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Entertaining The Future

Licensing execs on last year’s lessons and the challenge of what’s next

By Karyn M. Peterson -- Gifts and Dec, 2/1/2009 12:00:00 AM

As 2008 came to a close, Playthings spoke with licensing executives active in the children’s entertainment industry about their plans for 2009. Most agreed that the impact of new toy safety regulations—which will likely require many toy manufacturers to cut internal costs, find efficiencies and reapportion their budgets—could mean big changes for the licensing arena. Licensing companies and their toy partners in 2009 will be keeping a much closer eye on the progress of their brands at retail, they told us. They will be maximizing their marketing efforts to achieve the greatest exposure to young consumers for the fewest number of dollars, especially online. And they will continue to focus on product value, with the lure of classic properties—and, in some cases, those must-have toys tied to blockbuster films—hopefully mitigating any loss of royalties from those toycos forced to scale back on licensed offerings.

What lessons have you learned in 2008 that your business will be carrying over into the new year?

“Our business begins and ends with the retailer … We have begun to leverage/expose key elements of our theatrical properties earlier in the timeline … and have begun bringing in both retailers and licensees to 'immersive’ filmmaker presentations on 'tentpole’ initiatives in an effort to make the process more inclusive and, ultimately, more effective.”

—Michael Peikoff, senior vice president of US licensing, Fox Licensing & Merchandising

“One of the loudest and clearest messages that we will take out of 2008 is the importance of remaining true to your brand and to your strengths, as well as continuing to look for new and proactive ways to build on your successes.”

—Christina Miller, vice president, Cartoon Network Enterprises

“We will be more aggressive in bringing our brands in front of children and families. Outside of traditional retail development, we have also strategically utilized live shows and character appearances to cross promote new and favorite properties.”

—Gary Krakower, senior vice president of US licensing & live events, HIT Entertainment

“You have to become a lot more nimble, be able to move a lot more quickly, and look at licensee projections with a more jaundiced eye … [consumers] are looking more closely at lower-priced products and those with huge discounts. That flies in the face of potential royalties.”

—Al Kahn, CEO, 4Kids Entertainment

“We try to wait at least 18 months after a show launches to have a sizeable merchandise program at retail …It’s not easy when you know a certain group of consumers are looking for product immediately; but the way to build a long-term franchise is to ensure that the character has a true emotional connection with a broad group of consumers. And when we launch … we roll out categories gradually to make sure there’s the right amount of product in the market.”

—Manuel Torres, senior vice president of toys, interactive & consumer electronics, Nickelodeon & Viacom Consumer Products

“The retail landscape is becoming even more competitive and requires licensors and licensees to work together to develop innovative product SKUs and compelling marketing programs. Further, we are finding that the traditional licensing model is being turned on its head in several ways. We are looking at different methods of creating brand awareness via broadband and social networking sites.”

—Mark Northwood, vice president, worldwide licensing, Nelvana Enterprises

“We cannot underestimate the passion of our fan base. In 2009, we will celebrate and court those fans … by reaching out to them with direct-to-consumer efforts and more locally-based retail programs.”

—Liz Kalodner, executive vice president & general manager, CBS Consumer Products

“A lesson that has been reinforced in 2008 is the power of the heterogeneous approach. People are different, backgrounds are unique, consumers are changing—all driving the demand for diversity in approach and experiences.”

—Janet Hsu, president, Sanrio Global Consumer Products

“Over the last few years we have expanded our licensing programs to include many more non-traditional licensees who have extended the reach of several of our brands in new and exciting ways … We will continue to pursue these additional avenues for licensing in the coming year.”

—Leslye Schaefer, senior vice president of consumer products & marketing, Scholastic Media

“I think our biggest takeaway from this year is realizing the appetite for a wider variety of consumer products from our brands. In 2009 we will focus on building a more diversified product offering.”

—David Rewalt, senior director, retail marketing, Viz Media

What will your business be doing differently in 2009?

“With consumers more budget-conscious than ever, we will take a hard look at what is really core to what we do day in and day out and we will approach each opportunity by being more strategic in every aspect of the business.”

—Christina Miller, Cartoon Network

“Reducing overhead, so that any reduction of revenues can be absorbed into the operation and increases in revenues can go directly to the bottom line. We also have to get more clever on promotions and advertising … figure out what other ways we can reach the consumer to get them to look at our products.”

—Al Kahn, 4Kids Entertainment

“Because of our unique portfolio, 2009 affords us an unusual opportunity to target multiple audiences for several properties.”

—Liz Kalodner, CBS Consumer Products

“We are re-calibrating our decision/selection process for partners ... to ensure our licensed partners are not only fully committed, but to actually reduce our number of licensees ... This serves to better focus our efforts with 'best of breed’ partners and affords us the opportunity to better manage our business—actually do more with less.”

—Michael Peikoff, Fox Licensing & Merchandising

“In the next year, we want to seize every opportunity to increase brand exposure ... We will look into new licensing categories like seasonal items, health and beauty aids and branded foods, as well as develop more packaged goods promotions. We will also explore exclusive retail opportunities.”

—Gary Krakower, HIT Entertainment

“We think it’s important to activate the consumer base and further develop a sense of connectivity with our brands, which we’re enthusiastically pursuing in a more aggressive fashion this coming year. We’re looking forward to launching a cause-related project in 2009 that we think will take Scholastic Media and its brands in a new direction and allow consumers to become involved with the brands.”

—Leslye Schaefer, Scholastic Media

“We’re going to have a stronger presence in a couple of key categories in 2009 including interactive, environmentally-friendly and basic play toys. With the current state of the economy, consumers are looking for familiar, economic friendly options when it comes to purchasing toys and products for kids.”

