Brand Matters

October 2008

Moms are using almost 50 percent of discretionary spending for their children on entertainment, from movies and video games, to toys and consumer electronics, according to recent research by the NPD Group. It’s as lucrative a market as it’s ever been, but in these challenging economic times, delivering a brand that can cut through the clutter has never been more important.

Judging by the global success this year of feature films like The Dark Knight, Horton Hears a Who! and Indiana Jones and the Kingdom of the Crystal Skull, having a well-known, recognizable brand certainly helps in this crowded environment. “The retailers are taking less risks with the economy as it is, so they feel happier and more comfortable with the [properties] they know and understand,” says Jackie Ferguson, the U.K. licensing and merchandising manager at BKN New Media. This is something that BKN is counting on as it rolls out one of its marquee properties, Zorro: Generation Z. “Every one has heard of Zorro,” says Ferguson. “Zorro comes with a tremendous heritage of 80 years, and two blockbuster movies, which of course in the U.K. helps us because one of the stars is Catherine Zeta-Jones. And we’ve got a Zorro classical theatrical production in the West End at the moment, which is doing very well.”

The animated series, which puts a new spin on the masked crusader, has started airing in Spain on Telecinco and Clan TV, where it is generating solid audience shares. Targeting kids aged 5 to 11, BKN’s Zorro has a distinctly modern feel, Ferguson explains. “Zorro has left his horse behind. He’s got a motorbike. He’s got his Zpod and his Zphone. So he has all his up-to-date gadgets, which makes him easier for today’s children to relate to.”

Toys are a key category for Zorro: Generation Z. Gulliver Toys in Brazil, where the show airs on Record TV, is already on board, with product due to roll out by spring 2009. Other broadcast partners for Zorro include Mediaset in Italy, TV Azteca in Mexico, CTC in Russia, South Africa’s SABC, Telemundo in the U.S. and FOXTEL in Australia.

Another established property that BKN has high hopes for is Speed Racer: The Next Generation, for which the company is handling European licensing rights. The show launched on Nicktoons in the U.S. earlier this year and BKN is optimistic for the European broadcast and licensing rollout in the next 18 months, Ferguson states.

FAMILIAR FACES

HIT Entertainment, meanwhile, has its own updated classics to showcase, including Angelina Ballerina, Thomas & Friends and Bob the Builder. “Classic is a buzz word we’ve been hearing across the industry lately,” says Peter Byrne, the executive VP of worldwide consumer products at HIT. “As consumers, broadcasters, retailers and licensors are focusing on tried-and-true brands, many entertainment rights owners are putting resources into refreshing their evergreen properties.”

Angelina Ballerina: The Next Steps is among HIT’s new properties, bringing its title character into a new school for the performing arts. “As Angelina pursues her dream of becoming a prima ballerina, she meets new friends and teachers who expose her to new forms of music and dance,” Byrne notes. The CGI series will be on air in the U.S. in 2009 and the U.K. in 2010.

Byrne adds: “Fireman Sam is also undergoing a CGI refresh, as [are] Thomas & Friends and Bob the Builder. Creatively, CGI allows great fluidity of movement and a deeper interaction and emotional engagement with the characters. From a merchandising standpoint, we are then able to develop new style guides and exciting, fresh products for these classic, beloved brands, including expanded opportunities in the Talking Toys range.”

Bob the Builder will be a key focus at Brand Licensing, given its upcoming tenth anniversary in 2009. “HIT has big plans for our favorite builder, including a new style guide and a full licensing program for Bob in 2009,” says Byrne.

In addition, HIT is launching a new style guide for the successful publishing property Rainbow Magic, with a DVD special due for release in 2009, kicking off a full licensing and merchandising program.

Thomas & Friends is also a priority this year, with the release of a new DVD movie, Thomas & Friends: The Great Discovery. “The DVD movie is being supported by a massive marketing effort [in the U.K.], including weekend theatrical screenings with partner Vue Cinemas and a ‘blue carpet’ premiere in Leicester Square,” Byrne notes. “Tie-in products from U.K. publishing partner Egmont and the launch of the TrackMaster products from TOMY in Europe—including a Great Discovery playset— help make this the biggest Thomas & Friends consumer event of the year. We plan to replicate this integrated program for The Great Discovery as it rolls out throughout the rest of the world in 2009.”

