Opinion | Toon-age day stream: How Disney+ is about to change toy licensing for good

It almost seemed by design that Disney’s subscription based streaming platform, Disney+ launched just as the Coronavirus pandemic began to tighten its grip on the UK and force the world’s population inside and away from the entertainment venues of yesteryear. And in just a short space of time, its impact on the wider world around has begun to be recognised.

Kids Brands Insights’ Steve Reece takes a closer look at the Disney+ platform and the moves already being made that will overhaul the nature of toy licensing, indefinitely.

[divider style=”solid” top=”20″ bottom=”20″]

Netflix has vastly changed the world of what was once simply called ‘television’. The content proliferation process which has been ongoing for the last decade or more is accelerating, as lockdowns around the world have vastly increased viewing. In response Netflix is producing more and more entertainment content. But aside from the occasional freak occurrence like The Queens Gambit which saw Chess set sales soar, we haven’t seen that great an impact on toy merchandising.

Disney+ of course changes all of that, because whereas Netflix is full of content for adults with adult themes and is not focused purely on a family entertainment audience, Disney+ is all about family entertainment.

“Even coming out of lockdown, viewing is likely to remain high versus historical levels because human behaviour is habitual.”

Those who questioned whether this type of video on demand could drive merchandise sales soon got their question answered by the success of The Mandalorian. Logically though, if tens of millions of people subscribe to a service, then each piece of content must be averaging millions of views. When you compare that with cable/satellite TV which back in the old days were just about enough to drive some degree of licensed product sales, then it becomes clear that Disney+ heralds a bright new era for licensed toys.

The other effect that has been underestimated is the degree of immersion/obsession which an entertainment franchise creates. There are brands which lots of people like, and there are brands which some people become deeply obsessed with. The depth of content on offer via VOD platforms, the drip feed of the next instalment/series and the binge-watching habits of locked down people lead to a deeper immersion and bond with content brands, which in turn should drive toy sales.

Even coming out of lockdown, viewing is likely to remain high versus historical levels because human behaviour is habitual and the habits of binge-watching huge amounts of content has become deeply ingrained.

The other effect of VOD platforms is to smooth out the long tail after the content first releases. For sure, major headline content releases will drive big initial viewing, but many people don’t buy in, either because they are still too busy watching other series or because they don’t believe the hype yet. This long tail offers a longer-term payback than the traditional blockbuster movie with two sales spikes around cinematic release, and secondary release to DVD or previously to less content abundant VOD platforms.

The other key factor here is scale. At the time of writing, Disney+ reportedly has more than 95m subscribers around the world. Disney forecast more than 200m within the next year or two, but the potential could be much higher, so the effect of this platform is only going to increase.

Every so often something comes along with marks a fundamental shift in the toy business, Disney+ heralds a new age of toy licensing, it’s that big a thing.

[divider style=”solid” top=”20″ bottom=”20″]

Steve Reece is the founder of the toy expert consultancy, Kids Brand Insight, leaders in supplying services to the toys and kids entertainment industries.

JAKKS Pacific backs its Disney slate to lift toy sales following Q4 and full year 2020 declines

JAKKS Pacific is heavily backing its Disney partnership and the boost in toy sales it expects to see over the course of the year, driven in part by the “extraordinary success of Disney+” and its new model of delivering content in the midst of the pandemic.

The toy firm highlighted its expectations to see a ‘return to more normal patterns of shopping,’ as it sets its sights on improved quarterly and full year results for the year ahead.

This week, JAKKS Pacific reported a 16 per cent drop in its fourth quarter 2020 net sales to $128.3 million, down from the $152.5 million the year prior. The decline, it says, was driven primarily by lower sales of Disney’s Frozen and Frozen II products, which were strong contributors to Q4 sales in 2019.

Net sales on the toys and consumer products segment were down 19 per cent globally, but were up 13 per cent with the exclusion of its Frozen merchandise.

Somewhat surprisingly, despite the restriction imposed by lockdowns across its major markets, fourth quarter net sales of Disguise Halloween costumes increased 91 per cent.

