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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.

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