Royaltie$, March 2009 by aNb Media

ALSO FROM IMAGI STUDIOS: 2007

2010

2011

2010

For licensing information regarding Imagi Studios properties, please contact:

Russell Binder at Striker Entertainment - russell@strikerent.com / 818.225.9355 or Marc Mostman at Most Management - marcm@mostmanagement.com / 818.880.0508

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Volume 4, No. 3

March 2009

Features 18 BY

NANCY LOMBARDI

20 BY

Halloween: Licensor Roundup

PAUL NARULA

28 BY

Transformation Is Only One Purchase Away

PAUL NARULA

26 BY

Housewares: Licensor Roundup

LAURIE HAHN

24 BY

There’s No Place Like Home

LAURIE HAHN

22 BY

Barbie: Five Decades of Fabulous

The 21st Century Publisher

CHRIS ADAMS

OBSERVATIONS & OPINIONS

Departments

PAGE

THE TICKER

PAGE

REAL DEAL

PAGE

ROYALTIE$ MARKETPLACE: BAKUGAN

PAGE

MARKETING ASSOCIATION

PAGE

YOU’RE HIRED!

PAGE

ENDCAP

PAGE

ESSENCE

STYLE

INDUSTRY OUTLOOK: PROMOTION

ON THIS PAGE (FROM LEFT TO RIGHT): Disguise’s Wolverine costume, the biggest news going in literary-based licensing: Twilight, and Mattel’s 1959 Barbie

ON THE COVER: M.E. Heuck manufactures a line of COVER BY DESIGN EDGE

Hamilton Beach-licensed cookware.

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

PUBLISHER ANDY KRINNER ANDY@ANBMEDIA.COM

by Andy Krinner

IT IS WHAT IT IS

ASSOCIATE PUBLISHER BOB GLASER BOB@ANBMEDIA.COM

he American International Toy

hibitors to change their plans, with the

a few licensing-industry executives about

might have worked well. Unfortunately,

Fair recently ended. This gave me

the opportunity to talk with quite

the current state of affairs.

A hot topic of conversation was the Li-

censing Show, which, we are all aware, moved its venue to Las Vegas beginning

with this year’s show. Many companies are still unhappy about the change. Coupled with what seems like daily rumors

move. This is an apples and oranges situation. Under ideal circumstances the move

too many will judge the show without con-

sidering the new burden of today’s economic climate it has to shoulder.

Lastly, here at aNb Media we are going

through some changes, too. As many of

our readers already know, in January we introduced digital issues of ROYALTIE$ and

that major companies are pulling out of the

TOYS & FAMILY ENTERTAINMENT on our

LIMA to talk about the concerns with

in the U.S. and abroad, we have decided

show, you can see why so many are discussing it. I attended a breakfast hosted by show management. Here is my take:

What’s done is done; the fact is if you

website, free of charge. Judging by the overwhelming initial response both here

to make a major push into the digital world by producing six issues of ROY-

want to work in licensing, you are going

ALTIE$

there may be a small communication gap

12 issues per year packed with time-sen-

to Las Vegas and all the bellyaching in the world will not change that. I also think that because it seems that show management is

eager to help exhibitors get through the move and the tough times, but not every-

one knows that. I would also refrain from

adding fuel to the fire by trying to connect a tanking economy, causing some ex-

in digital format only. With this

move we will be giving our advertisers worldwide exposure. We will still produce sitive information because the informa-

tion pipeline doesn’t simply shut down every other month. If you haven’t done so

already, please sign up for your free digital copies of ROYALTIE$ and TOYS & FAMILY

ENTERTAINMENT at www.anbmedia.com

Correction to the February 2009 issue of ROYALTIE$: On page 23, SGI Apparel Group, not SG Footwear (as was listed), is the master apparel, accessories, and stationery licensee for Harley-Davidson.

ROYALTIE$ MARCH 2009

ADVERTISING MANAGER AMY LAND AMY@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 CONTRIBUTORS MATT NUCCIO, MATT@DESIGNEDGE.NET; MATTHEW TILLEY 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

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ROYALTIE$ is published 12 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

INDUSTRY HEADLINES

DR PEPPER SNAPPLE GROUP SIGNS WITH BRAND CENTRAL

Dr Pepper Snapple Group (DPS) announced that it has selected Brand Central as its licensing agency of record for its diverse group of brands. DPS manufactures, markets, and distributes more than 50 brands throughout the United States, Canada, Mexico, and the Caribbean. In addition to its flagship Dr Pepper and Snapple brands, the company’s portfolio includes 7UP, Mott’s, A&W, Hawaiian Punch, Canada Dry, Schweppes, Squirt, RC Cola, Diet Rite, Rose’s, Yoo-hoo, Clamato, Mr & Mrs T, and other consumer favorites.

HASBRO NAMED MASTER LICENSEE

FOR

SID THE SCIENCE KID

The Jim Henson Company announced that it has appointed Hasbro, Inc., the master toy and game licensee for its Sid the Science Kid property. The four-year license grants Hasbro the rights to introduce an array of products that are slated to debut at retail this fall. Sid the Science Kid is an educational animated television series airing daily on PBS Kids that uses comedy to promote exploration, discovery, and science readiness among preschoolers.

Sid the Science Kid

LIONSGATE AND BRAND SENSE PARTNERS JOIN FORCES

Lionsgate recently announced that Brand Sense Partners has been named the worldwide licensing representative for the upcoming film Alpha and Omega. Scheduled for release in the fall of 2010, the film will feature the voices of Justin Long, Hayden Panettiere, Christina Ricci, Dennis Hopper, and Danny Glover. The licensing program, to be developed by Brand Sense, is expected to include publishing, toys, games, interactive, apparel, and accessories. Brand Sense will also drive retail sales with promotions and marketing partnerships.

JAZWARES SIGNS

ON AS

LICENSEE

FOR ASTRO

BOY

Imagi Studios has granted Jazwares toy rights to the CG-animated feature film Astro Boy. Set in the future, Astro Boy is a classic superhero story about a young robot with incredible powers. His adventure-filled journey in search of his identity and destiny takes him into a netherworld of robot gladiators before he returns to save Metro City. The launch of the product line is set to coincide with the movie’s North American release in October 2009. The product range will include figures, vehicles, electronic toys, roleplay products, and accessories.

INDUSTRY EXECUTIVES CREATE THINKTANK

Astro Boy Vinyl Figure

Long-time distribution executive David Wollos and veteran marketing and licensing executive Joan Packard Luks have joined forces to establish The ThinkTank Emporium—a media, marketing, and licensing company that provides coaching and guidance to property owners/licensors. Wollos and Luks will work with the content owners to develop properties in all areas of mass media exploitation. A key initial focus of the ThinkTank is the children and family category, where the company will identify content including published books, unpublished manuscripts, television pilots, and toy products and cultivate the properties for media exploitation, licensing, and retail opportunities.