SOMETHING OLD, SOMETHING NEW

Entertainment Rights, too, is putting a new spin on a classic with Postman Pat: Special Delivery Service, which launched on BBC Two this fall. The CGI show sees the veteran mailman in a newly promoted position, with “an expanded diverse cast, a fleet of new vehicles, new locations, including the new busy market town of Pencaster and exciting new story lines,” says Andrew Kerr, the executive director of consumer products and marketing for international at Entertainment Rights. Character Options is developing a toy line for the show. “SDS is an exciting evolution of the Postman Pat brand, one that will drive its success on-screen and on-shelf for years to come,” Kerr notes. “I can’t wait to see the exciting range of Character Options SDS toys arrive on-shelf in the first quarter of 2009, along with a host of other key partner products, including soft goods, party-wear and stationary ranges.”

Building further upon Postman Pat’s heritage, Entertainment Rights is spotlighting the spin-off Guess with Jess, which Kerr describes as a “smart, funny preschool series with catchy music and rich visuals.” Entertainment Rights has already lined up several licensees for the show, following Jess the Cat and his farmyard friends as they explore the world around them. Fisher-Price and Egmont are due to deliver merchandise based on Guess with Jess, which launches on CBeebies late next year. “We’ll be busy rounding out the range of key U.K. and international partners” at Brand Licensing, Kerr says.

The ER portfolio is also home to Casper, who is getting a new series with Casper’s Scare School, just shy of his 60th birthday.

“People in the licensing trade are cautious at the moment, and understandably so,” Kerr continues. “Every challenge brings with it an opportunity, and in ER’s case, our extensive portfolio of well-loved content is ideally positioned to do well in the current environment. Familiar and comforting [brands] like Postman Pat, Where’s Waldo?, Lassie and Casper (to name only a few) tend to become destinations for consumers during times of change and uncertainty, and I have no doubt that this will be the case through the balance of the year and into 2009.”

Chorion is home to a stable of long-running, established brands that will be on offer at Brand Licensing, including The Mr. Men Show, based on the picture books by Roger Hargreaves. “From apparel, night- and outerwear, confectionary to toiletries, we will see a lot of Mr. Men and Little Misses at retail,” says Bettina Koeckler, the VP of licensing sales for the U.K. and Europe, the Middle East and Africa at Chorion. “With the licensing range leading in, the brand new toy line by Fisher-Price will follow accompanied by monthly DVD releases from Sony Pictures Home Entertainment starting in October.”

Also a focus for Brand Licensing will be introducing the licensing community to Olivia, Koeckler says. Chorion is currently in production on a CGI series based on the Ian Falconer books. “We will be looking for toys and games and accessory partners for Olivia,” she notes.

MARKING NEW MILESTONES

Noddy, meanwhile, is gearing up for his 60th birthday next year, with plans for what Koeckler calls an “extensive” consumer and retail marketing campaign off the back of a new 52-episode series. There will also be a new master toy line next spring, plus live events.

Another brand that is celebrating a landmark anniversary in 2009 is Teenage Mutant Ninja Turtles, which is represented by 4Kids Entertainment. Sandra Vauthier–Cellier, the co-managing director of 4Kids Entertainment International, explains that the 25th birthday plans for the heroic, pizza-loving underground dwellers include a “retro vintage fashion line” for men aged 17 to 25. For the core kids demo, meanwhile, there will be a new toy and video-game range and several live events.

While Teenage Mutant Ninja Turtles is certainly a priority for 4Kids this season, the company’s top priority for Brand Licensing is building further awareness of the new creation Dinosaur King, which is already delivering strong ratings in the U.K., France and Germany, Vauthier–Cellier notes. There is “a very good buzz around the property right now. We are building very quickly the licensing program across Europe.”

