AWARDS NOMINEES

The Toy Industry Association (TIA) released its list of 74 nominees for the 9th annual Toy Of The Year (TOTY) Awards, which reflects the most exciting new products from a diverse range of toy companies. The TOTY Awards will be held at Pier 60 at Chelsea Piers on February 15 at 6:30 P.M. Jack Pressman, founder of Pressman Toy, and Joan Ganz Cooney, creator of Sesame Street, will be inducted into the Toy Industry Hall of Fame. Below is a list of the nominees. INFA NT/ P RES C HOO L TOY O F TH E Y EA R Kota the Triceratops—Hasbro Tink’s Talking Café—Jakks Pacific Giddyip ’N Go Pony—Little Tikes ’50s Diner—The Step2 Company Sit-to-Stand Alphabet Train—Vtech Elmo Live—Fisher-Price G IRL TOY OF THE YE A R Pretty Pedicure Salon—Creativity for Kids/ Faber-Castell USA Barbie iDesign Ultimate Stylist Cards and CD-ROM—Mattel Mrs. Goodbee Talking Dollhouse— Learning Curve Brands Disney Hannah Montana’s Malibu Beach House— Play Along Playmobil Horse Farm—Playmobil Clickables Fairy Charms Starter Set— Techno Source BOY TOY OF THE YE AR Handy Manny 2-in-1 Transforming Tool Truck— Fisher-Price Nerf N-Strike Vulcan EBF-25—Hasbro EyeClops Night Vision Infrared Stealth Goggles— Jakks Pacific Legends: King Arthur Battle Action Castle— MEGA Brands Sprig Adventure Series Discover Rig—Sprig Toys Air Hogs Zero Gravity Micro—Spin Master Bakugan Battle Brawlers Battle Pack Series 1 Spheres—Spin Master G AM E O F TH E Y EA R Bananagrams—Bananagrams LLC Haunted Ruins 3-D Adventures Pop-Up Board Game—Basic Concepts The Cat in the Hat, I Can Do That!— I Can Do That! Games Monopoly Here and Now: The World Edition— Hasbro Pictureka!—Hasbro Rush Hour—ThinkFun Zingo!—ThinkFun

OU TD OO R TOY OF THE YE AR Crayola 3-D Sidewalk Chalk—Crayola Power Wheels A.T. Rex—Fisher-Price Cosmic Keep Away—Hasbro Fropper—International Playthings Junk Ball—Little Kids Backyard Safari Bug Vacuum—Summit Products Banzai Skim Board Surfer—Toy Quest

ED UC ATI ON AL TOY OF THE YE AR Computer Cool School—Fisher-Price Idbids Eco-friendly Starter Kit—Idbids LeapFrog TAG Reading System—LeapFrog Zillions Touch Screen ATM—Summit Products V-Motion Active Learning System—Vtech Discovery Kids Smart Animals Scanopedia— Jakks Pacific EyeClops BioniCam—Jakks Pacific

AC TI VI TY TOY OF THE YE A R Crayola Color Wonder Magic Brush—Crayola Clipo Creativity Table—Hasbro Girl Gourmet Cupcake Maker—Jakks Pacific Star Wars AT-TE Walker—LEGO Circus Ring—Playmobil PixOs Super Studio—Spin Master KidiArt Studio—Vtech

ELE C TRON IC ENTE RTAI N ME NT TOY O F TH E Y EA R Ultimate Wall•E Programmable Remote Control Robot—Disney Imaginext Spike the Ultra Dinosaur—Fisher-Price FurReal Friends Biscuit My Lovin’ Pup—Hasbro U-Dance—Tiger Electronics KidiJamz Studio—Vtech RS Tri-bot—WowWee

MOS T INN OVATI VE TOY O F THE YE AR The Pieceless Puzzle—Cadaco Imaginext Spike the Ultra Dinosaur—Fisher-Price Kota the Triceratops—Hasbro EyeClops Night Vision Infrared Stealth Goggles— Jakks Pacific Sprig Adventure Series Discover Rig—Sprig Toys Air Hogs Zero Gravity Micro—Spin Master Bakugan Battle Brawlers Battle Pack Series 1 Spheres—Spin Master

S PE C IA LTY TOY OF THE YE AR Deglingos—All New Materials Create Your Own Pop-Up Books— Creativity for Kids/Faber-Castell USA 18-inch Fancy Nancy Cloth Doll—Alexander Doll Totem Boys/Girls—Kidsonroof Circus Ring—Playmobil Sprig Adventure Series Discover Rig—Sprig Toys Wind Power—Thames & Kosmos

PROPE RTY O F TH E Y EA R Barbie—Mattel Fancy Nancy—HarperCollins Star Wars: The Clone Wars—LucasArts Entertainment Disney Fairies—Disney Handy Manny—Disney Bakugan—Cartoon Network Yo Gabba Gabba—Wildbrain

TOY O F TH E Y EA R This is an overall category award for the entire program. Voting members chose from the list of nominated toys or filled in the name of another product on the ballot.

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UNIVERSAL STUDIOS AND I CAN DO THAT! GAMES

I Can Do That! Games, has entered into a partnership with Universal Studios Consumer Products Group to produce a line of games based on Universal’s Curious George television series. This is the second high-profile license that I Can Do That! Games has been signed to, with the first being its exclusive rights to Dr. Seuss’ work for board games. I Can Do That! Games is planning on releasing three new Curious George games for 2009.

MEGA BRANDS WITH NICKELODEON AND WILDBRAIN

M EGA Brands will be expanding its current licensing partnership with Nickelodeon to include construction toys for Nick Jr. shows The Wonder Pets and Ni Hao, Kai-lan. The construction sets will be based on key characters from both properties and will debut worldwide fall 2009. In addition, MEGA has entered into a multi-year international licensing partnership with Wildbrain, the company that develops and produces Yo Gabba Gabba! Under the terms of the agreement, MEGA Brands will have the right to develop an assortment of construction sets, including buildable playsets based on the characters and storylines of the series. These products are also expected to be available in fall 2009.

One of MEGA’s Ni Hao, Kai-lan playsets

SANRIO AND PURE DIGITAL TECHNOLOGIES

Sanrio has signed Pure Digital Technologies as a licensee for new Hello Kitty Flip Mino Camcorders. These compact camcorders weigh just over three ounces and feature a built-in USB port, rechargeable battery, and 2 GB of flash memory for 60 minutes of recorded video. The camcorders also connect to the computer for easy storage and organization. Hello Kitty and other Sanrio characters, such as Keroppi, Kuromi, Deery-Lou, and more, are all featured on the camcorders.

JEFF GORDON AND BIC USA, INC.

Broad Street Licensing Group has brokered a deal between its client, BIC USA, Inc., and NASCAR star Jeff Gordon. BIC will be producing a line of disposable lighters featuring Jeff Gordon. These lighters will be a new addition to BIC’s NASCAR-related licensing agreements, including a line of Dale Earnhardt Jr. lighters. BIC intends to add more NASCAR personalities to its line in the future.

PARAMOUNT LICENSING AND OMNI CONSUMER PRODUCTS

Omni Consumer Products is working with Paramount Licensing to produce the new Anchorman Sex Panther cologne. Based on the character of Ron Burgundy, played by Will Ferrell in Anchorman: The Legend of Ron Burgundy, the new Sex Panther cologne will be available at multiple retail outlets, including Hot Topic, Spencer Gifts, Walgreens, Rite Aid, CVS, and more, as well as available online at sex-panther.com.

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PLAYBOY AND EURO STYLE DE MEXICO

Playboy Enterprises has announced that Euro Style de Mexico will act as its official licensee in Mexico. The deal encompasses men’s and women’s apparel, accessories, lingerie, swimwear, and footwear. The line will hit retail shelves at a number of different retailers in Mexico this spring, with prices that start at $19.

BUBBA GUMP SHRIMP CO. AND RUBICON RESOURCES

Bubba Gump Shrimp Co. has signed a partnership deal with seafood supplier Rubicon Resources to take the restaurant’s menu into the retail space. Rubicon will be marketing the Bubba Gump brand in supermarkets and club stores, taking dishes such as Chipotle BBQ Shrimp and Soy-Ginger Shrimp & Noodles and converting them to oven-ready meals and appetizers for the home. This is the Bubba Gump Shrimp Co.’s first step into the licensing arena and into expanding the brand beyond the core restaurant business.