ROYALTIE$ MARCH 2009

I WANT MY

DREAM HOUSE

速

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Original 1979 BARBIE® DREAM HOUSE®

PURRQ^QZ` T[a_Q BARBIE® DREAM TOWNHOUSE™ Available Fall 2009

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SpongeBob at Sundance

Nickelodeon & Viacom Consumer Products (NVCP) debuted new SpongeBob SquarePants jewelry and apparel in Park Simmons Jewelry Co.’s City, Utah, during the 2009 Sundance Film SpongeBob pendant Festival in January. Simmons Jewelry Co. and NVCP partnered to create a fine jewelry and watch line inspired by SpongeBob. Led by the creation of an exclusive, 12-carat total weight, diamond-encrusted SpongeBob pendant, to be auctioned off at a later date with proceeds benefiting the Diamond Empowerment Fund, the collection will feature avant-garde designs utilizing enamel, gold, silver, and diamonds. Available at fine jewelry and specialty retailers this fall, the products, for men and women, will retail from $150–$75,000. NVCP also partnered with Humanity to create a series of five environmentally themed T-shirts for Nickelodeon’s The Big Green Help’s water conservation campaign, “SpongeBob and You Save the Big Blue.” The T-shirts will be available in men’s, women’s, boys’, and girls’ sizes. Each tee is made in the U.S. from 100 percent organic cotton and is encrusted with crystals. Retailing at $98, the tees will hit shelves later this year.

Licensing Fan Favorites

Some of the world’s most popular film and television properties will be emblazoned on a new T-shirt line as a result of an agreement between Twentieth Century Fox Licensing & Merchandising and apparel maker Ripple Junction. The new portfolio agreement will bring more than 25 big and small screen gems from the past 30 years to a line of contemporary and retro-styled tees. The official licensed apparel will hit stores early this year. Properties include Buffy the Vampire Slayer (shown), How I Met Your Mother, King of the Hill, Die Hard, Planet of the Apes, Say Anything, and The Sandlot.

Cable Channels Go Green

Envirosax, a manufacturer of eco-chic reusable shopping bags, partnered with the cable networks Animal Planet and Planet Green to create branded Envirosax bags. For Animal Planet, Envirosax will produce a five-design series of intriguing animal prints for the animal lover who is also concerned about the health of the planet. The theme of the new line is “In Your Backyard.” The Planet Green bags (shown) are a five-print series of bright graphic patterns that incorporate shades of green and blue, intended for adults and children of all ages. Both lines are available for sale at www.envirosax.com.

Miss Sixty and Olive Oyl

Miss Sixty partnered with King Features Syndicate to create the limited-edition Miss Sixty Olive Oyl collection featuring the classic cartoon character. The collection, which launched worldwide last month, marks Miss Sixty’s debut in the licensed cartoon character apparel category. The collection of three soft cotton T-shirts is branded with images of Olive Oyl. The ’80s-inspired T-shirts incorporate bold neon colors, spray-paint art, sequin embellishments, and a nod to Andy Warhol’s iconic Pop Art. The collection retails between $79–$99 and will be available in the United States at Miss Sixty retail stores nationwide. The collection will also be sold internationally in Italy, the UK, France, Germany, Spain, Japan, China, and Canada.

ROYALTIE$ MARCH 2009

4KIDS ENTERTAINMENT AND SPIN MASTER

4Kids Entertainment has named Spin Master as the master toy licensee for Chaotic, a brand that integrates a collectible trading card game with an online multi-player experience and an animated TV series. The agreement grants Spin Master exclusive rights worldwide to design, develop, and manufacture Chaotic toys, including action figures and collectibles. Spin Master also has the exclusive rights to market and distribute toys (excluding plush) in North America, the United Kingdom, France, and Mexico.

ENTERTAINMENT RIGHTS AND MULTIPLE LICENSEES

Entertainment Rights has announced a new round of consumer products partners for the Where’s Waldo? brand. Briefly Stated and Giant Merchandising will roll out Waldothemed apparel for young men and juniors. Patch Products will produce a line of family games. SmileMakers will create a line of health-specific stationery for dentists’ offices. Sellers Publishing will release a line of Where’s Waldo? calendars featuring scenes from the books. Multipet International will be handling a line of pet products. These companies join a list of partners that include Elope, BioWorld, USAopoly, and more.

CBS CONSUMER PRODUCTS AND FREMANTLEMEDIA ENTERPRISES

FremantleMedia Enterprises (FME) and CBS Consumer Products have announced an agreement that will appoint FME as CBS’s official licensing agent in Asia. FME will build up CBS’s current merchandising initiatives for brands such as CSI, America’s Next Top Model, 90210, and Star Trek, as well as classic TV brands such as Mighty Mouse, Cheers, and I Love Lucy.

CHORION AND SPIN MASTER

Global media content company Chorion has signed Spin Master to develop a range of preschool toys based on the literary character Olivia. This master toy deal partnership comes on the heals of the debut of Chorion’s new 3-D CGI television series, Olivia, based on the same character, which will air regularly on Nickelodeon and debut on up to 20 other channels internationally this year. Spin Master’s toy line is expected to be on shelf in fall 2010.

COOLABI AND LISA MARKS & ASSOCIATES

Coolabi, the company that owns the tween and young teen girls brand Scarlett & Crimson, has chosen licensing and marketing agency Lisa Marks & Associates (LMA) to represent the brand in North America. Scarlett & Crimson was created by designer Ged Backland and has been marketed in the UK by Coolabi. LMA will be responsible for growing the brand in the U.S. in the teen and tween girls market. The Scarlett & Crimson brand centers around two girls who are best friends and share everything with one another, including secrets. Simon & Schuster has signed on as a licensee for publishing in the U.S., UK, and Canada, with books launching this summer.

ROYALTIE$ MARCH 2009

TIMMY TIME AND MULTIPLE LICENSEES

Aardman Rights has secured a number of licensing partners for its preschool property, Timmy Time. The in-production stop-motion animated series has been bought by CBeebies in the UK and by Disney Channel worldwide, including in the U.S. In the UK, Aardman has signed Golden Bear for wooden toys, Cooneen Textiles for nightwear and underwear, DNC UK for tableware and drinkware, Character World for Bedding, RJ Jarret for children’s footwear, Roy Lowe & Sons for children’s socks, William Lamb for slippers, and more. Aardman has also created a strategic relationship with HIT Entertainment in the U.S., which will include all consumer products for Timmy Time in North America in all key categories, including home entertainment, toys, games, publishing, apparel, and accessories.

MOTEL 6 AND LICENSING LINK

Timmy Time

Licensing Link has been named as the licensing agent for the Motel 6 brand. Motel 6 is a motel chain with more than 1,000 locations in the U.S. and Canada and is a part of the Accor Hospitality family of brands. Licensing Link will capitalize on Motel 6’s logo, as well as the brand’s slogan “We’ll leave the light on for you.” Licensing Link will focus its efforts in categories such as apparel, room décor, novelty, lottery tickets, housewares, and more. Motel 6 joins Licensing Link’s roster of properties that already includes Jolt Energy, Dubble Bubble, Dippin’ Dots, Speed Racer, and White Castle.

JIM BENTON AND CPLG CANADA

CopCorp Licensing has appointed CPLG Canada as a sub-agent to manage the licensing programs for Jim Benton’s brands, including It’s Happy Bunny, Just Jimmy, Meany Doodles, and Total Trouble, in Canada. CPLG will work to continue the expansion of these four brands in the Canadian market. CPLG already represents Jim Benton brands in Germany, France, Spain, Italy, and Portugal.

AMERICA’S VETDOGS AND MODA

MODA International Marketing has been appointed the exclusive licensing agency representing America’s VetDogs, the provider of guide, service, and therapy dogs for veterans with disabilities and active duty personnel. The brand is represented by the Sgt. VetDogs image of a dog in a camouflaged helmet. MODA will be investigating licensing opportunities in a number of pet-related categories, such as food, dog beds, leashes, bowls, backpacks, crates, toys, and veterinary supplies.

