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LICENSING<br />
SHOW 2012<br />
Entertainment is producing a 52 x half-hour anime-inspired series, while TV distribution<br />
and licensing falls to FremantleMedia Enterprises. Topps is looking after developing the property’s<br />
other driver, a core trading card game.<br />
“There hasn’t been a strong new boys action-adventure property for several years,” contends<br />
Sander Schwartz, president of FME children’s and family group. “There is always a<br />
demand in the marketplace for a strong compelling action-adventure show.”<br />
With this heavy-hitting foursome behind it, the Monsuno series scored a global broadcast<br />
deal with Nickelodeon-owned channels for the fi rst run of eps, which will roll out over the next<br />
two years. While some critics might suggest that it’s a stretch to gamble on an anime-based<br />
property to spawn the next big global hit—the genre has been luke warm in US consumer<br />
products circles in recent years—Schwartz disagrees with pigeonholing the concept.<br />
“The show is a true hybrid,” he says. “It’s Western storytelling told in an anime style.”<br />
Notably, the episodes have a classic three-act structure that owes more to Western animation<br />
tradition than anime.<br />
While it’s still too early to gauge<br />
the success of the series—it just<br />
bowed in the US on NickToons in<br />
March—analysts approve of the<br />
partnership’s strategy and execution<br />
thus far.<br />
“I think they should be applauded<br />
for taking this bold step,” says<br />
Steve Reece, a toy and games brand<br />
marketing consultant based in the<br />
UK. “There are some really interesting<br />
features about it, particularly a<br />
good range of characters. From an<br />
execution standpoint I’d rate it as<br />
good to very good.”<br />
“The toys are pretty cool,” notes<br />
Johnson, who independently estimates<br />
that Jakks needs a hit that<br />
rakes in between US$200 million<br />
and US$300 million to maintain its<br />
independence. He suggests that the<br />
goal is not unattainable given the<br />
state of the market at the moment.<br />
While he says certain anime-based<br />
programs are either fi nished (Redakai)<br />
or winding down (Beyblade) in<br />
the US, he adds there might just be<br />
room for another one.<br />
“Each time you think it’s fi nished,<br />
a new anime property comes along and lights it up again,” Johnson says. “It would<br />
stand to reason that they have a wide-open tract to do something that those other properties<br />
have done.”<br />
Sean McGowan, senior analyst, leisure and lifestyle at New York’s Needham & Company,<br />
believes that all the components are in place to make the IP a winner for all partners involved,<br />
especially Jakks.<br />
“They have done everything they could to make this a good opportunity,” he says.<br />
“They have good partners, good play value, and the show looks as good as any other…<br />
You could say it has all the elements of a hit.” He adds that while the boys six to 12 demo<br />
is always a highly competitive space, at the present time there is an open window of opportunity<br />
in the market.<br />
“Bakugan is gone, so there is a market there,” he says. “Of course that doesn’t mean it<br />
will work, but it doesn’t mean it’s going to fail either.”<br />
48 May/June 2012<br />
Hasbro has enlisted a battalion of Hollywood talent to fl oat Battleship,<br />
which it is wagering will become its next Transformers-sized franchise<br />
The sleeper: Battleship<br />
While there is some evidence that retail and consumer willingness<br />
to support big licensing programs tied to tent-pole<br />
movies is on the wane, the data collected so far hasn’t confi<br />
rmed it as fact.<br />
There’s speculation that revenues from blockbusterdriven<br />
licensing will suff er signifi cantly because the movies<br />
themselves are not as toyetic as they were in summers past.<br />
Not everyone agrees, though. “I don’t think it’s a trend,” says<br />
Ascendiant’s Woo. “It’s just the cyclical nature of movies.”<br />
However, BMO’s Johnson believes that the performance<br />
of movie-related licensing programs over the past few<br />
years suggest , a bigger change is afoot. “The vast majority<br />
of movie-related toys have underperformed<br />
against expectations<br />
over the last two years,” he says.<br />
“Cars 2, Toy Story 3, Thor, Captain<br />
America, Kung Fu Panda 2—everything<br />
has underperformed except<br />
The Smurfs. But when expectations<br />
were raised for that during the DVD<br />
release, everyone got excited and<br />
shipped more product and it just<br />
didn’t move.”<br />
Johnson outlines the major<br />
stumbling blocks; a glut of theatrical<br />
releases in the summer months<br />
fi ghting for limited shelf space<br />
within a relatively short timeframe<br />
to make sales. All of these factors<br />
have contributed to the dwindling of<br />
movie-related licensing returns, he<br />
says, summing it up as a “crowded<br />
space without a lot of innovation.”<br />
Of course, a few underperforming<br />
programs won’t stop would-be<br />
kid-friendly blockbuster fi lms from<br />
fl ooding the multiplexes this summer,<br />
nor their related merchandise<br />
from fi lling the mass-market retail<br />
channels with expansive full-category<br />
assaults, along with their attendant<br />
high expectations.<br />
And it’s into this environment that Hasbro is setting sail<br />
with Battleship, an SFX-laden feature fi lm with an estimated<br />
US$200-million production budget and a consumer products<br />
program based on its classic board game IP. Along with<br />
the launch of TV net The Hub in 2010, it’s really the next<br />
phase of Hasbro’s strategy to turn itself into a full-fl edged<br />
entertainment company that can build successful franchises<br />
culled from its own warehouse of properties. The strategy<br />
certainly worked with Transformers, now a multi-billion<br />
dollar concern that essentially established Hasbro’s entertainment<br />
and production arm. However, many are wondering<br />
if it will work for this summer’s Battleship.