According to JAKKS Pacific’s chairman and CEO, Stephen Berman, fourth quarter results exceeded expectations for sales, gross margin, operating income and adjusted EBITDA.

In a statement issued this week, he cited “strong sales increases in Disney Princess, Nintendo, Sonic the Hedgehog, and Disguise costumes.”

“Since JAKKS was founded over 26 years ago, we have focused on proven play patterns and working with license partners with highly recognisable brands, and we believe this focus served us well in 2020 as parents of kids spending so much more at home were looking for products they knew and brands they trust,” Berman continued.

“Our efforts during the quarter, as they were all year, were directed at managing costs, ending 2020 with clean inventory, and preserving cash. This discipline allowed us to post the highest full year gross margin rate since 2016, and the highest fourth quarter gross margin rate in ten years.”

Looking at the year ahead, and JAKKS Pacific remains optimistic that results will improve as the world begins to emerge from the pandemic. The firm is also heavily backing its partnership with Disney and a slate of licensed releases this year, including Disney’s Raya and the Last Dragon, and Encanto.

“In addition, we believe that the extraordinary success of Disney+ has given families all over the world year-round access to Disney content, which will help keep kids connected to the characters they love and to cherish the toys we make based on those characters,” said Berman.

“We expect 2021 to see a return of more normal patterns of shopping, gift-giving, and celebrating Halloween. We believe our continued emphasis on core products, margin improvement and cash preservation will lead to improved results for 2021.”

New York | Toy of the Year awards underscores big year for children’s licenses

Pokemon, Super Mario, Star Wars The Mandalorian, and PAW Patrol are just some of the leading children’s brands to have won big this weekend when the annual Toy of the Year awards hosted an all-virtual event to reveal its winners.

A tussle of the titans ensued as the awards – recognised as the ‘Oscars of the toy industry’ – watched global toy makers LEGO and Mattel emerge with no fewer than four award wins each, with the likes of LEGO’s Super Mario play-sets and Mattel’s The Mandalorian The Child Plush thrust into the spotlight.

License of the Year went to Disney for The Mandalorian, while the Pokemon Trading Card Game took home Game of the Year. Pre-school Toy of the Year was swept up by Spin Master and its PAW Patrol franchise, while Playmibile drove home at 88mph with the Vehicle of the Year award for its Back to the Future DeLorean play-set.

“It’s an exhilarating feeling to be recognized for our relentless drive to push the boundaries of play,” said Anton Rabie, Spin Master’s chairman and co-chief executive officer of the firm’s win in the Pre-school Toy of the Year category.

“Every year our incredibly talented team, in collaboration with our amazing community of external inventors, raises the bar on innovation with the purpose of developing magical moments and experiences for kids and families around the world. Together, we’re committed to reimagining where imagination can take us.”

Meanwhile, in a surprise announcement, two winners were chosen for the People’s Choice Award; Story Time Chess (Story Time Chess), a classic game re-imagined for the youngest of players, and The Original Spawn Action Figure and Comic Remastered (McFarlane Toys), a fan-favourite that has its roots in Kickstarter success.

Toy of the Year Awards were handed out in 16 categories. The winners are:

Action Figure of the Year: Fisher-Price #ThankYouHeroes Line (Mattel)

Collectible of the Year: LEGO Super Mario Character Packs (LEGO)

Construction Toy of the Year: LEGO Star Wars The Razor Crest (LEGO)

Creative Toy of the Year: Crayola Colors of the World Crayons (Crayola LLC)

Doll of the Year: Barbie Color Reveal (Mattel)

Game of the Year: Pokémon Trading Card Game Battle Academy (The Pokémon Company International)

Infant/Toddler Toy of the Year: Fisher-Price Laugh & Learn Grow-the-Fun Garden to Kitchen (Mattel)

Innovative Toy of the Year: Star Wars: The Child Animatronic Edition Toy (Hasbro)

License of the Year: Star Wars: The Mandalorian (Disney)

Outdoor Toy of the Year: Ultimate Go-Kart (Radio Flyer)

Playset of the Year: LEGO Super Mario Bowser’s Castle Boss Battle Expansion Set (LEGO)