SYNERGY AND LEVERACTIVE

America’s VetDogs products Baby software maker Leveractive has signed an exclusive agreement with Synergy Licensing to represent the Giggles Baby, Giggles Toddler, Giggles Gang, and other Giggles-related properties to the infant and children’s market across all product categories. The brand, based on the Giggles Computer Funtime For Baby software series from Leveractive, will focus on the characters of the Giggles Gangs and the core values of the software products. Synergy will be making efforts in all key categories, including toys, games, plush, apparel, accessories, publishing, and home furnishings.

ROYALTIE$ MARCH 2009

BAKUGAN

by Paul Narula

ombining monsters, collectibility, and an action-oriented cartoon show has been a proven formula for success in the past. Now Bakugan Battle Brawlers can further prove the effectiveness of that recipe as the show’s ratings climb and children begin to demand more and more merchandise based on the show and game. The plot of the Bakugan Battle Brawlers animated series follows the adventures of a young boy named Dan Kuso. When cards begin falling from the sky across the world, they are used to create a new card game for children called Bakugan. Dan and his friends, Shun, Marucho, Julie, Runo, and Alice, become a well-known team of Bakugan players. Unbeknownst to them, Bakugan cards and creatures actually correspond to another dimension, known as Vestroia, where a conflict between good and evil has erupted and begun to take its toll on the human world. Dan and his friends are wrapped up in the conflict, working with their Bakugan and turning what started as a game for them into a race that could save the entire world.

ROYALTIE$ MARCH 2009

The Bakugan Battle Brawlers anime television series was originally introduced in Japan in 2007 and made its debut on Cartoon Network in February 2008. Sega Toys worked with Spin Master to create a strategic game based on the game played within the anime, called Bakugan, that features metal cards and magnetic spring-loaded miniatures to represent characters, abilities, and Bakugan from the show. Players can collect cards and Bakugan figures and face off against one another. Cartoon Network has put together a strong licensing program for the Bakugan brand. Spin Master is the master toy licensee, and continues to release numerous additions to the Bakugan line. Apparel licensees include Hybrid for T-shirts and SGI for sleepwear. Franco has signed on to produce bedding and sleepwear accessories. Random House will be publishing Bakugan manga under its Del Rey Manga imprint. Other licensees include Digital Blue, Accessory Innovations, Scholastic, and more. With a new season of the show on the way for this spring, Bakugan’s licensing program won’t be backing down any time soon.

Fast Facts ° Each Bakugan has one of six elemental attributes: Pyrus, Aquos, Subterra, Ventus, Haos, and Darkus.

° The Bakugan property is a joint production from Spin Master, Nelvana, and Sega Toy. Cartoon Network is the exclusive U.S licensing agent.

° Toys “R” Us hosted Bakugan tournaments in multiple store locations across the U.S. and Canada in 2007 and 2008.

° Season 2 of the anime will not only introduce new aspects to the show, but will be accompanied by additional mechanics changes to the Bakugan game.

° A Bakugan Starter Pack contains three Bakugan balls, three Gate cards, and three Ability cards.

DIGITAL BLUE

SPIN MASTER

Digital Blue produces a line of consumer electronics based on the Bakugan license. The Bakugan Digital Cameras, shown here, are pocket-sized and designed for easy use by boys 6â&#x20AC;&#x201C;11 years of age.

New from Spin Master are Bakugan Special Attack figures. They feature new special abilities, such as Spin Top, Element Shift, Jumping, Dice Roller, and Heavy Metal, as well as new takes on the original Bakugan stylings.

FRANCO

HYBRID

Hybrid will produce a new line of T-shirts for juniors. The shirts will feature characters from the Bakugan property, as well as action shots and themed imagery from the brand.

Franco has been named the official licensee for Bakugan bedding, including sheets, comforters, pillows, and more (shown). In addition, Franco is also the licensee for beach towels and bath accessories.

RANDOM HOUSE

Random House handles publication of the Bakugan manga and film comics. The publishing is done through Random Houseâ&#x20AC;&#x2122;s Del Ray Manga imprint and encompasses the graphic novels and manga that feature Bakugan characters and stories.

ACCESSORY INNOVATIONS

Accessory Innovations is the licensee for Bakugan-branded lunchbags, messenger bags, and backpacks (shown). These products will be based on the style of popular Bakugan characters and feature imagery from the property.

ROYALTIE$ MARCH 2009

The Return of Clipping Coupons by Matthew Tilley

n 1894 coupons first promoted a new fountain drink called Coca-Cola and since that time have become a mainstay of promotional plans and the shopping experience. Now, more than $300 billion worth of coupons are issued each year, with nearly three billion offers being used. In the current economic climate consumers are looking to stretch budgets even further so the question isn’t whether or not coupons should be part of the retail landscape, but rather how best to take advantage of them. Contrary to stereotypes that might exist, coupon users represent every demographic segment, cutting across age, ethnic, and socio-economic classifications. In fact, according to the Promotion Marketing Association (PMA), nearly 90 percent of U.S. shoppers say they use coupons. That said, there is a “typical” consumer who tends to be a more avid user: an older (50+) and educated (four-year college degree or more) white female whose annual household income is $75,000—$150,000. These heavy coupon users are great customers. They are often very loyal, high-consumption households with the largest basket sizes and more frequent transactions. Consumers who don’t fit that description use coupons as well, but they may have some coupon-use obstacles that must be addressed. For example, Hispanic consumers tend to use fewer coupons than the average user. The reasons include language barriers (recent immigrants may speak little English), media

ROYALTIE$ MARCH 2009

barriers (this consumer may not use traditional media where most coupons are found), and even retail barriers (this consumer may shop in outlets that don’t accept coupons or in locations that sell products for which coupons aren’t available). Young consumers present similar problems. They don’t read as many newspapers or shop the way older consumers do. However, when marketers address their needs using non-traditional media, in-store promotion, and targeted messaging among other ideas they find that even young consumers can become avid coupon users.

WHERE DO COUPONS COME FROM?

Coupons are available from a variety of sources that can be classified in three ways: • IN STORE—Reaching consumers in the store is direct and effective. These coupons comprise nearly one-third of all coupons redeemed by consumers. They can be on-shelf, on-package, in-package, at the checkout, or in a kiosk. • THROUGH MEDIA—The delivery options are as varied as the types of media available. However, the most popular is the Sunday newspaper free-standing insert (FSI), where nearly 90 percent of coupons are found. Other popular methods include the internet and magazines. • DIRECT TO CONSUMERS—Bypassing media and the store, direct coupons can be more targeted. These are sent through direct mail, frequent shopper programs, or email campaigns.

In addition, some creative consumers divert coupons to alternative sharing or trading markets. These can be as informal and small scale as neighborhood coupon-sharing groups or as organized as subscriptionbased trading websites. On both ends of the spectrum, these groups cater to organized heavy coupon users. Some casual users may try them, but with so many coupons available, most find significant savings from coupons available to them free of charge. Often these groups work against marketers’ original intent for promotions. However, smart retailers should be aware that they exist and that avid coupon users will seek out coupons from a variety of sources to purchase the promoted products and services.

THE IMPACT OF THE ECONOMY

In 2007, due in large part to a weakening economy, coupons bucked a 15-year trend of declining consumer response. From 1992–2007, consumers had been using fewer coupons each year. But in 2007, redemption had flattened out at 2.6 billion coupons redeemed. Looking forward, several consumer surveys suggest a renewed interest in coupons, with most respondents indicating that they plan to use more coupons. With the average value of a

coupon hovering around $1.25, the savings can add up quickly and help stretch anyone’s budget. In 2007, consumers saved nearly $3 billion using coupons—mostly for grocery items, but also for a host of products. And that’s after leaving nearly $300 billion on the table in the form of offers that were available but unused.