IMC LICENSING AND RAND MCNALLY

IMC Licensing has announced that it has entered into a representation agreement with Rand McNally, the map, route, travel, and trip planning publisher and geographic reference company. IMC will be focusing on building a portfolio of new licensed travel and related products. Rand McNally’s major core brands include the Rand McNally Road Atlas, The Thomas Guide map books, and travel-related software, StreetFinder Wireless.

CAPCOM ENTERTAINMENT AND GOANIMATE.COM

GoAnimate.com has announced a new licensing partnership with Capcom Entertainment. Under the terms of the agreement, Capcom’s Street Fighter characters will be available for GoAnimate.com users to create their own animated battles featuring these classic and popular video game characters. All characters will be able to use their signature abilities from the game, from dragon punches to fireballs. Eight characters will be available initially, with more available for points and GoAnimate.com currency.

CHAPMAN ENTERTAINMENT AND VARIOUS LICENSEES

Target Entertainment Group has concluded a wide range of licensing deals in the UK and Europe for its client, Chapman Entertainment. The deals involve Chapman’s preschool brand Fifi and the Flowertots. For the UK market, Gosh has signed on to produce soft balls, tool sets, and travel art. Publications International has renewed its sound book deal, and McDougals has renewed its license for make-and-bake products. Sweet Spa will produce chocolate eggs for eastern Europe, the Nordics, and the Benelux. One 2 Play will produce snacks and rainwear, as well as inflatables, balls, patio sets, tents, and pop-up tidies in the former Yugoslavia.

ROYALTIE$ JANUARY 2009

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Just Say No to No

CopCorp Licensing announced anchor U.S. licensees for Just Say No to No, a rebellious, rules-breaking lifestyle brand from YOE! Studio. Briefly Stated, a division of Li & Fung Ltd., has been granted the rights to manufacture and market Just Say No to No juniors’ and men’s sleepwear, loungewear, and underwear. Giant, a division of The Millwork Trading Co., Ltd. dba LFUSA, has been granted the rights to manufacture and market Just Say No to No juniors’ and men’s T-shirts, fashion tops, and fleece. H.E.R. Accessories has been granted the rights to manufacture and market Just Say No to No costume jewelry, hair accessories, belts, shoelaces, cell phone charms, bandanas, wristbands, brushes, combs, mirrors, sleep masks, and lanyards.

Marilyn On the Web

Legends Licensing, LLC teamed up with high-end internet e-store Artopia in a direct-to-consumer deal for high-quality, fully customizable products featuring the largest and most diverse collection of Marilyn Monroe photographic images in the world. Shoppers will be able to customize a wide array of products with their own tag lines, allowing them to express their feelings about Monroe. Other customizable features include the choice of foils, glitters, and other special transfer printing effects. Products available at Artopia include apparel, posters and prints, stationery items, pet products, automotive, toys and games, home décor, gift and collectible products, and more. More than 40 apparel items will be available for imprinting with Monroe images.

New Licensees Added to Yerzies

Flame-Broiled Apparel

The Broad Street Licensing Group brokered new apparel deals for Burger King. Exquisite Apparel will produce a line of Burger King-branded men’s sleepwear and loungewear products (shown) featuring the King and Whopper icons. Mad Engine has signed on to produce Burger King-branded T-shirts. Both apparel lines will be distributed to mass merchandisers along with department and specialty stores throughout the United States.

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ROYALTIE$ JANUARY 2009

The Wildflower Group and Yerzies, an online marketplace that allows anyone to create, purchase, or sell their own customized Tshirts, hoodies, and other apparel items, have signed new licensees. More than 20 properties have granted licenses to Yerzies, including lifestyle brands David & Goliath, Ripple Junction, ODM, and Changes; entertainment and media brands Pink Panther, Planet Earth, and Speed Racer; and consumer products brands such as Dubble Bubble and Jolt Cola. Yerzies users will have the option to purchase licensed apparel bearing the trademarks of these brands.


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ANDI RIORDAN-SCOTT, CREATIVE MINX MARKETING by Laurie Hahn

hen a friend called Andi Riordan-Scott a “creative minx,” Riordan-Scott knew exactly what to call her licensing agency. Like a minx, she is always thinking and she hopes to offer her clients a more creative approach to sales, marketing, and PR. “I feel you have to be creative and you need to always be rethinking and diversifying yourself and reinventing yourself,” Riordan-Scott says. Since getting started in the licensing business 18 years ago, she has been doing just that. Prior to licensing, Riordan-Scott had worked behind the scenes in the film industry, but decided that she wanted a more stable job. She interviewed for a licensing position and, to her surprise, got the job working on Mighty Morphin Power Rangers with Saban. From there, she worked with Gary Caplan, Inc., Imagination Factory, The Licensing Group, and Peterson Publishing (now Primedia), handling licenses such as Mortal Kombat, Terminator, and popular magazines. In 2001, Peterson Publishing was getting bought for the third time in three years and dropping or selling many of its magazines. Riordan-Scott decided it was time to take a break and refocus. Licensees didn’t want her to take a break, however. “I got licensees asking if I could help them out with projects,” she says. “For the past five years, I had been asked to go out on my own, start my own company. I never wanted to start my own

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company. I just didn’t think I could do it.” But after working with licensees on a short-term basis, starting her own agency became more of a reality. Creative Minx Marketing was born, taking on clients such as Infinity Headwear, Vintagewear Cali, and Activision, which she represents for outbound licensing. “I’m a combination of an agent and a consultant,” Riordan-Scott says. “I’m smaller than a lot of other agencies, but I haven’t just been a consultant to Activision. I have been as involved day in and day out as probably any full-time employee has been. What I can credit myself and my agency with is we’re involved from soup to nuts to the degree that our clients want us to be.” Riordan-Scott is so involved with her clients, some of which are international or on the East Coast, that she wakes up at 4:30 A.M. in L.A. in order to be available for her clients when they need her. “My goal is I want my clients to feel that I’m an extension of them,” she says. “I’m their remote extension, their remote licensing person.” The Creative Minx staff has also stayed focused and small. Riordan-Scott employs an assistant and a salesperson that she works with part time. Despite thinking about hiring more people, Riordan-Scott’s clients have fought that and she listens to them, saying that she doesn’t want to hand off clients to other salespeople. “I want people to feel that they are working with me and a lot of manufacturers want that service,” she says. “They want to know who they’re

going to work with. If I have signed an agreement with them, then they’re getting my relationship, my Rolodex, my understanding, my commitment, versus me handing them off to a sales agent.” Since starting Creative Minx, much in the licensing industry has changed, including the growth of small licensing categories, such as video games. “Two and a half years ago I couldn’t give away a license for Call of Duty or Guitar Hero,” Riordan-Scott says. “What started happening, [people] realized these kids were living what they played more so than just in a gaming capacity. They were wearing what they were playing, buying what they were playing, sticking on their desk what they were playing.” The industry has realized that video games have the potential to be brands and not just one-offs. As the licensing industry embraces video game licensing, the industry as a whole is shrinking, says Riordan-Scott. “People are more focused. Manufacturers are demanding more from the licensors,” she says. Consumers who are looking to buy licensed product will do so but only if the price is right. “It’s forcing a lot of licensors to work with the licensees and they have to be more creative as well.” And being creative is what Riordan-Scott does best.



G

by Paul Narula

360 EP’S

etting a tattoo is a big deal, even with the large number of safe removal methods that exist today. Making sure that a tattoo is exactly right is important both to the customer and to the artist. That’s where Tattoo Johnny comes in. The company provides stencils and artwork for its customers via its website, tattoojohnny.com. Tattoo Johnny’s website allows a customer to purchase tattoo designs and stencils online, using a credit card or PayPal’s e-check services. The company provides designs and images from more than 200 different artists from around the world, each of whom belong to Tattoo Johnny’s “Art Stars” group for producing tattoo art that matches with the company’s ideals for quality and aesthetic design. Tattoo designs range from butterflies to barbed wire and new designs are added to the library almost every day. All of Tattoo Johnny’s designs can be downloaded directly to the customer’s computer and printed out to be brought to the tattoo artist of the customer’s choice. In addition, Tattoo Johnny sells Tattoo Transfer Paper, which allows the customer to print off a design in the form of a temporary tattoo to “test drive” a design and see for themselves how it would appear as an actual tattoo prior to having the work done. These designs

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were once available only to professional tattoo artists via mail-order. Now, while professional tattoo studios still order large numbers of Tattoo Johnny designs, the company is bringing its art directly to the enthusiast via the internet. The Tattoo Johnny website is more than a vehicle for tattoo sales. Provided on the site are extensive guides to everything tattoo-related. The company describes its mission as “To provide you with everything you will ever need to know about tattoos.” The site explains the symbolism behind almost every type of tattoo that it sells, and provides a detailed explanation on how to go about getting your first tattoo, starting from how to choose a design right up until how to prepare for going under the needle. With more celebrities sporting tattoos and shows such as Miami Ink and its spin-offs gaining a popular following, tattoos have become a significant aspect of modern pop culture. Tattoo Johnny’s licensing program leverages that popularity and the company’s years of experience as a prominent part of tattoo culture into relationships with licensees that focus on Tattoo Johnny’s unique artwork. With its focus on high-quality images, on skin or anywhere else, Tattoo Johnny is ready to expand into any category where the brand can show its colors.