Plush Toy of the Year: Star Wars: The Mandalorian The Child 11” Plush (Mattel)

Preschool Toy of the Year: PAW Patrol Dino Patroller (Spin Master)

Specialty Toy of the Year: LEGO Ideas Grand Piano (LEGO)

STEAM Toy of the Year: Mega Cyborg Hand (Thames & Kosmos)

Vehicle of the Year: PLAYMOBIL Back To The Future DeLorean (PLAYMOBIL)

Steve Pasierb, president and CEO of The Toy Association, said: “From 117 outstanding finalists to this year’s TOTY winners, to Hasbro’s Toy of the Year Award and two unique People’s Choice winners, each underscores the joy of play in uncertain times, the togetherness of family game night, as well as the swiftly-evolving retail and e-commerce landscape.

“The TOTYs continue to reflect the toy and play community’s passion and perseverance, all while honoring the richly deserving Hall of Fame inductees. It also raises vital funding for The Toy Foundation as it embarks on impactful new programs supporting children’s hospitals and driving diversity, equity, inclusion, and access in the toy industry. We thank the independent expert judging panels and the tens of thousands of individuals who voted this year.”

During the event, four toy industry visionaries were also officially inducted into the esteemed Toy Industry Hall of Fame. This year saw Philip Bloom, founder and former publisher of The Bloom Report; William C. Killgallon, chairman of the board at The Ohio Art Company; Pleasant T. Rowland, founder of American Girl, a division of Mattel, Inc.; and the late Margarete Steiff, founder and creator of Steiff were all inducted.

Read more about the Hall of Fame inductees here.

More than 500 TOTY Award nominees poured in late last summer. Of those, 117 finalists were selected by a panel of expert judges. Category winners were then determined based on votes from toy retailers (mass and specialty), media, Toy Association members, and consumers.

The “Toy of the Year” winner was determined by an expert panel that discussed all the finalists before rendering a decision based on TOTY votes, holiday sales, and media buzz (traditional, online, and social).

The “People’s Choice” award winners were uniquely selected by online consumer votes. All results were audited for accuracy, including the judging and voting process, and The NPD Group validated marketplace acceptance. Descriptions of all TOTY finalists can be found at ToyAwards.org.

Audio storyteller Tonies welcomes Disney’s Aladdin, Peter Rabbit, and Miffy to its licensed library

The audio storytelling platform, Tonies continues to strengthen its licensed story portfolio with new additions from Disney’s Aladdin, Beatrix Potter’s Peter Rabbit, and Miffy.

Expanding its licensing partnerships with Disney, Penguin Random House, and Miffy brand owner, Mercis, Tonies has launched the three new additions to its growing collection of licensed story-telling figurines.

Each character can be placed on top of the Toniebox audio system for children to listen to their classic stories, as the firm offers children new ways to engage with their favourite characters through both screen-free play and storytelling.

Peter Rabbit introduces children to the world of Beatrix Potter with the inclusion of a collection of stories featuring The Tale of Benjamin Bunny, The Tale of Mr Tod, and The Tale of the Flopsy Bunnies.

Meanwhile, Miffy’s Adventures features ten tales of adventure as Miffy and her friends learn to cope with difficult situations and discover new things.

The line-up is completed with Disney’s teling of its animated classic, Aladdin.

The latest additions have been made available to retailers across the UK from this week.

Disney content and licensing hit hard by Covid-19 but consumer products offer glimmer of hope

Content sales and licensing revenues at the Walt Disney Company have suffered big losses at the hands of the pandemic with dramatic decreases of 56 per cent and an operating income decrease of 78 per cent driven primarily by the closure of theatres, parks and experiences over the course of last year.

Lockdown restrictions and social distancing measures played a major role in significantly reduced theatrical distribution from the studio with many theatres across the globe either closed or operating at reduced capacity in the ongoing fight against the coronavirus.

As a result, Disney content sales, licensing and other revenues dropped by over half to $1.7 billion, while segment operating income decreased 76 per cent to $188 million.