MAKING COUPONS WORK YOUR BUSINESS

FOR

Whether distributing coupons yourself or taking advantage of manufacturer-issued coupons, this promotional tactic can help grow your business. Here are four quick tips: • BE COUPON-FRIENDLY—Coupon acceptance policies should be fair yet flexible to

allow consumers to use the variety of coupons available. Ensure that cashiers fairly apply those policies for all consumers. • CONNECT WITH YOUR LOYALTY PROGRAM— If you have a loyalty or frequent shopper program, use it to distribute targeted coupons. This can be your own offers or those funded by your suppliers. • BOOST YOUR ADVERTISING—Add punch to your advertising by highlighting special cents-off offers. Consumers do partake of these promotions. • SAMPLE COUPONS—Add a coupon component to your next sampling event and it will boost sales. With the annual “September Is National

Coupon Month” campaign, PMA reminds consumers just how valuable coupons can be. The association’s Coupon Council also provides resources to brands and retailers to help them understand and make the best use of coupons as a marketing tool. For more information about how to make coupons work for your business, contact the Promotion Marketing Association at www.couponmonth.com. Matthew Tilley is the co-chairman of the Promotion Marketing Association’s Coupon Council and director of marketing for coupon processing agent, CMS, Inc. He can be reached at matthew.tilley@inmar.com.

ROYALTIE$ MARCH 2009

Barbie: Celebrating Five Decades of Fabulous by Nancy Lombardi

A year-long celebration is underway for the 50th anniversary of Barbie. Mattel is celebrating the brand’s past and present while looking ahead to its future. This month, R O Y A LT I E $ takes a brief look at the history of Barbie.

1950

• 1959: Barbie Millicent Roberts is introduced at New York Toy Fair. The fashion doll sold for $3. Additional fashions sold for $1–$5. In its first year, Mattel says 300,000 Barbie dolls were sold.

1960

• 1962: Red Flare Barbie reflects the style of the times with a nod to trendsetter and First Lady, Jackie Kennedy, with a red pillbox-style hat and matching red overcoat. • 1965: The world is fascinated with the possibility of space exploration. Miss Astronaut Barbie shows girls that any career is possible—four years before man lands on the moon.

1970

• 1971: The Barbie Country Camper is introduced as the nation’s youth are inspired by nature, cross-country travel, and camping. • 1977: The Barbie Star-vette is introduced as California car culture sweeps the nation.

1980

• 1981: The debut of MTV changes the music industry and subsequent generations of

ROYALTIE$ MARCH 2009

kids. Barbie and The Rockers mirror the times with big hair and a popular band.

• 1989: Barbie joins the Army one year before the Gulf War begins. Barbie’s uniform is approved by the Pentagon, ensuring authenticity.

1990

• 1992: Geraldine Ferraro makes history as she runs for U.S. vice-president. Although not affiliated with any political party, Presidential Candidate Barbie is released.

• 1998: The WNBA is gaining in popularity and Mattel releases WNBA Basketball Player Barbie. In addition, Barbie became a NASCAR driver, 10 years before Danica Patrick’s historic Indy Car win in 2008.

2000

• 2007: The digital revolution, while still in its infancy, is undergoing dramatic, rapid change. Kids, and therefore Mattel, are at the forefront of these changes. Barbie is reimagined as a new doll-shaped MP3

On the left is Mattel’s Barbie and Ken from the 1960s. Pictured above is fashion designer Rachel Roy’s interpretation of the iconic Barbie bathing suit at Mercedes-Benz Fashion Week this past February.

player with removable snap-on fashions and the ability to link to barbiegirls.com, which Mattel says is the first-ever virtual world designed for girls.

• 2009: The 50th anniversary year-long, global celebration kicked off in February with a star studded Mercedes-Benz Fashion Week show. On March 9, Barbie’s official birthday, Mattel hosted a party in her honor. Mattel recreated Barbie’s Malibu Beach House for partygoers in none other than Malibu, California.

MAGIC IS HIS DESTINY

Production

COMING TO NBC IN SUMMER 2009 Merlin is the exciting, ambitious and action-packed drama which sees the myths, monsters and magic of the legend brought to life with stunning CGI and captivating storytelling to enthral and enchant the whole family. Merlin has cast its spell over critics and audiences alike, making it the top drama series of the autumn season in the UK. A global phenomenon, the series has already sold to over 112 territories worldwide with significant home entertainment and licensing deals in place. Series 2 starts filming Spring 2009, promising even more magical adventures.

0207FLW Merlin Royalties ad Jan 09.indd 1

For further information, please contact: James Ngo Sr. Director, FremantleMedia Enterprises T: (818) 748 1145 E: james.ngo@fremantlemedia.com www.fremantlemedia.com

29/1/09 17:11:47

THERE’S NO PLACE LIKE HOME

by Laurie Hahn ith so many brands in the licensed housewares category, one would think consumers might feel overwhelmed by all of the choices. Instead, variety guarantees that there is something for everyone. “Consumers purchase licensed housewares as a form of selfexpression,” says Andrea Brent, senior director of licensing, Brand Central. No matter what consumers hope to do in their homes, from cooking to entertaining, licensed housewares offer the tools with which to do it. Those tools become even more important as consumers find themselves spending more time at home to counterbalance the effects of the economy. Why eat out when it’s cheaper to cook a meal at home? Why hang out with friends at a bar when entertaining at home is as easy as purchasing Malibu Rum- and Kahlúalicensed glassware? “They’ve decided that the fun doesn’t actually stop. It’s just that they’re going to do it in a different way,” says Angela Farrugia, group managing director for The Licensing Company, which represents Malibu Rum and Kahlúa. “They might not do it at a restaurant. They will do it at home.” Others agree that licensed housewares will not be hit as hard during these tough economic times, but that doesn’t mean that consumers will go out and buy just anything. “They’re still looking for the same kinds of products they were looking for before, but they’re a little bit more cautious about price,” says Perry Reynolds, vice-president, market-

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ing and trade development for the International Housewares Association, which hosts the International Home & Housewares Show March 22–24 in Chicago. “I think they are certainly more concerned about value and that design still plays a pretty important role.” This year, retail shelves will be filled with a variety of high-quality licensed housewares that fit into consumers’ budgets.

a Hamilton Beach microwave from Galanz

SloaneVision Unlimited will combine design with affordable price points as it licenses Doug Wilson, star of TLC’s Trading Spaces, Moving Up, and Real Estate Road Test, into housewares. First up for Wilson is a line of college dorm room products from licensee Garven LLC, including storage bins, desk sets, and more. The brand will then expand into furniture, rugs, and outdoor patio products. “[Wilson is] able to work within the manufacturer’s boundaries to bring the best design at the best price so a consumer not only feels they’re getting what they’re paying for but they’re getting more by nature of his

design aesthetics,” says Glenn Hendricks, vice-president of business development, licensing and merchandising, SloaneVision. With Kohl’s as the exclusive retail licensee for The Food Network, branded cookware, bakeware, kitchen gadgets, and more bring the insight and expertise of the network into people’s homes at low price points. “It’s more than just a Food Network logo,” says Adina Avery-Grossman, managing director of Brandgenuity, which represents the network. “It’s getting to the heart and soul and insight of all the experts that are behind the scenes at Food Network that make thousands of hours of TV possible, but also have lots of insight into the product. Value is really important, so, in terms of this line, the incredible value of beautiful product at reasonable prices under a brand you can trust is really going to be a winning combination.” The Style Network and its licensing agency ACI Licensing hopes to follow a similar formula. “It’s not about ultra-expensive, high-end product,” says David Palmer, senior vice-president, brand development and talent alliances, Comcast Entertainment Group, which owns The Style Network. “It’s about stuff that people can use every day. It’s very price-point sensitive.” But will lower price points mean lower levels of quality and innovation? Not so, according to those interviewed. From special features to unique packaging, innovation keeps the category exciting and fresh.