Fast Facts The Tattoo Johnny website, tattoojohnny.com, has more than 65,000 hits every day.

The Tattoo Johnny design library exceeds 50,000 individual tattoo designs.

The company attends at least 50 tattoo conventions a year, displaying art and teaching attendees about getting and maintaining a tattoo.

Many of Tattoo Johnny s artists have their work displayed in the company s traveling road show and art exhibit, which travels to 30 cities across the country.

Tattoo Johnny art has toured the world on the drum kits of various bands. Replicas of those kits are sold at Sam Ash, Guitar Center, and more.


ETCHSTAR

Etchstar now has Tattoo Johnny artwork available via its websites, etchstar.com and journalengraver.com. The artwork can be engraved on iPods, laptops, journals, and other consumer products.

ART BRANDS

Art Brands has just released a new lineup of heat transfers for Tattoo Johnny. The transfers feature art from the Tattoo Johnny website.

BZTEES

NOVELTY, INC.

Novelty, Inc., has a wide variety of Tattoo Johnny-licensed items available, including rings, lip balm, watches, and bottle openers (shown).

New from BZTees is a full line of Tattoo Johnny-brand apparel. T-shirts for adults will feature art inspired by Tattoo Johnny and created by Tattoo Johnny creative director David Bollt. BZTees will also produce a line of infant “onezees� and toddler T-shirts.

CARTATTS

CarTatts will be producing a new line of decals and car art featuring imagery from Tattoo Johnny. These decals are durable vinyl and can be applied and removed with no surface damage.

ROYALTIE$ JANUARY 2009

15


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LICENSING KEEPS

THE

MUSIC ALIVE

by Laurie Hahn one are the days of a simple band Tshirt purchased at a concert. These days, it’s all about extending the fan’s connection with the music, musician, and music property in any and every way imaginable. If a consumer wants shoes with Kurt Cobain lyrics on them, he can go and buy a pair. If a Britney Spears fan wants to smell just like the singer, there are multiple fragrances for that. In today’s world of music licensing, fans want more than just a shirt. But musicians want more, too. Album sales continue to decline as more and more music fans purchase—and sometimes steal—music online. For the artists, that means there needs to be another way to make money. Touring offers one revenue stream, but when a band isn’t on tour, licensed merchandise at retail fills that void. “What is true is that the physical CD is declining as a format,” says Jeanne Meyer, senior vice-president, corporate communications, EMI North America, “so there’s more interest among brands to affiliate with music and musicians than ever before.” And there are more ways to do this than ever before.

MAKING tHE BRAND

Before a licensing program based on a musician can get off the ground, the sell-ability of the artist must be established. Truly successful ones will be bigger name stars, not just one-off artists. “They have to be successful in their recording career for a while,” says Michael Stone, CEO at The Beanstalk Group. “Licensees and retailers are going to want a sense of comfort that this recording artist is not going to hit the bottom of the charts or be gone

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in a year.” Putting together a fashion line or producing other consumer products can take up to a year or more. In that year, the musician still needs to be relevant and popular in order for consumers to buy the products. If a musician has a specific look, this can also help bring about a licensing program. Maggie Dumais, agent at Creative Artists Agency (CAA), says that singer Katy Perry could command a major brand within the next year because of her “definite look, definite style, and diverse fan base. You can’t just be a good performer. You have to have a very specific kind of look, such as Madonna’s clothing in the ’80s.” For these reasons, classic and deceased musicians make good transitions into licensing programs. There are some bands that transcend all generations, such as The Beatles. “The music of Lennon/McCartney is timeless and meaningful to everyone,” says Robert Kaplan, senior vice-president, global marketing at Sony/ATV Music Publishing. Mighty Fine put together a variety of shirts using The Beatles lyrics while Lyric Culture designed a scarf based on the song “Across the Universe.” The same can be said for record labels, such as Motown, which celebrates its 50th anniversary this year. “Motown is an all-American brand,” says Jill Ettinger, director of marketing and product management at Universal Music Group. “We all know the lyrics to these songs. You go to a wedding and ‘Brick House’ gets played and everybody, no matter how old they are, seems to know these songs.” Reliving these classic bands and songs can be brought to life through a variety of licensed products.

Motown celebrates its 50th anniversary this year with a variety of licensed products.

NOT JUST

SIMPLE T-SHIRT

The simplest way for fans to express their love of music is still through licensed Tshirts. But these days, T-shirts aren’t relegated to a table at the back of a concert venue. Consumers can find their favorite bands on shirts in mass-market stores and specialty boutiques. Whether a complete fashion line or a collection of shirts, licensees must bring the spirit of the artist to the apparel. For The Walt Disney Music Group, that means bringing the music to the T-shirts. This year, the company will introduce musical Tshirts that feature a waterproof music chip sewn into the shirt. The chip will play songs from High School Musical, Hannah Montana, and Camp Rock. “You have to make sure that you give them the experience of what they’re seeing on the [Disney] channel,” says Dominic Griffin, vice-president of licensing for The Walt Disney Music Group. Even without the use of music chip technology, T-shirts can still stand out at retail for fans and non-fans. A Duran Duran T-shirt from Mighty Fine might resonate with older fans of the ’80s band but the contemporary graphics and retro appeal will attract younger consumers,

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widening the band’s fan base. “If you make the T-shirt look cool, the 17-year-old girl or boy will buy it and, lo and behold, they will go home, pop onto iTunes, and end up downloading a song or two from the band,” says Patrick Charbonneau, president of Optive ’80s. Other forms of apparel also get the music licensing treatment. Converse and Signatures Network signed a deal last year for licensed shoes featuring Grateful Dead, The Doors, Black Sabbath, and The Who. The shoe company also worked with Primary Wave Music to create Kurt Cobain shoes. Cobain’s lyrics were used on the shoes, as well as his signature. Justin Shukat, general manager and partner, Primary Wave Music, says that it’s important for his company to get Cobain’s music to consumers in more creative ways because “kids and teenagers are learning about music in a lot of different ways than they would have five or 10 years ago when radio was more prevalent and [music] video play still existed.” One of these creative ways is to license out the music itself. These days, many licensors are licensing out music for use in video games, TV shows, movies, and commercials. “Music supervisors of film and TV and video games view themselves as the new radio,” Shukat says. Through the Guitar Hero and Rock Band video games and TV shows such as Cold Case and Lost, Primary Wave Music has made sure that the sound of Cobain and Nirvana remains in the mind’s of Nirvana fans and reaches new audiences. EMI has licensed its music to Grand Theft Auto IV. In the game, 18 radio stations are featured and gamers can keep track of the

A screencap from Ludia’s online American Idol game

music they’ve heard in the game, use a cell phone device in the game to tag the music, and then purchase the song from Amazon.

