Profitability of IP

There is a great monetary value in the strategy. The reciprocal spillover effect between the extension product and the parent product indicates that the success of an extension is not only important for the sales of that extension itself but it may also significantly impact the sales of the original product. The Hunger Games Trilogy print, for instance, saw a 55% increase in sales at the beginning of 2012 when the first Hunger Games film came out. Similarly, book sales of the novel series A Song of Ice and Fire only took off to spectacular heights with the success of the corresponding TV series Game of Thrones. The reciprocal spillover effect implies that the extension not only will create awareness through media coverage and word-of-mouth but will also enhance the quality associations, enticing viewers to consider the original product, hence, the overall interest will grow bigger and greater. That’s why intellectual property can keep making profits.