Global Icons hopes to keep the Hershey’s brand fresh by signing licensees that can produce creative products, such as the Hershey’s Kiss Fondue Maker from licensee Lifetime Brands, which has been in the marketplace for four years. “With the proprietary brands out there, when you’re trying to get a licensed brand squeezed in, it’s best to come up with something creative that can be sold out on an endcap or a display,” says Bill McClinton, senior vice-president of Global Icons. He says that as more people are staying home, the company is looking for “affordable price point items to get out there in the category that are fun and novel.” For Brand Sense Partners, each of the products under its Hamilton Beach property must pass an informal “innovative value test.” Austin Katz, senior director, Brand Sense, says that the product must provide the greatest level of innovation at its price point. “We’re seeing that the products that are moving [off shelves] are the ones that are providing a differentiated positioning and value to consumers,” he says. “It’s no longer about wants and nice-tohaves. It’s really about the needs and the value.” With all the talk about value, this means that some areas of innovation will take a backseat for now. One such area is the “green” movement. “Green continues to be an important initiative. Due to current economic conditions, however, priorities have shifted and consumers are spending more conservatively,” says Beth Roberts, senior brand manager, The Joester Loria Group. At the same time, some consumers are still willing to pay more for higher-end products. Culinary Institute of America (CIA)-licensed products can be found in the upscale housewares market, a place that, according to Carole Francesca, president of Broad Street Licensing Group, affords the brand less competition than it might experience in big-box or department stores. “The competition for brands at big boxes is huge,” she says. “It’s a bit of a revolving door for licensed brands.” Luckily for CIA, “there’s a certain group of people who, when they make the purchase, want it to last forever and be a real valuable purchase,” Francesca says. However, with the recent closing of housewares retailers such as Linens ’N Things, it is clear that the housewares category in general is feeling the impact of hard times. But some shuttered retailers will

The Kellogg’s Special K Cereal Dispenser from Zevro

get a second life through licensing. Hilco Consumer Capital and Gordon Brothers Brands acquired the intellectual property assets of Linens ’N Things, including the Linens ’N Things brand name, its bridal and gift registry businesses, all internet domains, and a number of proprietary brands. Similar to other investments of Hilco and Gordon Brothers, such as The Sharper Image and Bombay Brands, Linens ’N Things will relaunch under new stewardship this year as a global licensed brand. The strategy will include a combination of retail shop-in-shop, direct-to-retail licensing, and wholesale licensing by category and geography, as well as e-commerce, enabling Linens ’N Things to branch outside of a single retail chain and onto the shelves of leading retailers throughout the world. The e-commerce platform will feature both the well-known international brands as well as the Linens ’N Things private label assortment. A new website— www.thenewlnt.com—tells visitors the site will soon be restocked with a selection of quality products at affordable prices. With the home as the place to be among consumers, it only makes sense that they would want to make their homes comfortable and enjoyable through housewares. Limited budgets mean that consumers want a well-made product that doesn’t cost a lot of money and comes from a trusted brand. And with so many brands out there, the licensed housewares category will continue delivering something for everyone.

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HOUSEWARES

by Laurie Hahn

With consumers staying at home more in order to save money during tough economic times, there is a need to make the home environment enjoyable. Licensed housewares manufacturers, keeping consumers’ tight budgets in mind, hope to offer products that will allow consumers to cook, entertain, and more in their homes at prices that won’t break the bank.

SLOANEVISION UNLIMITED

SloaneVision Unlimited will bring Doug Wilson into the licensed housewares space. Wilson is the host of TLC’s Moving Up and Real Estate Road Test and can also be seen on Trading Spaces. With licensee Garven LLC, a Wilson-licensed line of college dorm room prodDoug Wilson ucts will launch early next year. The line includes storage bins, desk sets, and more, all with a design twist. Wilson will also enter into furniture and furniture accessories, rugs, and outdoor patio products.

BRANDGENUITY

Kohl’s is the exclusive retail licensee for The Food Network. Products include cookware, bakeware, tabletop, storage, kitchen textiles, and more. Part of The Food Network line is co-branded with chef Bobby Flay. The Bobby Flay Food Network products capitalize on Flay’s outdoor grilling expertise through grilling products and accessories and tabletop and tableware that reflect his spicy, bold cooking style.

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ACI LICENSING

Comcast Entertainment Group appointed ACI Licensing to develop innovative and strategic licensing and merchandise programs for The Style Network. ACI will manage the brand licensing program for the network, including its popular series Clean House and Dress My Nest. The licensing program will target the 18–49-year-old woman and give everyday product a sense of design and style at affordable prices.

BROAD STREET LICENSING GROUP

Broad Street Licensing Group will continue representing The Culinary Institute of America (CIA) brand with licensees Robinson Home Products and Vita-Mix. Robinson Home Products is the licensee for the CIA Masters Collection of cookware, bakeware, cutlery, and more. It was introduced three years ago in the upscale housewares marketplace. Vita-Mix produces a collection of blenders called the CIA Professional Series. The blenders (shown) feature rugged construction and the ability to perform tasks that most other blenders cannot.

THE LICENSING COMPANY

The Licensing Company signed licensee Quickie to produce Lysol and Airwick cleaning tools. Amcor’s Lysol-branded electric air purifiers (shown) are available in Sam’s Club stores. For Jelly Belly, Starbrite will produce candles with new flavors and sizes. Pearlessence will produce Jelly Bellybranded gels and air refresher gels. Arc International signed on to produce licensed glassware for the Malibu Rum and Kahlúa brands.

BRAND SENSE PARTNERS

Brand Sense Partners is in its fourth year representing Hamilton Beach. M.E. Heuck produces cookware (shown) and kitchen tools and gadgets. Galanz is the licensee for microwaves. Product will be available this month in Kmart and Wal-Mart stores. Starlite International is developing kitchen consumer electronics. Brand Sense is also the licensing agent for Iron Chef Cat Cora. She is the only female Iron Chef and the only classically trained female chef on The Food Network. Licensed product will focus more on culinary science than on Cora’s personality.

GLOBAL ICONS

Global Icons signed Twin Star International for electric fireplaces, stoves, tabletop heaters, and space heaters, as well as outdoor gas space heaters for the Duraflame brand. Product is expected to launch in 2010. Hanna’s Candle Company produces Cold Stone Creamery-licensed candles, passive reed diffusers, plastic air fresheners, electric plug-ins, and home fragrance sprays.