INTERNET

AND ITUNES

Just as music is important to video games, so the internet is to music. The internet, once enemy No. 1 of the music industry, has been helpful to music in general over the past few years. Sure, bands and artists aren’t selling as many CDs because of consumers buying single songs online, but most of the time consumers find out about new songs and bands on the internet. iTunes and similar sites, such as Rhapsody, are where consumers will go to purchase these songs. Realizing how influential iTunes was with today’s consumers, Fremantle Media partnered American Idol with the online music store last season. There were in-show integrations that showed the contestants using iTunes to pick their music. Full-length recordings of all the songs performed by each contestant were made available exclusively on iTunes. “The day that you would watch the show, you could go onto

iTunes and purchase both the video performance as well as a full-length audio performance,” says David Luner, senior vice-president, interactive and consumer products at Fremantle. At press time, iTunes was not yet confirmed as a sponsor for season eight of American Idol, which debuts January 13, but Fremantle is making sure that the show has plenty of online components. With licensee Ludia, a new online video game will let players create their own American Idol performance using online avatars and share the performance videos in a social environment. This interactivity is exactly what consumers, especially kids, are looking for. “Kids want to be active in the music space,” says CAA’s Dumais. She points to the popularity of “act like a rock star” toys and video games, as well as the internet. “Kids can upload music, download music, share the music that they’re creating, and the internet, something that seemed like it was inhibiting the growth of the music genre, now is almost expanding it.” Whereas the internet is endless, the music licensing category does have a saturation point, and the category may be close to reaching it. Slumps in physical CD sales mean that more musicians and music brands are entering into licensing looking for new forms of revenue, but not all of these artists are able to carry a successful product line. The economic downturn might be just what this category needs, however, as retailers will start to go after only the top-tier music brands. With so many musicians already falling into that arena, consumers won’t have a hard time connecting with the music.

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MUSIC LICENSING

by Laurie Hahn

As CD sales decline and digital downloads become more prevalent, musicians continue to turn to licensed products as another form of revenue. Through these products, consumers can keep their love for a favorite musician or music brand alive.

WALT DISNEY MUSIC GROUP

Walt Disney Music Group partnered with Jakks Pacific for new licensed Plug It In & Play Games. The G2: Game Girl—Hannah Montana Pop Tour Guitar Video Game (shown) is a Plug It In & Play game that combines the hottest trend in gaming with Hannah Montana. Play along to 10 Hannah Montana tracks and build up points and experience. With this rocking game, girls aren’t just with the band, they are the band. For the Camp Rock brand, Jakks Pacific produced the Camp Rock Guitar Video Game. Just plug the guitar controller into a TV and jam through real Camp Rock songs, building skill, points, and new fans along the way.

FUSION LICENSING

Kidz Toyz, Inc., became an official licensing partner for Daisy Rock musical instrument toys. Products Kidz Toyz will market include Styling Guitar with Headset Mic, 37 Keys Rockin’ Keyboard, Thunder Drum, and FM Wireless Mic. Daisy Rock recently retained Fusion Licensing to help develop a lifestyle brand program targeting girls of all ages. The program is currently seeking licensees in apparel, accessories, beauty supplies, home décor, software, computer and mobile accessories, and more.

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FREMANTLE MEDIA

Fremantle Media is letting fans interact with American Idol like never before. In partnership with Disney World in Orlando, Fla., the American Idol Experience (shown) lets fans be a part of the show. The attraction, which launches next month, gives Disney World parkgoers the opportunity to recreate the American Idol experience from the audition process to the stage to fully interactive audience voting. There will be seven shows a day with a grand finale. Each day’s winner will get a speed pass to audition for the real show. A fully branded American Idol store will be outside of the attraction. Konami’s American Idol Karaoke Revolution gets an update with the latest version of the singing video game, which launched in November.


UNIVERSAL MUSIC GROUP

To celebrate Motown’s 50th anniversary, Universal Music Group is embarking on a licensing program that includes a partnership with Hallmark. Hallmark signed on to promote a Motown Valentine’s Day program in 3,500 stores. A plush character will play the song “Love Machine” by The Miracles. Motown music will also be used in Hallmark Cards with Sound. Lyrics from songs such as “My Guy” by Mary Wells will be available on mugs, buttons, gift wrap, and more. Bravado International Group is the exclusive Motown apparel licensee. The company is producing men’s and women’s T-shirts and hoodies, as well as apparel for babies. Hasbro’s Tooth Tunes used “ABC” by the Jackson 5 and Motown music can be heard in Hasbro’s U-Dance motion-sensor game.

CREATIVE ARTISTS AGENCY

Creative Artists Agency (CAA) will begin a licensing program that celebrates 37 years of Soul Train. The popular music show spans multiple generations and CAA hopes to bring the property into multiple categories. Products will utilize 37 years of video and photographs from the show, as well as the Soul Train logo.

This Hallmark Card with Sound plays the song “Dancing Machine” by the Jackson 5.

PRIMARY WAVE MUSIC

SONY/ATV MUSIC PUBLISHING

For the lyrics of The Beatles, Sony/ATV signed apparel deals with Mighty Fine to include lyrics on T-shirts. Mighty Fine produced an infant/toddler shirt using the song “Come Together” that is available at Nordstrom. For the song “Revolution,” Mighty Fine produced a Tshirt that is available at Urban Outfitters. Lyric Culture, another apparel licensee, will produce a cashmere scarf (shown) using the lyrics from the song “Across the Universe.” It will be available at retailers such as Fred Segal.

Primary Wave Music, which licenses Kurt Cobain’s song lyrics, signed a deal with Converse for six different versions of the popular Chuck Taylor shoe. The shoes feature lyrics, as well as Cobain’s signature. The music of Cobain has also been used in a variety of video games, including Guitar Hero 2, Guitar Hero World Tour, and Rock Band. Primary Wave Music also licensed music to TV shows such as Cold Case and Lost.

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“W

The Twilight Phenomenon

by Nancy Lombardi

e love when something comes out of nowhere and takes us by surprise,” says Maureen Ferguson Lewis, divisional merchandise manager, Virgin Entertainment Group. “It adds excitement to retail.” It’s a rarity these days when a property comes out of nowhere and takes everyone by surprise. But that’s just what happened in 2008 with a series of books from author Stephenie Meyer. The original book, Twilight, was published in 2005. A book followed each year with book No. 4, Breaking Dawn, releasing in August 2008. In addition to the bestselling book series, Twilight made it to the big screen in November, becoming a blockbuster hit. It seems that the film was the tipping point pushing this series into mainstream consciousness. “The books have been a phenomenon but the movie has energized the fan base and expanded the reach,” says Marc Mostman, president of Most Management, the company handling the licensing for the property in conjunction with Striker Entertainment. It seems impossible to pick up a magazine or a newspaper, or visit a website without seeing Twilight. The media coverage runs the gamut from numerous placements in Entertainment Weekly throughout 2008 including a variety of “collector’s covers” to a fashion spread in InStyle to articles in The Wall Street Journal as well as the USA Weekend supplement in local newspapers—just to name a few. The media coverage is reaching every demographic target. In speaking with retailers and licensees for this story, all likened the success of this property to that of Harry Potter. And, in a way, Harry Potter may have helped just a little bit with Twilight’s success. In the summer of 2008, Warner Bros. announced that Harry Potter and the Half-Blood Prince was moving from its November 2008 release date to July 2009. This change allowed the film, based on the original Twilight book, to move from an anticipated opening of December 12, 2008, to November 21, 2008. This weekendbefore-Thanksgiving release gives the film a greater chance of longevity and, as of press time, the film was still going strong after

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four weeks in theaters with a cumulative box office of $150 million. It also gave fans more time to shop for goods over Thanksgiving weekend and throughout the holiday season. “We see this as the same customer as Harry Potter,” says Virgin’s Ferguson Lewis. “With Harry Potter being pushed to summer there wasn’t another tween/teen movie out there or another license for these customers.”

Building the Program

It certainly wasn’t just the magic of Harry Potter that ignited the hype around this already bestselling book series. Taking a step back to earlier in 2008, a licensing program was quickly yet quietly in development just prior to Licensing Show. Striker Entertainment in conjunction with Most Management is handling the consumer products on behalf of Summit Entertainment. Summit is producing and distributing the film. “We have an incredible range of products especially considering that we started this in June,” says Russell Binder, president of Striker Entertainment. “This is Summit’s first venture into consumer products and licensing and it’s not a bad first step out.” Not a bad first step, indeed. Despite the economic climate, those interviewed couldn’t say enough about the success of this property. Hot Topic, which is an exclusive Twilight retailer, declined an interview but said in a statement provided by Striker Entertainment that Twilight is poised to be one of the company’s top three licenses of all time. Twilight helped push Hot Topic into higher third-quarter sales and earnings that beat analysts’ expectations. “We have a managed program for some key retailers such as Hot Topic and Borders on certain categories but allow other retailers to participate in a program for their specific customer,” says Mostman. Virgin Megastore, FYE, and Amazon.com are just some of the other retailers on board. “We started asking around for product in June because we knew this was going to be hot,” says Virgin’s Ferguson Lewis. “We found out that Hot Topic had the exclusive on most of the product.”