—Manuel Torres, Nickelodeon & Viacom Consumer Products

“In 2009 [we will] better integrate Viz Media’s product marketing plans (publishing, DVD, Magazines, etc.) with our licensees’ marketing programs ... to gain bigger market impact and more prominent retail merchandising.”

—David Rewalt, Viz Media

What challenges does your company face in the new year?

“In 2009, the marketplace will once again be a very crowded and competitive space and our priority is to look for ways to continue to thrive and grow our business within that context.”

—Christina Miller, Cartoon Network

“The preschool arena continues to be very competitive and we strive to create great products for consumers with our licensing partners.”

—Mark Northwood, Nelvana Enterprises

“The gaming category as a whole—video, online, trading cards, board games—is still a very substantial category and one which will continue to take more and more dollars off the table in terms of toys. As far as licenses go, event movies are still going to be important although it’s hard to know how many can be absorbed into the market structure. Basic licenses that have shown to be strong in the last six or seven years are still continuing to be strong ... Another category with strong potential [is] properties emerging from video and online games.”

—Al Kahn, 4Kids Entertainment

“We see an opportunity to develop more and more in the technology arena ... PC games, hand held games, mobile games, downloadable games.”

—Liz Kalodner, CBS Consumer Products

“The economy, consumer confidence, and retailer health are all variables that pose a challenge ... Our continuous mission is to sustain delivery of unique, quality, relevant experiences to all channels while maintaining the emotional connection of our brand.”

—Janet Hsu, Sanrio Global Consumer Products

“Consumers are putting a lot of thought into every dollar spent, and we need to be sensitive to that. Working closely with our licensees and retailers, we will be strategizing about how to maximize value of everything we offer.”

—Gary Krakower, HIT Entertainment

“We hope that some new product introductions of our favorite brands will experience some breakthroughs. We have spread our offerings across a wide range of price points with this in mind.”

—Manuel Torres, Nickelodeon & Viacom Consumer Products

“Certainly our biggest challenge for next year will be ... managing multiple business units in such a volatile economic environment. Outside of the economy, on of our biggest and most exciting challenges will be launching an entirely new digital broadcast strategy and a whole new brand.”

—David Rewalt, Viz Media

“The retail business has seen a drop in consumer spending and this requires that we monitor licensees’ product development, product inventories and product sales even more closely.”

—Leslye Schaefer, Scholastic Media

What do you expect to be the major products and licensed property trends in 2009?

“The internet is going to continue to expand its footprint [and] I think we will also see the proliferation of 'videogames turned motion pictures or television’ ... I also believe that the 'death of the traditional toy’ is greatly exaggerated—board games, action figures, dolls with long hair and a dozen different outfits, plush, tricycles and sports equipment will continue to survive, and—dare I say—thrive.”

—Michael Peikoff, Fox Licensing & Merchandising

“We have a noticed a trend towards 'the reinvention of the classic’ in licensed properties. As parents become more selective about the toys their children play with, they tend to lean towards tried and true brands. As a result, many licensors are giving beloved properties a make-over to appeal to a new generation of kids ... As far as toys are concerned, we are seeing a continued focus on electronics. New and established game systems are aging down to the preschool audience, creating lots of opportunities for new learning games, starring favorite characters.”

—Gary Krakower, HIT Entertainment

“Our interactive partners are planning a multi-platform launch in fall 2009 and we have a huge array of other products hitting shelves over the course of the year. As technology continues to 'age down’ we are finding that younger children have the ability and desire to play with more complex electronic toys, so companies like VTech and LeapFrog are well positioned for success. We are looking at an increase in the sale of kids’ digital devices and how this also affects the way that children consume content.”

—Mark Northwood, Nelvana Enterprises

“It will be back to basics in 2009. Consumers are focused on value, which not only relates to price but also to quality and functionality of it ... parents will be looking for tried and true play patterns to which they can relate and pass along to their children.”

—Christina Miller, Cartoon Network Enterprises

“The success of the Disney Channel properties seems to have opened the market for tween product, and we are well-positioned for that audience.”

—Liz Kalodner, CBS Consumer Products

“Over the last few years, we’ve definitely noticed a trend of kids interested in multiplatform, technology-forward brands for their entertainment and we believe this trend will continue to flourish at retail. Kids aged 6 to 12 especially like to be immersed in their favorite brands and are continually looking to expand their experiences with a property through as many multimedia platforms as possible.”

—Leslye Schaefer, Scholastic Media

“The biggest story in 2009 is sure to be the economy. With that comes an acceleration of an already competitive retail market with more and more space shrinking. Nickelodeon benefits from having trusted brands that we think will weather the storm nicely. Technology continues to be a top trend and an essential ingredient in toys. A number of new Nickelodeon products will use new technology to provide kids with new play experiences.”

—Manuel Torres, Nickelodeon & Viacom Consumer Products

“Inspirational products will be a major trend in 2009 as consumers gravitate towards purchasing products that provide comfort and emotional connection. Evergreen and nostalgic products will continue to sell well [and] the continued focus on the environment will encourage companies to take a greener approach.”

—Janet Hsu, Sanrio Global Consumer Products

“We are gearing up to do more direct-to-retail licensing programs and soliciting a higher level of consumer feedback to predict and react to trends and demands. We also benefit from the history of trends in Japan for our properties.”

—David Rewalt, Viz Media

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looking for Gary Krakower e-mail address....have great enviromental concept he has to see....please if you can help....thank ted barnes

ted barnes - 2009-09-08 09:01:00 EDT
To whom it may concern:

I am form Mexico city. I am trying to be in contact with Mr. Manuel Torres SVP. I am friend of him. I wonder if you could send me his Email and phone number so I can contact him.

Regards
Mr. Alvaro Rivera

ALVARO RIVERA - 2009-08-04 22:16:00 EDT

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