Meanwhile, lower TV and SVOD distribution results were driven by the shift from Disney’s licensing of content to third parties to distribution via its own direct-to-consumer services like Disney+.

The studio has attributed the decrease in home entertainment results to lower unit sales, partially offset by lower marketing costs. The prior-year quarter reflected the performance of Toy Story 4, The Lion King and Aladdin compared to no significant titles in the current quarter.

The negative impact of Covid-19 continued to be felt across Disney’s Parks, Experience, and Products segment which saw Q1 2021 revenues plunge 53 per cent to £3.6 billion, with segment operating results dropping $2.6 billion to a loss of $119 million.

As a result of the pandemic, Disneyland Resort was closed and the company’s cruise business was suspended in the current quarter. Disneyland Paris closed on October 30, 2020 and Hong Kong Disneyland Resort closed on December 2, 2020. Walt Disney World Resort and Shanghai Disney Resort were open in the current quarter, but were operating at significantly reduced capacities.

Disney’s consumer products business has however offered the firm a glimmer of light, with operating income growth driven by an increase in games licensing revenue, reflected in the release of Marvel’s Spider-Man: Miles Morales.

‘The most significant impact on operating income in the current quarter from COVID-19 was an estimated detriment of approximately $2.6 billion at the Disney Parks, Experiences and Products segment due to revenue lost as a result of the closures and reduced operating capacities,’ explained Disney in its Q1 2021 financial  statement.

‘The impacts of Covid-19 on our Disney Media and Entertainment Distribution segment were less significant. Lower revenues due to the deferral or cancellation of significant film releases as a result of theater closures were largely offset by the related reduction in film cost amortization, marketing and distribution costs.’

Bob Chapek, chief executive officer, The Walt Disney Company, said: “We believe the strategic actions we’re taking to transform our Company will fuel our growth and enhance shareholder value, as demonstrated by the incredible strides we’ve made in our DTC business, reaching more than 146 million total paid subscriptions across our streaming services at the end of the quarter.

“We’re confident that, with our robust pipeline of exceptional, high-quality content and the upcoming launch of our new Star-branded international general entertainment offering, we are well-positioned to achieve even greater success going forward.”

Mad Beauty confident of ‘flourishing beauty gifting market’ with extensive Mickey and Friends collection

Mad Beauty has expressed its confidence in the gift market with a follow up collection of its original Disney Mickey and Minnie line featuring a new slate of on-trend products, tapping directly into the need for friendship and kindness in the midst of the coronavirus crisis.

Developed by Mad Beauty’s creative director, Julia Cash, the new range of Mickey and Friends designs takes inspiration form the nostalgia of the original cartoons, with the addition of vibrant colours and bold outlines across a new 35-piece collection.

The expansive range has been developed in a show of confidence that the gifting market “will flourish” over the coming year.

The new line spans clay masks, bath jellies, bubble bath, lip balm tins, and bath fizzers, make up bags, and sheet masks.

Julia Cash, creative director and owner of Mad Beauty, said: “We are so proud and excited as a creative team to launch this beautiful Disney Mickey & Friends inspired bath & body collection. We have introduced new SS21 gifts such as tubs of Clay Mask and Bath Jellies. 

“Some might think we are brave (Mad even!) creating so many new collections with the last 12 months, but we are confident that the gift industry will flourish and as a brand we stay fresh and on trend whilst maintaining the Mad Beauty fully compliant quality to give retailers and shoppers something different, which they expect from us and means they come back time and time again.” 

Mad Beauty has seen huge growth in the last 12 months through international expansion and is now following its strategy of further growth through 2021 and beyond.

“Launching such a huge collection for Spring confirms our confidence in the new collections and the beauty gifting industry overall,” the firm said in a press statement.

BBC Studios taps Brainbase Assist to power its growing licensing programme for Bluey

BBC Studios has underscored its commitment to the Bluey licensing programme, turning to the end-to-end IP management firm Brainbase and its Assist platform to help it streamline and manage its global licensing operations for the popular pre-school property.

The move comes as BBC Studios continues to grow the successful Bluey brand in the consumer products and licensing sector. The collaborations will enable BBC to ‘make strategic franchise decisions’ all based on insights garnered from the Assist platform.