However, she notes that a caveat in the contract says that any store that was considered a bookseller would be able to sell some products. She notes that Virgin is a bookseller so the retailer created a boutique area about four weeks before the film’s release. It was stocked with the limited licensed products it was allowed to carry. Also included in the display were private label items that the store created. “My whole team read the books and they loved them,” she says. “They had so many suggestions to create items that only the true fans would identify with.”

Team Edward? Team Jacob?

So just who are these fans? “This is 98 percent female,” says Ferguson Lewis. “We are seeing mothers and daughters and they are not just buying one item. They were picking up everything—the key chains, the posters, the Tshirts. It was interesting to watch them flock to that [display of movie merchandise] table.” Those interviewed attributed the success of this property to not only the great story but to the fact that this is a female-focused property. Many note that there is nothing else out there like it for females in the 13–35 year old range, which is considered the property’s core audience. It’s an audience that holds tremendous spending power. “It’s an interesting and unique story,” says Robert Tonner, of Tonner Dolls, the company making collectible figures. “It’s so obvious and so different at the same time. I think it hits a nerve. It’s a great girls’ property and there are not many romantic, exciting properties out there.” Binder explains that this is going to be a multiple-movie experience. Striker Entertainment is working hard to manage

the property for the long term. Binder explains that there’s the temptation from many to blow this out at retail because it reaches the teenage-girl demo. Everyone knows teenage girls love to spend money. “In today’s environment that’s a very desirable consumer to have as an advocate for your property,” he says. Not only do they flock to stores but girls and women also flock to films that speak to them and they return for repeated viewings in droves. This is not only true for Twilight but this was evidenced by the success of Sex and the City earlier in 2008. “Her [the author’s] voice resonates with a large constituency of girls who all have this same kind of reaction to this experience, to this guy, to this relationship,” explains Binder. “It seems to fill a very important part of their experience.” Part of the experience for women may also be the simple enjoyment of partaking in something with other women whether it’s movie night with friends, a mother and daughter shopping expedition, or a book club gathering with neighbors. During the height of the Harry Potter phenomenon there was a fear among those in the book industry that there would never again be another “Harry Potter” and while these numbers may not be “Harry numbers” just yet, this seemingly lightning-strikes-twice occurrence proves that great stories always find an audience—and despite the myriad entertainment options available, tweens/teens still enjoy reading. This economic climate may have created the perfect storm for fans of Bella and Edward. Fans are looking for a bit of escapism and this property provides the perfect low-cost outlet.

T WILIGHT : FAST FACTS

• There are currently a total of four books in the series: Twilight, New Moon, Eclipse, and Breaking Dawn. The story is not about horror. It’s a romance with elements of action, comedy, and suspense. • Twilight fans are known as “Twihards.”

• Licensees as of November 1, 2008: Advanced Graphics for cardboard standees for the U.S. and Canada; Borders for wall calendars worldwide; CafePress for the e-commerce fan portal worldwide; Inkworks for trading cards, albums, and tins for the U.S., Canada, UK, Europe, Australia, New Zealand, and Japan; Little Brown, publisher of the series, is also creating a movie-companion coffee table book, worldwide, all languages; N.E.C.A. worldwide for apparel, accessories, novelties, collectibles, jewelry, and posters; Tonner Doll Co. for 16-inch character fashion dolls for the U.S. and Canada; and Trends for bookmarks and calendars for the U.S. and Canada.

• Summit Entertainment announced that it’s moving forward with the production of New Moon. It was also announced that due to scheduling Catherine Hardwicke will not be directing the next installment slated for release in November 2009.

N.E.C.A.’s Edward figure

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Women Are a Dog’s Best Friend

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Demographics and Retail Infrastructure Feed Growth of Pet Products Industry by Chris Adams he converse relationship in the old maxim about dogs being man’s best friend may not hold true. Research conducted by the American Pet Products Association (APPA) has found that middle-aged women between 45–47 years old are, demographically speaking, the primary shoppers for pet products. And seeing how dogs are the most popular pet in the U.S., that means women are the primary caregivers for a whole lot of dogs. With 63 percent of American households owning at least one pet, this is a lucrative marketplace for savvy marketers. In 2007, sales in the pet industry reached $41.2 billion, according to the APPA. This is an industry that has grown, consistently, year-over-year for more than 10 years. Not only are more people owning pets, but people are spending more on each pet. “Some of the growth of the pet industry is demographics where you have a combination of young people either before they get married or right after they get married adopting pets and at the other end of the spectrum is the baby boom generation whose kids have left home and are adopting pets,” says Phoebe Campbell, president of Campbell Associates, which represents the ASPCA brand for licensing. “The baby boomers are adopting pets almost as a child replacement and that is where a lot of the meteoric growth beyond pet food is coming from.” Another factor in the growth of the pet products industry is that manufacturers and marketers of pet products are raising their profiles to meet the demands of pet owners. Licensed brands that carry an air of authority are establishing themselves in a marketplace that is increasingly prepared to meet the demands of even the most discerning of consumers. “The Petcos and PetSmarts have done a good job of distinguishing themselves from the mass retailers while bringing people into their stores,” says JP Stoops, category manager for pets at Discovery Communications, which owns the Animal Planet and Petfinder.com properties. “I attribute a lot of the growth to these retailers.” These retailers have taken a specialty pet industry that was primarily a catalog business and set up a strong infrastructure of

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the Jeep Doggie Backpack, available in Army green camo and hot pink camo

brick-and-mortar stores across the country. They also have a strong online presence. In addition to the growth of pet retailers, people’s attitude toward their pets has fueled growth. “Pet owners are increasingly focused on the health and welfare of their pets and seek healthier choices in purchasing food, treats, and other consumables,” says Debra Joester, president of The Joester Loria Group, which manages the Jeep, Animal Planet, and Petfinder.com properties for licensing. “After recent pet food recalls, consumers are wary of switching to less expensive brands and are continuing to support better brands in specialty stores.” The pet food recalls of 2007 gained a lot of attention in the media. It caused a lot of pet owners to pay more attention to what they feed their pets and to what sorts of treats and toys they give them. It also brought to light the reality that there aren’t strict governmental regulations in regard to pet products. “With children’s products there are a list of standards and for [human] food, the FDA regulates it,” says Campbell. “One of the


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Kids Making a Difference for Animals is part of the ASPCA Kids line of books.

ASPCA’s licensees for pet toys, Pet King, also has a children’s division and they manufacture their pet products to the same standards as their baby products.” The ASPCA brings along with its license some of the world’s best animal behaviorists and pet experts. Campbell recalls a meeting with one of the ASPCA’s experts where he could look at each toy and tell you where it was going to break and why. That knowledge was very useful in knowing where testers should apply a stress test and in overall product design. A recent addition to the industry, Pet Head, which manufactures a line of grooming products licensed by Bed Head/Tigi, also tests its pet products to human standards. Perhaps the high-profile pet food recalls raised the profile of the pet industry to the point that manufacturers now have to maintain a higher standard to succeed in the marketplace. “It has never been a safer time to buy pet products,” says Tony Lawlor, senior vice-president at Jakks Pets, which manufactures a range of pet products featuring an array of licenses. “Everyone is aware of the issues in the pet and toy industries over the past couple of years. The testing our products go through is light years ahead of what it was two years ago.”

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When talking about any industry these days, the topic of the economy is certain to come up. Climbing unemployment numbers and a fragile credit market have conspired to leave consumers feeling gun shy when pulling the trigger on purchases. “Economically, it is a tough time for just about everybody,” says David Sztoser, senior manager of licensing sales and marketing for 4Site Licensing Solutions, which manages the American Kennel Club (AKC) and Cat Fanciers Association (CFA) properties. “While pet owners are obviously going to continue to buy food, treats, and other necessity products, it wouldn’t be a surprise if people were a bit more frugal when it comes to purchasing something perceived as more of a luxury item.” Just because consumers are being mindful of their purchases doesn’t mean that they aren’t buying anything. Because there is still spending going on, some manufacturers are looking at the shaky economy as a chance to gain ground on its competition. “In an economy like this, it is when we get most aggressive,” says Jakks’ Lawlor. “We are getting very aggressive with our licenses and development of products. We need to give retailers something that is really going to make the consumer buy it.” While there have been a few reports of people abandoning their pets because the economy has left them unable to feed an extra mouth, for the majority of pet owners their pets offer solace in these difficult times. People are spending more time at home and can look to their pets for companionship. And studies show that pet owners will be healthier for the increased time spent with their pets. A recent study at the State University of New York at Buffalo found that people with hypertension who adopted a cat or dog had lower blood pressure readings in stressful situations than those who did not own a pet. Studies have also shown that the companionship of pets helps fight depression and loneliness. That’s not to mention the therapeutic aspects of pets that has been highlighted by the growing trend of the use of animals in hospitals and rehabilitation centers. Pets make many people happy and healthy in a range of ways, from companionship to exercise to entertainment. The growth of the pet industry has gone a long way in helping pet owners ensure that their pets are kept happy as well.


