Entertainment-Based Characters Lead L&M Revenues

NEW YORK, June 9: As the
Licensing Show kicks off in New York tomorrow, the International Licensing
Industry Merchandisers’ Association (LIMA) has revealed that of the $5.98
billion in royalty fees paid for licensed products in North America in 2007,
$2.7 billion were for TV, movie and other entertainment-based characters.

Character-based licensing
was the only segment to show year-on-year gains from 2006, LIMA reveals. Art
licensing revenues, for example, were down 3.8 percent to $175 million, and
fashion-based royalties fell 2.4 percent to $810 million. The second-biggest
segment after characters was trademarks/brands, with licensing revenues of
$1.06 billion in 2007.

“Certainly the current
soft economic conditions in North America have contributed to the relatively
flat performance in 2007, following three consecutive years of growth,” stated
Charles Riotto, the president of LIMA. “Licensing is a proven way for businesses
to create greater brand awareness and add incremental revenue to their bottom
line—that hasn’t changed, nor has consumers brand loyalty or love of
characters and brands. In light of what is taking place in the financial and
retail communities, I feel our industry performance was very positive and bodes
very well for the business of licensing when economic times improve.”

—By Mansha Daswani