Brainbase is a venture backed company specialising in IP management.

“We are ecstatic to welcome BBC Studios to the Brainbase family,” said Brainbase co-founder and CEO, Nate Cavanaugh. “Our team is excited to see Bluey’s consumer products come to life on our platform, and to provide best-in-class technology to support its globally-recognised IP and rapidly growing consumer products business.”

Bluey has seen a surge in demand from audiences since it started airing on Disney Junior and Disney Channel in the US and becoming available to stream on Disney+.

“As we continue to grow the wildly successful Bluey brand, we noticed an increasing need to create an intuitive and collaborative centralized system,” said Suzy Raia, VP consumer products and business development, BBC Studios.

“We are beginning our relationship with Brainbase to improve partner management and help us make strategic franchise decisions based on insights.”

Brainbase’s flagship product, Brainbase Assist, helps licensing teams unify their global operations into a single software platform – from deals, product approvals, royalty reporting, digital asset management, and dashboard analytics.

Top licensed properties for BBC Studios include Bluey, the multi-award-winning animated preschool series that has taken Australia and the US by storm; Doctor Who, one of the longest running action-adventure television series in the world spanning 56 years and winning over 100 awards; and His Dark Materials, with the launch of a dedicated global online store following the successful debut of the second season on HBO.

BBC Studios joins a Brainbase customer roster with leading brands including Bonnier, BuzzFeed, kathy ireland Worldwide, Sanrio, the global lifestyle brand best known for pop icon Hello Kitty, SYBO Games and the Van Gogh Museum, among others.

Major expansion at The Point. 1888 sees five new members join the team

The Point. 1888 has detailed its latest major expansion with the appointment of five new employees across its commercial, product development, marketing, and legal divisions. The move comes, according to the firm, as it manages the increased attention and demand driven by ‘an incredible 2020.’

The past year not only saw The Point. 1888 roll-out a calendar of successful Virtual Immersion Events and record-breaking product launches – including a Barratt’s partnership with Iceland which sold 1.3 million units in its first 12 weeks – but it also witnessed its management team take home a pair of the industry’s most prestigious awards when MD Will Stewart won the BLLA’s Brand Ambassador of the Year, and head of retail Hannah Stevens won Licensing International’s Global Rising Star Award.

Now, as the team continues its plans for major expansion, it has welcomes a suite of new employees. Katie Wilkinson has joined as senior commercial manager for publishing, bringing with her 20 years’ experience in the publishing industry. Most recently, she worked in DJ Murphy’s children’s division and last year secured the licensed to launch Blippi magazine.

Meanwhile, Amy Wickham-Hurd has been appointed as creative commercial manager, reporting to senior commercial manager for home, Janine Richmond. She joins from eOne where she managed product development for Peppa Pig, PJ Masks, Ben and Holly’s Little Kingdom and Ricky Zoom, and prior to this she worked as a Buyer for Mothercare, Boots and Monsoon Accessorize.

Sadie Wright joins as product development executive from Santoro Licensing, reporting to product development manager Carrie Sharland, while Ellen Fazakerley has taken the newly created role of marketing executive, working under head of marketing Sarah Crimes and for the agency’s fast-growing Story.1888 division.

Finally, Kate Buitendach has joined the team as contracts manager, making the move from Disney.

Will Stewart, Managing Director of The Point.1888, said: “We’re so excited to be growing our business, creating five new roles to meet the demand from clients and have these incredible, talented legends each bring something new to our team. This is a huge step forward for our business and will allow us to fulfil the many exciting plans we have for 2021.”

Each new appointment will be crucial for the company’s continued growth. In her new role, Wilkinson will be focussed on securing the right partners to deliver new publishing opportunities that resonate with both consumers and retailers and help extend the brands the agency works with into new markets.

Wickham-Hurd’s role will be a hybrid of creative and commercial, allowing her to apply her knowledge and experience across the business while also getting involved in style guides and new collaborations.

As product development executive, Wright will be supporting the team in ensuring all items move smoothly through the development process and assisting The Point.1888’s partners in any way possible.

