Consolidation is 'needed' in licensing market

Kidz Entertainment chairman believes the industry landscape will look much different in 12 months time.
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More acquisitions will come this year, but it should not be seen as a trend, more as a needed consolidation in the business.

This is the view of Morten Geschwendtner, chairman of Kidz Entertainment. Replying to the latest Have Your Say topic on, he said: "It will happen on the licensor side as well as on the agency side, so 12 months from now the licensing industry landscape will look much different.

"It is truly exciting times."

Another respondent - the president of a kids entertainment consulting and marketing agency - agreed there would be further acquisitions this year.

"With the absence of the machinery to create a break out hit in today's marketplace for medium size companies, the only way to develop revenue growth is via acquisitions," said Hamp Hampton.

"In addition, many small agencies, distribution companies and animation studios don't have the financial scale and other resources to compete any longer in a global marketplace. And without the financial backing, they can't hold onto the valuable ancillary rights for the properties they have created.

"Without scale, it is next to impossible to compete in today's marketplace."

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