The comprehensive site includes: hundreds of toy reviews and recommendations hot toy lists and editors' picks a product/gift finder informative and amusing blog entries from leading toy, family entertainment, and parenting experts seasonal stories safety tips and recall information daily giveaways of hot toys and more!

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Pet Licensing

by Chris Adams

While dogs may be considered a man’s best friend, studies show that women are the primary purchaser of pet products. This industry has grown consistently year-over-year, with 2007 sales totaling $41.2 billion. Shown below are a range of products that are aimed to continue the trajectory of this industry.

4Sight Licensing Solutions

For the American Kennel Club (AKC) license, new collars, leashes, and harnesses (shown) from Aspen are hitting the market. Petlabs 360 will be launching an AKC line of health supplements for dogs. In addition, Sherpa Pet Group signed on for Cat Fanciers Association to produce a line of travel bags.

The Beanstalk Group

Beanstalk represents the Purina brand for licensing. The Purina Pet Gear line of accessories currently has three licensees: Ethical Products (toys, feeding accessories, leashes, and collars), Bow Wow Pet (beds), and oneCARE (shampoos, stain and odor removal, and lint removal products).

Campbell Associates

The ASPCA Kids line is a focal point for the ASPCA licensing program, which is managed by Campbell Associates. The ASPCA Kids line of books help foster the animal-human bond and encourage responsible pet ownership. In addition, a line of ASPCA-licensed jewelry from IBB is on the way.

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The Joester Loria Group

The Joester Loria Group manages licensing for the Jeep property as well as Discovery’s Animal Planet and Petfinder.com licenses. New additions to the Jeep pet products line include the Jeep Doggie backpack. The backpack features two deep zippered pockets that are ideal for storing treats, toys, and/or gear. The Jeep Car Seat Cover keeps car seats hair-free while also protecting the seats from dust, sun, and dirt. The water-resistant cover is quilted and has a non-skid foam rubber backing. Expect a range of Animal Planet and Petfinder products from licensee Jakks Pets. The line encompasses grooming products, collars, leashes, toys, apparel, costumes, carriers, and beds for dogs, cats, small animals, and reptiles. In addition, licensee T.F.H. Publications will introduce three new field guides to its successful line in 2009. Since the launch of the program in 2006, 53 guides have hit the market, with the number of total copies sold eclipsing 1 million in October 2008.


NASCAR

NASCAR fans can easily outfit their four-legged friends with the Officially Licensed Pet Set by Hunter Manufacturing. It includes an ID tag, as well as a leash and a collar embroidered with driver’s names, including Carl Edwards, Dale Jarrett, Greg Biffle, Jeff Gordon, Martin Truex Jr., Matt Kenseth, and Ryan Newman. Hunter also manufacturers fourfoot and six-foot retractable leashes, collars, and stainless steel food and water bowls. In addition, Hunter makes a NASCAR-licensed pet mat that helps protect floors while keeping pet bowls in place. It features a moisture-resistant surface as well as non-skid backing.

Paws, Inc.

Paws, Inc., the licensing and creative house for Garfield, currently has six pet products licensees. Creative Kids is producing a line of pet accessories based on Garfield. The line ranges from branded bowls and feeding mats to cat can covers and collars. In addition, licensee Canam Industries is producing Garfield kitty litter.

Nickelodeon

The Collegiate Licensing Company

Hunter Manufacturing signed on to produce a range of college-licensed jerseys, bowls, and feeding mats for The Collegiate Licensing Company, which represents a wide spectrum of colleges for licensing. Additional licensees in the pet category include Moon Shine, which uses its signature ribbon application on leashes and collars, Pets First, Smart Dog Products, and Pet Goods, which produces licensed pet beds.

Nickelodeon has signed a deal with Penn Plax to launch an extended line of SpongeBob SquarePants pet accessories. The line, which includes dog toys and bowls, cat and dog collars, beds, apparel, and ornaments will roll out in 33 European territories.

Pet Head

Pet Head is a Bed Head/TIGI-licensed line of dog grooming products. The line of shampoos, créme rinses, and sprays are specially formulated to meet a canine’s needs. All Pet Head formulas are pH adjusted and free of parabens, petroleum derivatives, sulfate, and DEA. The line includes Life’s an Itch, Dirty Talk (shown), Fears for Tears, Quickie, Feeling Flaky, Dry Clean, Furtastic, So Spoiled, Furball, and Poof!

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T

by Paul Narula

THE GREAT OUTDOORS

here is nothing more American than category. “No company can have expertise in square feet of space more than the SHOT Show the concept of the great outdoors. every product that may be associated with its had in 2006. “It’s the one show in the world that Hunting, hiking, camping, and fish- core products,” says Jeannine Dameworth, exhibits hunting, shooting, and all sorts of ing are all pastimes with devoted fan bases. licensing manager at Browning. “The compa- firearms and recreational products,” says Tony These enthusiasts span the economic spec- ny can have their brand on high quality prod- Aeslichman, public relations director at the trum and reach from coast to coast. When ucts without the necessity of hiring many National Shooting Sports Foundation (NSSF), these consumers step outside to participate in experts.” Thus a company such as Browning which acts as the official sponsor of the show. their favorite activities, they bring their can have products associated with fishing, While the show is in and of itself not a favorite and most trusted brands with them. despite being primarily in the firearms busi- licensing-oriented show, companies that do Now consumers have the opportunity to license take advantage of the show’s use many of these items in their own large audience and scope to put their home, as well as in the great outdoors. licensing programs on display. This has One might surmise that in today’s elecbecome more apparent as licensing gains tronic and multimedia-based world, outstrength in the category. The SHOT door activities and the brands associated Show has become a prime event at which with them might be at a disadvantage in to unveil new licensing programs and the licensing marketplace. Many licensors, brand extensions, especially as larger however, are quick to disagree, indicating licensees expand booth space to showa strong performance of both their core case new core products. products and their licensing extensions. Many outdoor companies have high brand One of the factors that has been conawareness among consumers because of Buck Wear, a new license, is a humor-oriented hunting brand. tributing to the growth of this category is their longevity in the market. Browning, Winchester, and Bushnell are all licensors ness. The brand’s image as a reliable firearms the slow but steady rise of women entering whose names are well known even outside of manufacturer translates into consumer trust the consumer base. Traditionally, hunting, fishing, camping, and other activities that the category’s demographic. That makes them for other associated products. fall into the outdoor category are dominated attractive to licensees both for outdoor prodby men and are seen as primarily male-oriucts bearing their name and licensing extenFor this category, there is one truly major ented hobbies. While this is still the case, sions such as apparel or home products. Organizations such as the Boy Scouts of show and that is the SHOT Show, which takes women are becoming a more important part America and Girl Scouts of America both also place this month. The SHOT (Shooting, of the category. Women shooters have garhave high recognition among consumers and Hunting, Outdoor Trade) Show has grown con- nered quite a bit more attention from the make excellent licenses because of their level tinuously every year. The 2008 SHOT Show media recently, thanks to multiple medals boasted an attendance of more than 58,000, won by the women’s team from the U.S. at of exposure. Licensing is attractive for an outdoor with 1,950 exhibitors over the show’s 715,000 the Beijing Olympics and figures such as company since each specializes in its own square feet of exhibit space. That’s roughly vice-presidential candidate Sarah Palin hitparticular niche within the overall outdoor 18,000 attendees, 100 exhibitors, and 100,000 ting the spotlight. Many companies have

Annie Got Her Gun

The Big Show

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begun to take this new female demographic into account in both their core product line and their licensing program. “More companies are catering to women by making guns with smaller grips and lighter weight or shooting and hunting clothing designed for women,” says Aeslichman. Women also become more important as companies branch out into licensing because the licensed product is often part of a family-related activity. A firearms company may produce camping gear for the whole family, or a camping goods company may produce a line of apparel for men, women, and children. In both cases, regardless of the traditional demographic of the company’s core, women become an important part of the decision to purchase licensed product. Outdoor companies are beginning to realize this and altering their marketing strategies and licensing programs to adapt.