BRAND CENTRAL

Brand Central’s Kellogg’s brand has a full line of housewares including a collection of vintage tabletop ceramics and glassware from licensee Zrike. Zrike will expand the Kellogg’s collection to include melamine and paper goods. Zevro is launching a 2009 line of Kellogg’s-branded cereal dispensers and food storage solutions that keep cereal and snacks fresh. The line includes Vacuum Saver canisters, food storage containers, on-the-go snack containers, and chillable containers featuring a variety of Kellogg’s brands and characters. Zevro is also developing a Special K cereal dispenser that includes a portion-control measuring cup (shown). Brand Castle’s line of Kellogg’s food activity kits will expand this year to include silicone molds, cutters, and tools for Kellogg’s Rice Krispies.

THE JOESTER LORIA GROUP

This year, licensee Candlelite will introduce new spring scents in its line of Entenmann’s-branded candles (shown). New jar sizes will also be introduced. The Joester Loria Group is finalizing a deal for Pepsi kitchen textiles, including oven mitts and placemats, that utilize Pepsi’s art archives. For the Planet Green network, Joester Loria is looking at housewares and tabletop in the “green” category.

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TRANSFORMATION IS ONLY ONE PURCHASE AWAY

by Paul Narula one are the days when Halloween meant a parade of children dressed up as monsters, ghosts, witches, and a host of other spooky Halloween standards. Oh, the ghosts and goblins are still there, but are now interspersed with a wide variety of licensed characters that range from action heroes to cartoon characters. Licensed costumes have become an integral part of the Halloween business and have grown in popularity as more and more brands capture the hearts of kids and adults everywhere. “Halloween gives children, teens, and adults the opportunity to use their creative imagination and dress up as whatever they want to be,” says Kelly Gilmore, senior vice-president, global toys and themed entertainment at Warner Bros. Consumer Products. More and more, people want to be the characters they see on television, in the movies, and in popular entertainment. Not every brand can be easily translated into a costume line. There are a number of important factors that must be present for a brand to make the jump. “It has to be a logical crossover,” says James Werme, president of Morbid Industries. “Do the characters have a certain look? Do their faces translate into a mask or their outfit into a costume?” If a brand is focused on characters with a unique look or outfit that doesn’t look like normal apparel, making a costume that defines the wearer as that character is a viable option. It is much harder to translate a character that simply wears a business suit

CHARACTER TO COSTUME

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or T-shirt and jeans. Even if a for Marvel. Some comcharacter has a distinctive look, panies actually take the consumer has to want to be advantage of that to that character or identify with increase a costume’s that character at some level. appeal—Disguise’s Bakugan Whether the costume reprecostumes incorporate pockets sents a hero, villain, or for Bakugan toys so that children can comic character, there has combine the brand’s toy line with the to be an excitement associcostume line. Licensed costumes for ated with becoming that children tend to be aspirational. character for a night. Some They prefer to dress up as heroes companies have also had sucand positive characters. For cess with non-character-based teenagers and adults, however, brands by leveraging the licenses can be more edgy or brand’s iconic imagery. humor-oriented. Villains, sexy Rasta Imposta has made succharacters, and humorous or silly cessful lines featuring the Gumby from Rasta Imposta characters can all be a part of the Tootsie Roll and M&Ms brands. “If you’re adult licensed costume lines. In addition, creative with a brand and think outside the couples costumes can be extremely popular, box, it will work,” says Gary Schneider, especially when Halloween falls on a weekgeneral manager, marketing and licensing at end, as it does this year. Rasta Imposta. In addition, the brand must have a strong enough following from the A LITTLE BIT DIFFERENT Halloween-based licensing can have beginning so a retailer can justify devoting limited shelf space during the Halloween some significant differences from standard licensing deals. As with most types of licensretail season to the costumes. Children are the dominant audience for ing, the core concerns are the same. “The licensed costumes, but adults are a significant key is developing items that resonate with part of the market. Younger consumers are fans and are symbols of the property,” says license-driven and seek out the opportunity to Veronica Hart, director, licensing at CBS act out their favorite characters just about any Consumer Products. However, the scope of time of year, so the opportunity to do so to a Halloween is different. While many brands greater extent on Halloween is especially have a shelf life based on the release of the appealing. “Costumes are the best consumer primary product, Halloween is a once-a-year product to allow the child to emulate their event with a very limited time for Halloween favorite character,” says Paul Gitter, presi- products to stay on the shelves. This is both dent of consumer products, North America, an advantage and a disadvantage. While it

means that there is less time for retailers incorporate their brands into conand manufacturers to do their busisumers’ memories. “Most kids ness, it does mean that the scope remember what they dressed up as of licenses available for last year, and the year before,” says Halloween is greatly extended. Christina Miller, vice-presiBlockbuster movie properties dent of consumer prodmay not have normal ucts at Cartoon Network. product on the shelf a few “You get to be a part of months after the initial their memories. You release, but a Halloween costume become a part of a child’s based on the movie could still do great life.” In addition, for the adult marbusiness. Retailers often stock a ket, Halloween products provide an wider range of brands for opportunity for licensed product to Halloween than they normalreach an audience that might not ly do, hoping to have somenormally have a reason to make Hannah Montana from Disguise thing for everyone. “In purchases based on a license. toys, you’ve only got a few big licenses at a Most adults won’t be buying toys based on time,” says Howard Beige, executive vice- the latest action movie, regardless of whether president of Rubie’s. “In Halloween, a retail- or not they enjoyed the film. But they might er may only buy three to five licenses in buy a licensed costume for Halloween of one depth, but could have products from 30–40 of the major characters. “It extends our licenses total for the season.” brands in a fun and unique way,” says Lora Licensed Halloween costumes provide Cohn, vice-president, U.S. licensing at Fox significant benefits both to licensors and Licensing & Merchandising. licensees. For licensees, partnering with a strong and popular brand provides credibility SHOWING OFF This month, in Las Vegas, TransWorld for their product line that would otherwise be difficult to establish. It can also provide Exhibit held the 25th Halloween, Costume & access to a retailer that may not have stocked Party Show. This international show is one of the licensee’s product if the license hadn’t the largest trade events devoted to the been popular with the retailer’s audience. It Halloween industry and is attended by many also gives them the advantage of having a retailers, manufacturers, and licensors. For unique product on the market in a category many companies, this show and others like it where generic products are hard to make serve as a pivotal time period for their busistand out. For licensors, Halloween products ness. These shows are where many retailers provide not only another chance to reach out get a first look at new products and place to their consumers and fans, but a way to their seasonal orders. With licensing as an

important part of Halloween, the show provides an excellent place for retailers to get a look at which brands may be the most popular in the upcoming season. It gives licensees the chance to showcase their partnerships in a setting that provides maximum exposure for the licensor and the licensee. “Retailers don’t always know what’s coming up in licensing, and our booth helps put the licenses in their face,” says Steve Stanley, executive vicepresident, Halloween and seasonal, Jakks Pacific (which recently acquired costume manufacturer Disguise). A steady supply of popular movie and entertainment properties has kept Halloween licensing strong this year. Rubie’s will be working with CBS Consumer Products for a line of Star Trek costumes from both the upcoming movie and classic Star Trek looks. The company will also be working with Warner Bros. for a line based on the upcoming Watchmen movie. Disguise has a number of movie and entertainment properties lined up, including X-Men Origins: Wolverine, G.I. JOE, Transformers, and more. Rasta Imposta will be pushing retro properties with new looks, such as Strawberry Shortcake, as well as the upcoming Land of the Lost film. Morbid Industries will be targeting a harder-edged consumer with lines based on the horror film The Strangers and horror-rock band Lordi. Halloween may only be one day a year, but it’s a day when consumers can choose to be anything they want. If they happen to want to be a licensed character, then chances are their transformation is only one purchase away.