Playmates is the worldwide manufacturer for action figures and leading toy distributors are being appointed locally, while Upper Deck is due to unveil a line of trading cards. There is also a Nintendo DS video game launching this fall. “We’ve secured some apparel manufacturers in some of the markets where the TV show has already started [airing],” Vauthier–Cellier continues. “Another good category we’ve secured is back-to-school stationary, [which] should hit the shelves in 2009.” Deals have also been clinched for confectionary, collectibles, magazines and activity books.

BKN, meanwhile, is continuing to generate awareness for its new show Dork Hunters from Outer Space, a comedic animation that appeals to the 5-to-11 set. The show has launched on GMTV in the U.K. and has been delivering the largest audience share in kids 4 to 9 in its time slot. Character Options is due to unveil its toy line based on the show this October in the U.K., supported by an “extensive TV campaign in the run-up to Christmas,” Ferguson states. The first title to be released in a series of DVDs will hit retail in February 2009. BKN will be pursuing other partners at Brand Licensing, following the series’ strong performance on SABC in South Africa and upcoming rollouts in Russia and Australia. “Audience shares averaging a phenomenal 39 percent for Dork Hunters have been seen recently on SABC, which does set this property apart and gives it an edge over many of its competitors. [It] gives us a great platform from which to launch the licensing program and break into the crowded, very competitive marketplace.”

At Entertainment Rights, the continued success of Finley the Fire Engine on CBeebies is expected to translate into a strong launch for a range of toys from Matchbox in the spring. At Brand Licensing, “We’ll be continuing to draw attention to Finley the Fire Engine, an energetic and playful series, full of unique personalities that children can relate to and identify with,” Kerr says. “Set in Friendlyville, the show embraces children’s limitless fascination with vehicles as they enjoy the dazzling colors, spinning wheels, talking bumpers, winking windshields and moveable parts that Finley and his friends have to offer.”

Looking ahead, Entertainment Rights is also planning early talks with the licensing community on the new preschool offering Tinga Tinga Tales.

YOUNG ONES

Preschool remains one of the most vibrant sectors of the licensing community, as proven by BBC Worldwide’s latest hit, In the Night Garden. In just a year, the Ragdoll production has become the biggest licensed brand in the U.K. and has since sold to more than 20 countries, with more than 40 licensees signed up. For Brand Licensing, a priority for BBC Worldwide is building up a merchandising program around 3rd & Bird, a new CBeebies series from Josh Selig, the creator of The Wonder Pets! for Nick Jr. “It’s a photo-puppetry animation about a community of birds living in this beautiful tree and how they interact,” says Neil Ross Russell, the managing director of children’s at BBC Worldwide. Also in the preschool arena is Harry and Toto. “It’s done very, very well on CBeebies, and it offers fantastic licensing opportunities that we’re looking to talk to people about,” Ross Russell continues.

Toys are still big business for the tot sector, but retailers are finding that as children grow up, they are moving increasingly to video games. This is a trend that 4Kids capitalized on with Chaotic. Vauthier–Cellier notes that Chaotic’s success in the U.S. has been driven by the trading cards and the related online game. “Kids are spending less and less time in front of the TV and more in front of their computers,” she says. “All the new-media categories, the online games, the mobile phones, have become very, very important and strategic.”

“Children are early adopters,” agrees the BBC’s Ross Russell. “Since I started here I’ve bored everybody senseless with the tale of my three year old who is a long way short of being able to read, but is quite happy to spend two or three hours on CBeebies’ website playing the various games. A three year old, five, ten years ago would never have had the motor skills to operate a touch-pad mouse or an ordinary mouse. Three year olds today understand how these things work. That’s what we’ve got to get our heads around and that is what we are doing in partnership with our licensees to work out how we can produce products that really add value to this digital world.”

Rights owners are also looking to develop longer-term, deeper relationships with licensing partners. Chorion, for example, has launched Chorion Brand Partners, a new division whose first deal sees Paddington Bear-branded travel packs being distributed to kids on select British Airways flights. “With our new division in place we will be talking to various clients about promotional activities for all our brands,” says Koeckler. “Noddy’s anniversary especially will provide the opportunity for some major opportunities for tie-ins. With the difficult economic situation in many countries, licensing partners and retailers will look for long-term opportunities and increasing support from licensors. Uniqueness and creativity of characters and brands along with authenticity and content will become a lot more important.”