In Times of Crisis

While the recent economic difficulties have done few people any favors, the impact on outdoor licensing has been hard to judge, according to those interviewed. Many licensors remain positive, how-

ever. “People will continue to utilize outdoor fun and recreation as a way to participate in something as a family,” says Greg Winter, licensing program manager for Boy Scouts of America. Going for a hike or walk is often considered a cheaper alternative to a trip to the movies or an amusement park. There is also a greater perceived value to spending money on outdoor activities that can involve the entire family rather than indoor pastimes. “I do believe that this is going to stay an incredibly strong category, because in the scheme of things, it is relatively inexpensive,” says Michelle Alfandari, president of MODA International, which manages the Bushnell brand.

A Growing Future

While predicting the future of any licensing category is shaky at best, outdoor brands seem to have the potential to remain a strong category for quite some time. Consumer awareness of the most popular brands extends beyond the core demographic of the category itself. The consistent growth of the SHOT Show, coupled with its use as a venue for licensed product, indicates that this category has a very clear shot at a successful and bright future.

S c o u t i ng O u t L i c e n s i ng O p p o r t u n i t i e s

It’s hard to mention youth and the outdoors without thinking of two of the largest groups for organized outdoor youth activity in the country—the Boy Scouts of America and the Girl Scouts of America. The Girl Scouts of America are currently contemporizing the entire brand. “We are going to partner with manufacturers who align with our values, but who are also tops in their category and can work with us to develop product that speaks to all girls and get that product into marketplaces where girls and families are shopping,” says Karina Gee, licensing manager at Girl Scouts of America. The Boy Scouts of America are also working on de-emphasizing the “Boy” portion of its name for its licensing program, presenting itself as an outdoor educator. “I don’t think it matters if you’re a boy or a girl,” says Greg Winter, licensing program manager for Boy Scouts of America. “It’s a drive to participate [in outdoor activities].” With these initiatives in place, both brands are looking forward to continued success of scouting and everything that goes with it.

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OUTDOOR LICENSING by Paul Narula

Stepping outside opens up a world of sports and activities, as well as a world of branding and licensing to accompany consumers in this category. Here’s a sampling of some of the latest licensed products and licensing deals from a number of outdoor companies.

Bushnell

Bushnell has licensed Bell Ranger to develop a line of apparel for men, women, and children under the Bushnell brand. The deal was facilitated by MODA International Marketing. Bell Ranger will manufacture products for the outdoor and sports enthusiast.

Boy Scouts of America

Boy Scouts of America will expand its line of knives and pocket knives from W.R. Case. The Case Mini Blackhorn knife is the latest addition to the line.

Winchester

Winchester is offering a majority of the artwork created by and for the Olin/Winchester Company for exclusive licensed products with the Winfield Gallery. The art will be available in prints, gifts, and accessories.

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Browning

Browning has an extensive line of licensed products, including a full line of cutting boards from Lifetime Cutting Boards. The boards are designed to be the ideal cutting surface for the kitchen and made with a full surface of Corian. The Browning logo is inlayed on each of the boards.

Buck Wear

Buck Wear has signed a licensing deal with American Sportsmen Sign Company to produce a line of decorative signs featuring Buck Wear’s original imagery.

JQ Outdoors

JQ Outdoors, a brand specializing in outdoor-related licensed artwork and design, announces its new updated website: www.jqoutdoors.com. The site features hundreds of licensed products from manufacturers who use JQ’s art and design. The goal of the new site is to help make the application of art onto licensed products much easier to visualize. JQ Outdoors has also branched out and is manufacturing its own product lines. The company is launching a full-scale woven apparel line featuring the JQ style of outdoor art on men’s and women’s shirts, lounge wear, boxers, beach towels, bandanas, children’s clothing, baby bibs, and bathrobes. JQ Outdoors is also launching a 350 SKU greeting card line branded as Greetings from JQ Outdoors. Both lines are expected to launch this month and will be sold at small retailers up to mid-tier through a 50-state rep network.

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SESAME WORKSHOP

DRISCOLL & POLVERE, NEW HIRES

Sesame Workshop hired Karen Driscoll as vice-president of marketing services and Diana Polvere as vice-president of market intelligence. Driscoll will oversee the development and execution of marketing plans and programs in support of Sesame Street and The Electric Company. She will lead a team responsible for both consumer and trade marketing programs that build affinity and affection for the Sesame Karen Driscoll Street brand, growing its audiences across multiple distribution platforms. Driscoll will also help shape and drive campaign ideas, connecting activities across departments and proposing synergies to maximize resources and opportunities. Most recently, she worked as a marketing consultant for Worldwide Biggies, a digital entertainment studio. Diana Polvere Polvere will provide producers and businesses with valuable insights about their audiences, markets, customers, and performance relative to the competition. She will lead a team responsible for primary consumer market research, syndicated research, and media research. Polvere comes from American Express, where she led a team in their global marketplace group, providing research insights for key business initiatives, new product development, product line strategy, brand communications, and positioning

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COPYRIGHT PROMOTIONS LICENSING GROUP KELLY ELWOOD, MANAGING DIRECTOR, CPLG CANADA

Copyright Promotions Licensing Group (CPLG) named Kelly Elwood to managing director, CPLG Canada. She will head up the Toronto office. Prior to this, Elwood spearheaded the international consumer products division for Cookie Jar Entertainment. CPLG Canada is the Canadian affiliate of the CPLG group of companies, recently acquired by Cookie Jar Entertainment.

ENTERTAINMENT RIGHTS PLC DEBORAH DUGAN, CEO

Entertainment Rights Plc appointed Deborah Dugan to CEO. Dugan has served as president and CEO of Entertainment Rights North America since April 2007, prior to which she was president of Disney Publishing Worldwide.

LIONSGATE ENTERTAINMENT

MICHAEL RATHAUSER, SENIOR VICE-PRESIDENT, MARKETING

Lionsgate Entertainment promoted Michael Rathauser to senior vice-president of marketing for its home entertainment businesses. He will continue to oversee the strategy, marketing, and management for Lionsgate Family Entertainment as well as the StudioCanal library. Rathauser has played a key role in developing partnerships with children’s entertainment brands, including Marvel, Scholastic, American Greetings, and Mattel. He has also overseen the StudioCanal library, which includes Terminator 2: Judgment Day, Total Recall, and Rambo.


ONE LAYOFF IS

A

TRAGEDY, ONE MILLION IS

A

STATISTIC

AT&T lays off 12,000. Mattel lays off 1,000. Citigroup lays off

everyone else does. . . and he got nowhere. And, as they say, drastic times

course of a news day they really just start to sound like, well, numbers.

Central Terminal in an effort to find a job (see picture below). His out-of-

50,000. Viacom lays off 850. NBC Universal lays off 500. These are staggering numbers, but when repeated over and over throughout the

But each of these numbers is an individual employee who worked late,

rescheduled a vacation, came in on Saturday, or neglected time with their children for their job. Each of them has their own individual story.

For some, a layoff may be the push they need to start something they really wanted to do. But for the vast majority, job loss is devastating.

And that brings us to PAUL NAWROCKI, a toy industry veteran. Google

his name and see that he has become an international media sensation. He

is now, quite literally, the poster-child of the economic crisis. After being

laid off from Sababa months ago he started looking for a job the same way

PAUL W. NAWROCKI

call for drastic measures. So Nawrocki put on a suit, donned a sandwich

board detailing his plight, and stood in front of New York City’s Grand the-box thinking has catapulted him into the media spotlight. Even though he is making headlines he is also still looking for a full-time position.

We have certainly been in touch with many people who have recently

been laid off and we thought we’d profile two of them this month: Nawrocki and RACHEL BRENNER (formerly of Steve and Barry’s). The

goal is to find each person a new position. If your company is hiring for these positions, please read below and contact these individuals. If you would like to be profiled in an upcoming issue, please contact Nancy Lombardi at nancy@anbmedia.com.

