VEGAS 2011: Licensing sales slip slightly in 2010

Royalty revenues for the year total $5.065 billion, according to LIMA.
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Despite consumer spending remaining soft in 2010, the annual Licensing Industry Survey by LIMA has shown royalties only dipped slightly for the year.

LIMA also says the positive retail results at the end of the year 'give cause for optimism and set the tone for 2011'.

The survey results were released at the opening session of Licensing International Expo 2011. The figures are derived from results of a survey of companies directly involved in the licensing business, examination of public financial documents and interviews with licensing industry executives, with the goal of providing reliable data to help licensing professionals identify trends and growth opportunities.

“The LIMA 2010 royalty revenues survey underscores our industry’s continuing strength and resilience against a backdrop of unsteady retail sales,” said Charles Riotto, president of LIMA.

"Despite a 1.9 percent decline last year, licensed products clearly hold an appeal for consumers.”

LIMA also revealed that anecdotal responses to the survey indicated a more positive business environment with many believing that 2010 was a transitional year as the country started to rebound from the recession.

Those answering the survey noted that in the second half of 2010, decision making and deal making began to increase, along with retail sales, licensing opportunities with new retailers and a broader array of channels with significant progress seen with mid-tier, department stores and specialty/big box retailers.

The survey showed that 47 per cent of licensing industry royalty sales are generated in the character segment, which includes characters from all portions of the entertainment business. Character licensing fell just one per cent in 2010.

Corporate Trademarks/Brands accounted for 16.7 per cent of the business, fashion took up 13.6 per cent and sports stood at 12.7 per cent.

The music sector is the only category that showed an increase, rising to 4.5 per cent, a result of strong sales of music merchandising tied to concerts and events as well as revenue from online and mobile devices.

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