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HALLOWEEN by Paul Narula

Spooky, sultry, or just for fun—licenses are out in force on Halloween night, for both kids and adults. Here are a few of the upcoming licensed costumes that will be ready for this Halloween.

CBS CONSUMER PRODUCTS

MARVEL

Marvel has licensed Disguise to produce a range of costumes based on the X-Men character Wolverine to accompany the upcoming release of X-Men Origins: Wolverine. Disguise will design costumes based on the classic Wolverine costume for children and toddlers. The costumes will feature fake musculature, claws, and Wolverine’s mask.

Rubie’s will design a new line of Star Trek costumes for teens and adults. Costumes will be based on the upcoming Star Trek movie, due for release in May. Rubie’s will also be producing a line of costumes based on the classic Star Trek look from older television series and movies.

CARTOON NETWORK

Cartoon Network has signed Disguise as the costume licensee for the Bakugan brand. The Dan costume, shown here, will feature pockets designed to hold Bakugan balls so that kids can keep their Bakugan toys on them while trick or treating to add to the costume’s design or for play.

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WARNER BROS.

Warner Bros. Consumer Products (WBCP) has named Rubie’s as the licensee for the upcoming film Watchmen. Costumes will come in teen and adult sizes, in standard and deluxe editions with accessories for each character. The costumes will include Rorschach, Silk Spectre (shown), Dr. Manhattan, Nite Owl, and Ozymandias.

MORBID INDUSTRIES

Morbid will bring a wide variety of horror licenses to the Halloween market this year. They will be producing costumes and accessories based on European horror-rock band Lordi (shown). In addition, Morbid will be producing costumes based on the horror film The Strangers, starring Liv Tyler. The company will also release costumes based on the style of the punk band The Mistfits.

HASBRO

Hasbro has partnered with Disguise for a full line of costumes based on the upcoming action movie G.I. JOE: The Rise of Cobra. Costumes for children include Duke, Snake Eyes (shown), and Storm Shadow. The Snake Eyes and Storm Shadow costumes come in a basic edition or a deluxe edition that features accessories such as a ninja sword. Disguise will also be producing G.I. JOE costumes for adults.

DISNEY

Disguise will be working with the Hannah Montana brand to create new costumes for girls and tweens. The Hannah Montana Movie Costume is based on Hannahâ&#x20AC;&#x2122;s look in the upcoming Hannah Montana: The Movie. Other costumes in the line will be based on Hannahâ&#x20AC;&#x2122;s appearance in the television series and other media. Disguise will also be working with the Disney Princess license.

UNIVERSAL

Rasta Imposta will be making costumes for adults and children based on the reptilian Sleestaks from the upcoming film Land of the Lost, starring Will Ferrell and coming out this June. Each costume features a full mask that covers the wearers head and looks like the villainous creatures from the movie.

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The 21st Century Publisher ne of the greatest pleasures of working in licensing is seeing a property come out of left field and set the industry ablaze. Sometimes it’s a television property, sometimes it’s a trademarked brand, and sometimes it is an internet sensation. In the past six months, easily one of the biggest things to hit the licensing world emerged from the printed page. The Twilight phenomenon gathered even more momentum last November as the first movie of the franchise was released to crowds of ravenous teen girls and their mothers. While it may seem that Twilight appeared from nowhere, as is the case with many literary properties, it had adequate time to incubate on the printed page. The first novel in the Twilight trilogy was released in 2005. “In this case, you had a book that caught fire and just kept growing and growing and spreading amongst its demographic,” says Russell Binder, president of Striker Entertainment, which manages the Twilight licensing program with partner Most Management. This property had the added benefit that its core audience is native to the digital world. Their lives exist as much in the digital realm as they do in the physical world. Not only did this help the books and the movie gain momentum like a snowball, but it also allowed Striker and Most Management to get feedback while establishing the licensing program. “No one anticipated how impressive of a

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property and a program Twilight would turn into, but it has turned into one of those properties where we’re taking multiple calls a day from interested parties,” says Binder. “We are trying to accommodate the demand while trying to maintain the integrity of the program.” Most Management’s president, Marc Mostman adds, “The franchise has such a vocal community and we looked to ensure that we serviced that fan base first because they are the biggest proponents of the franchise. They have to feel that the licensed products are true to the brand.” The digital realm is playing an increasing role in the world of book publishing. Sometimes it is in the area of gathering steam around a property by immersing fans of a story, as is the case with Twilight. Also, new innovations have changed the way people read books. Amazon.com just released the second generation of its Kindle device. The Kindle is to books what the iPod is to records. It takes a classic medium and digitizes it in a small, lightweight carrier. According to Jeff Bezos, Amazon’s CEO, the Kindle 2 can hold 1,500 books on it at one time. And for those moments when you finish reading a book mid-commute and need something else to read, it can download a new title wirelessly in 60 seconds. The titles are also cheaper than even paperbacks at $9.99 a pop. Additional functions include changing font size, displaying a highlighted word’s definition, and reading aloud. There are currently more that 240,000 titles available

by Chris Adams

The biggest story right now in terms of bookrelated licensing is Twilight. The property’s licensing program is managed by Striker Entertainment and Most Management.

for the unit, with additional titles being added regularly. The success of the Kindle and other ebook formats has tempted long-time holdouts for the format to reconsider. For instance, bestselling novelist John Grisham’s titles are currently unavailable in digital form. However, according to an article in the February 11, 2009, Wall Street Journal, Grisham is close to wrapping up a deal that will make his books available in all digital formats. “We are very conscious of e-books,” says Suzanne Murphy, vice-president,

group publisher, trade publishing at Scholastic. “There will always be the printed book, but e-books are an opportunity to expand our business and reach new readers.”

The Numbers

There have been some seemingly contradictory numbers coming out of the book industry as of late. According to the “Reading on the Rise” study that was recently released by the National Endowment for the Arts (NEA), the number of adults who said they had read a novel, short story, poem, or play in the past 12 months had gone up for the first time since the NEA started the survey in 1982. On the other hand, a report from the Association of American Publishers on December 2008 sales shows that overall book sales were down 2.4 percent for the year. While it may seem like a disconnect, looking at consumption patterns in the weak economy sense can be made of the disparate numbers. As people are looking to cut back on superfluous expenses, they are turning to entertainment platforms that offer a lot of bang for their buck—like books. However, that doesn’t mean they have to go out and buy a new book. Libraries and used book stores offer lower-cost alternatives than going out to buy new books. Add to that the amount of books that are passed from one friend to

another and the gap between the two numbers is easily closed.

The Role of Books

What was once a one-stop shop for a completely immersive experience has turned to one spoke in an overall brand immersion experience. While people are certainly still reading (as the NEA numbers indicate), a book is sometimes not the only touchstone for a property (as evidenced by the success of Twilight). The key to success in the book publishing business today, which has certainly taken its fair share of knocks in the troubled economy, is building multiplatform experiences. Scholastic has done a good job of doing this with The 39 Clues by integrating the books with trading cards and the internet. Callaway Arts & Entertainment has plans to expand into a multiplatform company to build on the relationship between its target audience and content. For The English Roses series, by Madonna, it plans on having a one-hour television special that will draw viewers online to experience webisodes spawned from the book content. While the business that used to be given to the traditional ink-on-paper book business is diffusing in many different directions, there will always be a need for the printed page in the overall publishing and licensing marketplace. As Callaway’s CEO, John Lee, says of The English Roses property, “The book side is an important source of credibility for content.”