OPSMAN2008@AOL.COM

HOME (845) 831–1802 • CELL: (646) 584–3900 SEEKING: I would like a position in a company that works

as a team for the common goal, that can find a sense of fun in the toy business even though it is business. I would like to work for a company that is financially stable with realistic goals for the company and its employees. I live in Beacon, N.Y., which is easily accessible to most of the tri-state area.

PREVIOUS POSITION: director of operations, New York-based Sababa Group, Inc.

PREVIOUS RESPONSIBILITIES: I was in the middle of operations, sales, and prod-

uct development to coordinate production—taking into account sales projections, time lines from product development, lead times, and MOQs from vendors. I acted as liaison between the N.Y. office and Hong Kong contacts and vendors. I placed master purchase orders for production of inventory to cover our projected needs for domestic inventory and FOB orders from our customers. I oversaw the order processing department for the input and fulfillment of our domestic orders, FOB orders, and international orders.

STRENGTHS: I am tenacious and reliable. I always make a point of understanding

the processes around me so I can work with the limitations that exist while looking for ways to improve the system. Proficient in Excel and Word. PREVIOUS EXPERIENCE: I have worked in almost every area of operations, from

sales administration to import management. I have traveled to see vendors in China during peak shipping season for a month at a time.

RACHEL BRENNER

RACHEL.A.BRENNER@GMAIL.COM

SEEKING: full-time corporate and/or consumer public rela-

tions position in New York City. Also interested in freelance opportunities and/or work-from-home situation.

PREVIOUS POSITION: senior manager of public relations

Steve & Barry’s (New York-based national apparel retailer)

PREVIOUS RESPONSIBILITIES: I handled media relations and corporate communication, also serving as company

spokesperson. My work included the launch and on-going publicity efforts for brands including Sarah Jessica Parker,

Venus Williams, Stephon Marbury, Amanda Bynes, WWE, Hershey’s, and Marvel.

STRENGTHS: I am a media relations and communication pro-

fessional with experience in attaining bottom-line results. I’m a team player skilled in working with all levels of man-

agement. I have expertise in television, print, and radio media; crisis communication; company profiles; media-plan

development; market and competitive research; and staff management. Proficient in Excel and PowerPoint.

PREVIOUS EXPERIENCE: public relations and communication

intern for Hadassah (an international non-profit women’s organization) in Jerusalem, Israel

ROYALTIE$ JANUARY 2009

33


FEBRUARY

5–10

Nuremberg Toy Fair

nurembergtoyfair.com

Nuremberg Exhibition Center

Nuremberg, Germany

12–14

Global Pet Expo

globalpetexpo.org

Orange County Convention Center

Orlando

6–8

New York Comic-Con

15–18

American International Toy Fair

17–19

MAGIC Marketplace

MARCH

nycomic-con.com

toyassociation.org magiconline.com

Jacob Javits Convention Center Jacob Javits Convention Center Las Vegas Convention Center

New York City New York City Las Vegas

6–9

Halloween Costume & Party Show

hcpshow.com

The Sands Expo & Convention Center

Las Vegas

22–24

International Housewares Show

housewares.org

McCormick Place

Chicago

7–10

Western Toy and Hobby Show

30–4/4

A PRIL

20–23

MIPTV

wthra.com miptv.com

The Fairplex

Palais des Festivals

Pomona, California Cannes, France

NAB Show

nabshow.com

Las Vegas Convention Center

Las Vegas

6–8

ToyCon 2009

toyassociation.org

Wigwam Golf Resort and Spa

Litchfield Park, AZ

19–21

All Candy Expo

allcandyexpo.com

McCormick Place

Chicago

25–30

MAY

17–19

JUNE

High Point Market

Surtex

ihfc.com

surtex.com

International Home Furnishings Center

Jacob Javits Convention Center

High Point, NC

New York City

2–4

E3

e3expo.com

Los Angeles Convention Center

Los Angeles

23–26

Comic-Con ’09

comic-con.org

San Diego Convention Center

San Diego

JULY

LICENSING INTERNATIONAL EXPO TUESDAY–THURSDAY, JUNE 2–4; MANDALAY BAY CONVENTION CENTER, LAS VEGAS

FALL TOY PREVIEW TUESDAY–THURSDAY, OCTOBER 6–9; DALLAS MARKET CENTER, DALLAS

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ROYALTIE$ JANUARY 2009


by Christopher Byrne

POSTED

BELOW IS A SAMPLING OF WHAT

A MERICAN

TOP-SELLING 2009 CALENDARS, DECEMBER 14, 2008 Source: Barnes & Noble 1. 2009 Barack Obama Wall Calendar, by Sourcebooks 2. 2009 Dilbert Box Calendar, by Scott Adams 3. 2009 Mom’s Family Wall Calendar, by Sandra Boynton 4. 2009 Jeff Foxworthy “You Might Be a Redneck If. . .” Box Calendar, by Jeff Foxworthy 5. 2009 Urban Dictionary Box Calendar, by Aaron Peckham 6. 2009 Barnes & Noble Navy Softcover Desk Diary Calendar, by Barnes & Noble 7. 2009 Complete Runner’s Day-by-Day Log Engagement Calendar, by Andrews McMeel Publishing 8. 2009 Charles Wysocki Americana Wall Calendar, by Charles Wysocki 9. 2009 Sports Illustrated Swimsuit Wall Calendar, by DateWorks 10. 2009 Bible Verses Page-a-Day Calendar, by Workman Publishing Company

TOP KID AND TEEN WEBSITES, NOVEMBER 2008 Source: Alexa.com 1. Wikipedia.com 2. YahooGeoCities.com 3. GameSpot.com 4. Dictionary.com 5. GameFAQs.com 6. CartoonNetwork.com 7. Xbox.com 8. Neopets.com 9. ElectronicArts.com 10. Nick.com

TOP-SELLING HOLIDAY ALBUMS 1991–2007

Source: Nielsen SoundScan Title/Artist • Units 1. Miracles: The Holiday Album / Kenny G. • 7,195,000 2. These Are Special Times / Celine Dion • 4,838,000 3. Merry Christmas / Mariah Carey • 4,801,000

4. 5. 6. 7.

8.

9. 10.

CONSUMERS ARE INTERESTED IN THIS MONTH .

Christmas in the Aire / Mannheim Steamroller • 3,683,000 Fresh Aire Christmas / Mannheim Steamroller • 3,548,000 Mannheim Steamroller Christmas / Mannheim Steamroller • 3,391,000 Now That’s What I Call Christmas! Vol. 1 / Various Artists • 3,215,000 When My Heart Finds Christmas / Harry Connick, Jr. • 2,970,000 Faith: A Holiday Album / Kenny G. • 2,735,000 Beyond the Season / Garth Brooks • 2,649,000

TOP HOLIDAY TV SPECIALS

Source: ChristmasAlmanac.com 1. A Charlie Brown Christmas • 1965 2. Dr. Seuss’s How the Grinch Stole Christmas • 1966 3. Rudolph the Red-Nosed Reindeer • 1964 4. Santa Claus Is Comin’ to Town • 1970 5. A Muppet Family Christmas • 1987 6. Bing Crosby’s 1977 Christmas Special • 1977 7. Frosty the Snowman • 1969 8. The Carpenters at Christmas • 1977 9. John Denver & The Muppets: A Christmas Together • 1979 10. The Little Drummer Boy • 1968

TOP ALBUM DOWNLOADS, DECEMBER 14, 2008

Source: iTunes 1. A Charlie Brown Christmas, Vince Guaraldi Trio 2. Circus, Britney Spears 3. 808s & Heartbreak, Kanye West 4. Twilight Original Soundtrack, Various Artists 5. Fearless, Taylor Swift 6. The Taylor Swift Holiday Album, Taylor Swift 7. Day & Age, The Killers 8. Dark Horse, Nickelback 9. What a Night! A Christmas Album, Harry Connick Jr. 10. Let it Snow!– EP, Michael Bublé

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From the people who brought you American Idol, comes the exciting new game show – Million Dollar Password – CBS’ highest-rated new show this season with 10.6 million viewers. Hosted by daytime Emmy award-winning Regis Philbin. Stay tuned for 6 new episodes coming soon!

For more information, contact: James Ngo Director of Consumer Products T: +1 818 748 1145 E: james.ngo@fremantlemedia.com www.fremantlemedia.com