Fazakerley will be responsible for social media both for The Point.1888 and Story.1888’s clients. She will also be charged with upping the video content across the business and supporting head of marketing, Sarah Crimes.

Finally, Buitendach will be working alongside contracts manager Lynne Chappel, initially focussing on the busy and ever growing Moonbug account.

No stranger to The Point.1888 having worked with them as a licensee for many years, Katie Wilkinson commented: “I always found their integrity, passion, expertise, honesty and ethos refreshing and inspiring.

“When an opportunity to join them arose I was absolutely thrilled… a chance to work with a fantastic team on a diverse and hugely exciting portfolio of brands, exploring and developing products in the space I know and love.”

Amy Wickham-Hurd added: “I chose to join The Point due to the diverse and expanding portfolio of brands, such as the preschool phenomena under the Moonbug umbrella, iconic sports brands including Team GB and The British Lions, classic properties such as Moomins and carefully curated design brands like Miss Print and Jimbobart to name but a few.

“Not to mention a fantastic team that are pushing the boundaries within Licensing to bring innovative new products to market.”

Established in 2014, The Point.1888 delivers retail focused brand extension programmes by creating new products based on the gaps it sees at retail, rather than what it thinks the brand’s target demographic might like.

Game streaming platform Antstream adds retro Star Wars slate in new Disney partnership

The retro games platform, Antstream Arcade has struck up a partnership with Disney to add its portfolio of classic Star Wars titles to the extensive library of fully licensed games.

The games slate will be made available on a single platform for the first time and will include the entire Super Star Wars series for the SNES and Star Wars for the NES. Adventure games like Grim Fandango and titles from the Monkey Island series will also be joining the platform.

Starting from today, however, games and subscribers to the Antstream service will be able to play classic Super Star Wars titles: Super Star Wars, Super Star Wars: The Empire Strikes Back, and Super Star Wars: Return of the Jedi.

All the games available via Antstream Arcade’s cloud-based streaming service are available using any 4G connection or better, and are playable on almost any device for the cost of a single flat monthly subscription. Expanding Antstream Arcade’s library of classics and curios, this will take the total number of licensed games to 3786, with five to seven new games being added to the platform every week.

Steve Cottam, CEO of Antstream, said: “We are absolutely thrilled to be bringing the retro Star Wars series to customers, taking us one step closer to delivering thousands of iconic games to the global gaming community through the power of streaming technology.

“The fact will be able to play Star Wars for the SNES on their laptop, Grim Fandango on their TV or Day of the Tentacle is a massive win for both existing and new audiences.”

The Disney partnership follows recent deals struck with retro gaming giants Taito, Atari, and Bandai Namco – making Antstream Arcade’s library the largest collection of retro games in the world.

Thanks to Antstream Arcade’s streaming technology all these games can be played on TVs, laptops, desktops, tablets and of course mobile phones, bringing more iconic games to a wider audience than any platform ever before.

Star Wars and Disney reveal new brand identity for all official videogames, Lucasfilm Games

Lucasfilm, Star Wars, and Disney have revealed a new brand identity for the home of all officially licensed Star Wars video games, a legacy that now crosses the decades, with the unveiling of Lucasfilm Games. The new unit isn’t a publisher or development studio, but will be acting as a unifying brand name and licensor.

It has been widely speculated that the move arrives in preparation for 2023, when the current Star Wars video game contract with EA comes to the end of its ten years. It’s expected that Disney will then begin licensing out the Star Wars brand to various publishers and developers under the Lucasfilm Games title.

Marking the ‘new era’, Lucasfilm Games has now launched social channels across Twitter and Facebook that will act as a means of delivering news directly to fans.

“[Luscasfilm is] a name that encompasses the company’s rich catalog of video games and its eye toward the future,” read an announcement released via StarWars.com

“Lucasfilm’s legacy in gaming stretches back decades. And with Lucasfilm and the galaxy far, far away entering a new and unprecedented phase of creativity, so will the world of Lucasfilm Games — developed in collaboration with the finest studios across the industry.”