The Latest Word

STRIKER ENTERTAINMENT

IN CONJUNCTION WITH

MOST MANAGEMENT: The second movie of the Twilight franchise, New Moon, is scheduled to debut this November. In addition, the DVD of the first Twilight is due on March 21. Expect licensed product, including collector fashion dolls by Mattel (shown) in stores around both launches.

WILEY PUBLISHING: Wiley continues to expand its licensing program revolving around the popular For Dummies series of books. New licensed products include the Bath, Sink, & Tile Refinishing Kit for Dummies, by Revive Products, and the Drip Irrigation Kit for Dummies, by Orbit Irrigation.

SCHOLASTIC: Books involved with the Inkheart trilogy continue to do well. Scholastic not only publishes the original three books in the trilogy, by Cornelia Funke, but also tie-in books for the film that debuted in January.

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SEEKING NEW OPPORTUNITIES JULIA LUND

THINK ABOUT IT DESIGN STUDIO

JULIA@THINKABOUTITDESIGNSTUDIO.COM

(347) 738–6862

PREVIOUS POSITION: creative director of the clock division

of M.Z. Berger and Company.

EXPLAIN YOUR NEW BUSINESS VENTURE: I now operate my own design business, Think About It Design Studio (www.thinkaboutitdesignstudio.com). I work with various clients on the following types of projects: product design, graphic design, design consulting, package design/layout, point of purchase design/layout, instructional design, digital photography retouching, branding and identity, video and audio editing, and more. SEEKING: My goal is to grow my business, reaching a broad

range of clients by offering services for multiple facets of design. I have worked directly with licensors, retailers, and suppliers to design and develop consumer goods in the home, kids’, tween, accessories, toys, and electronics categories. If you are in need of these services, please contact me using the information provided above. PREVIOUS RESPONSIBILITIES: As creative director, I ran all cre-

ative initiatives and product development for licensed and nonlicensed clock product and packaging from concept to completion. I managed creative staff in the New York and Hong Kong locations. I also worked on location in Asia several times yearly with designers and suppliers. My efforts directly contributed to an expansion of all clock lines and retail placement. PREVIOUS EXPERIENCE: I was an associate product manager

and graphic designer at M.Z. Berger. In addition, I was a freelance product designer for Toy Island.

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JUSTIN WATSON LAUNCHES BAM BRICK & MORTAR BRANDS

Justin Watson, former marketing director at Mighty Fine, announces his new company BAM Brick & Mortar Brands. Watson’s experience in the industry includes launching Mighty Fine’s premiere knit-top collection, Trash & Luxury, as well as opening junior sportswear collection French Kitty’s first concept store in Thailand. Headquartered in Melbourne, Australia, BAM reaches into Asia, Europe, and the Americas. A fully hands-on company, BAM oversees creative direction, marketing, and strategy development, including the communication and licensing aspects of dealing with retailers and manufacturers, international or otherwise. With its launch, BAM begins its work with Mighty Fine labels French Kitty and Trash & Luxury worldwide.

BANDAI AMERICA, INC.

MARK SCHAFFNER, EXECUTIVE VICE-PRESIDENT OF TOYS

Bandai America, Inc., appointed Mark Schaffner to executive vice-president of toys. Schaffner will oversee the company’s sales and marketing departments, as well as develop new alliances and strategies. Previously, Schaffner managed global expansion, financial performance, and new product development for Philips Electronics as the vice-president of global product development & marketing— accessory division.

COLLEGIATE LICENSING COMPANY

ELIZABETH KENNEDY, VICE-PRESIDENT OF CORPORATE RESPONSIBILITY

Collegiate Licensing Company (CLC), an IMG company, hired Elizabeth Kennedy as vice-president of corporate responsibility. As she works to expand CLC’s service offerings in corporate social responsibility, Kennedy also will work closely with the Fair Labor Association (FLA) and the Worker Rights Consortium (WRC), the two primary external labor code compliance and monitoring associations. Previously, Kennedy served as director of trademark licensing at the University of Southern California.

by Christopher Byrne

POSTED

BELOW IS A SAMPLING OF WHAT

A MERICAN

SOURCE: VARIOUS • 9.9 million viewers watched the first show of this season. • 33.4 million viewers watched the season seven finale. • Carrie Underwood was the first winner to receive American Music, Billboard, and Grammy Awards. • Jordin Sparks won season six with more than 74 million votes. • Coca-Cola has major sponsorship, putting cups on the set and creating a Coca-Cola Red Room—a green room for contestants. • AT&T Mobility’s efforts to promote text voting made it the preferred carrier among teens, according to Jenkins research. • The show is broadcast in more than 100 countries, mostly on tape delay, except in Australia where it’s broadcast direct by satellite. • Disney opened a live American Idol attraction in February 2008 at the Disney World Park. • iTunes joined as a major sponsor of season eight. Performances are available for download the next day. Studio versions of the songs are available two days later. • Season eight viewership is down 8 percent thus far, but Fox is still projected to win the season with viewers 18–49, according to Nielsen.

AMERICAN IDOL—THE JUGGERNAUT

SOURCE: ITUNES 1. “Right Round,” Flo Rida 2. “Poker Face,” Lady GaGa 3. “Dead and Gone,” T.I. 4. “Kiss Me Thru the Phone,” Soulja Boy Tell ’Em 5. “Gives You Hell,” The All-American Rejects 6. Slumdog Millionaire Soundtrack, Jai Ho, A.R. Rahman, et al 7. “Crack a Bottle,” Eminem, Dr. Dre, and 50 Cent 8. “My Life Would Suck Without You,” Kelly Clarkson 9. “Heartless,” Kanye West 10. “Just Dance,” Lady GaGa and Colby O’Donis

TOP SONG DOWNLOADS—FEBRUARY 25

CONSUMERS ARE INTERESTED IN THIS MONTH .

SOURCE: BARNES & NOBLE

TOP-SELLING BOOKS—FEBRUARY 25

1. Promises in Death, J.D. Rob 2. Act Like a Lady, Think Like a Man, Steve Harvey 3. Breaking Dawn, Stephenie Meyer 4. Night & Day, Robert B. Parker 5. Eclipse, Stephenie Meyer 6. White Witch, Black Curse, Kim Harrison 7. Handle with Care: A Novel, Jodi Picoult 8. One Day at a Time, Danielle Steel 9. First Comes Marriage, Mary Balogh 10. The Associate, John Grisham

SOURCE: NIELSEN & OTHER NEWS SOURCES • Ratings up 9 percent versus 2007 to 16.9 rating, a 26 share • ABC won the night, followed by Fox, CBS, and NBC • Barbara Walters’ special had a 10.6 rating with a 16 share, beating NASCAR on Fox and 60 Minutes on CBS, which each scored 5.8 ratings. • Ratings jumped to 19.6 in the 9 P.M. hour and trailed off to 18.5 in the 10 P.M. slot.

OSCAR RATINGS

SOURCE: AMAZON 1. Resident Evil 5 Elite Red Console Xbox 360 (pre-order) 2. NHL 2K9, PlayStation 3 3. NHL 2K9, Xbox 360 4. Star Wars: The Force Unleashed, PlayStation 2 5. Saints Row 2 Collector’s Edition, PlayStation 3 6. Saints Row 2 Collector’s Edition, Xbox 360 7. Nintendo DSi Matte Blue (pre-order) 8. Madden NFL ’09, PlayStation 2 9. Wii Fit, Nintendo Wii 10. NBA 2K9, PlayStation 3